ABB Gate Model Overview Ulf Westblom ABB Gate Model Overview

Course Objectives By the end of the course you should: Have an understanding about the gate model Be familiar with the different gates Know what the ABB Gate Model means for you What are your expectations?

ABB Gate Model for Project Managers Available Training Assessor Training ABB Gate Model for Project Managers ABB Gate Model ABB Gate Model Fundamentals

Why Use the Gate Model To ensure that by Gate 5, the organization can release a product ready for sale (PD) or technology ready for transfer (TD) To establish a common terminology To make the status of the projects in the organization visible To enhance: project control, decision making and responsiveness communication within/between projects synchronization between different tasks in product development

Business Decision Layer Project Management Layer Model Types The ABB Gate Model Technology Development Product Development Process Improvment ABB Gate Model Business Decision Layer ABB Gate Model Project Management Layer ABB Gate Model Execution Layer

Overview of the ABB Gate Model Retrospective Investigation of Project Confirm Execution Start Introduction Start Execution Release Product Close Project Start Planning Start Project Start Project Start Planning Close Project Start Execution Confirm Execution Start Introduction Release Product Retrospective Investigation of Project

Basic elements of the ABB Gate Model Gx The Gate concept The roles

What is a Gate? Gx A business decision based on Possible Outcome Benefits Status Resources Technology Risk Possible Outcome Continue project with or without changes Terminate project Gx

What is a Gate (cont.)? Gx Gate Process GO NO GO Continue project (with or without changes) GO Gx Gate Meeting Assessment Report Cancel project NO GO Request for more information

Gates versus Milestones A business based decision point to determine whether to continue or terminate a project based on its benefit, status, risk, resource and technology considerations. Milestone A project manager’s progress check point Shows how far a project has proceeded against defined criteria. A milestone enables project management to take corrective actions.

Roles Gate Owner Project Manager Gate Assessor Gate Meeting Participants

ABB Gate Model - Proposed usage Two weeks before the meeting Gx Gate Meeting Assessment Report

ABB Gate Model - Proposed usage One week before the meeting Gx Gate Meeting Assessment Report

ABB Gate Model - Proposed usage At the meeting Gx Gate Meeting Assessment Report Introduction (Agenda, Project Goals, Actions) Gate assessment presentation Discussion Gate decision Actions

ABB Gate Model - Proposed usage After the meeting Gx Gate Meeting Assessment Report Minutes of meeting Communication of results Monitor actions

Roles in CRC today – Who are suitable Gate Owner Project Manager Gate Assessor Gate Meeting Participants

Why Assessments? Limited amount of time for decision makers Good decisions require preparations Focus on essential information Makes it possible to cover all aspects, without getting stuck on details The assessment report presentation gives structure to the meeting Support the project Identify areas needing more attention in the project

Exercise 1 Purpose: Understand the profile of a suitable assessor Task: Discuss and list the requirements on the assessor Result: Profile of a suitable assessor

The Assessor The Gate Assessor This requires someone that acts on assignment from the Gate Owner summarizes project information in an unbiased way provides recommendation for Gate decision This requires someone that has experience from product development, preferably both business and technology is unbiased with respect to the project has communicating skills has networking skills - getting information from stakeholders has integrity with respect to the Gate Owner as well as to the project Example of suitable persons Project managers, product managers, R&D managers, marketing & sales managers, ...

Why Use an Assessor External to the Project? Advantages Unbiased No credibility issues if a No-Go proposal ends with a Go decision No personal dependencies to the project Pressure on the project to finalize material in time for a gate Pressure on Gate Owner/Stakeholders to provide information and to make decisions Disadvantages Used the wrong way, it may reduce project and product management responsibility Extra start up time

Economic and Practical Considerations Assessment Economics Added value Better basis for decisions An external, unbiased view of the project Adds structure to the gate meetings Costs 1-2 person-days per gate (<10 kUSD per project) Business Case Just one decision made right instead of wrong will probably pay for all assessments in your organization Practical Considerations Assessments should be used with common sense In small projects the Gate Owner can do the assessment The possibility to combine gates should be used Make use of available tools – phone conferences/Sametime

IP Router@ABB Power IT at Gate 2 Exercise 2: Gate Owner Purpose: Evaluation of a Gate 2 Assessment Report as a Gate Owner Task: List things that are good and bad about the two assessment reports Result: Are you prepared to continue investing in the project? Assessment Report for IP Router@ABB Power IT at Gate 2

Finding the ABB Gate Model

ABB Gate Model in ePIPE

Use of Gates within Corporate Research Gate Meeting Gate Assessment G0 Mandatory Assessment can be replaced by a detailed Pre-study or BTE Report. G1 If G0-G2 shorter than 3 months G1 can be skipped. Checklist items addressed at G2. Mandatory if G1 is used G2 Mandatory. G3 If G2-G4 shorter than 3 months G3 can be skipped. Checklist items addressed at G4. If G4 is also skipped checklist items addressed at G5. Mandatory if G3 is used G4 If there is no validation in the customer environment planned G4 can be skipped. Checklist items addressed at G5. Mandatory if G4 is used G5 G6/G7 Assessment can be replaced by a confirmation from the business partner(s) of receipt of all required results, customer feedback and a final project report.

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