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Case Study: Create Project Plans to Focus Product Developmen

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Jing Tu

on 12 November 2014

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Transcript of Case Study: Create Project Plans to Focus Product Developmen

Case Study: Create Project Plans to Focus Product Development
Aggregate Project Plan
Companies map out and manage a set of strategic development projects

Help companies to approach new product development process
Example: PreQuip
Large scientific instrument company
Product Lines:
Mass spectrometers
Gas and Liquid chromatographs
Customers:
Chemical companies
Oil refineries
PreQuip: How to select and sequence projects
Identify the existing
resources capacity
Estimate the average time and resources needed for each project type based on past experiences -> Amount of engineering hours
Determine the desired mix of projects -> allocate available resource
"Steady Stream approach"
Aggregate Planning Steps:
Define project types
Breakthrough-growth
Platform-maturity
Derivative
R&D
Partnered
Identify existing projects and classify by project type
Estimate the average time and resources needed
Determine the desired mix of projects
Estimate the number of projects that existing resources can support
Decide which specific projects to pursue
Work to improve development capabilities
Team 5: Jing,Tobias,Florian,Yingying, Weihao,Hao
New Product Development and Benefits
Cruel Fact:
PreQuip used project map to manage its development activities

Visual representation

Before: 30 projects
After: 11 projects
PreQuip: Benefits gained from aggregate planning
PreQuip: Project map
Agenda
New product development
Aggregate project planning
Steps
Example: PreQuip
Selection and Sequencing
Process map
Benefits
Example: Hill-Rom-mature industry
Selection and Sequencing
Process map
Benefits
Entire company V.S. individual product lines
Expansion: bigger Picture
• Improve resource productivity
Commercial development productivity improved by a factor of
three
• Manage the set and mix of projects
by categorizing projects
• Improve the allocation of resources
• More emphasis on the long term instead of
the short term
• Shorter product development cycle time,
lower unit cost, higher product quality,
and more satisfied customer

Entire company V.S. Individual product line


Control of resource allocation
Clear view to see existing gaps in the development
More available information at the point of decision making
Ability to reveal development capability gaps
Required skills of contributors
Time consuming initial phase
Individual product lines
Entire company

Less departments involved
Dealing with short term pressure
Not enough time on company's strategic mission
No single project defines a company's future











'Management needs to create a set of projects that is consistent with the company’s development strategies rather than selecting individual projects from a long list of ad hoc proposals'
Manufacturing company: Long-term competitiveness depends on the success of new product development
New product development holds hope for
Improving market position and financial performance
Creating new industry standards and new niche markets
Renewing the organization
Bigger picture
“The purpose of an aggregate project plan is to ensure that the collective set of projects will accomplish the
development
goals and objectives and build the organizational capabilities needed for ongoing
development
success.”
Example: Construction project

Map their projects based on
complexity
resource consumption
risk
expected profitability
Example: Hill-Rom
A leading electric-bed manufacturer
-a relative stable and mature industry
Customer:
A single hospital or nursing room
Product line:
Electric beds
Whatever the customer wanted-significant commitment of development resources
Hill-Rom: How to select and sequence projects
Focus on hospitals and largely withdraw from nursing home segment
Limit the product line by developing platform product- Centra & Century
Hill-Rom: Benefits gained from aggregate planning
Introduce new technologies and new product features into the market faster
More systematically, directly affecting patient recovery and hospital staff productivity
Less chaotic development cycle
Less unit cost
Higher product quality
More satisfied customers
Hill-Rom: Project map
Before: too many low-payoff derivative projects
After: developing two platform products
Most companies fail in new product development process
Why?
Lack of aggregate plan
Aim to reduce cost and maintain current market position
Sequence project:"second wave" approach
Have you ever invested development dollars in the wrong products?
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