Operations Management

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New Product Development at HPM

Company Background

•    HPM Industries is a privately owned company established in 1925. Its core business is in the design, manufacture and distribution of electrical wiring accessories such as electrical power plugs, power outlets and light switches.

•    The company had its origins in button production, when Ruth Simon’s parents (Ruth is the wife of the current chief executive officer, Peter Simons) started HPM in the button-moulding business.

•    In 1948 they bought a tool at auction to make plug-tops and started turning out about 20 products.

•    The company’s backbone of success:  electrical wholesale

•    It has also been successful on developing and marketing main products for the retail market sector.

•    HPM has been the dominant player in the Australian domestic market for many years.

•    The company has also managed to break into a number of special niches.

•    It employs, at present, more than 1,100 employees working in various factory sites, warehouses and sales offices around the country, from which it supplies over 3,500 product lines.

Goals of HPM:

?    To effectively compete in the most challenging market that is continually evolving.

?    To improve its product development process in an increasingly fast-paced, globalized market.

Strategy:

?    Use innovation and technology to differentiate itself in the market

?    Concentrate on using the latest technology in both its ...
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