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New Zealand Trade and Enterprise seminar on new product development, introducing stage-gate project management.

New Zealand Trade and Enterprise seminar on new product development, introducing stage-gate project management.

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  • Great presentation. Can you forward me a copy? sharell3021@gmail.com
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  • Great presentation, Can I get a copy?

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  • Dear Iain,

    Great Job ! makes NPD crystal clear and really structures a well-defined roadmap. We are a company based in France but wanting to go global thanks to high-potential innovation pipeline. Do you have any consulting activities, seminars ?
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  • My congratulations on a well designed PP presentation.
    Can I also get a copy please?
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    samchaoui@att.net
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    New Product Development Process New Product Development Process Presentation Transcript

    • New Product Development Workshop Dr. Iain Sanders – Sustainable Innovative Solutions Ltd Some of the material contained in this presentation is copyright © to: Sustainable Innovative Solutions Ltd. Delivered in conjunction with Canterbury Development Corporation 1
    • How the Problems Feed Each Other – A Downward Spiral A LACK OF RESOURCES FOR NEW PRODUCTS A LACK OF FOCUS NO NEW PRODUCT PROCESS TOO MANY SMALL, LOW IMPACT PROJECTS POOR PROJECT PRIORITIZATION & FAILURE TO KILL PROJECTS TOO MANY PROJECTS FOR THE LIMITED RESOURCES AVAILABLE POOR DATA ON PROJECTS POOR JOB DONE ON PROJECTS weak market studies, poor launch, inadequate testing NO ROADMAP FOR PROJECTS LOW IMPACT ON SALES, PROFITS POOR CYCLE TIMES HIGH FAILURE RATES Ref: R.G. Cooper 2
    • Doing the Right PD Project the Right Way Sales targets not met Good business practice Going bankrupt fast Project costs overrun Doing the Wrong Projects Doing the Right Projects Doing projects badly Doing projects right 3
    • The Right PD Process: Key Activities in the NPD Process 4 The full market launch of the product: the implementation of the marketing plan. Market Launch Start-up of full-scale or commercial production or operations. Production / Operations Start-up The decision to commercialize: final business and financial analysis prior to launch. Precommercialization Business Analysis A trial sell or test market of the product: an attempt to sell the product to a limited number of customers or in a limited geographical area; a “soft launch”. Trial Sell Testing the product with the customer; field trials, beta tests, or preference tests: giving the product to customers and letting them try it under live field conditions. Customer Product Tests Testing the product in-house under controlled or laboratory conditions; alpha tests. In-house Product Tests The actual development of the physical product. Product Development The decision to go to a full development program; involves, for example, a financial analysis, risk assessment, and a qualitative business assessment, looking at market attractiveness, competitive advantage, etc. Predevelopment Business and Financial Analysis Marketing research: detailed market studies such as user needs-and-wants studies, concept tests, positioning studies and competitive analyses; involves considerable field work and in-depth interviews with customers. Detailed Market Study An initial technical appraisal, addressing questions such as “can the product be developed? How? Can it be manufactured? Etc.”; based largely on discussions, in-house sources, and some literature search. Preliminary Technical Assessment The initial market study: a “quick and dirty” assessment of the marketplace, customer requirements, possible market acceptance, and competitive situation; largely nonscientific and relying on in-house sources. Preliminary Market Assessment The idea screen – the first decision to go ahead with the project; the initial commitment of resources (people and money). Initial Screen
    • What is Phase-Gate Product Development & Portfolio Mgt.?
      • A complete solution for managing your product development initiatives
      Ref: DRM Asscs. 5 PD-Trak Coverage Phase-Gate Process (go/kill, guidance) New Product Development (NPD) Process Portfolio Management (Which projects) Pipeline Management (Resource assignment) Product Development Strategy (Business Plan) Development Phase Feasibility Phase Launch Phase Investigation Phase Manufacturing/ Deployment Phase Pilot/Test Phase D F P L M R Management Process Product Development Process DFM/A QFD Target costing FMEA
    • Tools Configured To Your Phase-Gate Process Project Brief/ Proposal Budget & Schedule Financial Justification QFD Product Planning Matrix Project Brief Project Plan Product Definition Test Plan & Results Test Plan Marketing Launch Plan Customer Support Plan Ideas List Metrics Tracking Voice of the Customer Plan Market Defn & Forecast Task Plans: Standard Project Tasks By Phase Lessons Learned Ref: DRM Asscs. 6
    • Managing Risk With A Phase-Gate Process
      • The fundamental objectives of an effective Phase-Gate Process are to reduce project risk as rapidly as possible:
      • With the minimum possible expense
      • With the lowest possible administrative effort
      Ref: DRM Asscs. 7
    • Phase-Gate Process
      • NPD Process defined at three levels:
      • Phases & gates
      • Tasks & deliverables
      • Document templates
      Ref: DRM Asscs. 8
    • “New Product” Process – Phase Descriptions
      • Investigation Phase
      • Develop the idea by gathering readily available data; preliminary identification of target market, application and product concept. Determine plan for feasibility phase focusing on voice of the customer and competitive data collection, concept identification, assessment and selection and data needed to develop a comprehensive business case.
      Development Phase Feasibility Phase Investigation Phase Manufacturing Phase Pilot/Launch Phase F D P M R I Ref: DRM Asscs. 9
    • Investigation Phase Development Stage Feasibility Stage Launch Stage Investigation Stage Manufacturing/ Deployment Stage Pilot/Test Stage Voice of the Customer Secondary Market Research Project Brief Budget & Schedule Market Analysis & Definition Target Price & Target Cost Calculation Market Definition & Forecast Financial Justification Voice of the Customer Plan Idea List Project Brief Project Plan (Feasibility Phase) Task Plan Ref: DRM Asscs. 10 D F P L M R
    • “New Product” Process – Phase Descriptions
      • Feasibility Phase
      • Complete customer needs and competitive assessment; develop product requirements and identify the target cost; assess several alternative concepts and select the one that best satisfies the project targets; demonstrate the feasibility of the selected technical approach, assess manufacturing process implications and finalize the business case.
      Development Phase Feasibility Phase Investigation Phase Manufacturing Phase Pilot/Launch Phase F D P M R I Ref: DRM Asscs. 11
    • Feasibility Phase Voice of the Customer Product/ Project Brief Customer Needs Data Dictionary QFD Product Planning Matrix QFD Subsystem Deployment Matrix Product Specification Concept Development Concept Selection Matrix Target Cost Evaluation Worksheet Market Definition & Forecast Voice of the Customer Plan Target Price & Target Cost Calculation Ref: DRM Asscs. 12 Development Stage Feasibility Stage Launch Stage Investigation Stage Manufacturing/ Deployment Stage Pilot/Test Stage D F P L M R
    • Feasibility Phase (Continued) Concept Development QFD Concept Selection Matrix Target Cost Evaluation Worksheet Selected Concept Project Brief Project Plan Financial Justification Budget & Schedule Task Plan Mfg. Plan Marketing Plan Program Plan Risk Management Plan Market Definition & Forecast Target Price & Target Cost Calculation Ref: DRM Asscs. 13 Development Stage Feasibility Stage Launch Stage Investigation Stage Manufacturing/ Deployment Stage Pilot/Test Stage D F P L M R
    • “New Product” Process – Phase Descriptions
      • Development Phase
      • Complete the design of the product, demonstrate specification conformance by building and evaluating a number of prototype units, design the manufacturing processes, create and release a full manufacturing documentation package.
      Development Phase Feasibility Phase Investigation Phase Manufacturing Phase Pilot/Launch Phase F D P M R I Ref: DRM Asscs. 14
    • Development Phase Mfg. Plan QFD Assy/Part Deployment Matrix Product Design Assy/Part Concept Selection Matrix Product Specification DFM/A Assessment DFM Guidelines Failure Modes & Effects Analysis Process Planning Matrix Drawings Bill of Material Design Verification Plan & Results Supplier Plan Marketing Plan Ref: DRM Asscs. 15 Development Stage Feasibility Stage Launch Stage Investigation Stage Manufacturing/ Deployment Stage Pilot/Test Stage D F P L M R
    • “New Product” Process – Phase Descriptions
      • Pilot/Launch Phase
      • Prove out the manufacturing processes and documentation. Introduce the product to the market, train the sales and technical support teams, prepare for first shipments.
      Development Phase Feasibility Phase Investigation Phase Manufacturing Phase Pilot/Launch Phase F D P M R I Ref: DRM Asscs. 16
    • Pilot / Test (Launch) Phase Customer Support Plan Development Stage Feasibility Stage Launch Stage Investigation Stage Manufacturing/ Deployment Stage Pilot/Test Stage Process Planning Matrix Quality Control Matrix Control Plan Design & Process Verification Plan Design & Process Verification Results Product Build Build Report Refine Design Drawings Bill of Material Marketing Plan Supplier Plan Service & Repair Plan Ref: DRM Asscs. 17 D F P L M R
    • “New Product” Process – Phase Descriptions
      • Manufacturing Phase
      • Ramp up production. Demonstrate the ability to manufacture the product at the projected volume and cost.
      Development Phase Feasibility Phase Investigation Phase Manufacturing Phase Pilot/Launch Phase F D P M R I Ref: DRM Asscs. 18
    • “New Product” Process – Gate Descriptions I Gate – Product managers screen ideas/opportunities and select potential projects for initial investigation F Gate – Based on preliminary investigation, management reviews product proposal and commits to funding Feasibility Phase D Gate – Management reviews comprehensive product definition, product plan and business case and decides whether to commit funds to development (most critical gate) P Gate – Management reviews development and verifies that the product is ready for pilot and launch M Gate – Management reviews product is ready for production ramp up R Gate – Reviews conducted to determine results relative to project objectives and collect lessons learned Development Phase Feasibility Phase Investigation Phase Manufacturing Phase Pilot/Launch Phase F D P M R I Ref: DRM Asscs. 19
    • Gate Review Objectives
      • Ensure that:
      • A valid business case for the development project exists – project will provide adequate return with acceptable risks
      • Program is still aligned with company strategy
      • Continued investment in the product development or R&D project is warranted
        • Significant issues are being addressed
        • The project plan & request for resources is sound
      • The project has a high priority relative to other project portfolio opportunities
      Ref: DRM Asscs. 20
    •  
    • Decisions to Define Gate Review Process
      • Where and when in the process should gate reviews occur?
      • What information is needed for the gate review?
      • Who makes the gate review decisions?
      • What is the process for conducting gate reviews?
      • How do we make gate reviews more effective?
      Ref: DRM Asscs. 22
    • Gate Criteria
      • Gates must have clear criteria so that senior managers can make Go/Kill & prioritization decisions objectively
      • Criteria must be:
        • Easy to use
        • Realistic (make use of available information)
        • Discriminating (differentiate the good projects from the mediocre ones)
      • Ideally, criteria are scored and summarized into an overall rating
      • Project killed if it falls below minimum acceptable level
      • Scoring also supports project prioritization for portfolio management
      Ref: DRM Asscs. 23
    • SOFT versus HARD Gates Ref: DRM Asscs. 24
    •  
    • Portfolio Management Annual/ 5 Year Business Plan Strategic Allocation Corporate or BU Level Corporate or BU Portfolio Mgt. Review to Ensure Balance Review to Consider Roadmap Relationships (Technology & Platforms) R&D Budget R&D Headcount Scorecard Method Development Productivity Index Done outside of PD-Trak Ref: DRM Asscs. 26
    • What Happens When You Lack Effective Portfolio Management A reluctance to kill projects Many projects added to list A total lack of focus Too many projects - resources thinly spread. Projects in a queue. Quality of execution suffers. Increased time to market Higher failure rates Weak decision points Poor Go / Kill decisions
      • Too many low value projects:
      • Tweaks and modifications
      • Good projects are starved
      Too few stellar product winners Many ho hum launches No rigorous selection criteria Projects selected on emotion, politics Wrong projects are selected Many failures No Strategic criteria for project selection Projects lack strategic direction Projects not strategically aligned Scatter gun effort Does not support strategy No Portfolio Management Means… Immediate Result End Result: Poor New Product Performance Ref: R.G. Cooper 27
    • Portfolio Management – Resource Impact
      • Flexible modeling of resource requirements and potential actions - add resources, contract labor, suspend projects, cancel projects, adjust schedule
      Proposed Portfolio (Master Project Schedule) Resource Plan Resources Available? Ref: DRM Asscs. 28
    • Project Scoring
      • A structured method for determining relative strategic importance of projects
      Ref: DRM Asscs. 29
    • Proposed Portfolio Projects - 1
      • Product manager(s) screen ideas in Ideas List & selects projects to investigate
      Ref: DRM Asscs. 30
    • Proposed Portfolio Projects - 2
      • Project file created, investigation phase conducted & key documents created (Project Brief, Budget & Schedule, and Financial Justification)
      Ref: DRM Asscs. 31
    • Proposed Portfolio Projects - 3
      • Proposed project added to the Master Project Schedule
      Ref: DRM Asscs. 32
    • Master Project Schedule
      • Master project schedule lists all active and proposed (sponsored) projects and key portfolio and financial information for portfolio prioritization and decision-making
      Ref: DRM Asscs. 33
    • Portfolio Management – Balance / Mix
      • Portfolio bubble chart provides a way to graph projects on two axes to assess balance and mix of projects
      • A common bubble chart is risk-reward (high risk-reward vs. low risk-reward)
      Ref: DRM Asscs. 34
    • Portfolio Management – Balance / Mix
      • Pie chart provides a breakdown of active projects as a basis to check allocation by type of project
      • Uses process type as a basis for the breakdown – requires process template to be established for each type used
      Ref: DRM Asscs. 35
    • Portfolio Management – Strategic Alignment
      • Product maps can be checked against portfolio plan to assure that needed technology or platform projects are not overlooked (otherwise revise roadmap)
      Product maps are maintained in the Project File Ref: DRM Asscs. 36
    • Other Portfolio Management Reports Ref: DRM Asscs. 37
    • Resource Analysis Central Resource Pool Resources Added To Project Resource Analysis Ref: DRM Asscs. 38
    • Additional Resources and Information
      • Websites:
        • General NPD Information
        • http://www.npd-solutions.com
        • (especially the Product Development Forum)
        • Specific Product Information
        • http://www.pd-trak.com
      • Sustainable Innovative Solutions:
        • Dr. Iain Sanders
        • Sustainable Innovative Solutions
        • P.O. Box 20-452
        • Bishopdale
        • Christchurch 8543
        • New Zealand
        • Email : iain@designforinnovation.com
        • Mob : +64 (0)273 566 401
      39