Product Development Management - IAR061

Question 1

What are the three basic goals with project portfolio management? Describe one method or tool per each that you can use in order to achieve these goals respectively?

Answer 1

Maximize value of portfolio

Net present value
Expected commercial value
Opting pricing theory
Scoring models

A strong link to strategy

Top down - e.g Strategic buckets
Bottom up - e.g Scoring models with strategic parameters

Achieving a balanced portfolio

Bubble diagrams
Portfolio maps
Histograms
Pie charts

Question 2

5 Different ways to source needed technology

Answer 2

Internal R&D
Outsourcing
Licensing
Alliances
Aquisition

Question 3

5 Different ways to source needed technology - What does companies use?

Answer 3

In the industry today, internal R&D is quite common because they want to keep control of the development process. They also want to keep knowledge and technology available to the company. Outsourcing R&D is however also common nowadays, and is also increasing by some companies, to be able to focus on their own projects and decrease development cost, often used in the software industry. Acquisition is common when the development process is rapid and technology is of crucial importance, then companies acquire knowledge from other firms.

Question 4

Dominant Design

Answer 4

A dominant design is the one design that has won allegiance on the market . It´s a design that meets the requirements of most classes of users and where numerous of features are implicit. Most of the surviving competitors on the market will produce products that conform, or look very similar to the dominant design.

The process of a dominant design begins in the early invention stage where various designs are approached to create a new innovation, this is called the fluid stage. There is considerable uncertainty about the technology and its market. Firms experiment with different product designs at this stage. Then the new design is competing with other designs on the market where a dominant design then exceeds its competitors. The market converges towards the dominant design. After the dominant emerges the specific phase begins, where firms focus on improvements to the design and manufacturing efficiency.

Question 5

Dilemmas and “trade-offs” in R&D Management

Answer 5

Competitors are ahead
Facing the dilemma of catching up with competitors who are already ahead and maybe have established a market or technology advantage

Cutting development cycle time
In order to respond to a rapidly changing market a company might want to shorten the development time and get a faster time to market. The dilemma is to still meet the quality demands and requirements but cutting a development process.

Projects budget can´t be held
Due to different factors, maybe delays or development issues, the project’s budget cant be held and the company faces a problem, whether to allocate more resources into the project or relocate or similar.

Short term vs Long term goals
Short term thinking may be beneficial due to instant financial impacts and success but may hinder long term innovation and future competitiveness. However the company may stay competitive for a longer while if they plan long term, but will not get immediate results.

Competitors are ahead

Question 6

Traditionally functionally organized structures have a tendency to develop barriers to the necessary cooperation and integrations between functions. Discuss the underlying reasons for the existence of these barriers.

Answer 6

Competence
Culture
Organization affiliation
Status
Time pressure
Information availability
Geographical distance
Goals

Question 7

Commonly used mechanisms that organizations use in order to overcome these barriers?

Answer 7

Organizational mechanisms: Up/down in the organization

Hierarchical authority: Setting clear organizational rules which describe who is in charge of what and who to answer to.
Rules, programs and procedures: Organizing and defining frameworks, tools, methods and procedures to work according to
Planning and goals: A clear planning of the project and clearly set-up goals that people from different functions can interpret on and work towards.
Narrowing span of control: In order to reduce uncertainty the span of control should be narrowed down. Less people directly below a manager -> Lower uncertainty and narrower span of control.

Lateral mechanisms: Between functions

Direct contact: Enhance the cross functional integration by direct contract between functions. Face-to-face contact on a daily basis instead of email.
Liaison rules: Setting up rules that apply to liaisons from different functions when working in cross-functional project teams.
Integration of roles: Enhancing cross-functional integration with integration roles from different functions: Roles that implies working within different areas creates ambidextrous roles that manage communication between departments and that becomes multilingual.
Task forces: Focused problem solving work groups that melades people from different functions
Cross functional teams: When property managed, projects carried out using CFTS can be done more effectively and efficiently CFTs involve people from different functions and encourage people to be involved in the project from the beginning and to communicate with all the other people (functions) within the team.
Matrix design: Designing matrixes (House of quality, pugh, gantt and so on) makes people from different functions intersect and constitute with their respective knowledge and perspective.

Question 8

Platforms can be many things. Discuss three other views (except for components) of what a platform is, and the benefits to gain from each of these three views

Answer 8

Processes
In this context, the platform represents well established processes, workflows or procedures that a range of products or product families share and requires to design and manufacture or
assemble the product.

The benefits is that the processes etc are standardized which makes for an efficient development and production process

People & relations
The view here is that the platform consists of a network of people within or/and outside the organization. The products/projects are designed or managed by a standard group of people or by the same manufacturing people. The platform of the product is the people and their relationships.

The benefits is that the constant collaboration nurtures relations and creates easy knowledge transfers within the network

Knowledge & skills
The set of skills and knowledge that has been involved in developing a certain product or managing a project. The common platform is the knowledge shared which could have been obtained through similar training, education, mentorships etc. Design “know-hows” technology applications and production techniques, testing methods.

The benefits could be that it supports ongoing learning and developments, it also gives the product a competitive edge with a well established educated knowledge platform.

Question 9

Stage-Gate Process

Answer 9

The stage gate process involves dividing the process into distinct stages, each having their own goals, deliverables and criterias for advancement. The gates act as decision points where the project is reviewed and evaluated whether the criterias are met and the project can move on to the next stage.

In the gate there are three parts:

Inputs - A prescribed list of deliverables that the project leader must present to the gate
Criteria - A set of hurdles, criterias or questions that the project is judged upon
Outputs - The decision to GO/KILL/HOLD/RECYCLE within an approved action plan.

The project receives funding allocated to the different stages, this means that the project receives funding based on successful progression. The underlying thinking for the process set up is to fund the project gradually as the project delivers and fulfills stated targets at different stages. The project leader is the one who should report at the gate meeting.

Question 10

What does “Success Assured/verified concept” mean within the “Lean development thinking”?

Answer 10

All relevant knowledge gaps should have been closed, in the knowledge values stream, before you embark on a development project, the project value stream. Hence the uncertainty has been reduced to an acceptable level.

Elaborated

The lean principles aim to minimize waste, improve efficiency and increase success in product development.

Before initiating a development project, it is essential to ensure that all relevant knowledge gaps have been addressed and closed.

The primary goal of the “Success Assured/Verified Concept” is to reduce uncertainty to an acceptable level. In product development, uncertainty arises from factors like market dynamics, technology, customer needs, and competitive forces. By addressing knowledge gaps, you can reduce uncertainty and increase the likelihood of project success.

Question 11

Mechanistic structure

Answer 11

A mechanistic structure is an organizational structure that is design so that individuals and functions behave in a predictable way and can be held accountable for their actions

Mechanistic structures have high formalization and standardization

Its good for operational efficiency and reliability
Minimizes variation
But may stifle creativity

A rigid and tightly controlled structure

High specialisation
Rigid departmentalization
Clear chain of command
Narrow span of control
High formalization
Centralized
Limited information network

Question 12

Organic Structure

Answer 12

Flexibility and Adaptability: Organic structures are designed to be more flexible and adaptable to changing circumstances, both internal and external.

Low Formalization and Standardization: Unlike mechanistic structures, organic structures have lower levels of formalization and standardization.

Highly flexible and adaptable structure

Cross functional teams
Cross hierarchical teams
Free flow of information
Wide spans of control
Less formalization
Decentralisation
Encouraging creativity.

May cause low consistency and low reliability.

Question 13

What is an “Analytical prototype?”

Answer 13

One key method/tool used in R&D is prototypes, however prototypes can be many different things. An analytical prototype represents the product in a non-tangible, usually mathematical manner for analysis. It’s a non physical form of prototype and can be used to perform mathematical simulations and analysis.

Question 14

In “Lean product development” there is a clear distinction between the “knowledge value stream” and the “product value stream”. What does this mean, what is the difference between these two?

Answer 14

The knowledge value stream
To capture and reuse knowledge (markets, customers, technologies, product and manufacturing capabilities). The Knowledge Value Stream represents the systematic process of capturing, creating, organizing, and reusing knowledge and information critical to the success of a product development project

Gathering knowledge about customer needs, preferences, and market trends
Keeping up-to-date with the latest technologies
Understanding the product’s specifications, features, and design
Knowledge about the organization’s manufacturing capabilities

Product value stream
The Product Value Stream, on the other hand, is focused on the flow of tasks, activities, people, and equipment directly related to creating the actual product. It involves the practical steps needed to develop, design, and manufacture the product, resulting in tangible outputs. Here are key characteristics of the Product Value Stream:

Design and Development: This stream encompasses tasks related to creating product specifications, drawings, and bills of materials (BOM).
Manufacturing Process: It involves defining the manufacturing process
Resource Allocation: Determining the allocation of human resources, equipment, and facilities to carry out the product development tasks.

The product value stream deals with physical, tangible tasks and activities while the knowledge value stream deals with knowledge about the process/products etc.

Question 15

What is SCRUM?

Answer 15

SCRUM is a framework used in agile project management and is widely used in the software development industry.

It includes sprints where the project is divided into fixed length time periods, typically lasting a few weeks, each sprint is a mini project with its own deliverables and goals.

The team has a scrum master which is the project leader and a development team working together to complete the work within each sprint

Question 16

Consider product development organized according to SCRUM. What is a backlog and what is the difference between a sprint backlog and a product backlog?

Answer 16

The product backlog, which functions as an alternative to a business case or demand specification, contains a list of features that may or may not be included in the final product. Initially the product backlog is developed in collaboration with both external and internal stakeholders.

The development is broken down (as said before) into sprints, with high productivity work that may vary in length (2-4 weeks). Each sprint works from a sprint backlog, which describes the set of priorities features (or product increments) to be developed in the current sprint, selected because they are high in priority and they can be completed within the defined period of the sprint. The sprint backlog is fixed and during the sprint it may not be changed.

Differences
The product backlog requires a broader scope and includes all features, functionalities, enhancements that the product may or may not have in the final product. The sprint backlog is the determined work that the sprint will include and that the team is to complete within that time frame.

Question 17

Describe the three informal balancing acts that a self-organizing agile team manages

Answer 17

Freedom responsibility
Self organizing teams are granted with a high degree of autonomy and freedom to make decisions about their work and goals. This comes with responsibility to deliver valuable results.

Learning output
Share knowledge and learn new skill sets within the team, learn from each other, discover new knowledge and approaches

Specialization-cross-functionality
Members possess varied skill sets and can collaborate to handle different aspects of projects . Having specialized experts and still maintaining a collaboration

Question 18

Describe the basic principles around QFD and DFA, what the methods aim for and the basic working procedure. When, in a generic product development process, can these methods (QFD and DFA) come to play?

Answer 18

The main aim with DFA is to minimize the number of parts. You do that by answering three important questions in order to identify candidates for elimination or integration. The inspection is done in two steps, for handling and then insertion. The needed date is collated from two worksheets. DFA can be used during the “build phase” when the product is being developed and designed.

1. Does the part move with respect to all parts already assembled?
2. Must it be of different material or be isolated from all other parts already assembled?
3. Must it be separate from all other parts already assembled because necessary assembly or disassembly would be impossible

If the answer to all three is no then the part is a candidate for elimination.

QFD (quality function deployment) is a way to translate a customer’s requirements to design requirements where you identify important correlations between these in order to focus on those design requirements that are most important to the voice of the customer. You also compare or benchmark these requirements with competitor products in order to set relevant target values on the design requirements. QFD can be used early in the “design phase”.

Question 19

In organization design Jay introduces the concept of uncertainty. Elaborate/develop on how he defines uncertainty? Also, put this concept into an R&D setting where a company develops platform products as well as derivative products - How does uncertainty come to play in this setting relative to the definition?

Answer 19

Uncertainty is the difference between the amount of information required to perform a task and the amount of information already possessed by the organization. The greater amount of uncertainty the greater amount of information must be processed among the decision makers during task execution in order to achieve a given level of performance.

This is because platform projects typically involve creating new, innovative technologies or solutions that may not have been explored before. The uncertainty arises from not knowing how these new technologies will perform, whether they will meet customer needs, or how they will impact the market. In this scenario, a lot of information exchange and communication between decision-makers is essential. This helps in sharing insights, learning from each other’s expertise, and collectively reducing the uncertainty by gaining a better understanding of the technology and its potential applications.

Derivative projects, on the other hand, build upon an existing platform. In this case, there is generally less unknown and uncertainty. The technology or platform is already established and understood, and the derivative products leverage this existing knowledge. Consequently, less information exchange is needed because the foundational platform knowledge is already available.

The reasoning aligns with contingency theory in organization design. Contingency theory suggests that there is no one-size-fits-all approach to organizing and managing organizations. Instead, the most effective organizational design and decision-making processes depend on the specific context, including the level of uncertainty in a given situation.

Question 20

Functional structure teams

Answer 20

People are grouped together by discipline (function), each working under the direction of a specialized subfunction manager. In R&D it would include subgroupings under subcategories of manufacturing engineers, testing, mechanical and design engineers.

Members report to a functional manager
Temporary, members may spend less than 10% of their time on project
No project manager, or dedicated liaison personnel
Little opportunity for cross functional integration
Appropriate for derivative projects

Question 21

Lightweight structure teams

Answer 21

It’s the same as functional (small modification of functional) but with a liaison manager who presents the project’s work to a project coordination committee.

Reports to functional manager
Temporary, members may spend less than 25% of their time on project
Typically have a project leader or dedicated liaison manager
Manager is typically junior or middle
Appropriate for derivative projects (not new)

Question 22

Heavyweight structure teams

Answer 22

In heavyweight teams, the project leader has a dominant and directive role. They make key decisions and set the project’s strategic direction, often taking a more authoritative approach.

Members are collocated with project manager
Manager is senior and has significant authority to command resources and evaluate members
Often temporary, but core team members dedicate full time to project
Appropriate for platform projects

Question 23

Autonomous (tiger teams) structure teams

Answer 23

Allowed to create their own practices and procedures.

Members are collocated and dedicated full time to the team often
Project manager is typically very senior manager
Project manager is given full control over resources contributed from functional departments and has exclusive authority over evaluation and reward of members
Autonomous teams may have their own policies, procedures and reward systems that may differ from the rest of the firm.
Likely to be appropriate for platform and breakthrough projects
Can be difficult to fold back into the organization

Question 24

Describe the underlying thinking behind set-based concurrent engineering

Answer 24

The idea is to reduce uncertainty by making design changes as late as possible. Because at this stage we have more knowledge and can make more informed decisions. It’s about exploring multiple design alternatives before committing to one, rather than prematurely converging to a single design. This relates to the designers’ dilemma and the “trade-off” where we gain more knowledge over the duration of time along with an increasing cost of making design changes and thereby the design freedom.

Question 25

What are the benefits of set-based concurrent engineering and what companies can use this approach?

Answer 25

Benefits of SBCE

Working set-based makes it possible to have a back-up solution
Minimizes risks in a project
Reduces lead time
Delay decision using better information
Explore many different designs at the same time, maybe using AI

Companies that could work with this might be

Innovative driven companies who wants to value creativity and explore innovations
Companies with long development cycles who can afford this approach

Non suitable;

For example short term projects
Rapidly moving adaptability to markets.

Question 26

What is a contract book as described by Wheelwright and Clark?

Answer 26

The contract book, defines in detail, the basic plan to achieve the stated goals that’s been laid out in the charter. The team develops their own work plan, estimated resources, outlining the results that will be achieved. It includes timetables, resource requirements and product performance specifications. Its 25-100 pages usually and signed by all core members. It can include a business plan and purpose. A development plan with scheduling, materials and resources. A product design plan, quality plan, manufacturing plan, project deliverables and performance measurements and incentives.

Question 27

What is an “Aggregate Project Plan”?

Answer 27

It’s when a plan pursuit/takes on multiple projects at the time. It’s a more high level plan that does not delve into details such as individuals project plans might do. It’s about providing a strategic view of all projects and aligning them with the organization’s goals. It helps in resource allocation and prioritizing to see where these needs to be put.

Question 28

What is a “development funnel”?

Answer 28

It´s a concept used in product development to represent the various stages in the process.

The funnel is broad (mouth): Ideas and investigation stage in a creative unstructured manner.
Idea screening: Where designs are evaluated using predefined criterias. Building a business case.
Development; The funnel gets tighter (neck). Concepts are developed and tested and analyzed, validated
Screening
Launching, the shipping of finished product

Question 29

What are strategic buckets?

Answer 29

Translating the business strategy into clearly defined areas and to decide resource allocation to each. Used to achieve a portfolio of projects with strategic alignments. Its a circular diagram, and evaluate how well the business strategy works - how different parameters related to business are distributed

Question 30

What is a toll gate in a stage gate process?

Answer 30

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

TG 0: Decision to start a pre-study

TG 1: Start of project feasibility study on technical solutions to form a business case with sound profitability to start a project

TG 2: Start of execution phase with firm product and project requirements, based on a total business case

TG 3: Continued execution according to original or reversed plan

TG 4: Release the product for limited production and limited market launch

TG 5: Project outcome accepted. Release the product for high volume production and market launch and start of project conclusion

Question 31

Explain the “Design-Build-Test Cycle” and illustrate where and when the two methods: DFA and QFD can come into play in this cycle.

Answer 31

It´s a development process that is divided into stages

Design - The initial concept and targets that the design needs to adhere to.
Forming the frame of problem and coming up with alternatives generated.
Building these alternative models or prototypes and
then testing and evaluating or simulating these.
Evaluate the results
Seeing if it meets the goals or if it does not.

If it does not fulfill the goals the process starts all over with the current design in mind where the frame of the problem is again evaluated and the whole process is iterated until the final design is found.

QFD ( Quality function deployment ) is the same as the voice of the customer and is to be used throughout the whole process. From product requirements and definition - concept development - detailed product design to detailed process design.

DFA can be used in the concept development stage and the detailed product design to try and see where to minimize parts.

Question 32

Discuss five reasons why it is beneficial to bring competitive products to the market more rapidly than competitors

Answer 32

1. Set industry standards.
2. Increased market share.
3. Enjoy a Longer Product Life:
4. Faster reaction to evolving markets.
5. Faster Use of Emerging Technologies:

Question 33

From a managerial perspective, what different roles can prototyping play

Answer 33

Prototypes is a tool that can help the development process in;

Learning: Will the design work? How well does it meet the customer’s needs?

Communicating: Prototypes enrich communication with top management, vendors, partners, extended team members, customers and sources of financing. (through visualization)

Integration: To ensure the components and subsystems of the product work together as expected

Milestones: To demonstrate that the product has achieved a desired level of functionality.

There are different types:

Physical prototypes, tangible, classical prototypes made for experimentation and testing
Analytical prototypes: More mathematical made for simulations and calculations, non tangible
Comprehensive or focused prototypes - When they are more focused on presenting one attribute

Rapid prototyping techniques
A process to build prototypes without specialized tooling or casting. Ways of building the product layer by layer until a finished prototype is obtained. For example through 3D printing.

“Never go to a meeting without a prototype”
Visualizing. It goes hand in hand with process visibility. A matter of communicating and accessing real time information.

Can help managers
Clarification
User feedback
Iterative development

Question 34

What is periodic prototyping?

Answer 34

Periodic prototyping is a strategy where prototypes are developed at regular intervals throughout the product development process, often in sync with specific project milestones. This approach involves creating prototypes periodically to achieve several goals:
Continuous Validation: Periodic prototyping ensures that the product remains aligned with customer needs and project goals at every stage of development. It allows managers to continually validate the product’s direction and make necessary adjustments.
Incremental Development: Instead of developing a single, comprehensive prototype, periodic prototyping involves incremental development. This approach breaks down the product into smaller components or features, allowing managers to focus on one aspect at a time.
Risk Management: Regular prototyping helps identify and address risks early, reducing the chance of major problems arising later in the development process.
Customer Engagement: Periodic prototypes provide opportunities for ongoing customer engagement and feedback. Managers can gather input at different stages, resulting in a more user-centered final product.
Decision Milestones: Prototyping at regular intervals can serve as decision milestones in the project. Managers can assess progress, make informed decisions, and allocate resources based on the results of each prototyping phase.

Question 35

In organization design Jay Galbraith says that the ability of an organization to successfully utilize coordination by goal setting, hierarchy and rules depends on the combination of frequency of expectations and the capacity of the hierarchy to handle them. As the uncertainty increases, the number of expectations increases until the hierarchy is overloaded. When this happens Galbraith proposes two general ways for organizational design action (strategies). Describe those possible actions.

Answer 35

Reduce the need for information processing

Environmental management
Creation of slack resources
Creation of self contained tasks

Increase its capacity to process information

Investment in vertical information systems
Creation of lateral relations.

Question 36

What is the objective of a technology strategy and which areas does it usually address?

Answer 36

The objective of a technology strategy is to provide a clear and comprehensive roadmap for how an organization plans to leverage technology to achieve its business goals and gain a competitive advantage.

Areas; (where should we focus, how should we source it, who, when?)

Focus: To define those capabilities where the firm seeks to achieve a distinctive advantage relative to competitors

Source: Should technological capability be developed internally through investments in people, equipment, facilities, methodologies and through advance development projects or should it be acquired from outside?

Timing and frequency of implementation: When to develop and when to introduce technology into the market

Question 37

The development process is a complex set of activities that extend over a considerable time period. Describe the six basic elements in the framework, presented by Wheelwright & Clark, senior management can use for understanding that complexity?

Answer 37

Project definition
Sets scope, bounds, purpose, objectives and activities. Defining time plan, specific goals and budget.

Project organization and staffing
It involves determining the roles and responsibilities

Project management and leadership
Role of project leaders and how project tasks will be managed and how responsibilities will be executed.

Problem solving, testing and prototyping
activities that are essential for identifying and resolving issues, refining the product, and ensuring its quality.

Senior management review and control
Senior leaders assess project progress, allocate resources, and provide strategic guidance to ensure that the project aligns with the organization’s goals.

Real-time/midcourse correction
This element involves monitoring project performance, identifying deviations from the plan, and making necessary adjustments to keep the project on track.

Question 38

Wheelwright and clark classify development projects into different categories or types. Which are these categories and what is the primary distinguishing dimension?

Answer 38

Research or advanced development projects
Making new knowledge and know-hows available for specific development projects

Breakthrough development projects
Involves creating the first generation of an entirely new product and process. Their core concepts and technologies break new ground for the organization and are likely to constitute a whole new product/process family

Platform or generalization projects
A development of a platform that establishes the basic architecture for a set of follow on derivative projects.

Derivative development projects
These projects refine and improve selected performance dimensions to better meet the needs of specific market segments

Question 39

Recall the learning goals for the course. Pick four topic reports and describe their learning goals from each of them. Describe also how these learning goals relate to the learning goals of the course. Select topics so that you cover as much of the learning goals as possible

Answer 39

Self organizing teams in R&D

Learning goal is to
learn about self organizing teams and their application in R&D.
To examine where self organizing teams may be viable and where not.
It will analyze challenges when companies adapt to having self organizing teams.
How to measure the effect of the implementation

This topic can be related to several aspects of the learning goals.

Regarding organizational issues. The topic report addresses the issues of implementing a self organizing team when people are used to the traditional team structures. Might get some fightback in the beginning stages.

Effective product development: The topic examines if a self organizing team is the best for that project, evaluating the effectiveness of its implementation

Outsourcing R&D
The learning goals

Understanding the purpose of R&D and in what areas it should be applied
When a company can consider outsourcing it and what aspects to consider

This topic can be related to

The first course goal includes strategic product development dilemmas. Since it’s a matter for the organization to weigh the trade offs of outsourcing their R&D or to keep it in-house

It can also be related to development processes, and methods & tools. Since it’s about how to manage the development process with outsourcing R&D.

Total quality management
The learning goals

To learn about total quality management
TQM aims to improve the overall quality of the project and product
It is based on continuous improvement and client satisfaction.
TQM uses various tools to be more aware of their processes and to identify problematic areas to improve them.

It relates to the course goal of

The development process, the stages and how to manage and control it.

Project planning methods

The learning goals:

To discuss the most common project planning methods used
Advantages and disadvantages of using different methods
Which one is best suited for what projects, combinations?

It relates to the course goal of

The last goal, integration of engineering methods and tools. Understanding how to use these methods for project planning aligns with the broader learning goal of achieving integration and unity among various functions in an organization.