Week 1 MT5006/IE5211 Jim White Stage Gate • • • • Mid to Large Size companies Large, Global Teams Complex Products/Services Pipeline Management Lean NPI • • • • Start‐ups Entrepreneurs Less Complex Products/Services Single Project Agile • • • • Any size Small, Co‐located Teams Software Pipeline Management Sector Food Textiles Pharmaceutical Plastics and Rubber Products Communications Equipment Semiconductor Electrical and Appliances Motor Vehicles Aerospace Software Publishers Telecom Services Finance and Insurance Health Care Serv ices Global Sales R&D Spend R&D Spend (billions) (billions) (% to Sales) $463 $169 $529 $264 $132 $192 $172 $776 $457 $317 $501 $435 $30 $4 $1 $69 $3 $14 $28 $4 $38 $12 $35 $9 $1 $1 0.86% 0.59% 13.04% 1.14% 10.61% 14.58% 2.33% 4.90% 2.63% 11.04% 1.80% 0.23% 3.33% Global R&D Spend $1.5 Trillion Globally (2013) 2% of GWP $71.8 Trillion Winning at New Products, R G Cooper Winning at New Products, R G Cooper Effectiveness = Sales from New Products/R&D Spend Winning at New Products, R G Cooper Hardware Service Startup Enterprise Anyone that wants a profitable, timely new product launch!!! Business Leverage Many Quality Problems are Designed In Greatest Impact of Product Quality/Cost is During Design Manufacturing Defects Way of doing business Designed‐In Quality/Cost Issues Eliminate the problem before it is created. Performance (VOC) Tolerances Natural (VOP) Tolerances LSL Level of Product Robustness LCL USL Cp = Comes from Great Marketing…. y ‐ LSL 6 VOP What the customer wants UCL USL = 2 Comes from Great Engineering… What company will deliver VOC VOP = Voice of the Physics within the Product or Mfg. Process Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch A well defined, but flexible process for moving new products through the pipeline Intended to be multi‐functional Improve both effectiveness and efficiency in NPI Provides a set of deliverables and tasks at each stage Requires decision making to move ahead A Process to Manage Risk “Winning at New Products” Robert Cooper Design Thinking Business Plan Idea Concept Ideas Feasibility Dev’t Concepts Scale Up Launch Product Post‐ Launch Radical Breakthrough Platform Incremental Deliverables Tasks will address a deliverable Tools make gathering information more quantitative and credible Task 1 Tool 1 Task 2 Tool 2 Tool 3 Tools are a quantitative way to gather and analyze information ◦ Examples: SWOT, QFD, Pugh Analysis ◦ ALWAYS GIGO! You are the architect for your project and product ◦ You decide which tools you will need to make critical decisions ◦ No two projects are the same and your experience will help to guide your team to success by knowing what needs to be done Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Begin with the product or service idea Identify market potential for new product or service ideas. Gather Voice of Market (VOM) input and identify attractive market segments. Evaluate the market opportunity against strategic direction and financial objectives. Initial alignment with technologies or product ideas Know Your Market! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Gather customer needs, Voice of Customer (VOC) Translate into product/service requirements. Develop and evaluate multiple product and/or service concepts. Identify the superior concepts. Generate a preliminary business opportunity assessment. What Problem are you Solving! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Select the best concept and identify the technical solution. Demonstrate that the solution is stable when stressed with nominal noise. Validate that the solution meets the customer requirements. Quantify the value proposition for the solution with the customer. Develop the business case for the project. Value Proposition!!! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Develop a robust product/service that is optimized to customer requirements (Design for Six Sigma). Field test the product to validate customer acceptance Develop a marketing plan to maximize the value proposition. Verify product capability at bench top or pilot plant against the customer tolerances. Refine the manufacturing plan in preparation of scale up. Start Spending Money! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Optimize the process in the targeted manufacturing site Demonstrate long term capability. Finalize product responsibility items and regulatory clearances. Finalize the Marketing plan (including launch plan) Finalize Manufacturing plan (including supply chain plan) Validate the business plan with test market It’s Hard to Turn Back Now! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Execute the launch plans (e.g. train sales staff, build inventory, prepare marketing collateral, etc.) Demonstrate control of the Manufacturing and Sales & Marketing control plans. Review project, compare actual with projected results Identify product improvement opportunities. Develop the hand‐off plan to transition the new product into ongoing business operations. The Handoff! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Verify business opportunity is being achieved Manage product value chain for maximum return Use the control plans developed in Launch Use Lean Six Sigma tools for continuous improvement Gather customer feedback to identify opportunities for new products. The Payoff! Idea Concept Feasibility Dev’t Scale Up Launch Post‐ Launch Manage risk insuring deliverables meet objectives NPI phase objectives & deliverables create the template for each gate review Make a data driven Decision! ◦ Go, NO‐GO, Go Back Pass Conditional Pass Low Risk Moderate Risk Gate Review Don’t Pass Kill High Risk High Risk Very Often Executives, Key Stakeholders, VCs Gatekeepers ask: ◦ Did the work done provide the information necessary to assess the risk for this phase? ◦ Is the data believable and does it support moving onto the next phase? ◦ Is there additional work necessary to complete the risk assessment at this phase? ◦ Is the project still strategic? ◦ Is there a good plan for the next phase? ◦ Is it resourced? “Know when to hold ‘em, know when to fold ‘em”
