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Alexandre Pauchard
Product design: managing projects and innovations
Project management and product development
09.2016, edt 4
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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
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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
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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
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IntroductionCase study
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
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IntroductionCase study
Print to cut Oil, water splashes, hickeys
Defects on codes
Text defects Colour measurement Carton damage
Detects wide range of defects
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IntroductionCase study
Latest product generation able to detect defects in embossedand foil decorative designs
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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
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Project management basics
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
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Project management basics
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
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Project management basics
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
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Project management basics
Constraints are interdependent : if one of the factors changes, at least one other factor will likely be affected
SCOPE BUDGET
SCHEDULE RISK
QUALITY
RESOURCES
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Project management basics
Project vary in size and complexity during project lifecycle
• Cost and staffing levels are low at beginning and end of project
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Project management basics
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
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Project management basics
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
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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
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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
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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
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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
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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)
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Product development basicsIntroduction
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
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Product development basicsIntroduction
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
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Product development basicsIntroduction
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
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Product development basicsIntroduction
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
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Product development basicsIntroduction
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
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Product development basicsIntroduction
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
Production of series,
Start sales
Production of series,
Start sales
Production of series,
Start sales
Production of series,
Start sales
Production of series,
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
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Product development basicsIntroduction
Other development methodologies exist
• Agile, SCRUM, Extreme Programming: mainly for software• Lean Product Development
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Product development basicsIntroduction
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
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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
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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
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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
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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)
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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)
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Scope managementProduct requirements
Example case study
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Scope managementProduct requirements
Another methodology example to collect requirements
From the book “Mastering the requirement process”, by S. and J. Robertson
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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)
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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
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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
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Scope managementWBS
WBS example for development of new bike
At lowest level are work packages describing deliverables or work components
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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
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Scope managementWBS
Examples of deliverables
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Scope managementWBS
WBS completed with WBS dictionary: for each work package, define content with resources doing the work
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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
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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