practical new product development (npd) for engineers entroids

Practical “New Product Development” (NPD) For Engineers

Entroids.com

Topics Covered

• Engineering NPD – what are the unique needs and challenges

• Lean startup, lean prod dev, stage gate…so many methods and how to make sense of them

• NPD methods Vs project management tools

• Why so many projects fail in engineering NPD

• Gaps in project management tools

• Introducing the Think-Plan-Do framework for Eng. NPD

• Entroids case study for NPD execution

p 2

Nature of Engineering NPD Creates Unique Challenges

Volatility Uncertainty

Ambiguity Complexity

Challenges in Engineering NPD

Execution is key to NPD success

Customers

Regulations

Technology

Market Trends

Inpu

ts

Solution

ValueProp.

Prob. SolutionFit

ProductMarketFit

On budget

Deliver Value Prop

Meet Prod. Cost

On Schedule

Meet Cust. Exp.

Out

put

NPD Execution

Ingredients of execution•NPD method

eg. StageGate• Project Management• Project team

p 3

Role Of Methods And Tools In NPD Execution

Methods = “What” to do PM Tools = “How” to do it1 2

Customers

Regulations

Technology

Market Trends

Inpu

ts

Solution

ValueProp.

Prob. SolutionFit

ProductMarketFit

On budget

Deliver Value Prop

Meet Prod. Cost

On Schedule

Meet Cust. Exp.

Out

put

NPD Execution

Ingredients of execution•NPD method

eg. StageGate• Project Management• Project team

p 4

NPD Methodology 1Stage Gate – Winning At New Products

Problem Addressed• People work on multiple projects• Difficult to define market needs

And Measure Progress• Simple way to ensure Key

Milestones Are Met

Solution • Simple checklist based system• Covers all aspects & functions of

product development• Useful as a communication tool

for progress• Gives opportunity for Go – No go

decisions

1Dr. Robert Cooper

p 5

NPD Methodology 2Lean Product Development

Problem Addressed• Not easy to consolidate market

requirements and risk assessment• Difficult to coordinate people in

matrixed organization• Not easy to quantify priorities and risks

in a complex project

Solution • Event based product development• Get the core team in one place for key

events• Templates to quantify and prioritize

requirements and risks• Simple visual scheduling tool

1Ronald Mascitelli

p 6

Methodology 3Lean Startup – Build Measure Learn

Problem Addressed• Most startups fail• It’s usually too late when you find flaws in a

business plan• You are usually wrong with what you think

customers want• Cannot predict the market• Advancing the plan is not progress

Solution• Customer development

• Find out what customers want with a iterative customer focused approach

• Rapid hypothesis testing – value, pricing…

• Focus on hypothesis, experiments & insights

1Eric Ries

p 7

Methodology 4Business Model Canvas

Problem Addressed• Business Plans Are Obsolete Soon

After Completion• Nobody Reads A Business Plan• Are Based On Faulty Assumptions

Solution • One Page Business Plan• Easy To State What Is Important• Highlight The Biggest Assumptions• Test And Iterate Business Model • Visual Dashboard

1Alex Osterwalder

p 8

How To Make Sense Of Methods Used For NPD Execution

And more…

Each method serves a unique project needsp 9

Two Broad Types Of NPD Projects In Engineering Companies

New

ness

to C

ompa

ny

Newness to Market

New to world(Disruptive Innovation)

New to company(New product line)

Major Revision(Repositioning)

Minor Revision(Augmentation)

New / Revolutionary

Revisions / Evolutionary

Different project characteristics drive different needs

HighLow

High

Low

p 10

NPD Projects Have Different Characteristics & Execution Needs

Schedule Quality Technology Resources Financial Market

Revisions / Evolutionary Products

New / Revolutionary Products

Nature of Risks

Risk

Lev

el

LowRisk

MediumRisk

HighRisk

Project type drives different execution methodsp 11

New / Revolutionary Products Have Big Market And Finance Risks

Focus on• Problem and solution fit• Customer feedback loops with MVP• Fail fast / pivot effectively• Business model validation• Product – market fit

Project management implications• Constant customer input and testing• Flexibility to pivot quickly• Challenging customer development• Improvise & compensate for lack of

expertise / technology expertise

Methods That Work Best

Lean Startup Methodology

Business Model Canvas

p 12

Focus on• Firm schedule expectations• Quality at launch• Product cost• Rapid learning cycles for technology

development• Supply chain and manufacturing risks

Project management implications• Maintain team accountability in a matrix

organization• Close coupling of tasks with project needs• Internal and external communications• Keep focus on right tasks at right time

Evolutionary Products Have Big Quality & Schedule Risks

Methods That Work Best

Lean Product Development

Stage-Gate NPD

p 13

What NPD Execution Methods Are Not?

• Not The Same As Project Management

• Not An Automated System

• Not A Linear System

• Not A Project Control Mechanism

• Not A Bureaucratic System

Project management is required to compliment Stage-Gate or any other method

p 14

Methods = “What” to do PM Tools = “How” to do it1 2

Inpu

ts

Solution

ValueProp.

Prob. SolutionFit

ProductMarketFit

On budget

Deliver Value Prop

Meet Prod. Cost

On Schedule

Meet Cust. Exp.

Resu

lts

NPD Execution

Business Model

MarketReq.

Risks Milestones

Four pillars of execution

Project Management Addresses The “How” In NPD

Customers

Regulations

Technology

Market Trends

p 15

Project Management Challenges in Engineering NPD

NPD ExecutionChallenges

Focus On Important Actions

Team Accountability

Uncertainty

Risks

Dynamic Schedule

VisualCommunication

Changing Priority & Needs

MS Project and Smart Sheet do not address these challenges

p 16

Current Tools Used In Engineering NPD Are Not Ideal. Here’s Why?

Gaps That Current Tools Create For NPDMS

Project Smart Sheet

• Project Sitting No No

• Project needs alignment No No

• Effective Communication Some Better

• Change Plans On The Fly Difficult Difficult

• Team Member Accountability No Some

• Clear focus No No

• Manage Risks And Requirements No No

• Monitor And Control Budget Yes Yes

• Task Management Yes Yes

• Collaboration Tool No Yes

Clear need for a better framework for Project Management in Eng. NPD execution p 17

Achieve More By First Placing The Rocks. Don’t Sort The Pebbles & Sand

Think-plan-do Framework Separates The Rocks From The Pebbles In Execution. Achieve More By Focusing On What Is Important

• Rocks – Project Needs (Four Pillars Of NDP Execution)• Pebbles – Major Tasks Per Each

Project Need • Sand – Nugget Sized Current

Activities

p 18

Entroids – Think-Plan-Do Framework For Practical Engineering NPD

Tier 1: Strategic Project NeedsMilestones, Risks, Requirements & Business Canvas

Tier 2: Tactical PlanningExecution Plan for all Strategic needs – What to do for each need

Tier 3: Focus On ActionsWhat needs to be done now to achieve your major tasks

p 19

Entroids Think – Plan – DO Framework Seamlessly Aligns Strategic Project Needs To Current Activities

1

ENTROIDS THINK-PLAN-DO FRAMEWORK

THINK Project Needs

PLAN Major Tasks

DO Current Actions

TIER

TIER

TIER

2

3

Country

Region

Street View

p 20





p 21

Four Pillars Of Execution Is At The Core Of NPD Project Management Success

•Task management•Urgent Vs important

•Visual dashboards •Reduce waste

Busin

ess M

odel

Requ

irem

ents

Risk

s

Mile

ston

es

Think-Plan-DoFramework for NPD

p 22

The Four Pillars Of Execution That Enable NPD Success

• Problem – Solution Fit

• Product – Market Fit • Business Fit \w

Company Financial Goals

• What Are The Critical Resource & Capital Requirements

• Requirements / Features Which Deliver Customer Value

• Prioritize Requirements Based On Customer Value vs. Efforts In Line \w Business Strategy

• Identify Key Deliverables At Each Milestone To Gauge Progress

• Measure Of Efforts vs. Target Schedules

• Identify Risks & Plan Mitigations

• Optimize Resource & Capital Usage

• Minimize “Do-Over” Loops

p 23

NPD Strategic Project Need 1Business Case / Business Model Canvas

Problem Statement

Solution

Key Resources

Unique ValueProposition

Unfair Advantage Customers

Channels

Costs Revenues

• Job To Be Done• Gains• Pains

🚚

🏬🎁

😓

🔧

👤

💵💸

🍯

• Awareness• Sale• Delivery

• Types• Persona• The secret sauce• Direct

• In-Direct

• Product & Support

• Alternative

• Drivers • External Support

• Total Cost Of Ownership• Pc Price Reduction

• Gain New Markets / Leadership• Gain Price vs. Value Created

Capture Your Assumptions In Defining The Business Model & Experiment To Validate Them p 24

NPD Strategic Project Need 2Product Requirements

Product Requirements Should Be Prioritized And Communicated In A Way That The Product Development And Marketing Requirements Are Always In A Synch

MUST SHOULD COULD

High Priority Medium Priority Low Priority

• Critical To Core Value Proposition

• Cannot go to market without this

• Development Target

• Stretch Targets For Internal Teams

• Creates Wow or Significant Lead Over Competitors If Achieved

MUST DO DIFFERENTIATE

EVALUATE AVOID

Trivial ExtremeEFFORTEx

pect

edDe

light

VALU

E

p 25

NPD Strategic Project Need 3Risk Management

NUISANCE MITIGATE

IGNORE INSURE

Trivial ExtremeIMPACTRa

reVe

ry L

ikel

yPR

OBA

BILT

YNPD SCHEDULEStart Launch

RISK

IMPA

CT &

PR

OBA

BILI

TYLo

wHi

gh

PLAN FINANCE DEVELOP MARKET

FAILURE

SUCCESS

You Can Beat The Odds And Build A Thriving And Rewarding Venture By Learning To Recognize And Mitigate Risks Effectively

p 26

NPD Strategic Project Need 4Milestone Management

Marketing Requirements

Concept Feasibility

Launch Partnership

Business Case

Prototype

DFMEA

Jul’ 16 Aug’ 16 Sep’ 16 Oct’ 16 Nov’ 16 Dec’ 16

Priority : High Owner: DSPlanned Dt : Sep’ 16Estimated : Nov’ 16

Gate 1Gate 2

Gate 2

Gate 3

Gate 2Gate 3

p 27

The Three Pillars Of Effective Milestone Management Are Risks, Assumptions And Deliverables. At Each Milestone The Risks Should Be

Mitigated, Assumptions Validated, And Deliverables Achieved





p 28

PLAN Major Tasks

Cabinet Redesign Dwgs

Critical Components

Prototype Build

Lab Tests

Jul’ 16 Aug’ 16 Sep’ 16 Oct’ 16 Nov’ 16 Dec’ 16

Priority : High Owner: DSDue Dt : Dec’ 16

Major Task 1

Major Task 2

Major Task 3

Major Task 4

p 29





p 30

DO Current Actions

• Identify Which Dimensions Are Critical•What would be the

boundary conditions from Marketing Requirements

6/29 VK• Receive Supplier

Drawings For Critical Components

7/2 CG• Assess Competitive

Cabinet Drawings & provide to Engineering

6/18 VV

p 31

Navigate & Zoom In Through Details Effectively

Requirement

p 32

• Work Smart – Clearly Focus On What Is Important & Urgent

• Win Time Back – Spend Less Time In Project Management

• Quick Diagnostics – Easily Find What Slipped Through The Cracks

• Automate Accountability – Visually See Each Team Member’s Impact

• Communicate Seamlessly – Visual & List Dashboard For Planning & Performance Monitoring

What Does Entroids Bring To Your New Product Development ?

p 33

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