0630MSETMNPDSession3 by ga3Heb

VIEWS: 8 PAGES: 20

									       MSETM 5110 – New Product Development

Purpose

      Connectivity

                     Relevancy

                                 Application

Science: ―what is‖
Engineering: ―creating what has never been‖

                                               1
         MSETM 5110 – New Product Development

                          Recap of Session II
•   NPI Alignment to Business Strategy and Values
•   The Concept of Functional Maps (Power in the Process)
•   Portfolio Management
•   GE’s Two-Decade Transformation: Jack Welch’s Leadership
•   The Continuum (Checklist) Exercise
     – Linkage to Business Strategy
     – Metrics and Tools
     – Cross-functional Teaming
     – Discipline and Commitment
•   Finding Solutions in the Face of Constraints/Challenges
     – Capital/Budgets
     – People Resources
     – Market Dynamics
     – Return On Investment
     – Economic Fluctuation
                                                              2
        MSETM 5110 – New Product Development

   GE’s Two-Decade Transformation: Jack Welch’s Leadership
Jack Welch’s View On:
•    Inheriting GE From Predecessor
•    Product Exit Strategy
•    Workout (Town Meetings, Departmental Meetings)
•    Globalization
•    People Development
•    Compensation practices
•    Managers as Teachers, Coaches, Mentors
•    Promotion Practices (Values vs. Results)
•    Capturing Employee Ideas
•    Customer Focus (Increasing the Customer’s Intellect and
     Helping the Customer Win)
•    E-Business (Spans Employees, Suppliers, Customers)
•    People with Energy and People Who Can Energize Others
                                                               3
          MSETM 5110 – New Product Development
                               Why Do It?

•   Competitive Advantage/Staying Competitive
•   Short-term and Long-term Viability/Sustainability
•   Fund More Research
•   To Improve the Quality of Life
•   To Solve Technology-based Problems
•   New Platforms and Derivative Products
•   Improve Productivity and Efficiency
•   Protect Installed Base
•   Protect Customer’s Investment
•   Create Brand Loyalty
•   Vehicle for Strategic Partnership
•   Meet Stakeholders’ Expectations
     – Customers
     – Employees
     – Investors
•   Renewal and Transformation of the Organization
                                                        4
         MSETM 5110 – New Product Development

                 Successful Innovation Companies

•   Vision/Mission/Values
•   Alignment Around Value
•   People Systems Around Values
•   Organize for Success
•   Effective Integration and Communication
•   Clarity of Responsibility and Accountability
•   Focus on Results Thru Flawless Execution
•   Technology Platform Leader
     – Provide the Technological Foundation on Which Other
        Products Are Built
     – Interoperability
     – Encourage Other Companies to Develop and Build
        Complementary Innovations

                                                             5
        MSETM 5110 – New Product Development

            Successful Innovation Companies (cont’d.)

• Entrepreneurship/Intrapreneurship/‖Venture Capitalist‖
• Focus on Continuous Improvement
   – Marketing/customer Requirements and Expectations
   – Research, Design, and Development
   – Manufacturing and Provisioning
   – Strategic Suppliers
• Celebrate/Reward Success




                                                           6
        MSETM 5110 – New Product Development

           Developing a Radical New Innovation Agenda

• Continuous Reinvention (Transformation)
• Avoiding ―One-Vision‖ Wonders
• Harnessing the Imagination of Every Employee
• Developing New Financial Measures That Focus on Creating New
  Wealth
• Creating Vibrant Internal Markets for Ideas, Capital, and Talent




Reference: Gary Hamel, Leading the Revolution.

                                                                     7
      MSETM 5110 – New Product Development



 Applying Development Strategy and Resources to Stay
               Ahead of the Power Curve

Preemptive

                  Proactive

                                Maximum Value


                                                       8
            MSETM 5110 – New Product Development

                          The Continuum Exercise

              Poor                 Average           Flawless Execution
               0                      5                      10

                                  Checklist
• Are strategy and goals clearly defined, understood, communicated,
  aligned, executed?
• Is there a documented NPI process?
• Are there the right metrics around the process?
    – Time to market/development cycle (e.g., from concept to customer or from
      design freeze to ready-to-order)
    – Status vs. project schedule
    – Recovery plan in place
    – Quality and reliability
    – Change activity
    – Target cost
    – Percent revenue from new products                                      9
            MSETM 5110 – New Product Development

                     The Continuum Exercise (cont’d.)

             Poor                Average         Flawless Execution
              0                     5                    10

• Is there a mechanism to benchmark your organization vs. recognized
  best-in-class performance standards?
• Is there a mechanism to capture learnings from each introduction that can
  be used to improve project after project?
• Are the right tools available for project tracking?
• Is there effective integration and communication across the functional
  teams (design, mfg., marketing)?
• Are there the right skills on the team?
• Is there the right commitment and passion for flawless execution?


                                                                      10
        MSETM 5110 – New Product Development

                    Competitive Benchmarking

• The Search of Those Best Methods, Practices, and Processes That
  Will Lead to Superior Performance
• Pioneered by Xerox and Other Corporations in the Early 80’s
• Essentially Means Studying Major Competitors to Discover Their
  Strengths and Weaknesses
• Typically Looks at Design, Marketing, Manufacturing, Customer
  Support, Distribution, etc.
• Information Gathering Not Clandestine But Available in Public
  Financial Statements, Industry Analysis and Trade Journals
• There Is A Defined Benchmarking Process



                                                                11
          MSETM 5110 – New Product Development

                           Reasons for Benchmarking

 WITHOUT BENCHMARKING                        WITH BENCHMARKING

      Becoming Competitive

•Internally Focused                •Concrete Understanding of Competition

•Evolutionary Change               •New Ideas of Proven Practices/Technology

•Low Commitment                    •High Commitment

      Industry Best Practices

•Not Invented Here (NIH)           •Proactive Search for Change

•Few Solutions                     •Many Options

•Average of Industry Progress      •Business Practice Breakthrough

•Frantic Catch Up Activity         •Superior Performance


                                                                               12
           MSETM 5110 – New Product Development

                    Reasons for Benchmarking (cont’d.)

    WITHOUT BENCHMARKING                    WITH BENCHMARKING


   Defining Customer Requirements


•Based on History or Gut Feel         •Market Reality


•Perception                           •Objective Evaluation


•Low Fit                              •Higher Conformance




              Source: Robert C. Camp, Benchmarking.

                                                                13
        MSETM 5110 – New Product Development

            Key Metrics for World Class Manufacturer

• Manufacturing Cycle Time
• D:P Ratios (Determines Build to Order or Build to Stock)
• Setup Times
• Material Availability
• Material Velocity (Distance of Material Movement During
  Production)
• Machine Up-time
• Customer Service Time




                                                             14
        MSETM 5110 – New Product Development

                              Metrics

• Simple
• Actionable and Attainable
• Drive the Right Behavior

Assumptions:
• There Is A Defined Process/System
• There Is A Recognition That the Process/System Is Never the End
• There Is Commitment to Continuous Improvement of the
   Process/System
• Excellence Is Embraced As A Vision and Journey


                                                                    15
        MSETM 5110 – New Product Development

Maintaining Schedule Control
• Resource Commitment – Head Count, Fixed Costs, Expenses
• Pricing For Major Customers and Major Accounts
• Potential Slips in Major Milestone Dates (the executive sponsor
  wants early warning and recovery plans)
• Plans for the Transition from Development Project to Operating
  Status
• Thorough Reviews at Major Milestones or Every Three Months,
  Whichever Occurs Sooner
• Review of Incentive Rewards That Have Company-wide
  Implications for Consistency and Equity
• Cross-project Issues Such as Resource Optimization,
  Prioritization, and Balance

Source: Wheelwright and Clark, pg. 212

                                                                    16
        MSETM 5110 – New Product Development

Heavyweight Team Contract Book – Major Sections
• Executive Summary
• Business Plan and Purposes
• Development Plan
   – Schedule
   – Materials
   – Resources
• Product Design Plan
• Quality Plan
• Manufacturing Plan
• Project Deliverables
• Performance Measurement and Incentives

Source: Wheelwright and Clark, Exhibit 8-3

                                                  17
        MSETM 5110 – New Product Development

        Responsibilities of Heavyweight Core Team Members

Functional Hat Accountabilities:

• Ensuring Functional Expertise on the Project

• Representing the Functional Perspective on the Project

• Ensuring That Subobjectives Are Met That Depend on Their
  Function

• Ensuring That Functional Issues Impacting the Team Are Raised
  Proactively Within the Team

                                                                  18
        MSETM 5110 – New Product Development
   Responsibilities of Heavyweight Core Team Members (cont’d.)

Team Hat Accountabilities:
• Sharing Responsibility for Team Results
• Reconstituting Tasks and Content
• Establishing Reporting and Other Organizational Relationships
• Participating in Monitoring and Improving Team Performance
• Sharing Responsibility for Ensuring Effective Team Processes
• Examining Issues From an Executive Point of View (answering the
  question, ―Is this the appropriate business response for the
  company?‖)
• Understanding, Recognizing, and Responsibly Challenging the
  Boundaries of the Project and Team Process

Source: Wheelwright and Clark, Exhibit 8-5
                                                                 19
         MSETM 5110 – New Product Development

                            Assignment 1


Case Study 1 (HBR 9697052) – Living on Internet Time: Product
     Development at Netscape, Yahoo!™, NetDynamics, and
     Microsoft®

In approximately 400 words, (a) compare and contrast the
     development philosophy, process and culture at Netscape,
     Yahoo!, NetDynamics, and Microsoft; and (b) rank the
     companies (1 through 4) in terms of year-over-year growth (e.g.
     market share, revenue, profitability, dividends, etc.) since the
     early and mid-90’s—the time frame in the case study.

DUE DATE: Friday, July 12, 2002

                                                                    20

								
To top