R&D Seminar: Streamlining
Product Development -- February 2010
Claims Validations as Part of New Product Development & Introduction
(NPDI)
Nutritional claims regulation has many beneficial effects. It provides a higher
level of consumer protection against false, misleading claims and can harmonize
legislation across regions, such as EU regulation already does, to facilitate
trade. Claims such as “reduced salt,” “energy free” and “high fiber” already
exist as standards in EU regulation. In the U.S., there is great need for such
automatic, immediately recognized claims validation.
In his R&D Seminar-East presentation titled,
“Automating the Nutritional Claims Validation Across the NPDI Process,” Carlo
Colombo, CEO, Selerant Corp., expressed the need for “leverage on nutritional
claims to deliver consumer-relevant products.” He says the NPDI process can be
streamlined with claims automated validation. This means regulatory compliance
management, the main objectives of which have to do with ingredients,
requirements, compliance rules and labeling.
Selerant Corp. has recently redesigned its web-based, scalable solution known
as DevEX, a comprehensive modular platform that covers the NPDI and Product
Lifecycle Management (PLM) processes. By looking at how clients expedite
products to market, Selerant attempted to move the stage back one step
further--from concept to actual implementation and initial start-up. By
addressing the usability of a solution, everyday efficiency can be impacted,
and the overall time-frame for a product’s lifecycle can be reduced.
DevEX is built on Microsoft’s .NET Framework
3.5, enabling a web environment that allows the user to instantly see data that
would have previously required multiple steps. DevEX references a proprietary
database of regulatory compliance issues that can be easily maintained and
comes with a library of standardized claims for the U.S. (FDA Food Claims) and
European Union Commission (EU Food Law).
Selerant has also enhanced the extended service-oriented architecture
for even greater connectivity to legacy systems. This enables “a virtual
seamless integration, with data flowing both ways for a real-time, accurate
assessment of project and product status from Enterprise Resource Planning
(ERP), regulatory, formula and financial standpoints,” as stated on Selerant’s
website.
Utilizing DevEX, ingredients information is managed, including classifications,
compositions and restrictions. Product requirements, such as target markets,
market claims and nutrients, are identified. Compliance rules are managed,
including legal and/or brand guidelines, and label generation includes
multi-lingual, cultural and global rules.
The first stage, Product and Project
Definition, aims to identify markets, guidelines and other regulatory
requirements (i.e., vegan and organic). These requirements are used as
validation targets during development. Based on target markets, the applicable
regulatory guidelines will be used.
Stage two in the process is Product
Development, which helps develop formulation and recipes, while maintaining
online checks against the target requirements. A Visualization of Result
summary is provided, including ingredients that may cause “non compliances.”
Product developers can see precisely which of the guidelines are not met, says
Colombo.
The third stage, Optimization, runs formula optimization against preliminary
requirements. It then creates alternate recipes for different markets and finds
the least-cost formulas within the product’s compliance boundaries. Once the
recipe has been created, it can be optimized to a target (such as cost- or
fat-reduction), given the necessary constraints. There is also the possibility
of optimizing the formula by only changing some of the ingredients, within
ranges.
The Formula Optimizer allows developers to
identify alternate ingredients to which the constraints are applied. This
enables developers to take the objective one step further. For example, more than just lowering the
sugar content, they could select an alternate ingredient to substitute for the
sugar. This specific selection would assist the optimization in meeting the
target as directed.
In Scale-up, which is the fourth stage, labeling information is
automatically generated. Such things as ingredient list, nutritional panels,
allergens statement and dietary information are provided, along with an
automatic translation of labels and a label approval route. A labeling
functionality draws upon a user-definable table that allows corporations to
define culturally sensitive ingredients, as well as proprietary
alternatives. These will appear in the
ingredient listing. This can group a proprietary formula within a recipe into a
singular ingredient listing.
The last stage, Maintain Products, generates reports to identify non-compliant
recipes upon rules changes, or an ingredient’s limit in use. Also generated are
reports to identify trends, such as how many products became “healthy” within
the last 12 months. Mass recipe changes and label data recalculations occur at
this stage, as do “what if” simulations.
Another key functionality of DevEX is its Specifications functionality. This
details every aspect of the product, down to labeling and packaging, and
enables corporations to track each version of every document. Most importantly,
the Specifications tool enables the user to upload and check in/out partial documents.pf
--Summary by Barbara T. Nessinger, Associate Editor
“Automating the Nutritional Claims Validation Across the NPDI Process,”
Carlo Colombo, CEO, Selerant Corp., 718-260-8037, carlo.colombo@selerant.com, www.selerant.com
Do’s and Don’ts of
Effective NPD
For effective new product development (NPD), it is all about doing the right
thing (with the product) in the right way (the process). If the desired
end-results are speed-to-market, a high success probability and optimal
resource utilization, then Allan Samson, Ph.D., of ESCA Enterprises Inc., has
the formula for success.
In his R&D Seminar--East presentation
titled, “Do’s and Don’ts of Effective New Product Development,” Samson,
principal of ESCA Enterprises, outlined his objective as “to identify
development tactics that assist or hinder the effective development of new
products, successfully.” According to Samson, the best efforts of R&D teams
focus on truly novel products. They also cope with shorter development times;
allow partnership with external resources/suppliers; and contribute to the
growth and profitability of the organization.
Factors that create barriers to effective NPD can be both internal and
external. Internal barriers that may affect NPD include corporate, marketing,
operations, R&D and procurement obstacles. Corporate barriers can involve
conflicts in organization objectives; internal product priority conflicts; and
the absence of a multi-functional approach, according to Samson. Also, having
no development strategy; inconsistent management involvement; and a lack of
feedback and evaluation are hindrances to success.
Marketing internal barriers include incomplete product definition, which Samson
calls the “I’ll know it when I see it,” mindset towards development. He also
cites non-existent R&D input, too many samples and meaningless timelines as
other internal marketing issues.
Internal operations barriers consist of force-fitting the product to the
process; additive operations variances; too many tolerances and specifications;
non-adherence to process; and the “cost vs. value” conundrum. R&D negative
barriers, says Samson, include showing an “unrealistic” product; accepting an
unrealistic request; having someone’s influence based on their position, rather
than their knowledge; and activity vs. accomplishment.
Procurement mistakes consist of the
following: contract bidding, bait-and-switch tactics; ingredient substitution;
incomplete information; disregard for supplier resources; and cost savings vs.
product integrity.
Samson also named four external areas
that could be barriers to effective NPD: vendors/suppliers, regulatory,
retailers/customers and consumers. Vendor/supplier barriers include
bait-and-switch; price/cost increases; formula ownership; formula modification;
and confidentiality issues. In the regulatory arena, external problems can
consist of hurdles to innovation, attitudes to product/label reviews and an
honest manufacturer vs. a “tricky” one.
Retailer/customer external barriers
include, again, what Samson terms, “I’ll know it when I see it;”
bait-and-switch; cost and profit parameters; and volume vs. cost concerns. In
the same vein, consumer problems occur in the form of complaints, liability,
responsibility and what he calls “real vs. other.” This refers to the fact that
sometimes, retailers play one supplier against another, in order to get a
cheaper price for the same (or similar) product. “A good R&D person should
be able to identify and eliminate this,” says Samson, “as it would be a waste
of resources and ineffective product development.”
So, why do products fail? Samson states there are six main factors that
retard effective NPD: being all things to all people; consumer complaints;
procurement mandates; contract products; operations mandates; and customer
mandates. When everything is “in a panic,” or “top priority,” NPD will be
ineffective. He also names never-ending projects and duplication of efforts
(both internal and external), as well as slow decisions with fast changes, as
detrimental to a product’s eventual success.
Another issue is the “golden palate,” a syndrome
that refers to people in positions of power and influence asserting their
personal preferences into what a product should be. These opinions may be diametrically opposed to the product attributes
desired by consumers. pf
--Summary by: Barbara T. Nessinger,
Associate Editor
“Do’s and Don’ts of Effective New Product
Development,” Allan Samson, Ph.D., principal, ESCA Enterprises Inc.,
610-558-1902, esca@mindspring.com, www.escaenterprises.com