2. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Table of Contents
Section Page
Product Development Projects &
Related Product Management Responsibilities
Industrial Work Platform 1
SuperLift Advantage 2
SuperLift Contractor 3
SuperTower 4
Load Lifter 5
Genie Lift 6
AWP Super Series 7
IWP Super Series 8
DPL Super Series 9
GS-1530/1930 Electric Scissor Lifts 10
TMZ-34/19 Trailer-Mounted Booms 11
TMZ-50/30 Trailer-Mounted Booms 12
GS-2032, 2046, 2646, & 3246 Electric Scissor Lifts 13
GS-2668 & 3268 Rough Terrain Scissor Lifts 14
GS-4390 & 5390 Rough Terrain Scissor Lifts 15
Genie Runabout 16
Genie Trailer-Mounted Light Towers 17
GS-2632 Electric Scissor Lifts & GS3384 Rough Terrain Scissor Lifts 18
Bil-Jax Summit Series Trailer-Mounted Boom Family 19 - 20
Bil-Jax X-Boom Series 21 -22
MEC Self-Propelled Boom Family 23 - 24
Branding/Private Labeling/Strategic Partnerships Projects
ATD 25
Stanley Hydraulic Tools 26
BPI 27
Business Development/Assessment Processes
Product Rationalization 28
New Business/Product Assessment Process 29 - 31
QFD - Quality Functional Deployment / House of Quality 32 - 33
Summary 34
3. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
IWP (Industrial Work Platform)
Project Type:
New Product Development
Project Drivers:
• Continuous customer requests for an
outriggerless aerial work platform.
• Strategic advantage to integrate such a
product into the company's portfolio.
Goals/Targets:
• Develop and introduce the industry's first
industry s
outriggerless manually propelled aerial
work platform.
• Project outcome must meet planned
targets to ensure corporate profitability.
and customer satisfaction.
Results:
• Project completed on time and within
budget.
• Significant sales revenue impact.
• High level of customer satisfaction
achieved.
Duration: 1 year
Base Models: 2
Configurations (approximate): 50
No pictures available of original model Current model depicted
model. depicted. Budget (approximate): < $1 000 000
$1,000,000
Cross-functional team size: 12
Page 1 of 34
4. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
SLA (SuperLift Advantage)
Project Type:
• Redesign of existing multi-model product
family.
Project D i
P j t Drivers:
• The original product line had not been
improved for over 15 years.
• The company was losing sales revenue
and market share to competitors who had
developed superior products.
Goals/Targets:
• Improve product to meet or exceed
customer expectations.
• Integrate new and exciting features to re-
establish market dominance.
Results:
• High level of customer satisfaction.
• 50% sales increase.
• Re-established market dominance.
Base Models: 5
Configurations (approximate): 500
Project Duration: 1 year
Budget (approximate): > $1,000,000
Cross-functional team size: 12
Page 2 of 34
5. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
SLC (SuperLift Contractor)
Project Type:
• Redesign of existing multi-model product
family.
Project D i
P j t Drivers:
• Although there was a high level of
customer acceptance for the SLA product
line, there was a significant market
segment that requested a lighter-duty
product family that was similar to the
original SuperLift models.
Goals/Targets:
• Develop and introduce a lighter-duty
version of the SLA product line to meet
the market demand for a lower price point
product family.
• Establish key feature differentiation while
maintaining a significant level of
commonality with the SLA product line.
Results:
• High level of customer satisfaction.
• The introduction of the SLA & SLC
product lines resulted in a 100% sales
increase over the original SuperLift
product family.
• Re-established market dominance.
Base Models: 4
Configurations (approximate): 100
Project Duration: 1 year
Budget (approximate): < $1,000,000
Cross-functional team size: 10
Page 3 of 34
6. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
ST (Super Tower)
Project Type:
• Redesign of existing multi-model product
family.
Project D i
P j t Drivers:
• Transfer technological elements from the
SLA project to the ST product line to
optimize manufacturing commonality,
improve product features, and reduce
overall costs.
• Integrate improved features and reliability
specifically targeted for this product line
based on customer feedback and
historical warranty data.
Goals/Targets:
• See "Project Drivers" section above
Results:
• Project completed on time and within
budget.
• Significant sales revenue impact.
• High level of customer satisfaction
achieved.
Base Models: 4
Configurations (approximate): 40
Project Duration: 1 year
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 4 of 34
7. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
LL (Load Lifter)
Project Type:
• Redesign of existing multi-model product
family.
Project D i
P j t Drivers:
• Evolution of product costing eventually
drove product pricing higher than the
market would bear, resulting in significant
reductions in sales.
Goals/Targets:
g
• Reduce cost by 50%, allowing product to
be sold at an acceptable price point.
Results:
• Reduced costs by 66%.
• 50% sales increase.
• Achieved improvements in functionality
and reliability as outlined in project plan.
Base Models: 2
Configurations (approximate): 20
Project Duration: 9 months
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 5 of 34
8. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
GL (Genie Lift)
Project Type:
• Redesign of existing multi-model product
family.
Project D i
P j t Drivers:
• Customer feedback for product
improvements.
• Corporate cost reduction targets.
Goals/Targets:
• Improve p
p profit margins through a 25%
g g
reduction of product cost.
• Improve features, functionality and
reliability.
Results:
• Reduced costs by 30%.
• 40% sales increase
increase.
• Achieved improvements in features,
functionality and reliability as outlined in
project plan.
Base Models: 12
Configurations (approximate): 720
Project Duration: 9 months
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 6 of 34
9. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
AWP Super Series (Aerial Work Platform)
Project Type:
• Redesign of existing multi-model product
family.
Project Drivers:
• Original product family had a long history
of strong sales revenue and profit
generation.
• Competitive pressure resulting in 3
successive years of significant market
share losses in a product category that
had been originally established by the
company.
• Significant "pride factor" throughout many
levels of the organization.
Goals/Targets:
• Improve product competitiveness and
re-establish market leadership.
•R d
Reduce costs t improve profit margin.
t to i fit i
Results:
• Sales increase resulting in market share
as high as 80% within two years of
product introduction.
• Achieved significant feature, functionality,
and reliability improvements as outlined in
project plan.
• Reduced costs by 20%. Patented design
improvements allowed the manufacturing
team to establish a timed production flow
line, reducing product assembly time by
25%.
• A key competitor completely withdrew
from the market shortly after losing a
patent infringement suit for copying
elements of our design.
Base Models: 18
Configurations (approximate): 10,000
Project Duration: 1 year
Budget (approximate): > $1,000,000
Cross-functional team size: 12
Page 7 of 34
10. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
IWP Super Series
(Industrial Work Platform)
Project Type:
• Redesign of existing multi-model product
family.
Project D i
P j t Drivers:
• Transfer technological elements from the
AWP project to the IWP product line to
optimize manufacturing commonality,
improve functionality, and reduce overall
costs.
• Integrate improved features and reliability
specifically targeted for this product line
based on customer feedback and
historical warranty data.
Goals/Targets:
• See "Project Drivers" section above.
Results:
• Project completed on time and within
budget.
• Significant sales revenue impact.
• High level of customer satisfaction
achieved.
• Refer to AWP Super Series Project
results for related market share, cost
reductions and manufacturing
improvements.
Base Models: 3
Configurations (approximate): 3,600
Project Duration: 9 months
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 8 of 34
11. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
DPL Super Series (Dual Personnel Lift)
Project Type:
• Redesign of existing multi-model product
family.
Project Drivers:
•TTransfer technological elements f
f t h l i l l t from the
th
AWP project to the DPL product line to
optimize manufacturing commonality,
improve functionality, and reduce overall
costs.
• Integrate improved features and reliability
specifically targeted for this product line
based on customer feedback and
historical warranty data.
Goals/Targets:
• See "Project Drivers" section above.
Results:
• P j t completed on ti
Project l t d time and within
d ithi
budget.
• Significant sales revenue impact.
• High level of customer satisfaction
achieved.
• Refer to AWP Super Series Project
results for related market share, cost
reductions and manufacturing
improvements.
Base Models: 3
Configurations (approximate): 720
Project Duration: 9 months
Budget (approximate): < $1,000,000
Cross-functional team size: 10
Page 9 of 34
12. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
GS-1530/1930 Scissor Lifts
Project Type:
New Product Development
Project Drivers:
• Initiative to grow sales revenues in other
aerial work platform product categories
categories.
• Initiative to become a "full line" supplier of
aerial work platforms.
• Strong customer feedback requesting
that we enter this product category for our
future business survival.
• Strategic defense of existing product lines
against encroachment b scissor lift
i t h t by i
manufacturers.
Goals/Targets:
• Develop a 15 and 19 ft mini-scissor lift
product line that meets or exceeds
customer requirements.
• C t a compelling " l proposition" t
Create lli "value iti " to
ensure market success.
• Develop scissor lift production facility
from the ground up, including building
construction, capital equipment
acquisition and installation, and hiring
a new production team.
Results:
• Introduced product innovations
that provided key sales advantages to
effectively compete against existing
competitors.
• World leading scissor lift manufacturer
possessing the l
i h largest and most efficient
d ffi i
¹ This project had been managed by an outside consulting firm for scissor lift production facility in the world.
two years prior to my involvement. This was the largest single
• The overall scissor lift product family
undertaking in the history of the company as it involved a
significant financial investment and a high level of coordination. accounted for 30% of the total corporate
The construction of the facility, the acquisition and installation of sales revenue in 2002.
large amounts of capital equipment, the hiring and training of
hundreds of new production team members, and the Base Models: 2
development of the initial p
p product line made this p j
project extremely y
challenging. Configurations (approximate): 160
Project Duration: 1 year¹
Budget (approximate): > $30,000,000
Cross-functional team size: 20
Page 10 of 34
13. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
TMZ-34/19 (Trailer-Mounted Boom)
Project Type:
New Product Development
Project Drivers:
• Initiative to grow sales revenues in other
aerial work platform product categories.
• Initiative to become a "full line" supplier of
aerial work platforms.
• Strategic defense of existing product lines
against encroachment by trailer-mounted
boom manufacturers.
Goals/Targets:
• Develop and introduce a 34 ft. trailer-
mounted boom to effectively compete
against existing manufacturers.
• Ensure product meets or exceeds
customer requirements.
• Create a co pe g "value p opos t o to
C eate compelling a ue proposition"
ensure market success.
Results:
• Introduced patented product innovations
that provided key sales advantages to
effectively compete against existing
competitors.
competitors
• Dominant market share achieved within
two years of product introduction,
estimated to be at least 50%.
• Added $10,000,000 to overall company
sales revenues during the first year of
production.
Base Models: 2
Configurations (approximate): 160
Project Duration: 1 year
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 11 of 34
14. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
TMZ-50/30 (Trailer-Mounted Boom)
Project Type:
New Product Development
Project Drivers:
• Initiative to grow sales revenues in other
aerial work platform product categories.
• Initiative to become a "full line" supplier of
aerial work platforms and to continue to fill
out our trailer-mounted boom product
family.
• Strategic defense of existing product lines
against encroachment by trailer-mounted
g y
boom manufacturers.
Goals/Targets:
• Develop and introduce a 34 ft. trailer-
mounted boom to effectively compete
against existing manufacturers.
• Ensure product meets or exceeds
customer requirements.
• Create a compelling "value proposition" to
ensure market success.
Results:
• Introduced patented product innovations
that provided key sales advantages to
effectively compete against existing
competitors.
• Dominant market share achieved within
two years of product introduction,
estimated to be approximately 50%.
• Added $15,000,000 to overall company
sales revenues during the first year of
production.
Base Models: 3
Configurations (approximate): 150
Project Duration: 1 year
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 12 of 34
15. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
GS-2032, 2046, 2646, & 3246 Scissor Lifts
Project Type:
New Product Development
Project Drivers:
• Refer to GS-1530 & 1930 Scissor Lift
Project.
Goals/Targets:
• Develop and introduce additional electric
scissor lift models, necessary to fill out
the complete product category, that
meets or exceeds customer
requirements.
Results:
• Refer to GS-1530 & 1930 Scissor Lift
Project.
Base Models: 4
Configurations (approximate): 320
Project Duration: 1 year
(overlapping with GS1530/1930 Project)
Budget (approximate):
Included in GS-1530/1930 Project
j
Cross-functional team size: 20
Page 13 of 34
16. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
GS-2668 & 3268 Rough Terrain
Internal Combustion Scissor Lifts
Project Type:
New Product Development
Project D i
P j t Drivers:
• Initiative to grow sales revenues in other
aerial work platform product categories.
• Initiative to become a "full line" supplier of
aerial work platforms.
• Continued customer feedback requiring
the development of additional scissor lift
models to complete a similar product
category.
• Strategic defense of existing product lines
against encroachment by scissor lift
manufacturers.
Goals/Targets:
• Develop and introduce an initial rough
terrain internal combustion scissor
lift product family that meets or exceeds
customer requirements.
Results:
• Introduced product innovations
that provided key sales advantages to
effectively compete against existing
competitors.
• The overall scissor lift product line
accounted for 30% of the total corporate
sales revenue in 2002.
Base Models: 2
Configurations (approximate): 240
Project Duration: 1 year
Budget (app o
udget (approximate): > $1,000,000
ate) $ ,000,000
Cross-functional team size: 15
Page 14 of 34
17. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
GS-4390 & 5390 Rough Terrain
Internal Combustion Scissor Lifts
Project Type:
New Product Development
Project Drivers:
• Initiative to grow sales revenues in other
aerial work platform product categories.
• Initiative to become a "full line" supplier of
aerial work platforms.
• Continued customer feedback requiring
the development of additional scissor lift
models to complete the p
p product category.
g y
• Strategic defense of existing product lines
against encroachment by scissor lift
manufacturers.
Goals/Targets:
• Develop and introduce additional rough
terrain scissor lift models neccesary to
models,
fill out the complete product category, that
meets or exceeds customer
requirements.
Results:
• Introduced product innovations
that provided key sales advantages to
effectively compete against existing
competitors.
• The overall scissor lift product line
accounted for 30% of the total corporate
sales revenue in 2002.
Base Models: 2
Configurations (approximate): 120
Project Duration: 2 year
Budget (approximate): > $1,000,000
Cross-functional team size: 10
Page 15 of 34
18. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
GR (Genie Runabout)
Project Type:
New Product Development
Project Drivers:
• Initiative to grow sales revenues in other
aerial work platform product categories.
• Initiative to become a "full line" supplier of
aerial work platforms.
• Customer feedback requesting the
development of these models.
• Strategic defense of existing product lines
against encroachment by other aerial
g y
work platform manufacturers.
Goals/Targets:
• Develop and introduce a multi-model
family of self-propelled vertical mast
booms to effectively compete
against existing manufacturers by
ensuring the product line meets or
exceeds customer requirements.
• Create a compelling "value proposition" to
ensure market success.
Results:
•I t d
Introduced product innovations
d d ti ti
that provided key sales advantages to
effectively compete against existing
competitors.
• Dominant market share achieved in this
product category within two years of
product introduction.
• Added $ $7,000,000 to overall company
sales revenues during the first year of
production.
Base Models: 3
Configurations (approximate): 480
Project Duration: 1 year
Budget (approximate): < $1,000,000
Cross-functional team size: 6
Page 16 of 34
19. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project:
TML (Trailer-Mounted Light Towers)
Project Type:
New Product Development
Project Drivers:
• Corporate initiative to diversify the
company's product portfolio to grow sales
revenues from existing product
categories outside of the company's core
product lines.
• Corporate initiative to develop products
that are counter-cyclical to existing
product portfolio to allow for increased
productivity and consistent quarterly sales
revenue generation.
Goals/Targets:
• Develop and introduce a line of trailer-
mounted light towers.
• Ensure product meets or exceeds
p
customer requirements.
• Create a compelling "value proposition" to
ensure market success.
Results:
• Introduced patented product innovations
that provided sales advantages to
effectively compete against creatively
stagnant competitors.
• 10% market share achieved within two
years (and growing) in a highly
competitive product category dominated
by companies with strong brand name
presence directly related to this product
type.
• Added $5,000,000 to overall company
sales revenues in 2002.
Base Models: 2
Configurations (approximate): 32
Project Duration: 1½ years
Budget (approximate): < $1,000,000
Cross-functional team size: 8
Page 17 of 34
20. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
GS-2632 Electric Scissor Lifts &
GS-3384 Rough Terrain Scissor Lifts
Project Type:
New Product Development
Project D i
P j t Drivers:
• Continued expansion of scissor lift
product family.
Goals/Targets:
• Similar to previously listed scissor lift
g
targets
Results:
• Successful introduction of both products
per project schedules and budgets.
Base Models: 2
Configurations (approximate): 140
Project Duration: 1 year each
Budget (approximate): < $1,000,000
Cross-functional team size: 8 - 10
Page 18 of 34
21. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
Bil-Jax Summit Series
Trailer-Mounted Boom Product Line
Project Type:
New Product Development
Project Drivers:
Bil-Jax
• Bil Jax had an outdated product offering
and had been experiencing downward
trending market share for several
successive years.
• Company was the leading scaffolding
manufacturer in North American but was
looking to their powered access business
for
f expansion.
i
Goals/Targets:
• Improve product competitiveness and
re-establish market leadership.
• Reduce costs to improve profit margins.
Results:
• Successful introduction of entire product
family per project schedules and budgets.
• Catapulted Bil-Jax back into a market
leadership position for this product
category.
• Product offering and appeal was
leveraged t d
l d to develop new i t
l international
ti l
distribution channels.
• Product offering and growth positioned
the company as an acquisition target for a
number of companies.
Base Models: 24 • Bil-Jax was purchased by the world's
third largest aerial work platform
Configurations (approximate): 1 000's
1,000 s manufacturer following the introduction of
Project Duration: 2 years this and the X-Boom product lines.
Budget (approximate): > $1,000,000
Cross-functional team size: 7 - 10
Page 19 of 34
22. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
Bil-Jax Summit Series (continued)
Page 20 of 34
23. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
Bil-Jax X-Booms
Self-Propelled Boom Lift Product Line
Project Type:
New Product Development
Project Drivers:
company s
• Substantially grow the company's
revenues and market presence within the
powered access industry.
• Create and establish a leadership
position in an innovative new product
category.
Goals/Targets:
• Position Bil-Jax as an innovator and
leader within a new product category.
• Leverage maximum commonality of parts
with the Summit Series trailer-mounted
boom family.
Results:
• Developed a new family of hybrid self-
propelled boom lifts that would provide the
transportability of trailer-mounted booms
with the on-site maneuverability of
conventional self-propelled booms.
• Successful introduction of two of the eight
base models prior to my d
b d l i departure
from the company.
• Significant sales revenues and market
acceptance achieved. Positioned Bil-Jax
as more than just a scaffold and trailer-
Base Models: 24 mounted boom manufacturer, allowing
them to leverage the International markets
Configurations (approximate): 1 000'
C fi ti ( i t ) 1,000's as a new product category leader.
Project Duration: 2 years • Maximized common components and
major sub-assemblies from the Summit
Budget (approximate): > $1,000,000
Series trailer-mounted boom product
Cross-functional team size: 7 - 10 family to create this new product line.
Page 21 of 34
24. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
Bil-Jax X-Booms
Page 22 of 34
25. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
MEC Aerial Work Platforms
M40T & M46TJ Self-Propelled Booms
Project Type:
New Product Development
Project Drivers:
• MEC offered a full line of scissor lifts but
did not have any self-propelled boom lifts
in its product portfolio. They need to be a
full line provider in order to be strategically
positioned for substantial growth.
Goals/Targets:
• Develop a highly competitive family of
telescopic and articulating boom models
that can be produced at a cost target that
would ensure a competitive price position
within the market.
Results:
• Prototypes built for key 2008 trade
shows and were successfully marketed -
we sold out our planned production
capacity for nearly 6-months.
Base Models: 8 • Each model is far superior in
comparisons against competitive
Configurations (approximate): 1,000's
machines in the same product category
Project Duration: 1 year in virtually every key published
specification and feature.
Budget (approximate): < $1,000,000
• Project was on budget and met their
Cross-functional team size: 5 -6 margin targets for each model.
Page 23 of 34
26. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Projects:
MEC Aerial Work Platforms
M40T & M46TJ Self-Propelled Booms
Page 24 of 34
27. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Strategic Alliance/Private Labeling
Company:
ATD Northwest
Products:
Portable Video Surveillance Systems
Business Activities:
• Co-developed trailer-mounted video
surveillance product.
• Developed relationships, strategies and
processes to facilitate mutually beneficial
business arrangements.
• Other details cannot be released
due to proprietary agreements.
A STRATEGIC OPPORTUNITY
Page 25 of 34
28. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Strategic Alliance/Private Labeling
Company:
Stanley Hydraulic Power Tool Division
Products:
Multiple product lines.
Business Activities:
• Co-developed several product lines for
both organizations to brand within their
respective distribution systems.
• Developed relationships, strategies and
processes to facilitate mutually beneficial
business arrangements.
• Other details cannot be released
due to proprietary agreements.
Page 26 of 34
29. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Strategic Alliance/Private Labeling
Company:
Terex Handlers (Baraga Products Inc.)
Products:
Multi-model telehandler product line.
Business Activities:
• Private labeling of Terex Handlers
through Genie's distribution system.
• Developed relationships, strategies and
processes to facilitate mutually beneficial
business arrangements.
• Other details cannot be released
due to proprietary agreements.
Other Notes:
• Provided leadership for a similar project
with a company in Italy that is now
producing Genie branded telehandlers for
our international sales offices throughout
Europe, Asia, Africa, and Australia.
Page 27 of 34
30. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Product Rationalization Projects
Project Scope/Purpose: The product
rationalization process is intended to identify
products which do not fit into the corporation's
overall strategy for one or a combination of
the following reasons:
• Low or no profit
• Low sales
• Unjustifiably unique or complex
manufacturing processes.
The process is conducted annually and
produces a number of i iti ti
d b f initiatives i l di
including:
• Price increase recommendations.
• Cost reduction proposals targeted
for specific product lines.
• Initiatives to improve sales and
marketing efforts to increase sales
of targeted products.
• Design for manufacturability initiatives.
• Product obsolescence and related
recommendations for production build-
out and inventory disposition.
Results:
R lt
• Significant improvements in
organizational efficiency and profitability.
Project Duration: 6 - 9 months
Cross-functional team size: 6 - 8
Page 28 of 34
31. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
New Product/Business Assessment
Project Scope/Purpose:
• To evaluate and approve project proposals to ensure specific targets will be met.
• Co-developed several tools that include strategic and financial evaluation criteria. A
sample of one of these tools is listed below:
CONTRIBUTION ASSESSMENT SHEET
New Product Example 5/12/03 rev.
rev F
Sales Projection Projected
Average net sell price $4,655 Current Sales Replaced by New Unit
Sales forecast 3,236 Current Model Current
Discount factor 0.6187 Average net sell price $0
Units sold per year 0
Per Unit Per Year
% net Cannibalized Sales Current
List price $7,523 Model none
Average Net Sell Price $4,655 $15,062,672 Average net sell price $0
Lost unit sales per year 0
Average Discounts/Expenses 3.50% $163 $527,194 Average discount/expense 3.50%
Net Sales $4,492 $14,535,479 Net replaced sales
p $0
Variable Costs % net Current Variable Costs per unit savings
Materials Costs Materials Costs
Avg Direct Materials (BOM) $1,729 $5,595,044 Direct Materials (BOM) $0 $0
Outside Processing 0.04% $2 $6,173 Outside Processing
Consumables 0.63% $29 $94,390 Consumables
Inbound Freight - Direct 1.19% $56 $179,996 Inbound Freight - Direct
Other - Direct Costs 0.87% $41 $131,549 Other - Direct Costs
Inbound Freight - Allocated 0.13% $6 $19,396 Inbound Freight - Allocated
Other - Allocated -0.09% -$4 -$14,118 Other - Allocated
Indirect Materials total (non-BOM) $129 $417,387
Contribution Margin-Gross 56.58% $2,634 $8,523,047
Variable Operating Costs Variable Operating Costs
Direct Product Team Labor 11.65% $542 $1,755,359 Direct Product Team Labor
Indirect Product Team Labor 5.26% $245 $792,556 Indirect Product Team Labor
Product Team Expenses 1.26% $59 $189,940 Product Team Expenses
Corporate Overhead 0.00% $0 $0 Corporate Overhead
Additional marketing $0 $0
Contribution Margin-Net $1,788 $5,785,193 Cost Reduction per Unit $0
per
Allocated Fixed Costs Development Costs hour hours totals
Fixed Operating Costs Engineering cost $40 0 $0
Product Team Expenses 2.41% $112 $362,861 Process set up labor $40 0 $0
Equipment Depreciation & Rent 1.73% $80 $260,006 Distribution set up cost $40 0 $0
Warranty Expense 2.85% $133 $429,783 Prototypes $0
Corporate Overhead 8.22% $382 $1,237,559 Testing and Certification $0
Sales and marketing 6.00% $279 $903,760 Tooling $0
Operating Profit $801 $2,591,224 Equipment $0
% Operating Profit 17.2% Other (patents, travel, etc.) $0
Total development cost $0
Cash and Earnings Impact
Cash Impact of Program Investment Value of Program
Development costs $0 Return analysis time (years) 3
Average weeks of on-hand inventory 2 Time to market (years) 1
Cost to develop inventory $336,549 Amount invested $3,281,708
Average days payment terms 90 Cost of capital 9.50%
Cost to develop accounts receivable $2,945,158.58
$2 945 158 58 Incremental Operating Earnings (annual) $2,500,532
$2 500 532
Total investment: $3,281,708 net present value $2,991,893
Net Present Value (adjusted) $2,732,322
# of months from project start to first production unit 1 Return 56%
# of months from project start to production at rate 12
300,000
200,000 Cash Flow
100,000 month 1 will be in the past on in
0 process projects
-100,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
-200,000
-300,000
-400,000
Month (from project start)
Operating Earnings Impact of Program
Cost Reduction Impact (annual) $0
(positive value is a cost reduction)
Sales Revenue Impact (annual) $14,535,479
(new net sales - old net sales)
Operating Earnings Impact (annual) $2,500,532
(additional net sales * profit percent) + total cost reduction
Page 29 of 34
32. New Product/Business Assessment
Contribution Assessment Summary Worksheet
Per Unit Net Sales Price $35,000
Costs
Material cost $18,172 52%
Labor $1,200 3%
Overhead (2x) $1,200 3%
SGA & all other $6,563 19%
Total Costs Per Unit $27,135 78%
Operating Income Contribution $5,681 16%
Less: Taxes (40% of EBIT) $2,272
Net Income $3,409
Initial Capital Investment
Development costs $137,358
Initial cost to develop inventory $85,718
Accounts receivable development cost $218,750
Total Investment $441,826
Investment Value of Project
Return term (years) 10
Time to market (years) 1
Amount invested $441,826
Cost of capital 15%
Net present value $4,416,796
Return 106%
Project Summary
Average Annual Sales Revenue Impact $3,850,000
Average Annual Operating Income (EBIT) $865,094 22%
Units sold per year 50 100 200 150 150 150 150 100 50 -
Annual
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Totals Average
Sales 1,750,000 3,500,000 7,000,000 5,250,000 5,250,000 5,250,000 5,250,000 3,500,000 1,750,000 - $38,500,000 3,850,000
Variable costs (excl. dep) 1,028,614 2,057,229 4,114,457 3,085,843 3,085,843 3,085,843 3,085,843 2,057,229 1,028,614 - $22,629,514 2,262,951
Fixed costs (excl. dep) 328,161 656,323 1,312,645 984,484 984,484 984,484 984,484 656,323 328,161 0 $7,219,549 721,955
Operating Income (EBIT) 393,224 786,449 1,572,898 1,179,673 1,179,673 1,179,673 1,179,673 786,449 393,224 - $8,650,937 865,094
Taxes (40%) 157,290 314,580 629,159 471,869 471,869 471,869 471,869 314,580 157,290 $3,460,375 346,037
Net Income 235,935 471,869 943,739 707,804 707,804 707,804 707,804 471,869 235,935 - $5,190,562 519,056
Change in working capital (304,468) (304,468) (608,936) 304,468 - - - 304,468 304,468 304,468 $0
Operating Cash flow (68,533) 167,401 334,803 1,012,272 707,804 707,804 707,804 776,337 540,403 304,468 $5,190,562 519,056
Capital Investment -$137,358
Net cash flows -$137,358 -$68,533 $167,401 $334,803 $1,012,272 $707,804 $707,804 $707,804 $776,337 $540,403 $304,468 $5,053,204 505,320
Discount rate (WACC) 15%
NPV¹ $4,416,796
ROI (IRR) 106%
Assumptions
Days
A/R (45 days) 45 218,750 437,500 875,000 656,250 656,250 656,250 656,250 437,500 218,750 -
Inventory (60 days) 60 171,436 342,871 685,743 514,307 514,307 514,307 514,307 342,871 171,436 -
Payables and Accru. Exp. 30 85,718 171,436 342,871 257,154 257,154 257,154 257,154 171,436 85,718 -
Working capital 304,468 608,936 1,217,871 913,404 913,404 913,404 913,404 608,936 304,468 -
¹ NPV calculated from EBIT
33. Product Assessment
New Business Strategy
• Linking new product development
with organizational objectives.
• By 2012 we will generate over 50% of
Idea Idea our annual revenue with new products.
Generation Screening Business
Brainstorming:
Analysis
The first filter in Stage 1
Development
Thinking of Test
the NBD Process Stage 1
unlimited ways to Preliminary figures $
that eliminates for demand, cost, Rapid proto Marketing Final
vary a product or
solve a problem. ideas that are sales, and profit Stage 2 Evaluate Decision $
inconsistent with potential are • Cost and reactions of Full
Sources: $
• Customer council the organization’s calculated. Market potential market
• End users strategy or are Stage 2 Evaluation customers introduction $
• Sales reps obviously Entry Analysis: • Funding in a market
• Rental companies inappropriate for • Alliances • Staffing test area. $
• Competitors other reasons. • Business
• NPD
• Team members
• Manufacturers • Joint Venture Plan
• Trade shows • Acquisition
• Market Size.
Is idea consistent with • Market Potential.
Checklist for evaluating new product
company goals? • Current Penetration.
concepts:
• Impact on existing
1. Contribution to pre-tax return on investment.
product line & business.
2. Estimated annual sales.
Not • The Competition.
Yes No 3. Estimated growth phase of Product Life Cycle.
Sure • Who buys the
4. Capital investment payback
product?
5. Premium-Price Potential
Proceed to Concept STOP • How will we get the
Business Test
1 August 2007
product to market?
Analysis
34. IDEA GENERATION
QFD: A process for translating customer expectations into CONCEPT SELECTION
design and process parameters CONCEPTS/IDEAS
CONCEPTS/IDEAS
INPUT FOR THIS STEP = TECHNICAL MATRICES IDEAS
(ONE FOR EACH SUB-SYSTEM)
MARKET DATA
TECHNICAL PRODUCT
PRODUCT PLANNING MATRIX
TECHNICAL
PRODUCT
SUB-SYSTEMS
(MAST, BASE, ETC.) TECHNICAL
MANUFACTURING
PROCESSES
Output/Results: Output/Results: Output/Results:
Output/Results:
- What the customer expects. - Technical (design) parameters which - Idea generation focused on
- Allows systematic evaluation and
- How important is each directly pay-off to customer expectations determining potential ways to
selection of various concepts
expectation (prioritized). for each sub-system. satisfy customer expectations.
based on the best "balance"
- Preliminary cost targets for - Prioritized importance rating for each - Many ideas generated for each
between meeting the customer
each sub-system of the design technical parameter based on its' customer expectation and the
expectations and meeting the
based on its' over-all over-all contribution to satisfying manufacturing process.
strategies of the organization.
contribution to customer customer expectations. - Rough screen evaluation and
expectations. - Technical benchmarking parameters elimination to determine which
- Preliminary risk analysis. and analysis. ideas have the most potential.
- Rough cut competitive - Identification of positive and negative - Ideas re-categorized by affected
benchmarking (using competitive correlations between parameters. sub-systems and then categorized
literature and previous data). - Target values (specs) for design. by short, medium, and long term
- Risk analysis on each specific implementation.
technical parameter. - Ideas regarding manufacturing
processes to be taken into
consideration during the design phase.
Steven Citron
35. QFD: A process for translating customer expectations into
design and process parameters
MANUFACTURING PROCESS MATRICES
INPUT FOR THIS STEP = QUALITY PLANNING MATRICES
TECHNICAL MATRICES MANUFACTURING PROCESS
STEPS QUALITY CONTROL POINTS
(DEBUR, CLEAN, WELD, PAINT, ETC.)
PART CHARACTERISTICS MATRIX
(only for the system chosen to be carried forward)
MANUFACTURING PROCESS QUALITY CONTROL POINTS
PARTS CHARACTERISTICS STEPS
(THICKNESS, RADIUS, LENGTH, ETC.)
QUALITY CONTROL POINTS
MANUFACTURING PROCESS
STEPS
Output/Results:
- Translation of technical parameters
into specific parts characteristics that will Output/Results: Output/Results:
meet the technical parameter target
values. - Translates the critical part characteristics into - Control points for established process steps.
process steps which will meet the necessary - Determines process control points to ensure
requirements. process consistency.
- Set cost/time targets for each basic function or process step. - Helps establish processes which will ensure
- Identifies the most important process steps to achieve consistent output by limiting the variation in
the parts characteristics. the manufacturing process.
- Output provides data for detailed manufacturing flow - Set cost/time targets for each quality area.
charts, allowing analysis and process improvement
before, during and after product introduction.
Steven Citron
36. STEVEN CITRON
PROJECT AND PRODUCT MANAGEMENT PORTFOLIO
Project & Product Management Experience: 16 years
j g p y
Project types:
New Product Development
Product Improvement
Cost Reductions
Product Rationalization
p
New Product/Business Development
Strategic Partnership/Private Labeling/Branding
Distribution Development
Typical project durations: 9 - 18 months
Typical cross-functional team size: 8 - 12
Formal Education and Training:
• Leadership training • Value engineering
• Management training (McGraw Hill) • Rapid new product development
• Project management (multiple courses) • Formal & extensive QFD training
• Total Quality Management • Total customer satisfaction
• Lean manufacturing • Creative problem solving
Project planning tools/process experience:
GOAL/QPC Seven Management and Planning T l
S M t d Pl i Tools: Other t l /
Oth tools/processes:
• Affinity Diagrams • Gantt Charts
• Interrelationship Digraphs • Pert Charts
• Tree Diagrams • Quality Functional
• Matrix Diagrams Deployment & HOQ
• Prioritization Matrices • Contribution Assessment
• Process Decision Program Chart (
g (PDPC)) • Pugh's Concept Selection
• Activity Network Diagram Process
Other misc. problem solving tools
• The Seven Quality Control Tools (7QC)
Accomplishments:
• Proven track record of product management and project leadership resulting in the
introduction of several new and improved products, representing cumulative sales of
several billion dollars, significantly impacting the success of a number of companies.
• Responsible for product rationalization/life cycle management processes, results of
which have contributed to efficiency gains and related improvements in profitability.
• Served as project and product planning manager, responsible for market research,
competitive benchmarking, final design specifications and leading cross-functional
teams from concept generation through market introduction, sales, and customer
support for over 100 products (primary model configurations) over the past 16 years
years.
• Several products mentioned above have received awards and recognition. Many
are the industry benchmark, with market shares near or in excess of 50%.
• Named inventor and co-inventor on several U.S. patents.
Page 34 of 34
