Project Management in New Product Development

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Project Management in New Product Development

Project Management in New Product Development

Authors: Bruce Barkley

Published: November 2007

eISBN: 9780071595810 0071595813 | ISBN: 9780071496728

Contents

Acknowledgments

Introduction

Chapter 1. Create a Culture of Ideas

The Soul of Innovation and Creativity

The Story of Quikmate®: Introduction of Sonoco Products Co. Plastic Grocery Sacks

New Organizational Structure for New Products

New Products and Outsourcing

Organizational Learning

Seven Key Strategies

State that new product development is the business

Remove barriers

Promote return on creativity

Providing information and feedback

Creating a virtual place for new ideas

Generating a filtering process

Demonstrating successful ideas

Organizational Agility

Creative intelligence and new products

Risk and New Product Development

Risk: The organizational culture issue

A culture of risk management competence

Link corporate and new product planning

Training and development in risk

Project experience

Learning organization

Functional managers

Building the Culture

Keane’s risk process

Risk analysis and mitigation

Addressing risk with scenarios

Performance incentives

The Johari Window

Personal, Project, and Organizational Risks

The New Product Risk Framework

Another Case in (No) New Product Development: The Schneider Program

Another Story of New Product Development

Chapter 2. Strategic Alignment and the New Product Portfolio

New Product Portfolio

New project process

The Eastern Case

Commitment and partnership

Stakeholder relations

Eight strategies

Overview on integration issues

Strengths, weaknesses, opportunities, and threats

Eastern’s Strategic Plan

Underlying Elements of the Risk-Based Strategic Plan

Mission

Commitment and partnership

Driving force: Production capability

Core competencies and risk contingencies

Eight Key Strategies

Strategy 1—Secure economically priced power

Strategy 2—Secure other resources at reasonable costs

Strategy 3—Cultivate customer awareness and promote customer satisfaction

Strategy 4—Create a safe working environment

Strategy 5—Build a responsible and knowledgeable workforce

Strategy 6—Improve technology and plant equipment to produce new products more efficiently

Strategy 7—Improve Eastern’s impact on the environment

Strategy 8—Reduce waste and non-value-added costs

Communicating Strategy and Risk

Programs and New Product Ideas: Generation of a New Product Portfolio to Implement Eastern Strategies No. 3 and 6

Designing programs of new product ideas

Strategy 3: Cultivate customer awareness and promote customer satisfaction

Strategy 6: Improve technology and plant equipment to produce products more efficiently

Postscript to the Strategic Plan

Acquisition and merger

Integration in Global and International Projects

Postscript on Integration and the Eastern Case

Analyzing a New Product Portfolio—General Lessons from Other Cases

Weighted scoring model and net present value

Risk matrix sample

Funding New Product Projects

The New Product Development Pipeline

Chapter 3. Project Integration and Setup

Project Management System

Integration as a Leadership Function

Integration as a Wide Ranging Quality and Process Improvement Standard

Tools in Building an Integrated Project Management System

Organizationwide project management system

Program/portfolio planning and development system

Resource management system

Program information technology system

Product/service development process

Interface management

Portfolio management

Program monitoring and control system

Change management system

Program evaluation system

Limitations of Integration Systems

The Critical Chain Concept

PMI OPM (Organizational Project Management) 3

Balanced Scorecard

eProcurement

Integration: Concepts and Models

Understanding integration

Integration model

Project Integration Management: Organizational Issues

Prepare the Organization

Develop systems of integration

Develop integration skills

Recognize integration success

Integrate with the customer

More Detail on the PMI PMBOK Standard for Project Integration

Develop Project Charter

Develop project charter: Inputs

Organizational Process Assets

Develop project charter: Tools and techniques

Develop project charter: Outputs

Develop Preliminary Project Scope Statement

Develop preliminary project scope statement: Tools and techniques

Develop project management plan

Develop project management plan: Inputs

Develop project management plan: Tools and techniques

Develop project management plan: Outputs

Direct and Manage Project Execution

Direct and manage project execution: Inputs

Direct and manage project execution: Tools and techniques

Direct and manage project execution: Outputs

Monitor and Control Project Work

Monitor and control project work: Inputs

Integrated Change Control

Integrated change control: Inputs

Integrated change control: Tools and techniques

Integrated change control: Outputs

Close Project

Close project: Inputs

Close project: Tools and techniques

Close project: Outputs

Case Study of PMBOK Implementation: Integrated Transportation System

Integration gateway 1: Global interface

Integration gateway 2: Business planning

Integration gateway 3: Organizational development

Integration gateway 4: Global team composition and development

Integration gateway 5: Support systems audit

Integration gateway 6: Portfolio development and management

Integration gateway 7: Market and customer interface

Integration gateway 8: Project integration management

Integration gateway 9: Systems safety and reliability

Integration gateway 10: Chassis, mechanical, and electronics design and development

Integration gateway 11: Software design and development

Integration gateway 12: Test equipment and testing

Integration gateway 13: Integration of software and hardware

Another Case Application: Integration Issues in Portfolio and Project Planning Life Cycles

The Case: QUICK-TECH building systems

Business and Strategic Planning

Business and strategic planning integration issues

The portfolio: Procedures in development

Definition: Work breakdown structure

Plan tasks for earned value

Integrated monitoring

“Reading” the project as an integrated whole

Integration of cost, schedule, risk, and quality

Steps in the cost/schedule/risk/quality integration process

Integration Skills of the Program and Project Manager

Single project management

Program (or multiproject) management

BuildIt: A Sample Integrated Program Structure

Organization

Strategic statement

One- to five-year strategic objectives

Program of projects

Project cost accounting systems (PCAS)

A program management manual for integrated project management

Program management principles

Meet customer requirements

Follow integrated, generic WBS—Product development process

Standard work breakdown structure

Teamwork

Define and communicate the scope of work and assignments clearly

Collaboration across the organization

Work will be quality and schedule driven

Ensure timely procurement of product components

Change will be managed

Program progress will be tracked periodically reviewed

Program management: Roles and responsibilities

Program management office (PMO)

Program manager role

Departmental manager roles in the matrix

Role of the program administrator/planner

Program planning, scheduling, and resource management

Five-step scheduling process

Schedule control

Baselining the schedule

Baseline procedures

Managing schedules on the network

Resource planning and control

Tracking and program review

Schedule update procedures

Analyzing variance

Program close-out and lessons learned

Concept definition

Project setup for control

Structure, science, and research

Preliminary project plan

Project charter

Financial analysis

Project Scope Statement

Schedule

Resource plan

Budget

Configuration Management System

Change control system

Application to new product development

ORANGE-AID: New Product Development Case

Early/Late Start and Finish Analysis

PERT analysis

Decision Trees and Uncertainty

Decision tree example

Decision tree theory

Expected value

Pat’s decision example using decision trees

Target cost analysis

Chapter 4. Product Concept Definition

The Product Concept Phase

Entering the Concept Definition Process

Controlling premature product lock-in

Concept Definition Phase

Schedule Template

Setup for Project Review: Go or No-Go Decision

Project review: Go or no-go time

Going from Idea to Concept to Product

New Product Concept Proposal

Need, Form, and Technology

Project Value Assessment

Estimating Product Value in New Systems or Process Concepts

Concept Risk Assessment

External analysis: Public policy analysis

Intellectual property analysis

Market demand and other impacts

Product Functional Specifications

Commercialization Analysis

Competitive Analysis

Finding drivers of competition

Working Out Customer/Client/User Expectations, Needs, Wants, and Requirements

Quality Function Deployment (QFD)

Plan for the Development Phase

Focus on product life cycle

Equipment and logistics plan

Business Case

Final Project Review

Chapter 5. Full Product Development and Marketing

Development and Marketing

Project Setup and Management

Prototype development

Reliability

Build and production transition plan

Safety and regulatory review

Preliminary equipment and component review

Configuration management

Validate functional requirements

Confirmation of Final Product Design

Confirm Functional Requirements

Confirmation of Product Specifications

Conforming requirements to customer need

Preliminary Design Review

Reliability Planning

Setting reliability objectives

Prepare reliability plan

Confirmation of Reliability Requirements

Pre-prototype design review

Detailed product and component design review

System-level design review

Prepare test protocols and facilities

Service, logistics, and maintenance plan

Final test plan

Special project management issue: Test space and equipment

Prototype development and testing process

Conduct Prototype Test

Select commercial partner

Selection of supplier partner

Steps in partner selection

Prepare Product Component Support Document

Risk Assessment

Intellectual Property Strategy

Develop Preliminary Market Launch Plan

Field Support to Market Launch

Create Production Process and Plan

Create preliminary production plan

Quality control review

Produce test units

Develop field test protocol

Develop field test implementation plan

Update service and logistics plan

Update Business Plan

Update market definition

Locking in product design

Final Regulatory Approval

Final production transition and scheduling

Reconfirm Final Business Case

Supply chain strategy

Update market assessment

First Article Review

Prepare manufacturing operations plan

Produce first article

Final financial performance analysis

Final Logistics Plan for Market Launch

Prepare listing of infrastructure and support needs

Prepare checklist for each market location

Market Launch Plan

Market positioning

Manage product marketing

Service and product

Market launch planning

A different project team

A Marketing Launch Plan

Key Role of Experienced People

Market Scheduling

Risk-Based Scheduling

Procedure

A Note on Microsoft Project PERT and Risk Matrix Terminology

Chapter 6. New Product Development in Consumer Products and Electronic Instrumentation

Special Challenges in Electronic and Computer-Based New Product Development

Missing the forest for the trees

Top management support

Organizational mismanagement

Misalignment with business plans

Keeping marketing out

Project management by accident

Focus on task durations

Too many projects in the pipeline

Project Risk Management

The product development process and risk

Risk management in product development: Embedded verification and validation

Stages in Product Development in Electronic Instrumentation

Steps in Product Development

Step 1: Requirements definition

Step 2: Detailed design

Step 3: Prototype development

Step 4: Design validation

Step 5: Production transition

Risks in Organizational and Technical Interfaces

Design changes

Design review and risk

Risk reviews

Preliminary design risk review (PDRR)

Critical design risk review (CDRR)

Production readiness risk review (PRRR)

System design risk review (SDRR)

Test readiness risk review (TRRR)

Task-level requirements risk review (TLRRR)

Task-level design risk review (TLDRR)

General Responsibilities

System-level reviews

Task-level reviews

Function of task-level reviews

Preliminary design risk review (PDRR)

Critical design risk review (CDRR)

System design risk review (SDRR)

Test readiness risk review (TRRR)

Task-level requirements review (TLRR)

New Product Software Development Risk

Chapter 7. Quality, Six Sigma, and New Product Development

Quality and Process Improvement

Customer-Driven Risk Management

Illustration of New Product Risk Management—The Defense Risk Program

Six Sigma quality template

DoD outline for quality

Timeline

New Product Portfolio Management

Value of Customer-Driven, New Product Risk Management

Risks in Customer Expectation, Need, and Requirements

Customer expectations

Customer needs

Customer requirements

Risk Lessons Learned and Project Risk Audit

Project audits

Contingency actions

A postscript to lessons learned

Project Audit

Scheduling Contingencies and Improvements

Quality Tools and Techniques

Quality function deployment (QFD)

Statistical process control (SPC)

Pareto analysis

Cost of quality

Quality assurance (QA)

Earned value

Project review

Documentation

Scheduling as Team Motivator

Quality Must be Translated to Scheduled Tasks

Front-end customer process analysis

Concept development

Generation of alternative candidate projects

Scope of work

Schedule

Budgeting and earned value

Quality assurance

Project metrics

Prototyping

Quality audit

Transform customer expectations to requirements

Follow a defined development process and work breakdown structure

Schedule customer and quality early

Customer-driven teamwork

Define and communicate the scope of work and assignments clearly

Collaboration across the organization

Work will be quality and schedule driven

Ensure timely procurement of product components

Change is managed

Program progress will be tracked and periodically reviewed

Involve the customer in designing the management support system

Quality as Driver

Reviewing Program Progress and Resolving Conflicts

Project planning

Departmental manager roles

Project team roles

Role of a project management office (PMO)

Scheduling

Baselining the schedule: A quality management action

Schedules on a network

Resource Planning

Long-Term Staff Planning

Preparing Staffing Policy and Plans

Step 1—Determine staffing levels and assignments

Step 2—Develop staffing standards

Step 3—Forecast future requirements

Step 4—Develop department staffing requirements

Step 5—Develop department staffing patterns

Step 6—Prepare staffing plan

Program Review

Development of Customer-Driven Program Manager Competencies

Agile Project Management

Chapter 8. Measuring New Product Development

Tools and Techniques

Design to Quality

Design to Six Sigma

Design to Cost

Design to Process

More Tools

System Development/Improvement

Concurrent Engineering

Robust Design

Loss Function

Robust Design Phases

Statistical Process Control

Cost of Poor Quality

Other Measurement Tools

Just-in-time

Total production maintenance

Mistake-proofing

Enterprise and manufacturing resource planning

Computer-aided design, computer-aided engineering, and computer- aided manufacturing

Total integrated logistics

System Development/Improvement Methodologies within the DoD

Computer-aided acquisition and logistics support

In-plant quality evaluation program

R&M 2000

Value engineering

Measuring the Success of New Product Development Mainstreaming

Measuring New Product Workmanship

Chapter 9. Project Management and Teamwork

Team Dynamics

Customer and User Diversity

Personal Growth in New Product Development

Growth to New Products Program Manager Role

Single Project Management

Program (or Multiproject) Management

Gender and Minority Diversity in New Product Development

Individual Responsibility as a New Product Team Member

Do it right

Be a leader

Serve the team

Develop yourself

Doing Your Own Performance Appraisal

Step 1. Envision personal improvement

Step 2. Enable personal improvement

Step 3. Focus on improvement

Step 4. Improve the job

Step 5. Improve yourself

Step 6. Help others improve

Step 7. Evaluate your improvement progress

Empowerment

Improved quality of work life

Professional and personal development

Rewards and recognition

New job opportunities

Increased latitude in decision making

Preserving the Wonder in Project Management

Integrated Product Development Teams

Leading New Product Development

Using the Critical Chain Concept in New Product Development Teams

Project Team Charter

Team Training

Cautionary Note on New Product Teams

Chapter 10. Putting It All Together

Principles for Working in the Real World

Seven Principles of Project Success

Principle #1 Develop key processes

Principle #2 Open upto new ideas

Principle #3 Define measures to select

Principle #4 Use project reviews to stop bad products

Principle #5 Choose technical project managers

Principle #6 Build team accountability

Principle #7 Ad hoc it when necessary

Appendix A. Generic New Product Development Work Breakdown Structure

Appendix B. Managing New Product Development Projects: Course Outline

Appendix C. Issues for Discussion

Bibliography

Index