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  • Global standard for the Project Management profession

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  • 1. “Shortening the Strategic Lead Time from Idea to Market” Εκδήλωση του PMI-GREECE 1/6/2012, AIT Vassilis Tsakiris Ocean Star Electronics Ltd.Vassilis.Tsakiris@os-hk.com Vassilis.Tsakiris@Lean-PMI.com
  • 2. The Product Development SystemThe Next Competitive Frontier  There is direct correlation between model age and market share“Clearly the older the modelthe lower the market share– newness wins every time” according to Merrill Lynch Shortening the Strategic Lead Time from Idea to Market 2
  • 3. Combining the knowledge of: • PDMA • AIPMM • PMI • LEAN • 6 Sigma • TOC • Toyota PDSShortening the Strategic Lead Time from Idea to Market 3
  • 4. Product Development and Management Association the premier global organization for product development and managementPDMA Book of Knowledge:• 3 Phases: Discovery, Development, Commercialization• 6 Knowledge Areas• Technology and IP• Strategy and Planning Process,• Execution and Metrics• People, Teams and Culture• Customer and Market Research• Co-Development and Alliances 4
  • 5. PDMA Product Development and Management AssociationWhy PDMA Body of Knowledge?• to organize, distill and provide access to knowledge needed for product development• to include generally agreed to definitions and summaries of concepts, tools, methodologies and processes Shortening the Strategic Lead Time from Idea to Market 5
  • 6. Product Development & Management from Opportunities to Profits $$ The River of Development €€ ¥¥ The Ocean of $$ Opportunities The Market €€€ $ Idea / Concept ££ ¥ Screen Feasibility Launch Review Interim Reviews Review Key: = Idea & Concepts = Review processes & decisions = Ongoing Projects = Projects that have been launchedSource: ‘New Product Development’by Robin Carol ,CEO, PDMA & Beebe Nelson Co-Director, IAPD
  • 7. The world’s leading organization for the project management profession• Project Management BOK 42 Processes from 9 Knowledge areas and 5 Process Groups• The Standard for Program Management 47 Processes from 12 Knowledge areas and 5 Process Groups• The Standard for Portfolio Management 14 Processes from 2 Knowledge areas and 2 Process Groups• The Standard for Organizational Project Management Maturity Model (OPM3) 488 Best Practices for Continuous Improvement 7
  • 8. Shortening the Strategic Lead Time from Idea to Market 8
  • 9. Principles of Lean Creating more value with less resources• Identify all the steps in the value stream for each product family, eliminating those steps that do not create value• Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer• begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste Shortening the Strategic Lead Time from Idea to Market www.lean.org
  • 10. Value Stream Map - Current State Manuf Involve ment Source Final Re- Design Dev Init Define Tools Dwgs Design Proto Specs Reqs VOC Eng / Eng Sales / Proc Services Specs Manf / Specs Eng Specs Eng Reqs Dwgs Test Lab Eng P/T = P/T = P/T = P/T = P/T = P/T = L/T = L/T = L/T = L/T = L/T = L/T = C&A = C&A = C&A = C&A = C&A = C&A = Require ments ECNsSuppliers ECNs Customers Build Test Prod Dev Doc Verification Proto Proto Release Eng / Eng / Manf Test Lab Results Docs Docs Manf Manf P/T = P/T = P/T = P/T = P/T = L/T = L/T = L/T = L/T = L/T = C&A = C&A = C&A = C&A = C&A =
  • 11. Six Sigma Methodology • Define the Customer, their Critical to Quality (CTQ) issues, and the Core Business Process involved • Measure the performance of the Core Business Process involved • Analyze the data collected and process map to determine root causes of defects and opportunities for improvement • Improve the target process by designing creative solutions to fix and prevent problems • Control the improvements to keep the process on the new course www.isixsigma.comShortening the Strategic Lead Time from Idea to Market 11
  • 12. TOC Theory of Constraints • Problem Solving and Management/Decision-Making Tools called the Thinking Processes (TP).  "What to change?"  "To what to change?"  "How to cause the change?" by Dr. Eliyahu M. Goldratt www.toc-goldratt.comShortening the Strategic Lead Time from Idea to Market 12
  • 13. Product Development System Lean Product Development SystemShortening the Strategic Lead Time from Idea to Market Process 13
  • 14. The TOYOTA Product Development results (TPDS) World leading 15% Toyota’s market value Toyota’s market market share ($177 billion, 2005) value (2005) was exceeds the combinedof the global market values of General Motors, 13 times that of (2005) Chrysler, and Ford General Motors 12 months from styling Average vehicle age 39 first place freeze to start of vehicles since 2001 1.2 years compared production compared to the company’s to an average 310 first place out of years for competitor’s 24-3016 categories (2005) months competitorsSource: The TOYOTA Product Development System: Integrating People,Process and Technology, J. Morgan, J. Liker, 2006
  • 15. The 13 principles of TOYOTA TPDS - 1 Process 1. Establish Customer-Defined Value to Separate Value-Added Activity from Waste 2. Front-Load the product development process while there is maximum Design Space, to Explore Alternative Solutions Thoroughly 3. Create a Leveled product development process Flow 4. Utilize Rigorous Standardization to Reduce Variation and Create Flexibility and Predictable Outcomes
  • 16. The 13 principles of TOYOTA TPDS - 2 Skilled People5. Develop a Chief Engineer System to Integrate Development from Start to Finish6. Organize to Balance Functional Expertise and Cross-Functional Integration5. Develop towering technical competence in all Engineers6. Fully integrate suppliers into the Product Development System7. Build in Learning and Continuous Improvement8. Build a Culture to support excellence and relentless improvement
  • 17. The 13 principles of TOYOTA TPDS - 3 Tools & Technology 11.Adapt technology to fit your People and Processes 12.Align your Organization through Simple, Visual Communication 11.Use Powerful Tools for Standardization and Operational LearningSource: The TOYOTA Product Development System: Integrating People,Process and Technology, J. Morgan, J. Liker, 2006
  • 18. Shortening the Strategic Lead Time from Idea to Market 18
  • 19. New Product Development SystemShortening the Strategic Lead Time from Idea to Market 19
  • 20. Stage Gate vs. Continuous Flow Process Stage Gate Process ST.1 ST.2 MARKET ST.3.1 ST.3.2 ST.4ΒIdeas / Concept ST.4Α ST.5 Project Preliminary ProductionOpportu Generation Evaluation Design Detailed Design Readiness Launch nities Continuous Flow Development Process Shortening the Strategic Lead Time from Idea to Market 20
  • 21. DMAIC methodologyShortening the Strategic Lead Time from Idea to Market 21
  • 22. Development Navigation ToolkitShortening the Strategic Lead Time from Idea to Market 22
  • 23. Shortening the Strategic Lead Time from Idea to Market 23
  • 24. Map of Deliverables STAGES 1 & 2Shortening the Strategic Lead Time from Idea to Market 24
  • 25. Map of Deliverables STAGES 3.1 & 3.2Shortening the Strategic Lead Time from Idea to Market 25
  • 26. Map of Deliverables STAGES 4.A & 4.BShortening the Strategic Lead Time from Idea to Market 26
  • 27. PDMA – Product Launch Overview Launch Plan Phase Pre-Shipment Phase Post Shipment PhaseLaunch MgtMarketingEngineeringOperations Customer Support Sales Gate 5.1 Gate 5.2
  • 28. Voice of the Customer –Key points • Relative importance of each voice is measured by importance rating • Competitive evaluation of products or services permit company to observe how its products rate on a numerical scale • Customer complaints serve as an indication of dissatisfactionShortening the Strategic Lead Time from Idea to Market 28
  • 29. VOC tools – Visit Guide example (F.1.1.) Customer Visit Guide Understanding what type of speakers customers would like to have in their home for a full surround sound experienceOwner: CSPreparation Date 8/12/2009Visit Date Opportunity: THX Certified Surround Sound Speakers Visit IssuesTheme and intro questions Observations and probesDo you enjoy movies and music at home? Would you like surround sound? How much space do you have available in your home for theDo you have a dedicated home theater area? setup of the speakers?Do you have a big screen or a projector? Would you like to enjoy a full sound experience? Shortening the Strategic Lead Time from Idea to Market 29
  • 30. VOC tools – Visit Matrix example Stakeholders CustomerCustomer Product Product Service Marketing SalesSegmentation Engineer Manager Manager Manager Salesmen ManagerE-shop customers √ √ √ChainstoresBuyers √ (3 each) √ √ (3 each)Retail Customers √ √ √ √ (10 each) √Europe customers √ √USA customers √ (2 each) √ (2 each)ASIA customers √ √UK customers √ √Greece customers √ √ √ √ √ Shortening the Strategic Lead Time from Idea to Market 30
  • 31. QFD - Quality Function Deployment• Process in which ‘voice of the customer’ is heard and deployed• Orderly, four-phase process: • Planning • Designing • Constructing • Consistently constructing• Distinguishes between customer attributes and product technical characteristics Shortening the Strategic Lead Time from Idea to Market 31
  • 32. QFD - Quality Function Deployment Customer AttributesShortening the Strategic Lead Time from Idea to Market 32
  • 33. WHAT DOES QFD DO? Better Designs in Half the Time!CONCEPT Plan Design Redesign Manufacture “Traditional Timeline” Plan Design Redesign Manufacture Benefits QFD is a Productivity EnhancerShortening the Strategic Lead Time from Idea to Market 33
  • 34. QFD sampleShortening the Strategic Lead Time from Idea to Market 34
  • 35. Lean Development Principles • Distinguishing between knowledge re-use and knowledge creation • Performing development activities concurrently • Distinguishing between good and bad iterations • Maintaining a process focus throughout• Tooling & Materials triggered Study• Production Feasibility &considered throughout this Executionphase Prototyping Design Freeze
  • 36. Value Stream Map - Current State Manuf Involve ment Source Final Re- Design Dev Init Define Tools Dwgs Design Proto Specs Reqs VOC Eng / Eng Sales / Proc Services Specs Manf / Specs Eng Specs Eng Reqs Dwgs Test Lab Eng P/T = P/T = P/T = P/T = P/T = P/T = L/T = L/T = L/T = L/T = L/T = L/T = C&A = C&A = C&A = C&A = C&A = C&A = Require ments ECNsSuppliers ECNs Customers Build Test Prod Dev Doc Verification Proto Proto Release Eng / Eng / Manf Test Lab Results Docs Docs Manf Manf P/T = P/T = P/T = P/T = P/T = L/T = L/T = L/T = L/T = L/T = C&A = C&A = C&A = C&A = C&A =
  • 37. Creating the Future State Map• What does the customer really need?• How often will we check our performance to customer needs?• Which steps create value and which steps are waste?• How can we flow work with fewer interruptions?• How do we control work between interruption, and how work will be triggered and prioritized?• How will we level the workload and/or different activities?• What process improvements will be necessary?
  • 38. Development Waste Examples - 1 Waiting Approvals from superiors A lack of available capacity Input from customers System response time Completion of other design elements Source: Value Stream Mapping for Lean Development Drew A. Locher, 2006
  • 39. Development Waste Examples -2 Excess Inventory Filled-in boxes (electronic or paper) Batch processing transactions “Large” design releases Retaining documents beyond what is required Defects (or Correction) Design errors Service failures Engineering change orders due to errors Not clearly understanding customer needs Missing or incomplete information
  • 40. Development Waste Examples -3 Non value-Added Processing (or Over processing) Re-entering data Extra copies Unnecessary or excessive reports or paperwork Re-designing something that already has been designed (i.e. re-inventing the wheel) Most engineering support services
  • 41. Development Waste Examples -4 Overproduction Completing design elements that are not needed for some time features that the customer does not see as a value (could also be included in non-value added or over processing waste) Over-engineering Transportation E-mailing information Multiple hand-offs Report distribution Circulating paperwork for signatures
  • 42. Development Waste Examples - 5 Excess Motion• Going to/from printer, central filing and meetings• Travel Under- utilized People• Limited authority and responsibility for basic tasks• Management “command and control”• Not sufficiently sharing knowledge• Not involving suppliers early in the development process• Not involving manufacturing early in the development process
  • 43. Portfolio Management by Net Present Value Net profits Upfront costs NPV = Corrected for such as Tooling, Product Design etc. inflation and financial riskShortening the Strategic Lead Time from Idea to Market 43
  • 44. Program Management by ChecklistShortening the Strategic Lead Time from Idea to Market 44
  • 45. Project Management by ChecklistShortening the Strategic Lead Time from Idea to Market 45
  • 46. Are you looking the fastest way for your Ideas to Market?Fully integrate the BEST suppliers into your Product Development System Ocean Star Electronics Ltd.
  • 47. References • A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th Edition, 2008 • Program Management, Second Edition, 2008 • The Standard for Portfolio Management, Second Edition, 2008 • Organizational Project Management Maturity Model (OPM3), Second Edition, 2008 • Value Stream Mapping for Lean Development: A How-To Guide for Streamlining Time to Market, D. Locher, 2008 • The Integrated Enterprise Excellence System, F. W. Breyfogle III, 2008 • The PDMA Toolbook 3 for New Product Development, A. Griffin, S.M. Somermeyer, 2007 • New Product Development for Dummies, R. Carol, B. Nelson, 2007 • The Lean Product Development Guidebook, R. Mascitelli, 2007 • Lean six Sigma for Supply Chain management, J.W. Martin, 2007 • The TOYOTA Product Development System: Integrating People, Process and Technology, J. Morgan, J. Liker, 2006 • New Products Management, M. Crawford, A. di Benedetto, 2006
  • 48. References • Lean Project Management: Eight Principles for Success, L.P. Leach, 2005 • The PDMA Handbook of New Product Development, K.B. Kahn, 2005 • The Lean Six Sigma Pocket Toolbook, M. George, D. Rowlands, M. Price, J. Maxey, 2005 • The PDMA Toolbook 2 for New Product Development, P. Belliveau, A. Griffin, S.M. Somermeyer, 2004 • Learning to see, M.Rover, J.Shook, 2003 • Product Development for the Lean Enterprice, M.N. Kennedy, 2003 • Seeing the Whole, D.Jones, J.Womack, 2003 • Portfolio Management for New Products, R.J. Cooper, S.J. Edgett, E.J. Kleinschmidt, 2001 • The PDMA Toolbook for New Product Development, P. Belliveau, A. Griffin, S.M. Somermeyer, 2002 • Building a Project Driven Enterprise, Ronald Masciteli, 2002 • Winning at New Products, R.G. Cooper, 2001 • Revolutionizing Product Development, S. C. Wheelwright, K.B.Clark, 1992