challenges and enablers for rapid product...

DOI: 10.4018/IJAIE.2018010102

International Journal of Applied Industrial EngineeringVolume 5 • Issue 1 • January-June 2018

Copyright©2018,IGIGlobal.CopyingordistributinginprintorelectronicformswithoutwrittenpermissionofIGIGlobalisprohibited.

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Challenges and Enablers for Rapid Product DevelopmentJordan Verrollot, University of Oulu, Oulu, Finland

Arto Tolonen, University of Oulu, Oulu, Finland

Janne Harkonen, University of Oulu, Oulu, Finland

Harri J. O. Haapasalo, University of Oulu, Oulu, Finland

ABSTRACT

Thisarticledescribeshownewproductdevelopment(NPD)iscriticaltomaintainingastrongmarketposition.However,full-scaleNPDmayconsumetoomuchtimeandresourceswhennecessarytoreactquicklytocustomerneedsoremergingbusinessopportunities.Rapiddevelopment(RaDe)isatypeofincrementalproductdevelopmentcomplementingtheorganizations’existingNPDprocess.InRaDe,newsalesitemsarecreatedbyredesigningorupgradingexistingproductsinexpensively,andinatimelymanner.ThisarticleaimsatclarifyingthechallengesandenablersrelatingtoRaDeimplementation in fourcasecompaniesandby themeansof reviewing literature.The identifiedchallengesincludethedifficultyofdifferentiatingbetweenproductdevelopmentsmodels,thelackofcleardefinitionforRaDeandissuesinproductdatamanagement.TheenablersincludestructuringandmanagingprojectsdifferentlycomparedtoNPD,theutilizationofexistingsupply-chaincapabilitiesandthedesignedproductsfittingthecurrentbusinessprocessestoenablerapidproductramp-ups.

KEywoRDSChallenges, Enablers, New Product Development Process, NPD, RaDe, Rapid Development, Rapid Product Development

INTRoDUCTIoN

Thedevelopmentandlaunchofsuccessfulnewproductsareincreasinglycriticaltoallowmarketleadership,healthymarketshare,andsustainedgrowth(Barczak&Kahn,2012;Unger&Eppinger,2009;Wheelwright&Clark,1992).Newproducts arecreatedusingNewProductDevelopment(NPD)processes,whichhavebeendesignedtoberepeatableinordertoreducerisks,costandnon-quality(Cooper,1986;Ulrich&Eppinger,2000).However,milestone-drivenNPDprojectshavebeencriticisedtobetoolinear,toorigidandtooplannedforsmallanddynamicprojects(Cooper,2014)thatrequirereactingquicklytosuddenproductdevelopmentneeds.Phasesandmilestonesmayalsostoptheprojectforunnecessarylongtimes(Ottosson,2004)hinderingthepossibilitiesofconductingthedevelopmentrapidly.Onesingledevelopmentconceptisnotenoughtofitallthevariousrangesofdevelopmentneededintermsofcost,timeorrisk(Becker,2006;Cooper,2008;Ward,2007).

Organisationsthatareslowindevelopingnewproductsandareunabletomeetsuddendemandsinatimelyfashionoftenloseagainstthosewithamoreagiledevelopmentprocess(Cohenetal.,1996; Smith, 1990). Therefore, shorter lead times and customer responsiveness are seen as keyelementsthatinfluencethefirm’ssuccessandperformance(Jayachandranetal.,2004;Krasnikov


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&Jayachandran,2008;Sousaetal.,2010).Companiesarefacingpressurestosupplynewproductsconstantlyandrapidlytothemarketwhiletheabilitytoreacttospecificcustomerneedsthroughtheproductrangeisseenvitaltosucceedinglobalcompetition(Forza&Salvador2008).Duetothegrowingimportanceofinnovationandproductdevelopmentinestablishingandmaintainingastrongpositionintheincreasinglycompetitivebusinessarea(Moreno-Moya&Munuera-Aleman,2016;Smith&Reinertsen,1998),thedemandsonproductdevelopmentperformance,intermsofspeedandefficiencyhavebecomemorestringent(Cedergrenetal,2010;VanEchteltetal.,2008;Yadav&Singh,2008).Therefore,theimportanceofthecompanies’capabilitiestoevaluatetheirproductdevelopmentperformancehasincreased(Johnson&Kirchain,2011).

Manytechniquesandapproacheshavebeenstudiedintheliteraturetoreducelead-timeofproductdevelopment(Langerak&Hultink,2008).CompaniesincreasinglyutilizeshortenedNPDmodelstoreducethedevelopmentlead-timesofsmallprojects;75percentoftopperformingbusinessesusesomeformofscalabilityintheirproductdevelopmentprocesses.(Cooper&Edgett,2012).Cooper(2008)hasproposedtoscaledownhisfamousmilestonedrivenproductdevelopmentmodelinordertosuitdifferentprojectneeds.Thelightestversionismeanttoaddressverysmallprojectsrequiringminorchangestoexistingproductssuchassimplecustomerrequests(Cooper,2014).Despitetheextensiveresearchonthemethodstoimprovetheprocessofdevelopingnewproducts,limitedattentionhasbeenpaidtosmallandfastproductdevelopmentprojects,especiallyinthebusiness-to-businessenvironment(Cooperetal.,2004;Kaikkonenetal.2016).Thepreviousstudiesonthetopics(e.g.Cooper,2008;Hänninenetal.,2014;Kaikkonenetal.,2017;Niskanenetal.,2015;Vignaetal.,2015)donotcomprehensivelyexaminethechallengesandenablersrelatedtoimplementingandrunningthosekindsofproductdevelopmentprojects.

The motivation for the study arises from the growing significance of small-scale and rapidincremental product development to fulfill the unexpected market and customer needs (Cooper,2008;Kaikkonenetal.,2017). In this study, the rapidproductdevelopment (RaDe)projectsaredefinedasfastproductdevelopmentactivities,noticeablysmallerinscopeandsizethanprojectsrequiringmultiplestagesandgates.Basedonminormodificationsofexistingproducts,newsellableitemsarecreatedtocomplementthecompany’sproductportfolio.AlthoughorganizationsmaynothavedefinedandorganizedRaDe,productdevelopmentneedsthatrequirequickproductcreationdoemergesuddenly.Therefore,thispaperaimsatexaminingandclarifyingtherelatedchallengesandenablers.ThestudyisrealizedasacombinationofreviewingtheliteratureandanalyzingthepracticesofcompaniesoperatinginFinlandandSweden.

Thepaperisorganizedasfollows.Thefollowingsectionfocusesonidentifyinghowtheliteratureconveys the small-scale product development model. The research process and method and theresultssectionfollow.TheresultsexplainthechallengesrelatedtoRaDeandtheenablersforitsimplementation.Finally,thelastsectionpresentsthediscussionandconclusions.

LITERATURE REVIEw

Productdevelopmentprocessisconnectedtotheproductportfoliomanagementasitstrategicallyandcost-efficientlydeterminesthebestsetofproductstocreate,sell,deliverandcare(Georgiopoulosetal.2002;Sadeghi&Zandieh,2011).Correspondingly,productportfoliomanagementaffectstheproductdevelopmentprocessandthesupplychainprocessesbyselectingtheproducttobecreatedanddelivered.Consequently,theintroductionbytheproductdevelopmentprocessofnewproductswithoutremovingexistingonesfromtheproductportfoliowillgenerateanexplosionoftheportfolio(Tolonenetal.,2015).Theproductproliferationandcannibalizationwillleadtoincreasednumbersofsalesitems,purchasedcomponents,suppliersaswellashigherinventorylevelsandlongerleadtimes(Abbeyetal.,2013;Fisheretal.,1999).

Productdevelopmentaimsatmovingnewproducts, thatmeet thecustomer’sneedsand thestrategicgoalofthecompany,fromideagenerationintoamarketintroduction,includingproduct


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design,marketstudy,andmarketinganalyses(Browning&Ramasesh,2007;Cooper,2005;Ulrich&Eppinger,2008).Itcomprisessequentialstepsorsetofactivitiesbeginningwiththeperceptionofamarketopportunityandending in theproduction,sale,anddeliveryofaproduct (Ulrich&Eppinger,2008).Sincethe90s,anumberofNPDframeworks(e.g.,Cooper,2001;Ulrich&Eppinger,2008;Wheelwright&Clark,1992)haveemergedtomeetthevariousneedsoforganizations.Asthecomplexityofdifferentproductdevelopmentprojectsdiffers,thescope,decision-makingprocess,numberofactivities,risklevel,amountofresources,andfundingcommittedalsovarygreatly(Cooper,2008).Utilisinganidenticalprocessforalltheproductdevelopmentprojectsmayresultinrushingrapidprojectsaheadlongeronesandgeneratingunnecessarydelays(Ward,2007).Inanenvironmentwithsuddenanddramaticchanges,productdevelopmentdelaymayinhibitsuccesswhilerapidandefficientcommercializationofnewproductshasbecomeatoppriorityinmanyorganizations(Harmanciogluetal.,2007).Inthelasttwodecades,therelativeportionofincrementalNPDhasgreatlyincreasedinenterprisescomparedtoradicalinnovationsthroughfull-scaleproductdevelopment(Cooper,2013).Oneofthemainobjectivesofincrementalproductdevelopmentistomaketheofferingmoreattractiveandvaluabletothecustomer,thereforeleadingtoincreasedsalesandhigherprofit(Gautam&Singh,2008).Firmswithafastandproductivenewproductdevelopmentprocessareseentoshapepartlythefinancialsuccessoftheproduct(i.e.,revenueandprofitability)(Brown&Eisenhardt,1995).Cooper(2008)hasproposedthenextGenerationStage-Gate®includingashorterandlighterversionofthefamousmilestone-drivenproductdevelopmentmodel.Inordertosuitdifferentprojectneeds(suchasminorchangesprojects),phasesarecombinedandthenumberofgatesisreduced.Lately,differentstudieshavebeencarriedouttocoverthistypeofsmall-scaleproductdevelopmentthatrequiresaminimalengineeringeffort,ashortdevelopmentanddeliverytime(e.g.Hänninenetal.,2014;Kaikkonenetal.,2017;Niskanenetal.,2015;Vignaetal.,2015).Thosestudiesaddressissuesofdecision-making(Hänninenetal.,2014),teamorganization(Kaikkonenetal.,2017;Vignaetal.,2015)orsupplierinvolvement(Niskanenetal.,2015)regardingrapidproductdevelopmentprojects.

Firms face similar challenges of bringing new products to market faster in an increasinglycompetitiveenvironment (suchas the inability topredict thedevelopmentdurationormanagingchangingrequirements)(Ledwithetal.,2006).Theimplementationofthefull-scaleNPDprocess–eveninalighterway–doesnotseemtobetheappropriatemethodincaseofrapiddevelopmentneedsandthusposeschallengesforcompanies.Companiesshouldbeabletobalancetheshort-termneedforincrementaldevelopmentwiththelong-termrequirementsforradicalinnovation(Birkinshaw&Gibson,2004).Thissituationgenerateschallengesforcompaniesinthatitnecessitatesdifferentandoftencontradictorystructures,processesandcultureswithinthesameorganization(Tushman&O’Reilly,1996).Morepractically,Hänninenet al. (2013)uncovered thechallenges related totheneedtorespondquicklytocustomerpreferencesincaseofrapidproductisation(e.g.,howtounderstand, identify and document the customer preferences right from the beginning, how toensurearapidturnaroundtimeforthespecificationanddevelopmentplan).Rapiddevelopmentandproductizationcanalsobesupportedbyunderstandingtheproductizationconceptanditsrelationtoproductportfolio(Harkonenetal.,2015;2017).Infasterproductdevelopment,problemsalsooccurintermofsupplierinvolvement.ComparedtotraditionalNPDandduetotimeconstraint,thecosttendstorise,theprobabilityofdefectsincreasesandlatedeliveriesmayhappenduetopoordeliverycapabilityorcommunication(Niskanenetal.,2015).

LeanproductdevelopmenthasbeenoneoftheleadingapproachadoptedbyorganizationstoimprovetheirNPDprocessandparticularlytoshortenleadtimes.Forinstance,productplatformstrategy,overlappingindevelopmentstages,goodcross-functionalinvolvementandcommunications,aswellassuppliercapabilitiesareseentodecreaseNPDtime(Kärkkäinenetal.,2001;León&Farris,2011;Robertson&Ulrich,1998).OthertechniquestoaccelerateNPDhavebeeninvestigatedandfiveapproachesareseento increase thedevelopmentspeed:supplier involvement, leaduserinvolvement,speedingupactivitiesandtasks,trainingandrewardingofemployees,andsimplificationoforganizationalstructure(Langerak&Hultink,2008).However,thefocusismoreonthefull-scale


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NPDandtechniquestoreduceitslead-time,whereasspecificallyaddressingthemanagerialpointofviewandenablersforsmall-scaleandrapidproductdevelopmentprojectsarelimited.Furthermore,techniquesrecognizedforNPDmayincreasethedevelopmenttimeincaseoffastproductdevelopmentprojects, suchas the supplier involvement that cancause latedeliveries (Niskanenet al., 2015).Smith(1990)providedelementsforasuccessfulrapidproductdevelopment, includingaproductstructuredforrapiddevelopment,aco-locatedanddedicatedteamdesignedforrapiddecisionmaking,streamlinedmanagementtechniquesorsensitivitytotime’svalue.Agoodbalanceofthedifferentcompetenciesavailableisalsoseentoenhancetherapidproductdevelopmentcapabilities(Hänninenetal.,2014).Implementingrapidproductdevelopmentwithasimilarfocusaslong-termproductdevelopmentisrecognizedtobemorevaluableforNPDorganizationsbecausethetasks,resourceutilization,andprioritizationcanbedonemoreeffectivelyandimprovethecompany’sprofitability(Kaikkonenetal.,2017).

Othersaspectshavebeenidentifiedtosupportthesuccessofrapidproductdevelopmentprojects.Effectivegovernancecontributestotheproductdevelopmentsuccessandincludesaspectssuchastherightpeopleinvolvedindecision-making,theappropriatemechanismsforfeedbackandaccountabilityaswellasasuitableprocesstomakedecisions(Oakes&vonWeissenberg,2015).Thenecessityoffasterproductdevelopmentdemandsmoreflexibleorganizationsandeffectiveimplementationofcross-functionalteamshasbecomecriticaltothesuccessofproductdevelopmentprojects(Griffin,1997;Hollandetal.,2000).However,theincrementalNPDprojectsmaynotrequirethesamelevelofcross-functionalintegrationthanlargerandverycomplexprojects(Jugendetal.,2017).Bringingtogether teamsofexperts toconductproductdevelopmentactivities isvaluable toaccelerate theprojectsandgatheralltherequiredknowledge(Bretteletal.,2011).TheNPDteamscanbefunctional,lightweight,heavyweightandself-managing(autonomous)(Wheelwright&Clark,1992).Selectedcharacteristics of self-managing teams have been recognized to achieve improvements in rapid,incrementaldevelopmentprojects(Kaikkonenetal.,2017).Additionally,effectiveinteractionbetweenthedifferentstakeholdersisaparticularlyimportantsuccessfactorofproductdevelopmentsuccess(Ernst,2002;Knudsen,2007).

Businesscaseanalysisisanimportanttaskinproductdevelopmenttodecidewhetheraprojectisworthinvestingandwillbeaccepted(Cooper,2011;Otto&Wood,2001).ThecompletebusinesscaseanalysisconductedinmajorNPDmaybetoolaboriousandtime-consuminginsmallerandfasterprojects.Nevertheless, theequilibriumbetweenthe timeconstraintof lightproductdevelopmentprojectsandtheeffortintobusinesscasecalculationiscrucialtomakereasoneddecisions(Kinnunenetal.,2014).Aspartofproductdevelopmentorganization,thetargetsforthelighterproductdevelopmentprojectsshouldbealignedwiththeproductportfoliomanagementtargets,whichareconnectedwiththecompany’sstrategy(Cooper,1999;Tolonenetal.,2014).Tocontroltheachievementofthetargets,companiesutilizekeyperformanceindicators(KPIs)whichshouldberelatedtotheirrespectivegoals(Dombrowskietal.,2013;Matéetal.,2017).

Respondingtothecustomerdemandquicklyrequiresthecapabilitytomanagetheproductdataeffectivelyandproductdatamanagement(PDM)isacrucialcomponenttosupportthisobjective(HooiLeng,2002;Yangetal.,2007).PDMsystemsfacilitatesharingtherightproductinformationat theright timeresulting inreducedproductdevelopment lead-timeandcost (Nairetal.,2001;Philpotts,1996).ProductmodularityisalsoanimportantmethodusedbymanyfirmstoshortenNPDlead-time,minimiseproductdevelopmentcostandcreatesuccessivevariantsofthesameproductline(Mikkola&Gassmann,2003;Danese&Filippini,2010).Forrapidproductdevelopment,thetimepressurepreventsthechangesofinthesupplychainprocessandentailsananticipationofthesupplychainconstraintsatanearlystage(Lee&Sasser,1995;Peroetal.2010).DesignforX(DfX)addressespossibleproductdesignissuesintotheproductdevelopmentphasesothatthenewproductwillconformtotheexistingbusinessprocesses(Holt&Barnes2010;Lehtoetal.,2011).SuccessfulDfXimplementationcanleadtobenefits,whichincludedecreasedproductlifecyclecost,efficientproduct design, quality improvement and shortened time-to-market (Barbosa&Carvalho, 2013;Gatenby&Foo,1990;Kuoetal.,2001).


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RESEARCH PRoCESS AND METHoD

Astherehasbeenlimitedresearchonthetopicofrapiddevelopment,thepresentstudyisexploratoryinnatureandappliesaninductiveapproach(cf.Thomas,2006).TheresearchprocessispresentedinFigure1.

Thisstudyutilizesqualitativeandinductiveresearchmethods.TheexistingliteraturewasreviewedtoobtainanunderstandingoftheresearchthathasbeencarriedoutonRaDe.Theliteraturereviewprovidedabasisfortheempiricalanalysis,whichwasperformedthroughamultiple-casestudy.FourcompaniesoperatinginFinlandandSwedenwereselectedasadatasource(onecasecompanyhasbeenanalysedattwodifferentsitespossessingtwodifferentorganisations,resultingintwodifferentcases)andserveasabasisforempiricalstudiesondifferentbusinessareas(e.g.hardware,softwareandservice)anddifferenttypesofindustry.Themaincompanyselectioncriteriaweretooperateinabusiness-to-businessenvironment,toconductNPDprojectsactivelyandtowishtodeveloptheirwayoforganizingfastresponsestodevelopmentneeds.

Thisstudywaspartofaresearchprojectrelatedtorapidproductdevelopment,whichtookplacebetweenSeptember2015andSeptember2017.Thequalitativeresearchdatawerecollectedbycreatingandimplementingasemi-structuredinterviewframeandbyanalyzingthecompanies’documentation(e.g., product development process descriptions). The interviews were conducted with twentyspecialists,selectedbasedontheirprofessionalbackgroundandexpertise(cf.Eisenhardt,1989).Ateachcompany,interviewswereconductedwithalltheinformantsatthesametimeallowing“multiplerespondentstoproviderelevantinputacrossfunctionsandhierarchywithineachorganisation[to]yieldamorecomprehensiveviewofnewproductdevelopmentmanagementpractices”(Barczaketal.,2006:p.518)andhelptoidentifycommonproblemsthatmayaffecttheinterviewee’sresponses(Yin,2003).Theselectedcasecompanies’informationandintervieweecharacteristicsarepresentedinTable1.

Eight semi-structured interviews,with20 informants,wereconductedby seven researchers;theinterviewquestionnairewassentinadvancesothattheinformantshadtheopportunitytogetaccustomedtothequestionsbeforehand.Duringeachinterviewandalternatively,oneresearcheraskedthequestionsbyreferringtotheinterviewguidewhiletheotherslistened,tooknotesandprovidedsupportinfollowingtheinterviewstructure.Thewrittennoteswerepresenteddirectlyonascreentogetimmediatevalidationfromtheinformants.Alltheinterviewswererecorded,transcribedandcompletedbyaddingnotes.Aftercollectingallthedata,analyseswereconductedwithineverycasetoobtainacomprehensiveunderstandingoftheRaDechallengesofeachindividualcase.Additionally,across-caseanalysiswasperformedtocomparethedifferentcaseswithoneanother.Theresultswerediscussedandconfirmedduringfourseparatefocusgroupmeetingswithrepresentativesofall theanalyzedcompanies.Alltheinvolvedresearcherstookpartoftheproofofresult toavoidmisinterpretations.

Thequestionnaireandthedataanalysisweredividedintofourmainsubsets:productdevelopmentprojectportfoliomanagement,theprocessadoptedforrapiddevelopmentandprojectmanagement,teamsetupandcollaboration,andDesignforX(DfX)(Appendix).AsDfXisirregularlyunderstoodinthecasecompanies,ithasbeenpresentedastheproductdesignrequirementsandguidelinesfromthereceivingbusinessprocessespointofviewinordertoavoidproductspecificinvestmentsandprocesses.Theconceptispresentedinthesamewayinthispaper.

Figure 1. Research process


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RESULTS

Rapid Development ChallengesThecasecompaniesareutilizingtwotofivedifferentmodelstodevelopnewproductsortechnologies.Thosemodelsrepresentdifferentneedsforthecompanies,fromlongandexpensivetechnology/majornewproductdevelopmenttodevelopmentinvolvingfasterandcheaperminorchanges.Lately,everycasecompanyhasseenanincreasednumberofactivitiesfornearlyalltheproductdevelopmentmodels.

The current operational model of the RaDe type activity is based on engineering changemanagement(ECM)ineverycompany.Initially,ECMaimsatimprovingorreducingthecostofexistingproductswithoutcreatingnewsalesitems.However,theintentionofRaDeisthedevelopmentof thenewsales items.Thetimeframe,goals,andorganizationtorunRaDeprojectsvaryin thedifferentcompanies.ThecompanyBusesECMtocreatenewsalesitemsbasedonexistingmaterials,productionparametersandmanufacturingtechnologieswhiletheothersutilizeECMfortechnicalmodificationsofexistingsales itemswithoutcreatinganewproduct.Unliketheothers, thecasecompanyDdoesnotpossessapermanentRaDelineorganization.Allthecompaniesutilizetheirexistingmanufacturingtechnologiesanddeliverymodels;nonewcapabilitiesinthesupplychainarecreatedduringRaDeprojects.

Productportfoliomanagementisappliedtoeverycompanybutthepracticesdiffer.Allthecasecompaniesutilizebusinesscasesforevaluatingandprioritizingprojects.ProjectportfoliomanagementofRaDeisassignedtoaspecificsteeringteam(ST)inallcompaniesbutthelineorganizationoftheSTChairmanmaybedifferentandthefrequencyofthemeetingsdiffers.ThecriteriaforselectingRaDedevelopmentmodelarealmostsimilarsuchastimeframe,cost,andworkforce.Allthecasecompanieshavemodularproductstructuresavailable.Asamajordifferencetoothers,thecompanyAistheonlyonetofullyuseandrecognizetheproductlifecyclephases.

Table2showsanoverviewofthecompanies’productdevelopmentincludingtheircurrentwayofdevelopingproductsrapidly.

Table 1. Case companies’ information and interviews characteristics

Case Company type and size

Product type

No of interviews

No of informants Role of the informants

A

Telecommunicationandcommunication

equipment.Large

Tangibleand

intangible

2(1,5fulldays) 4

•HeadofProductDevelopment•HeadofProductEngineering

•ProductManager•TechnicalProductManager

B IronandsteelLarge Tangible

2differentsites(1fullday

interviewpersite)

4•HeadofProductDevelopment•ProductDevelopmentManager

•ProductManagers

2 •ProductDevelopmentManager•QualityManager

CElectromagnetic

radiationequipment.Large

Tangible 2(1,5fulldays) 4

•ChiefTechnicalOfficer•ProjectManagementDirector

•ProductDataManager•ProductManager

DConstruction

installationequipment.Medium

Tangibleand

intangible

2(1,5fulldays) 6

•CEOandViceCEO•HeadofR&D

•R&DProjectManager•ProgramManager•ProductManager

•QualityConsultant


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Forthisstudy,theECMmodelisconsideredasthecompanies’RaDemodelbecauseitisthefastestproductdevelopmentmodelinvolvingtechnicalmodificationsofanexistingproductornewsalesitemscreation.Lateron,RaDewillbetheonlytermusedtodescribethiskindofmodel.

Rapid Development ChallengesAll interviewed companies see a potential for improvement in their rapid product developmentmodels.PracticalchallengesforRaDeemergedfromthedataanalysisandthediscussionswiththecase companies’ representatives. The results are presented following the interview findings anddividedintothesixgroups:

1. Challengesingeneral2. Challengesongovernancemodelsandteamsetups3. ChallengesonRaDeprocessesandtools4. ChallengesonRaDetargetsandkeyperformanceindicators(KPIs)5. Challengesinproductdatamanagement(PDM)6. ChallengesonDfX

Challenges in GeneralRapiddevelopmentisseenasagenericchallengeinthecasecompanies’regardlessthematurity,thehistoryandtheindustrysectorofthecompany.Duetotheincreasedlevelofcompetition,thedevelopmentofnewproducts is seencrucial for thecasecompaniesandhas recentlycausedanincreasingnumberofactivitiesinproductdevelopment.Asthefullscale,expensiveandresource

Table 2. Case companies’ product development models and RaDe

Case Different product development models Current Rapid development model

A

5models(technology,productplatform,majornewproduct,mediumenhancement,minorchanges)

•ECMworkflow,technicalmodificationsofexistingsalesitems•Permanent“RaDe”lineorganization,co-locatedteam•Timeframe:1–2months,upto6months•200projectsperyear•RaDeprojectportfoliomanagement:bi-weeklymeeting•Goal:costreductions,qualityimprovements

B12models(majornewproduct,minorchanges)

•ECMworkflowcreatingnewsalesitems•Permanent“RaDe”lineorganization,co-locatedteam•Timeframe:1–2days•Hundredsofprojectsperyear•RaDeprojectportfoliomanagement:weeklymeeting•Goal:newproductfunctionalities,costreduction,competition

B22models(majornewproduct,minorchanges)

•ECMworkflowcreatingnewsalesitems•Permanent“RaDe”lineorganization,co-locatedteam•Timeframe:1–2days,uptoonemonth•Hundredsofprojectsperyear•RaDeprojectportfoliomanagement:monthlymeeting•Goal:Newcustomerneedswithhigh-qualityaspects

C

3models(majornewproduct,mediumenhancement,minorchanges)

•ECMworkflow,technicalmodificationsofexistingsalesitems•Permanent“RaDe”lineorganization,co-locatedteam•Timeframe:2–3months•Tensofprojectsperyear•RaDeprojectportfoliomanagement:bi-weeklymeeting•Goal:veryfasttime-to-market,desireforgrowth

D

3models(majornewproduct,mediumenhancement,minorchanges)

•ECMworkflow,technicalmodificationsofexistingsalesitems•Specialisedindividuals,co-located•Timeframe:1–6months,upto9months•50projectsperyear•RaDeprojectportfoliomanagement:weeklymeeting•Goal:creatingsalesrevenue,costreductions,qualityimprovements


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consumingnewproductdevelopmentdoesnotfiteverycase,companiesalsostrivetouseafasterproduct development models in case of incremental product development needs with criticaltimeframes.Theselectionoftherightproductdevelopmentmodelisseenasacommonchallengeinthecasecompanies.EventhoughthecompanieshavecriteriatoselecttheRaDetypeofdevelopment,itappearstonotalwaysmatchtheexpectedscopeattheendoftheproject(e.g.,toolongortoocostlyproject).Table3presentsthecompanies’specificgeneralchallengesrelatedtoRaDe.

Challenges on Governance Models and Team SetupsGovernancemodelsforRaDearenotseentobeclearineverycasecompany.ThecompanyApresentsthemostadvancedandstructuredgovernancemodel.Theresponsibilitiesindesign/productdecision-makingandprojectexecutionareclear.However,challengesoccurregardlessthecharacteristicofthegovernanceofthecasecompanies.Productownershiprelatedtorapiddevelopmentactivitiesissometimesseenuncertain.InthecasecompanyB1,itisnotclearwhoownstheproductandconfusionmay arise between technical portfolio and commercial portfolio ownership. Another commonchallengeisrelatedtothedecision-makingtostartRaDeprojects.ThisisshownforexampleinthecasecompanyD,inwhichsomeproductshavebeendevelopedthroughRaDeinordertosupportthesalesofthecoreproductbuttheyhaveendedinactiveintheportfolioandnotsoldasplanned.RaDeteamsetupsalsodifferbetweencompaniesandeveninsidethesamecompany.InthecompanyB,siteB1possessesafullycommittedlineorganizationforRaDewhileinsiteB2,RaDeactivitiesarepartofaqualityteam.Table4presentsthecompanies’specificchallengesrelatedtoRaDegovernancemodelsandteamsetups.

Challenges on RaDe Processes and ToolsRaDehasnotbeendescribedasaclearprocess inanyof thecasecompanies.Mostly theRaDeactivities aredescribed as anECM typeofworkflow, althoughRaDeprocess in caseB2 is notrepresentednordescribed.ToolstorunRaDeprojectsappeartobelackingandchallenging.SomeRaDespecifictemplatesandtoolshavebeendevelopedinsomecasecompaniesinordertomanageRaDeactivities(e.g.,caseDusestaskcardtodocumentandfollowtheproductmodification)buttoolsforprioritization,evaluation,anddecision-makingarelacking.Table5presentsthecompanies’specificchallengesrelatedtoRaDeprocessesandtools.

Table 3. Specific general challenges related to RaDe

Case Specific general challenges related to RaDe

A

•DifficultiesindecidingifarequiredmodificationshouldbeimplementedthroughRapiddevelopment(i.e.modifyinganexistingproduct)orasfeaturestoanewproduct.•RaDeconceptfornewproductcreationisnon-existingbutwellutilizedinfurtherimprovementofexistingproducts.

B1 •Theproductportfolioisgrowinganditsclean-upisnotadequatelyexecuted.•Themodificationrequestisoftenunclear.

B2 •RaDeprocessisnotvisuallyrepresented.•Themodificationrequestisoftenunclear.

C•ThelackofhumanresourcescausesinefficiencytocarryoutRaDeprojects.•MediumenhancementproductdevelopmentmodeloverlapstheRaDemodel.•RaDeconceptfornewproductcreationisnon-existing.

D•Theproductdevelopmentteamcultureisnotenoughcross-functionalyet.•ThecurrentRaDemodeltimeframediffersgreatly.•RaDeconceptfornewproductcreationisnon-existing.


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Challenges on RaDe Targets and Key Performance IndicatorsCasecompanieshavecleartargetsandKPIsforRaDeinitiative,includingthetraditionaltargets–cost,timeandquality.IncasecompaniesfocusingtheirRaDeactivitiesoncostreductionandmodificationsofexistingproducts(casecompaniesA,C,D),thetargetssettingismostlymanufacturing,testingandqualityrelated.Incontrast,companiesthataimfornewsellableproducts(casecompanyB)haveawiderbusinessrelatedtargetssetting.Thefollow-upofthebusinesscaseisacommonchallengeforthecasecompanies.Thedevelopedproductisnotsystematicallyevaluatedtodeterminewhethertheexpected targetsdefined in thebusinesscasehavebeen reachedornot.Table6presents thecompanies’specificchallengesrelatedtoRaDetargetsandKPIs.

Challenges on Product Data ManagementPDMisseenasacommonchallengeforeverycasecompany.InthecasesA,B1,andC,RaDeteamisresponsibleforthedatamanagementactivitiesrelatedtotheproductchanges.Regardlessthedatamanagementresponsibilities,gettingdetaileddatafortheproductdevelopmentmaybecomplexduetofragmenteddatabasesanddatasources.AsanexampleincasecompanyD,alotofproductdata,documentation,datasheetswhicharenotcentrallyavailablemakesitdifficulttoefficientlyretrievetheneededinformationfordealingwithRaDeprojects.Table7presentsthecompanies’specificchallengesrelatedtoPDMinRaDe.

Challenges on DfXDfXconcepthasbeenunderstoodandimplementeddifferently.Itisknownasaconceptinonlytwocasecompanies.IncasecompanyA,DfXhasbeendevelopedformanyyearsandtheimplementationoftheprocessissystematicwhileinothercasecompaniestheconceptisnotevenknownasatopic.ThelackofDfXguidelinesandrequirementsmanagementincaseofRaDecausechallengesintherapiddeliveryoftheproducts.IncompanyD,productdesignchangesmaycauseissuesinproductmanufacturing,packaging,andinstallation,thusextendingtheshipmentoftheproducttothecustomer.However, toallow fast andcost-efficientRaDeprojects, thecompaniesaimatnochange in thereceivingbusinessprocessesduetoproductdesign.IncompanyC,itisspecifiedthatinthecaseofRaDe,nonewassembly,testandverificationprocessesshouldbedoneaswellasthefield-provenbuildingblocksandshelfcomponentsshouldbeusedinordertoavoidlengtheningthedevelopmenttime.Table8presentsthecompanies’specificchallengesrelatedtoDfXinRaDe.

Table 4. Specific challenges on governance models and team setups

Case Company-specific challenges on governance models and team setups

A

•Decision-makingrelatedtomultipleproductsisachallenge(componentsareusedintensofdifferentproducts).•Theflowofinformationischallengingduetothesizeandtheworldwideproductdevelopmentteamsofthecompany.

B1 •Nospecificchallenges.

B2•NoRaDeteaminplace.•ThegovernancemodelandorganizationofRaDeisnotclearforapartoftheportfolio.•Clearresponsibilitiesandstructurearelacking.

C•NofullydedicatedteamandnofullcommitmenttotheRaDeprojects.•Resourcesscarcityandattributionconflict.•Lackofprojectmanagementandclearresponsibilities.

D•NoRaDeteaminplace.•Decision-makingininitiatingRaDeprojectsisnotformalized.•Lackofvisibilityontheongoingprojects,theirnumberandthestatusoftheresourceutilization.


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Table 5. Specific challenges on RaDe processes and tools

Case Company-specific challenges on RaDe processes and tools

A•RaDeisnotdescribedasaprocessbutasalighterworkflowtypeofactivityanddecision-makingdescription.•Challengesincombininghardwareandsoftware,whicharepartlydevelopedindependently.

B1

•Noactiveproductlifecyclemanagementinuse.•Noactivemanagementofproductrampdowns.•Unformulateddevelopmentrequestacceptancecausinginefficiency.•Utilisationofoldtools.

B2

•Noactiveproductlifecyclemanagementinuse.•Noactivemanagementofproductrampdown.•RaDeprocessisnotrepresentednordescribed.CreationoftheRaDeworkflowisseenasachallenge(description,implementation,follow-up)•Utilisationofoldtools.

C •RaDeprojectsdonotemployanorganizedprocessandcouldbebetterstructured.•Productlifecyclemanagementmodelisunderdevelopmentandyettobeinuse.

D •Noactiveproductlifecyclemanagementinuse.•Nodefinedprocesstocommunicatethedesignchanges.

Table 6. Specific challenges on RaDe targets and KPIs

Case Company-specific challenges on RaDe targets and KPIs

A •Nospecificchallenges.

B1 •NospecificRaDetargetsareinplace.•Theindividualprocessdurationsarenotmeasured.

B2 •Thecostmetricsarenotimplementedyet.

C •Nospecificchallenges.

D •Projectcostandprogressarenotmeasured.•NospecificRaDetargetsareinplace.

Table 7. Specific challenges on product data management

Case Company-specific challenges on Product Data Management

A •PDMsystemsupportsinefficientlyproductmodularityanalysisandmanagement.

B1 •Lackofproperdocumentationandknowledgetransferissues.

B2 •Nospecificchallenges.

C •NoPDMsystemavailable.

D •Nospecificchallenges.


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Rapid Development EnablersIn this part, the enablers or prerequisites for implementing rapiddevelopment in companies areproposed.Thesixenablersderivingfromtheliterature,thecasecompanies’interviewsandfromtheanalysisofthechallengesregardingRaDeprojectscanbesummarisedasfollows:

1. Definitionoftheconceptofrapiddevelopment

Theconceptofrapiddevelopmentcouldbeunraveledthroughfundamentalquestionssuchas:whatrapiddevelopmentis,aswellaswhy,whenandhowtoperformRaDe.Thepositiveoutcomesofowningandengagingthiskindofmodelforunexpectedandtime-criticalincrementalproductdevelopmentshouldbeunderstood.ThescopeofRaDeshouldbe identified;RaDeprojectaimsatcreatingnewsales itemsbyquicklymodifyinganexistingproductfittingtheexistingproductportfolio.Thecompanyshouldbecapableof identifying thedifferentdevelopmentrequirementsaswellasestablishrulesandcriteriainordertoselecttherightdevelopmentmodel–subsequentlychoosingtheRaDemodelappropriately.Theexistingproductportfolioshouldalsobestructuredforrapiddevelopment(e.g.,highproductmodularity)andaccordingtothecommonproductdatamanagementandportfoliomanagementconceptinordertoreachthehighutilizationofcommonitemsbothincommercialandtechnicalportfolios.

2. CreationoftheRaDetargetsandKPIs

TheRaDetargetsandKPIsshouldbedefined.Metricssuchasprojectcostorprocessesdurationshouldbemeasured.Thetargetsshouldbeconnectedtothestrategicproductportfoliomanagementtargetstoensurethattheproductstobedevelopedfitwiththecompanystrategy.Thelifecycleofeveryindividualitemfromthecompanyproductportfoliomustbeidentified.

3. CreationofRaDegovernancemodelandteamsetups

Apermanent,nominatedandcompetentRaDeorganizationshouldbeestablished.TherelatedRaDeteamshallbededicated,co-located,autonomous,cross-functionalandabletoperformsmalleffortprojectswithoutbureaucracy.CompetentindividualsinvolvedintheRaDetypeofactivitiesandefficientpeoplemanagementapproachiscrucial.ToensurearapiddeliveryoftheproductdevelopedthroughRaDe,afastandleangovernancemodelmustbedefinedinrelationtotheproductportfoliomanagement.Thestakeholdersandtheirrequirementsshouldbeacknowledgedandconsidered.

Table 8. Specific challenges on DfX

Case Company-specific challenges on DfX

A •ThescopeoftheDfXinRaDeisverynarrowandtheguidelinesarenotstrictlyfollowed.•Themodificationrequestisoftenunclear.

B1 •DfXhasnotbeenimplementedasaconceptandisnotaknownterminology.•Requirementsmaybeunclear.RaDeorganizationlacksrequirementsmanagementknowledge.

B2 •DfXhasnotbeenimplementedasaconceptandisnotaknownterminology.•Requirementsmaybeunclear.

C •DfXisrecognizedasaconceptbutdesignrulesareonlypartiallydocumented.•Customerrequirementsmaybeunclear.

D •DfXhasnotbeenimplementedasaconceptandisnotaknownterminology.


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4. CreationofRaDeprocessesandtools

RaDeprocessesandtoolsshouldensureefficientandfastdecisionmakingwhetherornotinitiatetheprojectandthendeliveringtheproductintheagreedterms.RaDemaybedescribedinformofaclearbutflexibleworkflowincludingthebusinesscaseanddecision-makingprocess.TheRapiddevelopmentorganizationshouldrelyontheexperts,whoareactuallydoingtheworkfrombeginningtoendoftheprojectandnotbebasedonatoorigid,hierarchicalandwell-structuredprocess,whichmaydelaytheproductdevelopment.ThetoolsforRaDeshouldfacilitatetheaccomplishmentofalltheactivitiesinacoordinatedmannerinordertoachievetheagreeddeliverytimetothecustomer.

5. Dataavailabilityandreporting

Thedata availability capabilities shouldbe created according to theneeded information forinitiatingandperformingRaDeprojects.Therequiredinformationshouldbeclearandconnectedtocompany’sproductdataandproductportfoliomanagementconceptsclosely.RaDeconcept,targetsandKPIsshouldbeunderstoodandrecognizedbytheinvolvedpersonnelinordertodevelopthedataspecificationincaseofRaDe.TheoriginalrequirementsforRaDeshouldbewellspecifiedanddocumentedatanearlystageoftheprojectandattheend,thelessonslearnedmustbeconsideredandpreservedforfutureactivities.

6. DfX

TheDfXconceptshouldbetakenintousefortherequirementmanagement;theproductdesignchangesincaseofRaDeshouldentailminimalornochangesinthereceivingbusinessprocesses,thusallowingthefastandcost-efficientstartofproductsales,delivery,andcareactivitiesbythebusiness processes. For instance, no new supplier should be involved in RaDe projects and theexistingsuppliersshouldbequalifiedsothattheyarecapableofprovidingtheneededmodulesorcomponentsincaseofRaDe.

DISCUSSIoN

NPDresearchhasbeenongoinginthelastdecadesandnearlyeverycompanyisutilizingamilestone-drivenmodelorsimilartodeveloptheirnewproducts(Cooper,2009).Thismodelpresentsanumberofadvantagesincludingproblemidentifications,progressassessmentandproductqualityassurance(Cooper,1986;Ulrich&Eppinger,2000).However,thismodelmaynotfiteveryproductdevelopmentneedsandusingmultipleapproachesformanagingdifferenttypesofproductdevelopmentiscrucial(Becker,2006;Cooper,2008;Ward,2007).ThisarticlefocusesonthemanagerialviewpointofthelighterandshorterproductdevelopmentprocesscalledRapiddevelopment.Newinsightson thechallengesfacedbycompaniestoruntherapidproductdevelopmentprojectsareprovided.EnablerstoimplementRaDearealsoproposed.Resultsarealignedwiththecurrentliteraturestatingthatinordertoachievefasterproductoffering,adifferentstructureandmanagementcomparedtothetraditionalNPDmodelisnecessary(Birkinshaw&Gibson,2004;Tushman&O’Reilly,1996).Additionally,RaDeprojectsshouldnotcauseaneedtoadaptthesupplychainprocessestoallowimmediateproductramp-ups.ThescopeofchangesincaseofRaDeshouldberestrictedsothatnonewsupplychaincapabilitiesshouldbecreated(suchasnonewsuppliernornewmanufacturingtechnologies).ThisisconsistentwithfindingsconcerningsupplierinvolvementinthecaseofRaDe(Niskanenetal.,2015).


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Managerial InsightsThefindingscanaidbusinessmanagersinunderstandingtheroleofRaDeasanalternativeproductdevelopmentframework,whichsupplementsthetraditionalNPD.Whenthecurrentproductportfoliofailstosatisfyeconomicandstrategicbusinessneeds,RaDemodelshouldbeusedtofindasolutionwithinalimitedandshorttimeframe.RaDeisnotmeantfordevelopingradicalinnovations,butrathertocreatenewsalesitems,whichcomplementtheexistingproductportfolio,inafastmanner.ThescopeofRaDeshouldbeclearsothatsmallproductchangesdonotleadtoaradicalinnovation.Itisworthnotingthatfeaturesfromexistingproductsmayberemoved.Otheraspectsshouldbetakenintouseinthewayacompetitiveproductshouldnotonlyaddressashortdevelopmentlead-timebutalsofocusonfactorssuchascost,performance,andquality.ThechallengesandtheenablersforimplementingRaDemodelcanbeusedbypractitionerstounderstandandinitiatethiskindconceptofproductdevelopment.

CoNCLUSIoN

Inthisstudy,thepracticalchallengesrelatedtoRaDewereidentified.Rapiddevelopmentisseenasagenericchallengeregardlessthematurity,industrysectororhistoryofthecompany.Severalreasonsmayinhibitarapidproductdevelopment.TheabilitytocreatenewsalesitemsthroughRaDeisasignificantchallengeinthecasecompaniesandonlyoneiscapableofdoingso.BeforeRaDeactuallytakesplace,selectingtherightproductdevelopmentmodelandsubsequentlychoosingtherapiddevelopmentmodelappropriatelyisnotalwaysseentobeclearevenwithdefinitecriteria.ThedecisionmakingwhethertostartRapiddevelopmentprojectornotisseenchallengingandtoolsforprioritization,evaluationanddecision-makingarelacking.ThedevelopedproductsthroughRaDearenotsystematicallyevaluatedtodeterminewhethertheexpectedtargetshavebeenreachedornot.Additionally,gettingdetaileddatafortheproductdevelopmentmaybechallengingduetofragmenteddatabases.Finally,thelackofDfXguidelinesandrequirementsmanagementincaseofRaDemaycausecomplicationsintherapiddeliveryoftheproducts.

TheenablersforimplementingRaDemustbeconnectedtothemainchallenges.TheinitialbasicenableristoenhancetheunderstandingoftheideaandconceptofRaDe,followedbythecreationofthetargetsandKPIsaccordingtothecompanystrategy.Therefore,RaDegovernancemodel,processes,andtoolsshouldbedefinedandimplemented.Furthermore,theutilizationoftheexistingsupplychainplatformsandthefitoftheproducttobedevelopedwiththecurrentbusinessprocessesareaprerequisiteofRaDe.Finally,thelastenableristhecreationofthedatarequirementspecificationaccordingtotheneededinformationforinitiatingandperformingRaDeprojects.

Thelimitationsofthisstudyincludealimitednumberofcasecompaniesandadeeperanalysiswouldincreasethevalidityofthecurrentfindings.Thestudyfocusesonlargeandmedium-sizedcompanies;hence,thenextstepwouldbetostudysmallerenterprisesandotherindustrysectors.FutureresearchcouldalsofocusonstudyingmoreindetailstheimplementationofRaDe(suchastargets,KPIs,governancemodel)aswellastheimpactsofthiskindofrapidresponsemodelonthereceivingbusinessprocesses(suchasSupplierManagementorManufacturingprocesses).


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APPENDIX

Background, the Product Development Project Portfolio of The Case CompanyProductDevelopmentProjectPortfolio

1. What are the different product development models in the company’s product developmentportfolio?Suchas◦ Technologydevelopment,platformdevelopment(FullmilestonedrivenNPD)◦ Majornewproductdevelopment(FullmilestonedrivenNPD)◦ Mediumenhancementtypeofproductdevelopment(lightNPD,fewermilestones)◦ Minorchanges(RapidDevelopment,RapidProductisation)

2. Are there only global projects or are there regional, country or customer-specific productdevelopmentprojectsaswell?

3. Arethereothertypesofclassificationsinyourproductdevelopmentportfolio?4. Whatisthesizeofthetechnologyandplatformdevelopmentprojectportfoliosinyourcompany?

◦ Numberofnewtechnologydevelopmentprojects?◦ NumberofnewHWandSWplatformdevelopmentprojects?

5. Howmanyproductdevelopmentprojectsdoyoucarryoutannuallythatresultincompletelynewsalesitems(NPDprojects)?◦ Majornewproductdevelopmentprojects,HWandSW◦ Mediumnewproductdevelopmentprojects,HWandSW◦ Minornewproductdevelopmentprojects,HWandSW

6. Howmanyproductdevelopmentprojectsdoyoucarryoutannuallythoseresultsinimprovementstoexistingsalesitems(improvementprojects)?◦ Majorenhancementforexistingproducts(newversions),HWandSW◦ Mediumenhancementsforexistingnewproductdevelopmentprojects,HWandSW◦ Minornewproductdevelopmentprojects,HWandSW(potentialRaDeprojects)

7. Howareyourproductdevelopmentorganisation’s resources splitbetweendifferent typesofprojects(platform/technology/NPD/improvementprojects)intermsof:◦ Percentageofprojects?◦ Workforce/employees?◦ Costs?

8. Duringpastyears,howhastheamountofproductdevelopmentprojectsdeveloped?(increased/decreased)◦ Inplatformprojects?◦ Intechnologyprojects?◦ NPDprojects?◦ Improvementprojects?◦ Whathavebeentherootcausesofthisdevelopment?

9. Whatareyourproductlifecyclephases?10.Doyouhavemodularproductarchitecture?11.Doyouhavedetailedinformationofyourcurrentproductarchitecture/structure/modulesavailable

inyourcurrenttools?12.Howmanystages/gatesexistinyourNPDprocess?Howaretheydistributedalongthewhole

process?

PortfolioManagementforProductDevelopmentProjects


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13.Doyouhaveanorganisationalunitoracross-functionalsteeringbodyforproductportfoliomanagement?

14.Doyouhaveanydescriptionsavailablefortherelatedgovernancemodel?15.Whoisthechairofthecross-functionalsteeringbodyandtherelatedstakeholders?16.Howmanypersonsareinvolvedinproductdevelopmentprojectportfoliomanagementactivities?17.How much power do different participants (roles) have in product development portfolio

managementsteeringgroup?18.What is the frequency of your planned product development project portfolio management

meetings?◦ Whatisthestandardagendaoftheseplannedproductdevelopmentportfoliomanagement

meetings?19.Whatarethemaintoolsutilisedinproductdevelopmentportfoliomanagement?

◦ Withinprojects/productevaluation?◦ Prioritisationanddecision-making? (Strategicapproaches,diagrams,matrices, financial

KPIs,simulations,mathematicalmethods,etc.)20.Howdoyourtoolssupportcollaborationwithsuppliersforadequateinformationsharingduring

development?21.Whatkindofcommunicationandchangemanagementtasksaredonebyproductdevelopment

projectportfoliomanagement?◦ Whodoesthiscommunication?

CriteriafortheSelectionofProductDevelopmentModels

22.HowisprioritisationbetweendevelopmentprojectsdoneduringNewProductDevelopment?23.Whataretheevaluationcriteriatoprioritisewhichproductdevelopmentprojectsaretobestarted

orcontinued?◦ Howisbusinesscaseinvestigationandplanningconducted?◦ Whatarethestagesinbusinesscaseevaluation?

24.Whatareproductdevelopmentprojectportfoliomanagementtargets/keyperformanceindicators(KPIs)?

25.Whatarethetoolsutilisedinprioritisationandevaluation?Forexample:◦ Design-for-X(DfX)requirementsfromreceivingbusinessprocessespointofview◦ Sizeofthetechnicalchanges◦ Sizeandnumberofneedednewfunctionalities◦ Sizeoftheplannedworkamount◦ Time-to-market◦ Sizeoftheprojectbudget◦ NumberofparticipatingR&Dlocations◦ Somethingelse,pleasedescribe?

Rapid Development Process and Project ManagementRapidDevelopmentProcess

26.WhatisthestrategicgoalofRaDetypeofproductdevelopment?◦ Consumerneedsforanewproductfunctionality?◦ Competition’sperformance?◦ Costreduction?◦ Geographicaldifferentiation?◦ Somethingelse,pleasedescribe?


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27.Whatkindofinformationisneededtodecidebetweendifferentproductdevelopmentmodels?◦ HowdoyoudecidewhetheraproductdevelopmentisNPDorRaDe?

28.WhatkindofimpactdoesthefollowingcriterionhaveinthedecisionbetweenanNPDandRaDeproject?◦ Architecturalcompatibility◦ Needed(development)workeffort◦ Developmenttime◦ Neededresources◦ Demandforothermarketsorcustomers◦ Designforvariability◦ Productstrategy◦ Productvariation

29.WhatkindsofproductsareusuallycarriedoutusingRapidDevelopment?30.WhatkindofproductchangerequirementsareusuallycarriedoutusingRapidDevelopment?31.WhatarethemajorprocesschangesfortheRapidDevelopmentprocesscomparedtoNPD?32.WhatarethetypicalprojectphasesinRapidDevelopmenttypeofproductdevelopment?

◦ Doyouhaveanyprocessdescriptionsavailable?33.Howmanystages/gatesexistinyourRapidDevelopmentprocess?

◦ HowarethesestagesdifferentfromnormalNPDstages?34.Are there mandatory development phases that must be done in every product development

project?(IncludingNPDandRaDe)35.WhichphasescanbecompromisedoroverlookedinordertoachieveagilityandspeedinRapid

Developmentprojects?36.WhatisthetypicaldurationofaRapidDevelopmentproject?(comparisonwithfull-scaleNPD)37.WhatisthedistributionoftimespentineachphaseofRapidDevelopment?38.WhatisthedistributionofcostsspentineachphaseofRapidDevelopment?39.ArethefollowingdevelopmentphasesusedinRapidDevelopment,oraretheyratherusedin

normalNPDtypeofproductdevelopmentprojects?◦ Feasibilitystudy(Includingrequirementmanagementandfeaturemanagement)◦ Projectplanning◦ Specificationandconceptualising◦ Design◦ Developmentandintegration◦ Pilotingandtesting◦ Rampup

40.Whoarethestakeholdersinvolvedineachphase?◦ Whatisthenatureofyourcustomerrequirementscreeningprocess?

41.Whatarethedecision-makingpointsinRapidDevelopmentprojects?◦ Arethesedecision-makingpointstime-basedordoestheprojectneedtofulfilmilestone

criteriafirst?

RaDeGovernanceModelsandDecisionMakingBodies

42.Who are the stakeholders influencing and having requirements for the Rapid Developmentactivities?◦ WhatistheroleofthedifferentstakeholdersintheRaDevaluechain?◦ WhatistheimpactofthedifferentstakeholdersintheRaDevaluechain?◦ WhatisthecontributionofthedifferentstakeholdersintheRaDevaluechain?

43.Whatkindofgovernancemodel,steeringandmanagementboardsareorganisedforinitiatingandmanagingRapidDevelopmentprojects?


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44.HowdoesthedecisionmakingtakeplacetoinitiateaRapidDevelopmentproject?45.HowareRapidDevelopmentprojectsestablished?(suchasnominationoftheprojectmanager

andateam)46.HowisthedecisionmakingorganisedduringRapidDevelopmentprojects?

◦ WhatkindsofdecisionscanbemadeinternallybytheRapidDevelopmentprojectteamandwhatkindsofdecisionsneedtoberaisedtohighersteeringbodies?

RaDeProjectManagement

47.WhatisthefrequencyoftheplannedRapidDevelopmentprojectmanagementteammeetings?48.WhoaretheparticipantsinRapidDevelopmentprojectmanagementmeetings?

◦ Whatarethestandardagendatopicsofthesemeetings?49.Howarerapiddevelopmentprojectsorganisedinthecompany?Forexample:

◦ ByBusinessUnitsandBusinesslines?◦ Insomeotherway,suchasthetypeofproductdevelopmentprojects?

50.Whohasthefinancialresponsibilitytomakebudgetallocationdecisions(e.g.thesizeoftheoverallprojectbudgetanditsallocationwithintheproject)inRapidDevelopmentteams?

51.WhohastheresponsibilityforprojectplanningandprojectmanagementinRapidDevelopmentprojects?

ProductDevelopmentTargetsandKeyPerformanceIndicators(KPIs)forRapidDevelopment

52.Whatarethetargetsandthemetricsforproductdevelopmentprojects?IncludingbothNPDandRaDeprojects.◦ IsthereanydifferenceintermsoftargetsandmetricsforRaDeprojects?

53.WhatarethetypicaltargetsandKPIsforrapiddevelopmenttypeofproductdevelopmentprojects?54.Howdoyoumeasuretheprogressofrapiddevelopmentprojects?55.WhatisthedifferenceindeliverycapabilitycreationofrapiddevelopmentcomparedtoNPD?56.WhatisthedifferenceinsalescapabilitycreationofrapiddevelopmentcomparedtoNPD?57.WhatisthedifferenceinservicecapabilitycreationofrapiddevelopmentcomparedtoNPD?

OrganisingRapidDevelopment

58.DoyouhaveanychallengesinproductownershipandproductgovernancerelatedissuesinRapidDevelopment?

59.WhatarethemainchallengesrelatedtoproductportfoliomanagementinRapidDevelopment:◦ Inproductportfoliotargetsettingandmeasurementrelatedissues?◦ Inportfoliomanagementprocessrelatedissues?◦ Inportfoliomanagementtoolsrelatedissues?◦ Inportfolioandproductdata(anddataavailability)relatedissues?◦ Somethingelse,pleasedescribe?

60.How would you improve your company’s product portfolio management related to RapidDevelopment?

61.WhatarethesuccessfactorsforRapidDevelopmentprojects?

Team Set Up and CollaborationNewProductDevelopment(NPD)ProjectTeamSetup


46

62.WhatisthecompositionofyourNPDteams?63.WhodotheNPDteammembersreporttoduringtheprojectsandhow?64.WhoaretheteamleadersinNPDprojects?65.HowaretheNPDteamstasksassigned?66.Whatistheextentofself-managementinNPDteams?67.HowbigaretheNPDteamsandarethereanydifferencesbasedondifferenttypesofprojects?68.Howarepeopleassignedand/orchosenforNPDteams?69.WhatisthelevelofworkspentontheprojectfortheNPDteammembers?(Full-timevs.Part-time)70.AreNPDteamsco-locatedordispersedbetweendifferentlocations?71.HaveyoudefinedacoreteamandanextendedteamforNPDprojects?72.WhatarethecorecompetenciesofpeopleinNPDprojects?

◦ ProjectManagement◦ HWcreation◦ SWcreation◦ Integrationandverification◦ SalesCapabilityCreation(Marketing,SalesandContracting)◦ DeliveryCapabilityCreation(Purchasing,manufacturing,testing,logistics)◦ ServiceCapabilityCreation(productinstallation,productimplementation,use,maintenance

andrepair)73.HowdoyouensureNPDteammembersknowthecommoncommitmentandgoals?74.HowareNPDteamsrewarded?75.HowmuchcantheNPDteamsinfluencetheirownworkpractices?

RapidDevelopmentProjectTeamSetup

76.WhatisthecompositionofyourRapidDevelopmentteams?◦ AretheredifferencesbetweenNPDandRapidDevelopmentprojectsinregardstoteam

composition?77.WhodotheRapidDevelopmentteammembersreporttoduringtheprojectsandhow?

◦ WhatisthenumberofmanageriallevelsinRapidDevelopmentprojects?78.WhoaretheteamleadersinRaDeprojects?79.HowaretheRapidDevelopmentteams’tasksassigned?80.Whatistheextentofself-managementinRapidDevelopmentteams?81.HowbigaretheRapidDevelopmentteamsandarethereanydifferencesbasedondifferenttypes

ofprojects?82.Howarepeopleassignedand/orchosentoRapidDevelopmentteams?83.WhatisthelevelofworktimespentontheprojectsfortheRapidDevelopmentteammembers?

(Full-timevs.Part-time)84.AreRapidDevelopmentteamsco-locatedordispersedbetweendifferentlocations?85.HaveyoudefinedacoreteamandanextendedteamforRapidDevelopmentprojects?86.WhatarethecorecompetenciesofpeopleinRapidDevelopmentprojects?

◦ ProjectManagement◦ HWcreation◦ SWcreation◦ Integrationandverification◦ SalesCapabilityCreation(Marketing,SalesandContracting)◦ DeliveryCapabilityCreation(Purchasing,manufacturing,testing,logistics)◦ ServiceCapabilityCreation(productinstallation,productimplementation,use,maintenance

andrepair)


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87.HowdoyouensureRapidDevelopmentteammembersknowthecommoncommitmentandgoals?

88.HowareRapidDevelopmentteamsrewarded?89.HowmuchcantheRapidDevelopmentteamsinfluencetheirownworkpractices?

CollaborationandCommunicationinRapidDevelopmentTeams

90.WhatkindofcommunicationmechanismsareusedinyourRapidDevelopmentprojects?◦ Doyoufeelthatyourcurrentcommunicationmechanismsareadequate?◦ Couldyoudescribeasituation,wherethecommunicationinyourteamwasworkingwell?

Whywasitworkingwell?◦ Couldyoudescribeasituation,wherethecommunicationinyourteamwasnotworking

well?Whywascommunicationnotworkingwell?91.HowarethecommunicationandcollaborationmechanismsdefinedinRapidDevelopmentteams?

(Openvs.well-defined)92.HowisinformationmanagedinduringRapidDevelopmentprojects?

◦ Howisinformationordatasharedifnecessary?93.Whatarethemainchallengesincommunication?

◦ Howdoyouovercomethesechallenges?94.HowdoyoucommunicatewithcustomersduringRapidDevelopmentprojects?95.HowdoyoucommunicatewithotherstakeholdersduringRapidDevelopmentprojects?96.WhatkindofinformationisneededfromsuppliersduringRapidDevelopment?

◦ WhatkindofinformationisneededbysuppliersduringRapidDevelopment?97.What kinds of tools are used for virtual communication in Rapid Development? (Virtual

communicationincludesinstantmessaging,email,wikis,intranets,etc.)◦ Areyourvirtualcommunicationtoolseffective?

98.Whendoyouuseface-to-facecommunicationratherthanvirtual?99.Howtheteamscooperatewithotherdevelopmentteamsduringprojects?(Formally?Informally?)

KnowledgeCreationandProblem-SolvinginRaDeProjects

100.Howareproblemsindevelopmentprojectshandled?101.Howaresolutionstoproblems/newideassharedbetweenteammembersandothermembers

ofyourorganisation?102.Doyou think that theexpertiseofall the teammembers is fullyutilisedwhensolving the

problems?◦ Couldyoudescribeasituation,whereyouwereabletoefficientlysolveaprobleminyour

team?Whywasproblem-solvingworkingwell?◦ Couldyoudescribeasituation,whereyourteamwasnotabletosolveaprobleminyour

team?Whatwasitnotworkingwell?103.Doyouorganisetrainingforyourdevelopmentteammembers?104. Ifanemployeewishestolearnanewskill,howwouldheapproachtheissue?105.Whatwouldyoudoinasituation,whereyounoticethatyourteam’sexpertiseisnotenough

tosolvetheproblem?

DfX, Business Process Requirements and Product Design RulesDfXStakeholdersandRequirements

106.Whoareyourinternalstakeholders?Whataretheirrequirements?


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107.Whoareyourexternalstakeholders?Whataretheirrequirements?108.How are the coordination &communication requirements from both internal and external

partnersacknowledgedbythecompany?109.Howaretherequirementsprioritised?110.Howaretheconflictingrequirementsfromvariousstakeholdersaddressed?111.Onwhatbasisiseachrequirementmeasured?(targets)112.WhataretheDfXconcepts/disciplinesinyourcompany?113.WhatistargetedbyDfXinthecompany?114.Whataretheparticularbusinessbenefitsintheorganisationintendedtobeachievedthrough

variousDFXconsiderations?115.WhatarethetypicalDfXtargetsandKPIs?116.WhatarethetypicalrelatedDfXproductdesignguidelines?117.WhatprocedureorprinciplesaretakenintousebytheorganisationtoimplementDfXpractices?118.Howarethedesignrequirementsmanagedinyourorganisation?119.Whatstepshavebeentakenduringearlyproductdevelopmenttopreparesales/delivery/service

capabilities?120.HowisthetrainingrelevanttoDfXorotherproceduresconducted?

◦ Whoisresponsibleforthetrainingsessionsandtowhomaretheyconducted?121.Doesthecompanyhaveanyinitiativessupportingsimultaneousproductdevelopmentactivities

anddevelopmentactivitiesforreceivingbusinessprocesses(concurrentengineering)?Ifyeshowisitdone?

ManagementandToolsofDfX

122.HowistheDfXmanagementorganised?123.How is the communicationofneedsofdifferentDfXdisciplines coordinated intoproduct

developmentandtheorder-deliveryprocess?124.Whoarethekeyresponsiblepersonsforeachdiscipline?Whataretheirroles?125.HowistheDfXinformationmanaged?Whatkindsoftoolsareusedforinformationmanagement?126.HowaretheDfXactivitiesorganisedinproductdevelopmentprojects?Istheorganisational

structure/teamsetupstandardforalltheproductdevelopmentprocess?Ifnot,onwhatbasisdoesitchange?

127.HowaretheDfXtoolscategorised(guidelines,checklist,metrics,mathmodel,method)?◦ WhatDfXconsiderationsdothesetoolsinclude?

128.CouldyoudescribeyourDfXtoolsindetail(attachdocumentsifnecessary)?◦ Arethesetoolsstandardforalltheprojects?◦ Arethesetoolssupportedbyanysoftwareprogram?Ifyes,howisitsupported?

129.WhataretheDfXchallengesidentifiedintheorganisation?130.WhatstepshavebeentakenforimprovementofDfXapproach?

DfXinRapidDevelopmentProjects

131.WhatistheDfXapproachforRaDeprojects?132. InwhatphasesofRapidDevelopmentisDfXapproachimplemented?133.HowisyourDfXapproachdifferentinyourRapidDevelopmentprojectscomparedtoNPD?134.WhataretheDfXfactorsaddedorcompromisedinaRapidDevelopmentproject?135.WhataretheDfXfactorscommonforbothNPDandRapidDevelopmentprojects?136.AretheDfXtoolsusedforRapidDevelopmentprojectsdifferentfromthatofNPD?

◦ Ifyes,howisitdifferent?


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137.WhatarethemostimportantDfXfactorsfromRapidDevelopmentperspective?138.DidthesequestionsbringupanythingelsethatyouwouldliketoshareaboutRapidDevelopment?

Jordan Verrollot received MSc in 2012 from the University of Technology of Troyes, France. He joined Industrial Engineering and Management, Faculty of Technology at the University of Oulu, Finland in 2014. His research interests include supply chain management, product management, product portfolio management and product development.

Arto Tolonen received an MSc in Engineering (1992) and Dr (Tech) in Industrial Engineering and Management (2016) from the University of Oulu, Finland. Currently, he is a Senior Research Fellow in Industrial Engineering and Management at the University of Oulu. His current research interests are product management, product portfolio management, product data management and rapid product development. He has over 20 years of experience in development of business processes and operational management of Design for Excellence product design principles, delivery capability creation, supply chain management and product data management in global companies.

Janne Harkonen received Bachelor’s degree (1st Class Honours) in Engineering Business Management from the University of Greenwich in the UK and both MSc in Process Engineering and Dr (Tech) in Industrial Engineering and Management, from the University of Oulu, Finland. He has also studied in the University of North Carolina at Wilmington, USA. He has experience working in the IT and environmental technology industries. Currently, he is a Senior Research Fellow at the University of Oulu in Finland. Dr Harkonen has authored and co-authored over 50 journal articles, and also a number of other publications.

Harri J.O. Haapasalo is a Professor of Product Management at Industrial Engineering and Management, University of Oulu in Finland. He has two main areas of research: one in product management, product development and the second one in the area of complex systems management, lean construction and business models. He has been very active in obtaining research projects, and active in journal publications. His list of publications contains more than 250 international items. He has supervised more than 30 doctoral theses and been an external examiner for more than 30 doctoral dissertations.

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