The impact of the standardization of the NPD process on its efficiency
Abstract
The purpose of this study is to examine the impact of the standardization of the new product development (NPD) process on its efficiency. A dilemma exists with regard to determining to what extent NPD processes should be standardized, in order to not hinder the operators during the performance of NPD process and consequently, weaken it. The case analysis for this study was carried out at a company whose process development has been standardized for a decade and has undergone several degrees of standardization. Quantitative and qualitative research methods were applied in the study. A regression method was used for quantitative research in order to study the effects of selected dependent and independent variables; using qualitative analysis, we supported the findings of the quantitative analysis. The results of the analysis indicate that the standardization of the NPD process does have an impact on its efficiency. From the obtained results, it may also be concluded that a very high degree of standardization begins to reduce the efficiency of the NPD process.
Keyword : NPD, process, NPD process, standardization of NPD process, efficiency of the NPD process
How to Cite
Karničar Šenk, M., & Roblek, M. (2019). The impact of the standardization of the NPD process on its efficiency. Journal of Business Economics and Management, 20(1), 149-167. https://doi.org/10.3846/jbem.2019.8318
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Blind, K. (2006). Explanatory factors for participation in formal standardisation processes: Empirical evidence at firm level. Economics of Innovation and New Technology, 15(2), 157-170. https://doi.org/10.1080/10438590500143970
Blind, K., & Hipp, C. (2003). The role of quality standards in innovative service companies: An empirical analysis for Germany. Technological Forecasting and Social Change, 70(7), 653-669. https://doi.org/10.1016/s0040-1625(03)00029-5
Borchardt, A. K. (2015). Standardized communication – a way to shorten cycle time? 5th IBA Bachelor Thesis Conference. Enschede, The Netherlands.
Buganza, T., Chiaroni, D., Colombo, G., & Frattini, F. (2011). Organisational implications of open innovation: an analysis of inter-industry patterns. International Journal of Innovation Management, 15(2), 423-455. https://doi.org/10.1142/S1363919611003210
Ciarapica, F. E., Bevilacqua, M., & Mazzuto, G. (2016). Performance analysis of new product development projects. International Journal of Productivity and Performance Management, 65(2), 177-206. https://doi.org/10.1108/ijppm-06-2014-0087
Cooper, R. G., & Edgett, S. J. (2008). Maximizing productivity in product innovation. Research-Technology Management, 51(2), 47-58. https://doi.org/10.1080/08956308.2008.11657495
Cooper, R. G. (2001). Winning at new products: Accelerating the process from idea to launch (3rd ed.). New York: Basic Books.
Cooper, R. G. (1995). Developing new products on time, in time. Research-Technology Management, 38(5), 49-57. https://doi.org/10.1080/08956308.1995.11674295
Cooper, R. G., & Kleinschmidt, E. J. (2007). Winning businesses in product development: The critical success factors. Research-Technology Management, 50(3), 52-66. https://doi.org/10.1080/08956308.2007.11657441
David, P. A., & Rothwell, G. S. (1996). Standardization, diversity and learning: Strategies for the coevolution of technology and industrial capacity. International Journal of Industrial Organization, 14(2), 181-201. https://doi.org/10.1016/0167-7187(95)00475-0
Davila, A. (Tony), & Wouters, M. (2004). Designing cost‐competitive technology products through cost management. Accounting Horizons, 18(1), 13-26. https://doi.org/10.2308/acch.2004.18.1.13
Fredriksson, P., & Gadde, L.-E. (2005). Flexibility and rigidity in customization and build-to-order production. Industrial Marketing Management, 34(7), 695-705. https://doi.org/10.1016/j.indmarman.2005.05.010
Funk, J. L., & Luo, J. (2015). Open standards, vertical disintegration and entrepreneurial opportunities: How vertically-specialized firms entered the U.S. semiconductor industry. Technovation, 45-46, 52-62. https://doi.org/10.1016/j.technovation.2015.07.001
Gable, G. G. (1994). Integrating case study and survey research methods: an example in information systems. European Journal of Information Systems, 3(2), 112-126. https://doi.org/10.1057/ejis.1994.12
Gudem, M., Steinert, M., & Welo, T. (2014). From lean product development to lean innovation: searching for a more valid approach for promoting utilitarian and emotional value. International Journal of Innovation and Technology Management, 11(2), 1450008. https://doi.org/10.1142/s0219877014500084
Griffin, A. (1997). PDMA research on new product development practices: Updating trends and benchmarking best practices. Journal of Product Innovation Management, 14(6), 429-458. https://doi.org/10.1111/1540-5885.1460429
Hansson, K., & Smith, S. (2018). Standardization of the project management process for new product development (Master’s Thesis in the Master’s Programme International Project Management). Göteborg, Sweden.
Holmes, J. (2011). A quantitative study of factors contributing to productivity in new product development (Ph. Thesis). Northcentral University, Arizona.
Costa, J. M. H., Rozenfeld, H., Amaral, C. S. T., Marcacinit, R. M., & Rezende, S. O. (2013). Systematization of recurrent new product development management problems. Engineering Management Journal, 25(1), 19-34. https://doi.org/10.1080/10429247.2013.11431963
Jang, Y., & Lee, J. (1998). Factors influencing the success of management consulting projects. International Journal of Project Management, 16(2), 67-72. https://doi.org/10.1016/s0263-7863(97)00005-7
Johnson, B., & Christensen, L. B. (2012). Educational research: Quantitative, qualitative, and mixed approaches. Thousand Oaks, CA: SAGE.
Johnsen, T. E. (2009). Supplier involvement in new product development and innovation: Taking stock and looking to the future. Journal of Purchasing and Supply Management, 15(3), 187-197. https://doi.org/10.1016/j.pursup.2009.03.008
Kerzner, H. (2000). Applied project management: Best practices on implementation. New York: J. Wiley.
Krubasik, E. G. (1988). Customize your product development. Harvard Business Review, (November-December), 46-51. Retrieved from https://hbr.org/1988/11/customize-your-product-development
Lawson, M. B. (2002). In the praise of slack: time is of the essence. IEEE Engineering Management Review, 30(1), 4-4. https://doi.org/10.1109/emr.2002.1022400
Lee, A. H. I., Chen, H. H., & Tong, Y. (2008). Developing new products in a network with efficiency and innovation. International Journal of Production Research, 46(17), 4687-4707. https://doi.org/10.1080/00207540701233484
Lee, H. L., & Tang, C. S. (1997). Modelling the costs and benefits of delayed product differentiation. Management Science, 43(1), 40-53. https://doi.org/10.1287/mnsc.43.1.40
Lettice, F., Roth, N., & Forstenlechner, I. (2006). Measuring knowledge in the new product development process. International Journal of Productivity and Performance Management, 55(3/4), 217-241. https://doi.org/10.1108/17410400610653200
Liker, J. K., & Morgan, J. (2011). Lean product development as a system: a case study of body and stamping development at Ford. Engineering Management Journal, 23(1), 16-28. https://doi.org/10.1080/10429247.2011.11431884
Manrodt, K. B., & Vitasek, K. (2004). Global process standardization: A case study. Journal of Business Logistics, 25(1), 1-23. https://doi.org/10.1002/j.2158-1592.2004.tb00168.x
Marion, T. J., Friar, J. H., & Simpson, T. W. (2012). New product development practices and early-stage firms: two in-depth case studies. Journal of Product Innovation Management, 29(4), 639-654. https://doi.org/10.1111/j.1540-5885.2012.00930.x
Millson, M. R., Wilemon, D., & Kim, J. (2011). Exploring the NPD strategy development proficiency – new product market success relationship: a study of mediation and moderation. International Journal of Technology Intelligence and Planning, 7(1), 54. https://doi.org/10.1504/ijtip.2011.041253
Münstermann, B., & Weitzel, T. (2008). What is process standardization?. CONF-IRM 2008 Proceedings, 64. Retrieved from http://aisel.aisnet.org/confirm2008/64
Naveh *, E. (2005). The effect of integrated product development on efficiency and innovation. International Journal of Production Research, 43(13), 2789-2808. https://doi.org/10.1080/00207540500031873
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design. International Journal of Operations & Production Management, 15(4), 80-116. https://doi.org/10.1108/01443579510083622
Nepal, B. P., Yadav, O. P., & Solanki, R. (2011). Improving the NPD Process by applying lean principles: A case study. Engineering Management Journal, 23(3), 65-81. https://doi.org/10.1080/10429247.2011.11431910
Pahl, G., & Beitz, W. (1988). Engineering design a systematic approach. Berlin: Springer.
Perera, H. S., Nagarur, N., & Tabucanon, M. T. (1999). Component part standardization: A way to reduce the life-cycle costs of products. International Journal of Production Economics, 60-61, 109-116. https://doi.org/10.1016/s0925-5273(98)00179-0
Ramakumar, A., & Cooper, B. (2004). Process standardization proves profitable. Quality, 43(2), 42-45.
Roblek, M., & Kern, T. (2017). Pristop k prenovi in informacijski podpori razvojnega procesa v srednje velikem podjetju. Uporabna informatika (Ljubljana), 24(1), 3-16. URN:NBN:SI:doc-1BR1ZJ5J. Retrieved from http://www.dlib.si
Rozenfeld, H., Daniel, C., Amaral, C. S. T., & Costa, J. M. H. (2008). NPD improvement through process, maturity, BPM and body-of-knowledge integration. Proceedings of the 4th International Conference on Production Research – ICPR Americas. Polytechnic School of the University of Sao Paulo.
Rupani, S. (2011). Standardisations of product development processes in multi project organisations (PhD thesis). Massachusuetts Institut of Technology, Massachusuetts.
Saltzman, J., Chatterjee, S., & Raman, M. (2008). A framework for ICT standards creation: The case of ITU-T standard H.350. Information Systems, 33(3), 285-299. https://doi.org/10.1016/j.is.2007.10.001
Shenhar, A. J. (2001). One size does not fit all projects: exploring classical contingency domains. Management Science, 47(3), 394-414. https://doi.org/10.1287/mnsc.47.3.394.9772
Sobek, D. K., Liker, J. K., & Ward, A. C. (1998). Another look at how Toyota integrates product development. Harvard Business Review, (July-August), 36-49. Retrieved from https://hbr.org/1998/07/another-look-at-how-toyota-integrates-product-development
Song, W., Ming, X., & Wang, P. (2012). Collaborative product innovation network: Status review, framework, and technology solutions. Concurrent Engineering, 21(1), 55-64. https://doi.org/10.1177/1063293x12468457
Spear, S., & Bowen, H. K. (1999). Decoding the DNA of the Toyota Production System. Harvard Business Review 77, 5 (September–October 1999), 96-106. Retrieved from https://hbr.org/1999/09/decoding-the-dna-of-the-toyota-production-system
Marasquini Stipp, D., Lopes Pimenta, M., & Jugend, D. (2018). Innovation and cross-functional teams: Analysis of innovative initiatives in a Brazilian public organization. Team Performance Management: An International Journal, 24(1/2), 84-105. https://doi.org/10.1108/TPM-12-2016-0056
Swaminathan, J. M. (2001). Enabling customization using standardized operations. California Management Review, 43(3), 125-135. https://doi.org/10.2307/41166092
Tatikonda, M. V., & Rosenthal, S. R. (2000). Successful execution of product development projects: Balancing firmness and flexibility in the innovation process. Journal of Operations Management, 18(4), 401-425. https://doi.org/10.1016/s0272-6963(00)00028-0
Thompson, V. A. (1965). Bureaucracy and innovation. Administrative Science Quarterly, 10(1), 1. https://doi.org/10.2307/2391646
Toney, F. & Powers, R. (1997). Best practices of project management groups in large functional organizations. Upper Darby, Pa., USA: Project Management Institute.
Tyagi, S., Choudhary, A., Cai, X., & Yang, K. (2015). Value stream mapping to reduce the lead-time of a product development process. International Journal of Production Economics, 160, 202-212. https://doi.org/10.1016/j.ijpe.2014.11.002
Wang, Z., Zhang, M., Sun, H., & Zhu, G. (2016). Effects of standardization and innovation on mass customization: An empirical investigation. Technovation, 48-49, 79-86. https://doi.org/10.1016/j.technovation.2016.01.003
Wright, C., Sturdy, A., & Wylie, N. (2012). Management innovation through standardization: Consultants as standardizers of organizational practice. Research Policy, 41(3), 652-662. https://doi.org/10.1016/j.respol.2011.12.004
Zhu, X., & Lin, Y. (2017). Does lean manufacturing improve firm value? Journal of Manufacturing Technology Management, 28(4). https://doi.org/10.1108/jmtm-05-2016-0071
Al-Ashaab, A., Golob, M., Urrutia, U. A., Gourdin, M., Petritsch, C., Summers, M., & El-Nounu, A. (2015). Development and application of lean product development performance measurement tool. International Journal of Computer Integrated Manufacturing, 29(3), 342-354. https://doi.org/10.1080/0951192x.2015.1066858
Baud-Lavigne, B., Agard, B., & Penz, B. (2012). Mutual impacts of product standardization and supply chain design. International Journal of Production Economics, 135(1), 50-60. https://doi.org/10.1016/j.ijpe.2010.09.024
Blind, K. (2002). Driving forces for standardization at standardization development organizations. Applied Economics, 34(16), 1985-1998. https://doi.org/10.1080/00036840110111158
Blind, K. (2006). Explanatory factors for participation in formal standardisation processes: Empirical evidence at firm level. Economics of Innovation and New Technology, 15(2), 157-170. https://doi.org/10.1080/10438590500143970
Blind, K., & Hipp, C. (2003). The role of quality standards in innovative service companies: An empirical analysis for Germany. Technological Forecasting and Social Change, 70(7), 653-669. https://doi.org/10.1016/s0040-1625(03)00029-5
Borchardt, A. K. (2015). Standardized communication – a way to shorten cycle time? 5th IBA Bachelor Thesis Conference. Enschede, The Netherlands.
Buganza, T., Chiaroni, D., Colombo, G., & Frattini, F. (2011). Organisational implications of open innovation: an analysis of inter-industry patterns. International Journal of Innovation Management, 15(2), 423-455. https://doi.org/10.1142/S1363919611003210
Ciarapica, F. E., Bevilacqua, M., & Mazzuto, G. (2016). Performance analysis of new product development projects. International Journal of Productivity and Performance Management, 65(2), 177-206. https://doi.org/10.1108/ijppm-06-2014-0087
Cooper, R. G., & Edgett, S. J. (2008). Maximizing productivity in product innovation. Research-Technology Management, 51(2), 47-58. https://doi.org/10.1080/08956308.2008.11657495
Cooper, R. G. (2001). Winning at new products: Accelerating the process from idea to launch (3rd ed.). New York: Basic Books.
Cooper, R. G. (1995). Developing new products on time, in time. Research-Technology Management, 38(5), 49-57. https://doi.org/10.1080/08956308.1995.11674295
Cooper, R. G., & Kleinschmidt, E. J. (2007). Winning businesses in product development: The critical success factors. Research-Technology Management, 50(3), 52-66. https://doi.org/10.1080/08956308.2007.11657441
David, P. A., & Rothwell, G. S. (1996). Standardization, diversity and learning: Strategies for the coevolution of technology and industrial capacity. International Journal of Industrial Organization, 14(2), 181-201. https://doi.org/10.1016/0167-7187(95)00475-0
Davila, A. (Tony), & Wouters, M. (2004). Designing cost‐competitive technology products through cost management. Accounting Horizons, 18(1), 13-26. https://doi.org/10.2308/acch.2004.18.1.13
Fredriksson, P., & Gadde, L.-E. (2005). Flexibility and rigidity in customization and build-to-order production. Industrial Marketing Management, 34(7), 695-705. https://doi.org/10.1016/j.indmarman.2005.05.010
Funk, J. L., & Luo, J. (2015). Open standards, vertical disintegration and entrepreneurial opportunities: How vertically-specialized firms entered the U.S. semiconductor industry. Technovation, 45-46, 52-62. https://doi.org/10.1016/j.technovation.2015.07.001
Gable, G. G. (1994). Integrating case study and survey research methods: an example in information systems. European Journal of Information Systems, 3(2), 112-126. https://doi.org/10.1057/ejis.1994.12
Gudem, M., Steinert, M., & Welo, T. (2014). From lean product development to lean innovation: searching for a more valid approach for promoting utilitarian and emotional value. International Journal of Innovation and Technology Management, 11(2), 1450008. https://doi.org/10.1142/s0219877014500084
Griffin, A. (1997). PDMA research on new product development practices: Updating trends and benchmarking best practices. Journal of Product Innovation Management, 14(6), 429-458. https://doi.org/10.1111/1540-5885.1460429
Hansson, K., & Smith, S. (2018). Standardization of the project management process for new product development (Master’s Thesis in the Master’s Programme International Project Management). Göteborg, Sweden.
Holmes, J. (2011). A quantitative study of factors contributing to productivity in new product development (Ph. Thesis). Northcentral University, Arizona.
Costa, J. M. H., Rozenfeld, H., Amaral, C. S. T., Marcacinit, R. M., & Rezende, S. O. (2013). Systematization of recurrent new product development management problems. Engineering Management Journal, 25(1), 19-34. https://doi.org/10.1080/10429247.2013.11431963
Jang, Y., & Lee, J. (1998). Factors influencing the success of management consulting projects. International Journal of Project Management, 16(2), 67-72. https://doi.org/10.1016/s0263-7863(97)00005-7
Johnson, B., & Christensen, L. B. (2012). Educational research: Quantitative, qualitative, and mixed approaches. Thousand Oaks, CA: SAGE.
Johnsen, T. E. (2009). Supplier involvement in new product development and innovation: Taking stock and looking to the future. Journal of Purchasing and Supply Management, 15(3), 187-197. https://doi.org/10.1016/j.pursup.2009.03.008
Kerzner, H. (2000). Applied project management: Best practices on implementation. New York: J. Wiley.
Krubasik, E. G. (1988). Customize your product development. Harvard Business Review, (November-December), 46-51. Retrieved from https://hbr.org/1988/11/customize-your-product-development
Lawson, M. B. (2002). In the praise of slack: time is of the essence. IEEE Engineering Management Review, 30(1), 4-4. https://doi.org/10.1109/emr.2002.1022400
Lee, A. H. I., Chen, H. H., & Tong, Y. (2008). Developing new products in a network with efficiency and innovation. International Journal of Production Research, 46(17), 4687-4707. https://doi.org/10.1080/00207540701233484
Lee, H. L., & Tang, C. S. (1997). Modelling the costs and benefits of delayed product differentiation. Management Science, 43(1), 40-53. https://doi.org/10.1287/mnsc.43.1.40
Lettice, F., Roth, N., & Forstenlechner, I. (2006). Measuring knowledge in the new product development process. International Journal of Productivity and Performance Management, 55(3/4), 217-241. https://doi.org/10.1108/17410400610653200
Liker, J. K., & Morgan, J. (2011). Lean product development as a system: a case study of body and stamping development at Ford. Engineering Management Journal, 23(1), 16-28. https://doi.org/10.1080/10429247.2011.11431884
Manrodt, K. B., & Vitasek, K. (2004). Global process standardization: A case study. Journal of Business Logistics, 25(1), 1-23. https://doi.org/10.1002/j.2158-1592.2004.tb00168.x
Marion, T. J., Friar, J. H., & Simpson, T. W. (2012). New product development practices and early-stage firms: two in-depth case studies. Journal of Product Innovation Management, 29(4), 639-654. https://doi.org/10.1111/j.1540-5885.2012.00930.x
Millson, M. R., Wilemon, D., & Kim, J. (2011). Exploring the NPD strategy development proficiency – new product market success relationship: a study of mediation and moderation. International Journal of Technology Intelligence and Planning, 7(1), 54. https://doi.org/10.1504/ijtip.2011.041253
Münstermann, B., & Weitzel, T. (2008). What is process standardization?. CONF-IRM 2008 Proceedings, 64. Retrieved from http://aisel.aisnet.org/confirm2008/64
Naveh *, E. (2005). The effect of integrated product development on efficiency and innovation. International Journal of Production Research, 43(13), 2789-2808. https://doi.org/10.1080/00207540500031873
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design. International Journal of Operations & Production Management, 15(4), 80-116. https://doi.org/10.1108/01443579510083622
Nepal, B. P., Yadav, O. P., & Solanki, R. (2011). Improving the NPD Process by applying lean principles: A case study. Engineering Management Journal, 23(3), 65-81. https://doi.org/10.1080/10429247.2011.11431910
Pahl, G., & Beitz, W. (1988). Engineering design a systematic approach. Berlin: Springer.
Perera, H. S., Nagarur, N., & Tabucanon, M. T. (1999). Component part standardization: A way to reduce the life-cycle costs of products. International Journal of Production Economics, 60-61, 109-116. https://doi.org/10.1016/s0925-5273(98)00179-0
Ramakumar, A., & Cooper, B. (2004). Process standardization proves profitable. Quality, 43(2), 42-45.
Roblek, M., & Kern, T. (2017). Pristop k prenovi in informacijski podpori razvojnega procesa v srednje velikem podjetju. Uporabna informatika (Ljubljana), 24(1), 3-16. URN:NBN:SI:doc-1BR1ZJ5J. Retrieved from http://www.dlib.si
Rozenfeld, H., Daniel, C., Amaral, C. S. T., & Costa, J. M. H. (2008). NPD improvement through process, maturity, BPM and body-of-knowledge integration. Proceedings of the 4th International Conference on Production Research – ICPR Americas. Polytechnic School of the University of Sao Paulo.
Rupani, S. (2011). Standardisations of product development processes in multi project organisations (PhD thesis). Massachusuetts Institut of Technology, Massachusuetts.
Saltzman, J., Chatterjee, S., & Raman, M. (2008). A framework for ICT standards creation: The case of ITU-T standard H.350. Information Systems, 33(3), 285-299. https://doi.org/10.1016/j.is.2007.10.001
Shenhar, A. J. (2001). One size does not fit all projects: exploring classical contingency domains. Management Science, 47(3), 394-414. https://doi.org/10.1287/mnsc.47.3.394.9772
Sobek, D. K., Liker, J. K., & Ward, A. C. (1998). Another look at how Toyota integrates product development. Harvard Business Review, (July-August), 36-49. Retrieved from https://hbr.org/1998/07/another-look-at-how-toyota-integrates-product-development
Song, W., Ming, X., & Wang, P. (2012). Collaborative product innovation network: Status review, framework, and technology solutions. Concurrent Engineering, 21(1), 55-64. https://doi.org/10.1177/1063293x12468457
Spear, S., & Bowen, H. K. (1999). Decoding the DNA of the Toyota Production System. Harvard Business Review 77, 5 (September–October 1999), 96-106. Retrieved from https://hbr.org/1999/09/decoding-the-dna-of-the-toyota-production-system
Marasquini Stipp, D., Lopes Pimenta, M., & Jugend, D. (2018). Innovation and cross-functional teams: Analysis of innovative initiatives in a Brazilian public organization. Team Performance Management: An International Journal, 24(1/2), 84-105. https://doi.org/10.1108/TPM-12-2016-0056
Swaminathan, J. M. (2001). Enabling customization using standardized operations. California Management Review, 43(3), 125-135. https://doi.org/10.2307/41166092
Tatikonda, M. V., & Rosenthal, S. R. (2000). Successful execution of product development projects: Balancing firmness and flexibility in the innovation process. Journal of Operations Management, 18(4), 401-425. https://doi.org/10.1016/s0272-6963(00)00028-0
Thompson, V. A. (1965). Bureaucracy and innovation. Administrative Science Quarterly, 10(1), 1. https://doi.org/10.2307/2391646
Toney, F. & Powers, R. (1997). Best practices of project management groups in large functional organizations. Upper Darby, Pa., USA: Project Management Institute.
Tyagi, S., Choudhary, A., Cai, X., & Yang, K. (2015). Value stream mapping to reduce the lead-time of a product development process. International Journal of Production Economics, 160, 202-212. https://doi.org/10.1016/j.ijpe.2014.11.002
Wang, Z., Zhang, M., Sun, H., & Zhu, G. (2016). Effects of standardization and innovation on mass customization: An empirical investigation. Technovation, 48-49, 79-86. https://doi.org/10.1016/j.technovation.2016.01.003
Wright, C., Sturdy, A., & Wylie, N. (2012). Management innovation through standardization: Consultants as standardizers of organizational practice. Research Policy, 41(3), 652-662. https://doi.org/10.1016/j.respol.2011.12.004
Zhu, X., & Lin, Y. (2017). Does lean manufacturing improve firm value? Journal of Manufacturing Technology Management, 28(4). https://doi.org/10.1108/jmtm-05-2016-0071