Practical New Product Development (NPD) For Engineers - Entroids

1. Entroids.com Practical “New Product Development” (NPD) For Engineers

2. 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

3. Nature of Engineering NPD Creates Unique Challenges NPD Execution • Volatility • Uncertainty On budget Prob. Solution Fit Customers • Ingredients of execution • NPD method eg. StageGate • Project Management • Project team Deliver Value Prop Solution Regulations Meet Prod. Cost Output Inputs Product Market Fit Technology Value Prop. On Schedule Market Trends Meet Cust. Exp. Challenges in Engineering NPD • Ambiguity • Complexity Execution is key to NPD success

4. Role Of Methods And Tools In NPD Execution NPD Execution On budget Prob. Solution Fit Customers • Ingredients of execution • NPD method eg. StageGate • Project Management • Project team Deliver Value Prop Solution Regulations Meet Prod. Cost Output Inputs Product Market Fit Technology Value Prop. On Schedule Market Trends Meet Cust. Exp. 2 “What” to do Methods = “How” to do it PM Tools = 1

5. NPD Methodology 1 Stage Gate – Winning At New Products Dr. Robert Cooper 1 • 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

6. NPD Methodology 2 Lean Product Development Ronald Mascitelli 1 • 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

7. Methodology 3 Lean Startup – Build Measure Learn Eric Ries 1 • 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

8. Methodology 4 Business Model Canvas Alex Osterwalder 1 • 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

9. How To Make Sense Of Methods Used For NPD Execution And more… Each method serves a unique project needs

10. Two Broad Types Of NPD Projects In Engineering Companies New / Revolutionary New to company (New product line) New to world (Disruptive Innovation) High Newness to Company Minor Revision (Augmentation) Major Revision (Repositioning) Low Revisions / Evolutionary High Low Newness to Market Different project characteristics drive different needs

11. NPD Projects Have Different Characteristics & Execution Needs Revisions / Evolutionary Products High Risk Medium Risk Risk Level Low Risk New / Revolutionary Products Nature of Risks Project type drives different execution methods

12. New / Revolutionary Products Have Big Market And Finance Risks Methods That Work Best • Focus on • Problem and solution fit • Customer feedback loops with MVP • Fail fast / pivot effectively • Business model validation • Product – market fit Lean Startup Methodology • Project management implications • Constant customer input and testing • Flexibility to pivot quickly • Challenging customer development • Improvise & compensate for lack of expertise / technology expertise Business Model Canvas

13. Evolutionary Products Have Big Quality & Schedule Risks • Focus on • Firm schedule expectations • Quality at launch • Product cost • Rapid learning cycles for technology development • Supply chain and manufacturing risks Methods That Work Best Lean Product Development • 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 Stage-Gate NPD

14. 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

15. Project Management Addresses The “How” In NPD NPD Execution On budget Four pillars of execution Prob. Solution Fit Customers Deliver Value Prop Solution Business Model Market Req. Regulations Meet Prod. Cost Inputs Results Product Market Fit Value Prop. Risks Milestones Technology On Schedule Market Trends Meet Cust. Exp. 2 “What” to do Methods = “How” to do it PM Tools = 1

16. Project Management Challenges in Engineering NPD Focus On Important Actions Changing Priority & Needs Visual Communication Team Accountability NPD Execution Challenges Dynamic Schedule Uncertainty Risks MS Project and Smart Sheet do not address these challenges

17. Current Tools Used In Engineering NPD Are Not Ideal. Here’s Why? Clear need for a better framework for Project Management in Eng. NPD execution

18. Achieve More By First Placing The Rocks. Don’t Sort The Pebbles & Sand • Rocks – Project Needs (Four Pillars Of NDP Execution) • Pebbles – Major Tasks Per Each Project Need • Sand – Nugget Sized Current Activities Think-plan-do Framework Separates The Rocks From The Pebbles In Execution. Achieve More By Focusing On What Is Important

19. Entroids – Think-Plan-Do Framework For Practical Engineering NPD Tier 1: Strategic Project Needs Milestones, Risks, Requirements & Business Canvas Tier 3: Focus On Actions What needs to be done now to achieve your major tasks Tier 2: Tactical Planning Execution Plan for all Strategic needs – What to do for each need

20. Entroids Think – Plan – DO Framework Seamlessly Aligns Strategic Project Needs To Current Activities ENTROIDS THINK-PLAN-DO FRAMEWORK Country TIER 1 THINK Project Needs Region TIER 2 PLAN Major Tasks Street View TIER 3 DO Current Actions

21. Entroids – Think-Plan-Do Framework For Practical Engineering NPD Tier 1: Strategic Project Needs Milestones, Risks, Requirements & Business Canvas Tier 3: Focus On Actions What needs to be done now to achieve your major tasks Tier 2: Tactical Planning Execution Plan for all Strategic needs – What to do for each need

22. Four Pillars Of Execution Is At The Core Of NPD Project Management Success Think-Plan-Do Framework for NPD Business Model Requirements Risks Milestones • Task management • Urgent Vs important • Visual dashboards • Reduce waste

23. The Four Pillars Of Execution That Enable NPD Success • Identify Risks & Plan Mitigations • Optimize Resource & Capital Usage • Minimize “Do-Over” Loops • 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

24. NPD Strategic Project Need 1 Business Case / Business Model Canvas Solution Unfair Advantage Customers Problem Statement Unique Value Proposition • 😓 🏬 👤 • 🍯 🎁 • Product & Support • Alternative • Types • Persona • The secret sauce • Direct • In-Direct • Job To Be Done • Gains • Pains Key Resources Channels • 🚚 🔧 • Awareness • Sale • Delivery • Drivers • External Support 💵 Costs 💸 Revenues • Gain New Markets / Leadership • Gain Price vs. Value Created • Total Cost Of Ownership • Pc Price Reduction Capture Your Assumptions In Defining The Business Model & Experiment To Validate Them

25. NPD Strategic Project Need 2 Product Requirements COULD MUST SHOULD DIFFERENTIATE MUST DO Delight • Development Target • Stretch Targets For Internal Teams • Creates Wow or Significant Lead Over Competitors If Achieved • Critical To Core Value Proposition • Cannot go to market without this VALUE AVOID EVALUATE Expected Trivial Extreme EFFORT High Priority Medium Priority Low Priority Product Requirements Should Be Prioritized And Communicated In A Way That The Product Development And Marketing Requirements Are Always In A Synch

26. NPD Strategic Project Need 3 Risk Management PLAN FINANCE DEVELOP MARKET High MITIGATE NUISANCE Very Likely FAILURE RISK IMPACT & PROBABILITY PROBABILTY INSURE IGNORE Rare Low SUCCESS Start Launch Trivial Extreme IMPACT NPD SCHEDULE You Can Beat The Odds And Build A Thriving And Rewarding Venture By Learning To Recognize And Mitigate Risks Effectively

27. NPD Strategic Project Need 4Milestone Management Jul’ 16 Aug’ 16 Sep’ 16 Oct’ 16 Nov’ 16 Dec’ 16 Marketing Requirements Gate 1 Priority : High Owner: DS Planned Dt : Sep’ 16 Estimated : Nov’ 16 Gate 2 Concept Feasibility Launch Partnership Gate 2 Business Case Gate 3 Prototype Gate 2 Gate 3 DFMEA 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

28. Entroids – Think-Plan-Do Framework For Practical Engineering NPD Tier 1: Strategic Project Needs Milestones, Risks, Requirements & Business Canvas Tier 3: Focus On Actions What needs to be done now to achieve your major tasks Tier 2: Tactical Planning Execution Plan for all Strategic needs – What to do for each need

29. PLAN Major Tasks Jul’ 16 Aug’ 16 Sep’ 16 Oct’ 16 Nov’ 16 Dec’ 16 Major Task 1 Cabinet Redesign Dwgs Priority : High Owner: DS Due Dt : Dec’ 16 Critical Components Major Task 2 Prototype Build Major Task 3 Lab Tests Major Task 4

30. Entroids – Think-Plan-Do Framework For Practical Engineering NPD Tier 1: Strategic Project Needs Milestones, Risks, Requirements & Business Canvas Tier 3: Focus On Actions What needs to be done now to achieve your major tasks Tier 2: Tactical Planning Execution Plan for all Strategic needs – What to do for each need

31. DO Current Actions VK 6/29 CG 7/2 • Identify Which Dimensions Are Critical • What would be the boundary conditions from Marketing Requirements • Receive Supplier Drawings For Critical Components VV 6/18 • Assess Competitive Cabinet Drawings & provide to Engineering

32. Navigate & Zoom In Through Details Effectively Requirement

33. What Does Entroids Bring To Your New Product Development ? • 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

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