Four common pitfalls that are often overlooked or mistaken are listed to improve the NPI process.

The Product Import (NPI) procurement process begins with a parts list or a bill of materials (BOM). Finding potential problems at this stage may be the difference between success and failure. Unfortunately, there are traps here, but a little preparation will ensure success.

Creating a BOM is the beginning of a race against the schedule given by shareholders and the overall budget. The smooth transition from design to manufacturing is a large and complex task that requires coordinated efforts from various departments.

Previously, we discussed the importance of proper procurement in the NPI process and its role in reducing time/cost related risks. Organizations that prioritize wise purchasing decisions from the start ensure that they lay a solid foundation for each of the next phases.

To illustrate how companies actually improve their NPI processes, here are four common pitfalls that companies often overlook or mistake.

Endless bargaining cycle

The first time-consuming obstacle facing the company is the bargaining cycle. Suppliers often place production quotes on top of their archives, which include larger volumes, broader documentation, and a plan forecast. On the other hand, the bargaining of prototypes is often not treated as an emergency.

In the prototype phase, prepare with the right suppliers and their inventory, which will save a few days, even weeks of phone calls, RFQs, and back and forth emails.

Unable to avoid redesign

At this point in the NPI, there may be some problems and the chances of success for the entire project will increase. If the purchase realizes that a component from the BOM is beyond the scope of the distribution, then the project needs to re-enter to determine that the component being compared matches the original format, size, and functionality.

If there are no alternative components that meet these annotations, the PCB may need to go through an expensive and time consuming redesign.

Allowing the engineering and purchasing departments to synchronize and make the first BOM through a robust check is a key early stage that should not be overlooked. Quickly identify potential issues with suppliers, inventory, quality and pricing by leveraging available purchasing data.

I think of "manufacturability design (DFM)" afterwards.

To solve potential manufacturing complexity and problems, the most time-saving period is design time. In the NPI process, the longer the problem is hidden, the more expensive it is to solve.

From the point of view of procurement, pricing from the earliest stage can better make the project go smoothly in the manufacturing process. There is absolutely no value when ordering prototypes that cost more than the overall budget. Reducing costs by replacing multiple parts while implementing product functionality is enormous and the chances of success are very limited.

The highest cost drivers were identified in the early BOM so that the team could correctly select components to avoid projects in unrealistic budget pricing. In the long run, complying with the DFM rules at the engineering stage will greatly reduce costs and save a lot of pain in the future.

Did not find the real danger signal earlier

In addition to the prototype phase, it is important to look for components that may cause problems on the production line or even after the product is released. For example, purchased components have recently shown large inventory fluctuations or high price fluctuations that must be taken into account in the component selection process as this challenge may disrupt the pipeline in the coming months.

Keep in mind that waiting for a solution in the NPI will double the cost and time. Building a successful NPI process is an exercise in early preparation, and it should be done from the source of the component, the choice of the supplier, and the collaboration of the department. The ability to identify and circumvent potential problems in procurement is the difference between profit and loss.