Eric rose managing npd project tradeoffs
Post on 16-Jul-2015
269 Views
Preview:
Transcript
Managing NPD Project Tradeoffs
Presented by:
Eric P. Rose, NPDP, MBA
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
Eric P. Rose, NPDP, MBA• Adjunct Professor, Product Innovation,
Pepperdine & Loyola Marymount Universities
• NPD Consultant, Entrepreneur, Inventor
• BS Industrial Design, MBA, PDMA NPDP
• 30+ Years NPD Experience, 80+ Patents
• 2005 Co-Founded PDMA-LA, now President Emeritus
• Jan 2012 Launched Pinnacle Product Innovation, Inc.
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
Agenda• NPD Project PentagonTM Framework
• NPD Stakeholders
• Managing NPD Project Tradeoffs
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• External • Partners (KOLs, Spokespeople, Reviewers, etc.)• Customers, Shareholders• Retailers, Distributors
• Internal• Exec. Management, Finance• Operations, Quality Assurance• Research & Development• Sales, Marketing, Customer Service, Repair / Service
NPD Stakeholders Guide Tradeoffs
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
Multivariate: Having a number of independent variables
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Voice of Stakeholder (VoS)
• Prioritize Features by VoS
• Remove Low Valued Features
• Reallocate $’s • To Higher Valued Features and or• Increase Profit Margin
• [Mattel toy not TV promoted]
Features vs. Product Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
Features vs. Product Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Particular feature driving CapEx?
• Feature’s priority?
• Revise product design, reduce CapEx?
Features vs. Capital Equipment Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Identify feature driving Development Cost
• Feature priority (VoS)?
• Feature revised / eliminated / rolling launch?• Cash flow management
• Existing technology to adapt vs. ground up development?
Features vs. Development Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Feature priorities to develop? (VoS)
• Feature on or near project’s Critical Path?
• Development start before full project approval?
• Feature roll out over time?
Features vs. Schedule
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Plant, Equipment, Tooling = CapEx
• ↑ CapEx = ↑ Output = ↓Product Cost
• Tooling / Mold Cavitation Review
Product Cost vs. CapEx Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Engineers are never finished engineering
• Example – metal vs. molded caster socket(Multivariate; Prod Cost, Dev Cost, CapEx, Schedule)
• Product Requirements Document
Product Cost vs. Development Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Deadline to meet? At what cost?
• Trade shows, investor meetings
• Again – metals vs. injection molded caster socket example (multivariate)
• Available stock part vs. cheaper custom
Schedule vs. Product Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
NPD Project PentagonTM Framework
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
• Timing Critical? Add Resources?
• Mattel – “Christmas Never Moves”Pooh Walker vs. Barbie
• Pay premiums to expedite services(design, prototypes, market research, etc.)
Schedule vs. Development Cost
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
Features
Schedule Product CostNPD ProjectPentagonTM
Capital Equipment Cost
DevelopmentCost
Manage NPD Tradeoffs – With Eyes Wide Open
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
Thank You!eric@ericpaulrose.com
www.ericpaulrose.com
Twitter: @ericpaulrose
Managing NPD Project Tradeoffs
© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com
top related