2M2L: Cost, Schedule, Quality: Pick...4?

TA
by Terry Arbaugh2 views·Updated Jun 24, 2020

When faced with the choice of choosing two options between Cost, Schedule and Quality, many people choose...four? Watch this short video to find out what other options must be considered during the new product introduction phase and what is the most important thing to consider when launching a new hardware product.

Audio TranscriptAuto-generated

  1. welcome back to two minutes to launch.
  2. My name is Terry, and today I'll be talking about
  3. the manufacturing triangle.
  4. And the question I'm gonna answer today is how do
  5. you choose between cost, schedule and quality when you can
  6. only pick, too?
  7. Let's jump right into the variables.
  8. I'm gonna start with costs because everyone starts with cost
  9. and almost everyone chooses.
  10. Cost is one of their top one or two items
  11. here in this selection, it's the easiest thing to compare
  12. and measure.
  13. And if you're selling hardware, it's really what the whole
  14. business model is built off of.
  15. So you've gotta have a great understanding and handle on
  16. your products.
  17. Cost. The second variable is schedule, and it's the second
  18. easiest thing to measure next to cost.
  19. And there's almost always a an event, a trade show,
  20. a Christmas selling season.
  21. There is always some date or event driving that schedule
  22. that you just got a hit.
  23. So cost and schedule Oh, we've already picked to.
  24. That should be the end of discussion, right?
  25. Well, what about quality Now?
  26. Quality turns out, is really just a given from any
  27. customer that selects and manufacturing partner.
  28. They really expect them to build and ship a quality
  29. product. Yes, they've already chosen cost and schedule.
  30. But quality is a given.
  31. Um, so now where does that leave us?
  32. We're balancing all three of these variables nobody really ever
  33. picks to.
  34. Even though the old saying is so common.
  35. And turns out, customers also like to order off menu
  36. and add another item, which is flexibility.
  37. And when I'm talking about flexibility throughout any product development
  38. process, some changes there going to be required, almost no
  39. product ends up the way it started out.
  40. So when you're making these choices between competing priorities, it's
  41. really important that you understand that timing and the impact
  42. of these changes earlier in the process is easier to
  43. absorb in implement changes, then later in the process.
  44. And when I say flexibility, it's things like maybe you
  45. can reduce your product cost, but you're gonna have to
  46. push your launch date back a little bit.
  47. Or you can make really huge improvements in quality, but
  48. you're gonna have to absorb a little bit of a
  49. cost at her.
  50. So now we're balancing cost, schedule, quality and flexibility throughout
  51. a product development process, and if you asked me what
  52. is the most important thing to consider?
  53. I'm actually gonna go off menu as well.
  54. And I'm gonna say communication communication while you're making all
  55. these agile changes is really key to keep all stakeholders
  56. aligned and make sure that everybody very clearly understands the
  57. impact of this agile decision making on cost, schedule and
  58. quality. That's been two minutes to launch for today.
  59. Thanks again for watching please like and share this post
  60. and follow.
  61. See cop here on linked in See you next time.