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New Product Development Key Steps in China
POSTED ON August 24, 2021
If you are looking to source a customized OEM or ODM product from China, you must understand the process involved. It is important to follow a phased approach when planning your new product development so that you have a hassle-free sourcing experience. Here are the key steps involved in new product development key steps in China.
This is the first and probably the most important phase of new product development. Choosing the right partner for your project is a job half done. You will need to define your product specifications at this stage. The supplier would need to know what is to be produced and the specific requirements pertaining to the design.
You will also have to request quotations from different suppliers and then you can compare the quotes. At this stage, you won’t want to share the exact specs with too many suppliers as it can jeopardize your intellectual property rights. Once you have compared the quotes and chosen the suppliers you may want to work with, you can then share the complete Request For Quotation (RFQ) with them. You must include technical drawings, estimated quantities, specific details of parts and any other information that the supplier may need to provide you a full quote.
After you have shortlisted a few suppliers that meet your criteria, you can carry out due diligence to determine which one would best meet your requirements. It is in your best interest to also carry out a supplier and factory audit to establish the legitimacy of their claims.
At this stage, you discuss your complete project plan with your supplier and clearly outline the deliverables and expectations. Tooling and other engineering items will be commissioned and the prototype process will begin. The supplier will produce samples based on the specifications you have provided. You will have to review the samples and request any changes as required.
Once you have approved the samples, you will create an ODM/OEM agreement covering all details of the product supply. You can now place the order for the non-recurring engineering items such as tooling or films. After the Non-Recurring Engineering (NRE) items are completed, you will have to check the parts and see if they require any modifications. The supplier would then provide you with final samples and once you review and approve them, the product is ready to go into production. At this stage, it is advisable to have a meeting with your supplier and go through the New Product Introduction plan and make sure it covers all important elements, deliverables and expectations. You can then place an order for the first production quantity. This is when you will also have to pay an advance amount against your purchase order.
This is the right time to implement a process control plan and test plan. This will help streamline all processes and ensure proper procedures for testing. Another important step in this phase could be a trial run before the actual mass production begins.
This involves mass production of your products, quality checks to ensure the products are ready to be shipped and then shipping the products to the actual destination.
During this phase, it is extremely important to constantly follow up with your supplier to make sure things are on the right track. Quality testing is another important step that needs all your attention at this stage. Once the goods are ready you must have quality testing done either by your own representative or a third party to make sure the goods are ready to be shipped. Once the goods leave the premises there is little you can do about quality issues.
Continuous improvement process is an ongoing effort to improve all elements of an organization including tools, products, processes etc. Once the production run is complete, one must continually strive to improve the process and achieve higher efficiencies.
New product development key steps is a very complex process involving many processes and stakeholders. When you are getting new product development done in another country like China, it is of paramount importance that you have some local presence there to oversee the processes. If it is not possible to have a full team present in the country, you can consider having a virtual project management office set up with a local team running the operations for you.
If you are looking to have a virtual office setup in China with an experienced and professional project management team, please get in touch with us now. With years of experience in China sourcing and technical expertise in project management, we can run your new product development key steps project efficiently in china.
