product design: managing projects and innovations - · pdf fileproduct design: managing...

Alexandre Pauchard

Product design: managing projects and innovations

Project management and product development

09.2016, edt 4

© Alexandre Pauchard I LAUSANNE I 9/19/2016 I SLIDE 2

Product DesignOutline

DAY 1 - 30.09.2016• Project management basics • Product development basics • Scope management

DAY 2 - 14.10.2016• Time management• Cost management• Stakeholder management• Change management

DAY 3 - 28.10.2016• Risk management • Quality management• Project economics


IntroductionAlexandre Pauchard

• Studies: Ms in Physics from ETH Zurich in 1996, internship at CSEM, PhD in Microengineering from EPFL in 2000, visiting scholar at Delft University and UC Santa Barbara, PMP certification in project management in 2010

• Nova Crystals, start-up in Silicon Valley, 2000-2004. Engineer, Manager of APD group, Director of Engineering. Development of InGaAs-on-Si photodetectors

• ID Quantique in Geneva, 2004-2007, VP of Engineering. Headed development of photon counters, random number generators and quantum cryptography devices

• Synova in Ecublens, 2007-2010, CTO, headed dev. of laser-cutting machines

• Intel Corporation, 2005-2011, Technical consultant, development of 40 Gbpsoptical receivers with Intel’s Photonics Technology Lab in Santa Clara

• BOBST in Mex, 2011-now, Head of R&D Control and Register Solutions (45 engineers), Business Process Owner of Product Development Process


IntroductionCase study

In-line inspection system check carton blanks for defects and guarantees 100% quality consistency in folder gluer machines at belt speed up to 500 m/min for control area up to 800mm x 800mm

Inspectionmodule

Box ejection



New features

• Food up to 500 m/min (standard insp.)

• Pharma up to 350 m/min (text insp.)

• Cosmetic up to 100 m/min (emb. & foil)

• Highly augmented inspection capabilities

• New HMI

• Low constrated defects inspection

• Hot foil and embossing inspection

• Varnish presence detection



Print to cut Oil, water splashes, hickeys

Defects on codes

Text defects Colour measurement Carton damage

Detects wide range of defects



Latest product generation able to detect defects in embossedand foil decorative designs

PROJECT MANAGEMENTBASICS


Project management basics

What is a project?

“A project is a temporary endeavor undertaken to create a unique product, service or result . The temporary nature of projects indicates a definite beginning and end . The end is reached when the project's objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists.“ (PMI, PMBOK® Guide)

• Attributes: unique, novelty, uncertainty, sponsor and project manager, cleardeliverables, limited in time

• Not a project: repetitive and opertionalwork (e.g. production), tasks



In industry new product developments are managed in the frame of projects, with

• Clear objectives: project charter, product specification, business case• Means: sponsor, project manager, project team, budget for cash-out

• Constraints: time-to-market, project budget, product cost target, quality

• Deliverables: e.g. design reviews, gates, prototypes, user / service / production / sales documentation, industrialized pre-series, series production



Developing a new product is similar to planning new mountain route, e.g. climbing Mt Everest for first time

• Define objective• Define milestones

• Define resources

• Prepare planning• Define cost

• Manage stakeholders

• Identify / manage risk• Define fallback scenarios



Project management is all about managing constraints

Project management is juggling act: project manager has to deliver product or service within scope, time and budget, while managing risks and resources and delivering quality

• Triple constraint of scope, time and cost (project and product)

• Triple constraint of risk, quality and resources

SCOPE BUDGET

SCHEDULE RISK

QUALITY

RESOURCES



Constraints are interdependent : if one of the factors changes, at least one other factor will likely be affected

SCOPE BUDGET

SCHEDULE RISK

QUALITY

RESOURCES



Project vary in size and complexity during project lifecycle

• Cost and staffing levels are low at beginning and end of project



Reduce project risk early to limit cost of changes

• Stakeholder influence, risk and uncertainty greatest at project start• Ability to influence final characteristics of product, without significantly

impacting cost, is highest at project start and decreases as project progresses towards completion. Cost of change increasessubstantially as project approaches completion



3 main project management standards delivering certifications

• PMI stands for Project Management Institute, USA based professional organization, now recognized worldwide with 250 chapters in over 70 countries• CAPM, Certified Associate in Project Management

• PMP, Project Management Professional

• PgMP, Program Management Professional

• IPMA stands for International Project Management Association. Based in Switzerland, its members are national project management organizations such as AFITEP in France, GPM in Germany, APM in the UK, SMP and SPM in Switzerland• Level D: Certified Project Management Associate

• Level C: Certified Project Manager

• Level B: Certified Senior Project Manager

• Level A: Certified Projects Director

• APMG stands for Association for Project Management Group (UK)• PRINCE2 Foundation

• PRINCE2 Practitioner


Project management basicsPMI

Project management process groups• Initiating : define new project or new phase of existing project• Planning : establish project scope, define course of action

• Executing : complete work to satisfy project specifications

• Monitoring / controlling : review and regulate project performance• Closing : finalize all activities to formally close project or phase


Project management basicsPMI

Ten knowledge areas Integration management• Develop Project Charter• Develop Project Scope Statement• Develop Project Management Plan• Direct and Manage Project Execution• Monitor & control Project Work• Integrate Change Control• Close Project

Cost management• Cost estimating• Cost budgeting• Cost control

Communications management• Communicate Planning• Information Distribution• Performance Reporting• Manage Stakeholders

Scope management• Scope Planning• Scope Definition• Create Work Breakdown Structure (WBS)• Scope Verification• Scope Control

Quality management• Quality Planning• Perform Quality Assurance• Perform Quality Control

Risk management• Risk Management Planning• Risk Identification• Qualitative Risk Analysis• Quantitative Risk Analysis• Risk Response Planning• Risk Monitoring & Control

Time management• Activity Definition• Activity Sequencing• Activity Resource Estimating• Activity Duration Estimating• Schedule Development• Schedule Control

Human Resource management• Human Resource Planning• Acquire Project Team• Develop Project Team• Manage Project Team

Procurement management• Plan Purchase & Acquisitions• Plan Contracting• Request Seller Responses• Select Sellers• Contract Administration• Contract Closure

Stakeholder management• Stakeholder identification• Develop stakeholder management plan• Manage stakeholder engagement• Control stakeholder engagement


Project management basicsProject Governance

Gate Reviews

Core Team / Project Team

Project Steering

Sponsor

Steering Committee (SC)

Project Manager (PM)

Product Marketing

ServiceR&D Intellectualproperty

IndustrializationPurchasingProductionSales IT


Project management basicsProject Governance

Project governance ensured by• Sponsor : member of senior management, project promoter and

facilitator, appoints Steering Committee, mitigates major conflicts

• Steering committee : assigns project team; validates project plan, organization, change of specifications, planning, budget; guarantees periodic project follow-up

• Project manager (PM) : defines project organization, plans activities and resources, manages and leads project team, ensures timely release of deliverables within budget, takes care of communication to Steering Committee & project team, follows project until closure. PM is like pilot in a plane (project) managing multiple constraints: he isgiven a mission with given departure/arrival times and budget, but on the way he manages risks and resources and takes decisions whenrequired

PRODUCT DEVELOPMENT BASICS


Product development basicsIntroduction

Business case and project financing

Product development(200 to 1’000 engineers)

Product specification

Prototyping & validation Product release(June 2007)

Project launch(early 2005)

It is a long journey from the initial idea to product release (example with first iPhone generation)



New Product Development (NPD ), also called New Product Introduction (NPI), involves lot of uncertainties, especially when innovation content is high. Development path very fuzzy at beginning,visibility increases over time

• Multiple feedback and rework loops, trial and errors in earlier phases

• Numerical simulations, proof of concepts and prototypes help to converge to optimal solution(s)

Needs Product finishedExploration phase Execution phase



Work of NPD is all about mentally expansive thinking followed by contraction , as illustrated with diamond shape

• Each subphase is a different mental challenge

• Diamond get smaller over time, reflecting the reduction of uncertaintyas project progresses

Exploration phase Execution phase

What we don’t know?What about

thesesolutions?

Detaileddesign

1. Understanding needs and capabilities, identify knowledge gaps2. Fix focus on learning and knowledge generation, fill in knowledge gaps3. Identification and study of multiple solutions with open mind4. Select best solution(s)

1 2

3 4



Small companies (start-up and SMEs) usually have little if no formal process to guide them through their product development. These organizations are very fast in decision making process, but unstructured and face changing priorities

Large companies rely on an internal framework and process to guide New Product Developments (NPD ). This process describes how new product ideas are brought to market. These organizations are well structured, priorities change less frequently, but tend to be slower in decision-making process as more people are involved

© BOBST I LAUSANNE I 9/19/2016 I SLIDE 26


How to get from idea to market?

• Collect & identify ideas (customers, technicians, sales & mktg, R&D, ...) • Select & prioritize ideas • Analyse market needs, business opportunities• Define customer requirements, scope of product • Identify & verify technical solutions (build prototypes)• Do planning, workload, time, resources• Develop general concept, detail design, production concept• On pre-series: validate solution, ensure quality, industrialize• Set-up & launch production, sales & services

Gate 6

Opportunity FeasibilityGeneral design

DevelopmentPre-series validation,

industrializ.

Start series production and sales

Idea

Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Gate 6 Gate 7

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6Phase 0

Marketing

Production

R&D

Sales



Product Development Process usually based on Phase and Gate model (also called waterfall)

• Project is divided into stages or phases, separated by formal Gates

• At each Gate a Steering Committee decides if project shall continue to next phase, based on available information, including business case, risk analysis, and availability of necessary resources



Example of Product Development Process

Address risks Describe solutionMeet supply-chain constraints

Validate solution Industrialize productSetup production

Develop technique in detailsSelect suppliers

Verify technical solution to market need Identify needed resources

Identify a profitable business perspectiveTa

rget Identify

market needs

Sales & Service ready

for product distribution

Gate 4 Gate 5Gate 1

Phase 1 Phase 2 Phase 3 Phase 5Phase 0 Phase 4 Phase 6

Opportunity FeasibilityGeneral design

DevelopmentPre-Series

valid., industr.Idea

Production of series,

Start sales


Start sales


Start sales


Start sales


Start sales


Start sales

Series prod.,start sales

Detailed specificationProduction definition

Pre-series assembly, tests, trial reportsParts listDocuments for industrialization

Supply, production, assembly plansValidation plan

Solution evaluationProduction scenariosProject scope / plan

Market needProduct scopeBusiness forecast

Del

iver

able

s

IdeasMarket input

Parts list frozenField issue reportLessons from the project

Idea selection

Opportunity review & risk assessment

General design review

Design release for pre-series

Launch series production

Project closure

Feasibility review, project commitment

Gate 2 Gate 3 Gate 6 Gate 7



Other development methodologies exist

• Agile, SCRUM, Extreme Programming: mainly for software• Lean Product Development



Product Development Process covers only development phase until product is launched and stable. It is followed by another process managing Product Lifecycle during commercial life, until service is fully discontinued

Product Development Process

Manage phase out Full Service onlyCommercial life Reduced Service

Product Lifecycle Management

Product discontinued Service discontinued

Introduce next generation

Product launched

No more obsolescence treatment

SCOPE MANAGEMENT


Scope managementIntroduction

Project success depends a lot on relevance of project objectives definition. Be sure to aim at the right target!

Critical to extensively define project perimeter (in-scope, out of scope)

Out of scope

In scope


Scope managementMethodology

Project scope must be defined using following sequenceand later validated by major company’s stakeholders (e.g. marketing, sales, R&D, production, service) and possibly by customer(s)

• Capture customer needs , e.g. with Voice of Customer

• Define what product will do with Product requirements

• Define project contours with Project Scope Statement

• Decompose project into smaller parts with Work Breakdown Structure


Scope managementVOC

Voice Of Customer (VOC) methodology• In-depth process of capturing customer's expectations,

preferences and aversions . Specifically, VOC is market research technique that produces detailed set of customer wants and needs, organized into hierarchical structure, and then prioritized in terms of relative importance and satisfaction with current alternatives. Investigate customer’s price sensitiveness

• Prioritize product attributes• Tangible, e.g. performance (speed, productivity), price,

service/support, aspect (size, color, weight, volume, smell, taste, touch, quantity, material composition)

• Intangible, e.g. quality, reliability, aesthetics, ease-of-use, perceived value


Scope managementVOC

VOC – Kano model

• Revealed requirements : what we get by asking customers what they want. These requirements satisfy (or dissatisfy) in proportion to their presence (or absence) in product (e.g. fast delivery, car trunk volume)

• Expected requirements : so basic that customers fail to mention them, until we fail to perform them. Unnoticed by most customers, but very dissatisfying if missing (e.g. coffee temperature, car door noise)

• Exciting requirements : difficult to discover as they go beyond customer’s expectations. Their absence doesn’t dissatisfy, their presence excites (e.g. first phone without keyboard, gift in hotel)


Scope managementProduct requirements

Consulting all company departments, define functionalproduct specification by listing

• Description of product functions with target performance levels• Marketing attributes

• D = differentiator (goes beyond what competition is offering)

• P = parity (performance at par with competition)• B = basic (expected requirements)

• Priority

• M = Must have (key differentiators that enable business case)• S = should have (important requirements adding to customer value

• N = nice to have (can be descoped is needed or sold as options)

• F = future product evolutions (out of scope)



Example case study



Another methodology example to collect requirements

From the book “Mastering the requirement process”, by S. and J. Robertson


Scope managementScope definition

Some companies, after collecting VOC data and clarifying product requirements, but before launching product development, prepare target sales leaflets and user product documentation . Then return to a set of customers, and show them sales information to collect additional inputs

Other companies are very secretive about their intentions and share as little as possible before product launch (e.g. Apple)


Scope managementProject Scope Statement

Project Scope Statement clearly and succinctly describes what project is and is not intented to accomplish

• Project deliverables• Product scope description• Requirements• Product constraints• Operational constraints• Project constraints• Project assumptions• Project acceptance criteria• Project exclusions


Scope managementProject Scope Statement


Scope managementWBS

The Work Breakdown Structure (WBS) is a deliverable-oriented decomposition of a project into smaller components . Project managers use the WBS to make complex projects more manageable. The WBS is designed to help break down a project into manageable chunks that can be effectively estimated and supervised. Advantages:

• Assists with accurate project organization• Helps assigning responsibilities

• Shows the control points and project milestones

• Allows for more accurate estimation of cost, risk and time• Helps explain the project scope to stakeholders


Scope managementWBS

WBS example for development of new bike

At lowest level are work packages describing deliverables or work components


Scope managementWBS


Scope managementWBS

Rules to follow when creating a WBS

• Lowest level of WBS are work packages describing de liverablesA work package groups all activities where work to achieve the deliverable can be estimated, scheduled and monitored

• 100% rule - WBS must include 100% of work defined by project scope and must capture all deliverables – internal, external, interim –in terms of the work to be completed, including project management

• Mutual exclusivity - no overlap in scope definition between different elements of work breakdown structure

• Plan outcomes or results , not actions• Use coding scheme - reused in project planning tool


Scope managementWBS

Example of case study


Scope managementWBS


Scope managementWBS

Examples of deliverables


Scope managementWBS

WBS completed with WBS dictionary: for each work package, define content with resources doing the work


Scope managementExercise 1

Your company plans to release new generation of connected autonomous electric lawn mower. As a project manager, you have received the following functionalspecifications from Marketing. Now you need to defineproject WBS


Scope managementExercise 2

In preparation for a future exercise, install and play with project management tool (watch introductions on YouTube)

• GanttProject, free open-source project scheduling program for Windows, OSX and Linux, download from https://www.ganttproject.biz

• MS Project if available