Mo|d|ng Innovat|on

-- Nypro case study

By L Ying, 1609106
LU Xinlu, 1609361
MAO Haiyu, 1609270
ZHANG Meichao, 1609312
ZUO Chun, 1609288
CuLllne
8uslness
sLraLegy
ManagemenL
phllosophy
CrganlzaLlon
values
CapablllLles
compeLence
novalasL
ueclslon
2
Company Cvervlew
Who's Nypro
A leading global solutions provider in the field of manufactured precision plastic
products.
locations in 15 countries, employing over 17,000 people
:siness Scope
Consumer & electronics
Healthcare
!ackaging
Mission
%o serve our customers with integrated, innovative and environmentally sound
manufacturing solutions, built on Nypro's global plastics leadership, creating
value for our team members, communities and shareholders."
Vision
"%o build a superb global organization that is sustainable, responsible, and
continually improving.

|ne
trategy
|ne
trategy
CrganlzaLlon
values
ManagemenL
phllosophy
CapablllLles
compeLence
novalasL
ueclslon
Q1: What is Nypro's b:siness strategy?
W ocusing on large-scale molding jobs with demanding,
technologically progressive customer
W or each plant to offer identical capabilities
Develop superior technology
Competitive advantage

nnovaLlve developmenLs
nLernal
rlvalry
CusLomer
drlven
1eam organlzaLlon
Q2: How do Nypro's organizationaI processes and vaI:es s:pport
innovative deveIopments, knowIedge dispersion, and standardization
:pon important innovations?
CompeLlLlve values
knowledge dlsperslon
SLandardlzaLlon upon lmporL lnnovaLlons
8uslness
sLraLegy
rgan|zat|on
va|e
CapablllLles
compeLence
novalasL
ueclslon
ManagemenL
phllosophy
nternaI rivaIry:
Competition among different units is highly encouraged
Nypro's plants are separate and independent, but serve the
customers with global outlook
6
nLernal
rlvalry
CusLomer
drlven
1eam organlzaLlon
ompetitive vaI:es:
'igorous and continuous competition and market economy
internally
CompeLlLlve
values
:stomer driven:
Build plants near its customers in vital market
"Nypro is your local source for custom injection
molding.worldwide
Team organization:
stablish teams that focused on the product development and
process improvement
Duel team system
%eam members are people from various disciplines, client and
supplier companies, and always keep innovative
8uslness
sLraLegy
rgan|zat|on
va|e
CapablllLles
compeLence
novalasL
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ManagemenL
phllosophy

nnovative deveIopments
nternal competition facilitates creative ideas
ocus on innovation for customer needs
nowIedge dispersion
A board of directors keep information flow
Cross-functional team spurs knowledge exchange
ach plant keep an eye on others' success and
innovation
Standardization :pon important innovations
ntense K! comparison encourage immitation
among plants
Centralized control in sales, only vice president can
approve about the important customer issues
%eams organization and awarding like C% (sustain
continuous innovation)
8uslness
sLraLegy
rgan|zat|on
va|e
CapablllLles
compeLence
novalasL
ueclslon
ManagemenL
phllosophy

ConLlnuous
mprovemenL
1eam

ConLlnuous
mprovemenL
1eam
2 SLandardlze
Lhe pracLlce
Lhrough Lhe
company
2 SLandardlze
Lhe pracLlce
Lhrough Lhe
company

AccepL
cusLomer`s
order

AccepL
cusLomer`s
order

ueflnes Lhe
naLure of Lhe
problem

ueflnes Lhe
naLure of Lhe
problem

ueLermlnes
Lhe capablllLles
Lhe nypro
Leam wlll
develop

ueLermlnes
Lhe capablllLles
Lhe nypro
Leam wlll
develop
8
Q3.a: How does Lankton manage Nypro's innovation
process?
'' always felL lf you dldn'L grow you
would lose your good people''
Cordon LankLon
nypro's chalrman of Lhe board
8uslness
sLraLegy
CrganlzaLlon
values
Management
ph||oophy
CapablllLles
compeLence
novalasL
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Q3.b: What is his management phiIosophy?
Competitive Spirit
W nnovation is the result of competition
W Competitive and collaborative environment
W Competitive employee teams are looking for wins.
Customer acceptance
W Manage innovation on the basis of right acceptance choice of customers
W Accept customer`s order by defining problems and then determining capabilities to be
developed
W Highly integrated with customer`s business, achieve customer`s success

8uslness
sLraLegy
CrganlzaLlon
values
Management
ph||oophy
CapablllLles
compeLence
novalasL
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Q4: What capabiIities does Nypro need to b:iId in order to enjoy
a competitive advantage in its markets of the f:t:re?
Basis of competition is shifting.
W $everal competitors had improved their processes to levels competitive with Nypro,
threatening its leading position.
W Customers require shorter and shorter delivery times.
W Many companies began competing on bases of speed and variety.
W Nypro had been unable to supply the low-volume, high-mix molding segment, which
was growing rapidly.

8uslness
sLraLegy
CrganlzaLlon
values
ManagemenL
phllosophy
apab|||t|e
competence
novalasL
ueclslon
The capabilities needed to develop:

W Help tooling suppliers reduce lead

times
W Build mutual trust relationships with
customers to shorter quoting process
Q4: What capabiIities does Nypro need to b:iId in order to enjoy a
competitive advantage in its markets of the f:t:re?
Decrease delivery time
ncrease speed
xpand capacity
ncrease variety
xtend to the low-volume, high-
mix business market by adopting
Nova!last
8uslness
sLraLegy
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ManagemenL
phllosophy
apab|||t|e
competence
novalasL
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Q5: How sho:Id Lankton roII o:t the NovapIast technoIogy?
Project chorocteristics
A market Nypro historically unable to supply but a
best bet for growth with 3 very positive outcome
%he technology was advancing and the orders
were arriving
Different organizational structure/system
compared with mainstream project
$teep and protracted learning curve
,oin considerotions
A must-do trial
!ressure on R&D: time cost
Not to influence current business or even
leverage on current customers
Huge initial investment but cost could be
lowered quickly after first stage
2
8uslness
sLraLegy
CrganlzaLlon
values
ManagemenL
phllosophy
CapablllLles
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-ova|at
Dec||on
@hus choose the optiono/ thot best meets
8ulld Lhe undersLandlng of how Lo mold wlLh novaplasL machlnes
qulckly leverage LhaL capaclLy maxlmally ln Lhe markeL place dlssemlnaLe Lhe
machlnes and knowledge across Lhe counLry efflclenLly

5eems feoslble bot oot optlmol

ption . :iId a new pIant that wo:Id empIoy onIy NovapIast machines
ro on
W Engineering efficiency: knowledge
centralized in one place
W Focus: a distinct organization and system
need to be established which is different
from the mainstream one
W Easier oversight: as development is
centralized
W So riskier: hard to reverse
W Huge initial investment
8uslness
sLraLegy
CrganlzaLlon
values
ManagemenL
phllosophy
CapablllLles
compeLence
-ova|at
Dec||on

s Nyptos leotoloq cotve wos polte steep lt

wos esseotlol to moooqe loltlol lovestmeot ooJ
teocb oqqteqote volome polckly totbet tboo
sepototely!
ption . nstaII two or three machines in each of Nypro's pIants
ro on
W Close to customer: since the market is
dispersed and the original high volume
customers also low-volume orders
W Larger variety of solutions
investigated: since more engineers and
marketers engaged in a competitive
environment, better technology might
emerge
W Not economical: R&D cost might
duplicate in each site
W Supervision difficulty
8uslness
sLraLegy
CrganlzaLlon
values
ManagemenL
phllosophy
CapablllLles
compeLence
-ova|at
Dec||on

llqo wltb exlstloq sttoteqy ooJ ptocess bot too tlsk of losloq coottol
ption . Not to roII o:t across the co:ntry, foc:s on making it s:ccessf:I at a
singIe pIant
ro on
In accordance with Nypro's internal
market logics: once succeed, internal market
take it over since spotting winning innovations
was their strength
Additional profit to the focus plant
Initial Investment not so large: could be
reversed if unsuccessful or not commercially
valuable
R&D cost not so high
Expertise not collected across
company: possible solutions might not be the
optimal one
Low market responsiveness: since its far
from other territories where customer needs
dispersed, and capacities might not be enough
to cover those needs at first, otherwise its own
mainstream business might be influenced
8uslness
sLraLegy
CrganlzaLlon
values
ManagemenL
phllosophy
CapablllLles
compeLence
-ova|at
Dec||on
Summary
CpLlon ls our recommendaLlon buL we also suggesL Lo
send englneer represenLaLlves from dlfferenL planLs Lo
parLlclpaLe ln Lhe 8u so LhaL knowledge maxlmally shared
and Lransferred fasLer Lhus roll ouL Llme could be reduced

1hank you!
y LI |ng LIU k|n| MA na|y
2nA- Me|chao 2U hn
DDIM Idanoccon|