Building Competencies Through
     New Product Development :




                    Lecture by:
                         ...
Building Competencies Through
        New Product Development :
           Creating Project Plans to
        Focus Product...
Product Development Definition
   The term used to describe the complete
   process of bringing a new product or
   servic...
Project Plan Definition
     A project plan, according to the Project Management Body of
     Knowledge, is
         A for...
Need of Aggregate Project Plan
              The long-term development of any
                   long-
              manuf...
Bad quick-fixes
                   quick-
When a project ran into trouble,
engineers from other projects were
reassigned o...
Individual projects vs set of projects
 In most organizations, a management directs all its
 attention to individual proje...
Project types

Derivative projects
Breakthrough
projects
Platform projects
R&D projects
Alliances and
partnerships
Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review

13-Aug-09
13-Aug-                             ST...
The Chaos           30 project plan distribute randomly
             Source: Steven C. Wheelwright and Kim B. Clark - Harv...
Using an aggregate project plan, reduced the number projects to 11
              Source: Steven C. Wheelwright and Kim B. ...
Building Competencies Through
        New Product Development :
           Creating Project Plans to
        Focus Product...
Some Characteristics
One can succeed and fail.
Project management success is subordinate to product
success. Project manag...
Project Success
Project success is a topic that is frequently
discussed and yet rarely agreed upon. The
concept of project...
Two Components of Project Success

Project management success
This focuses upon the project process and, in
particular, th...
Product Success
Meeting the project owner’s strategic organizational
objectives (project goal)
Satisfaction of users’ need...
IMPROVING PRODUCT
        DEVELOPMENT

     How well are we             Requirements         Empowerment
                 ...
BEST PRACTICE SOURCES
                      Company
                       Visits
        Workshops                 Techno...
DEVELOPING AN IMPROVEMENT PLAN

   CURRENT                                             BEST PRACTICES
   SITUATION        ...
PRODUCT DEVELOPMENT
          STRATEGIES
An organization cannot do everything superbly. It
must focus on only one or two s...
EVALUATION FRAMEWORK
    Database to compare company performance against


               Company
              Performanc...
DEVELOPING THE ACTION PLAN
                  GAP - INTENDED VS. IMPLIED STRATEGY

                                        ...
Building Competencies Through
        New Product Development :
           Creating Project Plans to
        Focus Product...
Project planning
Probably the most time-consuming project
                    time-
management activity.
Continuous activi...
Project planning process
Establish the project constraints
Make initial assessments of the project parameters
Define proje...
The project plan
The project plan sets out:
  The resources available to the project;
  The work breakdown;
  A schedule f...
Project plan structure
Introduction.
Project organisation.
Risk analysis.
Hardware and software resource
requirements.
Wor...
Project Plan Estimation


                         Establish Estimates



                         Establish
             ...
Project Plan Specific Goals,
             Practices and Activities

                               Develop a Project Plan
...
Project Plan Commitment


                Obtain Commitment to the Plan




Review Plans That Affect    Reconcile Work and...
Define project
Decide which
                                           Work to                                            ...
Building Competencies Through
        New Product Development :
           Creating Project Plans to
        Focus Product...
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IMT Lecture:Creating Project Plans To Focus Product Development.Mm Biztel 13 Aug09

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IMT Lecture:Creating Project Plans To Focus Product Development.Mm Biztel 13 Aug09

  1. 1. Building Competencies Through New Product Development : Lecture by: by: Djadja.Sardjana@gmail.com 13-Aug-09 13-Aug- IMT MM-Biztel MM- 1
  2. 2. Building Competencies Through New Product Development : Creating Project Plans to Focus Product Development Best Practice 3m36 Definition, Scope and Perspective 13-Aug-09 13-Aug- IMT MM-Biztel MM- 2
  3. 3. Product Development Definition The term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the PD process: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. Source: http://en.wikipedia.org/wiki/New_product_development 13-Aug-09 13-Aug- IMT MM-Biztel MM- 3
  4. 4. Project Plan Definition A project plan, according to the Project Management Body of Knowledge, is A formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost, and schedule baselines. A project plan may be summarized or detailed. Source: http://en.wikipedia.org/wiki/Project_plan 13-Aug-09 13-Aug- IMT MM-Biztel MM- 4
  5. 5. Need of Aggregate Project Plan The long-term development of any long- manufacturing company depends ultimately on the success of its product development capabilities. Often problems arise from the way companies approach the development process because they lack aggregate project plan. plan. In mid-1989, senior management of PreQuip, a mid- PreQuip, large scientific instruments company, became alarmed about a rash of late product development projects. For some months, the development budget had been rising even as the number of completed projects declined. There were 30 projects under way - far more than anticipated and far more than the organization can support. There was lack of project focus.
  6. 6. Bad quick-fixes quick- When a project ran into trouble, engineers from other projects were reassigned or, more commonly, asked to add the crisis project to their already long list of active projects. The more projects they added, the more productivity dropped. The reshuffling caused delays in other projects, and the effects cascaded. As deadlines slipped and development costs rose, project managers faced pressure to cut corners and compromise quality just to keep their projects moving forward.
  7. 7. Individual projects vs set of projects In most organizations, a management directs all its attention to individual projects - it micromanages project development. But no single project defines a company’s future or its market growth over time; the set of projects does. Most companies, including PreQuip should start the reformation process by eliminating or postponing the lion’s share of their existing projects, eventually supplanting them with new set of projects that fits the business strategy and capacity constraints. The aggregate project plan provides a framework for addressing this difficult task.
  8. 8. Project types Derivative projects Breakthrough projects Platform projects R&D projects Alliances and partnerships
  9. 9. Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review 13-Aug-09 13-Aug- STMB MM-Biztel MM- 9
  10. 10. The Chaos 30 project plan distribute randomly Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review 13-Aug-09 13-Aug- STMB MM-Biztel MM- 10
  11. 11. Using an aggregate project plan, reduced the number projects to 11 Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review 13-Aug-09 13-Aug- STMB MM-Biztel MM- 11
  12. 12. Building Competencies Through New Product Development : Creating Project Plans to Focus Product Development BMW 1m05 Product Development KPI and Best Practice 13-Aug-09 13-Aug- IMT MM-Biztel MM- 12
  13. 13. Some Characteristics One can succeed and fail. Project management success is subordinate to product success. Project management success influences product success. Success has “hard” and “soft” dimensions. Success is perceived. Success criteria must be prioritized. Success is affected by time. Success is not always manageable. Success may be partial.
  14. 14. Project Success Project success is a topic that is frequently discussed and yet rarely agreed upon. The concept of project success has remained ambiguously defined. It is a concept which can mean so much to so many different people because of varying perceptions, and leads to disagreements about whether a project is successful or not.
  15. 15. Two Components of Project Success Project management success This focuses upon the project process and, in particular, the successful accomplishment of cost, time, and quality objectives. It also considers the manner in which the project management process was conducted. Product success This deals with the effects of the project’s final product.
  16. 16. Product Success Meeting the project owner’s strategic organizational objectives (project goal) Satisfaction of users’ needs (project purpose) Satisfaction of stakeholders’ needs where they relate to the product.
  17. 17. IMPROVING PRODUCT DEVELOPMENT How well are we Requirements Empowerment definition doing? What improvements Solids are needed? Where do we Product modeling planning Integrated start? Should we product benchmark? teams Design Early re-use involvement Product data MCAD management Design for manufacturability Resource Top-down management design Configuration management Early supplier involvement QFD Project CAE planning Analysis & simulation
  18. 18. BEST PRACTICE SOURCES Company Visits Workshops Technology & Meetings Vendors BMP Conferences Program BEST PRACTICES Literature Corporate Review Handbooks Panel of Telephone Experts Discussions Consulting Experience
  19. 19. DEVELOPING AN IMPROVEMENT PLAN CURRENT BEST PRACTICES SITUATION GAP IMPROVEMENT PLAN What’s possible Product Business Development Strategy Assessment (Strategic What the What’s Levers) weaknesses important are 1. Assess current 3. Develop a 2. Determine situation plan to close priorities based on strategy & Best gap Practices
  20. 20. PRODUCT DEVELOPMENT STRATEGIES An organization cannot do everything superbly. It must focus on only one or two strategic objectives and be competent in the other areas. Product Development Strategic Objectives: • Time to market /development schedule • Low development cost • Low product cost • High product innovation and performance • Quality, reliability and dependability (robustness) • Service, responsiveness & flexibility to respond to new product opportunities & markets
  21. 21. EVALUATION FRAMEWORK Database to compare company performance against Company Performance Industry Performance Best Database Practice 0 Performance Evaluation 10
  22. 22. DEVELOPING THE ACTION PLAN GAP - INTENDED VS. IMPLIED STRATEGY 6 5 4 3 2 1 1. Identify performance gaps relative to categories -3 -2 -1 0 1 2 GAP Plan 2. Identify strategy gaps and Task 1 associated practices Task 2 Task 3 3. Examine individual practices with Task 4 low performance & high importance in large gap Assessment Category Assessment Weight Company Weight Effectiveness BEST PRACTICES GAP categories & strategies Business & Product Strategy 0.5 1 3.2 Product & Pipeline Management 1 1 3.7 Technology Management 0.75 1 2.8 4. Look for logical relationships & Management Leadership 1 1 4.5 Early Involvement 1 1 5.1 Product Development Teams 1.5 1 5.3 Organizational Environment 1 1 6.4 Process Management 1 1 3.4 precedence among practices Process Improvement 0.75 1 3.3 Understanding the Customer 1 1 3.9 Requirements & Specifications Mgt. 1.5 1 3.4 Development Process Integration 1 1 5.0 Supplier/Subcontractor Integration 1 1 4.7 Product Launch 1 1 5.1 Configuration Management 1 1 6.8 Design Assurance 0.75 1 6.6 Project & Resource Management 1.25 1 3.5 Design for Manufacturability Product Cost Management Robust Design Integrated Test Design & Program 1 1 1 0.75 1 1 1 1 4.4 4.2 5.7 6.1 5. Develop the action plan & gain Design for Operation & Support 0.75 1 4.7 Product Data Design Automation Simulation and Analysis Computer-Aided Manufacturing 1.25 1.25 1 0.75 1 1 1 1 3.5 5.2 3.8 4.6 consensus to the plan Collaborative Tools & Technology 0.75 1 2.9 Knowledge Management 0.5 1 4.2 0 2 4 6 8 10 12 Weighted Total 4.5 Bigger gap indicates greater improvement opportunity
  23. 23. Building Competencies Through New Product Development : Creating Project Plans to Focus Product Development Project Plan 6m38 Work The Plan, Plan The Work 13-Aug-09 13-Aug- IMT MM-Biztel MM- 23
  24. 24. Project planning Probably the most time-consuming project time- management activity. Continuous activity from initial concept through to system delivery. Plans must be regularly revised as new information becomes available. Various different types of plan may be developed to support the main software project plan that is concerned with schedule and budget.
  25. 25. Project planning process Establish the project constraints Make initial assessments of the project parameters Define project milestones and deliverables while project has not been completed or cancelled loop Draw up project schedule Initiate activities according to schedule Wait ( for a while ) Review project progress Revise estimates of project parameters Update the project schedule Re-negotiate project constraints and deliverables if ( problems arise ) then Initiate technical review and possible revision end if end loop
  26. 26. The project plan The project plan sets out: The resources available to the project; The work breakdown; A schedule for the work.
  27. 27. Project plan structure Introduction. Project organisation. Risk analysis. Hardware and software resource requirements. Work breakdown. Project schedule. Monitoring and reporting mechanisms.
  28. 28. Project Plan Estimation Establish Estimates Establish Determine Estimate the Scope Estimates of Work Define Project Estimates of Effort of the Project Product and Task Lifecycle and Cost Attributes Source: Gestão da Qualidade – MIEIC – FEUP 28
  29. 29. Project Plan Specific Goals, Practices and Activities Develop a Project Plan Plan for Establish the Plan for Plan for Plan Identify Needed Establish the Budget and DataManage Project Stakeholder ProjectRisks Knowledge Project Plan Schedule ment Resources Involvement and Skills Source: Gestão da Qualidade – MIEIC – FEUP 29
  30. 30. Project Plan Commitment Obtain Commitment to the Plan Review Plans That Affect Reconcile Work and Obtain Plan Commitment the Project Resource Levels Source: Gestão da Qualidade – MIEIC – FEUP 30
  31. 31. Define project Decide which Work to types as either specific improve breakthrough, projects to 7 8 platform, pursue development derivative, R&D, or capabilities partnered projects 1 6 Estimate the number of Eight Steps Identify existing 2 projects and projects that existing resources can of aggregate classify by project type support 5 project plan 3 Determine the Estimate the desired mix of 4 average time projects Identify existing and resources resource capacity needed 13-Aug-09 13-Aug- IMT MM-Biztel MM- 31 Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review
  32. 32. Building Competencies Through New Product Development : Creating Project Plans to Focus Product Development Listen to Customer 2m11 Conclusion & Final Words 13-Aug-09 13-Aug- IMT MM-Biztel MM- 32

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