how do we measure of r & d (research and development) in companies

MEASURING PERFORMANCE OF R & D

Presented By:BHAVANA. A ROHIDEKAR

SRUTHAKEERTHIMUZAMIL QUADIR

RESEARCH AND DEVELOPMENT

Discovering new knowledge about products, processes,

and services, and then applying that knowledge to create new and improved products, processes, and

services that fill market needs.

Research and development is an investment in a company's future

Leaps in Market Participation

Cost Management Benefits

Trend Matching

Marketing Abilities

IMPORTANCE OF R & D

CASE presentation methodology NEED FOR MEASURING R & D• One of the most critical motives for measuring R&D performance

at the firm level has recently been the validation of the chosen investment level on R&D.

• R&D function has to prove its productivity and significance for the whole company.

• R&D investments must often compete with the other investments in the company.

DIMENSIONS OF R&D PERFORMANCE ANALYSIS

R&D AS A PROCESS:

• As suggested in several studies , innovation and R&D should be managed as a process.

Some important criteria for measuring R&D effectiveness:

SYSTEM PHASE EVALUATION CRITERIA1) Input Enough R & D investment

Enough R & D productivity Degree of professionalism Skill level of R & D personnel

2) Throughput Feasibility of R & D plan Adequate education and training Validation of selected R & D topics Collaboration between R & D and

Production/Marketing Expansion and Diversification of

research areas

3) Output Degree of goal achievement Usefulness of developed

technology

4) Outcome Expected profit increment Effects on general management

improvement

1) CONCEPT GENERATION:

• Number of new product ideas, product enhancement ideas evaluated in the last year • Number of new product-based business areas/ventures started in the past 5 years • Customer satisfaction • Product planning horizon • Average product life cycle length

2) PRODUCT DEVELOPMENT

• Time to market :

Average concept-to-launch time Time for each phase Average time of product enhancement Average time of redesign

• Product performance:

Cost Technical performance Quality

• Design performance:

Manufacturing cost Manufacturability Testability Number of product redesigns

COMPANY VISITED

GUIDED BY:

Mr. Nandakumar (Senior DGM, Tech planning)

Mr. R.C. Nautiyal(General Manager, HR)

PRODUCTS OF BEL:

• Electronic Voting Machines• Radars• Telecommunications• Sound and Vision Broadcasting• Opto-electronics• Information Technology• Semiconductors• Missile• Fire-control system• Electronic Warfare Systems• Simulators• Tank electronics

THREE LEVELS OF RESEARCH AT BEL

Central Research Laboratory

Technology module developers

(central/core R & D)

Strategic business units

METHODS USED FOR MEASURING R & D IN BEL

1) The number of In-house projects developed

The strategic business units are involved in developing a lot of projects .

These projects can be:

• In- house• In collaboration with DRDO• In collaboration with foreign bodies

IN HOUSE

WITH DRDO

WITH FOREIGN BODIES

For the SBU’s , BEL keeps a note of the number successful projects carried out in-house (without any collaboration with DRDO of Foreign bodies.)

• Enterprise resource planning system is the statistical tool used for recording this.

• ERP system records all the data needed

• A weighted average of all the in-house research is taken

• The efficiency of the in-house research projects is obtained

• This hence becomes a criteria for R & D measurement.

2. Patents obtained and Papers published:

The effectiveness of R&D is measured by the number of patents obtained and the number of technical papers published by the research teams in various international forums.

This is applicable to the Central Research Laboratory and the Core R & D department.

BEL now plans to consider even the research conducted by strategic business units for patenting.

3. VALUE ADDITION:

If any kind of software is designed to support the research activity, BEL considers it as a value addition done.

Any kind of additional input given by the people working in research team.

4. Knowledge Management:

Every R & D engineer is to contribute to the knowledge management database.

The difficulties faced during the project

How they solved the problems

New techniques learnt during the project

New technologies adopted

At the end of the year, knowledge officers award the R & D engineers for their contribution.

5. R & D Awards:

The best projects are awarded at the end of the year depending on how successfully the research was carried out. Any patents obtained by the research group, or any papers published by them are also considered for the awards.

CHALLENGES

• One of the most problematic aspects is the selection of a suitable set of appropriate measures for the right subjects of measurement

• There is also the problem of determining the right norms with which to make comparisons.

• Other substantial problems are the definition of the contribution of R&D and the time lag between the initial stage of the process and the outputs or the outcomes.

IMPORTANCE:

• Performance measures have only limited or no utility in evaluating the outcomes of R&D activities.

• However, Performance measures can provide useful information on the operational or functional health of an R&D organization.

• Measures such as maintenance backlog, workforce diversity, procurement cycle-time, papers published, patents received are just some examples by which performance measures can be used in the R&D environment.

Several reasons that cause R&D evaluation or measurement systems to fail:

• Too much emphasis on internal measurement

• Too much focus on behavior

• The measurement system is too complicated

• The measurement system is too subjective

• The acceptance of performance measurement in R&D

REASONS FOR FAILURE

THANK YOU !!!!!