1. MEASURING
PERFORMANCE OF R & D
Presented By:
BHAVANA. A ROHIDEKAR
SRUTHAKEERTHI
MUZAMIL QUADIR

2. RESEARCH AND DEVELOPMENT
Discovering new knowledge
about products, processes,
and services, and then applying
that knowledge to create new
and improved products,
processes, and services
that fill market needs.
Research and development is an investment in a company's
future

3. IMPORTANCE OF R & D
Leaps in Market Participation
Cost Management Benefits
Trend Matching
Marketing Abilities

4. NEED FOR MEASURING R & D
CASE presentation methodology
• One of the most critical motives for measuring R&D performance
at the firm level has recently been the validation of the chosen
investment level on R&D.
• R&D function has to prove its productivity and significance for the
whole company.
• R&D investments must often compete with the other investments
in the company.

5. DIMENSIONS OF R&D
PERFORMANCE ANALYSIS

6. R&D AS A PROCESS:
• As suggested in several studies , innovation and R&D should be managed as a
process.

7. Some important criteria for measuring R&D effectiveness:
SYSTEM PHASE
1) Input
2) Throughput
EVALUATION CRITERIA
Enough R & D investment
Enough R & D productivity
Degree of professionalism
Skill level of R & D personnel
Feasibility of R & D plan
Adequate education and training
Validation of selected R & D topics
Collaboration between R & D and
Production/Marketing
Expansion and Diversification of
research areas
3) Output
Degree of goal achievement
Usefulness of developed
technology
4) Outcome
Expected profit increment
Effects on general management
improvement

8. 1) CONCEPT GENERATION:
• Number of new product ideas, product enhancement
ideas evaluated in the last year
• Number of new product-based business areas/ventures
started in the past 5 years
• Customer satisfaction
• Product planning horizon
• Average product life cycle length

9. 2) PRODUCT DEVELOPMENT
• Time to market :




Average concept-to-launch time
Time for each phase
Average time of product enhancement
Average time of redesign
• Product performance:
 Cost
 Technical performance
 Quality
• Design performance:




Manufacturing cost
Manufacturability
Testability
Number of product redesigns

10. COMPANY VISITED
GUIDED BY:
Mr. Nandakumar
(Senior DGM, Tech planning)
Mr. R.C. Nautiyal
(General Manager, HR)

11. PRODUCTS OF BEL:
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Electronic Voting Machines
Radars
Telecommunications
Sound and Vision Broadcasting
Opto-electronics
Information Technology
Semiconductors
Missile
Fire-control system
Electronic Warfare Systems
Simulators
Tank electronics

12. THREE LEVELS OF RESEARCH
AT BEL
Central Research
Laboratory
Technology module
developers
(central/core R & D)
Strategic business
units

13. METHODS USED FOR
MEASURING R & D IN BEL
1) The number of In-house projects developed
The strategic business units are involved in developing a lot of
projects .
These projects can be:
• In- house
• In collaboration with DRDO
• In collaboration with foreign bodies

14. For the SBU’s , BEL keeps a
note of the number
successful projects carried
out in-house (without any
collaboration with DRDO of
Foreign bodies.)
IN HOUSE
WITH DRDO
WITH
FOREIGN
BODIES

15. • Enterprise resource planning system is the statistical tool used
for recording this.
• ERP system records all the data needed
• A weighted average of all the in-house research is taken
• The efficiency of the in-house research projects is obtained
• This hence becomes a criteria for R & D measurement.

16. 2. Patents obtained and Papers published:
This is applicable to the Central Research Laboratory and the
Core R & D department.
The effectiveness of R&D is measured
by the number of patents obtained and
the number of technical papers
published by the research teams in
various international forums.
BEL now plans to consider even the
research conducted by strategic
business units for patenting.

17. 3. VALUE ADDITION:
 If any kind of software is designed to support the research
activity, BEL considers it as a value addition done.
 Any kind of additional input given by the people working in
research team.

18. 4. Knowledge Management:
Every R & D engineer is to contribute to the knowledge
management database.
 The difficulties faced during the project
 How they solved the problems
 New techniques learnt during the project
 New technologies adopted
At the end of the year, knowledge officers award the R & D
engineers for their contribution.

19. 5. R & D Awards:
The best projects are awarded at the end of the year depending on
how successfully the research was carried out. Any patents
obtained by the research group, or any papers published by them
are also considered for the awards.

20. CHALLENGES
• One of the most problematic aspects is the selection of a
suitable set of appropriate measures for the right subjects of
measurement
• There is also the problem of determining the right norms with
which to make comparisons.
• Other substantial problems are the definition of the contribution
of R&D and the time lag between the initial stage of the process
and the outputs or the outcomes.

21. IMPORTANCE:
• Performance measures have only limited or no utility in
evaluating the outcomes of R&D activities.
• However, Performance measures can provide useful
information on the operational or functional health of an R&D
organization.
• Measures such as maintenance backlog, workforce diversity,
procurement cycle-time, papers published, patents received
are just some examples by which performance measures can
be used in the R&D environment.

22. REASONS FOR FAILURE
Several reasons that cause R&D evaluation or measurement systems
to fail:
• Too much emphasis on internal measurement
• Too much focus on behavior
• The measurement system is too complicated
• The measurement system is too subjective
• The acceptance of performance measurement in R&D

23. THANK YOU !!!!!