2. 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
3. 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
4. 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
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6. 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
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10. 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
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12. 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
13. 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
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15. 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
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17. 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
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19. “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
26. 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