Integrated Product Development

Question 1

Explain the basic concept and application of development funnels

Answer 1

The development funnel is a description of how an organisation identifies ideas, screens, reviews, and finally converges on the content of development projects being funded.

Managing the DF involves 3 different challenges:

1. Widen mouth: To be effective the organization must expand its knowledge base to create new products and processes. This can be done through:
   
   1. Generating ideas from all functions
   2. Research
   3. Partnership with universities
2. Narrow neck: After generating ideas, screening must be conducted to focus resources on the most attractive projects.
3. Ensure that selected projects deliver on set goals

Question 2

What dimensions define the creation of a development funnel for a company?

Answer 2

Three dimensions define the DF for companies:

1. The firm’s process for creating development projects: where the ideas come from (ex R&D)
2. How the firm converges to a focused product concept and design: how decision making, review and control procedures are managed.
3. The firm’s commitment to the market: How to test, screen and introduce products to the market.

Question 3

What three different models for development funnels do W&C talk about? Explain them

Answer 3

3 Different DF models

R&D driven funnel – Model 1

• Focused on generating many innovative ideas for new technologies, products and processes
• Managed through formal screenings, either by peers or top management
• Projects compete, survival of the fittest
• Additional resources added after passing a screening
• Found in large companies

Screening stages

1. Early screens: focus on technical feasibility & proof of concept
2. Later screens: focus on manufacturability & fundamental economics
3. Final screens: focus on customer preferences, distribution channels and financial returns

Drawbacks

• costly to dedicate resources (R&D) to generate many ideas which never come to fruition
• idea commitment (R&D) makes it hard to kill projects
• too many products on the market leads to cannibalism

A few big bets funnel – Model 2

• Firms focus on a single big bet
• Ideas from many different sources, they collapse quickly and are screened and merged with other ideas
• Common in start-up firms and big firms in slow moving markets
• Top management make key decisions and are involved continuously through reviews
• Decisions are based on market potential and financial returns
• Project is released ASAP

Drawbacks

• Inefficient when used by large firms with multiple market segments, may be viewed as conservative and no longer innovative
• Problematic to use in a changing and complex environment
• Proposed model – Model 3*
• Several projects can be carried out at the same time, 1 or 2 platform projects and the rest derivative projects.

Consists of 3 phases and 2 screenings:

P1: wide mouth, gathering ideas from R&D and other sources.

• *S1:** determine which additional information is needed to keep on developing the concept “completeness & readiness” review, performed by peers and management.
• *P2:** the best ideas are analyzed and prepared for a go/kill screening.
• *S2:** go/kill decided by senior management.
• *P3:** Concepts that pass screen 2 are given resources with the expectation to reach the market.

Question 4

W&C discuss a framework for development, explain the basic elements of the framework

Answer 4

Basic elements of the framework

1. Project definition: scope, boundaries and objectives.
2. Project organization & staffing: who will work on the project, individual responsibilities, reporting relationships.
3. Project management & leadership: who leads the project, how are tasks managed and sequenced.
4. Problem solving, testing & prototyping how process steps are carried out, how testing and prototyping will be used in the project.
5. Senior management review & control: how senior management will review, evaluate and modify the project.
6. Real time/ midcourse corrections: how to reschedule or redefine remaining tasks when necessary.

Question 5

What are the theme and principles in an effective development process?

Answer 5

Themes and principles in an effective development process

• Customer focus: both on current and future customers.
• Discipline: critical since projects are complex, but too many rules will stifle creativity.
• Coherence in detail: e.g. coherence between senior management connection and phases of a project.
• Fit with mission: the process used should fit the market.
• Sharing the pattern: Creates a shared platform for the whole firm to communicate.

Question 6

Explain the following concepts: Stage-Gate game plan, Tollgate, Milestone

Answer 6

The Stage-Gate^TM game plan

• Views NPD as a process and breaks it into a series of stages/phases
• Each stage is preceded by a gate (go/kill points) which serves as quality control
• Gates have a common format:
  
  • Inputs: prescribed list of deliverables that PL must present to the gate
  • Criteria: set of hurdles/criteria that the project is judged on
  • Outputs: A decision to go/kill/hold/recycle with an approved action plan

Tollgate

• A tollgate is a review of the business case and profitability of a project.
• Business-like decision point where it is possible to stop the project.
• The decision is made by the project sponsor.

Milestone

• A milestone is a decision point in a project where the progress and results of the overall project are reviewed.
• The decision to pass a milestone is made by the project team.
• The outcome of the milestone review serves as an input to the tollgate decision

Question 7

What are some successfull criteras for a cross-functiional team?

Answer 7

Success criteria for CF-teams

• Less than 10 members in the core team
• Team members volunteer to the project and work full time
• Team members stay in the project from concept to market introduction
• Team members report primarily to the project leader
• All key functions are part of the team from the beginning
• Team members are located within discussion distance

Question 8

How does Galbraith define the concept of uncertainty?

Answer 8

Concept of uncertainty according to Galbraith

• Uncertainty is the difference between the level of knowledge needed to perform a task and the information possessed by the organisation.
• The greater the task uncertainty, the greater the amount of information that must be processed among decision makers during task execution.

Question 9

Integration Mechanisms to Overcome Barriers to Cross-Functional Integration
Organisational Mechanisms

Answer 9

Mechanisms for collecting information, deciding, and disseminating information

• Hierarchy of Authority: a structure to create responsibility roles with authority.
  
  • Serves as conflict solvers, relayers of information, and coordinators of interdependent roles.
  • Serves the purpose of minimizing the number of information channels needed.
  • Minimize connections in the “hierarchy tree”, helps reduce uncertainty.
• Rules, programs and procedures: putting a structure in place to help with decision-making in the day-to-day work. Decisions are made in advance to minimize resource demand in future scenarios.
• Planning and Goal-setting: in order to align all work with overall strategy and objectives and thus avoid sub-optimisation.
• Narrowing Span of Control: the span of control is the number of subordinated an authority in the hierarchy can effectively handle. The span of control should be managed so that there are fewer subordinates with increasing uncertainty.

Question 10

What are the two proposed strategies for handling overload of the hierarchy due to
exceptions?

Answer 10

Increase the Capacity to Process information:

• Lateral relations – allow for horizontal communication and decision-making at lower levels where the information is available.
• Invest in vertical information systems – make info available without having to go one step at-a-time.

Reduce the need to process information:

• Environmental Management – managing the organisational environment e.i. supplier acquisitions etc. to have closer ties to the supply network.
• Creation of Slack resources – not fully utilising resources in order to have some available when problems occur.
• Creation of self-contained tasks – distributing authority in order to reduce the need for authorisation from nodes higher up in the hierarchy.

Question 11

Explain what differentiation and integration means in the context of organizing product development, how might the mindsets of e.g. manufacturing vs R&D differ?

Answer 11

Differentiation & integration

• Differentiation: Defined as the state of segmentation of the organization into subsystems, each which tend to develop particular attributes in relation to the requirements posed by its relevant external environment
• Integration: process of achieving unity between the subsystems

Manufacturing and R&D are very different yet must function together

Question 12

Explain the modes of upstream-downstream interaction as well as the upstream/ downstream capabilities

Answer 12

Upstream & downstream interaction

• Serial mode of interaction
  
  • Downstream waits to begin until the upstream group has finished its design it is then transmitted to the downstream group in a one-shot transmission of information.
  • This one-way “batch” style of communication may not convey all the important nuances and background to the final design.
• Early start in the dark
  
  • Links the upstream and downstream group in time but continues to employ a batch style of communication.
  • This mode of interaction often occurs where the downstream group faces a deadline that it feels cannot be met without an early start of the project.
  • The upstream group communicates only at the end of its work, leading to surprises in design or confusion.
• Early involvement
  
  • Upstream and downstream groups engage in an interactive communication. Still the upstream group is involved in the design of the part well before the downstream group begins it work.
  • While the downstream group develops insight about the emerging design and participates through feedback, it waits until the design is complete before undertaking problem solving in its own domain.
  • Downstream group benefits from early involvement in 2 ways:
    
    1. The part design reflects a better understanding of the issues confronting the process engineers than in mode 1 or 2.
    2. The mold designers themselves have better sense of the issues and objectives in the design.
• Integrated problem solving
  
  • Links the upstream and downstream groups in time and in pattern of communication, downstream engineers use information and insight from interaction to get a flying start on their own work.
  • This changes the content of the downstream work in the early phases of upstream design, also likely to change the content of communication between the groups.
  • Whereas in mode 3 the content of feedback from downstream engineers must rely on past practice/ knowledge, under mode 4 that feedback will also reflect actual practice in attempting to implement the upstream design.

Upstream/ downstream capabilities

Upstream Capabilities

• Downstream friendly solutions – ex use DFM to make manufacturing easier
• Error-free design – eliminate human errors, ex confusing a 6 with a 9
• Quick problem solving – problems which require adjustment upstream are solved quickly

Downstream Capabilities

• Forecasting from upstream clues – start planning and outlining manufacturing processes earlier
• Managing risk – weighing to risk of making a change in the product to starting Upstream Capabilities early
• Coping with unexpected changes – changes always occur, knowing of these earlier may help solve them effectively

Question 13

What are the barriers to overcome in cross-functional integration?

Answer 13

• Competence: in terms of technical know-how, language skills or experience -> barrier for:
  
  • Understanding one another
  • Willingness to cooperate
• Status: difference in status due to time-at-company or hierarchical position leads to resistance for communicating. Ex. Status gap between design and production engineers.
• Culture: cultural differences on personal level as well as workplace level can lead to barriers of integration and communication.
• Organisational Affiliation: the fact that people work in teams can create a sense of belonging to that team and can lead to reluctance to share information and cooperate with others.
• Geographical Distance: the physical distance between people in an organisation is a natural barrier for integration and cooperation between individuals or groups – especially if they have never met or spoken.
• Goals: different personal or professional goals within teams can create a barrier since sharing and collaboration may be unequally beneficial and therefore sub-optimisation may occur.
• Time Pressure: when time is a constraint teams and individuals need to make short-term prioritisations. Cross-functional collaboration is often time-efficient in the long run but can be time-consuming in the short-term and thus create a barrier.
• Information Availability: lack of availability of information needed for cooperation might lead to a barrier for integration and cooperation.

Question 14

What are the different aspects of communication and their range of choices?

Answer 14

4 aspects of communication:

• Richness of media
• Frequency
• Direction
• Timing

Question 15

Describe the 4 different types of development teams as well as their strengths and weaknesses

Answer 15

Four types of development teams

Functional team structure

• Properties:
  
  • Members report to functional manager
  • Temporary – members may spend less that 10 % of their time on project
  • No project manager or liaison personnel
  • Limited opportunity for cross-functional integration
  • Appropriate for derivative projects
• Strengths:
  
  • The authority of resource allocation is the same as responsible for tasks.
  • Career advancement is aligned with project performance.
  • Ensures specialized expertise tackles technical issues.
• Weakness:
  
  • Limited coordination and integration.
  • Individual contributions tend to be judged on project outcome
  • Technical issues tend to be solved in the standard “best technical” manner instead of considering customer requirements.

Lightweight team structure

• Properties:
  
  • Members report to functional manager
  • Temporary – members may spend less than 25 % of their time on project
  • Has project manager and liaison personnel
  • Manager typically mid/Jr. level manager
  • Appropriate for derivative projects
• Strengths:
  
  • The authority of resource allocation is the same as the one responsible for tasks.
  • Career advancement is aligned with project performance.
  • Ensures specialized expertise tackles technical issues.
  • Improved communication and integration compared to functional.
• Weaknesses:
  
  • Individual performance on projects tend to be evaluated in isolation of overall project performance.
  • Technical issues tend to be solved in the standard “best technical” manner instead of best situation-based manner.
  • Lack of power over resources for the lightweight project manager.

Heavyweight team structure

• Properties:
  
  • Members are co-located with project manager
  • Project manager is senior and has authority over resources and evaluates them.
  • Temporary – full-time dedication of members.
  • Appropriate for platform projects
• Strengths:
  
  • Improved communication
  • Strong identification with and focus on project
  • Focus on cross-functional problem-solving
• Weaknesses:
  
  • Risk of expanding bounds of projects.
  • Risk of imbalance between needs of project and needs of the org.
  • Risk of outcome having less technical excellence.

Autonomous team structure (tiger team)

• Properties:
  
  • Members co-located
  • Permanent – full-time dedication of members.
  • PM is senior manager
  • PM has full authority and exclusive control over eval./allocation of resources.
  • Own policies and procedures that may be different from rest of org.
  • Appropriate for breakthrough or major platform projects.
• Strengths:
  
  • Focus of the team on the outcome of the project.
  • Good cross-functional integration.
• Weaknesses:
  
  • Tendency to expand boundaries of projects.
  • Difficult to fold back outcome and team members into the organisation.

Question 16

What management actions can be taken for handling heavyweight teams?

Answer 16

1. Staffing: Core members each represent a primary function and collectively form a management team to provide leadership for their respective functions.
2. Project Charter: a clear statement of the vision of the project outcomes in terms of broad performance objectives.
3. Project Leadership: strong leadership is needed; the PM has many roles:
   
   • Direct market interpreter: collects info from customer
   • Multilingual Translator: fluent in “language” of everyone involved in project
   • Direct Engineering Manager: direct involvement and management of engineering activities.
   • Program Manager “in motion”: on-site management – face-to-face
   • Concept Influencer: handles conflict, guards the concept and makes final decisions.
4. Team Member Responsibilities
   
   • Functional Hat Responsibility
   • Team Hat Responsibility
5. The Executive Sponsor: Responsible Senior Manager who supports and enables the PM.
6. The Contract Book: detailed plan for how to reach the goals and objectives set for the project.

Question 17

What is the purpose of the heavyweight contract book, what are its contents?

Answer 17

Heavyweight team contract book

Purpose is to define in detail the basic plan for achieving the goals and objectives of the project.

Content:

• Executive Summary
• Business Plan and Purposes
• Development Plan
  
  • Schedule
  • Materials
  • Resources
• Product Design Plan
• Quality Plan
• Manufacturing Plan
• Project Deliverables
• Performance Measurement and Incentives

Question 18

What team structures existed for the different projects in Applied Materials?

Answer 18

Team structures in Applied materials project

8100
Mainly a functional structure but with some elements form a lightweight structure based on:

• People being organized functionally
• Problems with integration and coordination, ex handover to manufacturing was problematic.
• There is a PM but with limited authority in Dan Mayden
• There is problem with coordination but there are some efforts for it – activity networks used.
• Substantial after market re-engineering is a sign of developing according to previous technical best practice and not listening to customer requirements

8300
A lightweight structure was used for this project based on:

• The project being a derivative type
• There was a group set up under Mayden composed of people from different functions – liaisons
• PM – Mayden – had advanced somewhat and could be seen a Mid-level manager
• Problems with coordination and integration between subassemblies

5000

Mainly a Heavyweight structure but with a hint of the Autonomous structure based on:

• PM – Mayden – is a senior manager in this project
• PM – Mayden – has direct control over resources allocated to the project
• Team members are committed full-time to the project
• The project has its own incentive reward system
• Regular cross-functional meetings

Question 19

Explain the differences of a Project leader/manager vs a line manager

Answer 19

Project leader vs Line manager

• Project Leader
  
  • What to do
  • When to do it
• Line Manger
  
  • How to do it
  • Who will do it

Question 20

Explain the following concepts in regards to organizational management: Formalization, Standardization and Centralization

Answer 20

• There is no one best way to organize, not all the ways to organize are equally effective. A firm’s size and structure will impact its rate and likelihood of innovation.
• Formalization: The degree to which the firm utilizes rules and procedures to structure the behavior of employees.
  
  • Can substitute for managerial oversight, but can also make firm rigid
• Standardization: The degree to which activities are performed in a uniform manner.
  
  • Facilitates smooth and reliable outcomes but can stifle innovation.
• Centralization: The degree to which decision-making authority is kept at top levels of the firm OR the degree to which activities are performed at a central location.
  
  • Centralized authority ensures projects match firm-wide objectives and may be better at making bold changes in overall direction.
  • Centralized activities avoid redundancy, maximize economies of scale, and facilitate firm-wide deployment of innovations.

But centralized authority and activities might not tap diverse skills and resources, and projects may not closely fit needs of divisions or markets

Question 21

Explain mechanistic and organic structures

Answer 21

• Mechanistic structure: Designed so that functions and individuals behave in a predictable way and can be held accountable.
  
  • High formalization and standardization
    
    • Good for operational efficiency and reliability
    • Minimizes variation – may stifle creativity
• Organic structure: Designed so that functions and individuals can behave flexible and respond quickly to frequently changing and unusual situations.
  
  • Low formalization and standardization
    
    • Encourages creativity and experimentation
    • Low consistency and reliability in manufacturing

Question 22

What were the 5 important changes between the first and second time in the lean PD game

Answer 22

Five Important Changes Between First and Second Lean Product Development Game

1. Cross-functional team: integrate cost accountant into team
2. Customer Focus: early customer involvement
3. Early first prototype
4. Customer directly involved with entire team
5. Clear target definitions from the start

Question 23

What are the value streams gained from lean product development?

Answer 23

The Knowledge Value Stream: is about how knowledge is built up in the organisation and closing knowledge gaps. Knowledge building is needed in order to meet future customer needs/demands with good products/solutions.

• Closing the knowledge gap is about acquiring the knowledge necessary in order to produce the products needed to satisfy the customer in the future. The gap needs to be closed before the demand arises.
  
  • (An example of a framework for the knowledge gap and how to work with it is the Technology Readiness Level by NASA.

Product Value Stream: is about pulling the right knowledge necessary from the knowledge value stream and applying it at the right time – not about closing gaps.

• Knowledge should be ready and available at the time and not need to be acquired.
• By using ready and available knowledge developing successful products that meet customer becomes much easier.

Desired Outcome: when using the value streams the goal is to front-load instead of backloading.

• Back-loading: building and acquiring knowledge along the progress of a project when need arises. Knowledge acquired along the way has little potential to influence the project.
• Front-loading: having necessary knowledge is ready and available prior to the need arising. Information available prior to project start has significant potential to influence.

Question 24

What are the principles in Agile?

Answer 24

Agile principles

• Individuals and interactions over processes and tools
• Working software over comprehensive documentation
• Customer collaboration over control negotiation
• Responding to change over following a plan

Question 25

Describe the different roles and processes in Scrum

Answer 25

Scrum

The most common agile methodology, consists of:

• Product owner: responsible for prioritization of work packages (‘stories’).
  
  • Clarifies what’s most important from customer’s POV
  • Prioritizes the stories in the backlog
  • Does not tell the team how to carry out the work or what to do first
  • Communicates with:
    
    • Customers
    • Stakeholders
    • Other POs
• Scrum master: keeps track of the rules that the dev. team has decided and is a….
  
  • Facilitator:
    
    • Facilitates the dev. team’s self-organizing process
    • Can act as a leader but strives to transfer leadership to the dev. team
    • Facilitates meetings
  • Coach: empowers the team and its members
• Sprint planning: The dev. team selects and commits to content of a spring backlog; a sprint goal is formulated to reflect the contents of the sprint backlog.
  
  • Facilitated by Scrum master
  • Based on PO’s prioritization
• Sprint:
  
  • No changes are made in the backlog
  • Short and daily stand-up meetings are held where members discuss what they will do and what problems they may face.
• Sprint review: Concerns change and consists of two parts…
  1. The demo:
  
  • An open demonstration of working product increments
  • PO and stakeholders are welcome and may give feedback

2. The retrospective:

• A session for reflection for the dev. team
• May produce improvement items to be planned for coming sprints
• Only the dev. team and Scrum master are welcome
• Product backlog: Ordered list of items that are to be included in the product

Question 26

Describe the design-build-test-cycle, what are its phases, what skill does each phase require and where does the skill reside? What are the challenges with the DBT-cycle?

Answer 26

Describe the design-build-test-cycle Principle and Its Phases and Challenges

The design-build-test cycle is a three-step iterative process aimed at reducing the gap between target and current design. The steps are described below:

• Design: establishing the goals for the problem-solving process by framing the problem, and alternatives are generated for how the gap could be diminished.
  
  • Skill: Understanding of customer needs and current performance level of products/services. Resides within the marketing function and sometimes with support of R&D.
• Build: a prototype is built for each of the alternative designs generated in the design phase.
  
  • Skill: Engineering skills in order to develop the solution, Reside within the R&D function.
• Test: each of the different prototypes are tested. If target values are met the process stops, if not then another iteration is carried out and can lead to goals being changed for the next iteration.
  
  • Skill: Skills needed for testing and verifying results, resides in the lab under R&D but could also be in production function.

Challenges:

• Framing the problem accurately: data suggest that customers perceive noise from a device as something negative, however it’s not clear whether it’s preferable to remove the noise or change it to something that sounds different.
• Testing requires skills: to get good info from testing execution the testing phase requires careful planning and execution.
• Testing is subject to noise: there are potential noise factors involved in the testing phase and they need to be dealt with appropriately.
• Fidelity: issue of testing conditions not being the same as real life conditions.

Question 27

Describe Traditional prototyping, Periodic prototyping and Rapid prototyping

Answer 27

Traditional prototyping

Used by engineers to aid technical development, Four steps:

1. Concept, preliminary design
2. Design verification
3. Engineering verification
4. Pilot production verification

Consequences of traditional prototyping:

• Reinforces functions (design and manufacturing) and limits functional overlap.
• Limits how prototype is tested, tend to be narrow aimed at resolving specific, functional issues.

Periodic prototyping

• Adds a set and cyclic schedule for when prototyping is to take place and is to be followed by all functions invovled.
• Prototype built even if all functions aren’t ready with their “parts”, each function is thus responsible for the outcome.
• Generates system view of product driven by cross-functional integration
• Works best for platform projects or when cross-functional integration is key to success.

Rapid prototyping

The concept of RP is that prototypes are built using existing techniques and tools, layer by layer, until complete and the final form of product achieved.

Characteristics:

• Technical focus
• Engineering control
• Rapid turnaround
• Flexible specs

This type of prototyping is good for breakthrough projects and have many potential benefits:

• Manufacturing problems are easily overcome
• Enhanced feedback from fast response
• Creative, innovative results

Common forms of building material and forms

• Solid (LOM and FDM)
• Liquid (SLA, SGC and DDM)
• Powder ( DMLS, LDT and EBM)

Question 28

Describe the traditional and managerial purposes of prototyping

Answer 28

Traditional prototyping

The purpose to demonstrate to the organization that:

• The design has outstanding quality
• High Levels of manufacturability

Prototyping as a management tool

• Feedback and Learning: Prototypes create insight about a lot of things. Individual functions as well as the broader organization can learn which choices made thus far are likely to achieve the intended results.
• Information and Sharing: serve as a common language for different individuals and functions to understand and discuss a product and thereby improve it.
• Maniging the development Schedule: by managing the prototyping cycles managers can control the rate of convergence and cycle time of overall development process.
• Outside Evaluation provides credibility in the marketplace through enabling integration with suppliers and customer.

Question 29

What are the five patterns of organizational learning?

Answer 29

Learning from development is probably the hardest thing an organization can do. Companies usually “don’t have time” to evaluate afterwards and many people involved earlier in the project have moved on to the next one. It is also important to build an environment where learning is encouraged.

Five patterns of organizational learning

1. Learning as a team process: important in order to create a shared understanding within the organization and that learning cuts across functional borders
2. A model of the process: having mapped the development process eases identification of areas to improve.
3. Data and analysis: It’s important to base decisions on data.
4. Search for patterns: compare the problem with other development projects -> make sure the problem is not coincidence.
5. Root causes: here it is important not to jump to conclusions, compared to peeling an onion in the book.

Question 30

What approaches can companies use to build development capabilities?

Answer 30

Whole company must be involved, and small steps used, no big steps!. The mind-set of the organization is crucial, mutual trust is important.

Four approaches relevant in different situations

Creating a Development Strategy: careful selection and management of projects, thus focusing the attention and resources of the development efforts.

Good for:

• Environments with complex product lines and technical/market opportunities
• Increasing development capability with limited resources

Risks:

• Failure to reduce number of projects
• Planning non-value adding exercises

Changing the Development Process: introducing a new pattern for the development process – enables staff to see new opportunities and bring new ideas to the table.

Good for:

• Large organizations & complex product lines
• Functional organizations with history of sequential development

Risks:

• Difficult to implement on ongoing projects
• Adds bureaucracy to “cure” existing bureaucratic process

Establishing building block tools & skills: by dividing the development process into different stages (blocks) and enhancing tools and skills within each block separately and in parallel, the overall performance can be increased.

Good for:

• Smaller companies with lots of teamwork
• Parts where molds and dies are crucial

Risks:

• Not spreading knowledge “local optimization”

Pursuing a demonstration project: without having the entire development organisation at risk a pilot study can be used on one specific project in order to test, demonstrate, and learn from a practical experience.

Good for:

• Well-defined technical or market opportunity
• When significant development improvement is needed for the project to succeed

Risks:

• Failure to spread knowledge to rest of organization
• One-time only mentality

Question 31

What is a platform strategy and what different views can be held within it?

Answer 31

Platform strategy

“A platform is a collection of assets that are shared by a set of products”. The standardization of assets.

e.g. multi-brand platform strategy that volkswagen emplys (sharing components between the different brands)

The views:

• Component view: the assets shared are the part designs of a product, the fixture and tools needed to make them, the circuit designs, and the programs burned into programmable chips or stored on disks.
• Processes view: the assets shared are the equipment used to make components or to assemble them into a product and the design of the associated production process and supply chain.
• Knowledge: the assets shared are design know-how, technology applications and limitations, production techniques, mathematical models, and testing methods.
• People and Relationships: the assets shared are teams, relationship among team members, relationship between team and the rest of the organisation, and relationships with a network of suppliers.

Question 32

Explain the concept of modularization strategy

Answer 32

Modularization strategy

“A complex product or process from smaller subsystems which can be designed separately and function together” Ex. Lego.
Maximum product offering with minimal variation. Modularization is about standardization of interfaces.

Benefits of modularization:

• Managing product variety
  
  • Great variety, mass customization
  • produce more of same component -> cheaper
  • Smaller number of parts to handle
• Reduces task complexity
  
  • Tasks can be carried out in parallel if interfaces don’t change
• Creating strategic flexibility, respond to external changes

Question 33

Explain the purpose and principles of DFA including handling and insertion

Answer 33

Purpose and basic principles of DFA

Purpose: Aims to optimize assembly process to make it quicker and eliminate errors since it usually equates to 50% of manufacturing costs and 40-60% of production time.

Principles:

1. Obtain the best information about the product or assembly (drawings, views, prototypes).
2. Take the assembly apart, assign an identification number to each item as it is removed.
3. Reassemble, fill in worksheet, and evaluate elimination potential of each component based on:
   
   1. Uniqueness of material
      
      1. Does it have to be of a unique material with respect to ALL other components?
   2. Independence of other components
      
      1. Does component move with respect to ALL other components?
      2. Must part be separate from ALL other components to enable assembly?
4. Estimate the manual assembly time, the assembly cost, and the theoretical minimum number of parts.
5. Calculate Design Efficiency (DE)
   
   • DE = 3 * NM / TM
     • NM – minimum number of components
     • TM – cumulative operation time
6. Redesign Product and Calculate new Design Efficiency

Handling and insertion

Handling encompasses manual handling and manual insertion.

• Manual Handling
  
  • 1/2 hands needed
  • Orientation/alignment
  • Ease of handling – size, weight etc.
• Manual Insertion
  
  • Added operations
  • Ease of positioning and tool operation
  • Ease of insertion

Question 34

Topic report 1 - Explain the who,why and where in R&D outsourcing as well as the benefits and downsides

Answer 34

Characteristics of companies that outsource R&D (Who)

• High-tech industries (pharma, automotive)
• Large and experienced companies more likely, smaller firms can benefit too
• Modular and transferable tech companies (e.g. software)

Why are companies deciding to outsource R&D (Why)?

Previously, R&D was driven by cost reductions, today the main reasons are:

• Enable market growth and gaining more flexibility in the R&D process
• Getting access to talent outside the company, local markets catering to its customers
  
  • Reducing complexity and transaction costs

Where do companies tend to outsource R&D operations to (Where)?

Important areas:

• Knowledge infrastructure
• Specific region skills
• Country risks

What are the benefits and downsides of outsourcing R&D (Pros and Cons)?

Benefits:

• R&D lead times can be shortened
• Firms gets access to global influence from other cultures and access to local markets
• Firms can utilize specialized, best-in-class providers for complex tasks

Downsides:

• It is difficult to derive IP rights
• It is harder to benefit from knowledge gains during the R&D process and risk for interdependence
• Competitors can more easily mimic R&D processes

Question 35

Topic report 4 - What is Knowledge management, what is its objectives? What are some critical aspects for successful Knowledge Management?

Answer 35

What is knowledge management?

Knowledge Management is an explicit and systematic method for applying knowledge in order to increase and maximize the knowledge-related effectiveness within organizations.

Objectives:

1. Create knowledge repositories.
2. Improve knowledge access.
3. Enhance knowledge environment
4. Manage knowledge as an asset.

Some critical aspects for successful KM

1. Standard, flexible knowledge structure
2. Motivate employees to create, share and use their knowledge
3. Encourage knowledge transfer through all channels
4. Knowledge-friendly company culture
5. Senior management support

Question 36

Topic report 5 - Why is the role of the CTO needed? How might it change in the future?

Answer 36

Why is the CTO needed?

The development rate for technology has increased, the CTO helps integrate technology into a business. The role is dynamic and can have varying responsibilities such as:

• Handle technology development and support strategic decisions
• Align R&D activities with corporate strategy, being more involved in strategy creation

How might the role develop in the future?

Seems to move more from supporting strategic work to being part of the developing process of strategy.

Question 37

Topic report 6 - What is Open innovation? What are the five moves towards OI? What are the benefits of OI?

Answer 37

What is open innovation?

Open Innovation it allows internal and external ideas to flow within the organization. Open Innovation implies that the company no longer internalizes their R&D processes. Instead they utilize external partners or take their own R&D outside the firm’s boundaries. The purpose is to created knowledge that would not have been created in the company. Most companies use a combination of open and closed innovation.

5 moves for open innovation

1. Become a customer or supplier to your former internal projects.
2. Create open domains to reduce costs and expand participation.
3. Grow your ecosystem even if you are not growing.
4. Let others develop your non-strategic initiatives.
5. Make your IP work harder for you and others.

Benefits

• Opens up new channels of knowledge
• Can accelerate the the innovation rate (Tesla sharing battery reserach to speed up the indutry)

Question 38

What are the six crucial practices that leaders should adopt if they want to capitalize on agile’s potential. What are the favorable/unfavorable conditions for agile? Taken from A1 “Embracing Agile”

Answer 38

1. Learn how agile really works
2. Understand where agile does and doesn’t work
3. Start small and let the word spread
4. Allow “Master” teams to customize their practices
5. Practice agile at the top
6. Destroy the barriers to agile behaviors - Techniques include:
   
   • Get everyone on the same page
   • Only one boss for each decision
   • Don’t change structures right away; change roles
   • Focus on teams, not individuals
   • Lead with questions, not orders

Question 39

Explain the different structures in spotify (squad, tribe, chapter, guild). What roles guide a squad member in what and to do and how to do it? [A3]Scaling @ Spotify

Answer 39

• Squads: similar to scrum teams, designed to feel like a mini-startup and self-organizing decide their own way of working. Doesn’t have a squad leader but does have a PO. Tries to minimze dependencies between different suads.
• Tribe: a collection of squads that work in related areas – such as the music player, or backend infrastructure.
• Chapters: small group of people having similar skills and working within the same general competency area, within the same tribe.
• Guild: A more organic and wide-­reaching “community of interest”, a group of people that want to share knowledge, tools, code, and practices and has a Guild coordinator.