The Product Development

Cycle in Today’s Manufacturing

OVERVIEW
1. Explain the product development cycle
2. Define project management processes
3. Relate #1 and #2
4. Discuss the tasks behind each process
5. Suggest simple communication tools
Bob Carson
March 11, 2004

11MARCH04 Product Development Cycle and Project

Management Process
 Expected Outcomes

 Individuals will understand:

 product development in today’s industry
 processes of project management

 value of simple communication

 Individuals will recognize the value of

effective project management skills in today’s
product development cycle

11MARCH04 Product Development Cycle and Project 2

Management Process
 Common Definitions
 Product Development Cycle: the period of time
needed to complete the set of events that
develops an idea into a quality product
 Process: the ordered set of events required to
achieve a quality result and ensure robust,
repeatable results
 Project: the organization of the team’s
commitment to deliver a product
 Project Management: the control of team
behaviors across the Product Development Cycle

11MARCH04 Product Development Cycle and 3

Project Management Process
Motivation
• Engineers should learn about today’s
development practices

• An engineer’s skill set should

parallel industry’s expectations

• Efficient individuals develop

effective project management skills

11MARCH04 Product Development Cycle 4

and Project Management P
rocess
 Phases of the Product
Development Cycle
 Phase 0 - Generate Idea
 Phase 1 - Plan
 Phase 2 - Develop
 Phase 3 - Validate
 Phase 4 - Qualify
 Phase 5 - Produce

11MARCH04 Product Development Cycle and Project 5

Management Process
 Product Development Phases
Phase 0 1 2 3 4 5
Sell Ideas Plan Develop Validate Qualify Produce

Goal Generate Develop Advance Proof of Proof of Robust

many Plan idea to specs build process
ideas product
Process Develop Plan the Engineer Test Build & Release
Ideas into work for Functional Proto Test Pilot Product
Proposal the Team Models units units to Sell
Main Initial Gantt Working Solid Working Quality
Artifact Project Chart Modules & System Product Product
Summary Prototypes Proto

Owner Project Core Extended or Core Team Member

Champion Team

11MARCH04 Product Development Cycle and 6

Project Management Process
 Project Management Process Steps
1. Present an idea
2. Plan the work
3. Work the plan
4. Learn from experiences

11MARCH04 Product Development Cycle and Project 7

Management Process
 Process–Phase Relationship
Project Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Mgmt Ideas Plan Develop Validate Qualify Produce
Process
Steps
1 Develop
Ideas
2 Plan the
work
3 Work the Plan
4 Learn from positive and negative events

11MARCH04 Product Development Cycle and 8

Project Management Process
Process Step 1. Present an Idea
Phase 0
• Collect ideas
• Consider customers
• Know stakeholders
• Write proposal (Initial Project Summary)

QUICK

11MARCH04 Product Development Cycle and 9

Project Management Process
Ideas come from Many Sources
• Customer wants
• Customer needs
• Competitor products
• Competitor plans
• Marketing/sales logs
• Organizational strategies
• Society attitudes and opinions

STEP 1 Product Development Cycle and 10

Project Management Process
Consider All Customers

• External customers buy products that

provide the lifeblood for the organization
• Internal customers have objectives linked
to products that meet organizational goals
• Business partners help develop products
to further everyone’s organizational goals
• Carefully consider each customer need

STEP 1 Product Development Cycle and 11

Project Management Process
Know all Stakeholder Agendas

• Understand all external customer plans

• Check alignment of the idea with the
current organizational strategies
• Solicit input from all internal customers
and provide continuous feedback
• Uncover any hidden agendas through
open conversations and discussions

STEP 1 Product Development Cycle and 12

Project Management Process
 Develop the Initial Project
Summary (IPS)

Quick
Goal
 Product Roadmap
 Key Selling Points
 Key Customers
 Proposed Team
 Business Case
 Recommendation to decision-makers

STEP 1 Product Development Cycle and 13

Project Management Process
Process Step 2. Plan the work
Phase 1
Incorporate new organizational input
Select the team
Identify tasks
Link deliverables to milestones
Anticipate showstoppers
Define tradeoffs
Freeze the plan

11MARCH04 Product Development Cycle and Project 14

Management Process
 Consider new input
Decision-makers typically set direction for
the project at the Phase 0 exit review
(quality, performance, schedule and cost)
Meld those inputs into the IPS as you
develop the project plan
Oversight or ignoring organizational
direction can be costly down the road

STEP 2 Product Development Cycle and Project 15

Management Process
 Select the teams
The core team may CORE TEAM
include 8 members – Research
The extended team – Quality
contains as many – Hardware
members as needed – Software
to complete the work – Mechanical
– BUT time, humans – Manufacturing
and money are never – Marketing/Sales
infinite resources – Finance

STEP 2 Product Development Cycle and Project 16

Management Process
 Identify the tasks
Break down the work into tasks for each
project phase
Assign owners
Assign proposed due dates
Set milestones and review dates
Iterate to a potential plan

STEP 2 Product Development Cycle and Project 17

Management Process
 Link deliverables
Match deliverables to milestones by phase.
Plan for deliverables that are not tied to key
milestones. What are some examples of key
deliverables?
– New parts or components
– Module prototypes
– System prototypes
– Marketing collateral
– New test equipment and rework systems
– New manufacturing equipment or machines

STEP 2 Product Development Cycle and Project 18

Management Process
 Define tradeoffs
Showstoppers need defined before
finalizing the plan
Establish tradeoffs to give the team clear
direction should known risks develop
This task avoids wasted time later in the
project. It shows the decision-makers a
team’s due diligence to project success

STEP 2 Product Development Cycle and Project 19

Management Process
 Freeze the plan
Establish reporting structure
Define project metrics - QPSC
Set firm values
– Phase Schedules
– Cost
– Qualification date
– Production date
Recommend a final plan for approval

STEP 2 Product Development Cycle and Project 20

Management Process
 Process Step 3. Work the plan
Phases2-5
• The team must report on progress and address
any issues as the project unfolds. The
concepts for Work the Plan include:
– Commit and deliver to plan
– Monitor and report metrics with data
– Discuss obstacles and engage stakeholders
– Communicate change
– Recommit and deliver to change

11MARCH04 Product Development Cycle and Project Ma 21

nagement Process
 Commit and Deliver
• “Can do” attitudes ensure project success

• Cohesive teams produce a synergy

STEP 3 Product Development Cycle and Project Ma 22

nagement Process
 Report routinely
• Report project progress using data
• Communicate project status to all decision-
makers and stakeholders with Quality,
Performance, Cost and Schedule metrics
• Suggest recommendations when negative data
identifies a need for change. Never report a
problem without a recommended solution

STEP 3 Product Development Cycle and Project Ma 23

nagement Process
Date: 11MAR04 Status Report: 04-123 Project Manager: Carson

GREEN Year-to-Date Project Figures

RED Quality Project Start Date:10DEC04

Performance Current Phase: Validation
Schedule Original End Date: 2APR04
Current End Date: 27APR04 5MAY04
Cost
Project Budget: $_____ Upcoming Activities Start Date
UACT 1
% Under Budget _____ UACT 2
UACT n
Expected $$ Overrun ___
Completed Activities Completion Date
% Over Budget _____ CACT 1      
CACT 2      
CACT n
Team Member Summary of current week’s activities Due Date Status

Andersen Finalized the test fixtures for Proto3A 20MAR04 Green

Modified the test code for UL testing platform 24MAR04 Green
Zeller Modified test fixtures for Proto4A 15MAR04 Green
Build self locking fixturing for Mfg Qualification tests 10MAR04 RED

Issue Summary Action Owner Due Date

Schedule Beryllium Copper late in arriving – due 12MAR Will work OT on 13-14MAR HILL 15MAR

Comments: Low risk item: Mfg Engr has high confidence that Production tests will still meet schedule

WEEKLY STATUS REP Product Development Cycle and 24

ORT Project Management Process
 Discuss obstacles with
stakeholders
• Discuss the effects of any obstacle with every
stakeholder and ensure understanding
• Engage all stakeholders to meet each one’s
needs. Over-communicate to ensure
concurrence with change plans
• Submit recommendations to decision-makers
and stakeholders. Welcome comments and
feedback on any change plans

STEP 3 Product Development Cycle and Project Ma 25

nagement Process
 Cost of Changes
Cost

1,000,000 $1,000,000
900,000
800,000
700,000
600,000
500,000 $500,000
400,000
300,000
$250,000
200,000
100,000
$50,000
0 $500 $5,000
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

HYPOTHETICAL Product Development Cycle and Project Ma 26

nagement Process
 Communicate change
Never surprise anyone
• Over-communicate when change happens
• Ensure all decision-makers and stakeholders
agree with any new tasks or plan changes

STEP 3 Product Development Cycle and Project Ma 27

nagement Process
 Recommit and Deliver
• Change plans get the scrutiny of many

• Recognize there may be lots of emotion

around any change in plans. It’s the team’s
responsibility to plan accordingly

• Emphasize commitment and delivery to the

change plan. It may be more important than
achieving the original plan.
STEP 3 Product Development Cycle and Project Ma 28
nagement Process
Process Step 4. Learn from experience
Phases 0-5
 Professionals use well-documented
events to reinforce good behaviors
and discourage bad ones.
 Continuous improvement discipline

demands everyone to learn from

past experiences – shed the bad and
share the good.

11MARCH04 Product Development Cycle and Pr 29

oject Management Process
 Learn from experience
 Document events
 Train the positive

 Toss the negative

 Teach your world

STEP 4 Product Development Cycle and Pr 30

oject Management Process
 Document events

 Every project experiences both

positive and negative events

 Record all events using accurate data

STEP 4 Product Development Cycle and Pr 31

oject Management Process
 Toss the negative
 Every event during a project is an
opportunity for improvement.

 Eliminate these events from practice

by modifying processes and work
instructions to prevent recurrence.

 Live the NMI discipline

STEP 4 Product Development Cycle and Pr 32
oject Management Process
 NMI Discipline
 NameIt: If a process is not defined
the you do NOT know what to do

 MeasureIt: You cannot measure a

process unless you have defined it

 ImproveIt: A process cannot be

improved unless you can measure it

STEP 4 Product Development Cycle and Pr 33

oject Management Process
 Train the positive
 Every event during a project is an
opportunity for improvement.

 Incorporate these events into practice

by modifying processes and work
instructions to ensure recurrence.

 Live the NMI discipline

STEP 4 Product Development Cycle and Pr 34

oject Management Process
 Teach your organization
 Both positive and negative
experiences provide valuable insight
to others.

 Proactively share the “Lessons

Learned” across the organization.
Educate others of possible benefits in
other areas of the organization.
STEP 4 Product Development Cycle and Pr 35
oject Management Process
 Conclusions
Process Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Steps Ideas Plan Develop Validate Qualify Produce

1 Develop
Ideas
2 Plan the
work
3 Work the Plan
4 Learn from positive and negative events

11MARCH04 Product Development Cycle and 36

Project Management Process