Transcript Slide 1

Product
Development
Process
Murray MacDonald, P.Eng.
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ACDONALD CONSULTING
Copyright © 2010 Murray MacDonald
Necessity of Product Development
• New products are typically highly profitable
– study1 indicates median ROI of 33%, avg of 96%
• Product life cycles are shrinking
– study2 indicates 4 x reduction in 50 years
• Competitive pressures
• Customer expectations
“New Products is War”
1 Cooper & Kleinschmidt
2 A.D. Little
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Product Development Performance
• One in 7 concepts are a commerial success 1
• One in 4 developed products are successful 1
• The “Best” companies have ~50% of sales 2
from new products (<5 years old)
– The “rest” have 25% new products
• Estimated 46% of resources spent on failures 3
How to be more successful?
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1 A.L. Page
2 A. Griffin
3 PDMA survey
Product Development Performance
(Reasons for New Product Failures)
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Poor Market Analysis
Technical Problems or Cost
Insufficient Marketing Effort
% of Failures
Poor Timing
Market Analysis
Technical or Cost
Marketing Effort
Timing
0
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10
20
30
40
Successful Product Development
• Doing the project right
• Doing the right projects
• Based on numerous historical studies
Stanford Innovation Project
Booz-Allen & Hamilton
Song, Montoya-Weiss & Schmidt
Cooper & Kleinschmidt
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New Product Process Goals
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Quality of Execution
Sharper Focus, Better Prioritization
Management of Risk
Fast-Paced Parallel Processing
Cross Functional Team Approach
Strong Market Orientation (voice of the customer)
Better Homework Up-Front
Products with Competitive Advantage
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Stage-GateTM Process
Gate
1
Stage 1
Scoping
Gate
2
Stage 2
Bus. Case
Gate
3
Kill
Stage 3
Development
Gate
4
Stage 4
Testing
Gate
5
Stage 5
Launch
Annual?
Post Launch
Review(s)
TM RG Cooper & Associates
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Stage-GateTM – Gating
• Defined Gate Keepers (variable per gate?)
– with criteria for decision making
• Concise and visible Deliverables
– focus on information for decision making
• Outputs: 1) Decision – Go/Recycle/Hold/Kill
2) Approved plan for next stage
3) Agreed deliverables for next stage
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Stage-GateTM – Risk Mgmt
• Rule # 1 If uncertainty is high, keep stakes low
• Rule # 2 Raise stakes as uncertainty reduces
Uncertainty
Uncertainty
Stakes
Idea
Launch
Stakes
Idea
?
Launch
• Give conditional approvals
– additional reviews, more planning
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Stage-GateTM - Implementation
• Senior management commitment
• Team for design and implementation
– audit exiting, benchmark others
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Training & communication
Metrics – visible, score card
IT support
Process Manager
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Stage-GateTM – Picking Winners
• Recognize prioritization is a weak area
– avoid “favourites”, be objective
• Tough decisions based on consistent measures
– benefits, portfolio management, financial model
– Use scoring or checklist – formal record
Project ABC - XYZ
Criteria A
Criteria B
Criteria C
Criteria D
Criteria E
Criteria F
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Stage 3 – Development & Validation
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Clear project definition, expectations
Quality of execution, records for verification
Prioritize and focus
Plan work, then work the plan
Parallel activities - concurrent engineering
– involving Marketing, Manufacturing, Quality,...
• Customer testing or involvement
- prototype vs production
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Product Development Portfolio
(Product/Technology Strategy)
• Need project mix of risk/resoucre/complexity
New
Technology
or Risk
Existing
Feature
Updates
Derivatives
New
Platforms
Restructuring
Simpler
Complex
• Need long term strategy or road map
– with reviews (annual?)
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Stage-GateTM Variations
• Evolution to 3rd and 4th generation S-G
• Scaling process to match risks – Express/Lite
FuzzyGates – conditional decisions
• Fuzzy
– with planned follow up(s)
– facilitates Concurrent Engineering
• Incorporate Technology Development
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Stage-GateTM Variations
Full Stage-Gate
Gate
1
Stage 1/2
Bus. Case
Gate
3
Stage 3/4
Dev.&Test
Gate
5
Stage 5
Launch
Post Launch
Review(s)
Stage-Gate Express
Stage-Gate Lite
Stage 1/2
Bus. Case
Gate
3
Stage 3/4/5
Dev.&Launch
Post Launch
Review(s)
TM RG Cooper & Associates
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Stage-GateTM Variations
Gate
1
Stage 1
Scoping
Gate
2
Stage 2
Assessment
• Technology Development
Gate
3
Stage 3
Detailed
Investigation
Gate
4
To New Product Gate 2
(sometimes Gate 1 or 3)
– fundamental science or technology platform
• Criteria more strategic than financial
• Typically spawns multiple commercial projects
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Concurrent Engineering
• Paralleling activities
• Multidisciplinary teams
• Requires:
-Stable requirements
-Communications
-Planning
• Better Products in Shorter Cycletimes
More New Products
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Concurrent Engineering - Changes
Cost of Changes (%)
Concept Development Validation Production
1 Hawtal Whiting Inc.
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Activity
Concurrent Engineering
Product Planning
Eng’g – Feasibility
Historical Western
Engineering – Design
Testing – New
Testing - Validation
Activity – Feasibility
Manuf’g
Product-Planning
Manuf’g
Tooling
Eng’g – Feasibility
Engineering – Design
Testing – New
Testing - Validation
Manuf’g – Feasibility
Manuf’g - Tooling
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Concurrent
or Japanese
Product Development Tools
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Risk Assessment – formal document/checklist
Failure Modes & Effect Analysis (FMEA)
Quality Function Deployment (QFD)
Planning - MS Project
Tolerance Analysis
Test Plans – Functional & Stress
Failure Analysis
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Risk Assessment
• Risk is inevitable - the price of innovation
• Identify Measure Assess Mitigate
• Manage through the Stage-Gate process
– use an assessment tool
– reassess at each gate – looking for reductions
• Part of Process Reporting
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Risk Assessment
Risk Element
Value
Confidence
Risk
Plan? Mitigation Plan Comments
Availability of Technology
1....10
1....4
VxC
Y/N
Supply Issues
Time Scales
Manufacturing Capability
Capital Requirement
Market/Customers
Competitive Conditions
Customer Commitment
Pipeline (#,type)
Patents/Legal Issues
Total Weighted Risk
Sum (VxC)
from RELTEC Corporation
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Failure Mode & Effect Analysis-FMEA
• Identify potential sources of failure
• Assess Probability, Severity and Detection
• Calculate Criticality or RPN (Risk Priority Number)
= P x S x D (each with value 1 to 10)
• Determine Action Plan as needed
• Follow up on impact of Actions (if any)
– as part of Gating decisions
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Failure Mode & Effect AnalysisFMEA
Failure Mode and Effects Analysis Worksheet
Facility:LLS
Prod.TR1 Cabinet
Description/PN:F787720
FMEA: Design/Process
CAN00524P Document #:FMEA-R01
Team Members:
x
x
x
x
x
Date(Orig):
x
x
x
Date(Rev):
Facilities
Affected:LLS
Design
Responsibility:
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Action
Taken
0
Detection
R
P
N
Person
Responsible
Occurrence
Design
Verification
(Control)
Resulting Conditions:
Recommended
Actions/Status
Severity
Potential
Cause
of
Failure
Detection
Potential
Effect(s)
of
Failure
0
Occurrence
Potential
Failure
Mode
Severity
Existing Conditions:
Item
and
Function
R
P
N
0
0
0
0
0
0
0
0
0
0
0
0
0
0
from Emerson Network Power
Project Planning (MS Project)
• Five “Ps” – Planning Prevents P... Poor Performance!
• Using shared tool – across departments
– possibly customers and suppliers
– MS Project or other PDM
• Early focus on “high level” and “flesh out” later
– Add detail at each gate for next stage
• Tracking and reporting (for Gates)
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Tolerance Analysis
• Review of tolerance accumulation/buildup
• Using one of: - critical only
- sub system levels
- computerized – statistical
• Remedial
- tighter tolerances
- refined process
- design change
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Tolerance Analysis
Total tolerances ~ +/- 1.25
+/-0.35
+/-0.35
+/-0.10
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2 x 4.00 d +/-0.05
Tolerance Analysis
Differential Amplifier
R1a +/- %err
R2a
Vi
1 mV ~
Vo = R1/R2 Vi
+ ~4 x %err Vcom
R2b
R1b
Vcom
1V ~
for R1/R2 = 100 ,
Vo = 100mV +
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Rerr = 1%
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0.1%
4mV
0.01%
0.4mV
Testing Plans
• Need a Plan – detailed
– Reflecting FMEA and Design Reviews input
• Stress
- Abnormal operation
- Temperature (accelerated life)
- Vibration
- Stability
• Failure Analysis
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Quality Systems – ISO 9004
• Document what you do – formal system
Do what you document - auditable
• Focus on deliverables and records from Gates
• Reflect
Continuous Improvement
• Retain flexibility (using Express/Lite & Gates)
• Document retention system
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Continuous Improvement
• On agenda of an effective Post Launch Review
• Create a knowledgebase
– and foster design reuse
• Add teeth to Gates and design reviews
• Refine process and deliverables
Plan
Do
Adjust
Review
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Summary
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Formal Stage-Gate New Product Process
Effective Gates – with teeth
Flexible – process variations, Fuzzy gates
Shared tools – using IT
Evolve process – continuous improvement
Winning at New Products - Accelerating the Process from Idea to
Launch by Robert G. Cooper
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(www.stage-gate.com)
Q&A
Product Development Process
Murray MacDonald, P.Eng.
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ACDONALD CONSULTING