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The Product Development Cycle in Today’s Manufacturing

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1 The Product Development Cycle in Today’s Manufacturing
Product Development Cycle in Manufacturing 11MARCH04 The Product Development Cycle in Today’s Manufacturing OVERVIEW Explain the product development cycle Define project management processes Relate #1 and #2 Discuss the tasks behind each process Suggest simple communication tools Bob Carson March 11, 2004 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

2 Product Development Cycle and Project Management Process
Expected Outcomes Individuals will understand: product development in today’s industry processes of project management value of simple communication Individuals will recognize the value of effective project management skills in today’s product development cycle 11MARCH04 Product Development Cycle and Project Management Process

3 Product Development Cycle in Manufacturing
11MARCH04 Common Definitions Product Development Cycle: the period of time needed to complete the set of events that develops an idea into a quality product Process: the ordered set of events required to achieve a quality result and ensure robust, repeatable results Project: the organization of the team’s commitment to deliver a product Project Management: the control of team behaviors across the Product Development Cycle Normally I would put expected outcomes here, but, language is so important that I need definitions first Product: something made by human industry 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

4 Product Development Cycle in Manufacturing
11MARCH04 Motivation Engineers should learn about today’s development practices An engineer’s skill set should parallel industry’s expectations Efficient individuals develop effective project management skills FYI – BOLD entries highlight key concepts 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

5 Phases of the Product Development Cycle
Product Development Cycle in Manufacturing 11MARCH04 Phases of the Product Development Cycle Phase 0 - Generate Idea Phase 1 - Plan Phase 2 - Develop Phase 3 - Validate Phase 4 - Qualify Phase 5 - Produce Describe each phase in adequate detail to provide audience with a good overview IE. Later we will talk in detail about Phase 0 and 1 – basically the specification and plan are completed here Phase 2 uses HDP, SDP, MDP, QDP etc to outline steps in development Phase 3 requires the Engr team to prove through tests that the product performs to its specifications Phase 4 requires the Mfg team to prove that humans can build several units that meet quality standards Phase 5 allows external customers to place orders and receive product with a high confidence of quality 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

6 Product Development Phases
Product Development Cycle in Manufacturing Product Development Phases 11MARCH04 Phase Sell Ideas 1 Plan 2 Develop 3 Validate 4 Qualify 5 Produce Goal Generate many ideas Develop Plan Advance idea to product Proof of specs Proof of build Robust process Process Develop Ideas into Proposal Plan the work for the Team Engineer Functional Models Test Proto units Build & Test Pilot units Release Product to Sell Main Artifact Initial Project Summary Gantt Chart Working Modules & Prototypes Solid System Proto Working Product Quality Product Owner Project Champion Core Team Extended or Core Team Member Don’t want to spend a lot of time here. Need to ensure that communication was clear. The balance of my talk will focus on the tasks related to Processes 1-4 and the keys to success. 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

7 Project Management Process Steps
Product Development Cycle in Manufacturing 11MARCH04 Project Management Process Steps Present an idea Plan the work Work the plan Learn from experiences Many individuals think this is Project Management 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

8 Process–Phase Relationship
Product Development Cycle in Manufacturing Process–Phase Relationship 11MARCH04 Project Mgmt Process Steps Phase 0 Ideas Phase 1 Plan Phase 2 Develop Phase 3 Validate Phase 4 Qualify Phase 5 Produce 1 Develop Ideas 2 Plan the work 3 Work the Plan 4 Learn from positive and negative events The balance of my talk will focus on the tasks related to Processes 1-4 and the keys to success. 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

9 Process Step 1. Present an Idea Phase 0
Product Development Cycle in Manufacturing 11MARCH04 Process Step 1. Present an Idea Phase 0 Collect ideas Consider customers Know stakeholders Write proposal (Initial Project Summary) Quick process that is the first process in Product Dev cycle This is a summary concept generation Takes 100 ideas to get 1 novel idea Make it a numbers game – you never know when you will have the one great one QUICK 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

10 Ideas come from Many Sources
Customer wants Customer needs Competitor products Competitor plans Marketing/sales logs Organizational strategies Society attitudes and opinions Passion STEP 1 Product Development Cycle and Project Management Process

11 Consider All Customers
External customers buy products that provide the lifeblood for the organization Internal customers have objectives linked to products that meet organizational goals Business partners help develop products to further everyone’s organizational goals Carefully consider each customer need STEP 1 Product Development Cycle and Project Management Process

12 Know all Stakeholder Agendas
Product Development Cycle in Manufacturing 11MARCH04 Know all Stakeholder Agendas Understand all external customer plans Check alignment of the idea with the current organizational strategies Solicit input from all internal customers and provide continuous feedback Uncover any hidden agendas through open conversations and discussions Define stakeholders. Does everyone know what I mean by a hidden agenda? Here’s an example – Marketing director agrees to plans to create an enhanced product A over the next 4 months However, unspoken the director really wants to create a new product B over the next 9 months Seasoned professionals detect underlying desires through candid conversations STEP 1 Product Development Cycle and Project Management Process NOTES PAGES

13 Develop the Initial Project Summary (IPS)
Product Development Cycle in Manufacturing 11MARCH04 Develop the Initial Project Summary (IPS) Quick Goal Product Roadmap Key Selling Points Key Customers Proposed Team Business Case Recommendation to decision-makers Passion Goal = objective as best known to date. Estimated resources of time, money and schedule. Product roadmap = 1. where product fits in organizations product line and 2. where product fits in the world of similar products offered Key selling points = 4-5 main points that Marketing can leverage to promote the idea Key customers = known sales channels or possible business partners Proposed team = 8 members of the core team Business case = cost:benefit ratio, return on investment, engineering turns Recommendation = summary of how project would like to proceed through planning phase Decision-makers approve projects where the product champion shows genuine passion for the idea STEP 1 Product Development Cycle and Project Management Process NOTES PAGES

14 Process Step 2. Plan the work Phase 1
Product Development Cycle in Manufacturing 11MARCH04 Process Step 2. Plan the work Phase 1 Incorporate new organizational input Select the team Identify tasks Link deliverables to milestones Anticipate showstoppers Define tradeoffs Freeze the plan Many individuals believe this is where the Product Development Cycle begins But our earlier discussions clearly show that lots of work happens before now But as evidenced from our earlier discussions it clearly is well underway by the time that we begin planning the work 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES

15 Product Development Cycle in Manufacturing
11MARCH04 Consider new input Decision-makers typically set direction for the project at the Phase 0 exit review (quality, performance, schedule and cost) Meld those inputs into the IPS as you develop the project plan Oversight or ignoring organizational direction can be costly down the road Draw cost of engineering changes graph shown here STEP 2 Product Development Cycle and Project Management Process NOTES PAGES

16 Product Development Cycle and Project Management Process
Select the teams The core team may include 8 members The extended team contains as many members as needed to complete the work – BUT time, humans and money are never infinite resources CORE TEAM Research Quality Hardware Software Mechanical Manufacturing Marketing/Sales Finance STEP 2 Product Development Cycle and Project Management Process

17 Product Development Cycle and Project Management Process
Identify the tasks Break down the work into tasks for each project phase Assign owners Assign proposed due dates Set milestones and review dates Iterate to a potential plan STEP 2 Product Development Cycle and Project Management Process

18 Product Development Cycle in Manufacturing
11MARCH04 Link deliverables Match deliverables to milestones by phase. Plan for deliverables that are not tied to key milestones. What are some examples of key deliverables? New parts or components Module prototypes System prototypes Marketing collateral New test equipment and rework systems New manufacturing equipment or machines During the Prod Dev cycle – what are some deliverables? Just yell them out……. STEP 2 Product Development Cycle and Project Management Process NOTES PAGES

19 Product Development Cycle in Manufacturing
11MARCH04 Define tradeoffs Showstoppers need defined before finalizing the plan Establish tradeoffs to give the team clear direction should known risks develop This task avoids wasted time later in the project. It shows the decision-makers a team’s due diligence to project success For example: New technology is marginal to achieve ½ cycle operating time. Current leading edge is ¾ cycle. Then agree upfront at tradeoff at .6 cycle if ½ cycle cannot be reached. Greater than .6 cycle becomes a showstopper and requires a change plan. STEP 2 Product Development Cycle and Project Management Process NOTES PAGES

20 Product Development Cycle and Project Management Process
Freeze the plan Iterative Thorough Establish reporting structure Define project metrics - QPSC Set firm values Phase Schedules Cost Qualification date Production date Recommend a final plan for approval Roadmap STEP 2 Product Development Cycle and Project Management Process

21 Process Step 3. Work the plan Phases2-5
The team must report on progress and address any issues as the project unfolds. The concepts for Work the Plan include: Commit and deliver to plan Monitor and report metrics with data Discuss obstacles and engage stakeholders Communicate change Recommit and deliver to change 11MARCH04 Product Development Cycle and Project Management Process

22 Product Development Cycle in Manufacturing
11MARCH04 Commit and Deliver “Can do” attitudes ensure project success Cohesive teams produce a synergy STEP 3 Product Development Cycle and Project Management Process NOTES PAGES

23 Product Development Cycle in Manufacturing
11MARCH04 Report routinely Report project progress using data Communicate project status to all decision-makers and stakeholders with Quality, Performance, Cost and Schedule metrics Suggest recommendations when negative data identifies a need for change. Never report a problem without a recommended solution Quality = project status toward customer expectations Performance = product status toward the specification Schedule = project status towards its timelines Cost = project status toward planned costs STEP 3 Product Development Cycle and Project Management Process NOTES PAGES

24 Duplex Date: 11MAR04 Status Report: 04-123 Project Manager: Carson
GREEN RED Quality Performance Schedule Cost Year-to-Date Project Figures Project Start Date:10DEC04 Current Phase: Validation Original End Date: 2APR04 Current End Date: 27APR04 5MAY04 Project Budget: $_____ % Under Budget _____ Expected $$ Overrun ___ % Over Budget _____ Upcoming Activities UACT 1 UACT 2 UACT n Start Date Completed Activities CACT 1 CACT 2 CACT n Completion Date       Team Member Summary of current week’s activities Due Date Status Andersen Finalized the test fixtures for Proto3A Modified the test code for UL testing platform 20MAR04 24MAR04 Green Zeller Modified test fixtures for Proto4A Build self locking fixturing for Mfg Qualification tests 15MAR04 10MAR04 RED Issue Summary Action Owner Beryllium Copper late in arriving – due 12MAR Will work OT on 13-14MAR HILL 15MAR Comments: Low risk item: Mfg Engr has high confidence that Production tests will still meet schedule Duplex WEEKLY STATUS REPORT Product Development Cycle and Project Management Process

25 Discuss obstacles with stakeholders
Discuss the effects of any obstacle with every stakeholder and ensure understanding Engage all stakeholders to meet each one’s needs. Over-communicate to ensure concurrence with change plans Submit recommendations to decision-makers and stakeholders. Welcome comments and feedback on any change plans STEP 3 Product Development Cycle and Project Management Process

26 Product Development Cycle and Project Management Process
Cost of Changes HYPOTHETICAL Product Development Cycle and Project Management Process

27 Product Development Cycle and Project Management Process
Communicate change Never surprise anyone Over-communicate when change happens Ensure all decision-makers and stakeholders agree with any new tasks or plan changes STEP 3 Product Development Cycle and Project Management Process

28 Product Development Cycle and Project Management Process
Recommit and Deliver COMMIT Change plans get the scrutiny of many Recognize there may be lots of emotion around any change in plans. It’s the team’s responsibility to plan accordingly Emphasize commitment and delivery to the change plan. It may be more important than achieving the original plan. DELIVER COMMUNICATE STEP 3 Product Development Cycle and Project Management Process

29 Process Step 4. Learn from experience Phases 0-5
Professionals use well-documented events to reinforce good behaviors and discourage bad ones. Continuous improvement discipline demands everyone to learn from past experiences – shed the bad and share the good. 11MARCH04 Product Development Cycle and Project Management Process

30 Product Development Cycle and Project Management Process
Learn from experience Document events Train the positive Toss the negative Teach your world STEP 4 Product Development Cycle and Project Management Process

31 Product Development Cycle in Manufacturing
11MARCH04 Document events Every project experiences both positive and negative events Record all events using accurate data Ex 1. Hardware development exceeded its schedule by 2 weeks. The reasons expressed were 1) the lead had an emergency surgery and 2) no backup was available to step in for 3 days. Ex. 2. Mfg Tests were ready 2 weeks ahead of plan. In Phase 1 the manufacturing test group sent its test engineer for 2 days to work with the Mechanical and Hardware engineers to understand the test interface and fixture requirements. Test code was added to the firmware (cost = $1000) – this eliminated the need for a special equipment (cost = $40K!) CB ratio of 40… Ex 3. Production release is 3 weeks late. 2 primary factors are: 1) The work instructions and jig for building the new heat sink assembly were not completed on schedule and 2) The rework processes for the new power supply were incomplete when the power supplies failed the initial tests. STEP 4 Product Development Cycle and Project Management Process NOTES PAGES

32 Product Development Cycle in Manufacturing
11MARCH04 Toss the negative Every event during a project is an opportunity for improvement. Eliminate these events from practice by modifying processes and work instructions to prevent recurrence. Live the NMI discipline Use the NameIt-MeasureIt-ImproveIt Discipline: You cannot improve something unless you measure it You cannot measure something unless it’s a process If you have not identified your processes then you don’t know what your doing STEP 4 Product Development Cycle and Project Management Process NOTES PAGES

33 Product Development Cycle and Project Management Process
NMI Discipline NameIt: If a process is not defined the you do NOT know what to do MeasureIt: You cannot measure a process unless you have defined it ImproveIt: A process cannot be improved unless you can measure it STEP 4 Product Development Cycle and Project Management Process

34 Product Development Cycle and Project Management Process
Train the positive Every event during a project is an opportunity for improvement. Incorporate these events into practice by modifying processes and work instructions to ensure recurrence. Live the NMI discipline STEP 4 Product Development Cycle and Project Management Process

35 Teach your organization
Product Development Cycle in Manufacturing 11MARCH04 Teach your organization Both positive and negative experiences provide valuable insight to others. Proactively share the “Lessons Learned” across the organization. Educate others of possible benefits in other areas of the organization. Train - Toss -Teach Ex 1. (Obvious) Knowing that an early approval of a Mfg test plan cuts 2 weeks from the Qualification plan allows other core team members to finish a project faster which translates to less development costs. Ex 2. (Less obvious) Knowing that a test engineer working w Mechanical engr to develop the test platform early in the planning process cuts 2 weeks from the overall process may lead to someone in Business recognizing that having a cost accountant available early in the Marketing process can somehow shorten the cycle. STEP 4 Product Development Cycle and Project Management Process NOTES PAGES

36 Product Development Cycle in Manufacturing
Conclusions 11MARCH04 Process Steps Phase 0 Ideas Phase 1 Plan Phase 2 Develop Phase 3 Validate Phase 4 Qualify Phase 5 Produce 1 Develop Ideas 2 Plan the work 3 Work the Plan 4 Learn from positive and negative events Quick and with Passion Thorough Roadmap Commit Deliver Communicate Individuals learned about: today’s product development cycle practices in industry – note milestone at each phase gate process of project management in today’s world simple communication tools to efficiently communicate achievement and roadblocks Individuals recognize the value of effective project management skills in today’s product development cycle Train Toss Teach 11MARCH04 Product Development Cycle and Project Management Process NOTES PAGES


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