Lecture Slides .ppt file

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MSETM 5110 – New Product Development

Recap of Session IV

• Building Product Development and Realization Capability• Organizing and Managing Projects• Linkage of Product Development and Introduction to Business

Strategy and Values• Review of Types of Development Teams—Functional,

Lightweight, Heavyweight and Autonomous• Spiral Integration• Customer-centric Product Development• The Steps Between Product Concept and Customer Launch• Management Roles and Responsibilities• The HP DeskJet Printer Project—An Example of Planning and

Execution• Intellectual Property and Patent Portfolio• Introduced Assignment 2—McAlasdaire Imaging’s AE-1 Project

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Intellectual Property

Presenter

Dr. Ron Buchanan

Sr. Research Consultant

Education and Research Foundation

Oklahoma State University

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New Product Introduction

• Thinking Strategically

• Thinking Commercially

• Thinking Globally

• People, Programs, and Processes

• Transforming Knowledge Into Economic Value

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Session 5, Part 2

Summary/Common Themes of Assignments

1. Living on Internet Time

2. McAlasdaire Imaging – the AE-1 Project

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Summary of Living on Internet Time: Product Development at Netscape, Yahoo!™, NetDynamics, and Microsoft™

Common

• Each Aware of/Engaged in Competitive Benchmarking

• Each Used Effective Prototyping/Beta Models (Microsoft’s Approach More Internally Focused)

• Aware of Interoperability

(cont’d.)

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Summary of Living on Internet Time: Product Development at Netscape, Yahoo!™, NetDynamics, and Microsoft™ (cont’d.)

Differences• Philosophy, Culture, and Development Process• Size of Development Staffs and Resources• Microsoft’s Total-System-Solution Mindset• Microsoft Sought to Expand Competencies/Respond to SIPs• Heavyweight Team Structure (Microsoft) vs. Lightweight (Yahoo!)• NetDynamics’ Philosophy of Open Architecture Based on

Standards• Netscape’s Heavy Focus on Early Releases Before Feature Release

Note: Netscape Acquired by AOLNetDynamics Acquired by Sun MicrosystemsBased on (SEC) 10-k Filings: 1) Microsoft, 2) Netscape; 3) Yahool!, 4) NetDynamics

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Summary of Assignment 2 – McAlasdaire Imaging’s AE-1 Project

• No Clear Upfront Product Definition or Specifications

• Poor Communications Between Marketing and Engineering

• Overall Ingredients for Success Lacking

- “Start With The End in Mind” (Steven Covey, The 7 Habits of Highly Effective People)

- Alignment

- Commitment and Utilization of Resources

- Project Tracking to Meet Schedule and Costs Objectives

- Communication and Teamwork Across Functional Departments

• Capturing the Lessons Learned

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Summary of the HP Deskjet Printer Project

• Clear Product Definition and Market Segment• Clear Focus/Objectives (Low Cost, High Quality)• Created New Development Process Emphasizing Speed, Design for

Manufacturability, and Teamwork• Effective Use of Early Production Tools (CAD, CAM, CAE, PDM,

SAP Software)• Effective Use of Heavyweight Team Structure• Effective Use of Prototypes/Customer Involvement• Achieved Objectives for Cost, Quality, Customer Satisfaction• Reduced Cycle Time from 36-60 Months to 22 Months• Became the Model for Subsequent Development at HP Vancouver

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Teradyne Aurora Project(Automatic Test Equipment – ATE)

Video Tape

• Cross Functional Team/Internal Board of Directors

• Market Concerns– Microcontrollers

– ASICs

• Technology Concerns– CMOS

– Windows NT

• Discontinuous Change (Disruptive Technology)– Platform

– Derivative

• Core Competency

• Business Plan/Business Case

• Getting Engineers Close to Customer

• Understanding the Customer’s Business and Operating Metrics

• Asset/Resource Allocation

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• Organization Vision/Mission/Strategy

• Business Model/Architecture

• Development Portfolio and Development Teams

• Functional Integration (Wheelwright and Clark, Exhibit 8-1, p. 191)

- Functional Team Structure

- Lightweight Team Structure

- Heavyweight Team Structure

- Autonomous Team Structure

• Tools and Methods

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Becoming a Fast Innovator

I. Time is the key performance variable to be managed to attain improved cost and quality.

II. Time benchmarks are set by the performance of competitors and, if faster, by what is technologically possible.

III. The support functions necessary to advance the development process are actively managed to be “invisible.” Their need is to be anticipated; they are to be invested in and kept up-to-date. They are never to be allowed to slow the development process.

IV. Each program is to be managed and executed by a small, dedicated, decision-empowered, and experienced team. Team members have common goals and are measured and evaluated as part of a team.

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MSETM 5110 – New Product Development (cont’d.)

Becoming a Fast Innovator (cont’d.)

V. The development programs are to have four steps, and company will organize itself around these steps:

1. Planning and preparation

2. Product definition

3. Design development

4. Manufacturing ramp-up

5. Product Improvement

VI. The objective of planning and preparation is to avoid having to invent in the middle of the development process—make unknowns be knowns.

VII. After definition, the product specification is frozen. The definition is committed to and not allowed to be changed. The improvement phase is to be used for costs and feature enhancements.

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MSETM 5110 – New Product Development (cont’d.)

Becoming a Fast Innovator (cont’d.)

VIII. Functional expertise resides in the development program. Manufacturing and design resources are full-time participants in the definition team. Manufacturing resources are full-time participants in the design team.

IX. Team members are collocated.

X. Senior management reviews are few. The role of senior management is to ensure that the program teams have the appropriate resources, incentives and environment to execute their tasks quickly.

XI. New programs are generated continuously, at regular market-driven intervals, and incorporate more incremental advances and fewer “great leaps forward.”

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So, What Does This All Boil Down To:• Mission/Vision/Strategy• Technology Solutions in a Knowledge-based and

Global Economy• Customer- and Market-Focused• Creating Stakeholder Value• Speed, Flexibility• Repeatable, Sustaining NPD/NPI Process• Effective Use of People and Capital Resources• Being Competitive• Maintaining/Building Core Competency• Clock Speed

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Time and Innovation

• Innovation is key to the long-term vitality of all enterprises

• Innovation means more than just new products; it also means new services and ways of doing business

• While the challenge to innovation is originating new ideas, time is at the core of an innovation’s success

• Timely execution is very demanding

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Competing Through Innovation

Changing Business Climate• Globalization• Increased Competition• Technology Revolution/Evolution• Fragmented, Demanding Markets• Shorter Product Lifecycles• Virtual Organizations• E-Business

Competitive Factors• Speed• Efficiency• Quality/Reliability• Supply Chain/Distribution Channels

Translation: Creating Value for Customers

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In Review

• Competing Through Development Strategy

• The Concept of a Development Strategy

• Maps and Mapping: Functional Strategies in Pre-Project Planning

• The Aggregate Project Plan

• Structuring the Development Funnel

• A Framework for Development

• Cross-Functional Integration

(cont’d.)

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In Review (cont’d.)

• Organizing and Leading Project Teams

• Tools and Methods

• Prototype/Test Cycles

• Learning From Development Projects

• Building Development Capability

Wheelwright and Clark, Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality.

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Four Types of Product/Process Development Projects

1. Research or Advanced Development Projects

2. Breakthrough Development Projects

3. Platform or Generational Development Projects

4. Derivative Development Projects

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Summary of Clockspeed by Charles H. Fine, Sloan School of Management, M.I.T.

In the natural world, species evolve—that is, they change to meet new challenges—or they die. The same genetic imperative operates in business.

A Partial Listing of Contents:

The Genetics of BusinessLearning from the Fruit Flies

Evolution or ExtinctionCompetition in the Age of Temporary Advantage

(cont’d.)

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A Partial Listing of Contents: (cont’d.)

What Fruit Flies Teach Us About BusinessThe Insights of Clockspeed

Survival of the FittestThe Temporary Nature of Advantage

Supply Chain DesignThe Ultimate Core Capability

Executing Strategy in the Age of Temporary AdvantageThree-Dimensional Concurrent Engineering

Genetic Engineering in A Fast-Clockspeed WorldBuilding Capabilities Through Dynamic 3-D Concurrent Engineering

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Structuring for NPI and Continuous Performance Improvement

Mission/Values

Baseline/Benchmark

Metrics

Document the Lessons Learned

Adjust the Process

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Purpose

Connectivity

Relevancy

Application

Science: “what is”

Engineering: “creating what has never been”

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The Four Disciplines of a Healthy Organization

• Build and Maintain a Cohesive Leadership Team

• Create Organizational Clarity

• Over-Communicate Organizational Strategy

• Reinforce Organizational Clarity Through Human Systems

Source: Patrick Lencioni, “The Four Obsessions of an Extraordinary Executive.”

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Objective(s)

Focusing on Things That Make a Difference (Value)

Flawless Execution

Continuous Improvement

Lecture Slides .ppt file

Documents

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development teamsfunctional

subsequent development

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product concept

product improvement

development processmake

experienced team