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Fhe, Inc. Reaction Paper

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OPERATIONS MANAGEMENT – REACTION PAPER
On the Case Study – FHE, Inc.
June 30, 2012 submitted by: Caesar T. Michelena 1. What steps should Donaldson take to improve the new-product development process at FHE?

* Even before a formal marketing request for a new product development is made, there should be a check-off from the VP for Corporate Development and Marketing. At this point, Phil Thomas will make an initial assessment if the proposed new product should even be considered for development, consistent with the corporate goals/strategies.

* If this is OK’d by Phil, the concept conference can be set. Marketing (with the product manager-to-be) and Product Development Engineering. It is important that the product manager responsible for the new product idea (and who will be responsible on managing the business impact of the new product) should be closely involved from the initial conception.

* The preparation of the TSAR (technical specification action report) should also involve the Product Manager, even on a regular update meeting basis, so marketing considerations could be included in its development.

* Approval of the TSAR should include both Marketing; Engineering AND MANUFACTURING. Thus, before it goes to actual development of a prototype, the concerns of all the major components involved in the end result of a new product are taken into account.

* After approval of the TSAR, the engineering development begins with a series of steps, all of which must have a COORDINATION MEETING with the product manager and the Manufacturing head BEFORE PROCEEDING TO THE NEXT STEP. This should avoid any problems at the point when the new product is to be manufactured, and sold.

2. What could be done to clarify the organizational relationships between product managers, technical product managers, and manufacturing

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