Speed Based Development for Customers
Kurt Swogger, R&D VP, Plastics
Simon Lee, Project Leader, R&D Center China
The Dow Chemical Company
May 28th, 2005
Page 1
Business is a Balance
• Plastics Expresses This Balance With This Strategy Statement
Sell Out The Capacity
Sell Up – Higher Value Applications
Change – New Markets and Businesses
To Make More Money
Page 2
PO&E “Portfolio”
1991
(5 Billion Pounds)
2003
(20 Billion Pounds)
PO&E “Portfolio”
Slurry Polyethylene (PE)
Solution PE
LDPE
BASICS
• Gas Phase PE
• Polypropylene
• TYRIN2 CPE
• Slurry PE
• Solution PE
• LDPE
4
DIFFERENTIATED BASICS
DOWLEX* PE
TYRIN2 CPE
• INSPIRE* HMS performance
polymers
• DOWLEX* PE
• ELITE* enhancing PE
• PET
• Wire and Cable
4
SPECIALITIES
• ENGAGE* elastomers
• NORDEL IP2 elastomers
SARAN resins and films
PRIMACOR* copolymers
•
2
NORDEL MG
elastomers4
• AFFINITY* polyolefin plastomers
• DOW XLA* elastic fibers
• SARAN resins & films
DEVELOPMENTAL PRODUCTS
VECTOR styrenic
block copolymers3
• Propylene-based
plastomers and elastomers
• INSPIRE* HST
performance polymers
*Trademark of The Dow Chemical Company
2
DuPont Dow Elastomers
•
•
•
•
ADC Elastic Nonwoven
Wax
High Temp. Resins
NG Elastic Fibers
3Partnership
with Exxon
4Acquisitions
from UCC
Page 3
Awards
Outstanding Corporate Innovator (OCI) Award
• Presented by the Product Development &
Management Association (PDMA) in
October 2003 to the PO&E business
at Dow
• Provides global recognition for companies
exemplifying the spirit of innovation and
demonstrating sustained excellence in
the development and profitable
commercialization of new products
and services
Page 4
What Are the Major Factors to Achieve
These Results?
•
INSITE* technology
• Speed-Based Development
*Trademark of The Dow Chemical Company
Page 5
What Does Speed Require?
• Leadership who understands, uses and continually improves the principles
and their implementation
• People using good judgment: who apply the principles of speed to best meet
the needs of a specific project or situation
• Flexibility: This is NOT a formal work process, but was founded on
experiences of a small core of successful development people
• Integration: many principles of this concept are not new, but the power of
their integration and execution is a new concept
• Dow Values: Dow’s values of safety, ethics, environmental responsibility are
used
• A Business Approach, not a functional approach
• Accountability for Results
Page 6
What Does Speed Require?
(Cont’d)
• New Concepts: Some principles, however, are relatively new to
our industry – such as:
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Selecting the right people with the right aptitude
Using parallel processes
Linkage of business strategy to individual goals
Using science to develop model-based data storage and use
Flexible allocation of resources
Page 7
Theme #1: Right Leadership
Right Leadership
Principles
• Leadership must lead
• Create and sell a vision that delivers
Page 8
Theme #2: The Right People
Right People
Principles
• Choose the right people for development
• Use scientist / manager partnership to lead
development
• Use flexible allocation of resources
Page 9
Theme #3: Do The Right Projects
•
•
•
•
Right Projects
Principles
Link business strategy to individual results
Involve marketing early
Use Net Present Value (NPV) to help
select projects
Use marketing to position the product
Page 10
Theme #4: Find The Right Information
Right Information
Principles
• Use science
• Involve customers early
• Use outside experts, consultants or info
• Continue to learn
• Use performance requirements
for application development
• Use intellectual capital
• Use prior experience
to avoid mistakes
Page 11
Theme #5: Right Execution-Achieving Results
Right Execution
Principles
• Use Six Sigma methodology
• Make and deliver commitments
• Emphasize decision making
• Use a parallel process
Page 12
Summary - Speed Based Development
• Philosophy is useful for both existing and new businesses
• Philosophy is useful for product, developments, process
and applications
• It’s all about getting the right results
Page 13