1. Building Competencies Through
New Product Development :
Lecture by:
by:
Djadja.Sardjana@gmail.com
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2. Building Competencies Through
New Product Development :
Creating Project Plans to
Focus Product Development
Best Practice
3m36
Definition, Scope and
Perspective
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3. Product Development Definition
The term used to describe the complete
process of bringing a new product or
service to market.
There are two parallel paths involved in the
PD process:
one involves the idea generation,
product design, and detail engineering;
the other involves market research and
marketing analysis.
Companies typically see new product
development as the first stage in generating
and commercializing new products within
the overall strategic process of product life
cycle management used to maintain or
grow their market share.
Source: http://en.wikipedia.org/wiki/New_product_development
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4. Project Plan Definition
A project plan, according to the Project Management Body of
Knowledge, is
A formal, approved document used to guide both project execution
and project control.
The primary uses of the project plan are to document planning
assumptions and decisions, facilitate communication among
stakeholders, and document approved scope, cost, and schedule
baselines.
A project plan may be summarized or detailed.
Source: http://en.wikipedia.org/wiki/Project_plan
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5. Need of Aggregate Project Plan
The long-term development of any
long-
manufacturing company depends ultimately on
the success of its product development
capabilities.
Often problems arise from the way companies
approach the development process because
they lack aggregate project plan.
plan.
In mid-1989, senior management of PreQuip, a
mid- PreQuip,
large scientific instruments company, became
alarmed about a rash of late product
development projects.
For some months, the development budget had
been rising even as the number of completed
projects declined.
There were 30 projects under way - far more
than anticipated and far more than the
organization can support.
There was lack of project focus.

6. Bad quick-fixes
quick-
When a project ran into trouble,
engineers from other projects were
reassigned or, more commonly,
asked to add the crisis project to
their already long list of active
projects. The more projects they
added, the more productivity
dropped.
The reshuffling caused delays in
other projects, and the effects
cascaded.
As deadlines slipped and
development costs rose, project
managers faced pressure to cut
corners and compromise quality
just to keep their projects
moving forward.

7. Individual projects vs set of projects
In most organizations, a management directs all its
attention to individual projects - it micromanages project
development.
But no single project defines a company’s future or its
market growth over time; the set of projects does.
Most companies, including PreQuip should start the
reformation process by eliminating or postponing the
lion’s share of their existing projects, eventually
supplanting them with new set of projects that fits the
business strategy and capacity constraints.
The aggregate project plan provides a framework for
addressing this difficult task.

8. Project types
Derivative projects
Breakthrough
projects
Platform projects
R&D projects
Alliances and
partnerships

9. Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review
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10. The Chaos 30 project plan distribute randomly
Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review
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11. Using an aggregate project plan, reduced the number projects to 11
Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review
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12. Building Competencies Through
New Product Development :
Creating Project Plans to
Focus Product Development
BMW
1m05
Product Development KPI
and Best Practice
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13. Some Characteristics
One can succeed and fail.
Project management success is subordinate to product
success. Project management success influences
product success.
Success has “hard” and “soft” dimensions.
Success is perceived.
Success criteria must be prioritized.
Success is affected by time.
Success is not always manageable.
Success may be partial.

14. Project Success
Project success is a topic that is frequently
discussed and yet rarely agreed upon. The
concept of project success has remained
ambiguously defined. It is a concept which
can mean so much to so many different
people because of varying perceptions,
and leads to disagreements about whether
a project is successful or not.

15. Two Components of Project Success
Project management success
This focuses upon the project process and, in
particular, the successful accomplishment of
cost, time, and quality objectives. It also
considers the manner in which the project
management process was conducted.
Product success
This deals with the effects of the project’s final
product.

16. Product Success
Meeting the project owner’s strategic organizational
objectives (project goal)
Satisfaction of users’ needs (project purpose)
Satisfaction of stakeholders’ needs where they relate to
the product.

17. IMPROVING PRODUCT
DEVELOPMENT
How well are we Requirements Empowerment
definition
doing? What improvements Solids
are needed? Where do we Product modeling
planning Integrated
start? Should we product
benchmark? teams Design
Early re-use
involvement
Product data
MCAD management
Design for
manufacturability Resource Top-down
management design
Configuration
management Early supplier
involvement QFD
Project
CAE planning Analysis &
simulation

18. BEST PRACTICE SOURCES
Company
Visits
Workshops Technology
& Meetings Vendors
BMP
Conferences
Program
BEST
PRACTICES
Literature Corporate
Review Handbooks
Panel of Telephone
Experts Discussions
Consulting
Experience

19. DEVELOPING AN IMPROVEMENT PLAN
CURRENT BEST PRACTICES
SITUATION GAP
IMPROVEMENT
PLAN What’s possible
Product Business
Development Strategy
Assessment (Strategic
What the What’s Levers)
weaknesses important
are
1. Assess current 3. Develop a 2. Determine
situation plan to close priorities based on
strategy & Best
gap
Practices

20. PRODUCT DEVELOPMENT
STRATEGIES
An organization cannot do everything superbly. It
must focus on only one or two strategic objectives
and be competent in the other areas.
Product Development Strategic Objectives:
• Time to market /development schedule
• Low development cost
• Low product cost
• High product innovation and performance
• Quality, reliability and dependability (robustness)
• Service, responsiveness & flexibility to respond
to new product opportunities & markets

21. EVALUATION FRAMEWORK
Database to compare company performance against
Company
Performance
Industry
Performance Best
Database Practice
0 Performance Evaluation 10

22. DEVELOPING THE ACTION PLAN
GAP - INTENDED VS. IMPLIED STRATEGY
6
5
4
3
2
1
1. Identify performance gaps relative
to categories
-3 -2 -1 0 1 2
GAP
Plan 2. Identify strategy gaps and
Task 1
associated practices
Task 2
Task 3 3. Examine individual practices with
Task 4 low performance & high
importance in large gap
Assessment Category
Assessment
Weight
Company
Weight Effectiveness
BEST PRACTICES GAP
categories & strategies
Business & Product Strategy 0.5 1 3.2
Product & Pipeline Management 1 1 3.7
Technology Management 0.75 1 2.8
4. Look for logical relationships &
Management Leadership 1 1 4.5
Early Involvement 1 1 5.1
Product Development Teams 1.5 1 5.3
Organizational Environment 1 1 6.4
Process Management 1 1 3.4
precedence among practices
Process Improvement 0.75 1 3.3
Understanding the Customer 1 1 3.9
Requirements & Specifications Mgt. 1.5 1 3.4
Development Process Integration 1 1 5.0
Supplier/Subcontractor Integration 1 1 4.7
Product Launch 1 1 5.1
Configuration Management 1 1 6.8
Design Assurance 0.75 1 6.6
Project & Resource Management 1.25 1 3.5
Design for Manufacturability
Product Cost Management
Robust Design
Integrated Test Design & Program
1
1
1
0.75
1
1
1
1
4.4
4.2
5.7
6.1
5. Develop the action plan & gain
Design for Operation & Support 0.75 1 4.7
Product Data
Design Automation
Simulation and Analysis
Computer-Aided Manufacturing
1.25
1.25
1
0.75
1
1
1
1
3.5
5.2
3.8
4.6
consensus to the plan
Collaborative Tools & Technology 0.75 1 2.9
Knowledge Management 0.5 1 4.2
0 2 4 6 8 10 12
Weighted Total 4.5
Bigger gap indicates greater improvement opportunity

23. Building Competencies Through
New Product Development :
Creating Project Plans to
Focus Product Development
Project Plan
6m38
Work The Plan, Plan The Work
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24. Project planning
Probably the most time-consuming project
time-
management activity.
Continuous activity from initial concept through
to system delivery. Plans must be regularly
revised as new information becomes available.
Various different types of plan may be
developed to support the main software project
plan that is concerned with schedule and
budget.

25. Project planning process
Establish the project constraints
Make initial assessments of the project parameters
Define project milestones and deliverables
while project has not been completed or cancelled loop
Draw up project schedule
Initiate activities according to schedule
Wait ( for a while )
Review project progress
Revise estimates of project parameters
Update the project schedule
Re-negotiate project constraints and deliverables
if ( problems arise ) then
Initiate technical review and possible revision
end if
end loop

26. The project plan
The project plan sets out:
The resources available to the project;
The work breakdown;
A schedule for the work.

27. Project plan structure
Introduction.
Project organisation.
Risk analysis.
Hardware and software resource
requirements.
Work breakdown.
Project schedule.
Monitoring and reporting mechanisms.

28. Project Plan Estimation
Establish Estimates
Establish
Determine
Estimate the Scope Estimates of Work Define Project
Estimates of Effort
of the Project Product and Task Lifecycle
and Cost
Attributes
Source: Gestão da Qualidade – MIEIC – FEUP
28

29. Project Plan Specific Goals,
Practices and Activities
Develop a Project Plan
Plan for
Establish the Plan for Plan for Plan
Identify Needed Establish the
Budget and DataManage Project Stakeholder
ProjectRisks Knowledge Project Plan
Schedule ment Resources Involvement
and Skills
Source: Gestão da Qualidade – MIEIC – FEUP
29

30. Project Plan Commitment
Obtain Commitment to the Plan
Review Plans That Affect Reconcile Work and
Obtain Plan Commitment
the Project Resource Levels
Source: Gestão da Qualidade – MIEIC – FEUP
30

31. Define project
Decide which
Work to types as either
specific
improve breakthrough,
projects to 7 8 platform,
pursue development
derivative, R&D, or
capabilities
partnered projects
1
6
Estimate the
number of
Eight Steps Identify
existing
2 projects and
projects that
existing
resources can
of aggregate classify by
project type
support
5 project plan
3
Determine the Estimate the
desired mix of 4
average time
projects Identify existing
and resources
resource capacity
needed
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Source: Steven C. Wheelwright and Kim B. Clark - Harvard Business Review

32. Building Competencies Through
New Product Development :
Creating Project Plans to
Focus Product Development
Listen to
Customer
2m11
Conclusion & Final Words
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