New product development : process benchmarks and performance metrics

Cover......Page 1
Table of Contents......Page 4
PDI Benchmarking Report_final.pdf......Page 2
Exhibits......Page 6
1.1  THE QUEST FOR BEST PRACTICES IN PRODUCT INNOVATION......Page 7
1.3 TOPIC AREAS STUDIED......Page 8
1.4 HOW THE BENCHMARKING RESEARCH WAS UNDERTAKEN......Page 9
2.1 PERCENTAGE OF REVENUES AND PROFITS FROM NEW PRODUCTS......Page 13
2.2 SUCCESS, FAIL AND KILL RATES......Page 14
2.3 TIME TO MARKET......Page 16
2.4 ON TIME AND ON BUDGET......Page 17
2.5 NPD PROJECTS MEETING OBJECTIVES......Page 18
5. Cycle time reduction is the goal in many businesses’ product innovation efforts. And so, the ability to reduce cycle time over the last three years is a key metric. Businesses rate poorly on this metric (mean rating: 5.2 out of 10), with only 11.6 percent of business claiming very good results.......Page 20
2. Metrics used to gauge how well the business’s total new product effort performs (its NPD program). For example, the percentage of new products launched that were commercial successes.......Page 21
2.8 DEFINING AND IDENTIFYING THE TOP PERFORMERS......Page 24
2.9 HOW THE BEST VERSUS WORST BUSINESSES FARE IN TERMS OF PERFORMANCE METRICS......Page 25
3.1 A SYSTEMATIC NEW PRODUCT PROCESS......Page 30
3.2 KEY UPFRONT ACTIVITIES THAT ARE BUILT INTO THE NPD PROCESS......Page 36
3.3 GATEKEEPING GOVERNANCE PRACTICES......Page 37
3.4 QUALITY OF YOUR GATE DELIVERABLES......Page 40
3.5 IMPROVING YOUR GATE PRACTICES......Page 42
4.1 THE WAY NPD PROJECT TEAMS ARE ORGANIZED AND LEAD......Page 44
4.2 HOW TO HANDLE PROJECT TEAM MANAGEMENT......Page 46
Case 2: EXFO......Page 47
Case 4: Ashland, Inc.......Page 48
4.4 THE ROLE OF THE PROCESS MANAGER......Page 49
5.1 PORTFOLIO MANAGEMENT......Page 52
IN-DEPTH CASE STUDIES......Page 60
Air Products and Chemicals, Inc.Performance Materials Division......Page 61
—Michael P. Popule, Group Manager, Reaction Engineering......Page 62
PROJECT TEAMS......Page 66
3. The organization is using lessons learned not only for individual projects but also to build those lessons into the process moving forward.......Page 67
OFFERING DEVELOPMENT AND INTRODUCTION......Page 68
3. Technology development—Deliverables from this element are product specifications, product/equipment testing, customer performance validation, and identification of show-stoppers. In cases where performance cannot be tied to something measurable at the plant, PMD attempts to link the product’s performance to a physical property that can be measured.......Page 70
ODI PROCESS ROLES AND RESPONSIBILITIES......Page 71
NEW PRODUCT INTRODUCTION......Page 72
Ashland, Inc.......Page 77
5. Ashland Distribution — the No. 1 distributor of plastics in North America.......Page 78
THE NEW SOLUTIONS DEVELOPMENT COUNCIL......Page 79
GATEKEEPING......Page 80
TYPICAL NPD PROJECT TEAM......Page 81
DEFINE......Page 84
ANALYZE......Page 85
3. Platform projects......Page 86
Becton, Dickinson and Company (BD)......Page 90
3. BD Medical (52 percent of revenue)—medical devices and injection- and infusion-based drug delivery including needles, syringes, and catheters.......Page 91
CORE TEAM MEMBERS......Page 94
TRAINING......Page 95
STRUCTURED DEVELOPMENT PROCESS......Page 96
4. Activities (more than 1,000 per project)—daily efforts required by core team members to complete a particular task.......Page 97
2. Planning—The second phase is conducted by the full technology development team. The main objectives of this phase are to finalize the technology development matrix, initiate intellectual property planning, and create the development plan. The technology development matrix helps the team manage the level of risk as the team develops the new technology.......Page 98
4. Integration—The fourth phase involves transitioning the project from the technology development team to the product development core team. At the end of this phase, the technology effort is completely finished.......Page 99
4. Technology development—inventing new science to be used in specific product development projects.......Page 100
5. Cross-enterprise excellence—all processes align with both internal and external business partners.......Page 101
Electro Scientific Industries, Inc.......Page 103
—Brad King, Director of Program Management......Page 104
SENIOR LEADERSHIP SUPPORT......Page 105
Global Teams......Page 106
RISK......Page 107
PROCESS DOCUMENTATION......Page 108
1. Opportunity approval (after phase 1) — investment is approved based on the market opportunity analysis (i.e. the project has acceptable returns and financials)......Page 109
A Scalable Process......Page 110
ESI’S REGULATORY ENVIRONMENT......Page 111
EXFO......Page 114
GATE MEETINGS......Page 116
PROJECT TEAMS......Page 118
MULTISITE CHALLENGES......Page 119
TURNOVER......Page 120
ACQUISITIONS......Page 121
Gate 1—Definition......Page 123
Gate 3—Conception......Page 124
Gate 4.1—Transition......Page 125
XPRESS GATING PROCESS......Page 126
PROCESS FOR SOFTWARE PROGRAMS......Page 127
GLOBAL REGULATORY REQUIREMENTS......Page 128
3. loading resources to each project.......Page 129
PROJECT PRIORITIZATION......Page 130
RESOURCE ALLOCATION......Page 131
3. a commitment to continuous improvement.......Page 135
Organization-Level Statistics......Page 140
Business Unit/Department Level Statistics......Page 142
Quality of Execution of Key NPD Activities......Page 158
References and Endnotes......Page 177
About the Author......Page 179
About APQC......Page 180