Management R&D ManagementCopyright 2002Dr. Alex Coman The Kite Project Model OEM/VAR Risk Sim ProtoGen Product Existential Platform Risk Killer Nice-to-have Value V&V Activity Tactical Gating Strategic Gating Activities/Work Packages Assignment:Time(Resource,Feature) Freeze Stabilize Resources Organization VIP/BN/ Leaders Structure Resources: Project/Functional Product: Configuration Management Project: Kite Push/Pull/ Drum-Buffer-Rope

Management R&D ManagementCopyright 2002Dr. Alex Coman The Kite Project Model Knowledge Area Initiating the Project Determine Project Goals 2 Determine Deliverables 2 Determine Process Outputs 1 Document Project Constraints 1 Document Assumptions 2 Define Project Strategy 1 Identify Performance Requirements 2 Determine Resource Requirements 2 Define Project Budget 1 Provide Comprehensive Information 2 Planning the Project Refine Project Requirements 8 Create WBS 7 Develop Resource Management Plan 6 Refine Time and Cost Estimates 6 Establish Project controls 6 Develop Project Plan 7 Obtain Plan Approval 7 Executing the Project Commit Project Resources 10 Implement Project Plan 9 Manage Project Progress 11 Communicate Project Progress 9 Implement Quality Assurance Procedures 9 Beginning in 2002, the examination will reflect the following format: 1. Initiating – 8.5% 2. Planning % 3. Executing – 23.5% 4. Controlling - 23% 5. Closing - 7% 6. Responsibility- 14.5% Controlling the Project Measure Project Performance 7 Refine Control Limits 4 Take Corrective Action 7 Evaluate Effectiveness of Corrective Action 5 Ensure Plan Compliance 7 Reassess Control Plans 4 Respond to Risk Event Triggers 6 Monitor Project Activity 5 Closing the Project Obtain Acceptance of Deliverables 4 Document Lessons Learned 2 Facilitate Closure 3 Preserve Product Records and Tools 3 Release Project Resources 2 Professional Responsibility Ensure Professionalism and Integrity 8 Contribute to Knowledge Base 3 Enhance Individual Competence 5 Balance Stakeholder Interests 7 Interact with Team and Stakeholders 6

Management R&D ManagementCopyright 2002Dr. Alex Coman Project Planning Solicited RFI, RFP, RFQ; PO Work-Breakdown-Structure WBS: SRS Component Procedure Work Packages 1%-5% of total Technological Precedence Program-Evaluation & Review-Technique PERT Unsolicited Marketing-Requirement-Document MRD Statement-Of-Work SOW Telecommunications: Concept Planning Business requirements System requirements Network plan Technical specifications Implementation phase Engineering design Billing implementation Operations engineering Customer service Launch Bill-Of-Materials BOM: COGS: Recurring Costs MRDPRDSpec MKT/ R&D MKT R&D/ MKT

Management R&D ManagementCopyright 2002Dr. Alex Coman Solicited: Request-For-Product (RFP); Client Automatic Teller Machine Work-Breakdown-Structure (WBS); Systems engineering Procedure; Resource management HW: RFI, Spec, RFP, Auction SW: Analysis, Design, Code, Test Technological Precedence HW required for SW testing Statement-Of-Work (SOW); Sales Deposit and Withdraw funds Hardware Input Card Output ScreenKeyboardChecksPrinterMoney Work Packages Approximately 50 Program-Evaluation & Review-Technique (PERT) Software SecurityWithdrawalDepositComm. Three planning horizons: RFP response Pre Analysis Post Analysis Project Planning: ATM Machine

Management R&D ManagementCopyright 2002Dr. Alex Coman Duration Planning Man Months Work Resources Duration Effort Estimate Function-Points Program-Evaluation & Review-Technique PERT Calendar Schedule Critical-Path-Method CPM

Management R&D ManagementCopyright 2002Dr. Alex Coman Strategic Gating: Configuration Management/Control Strategic Gating: Prioritization Users Tier 1 Tier 2 Tier 3 Tier 4 Bugs Marketing/ Sales Refactoring/ New Tech. Cost Reduction Project Tactical Gating: In Kit, BMT Roadmap Steering Committee: Priorities QA: Out Kit Repository ECO Production FCO Fix/ Patch

Management R&D ManagementCopyright 2002Dr. Alex Coman Bad Multitasking: Lead time + Mental Setup Productivity of Development Engineering Time Projects assigned concurrently to a single engineer % time spent on value-adding tasks Job1 Time Job1 Job2 Job3 Time Job 1Job 2Job 3 Lead Time + Work-In-Process Job1Job2 Time Individuals on the team Dedication to project (%) Job1 Job2 Job3 Job1Job2

Management R&D ManagementCopyright 2002Dr. Alex Coman Strategic Gating G&G=g&g Project Management Root Cause Analysis Bad Multi-Tasking Constraint: Resources:Technical + Managerial Large Work Package Throughput-- Goal: Throughput Un-Desired Effects (Measurable) Root Problems Framework Objectives Root Conflict Projects Save Mgmt. Resources Shorten Lead Time Efficiency Due-Date Performance -- Rework Cycles ++ Time-To-Market ++ Quality --- x10 Student Spec Creep 95% Complete Coordination Failure Fines Positioning High risk AdHoc DeSpec Incomplete Kits Mental Setup WIP++ Over Design Gating Differential ABCD Project Tapering ReUse; Outsource

Management R&D ManagementCopyright 2002Dr. Alex Coman Type A: Customization / Maintenance Well-known existing technology. Some type of construction Engineering consulting firms perform product architecture, engineering design and resource planning. Basis for price quotation and contract negotiation with potential contractors responsible for project execution. Product entirely shaped and design completely frozen prior to execution phase. Projects executed after formal contract is signed. Managed in formal and rigid style. No changes introduced. Focus: finish on time within budget. Little development, testing, redesign. Communication between teams through formal channels, documents, and forms. Regular meetings on a low rate basis: once a month / two weeks. Payment mechanism: Fixed price, contractual milestones.

Management R&D ManagementCopyright 2002Dr. Alex Coman Type B: Next Generation Building a new product in a well-established industry, developing a derivative or modification of a previous design to achieve better performance, increased reliability or extended operational life. Contractors responsible for entire range of activities: engineering design, resource Planning, execution. Technologies employed not entirely new. Some development and testing. Only limited changes added to the initial design. Managers resist change and avoid excessive costs. Design frozen early, no later than first or second quarter of execution period, after one or at most two design cycles. No formal risk-management procedure Communication more intense, regular weekly or biweekly meetings of the management team, biweekly or monthly meetings with major subcontractors. Additional in-between Communications: ad hoc meetings, telephone, to resolve occasional problems.

Management R&D ManagementCopyright 2002Dr. Alex Coman Type C: New Product Development Completely new product or system that did not exist in the past. Some new to the industry, new product line for company. 50% based on technical feasibility rather than market need, initiated by contractor. Long periods of development, testing and redesign. Design freeze scheduled in 2 nd or 3 rd quarter of the projects duration. Was not concluded until 2-3 design cycles were performed. Many changes were made before the products specifications were finalized. A much more flexible attitude, extensive trade-offs. Often requirements can not be met without substantial addition of time and budget. Sometimes customers agree to waive requirements. Intensive formal and informal communication among project teams, customers. Written status reports, computer printouts, minutes, messages and memos. But, major flow is oral, conducted during meetings for problem solving and information sharing. Meetings of the project team, all subcontractors, customers. Atmosphere of open communications and continuous discussions. In some cases social events: parties, barbecues and field trips to increase interaction and reinforce Team cohesiveness and spirit. Payment mechanism: Cost Plus components, contractual milestones.

Management R&D ManagementCopyright 2002Dr. Alex Coman Type D: First-Of-A-Kind FOAK Projects envisioned to respond to some far-reaching needs. No adequate technology is available at project initiation. Focus: extremely high level of uncertainty as to what technology should be used. Customer decision to commit to the project marked by hesitation because of risk involved. To prove validity of the systems concept (POC) and to test unknown technologies: involve an intermediate program in which an experimental, scaled-down prototype model is built. Product design and specification freeze scheduled for a late moment, often during the third quarter of the project. 2-5 design cycles. Management style: high level of flexibility and tolerance for change, high awareness of potential problems. Atmosphere: Look for trouble – it must be there; if you dont see it, you have a problem. High uncertainty and continuous flow of changes require enormous amounts of information exchange and extensive communication. No one waited for formal meetings and documents to report problems and documents.

Management R&D ManagementCopyright 2002Dr. Alex Coman National Semiconductors Customer Scenario Design two Subsystems: Power Circuitry Select a part for Power supply Based on Parameters Explore option: Review product Details Do cost/benefit analysis Choose a Part Webench Expert System Data Folders Cost/Benefit Analysis Product Data Sheets Chip simulations What other Parts do I need? Run simulations Create a Design Bill of materials Subsystem Simulation Select a part for circuitry Based on Parameters Explore option: Review product Details Do cost/benefit analysis Webench Expert System Data Folders Cost/Benefit Analysis Product Data Sheets Chip simulations What other Parts do I need? Run simulations Bill of materials Subsystem Simulation Build design Into prototype For testing Outcome: Complete circuitry design For mobile phone Order parts for prototype Order reference design prototype Build Buy Bill of materials Build Prototype Select specific Bill of Materials for power supply Run thermal Simulations to See interaction Have a Satisfactory design Analyze Design Bill of materials Iterative Loop Thermal simulation Select specific Bill of Materials for circuitry Iterative Loop Bill of materials

Management R&D ManagementCopyright 2002Dr. Alex Coman Classical Model Planning 1.Project initiation Defining Goals and Priorities Defining Constraints Basic Assumptions Quantitative measures of success 2.Initial definition Learning the current system Initial definition of Output Input Data stores 3.Feasibility study Identifying alternatives Estimate: I/O volume, Processing frequency File sizes Economic feasibility Organizational/Operational feasibility Technological feasibility Comparing alternatives Selecting preferred alternative 4.System analysis of: Output Input Storage Processes Equipment Procedures: Operation Backup Recovery Data security Control Conversion and Training 5.Detailed Design Building Programmers: Programming, Debugging Organizational team: File conversion, Acceptance testing, Operation Analysts: Supervision, testing. Operation 1.Operation 2.Fixing bugs 3.Measuring: Next Generation

Management R&D ManagementCopyright 2002Dr. Alex Coman 6 Measures Feasibility Study: Alternatives: Make or Buy 6 Measures: soft vs. hard benefits Financial: Throughput = Sales – Direct Expenses; Throughput/Bottleneck Hours. Cost reduction Operating Expenses: efficiency = less people or more productivity Competitive: Agility: Lead Time=Time(Finish–Start)=Work+Wait. Due-Date-Performance Customization: printed material (not off the shelf) Functional: Inventory: Raw materials+Work-In-Process+Finished Goods Quality Process: Total Quality Product/Service: Mean-Time-Between-Failure (MTBF) Commtouch Anti-Spam-Active-Protection server.: Osterman: 75 /day=14,500 spam/year. 213 Mega Byte/user/year. $50,000/year employee = $389/year lost time:2000 $10B/redundant links to web. Likewise ISP. 1/100 innocent as spam. charge $20/mailbox if 10,000 users. Distributors: 35%-50% revenue. Pret-A-Manger time trade-off: <90 seconds to buy sandwich. Save 10Mins vs. Deli. Hazera: Cotton seeds that shorten growth by 3 weeks. Critical, 1 in 5 years early rain damage. Rockets for 30%/60% damage of Tank platoon, headquarters. Increased accuracy. McDonalds: Chicago franchiser asked for extension to his franchise agreement got it in one hour vs. 20 months in past.(Forbes, June,15,98p.43)

Management R&D ManagementCopyright 2002Dr. Alex Coman Brand Value Boosters Throughput Sales Corporate Value WIP Operating Expenses Direct Expenses QuantityPrice CustomizationQualityAgility Constraint Management Control Cycle Current-Reality-Tree Critical Chain

Management R&D ManagementCopyright 2002Dr. Alex Coman C Project: Cycles Excessive padding D Project: System Dynamics; Graphical-ERT Management Challenges Risk Management: A Project: Net/CPM, Gantt B Project: PERT =β Distribution Bullwhip effect Reliability: 80% Student Effect Over design Monte Carlo Simulation. Duration Probability OptimisticPessimistic Most Likely Expected= (O+4M+P)/6 SOW Marketing Prototyping Programming Analysis Testing Study Make 40% SOW Marketing Prototyping Decision Analysis Study Buy 60%

Management R&D ManagementCopyright 2002Dr. Alex Coman Effort Estimation: Function PointsFunction Points User Spell Checker 3.Internal File: Dictionary 2.External File: Document To be Checked 1.Input: Name of Document 4.Interactive Inquiry: Progress (words) Output: 5.No. Words reviewed 6.No. Errors found 7.List of misspelled words COnstructive-COst-MOdel Lines of code Team Client Environment: productivity Simple measures: Building: surface Airplane: weight Submarine: volume Project cost: X9 System Product Non Development Items Andersen consulting Program System Interfaces Integration Product Generalization, Testing, Documentation, Maintenance

Management R&D ManagementCopyright 2002Dr. Alex Coman V & V Verification & Validation Examiner Developer Verification User Validation Site Developer User QA α β Customer Support 76% 56% V 1.0V 8.0 Correctness 50% V 1.0V 8.0 Programmers 80% 20% V 1.0V 8.0 Post α Usability engineering – Jacob Nielsen: 12 Bank account statement forms. Info: Size of recent deposit; Interest rate; Credit limit 38 beginner development staff; Two users observed

Management R&D ManagementCopyright 2002Dr. Alex Coman V & V

Management R&D ManagementCopyright 2002Dr. Alex Coman Old System New System Beta site(s) All Sites Pilot Incremental Old System New Function1 New Function2 New Function3 Instant Old System New System Parallel Beta site; Function1; Parallel All sites: Instant Clean room Conversion EDI in the Netherlands Start Pilot Project Pilot Project Operational Follow-up Project Implementation Projects 1 Supplier: Phillips 20% Purchasing Value 45,000 Purchase Order Lines/year 4 Suppliers 28% PV 60,000 POLs/year 7 Suppliers 35% PV 90,000 POLs/year Top 20 Suppliers 65% PV 180,000 POLs/year Phillips: 1 exchange/day Others: 1/week

Management R&D ManagementCopyright 2002Dr. Alex Coman 250%: 380% Spec 100% Code 70% Use 75% Test 47% None Cost of [Lack of] Quality: X10 Law. IBM, GTE, TRW 240 Exposed Nielsen: 1 Complaint 24 Damaged Quality criticality: Supplier to Operator vs. OEM +Sale to Operational/marketing vs. Engineering

Management R&D ManagementCopyright 2002Dr. Alex Coman Rapid prototyping Rapid Prototyping Design Validation Application Programming Lifecycle Disposable Generator Expandable Designer 4GL Programmer Coding Prototype = Spec. Designer 4GL Programmer Coding Code Generator Designer 4GL 4GL Expansion Prog. Expansion Application Generators 4 th Generation Languages: 4GL Rapid Application Development: RAD In Silico vs. In vitro Evogene has bioinformatic ability to predict genetic behavior in plants prior to actual test Can develop miniature plants for accelerated testing. Many plants take less space, lifecycle accelerated. 1 year=3 tomato generations vs. 1 GUI validation Risk management Simulation

Management R&D ManagementCopyright 2002Dr. Alex Coman Life-Cycle Configuration Management: Product Roadmap Rapid Prototyping Marketing Systems Engineering Prototype Development Quality Integration Production Sales Service Spiral Release Features Windows 3.1, April MB Windows 95, August: 76MB Windows 98, Q2: 120MB Windows 2000 Features NT 3.1, MLOC NT 3.5, MLOC NT 3.51, MLOC NT 4.0, MLOC Millennium, MLOC

Management R&D ManagementCopyright 2002Dr. Alex Coman Brisk Technology Innovation – Sony HandyCam Date12/85 ModelM8 Optics ViewerOptical View Finder Lens15mm Fixed Lens Optical to Electronic CCD250,000 Pixels CCD CircuitM-series Board Recording Drive8mm Double Head Cassette8mm Cassette SoundMicrophoneElectro Condenser Power Supply BatteryNP-22 Adapter ACP-80UC AC Pack CasingM-series Casing 7/86 M10 Modified 4/87 V inch B/W CRT 12-30mm Zoom V-series Board +Playback feature V-series Casing 10/87 V mm Modified ACP88UC Modified 1/88 V-90 Smaller 300,000 V-90 Triple Head NP-55 AC V33 w/ Adapter Pack

Management R&D ManagementCopyright 2002Dr. Alex Coman Extreme Development: Wave PLM Time/Release Features/ Function Points 88: DOS 4 Mar 93:MS-DOS 6 Disk Backup & Compression Windows CE 93 NT3.1: 32 bit 29K copies; 6.1MLOC NT3.5: Faster, Stable SOHO; 8.3MLOC NT3.51: Web Server No need for special SW; 10.1MLOC NT4.0: Large Data Proc update: Cluster 1.6M copies 18.9MLOC Millennium: Most Demanding Tasks User/Info Dir, Intelli-mirror; 30MLOC Apr 92: Win 3.1: Screensaver, TrueType 10.5MB 95: TCP/IP; 76MB 98: HTML editor; 120MB Spiral (Release:DB&S+Fluid+ASP)+ Variety (Porting+Versioning)+ Distributed

Management R&D ManagementCopyright 2002Dr. Alex Coman Product Development Life Cycle: PDLC Time Cash Flow Peak Release N InitiationBreakeven Market Potential Release N+1 TerminationLaunch Legend: Goldman and Muller Development Introduction/ Growth Maturity Decline Time To Market Payback Kaplan Coman and Sadeh: TOP

Management R&D ManagementCopyright 2002Dr. Alex Coman Technology Optimization Planning - TOP Time Cash Flow -b 2a Tr=1.5*TTPr<Td Time Cash Flow Retailer Developer Release 1.0 Release 2.0 Time-To-Peak - TTP TTP 2 Peak Launch CF=at 2 +bt+c Termination TTPr<TTPd Termination Td=1.5(-b) 2a TTPr 2