Improving the product elimination process

Abstract

A growing economy, more competition, shorter product life cycles and an increasing number of new products being developed make product eliminations become more important. However, product elimination does not receive the necessary attention, which can result in unnecessary costs, process inefficiencies and dissatisfaction of both customers and employees. This study aims at further examining the area of product elimination, focusing on the area of the elimination of products that get replaced by a new product version. Hereby, the study focuses on the actual removal of the product from the product portfolio rather than the decision-making process of which product to eliminate. The company Husqvarna Construction is used as a single case company which the research is conducted at. By investigating the current product elimination process of the company and creating an improved version of the process, the study adds on the body of knowledge regarding the product elimination process and aims at providing Husqvarna Construction with a more cost-efficient and transparent process The empirical study and analysis revealed improvement potentials of the current product elimination process at the company. Those were divided into several categories: communication, frozen order volumes, system updates, overstock, tools/equipment, spare parts management and measurements. To improve the current elimination process, a new process was created, taking into account the identified improvement potentials. The most important improvements include: more coordination between the New Product Development process and the elimination process, increase of cross-functional communication, standardized definition of responsibilities and increased attention to early overstock and spare parts reduction. The study concludes that an improved elimination process that has standardized activities and responsibilities can help Husqvarna Construction to reduce costs and increase the process transparency. Additionally, the study creates awareness for product elimination as a whole and highlights the importance of focusing more attention on the topic of product elimination.