product portfolio & top-down resource capacity...
TRANSCRIPT
Product Portfolio & Top-DownResource Capacity PlanningResource Capacity PlanningPursuing Predictable Product Development
Susan TrahanSusan TrahanSusan TrahanSusan TrahanDirector of Product DevelopmentDirector of Product DevelopmentNeoMetrics, Inc.NeoMetrics, Inc.
Gary WereleyGary WereleyGary WereleyGary WereleyDirector, Product Development ProcessesDirector, Product Development ProcessesSt. Jude Medical Atrial Fibrillation DivisionSt. Jude Medical Atrial Fibrillation Division
Predictable portfolio development is built on a foundation of accurateis built on a foundation of accurate resource capacity planning
“Vision without resources is hallucination”hallucinationRobert Bruininks, President University of Minnesota
Terminology● Business Group – a grouping of like products sold to
similar customers (e.g. business, product family, division)
● Product – a device that will be sold
● Technology – enables product, process, or efficiency development
● Project – an effort to accomplish a defined goal; typically executed using a stage/gate process
● Portfolio Plan – includes project priorities, timing, cost, and resource needs; includes all types of related projects (e.g. product, technology, and clinical)
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Prerequisites● List ALL projects – active and planned
● Divide projects into relevant categoriesp j gExamples: Research
Product DevelopmentTechnology DevelopmentClinicalOperationsRegulatory/Compliance
● Prioritize projects based on established criteria
● Define project characteristics – schedule, budget, headcount, required capital, etc.
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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● FOCUS – may need to cancel or delay projects
Cross Functional Input
Marketing Clinical/Marketing
Global Market Strategy
Regulatory
Clinical and Regulatory
Product PipelinesResource PlansStrategy
Strategy RegulatoryStrategiesFinance
Budget/AnalysisProject ProposalsIntegrated Portfolio
Strategy
Resources & Technology
Budget/Analysis
Project
CapacityReadiness
Engineering
Core TeamL d
Status
Operations
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
Leaders
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Product Pipeline Creation
PD Cost Tech Cost
Business review of:Market Size / ShareBusiness Objective
Investmentfor Scenario Analysis
Business ObjectiveCompetitive StrategyInvestment Level
Business Group
PD Cadence
Tech Cadence Roadmap
UV Surface Ablation 3 9 9 9 9 9 1
UV Surface Treatment 2 9 9 3 9 9
Oversized Shaped Mold 4 9 1 9 3 3
Variable Stiffness Extrusion 1 9 3 3 9
New Coating / Tip Coat 1 9 9 3
PVS Hypotube + Sheath extension 2 9 9 1 1 1
NG2 POBA Inner 3 9 3 3 1
Tip ablation/soft tip 4 9 3 3 1
* Microfibrillar 2 1 1 1 1 1 1 1 1 1 1 High strength materials
using interpenetrating networks (E15)
2 1 1 1 1 1 1 1 1 1 1 Inorganic-Organic Hybrid
polymers for coating applications (E16)
11 1 1 1
Misc. Exploratory14
Balloon Withdrawl Resis14
UV Surface Ablation 3 9 9 9 9 9 1
UV Surface Treatment 2 9 9 3 9 9
Oversized Shaped Mold 4 9 1 9 3 3
Variable Stiffness Extrusion 1 9 3 3 9
New Coating / Tip Coat 1 9 9 3
PVS Hypotube + Sheath extension 2 9 9 1 1 1
NG2 POBA Inner 3 9 3 3 1
Tip ablation/soft tip 4 9 3 3 1
* Microfibrillar 2 1 1 1 1 1 1 1 1 1 1 High strength materials
using interpenetrating networks (E15)
2 1 1 1 1 1 1 1 1 1 1 Inorganic-Organic Hybrid
polymers for coating applications (E16)
11 1 1 1
Misc. Exploratory14
Balloon Withdrawl Resis14
Business Review
2003
Q1 Q2 Q3 Q4
2004
Q1 Q2 Q3 Q4
2006
Q1 Q2 Q3 Q4
2005
Q1 Q2 Q3 Q4
2007
Q1 Q2 Q3 Q4
TDP
PDP
TDP
TDP
PDP2
2003
Q1 Q2 Q3 Q4
2004
Q1 Q2 Q3 Q4
2006
Q1 Q2 Q3 Q4
2005
Q1 Q2 Q3 Q4
2007
Q1 Q2 Q3 Q4
TDP
PDP
TDP
TDP
PDP2
PipelineCreation
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
Review Clinical
TDP
PDP3
Clinical
TDP
PDP3
Creation
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Linking to Strategy
Cycle of Business Management• Executive Committee Review
/• Quarterly Commitments/P&L• Management Boards
Business Plan
Obj ti T h l P j t
ProjectExecution
I di id l j t i
PortfolioPlan
• Objective ‐ lead‐ compete‐maintain
• Strategy Review
•Technology Projects
•Product Development
• Clinical
• Individual project review•Stage – Gate project review
• Strategy Review
•Financial Projections
• New projectproposals
•Operations
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
proposals
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Scenario Planning
● Ability to do “what if” scenarios and assess impact on portfolio○ Budget○ FTE○ Timelinese es○ Revenue
● Examples:p○ Adding or Canceling a project○ Changing project scope or timeline○ Changing technology strategy
● Can complete analysis of multiple scenarios
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Scenario Planning
● Managing throughput requires attention to pipeline entry, resource loading, project priorities, and early cancellation of marginal projects
Pipeline Balancing • Measuring strategic investment levels• Rationalizing aggregate product-line
plans with resource capacityL f i l kill
Pipeline Balancing
$
Supporting Tools Process Elements
• Long-range functional skill set planning
• Priorities are consistent
Pipeline LoadingM i t it d id
Financial ProjectionsT
• Managing entry, exit, and mid-course corrections of development projects
• Staffing in functional areas is balanced with requirements
• Resources are focused on fewer
Pipeline LoadingPlan Actual
Investment Mix
Pipeline Delivery• Efficient individual project
assignment and loading
projects that proceed more rapidly
Pipeline DeliveryMaster Project Plan
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
assignment and loading• Look-ahead capability for
shared resource organizationsCapacity Plan11
Scenario Planning – Pipeline Interactions
For each project, there are three basic decision levers○ Scope/content
Concept Definition Design / Implementation
Evaluation Scale-up
Scope/content○ Schedule○ Resources
Effective decision making requires managing the entire project pipeline○ Projects under development○ Current and future deployment
Need clear visibility toresource constraints
○ Current and future deployment
If sufficient resources are unavailable, management has a tough decision○ Reduce the scope of the product○ Lengthen development time○ Take resources from another project○ Hire more resources or outsource work
Skill Set 1 Skill Set 2 Skill Set 3 Skill Set 4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
○ Hire more resources or outsource work○ Cancel the project
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Monitor the Portfolio
Evaluate at Multiple Levels○ Project Level Project Valuation and Performance○ Project Level – Project Valuation and Performance○ Business Group Level – Spend, Competition○ Divisional Level – Growth, Profitability and EfficiencyDivisional Level Growth, Profitability and Efficiency
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Summary of Key Points● Senior Management Support● Decision Making
N t l○ Neutral○ Prompt Decisions○ Have Authority to Make Decisions Stick○ Have Authority to Make Decisions Stick
● Review and Adjust Portfolio on a Defined Basis● Implementation: start with the basics and add capability p p y
as you master the process
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Resource Capacity Planning Value Proposition● Portfolio valuation, product pipeline maps, trade-offs,
what-if and impact analysis all come together and are realized at resource capacity planningrealized at resource capacity planning
● Resource capacity planning is the bridge between a well planned portfolio and a well executed productplanned portfolio and a well executed product development pipeline
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Planning Types● Business Planning
○ Strategic Planning○ Annual Operating Planning○ Annual Operating Planning○ Quarterly Forecast
● Project PlanningProject Planning○ Work breakdown structures○ Logical scheduling
Names tied to tasks (activities deliverables)○ Names tied to tasks (activities, deliverables)
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Planning Uses● Top-down – high-level rapid and multiple iteration
scenario analysis in support of developing realistic portfolio plansp p
○ Used primarily during strategic and annual operating planning
● Mid tier detailed and accurate allocation of functional● Mid-tier – detailed and accurate allocation of functional resources to development initiatives (projects)
○ Used primarily during annual operating planning and quarterly Used p a y du g a ua ope at g p a g a d qua te yforecasting by departments and/or functions
● Bottom-up – specific resources to specific tasks per detailed project plan
○ Used primarily for planning and executing projects and/or programs
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
programs
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Types of PlanningBusiness Planning Lifecycle
Strategic PlanningStrategic Planning
Annual Operating PlanningAnnual Operating Planning
g gg g
P j t Pl i Lif l
QuarterlyQuarterlyForecastForecast
QuarterlyQuarterlyForecastForecast
QuarterlyQuarterlyForecastForecast
QuarterlyQuarterlyForecastForecast
Project Planning Lifecycle
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Types of PlanningBusiness Planning Lifecycle
Product Map Review
Model & Validate
Checkpoint
Model
Plan, Review & Approve
Review & Approve
Strategic PlanStrategic Plan
Quarterly ForecastQuarterly Forecast
Annual Operating PlanAnnual Operating Plan
P j t Pl i Lif l
Map
Model
Plan
Map
Model
Plan
Map
Model
Plan
Map
Model
Plan
Project Planning Lifecycle
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Data Sources● Annual operating plan
● Quarterly forecasts
● Detailed plans of currently executing projects
● Scoped project data (estimated)● Scoped project data (estimated)
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Types of PlanningBusiness Planning Lifecycle
Product Map Review
Model & Validate
Checkpoint
Model
Plan, Review & Approve
Review & Approve
P j t Pl i Lif l
Map
Model
Plan
Map
Model
Plan
Map
Model
Plan
Map
Model
Plan
Project Planning Lifecycle
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Focus Area
PD Cost Tech Cost
Business review of:Market Size / ShareBusiness Objective
Investmentfor Scenario Analysis
Competitive StrategyInvestment Level
BusinessGroup
E iPD Cadence
Tech Execution
UV Surface Ablation 3 9 9 9 9 9 1
UV Surface Treatment 2 9 9 3 9 9
Oversized Shaped Mold 4 9 1 9 3 3
Variable Stiffness Extrusion 1 9 3 3 9
New Coating / Tip Coat 1 9 9 3
PVS Hypotube + Sheath extension 2 9 9 1 1 1
NG2 POBA Inner 3 9 3 3 1
Tip ablation/soft tip 4 9 3 3 1
* Microfibrillar 2 1 1 1 1 1 1 1 1 1 1 High strength materials
using interpenetrating networks (E15)
2 1 1 1 1 1 1 1 1 1 1 Inorganic-Organic Hybrid
polymers for coating applications (E16)
11 1 1 1
Misc. Exploratory14
Balloon Withdrawl Resis14
UV Surface Ablation 3 9 9 9 9 9 1
UV Surface Treatment 2 9 9 3 9 9
Oversized Shaped Mold 4 9 1 9 3 3
Variable Stiffness Extrusion 1 9 3 3 9
New Coating / Tip Coat 1 9 9 3
PVS Hypotube + Sheath extension 2 9 9 1 1 1
NG2 POBA Inner 3 9 3 3 1
Tip ablation/soft tip 4 9 3 3 1
* Microfibrillar 2 1 1 1 1 1 1 1 1 1 1 High strength materials
using interpenetrating networks (E15)
2 1 1 1 1 1 1 1 1 1 1 Inorganic-Organic Hybrid
polymers for coating applications (E16)
11 1 1 1
Misc. Exploratory14
Balloon Withdrawl Resis14
Cadence Roadmap
Top-down resource capacity planning
Business Review
2003
Q1 Q2 Q3 Q4
2004
Q1 Q2 Q3 Q4
2006
Q1 Q2 Q3 Q4
2005
Q1 Q2 Q3 Q4
2007
Q1 Q2 Q3 Q4
TDP
PDP
TDP
TDP
PDP2
2003
Q1 Q2 Q3 Q4
2004
Q1 Q2 Q3 Q4
2006
Q1 Q2 Q3 Q4
2005
Q1 Q2 Q3 Q4
2007
Q1 Q2 Q3 Q4
TDP
PDP
TDP
TDP
PDP2
PipelineCreation
capacity planning adds reality to
portfolio planning
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
Review Clinical
TDP
PDP3
Clinical
TDP
PDP3
Creation
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Prerequisites● Must have an approved project priority list (one list)● Model only the meaningful resources
○ Focus Remove resources not relevant to the planning process○ Focus – Remove resources not relevant to the planning process• (Administration, Management, Support, Direct Labor, etc.)
● Must have accurate resource profiles for all proposed projects
● Must know what your resources are currently working on● Must know what resources and skill-sets free up when● Must monitor and manage critical resources closely
○ Identify the organizations most critical resources by name○ Identify the organizations most critical resources by name • Knowing their combined capacity may determine the most the
organization can deliver as a whole
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Example Data SetJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Information Technology IT 10 10 10 10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11 11 11 11 11 11Finance FIN 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Human Resources HR 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8Legal LGL 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Information Technology IT 10 10 10 10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11 11 11 11 11 11Finance FIN 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Human Resources HR 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8Legal LGL 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAdministration ADM 36 36 36 36 36 36 36 36 36 36 37 37 37 37 37 37 37 37 37 37 37 37 37 37Clinical Affairs CA 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14Design Quality Engineering DQE 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Documentation DOC 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 8 8Hardware Engineering HW 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Management MGT 55 55 55 55 55 55 56 56 56 56 56 56 56 56 56 57 57 57 57 57 57 57 57 57
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAdministration ADM 36 36 36 36 36 36 36 36 36 36 37 37 37 37 37 37 37 37 37 37 37 37 37 37Clinical Affairs CA 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14Design Quality Engineering DQE 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Documentation DOC 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 8 8Hardware Engineering HW 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Management MGT 55 55 55 55 55 55 56 56 56 56 56 56 56 56 56 57 57 57 57 57 57 57 57 57gManufacturing Engineering ME 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Manufacturing Engineering Tech ME-T 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Marketing MKT 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Operations OPS 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70Product Development Tech PD-T 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25Product Development PD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
gManufacturing Engineering ME 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Manufacturing Engineering Tech ME-T 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Marketing MKT 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Operations OPS 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70 70Product Development Tech PD-T 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25Product Development PD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Program Management PM 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8Quality Assurance QA 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Regulatory Affairs RA 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Software Engineering SWE 40 40 40 40 40 40 40 40 40 40 40 40 41 41 41 41 41 41 41 41 41 41 41 41Software Engineering Tech SW-T 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20System Engineering SYS 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 3 3 3 4 4 4 5 5 5T h l D l t TD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Program Management PM 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8Quality Assurance QA 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Regulatory Affairs RA 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Software Engineering SWE 40 40 40 40 40 40 40 40 40 40 40 40 41 41 41 41 41 41 41 41 41 41 41 41Software Engineering Tech SW-T 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20System Engineering SYS 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 3 3 3 4 4 4 5 5 5T h l D l t TD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Technology Development TD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20V&V Testing V&V 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40Available Capacity AVL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 455 455 455 455 455 455 457 457 457 458 459 459 460 460 460 462 462 462 463 463 463 464 465 465
Technology Development TD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20V&V Testing V&V 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40Available Capacity AVL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 455 455 455 455 455 455 457 457 457 458 459 459 460 460 460 462 462 462 463 463 463 464 465 465
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Model Only Meaningful Resources● Filter out as much nonessential data as possible
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecClinical Affairs CA 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14Design Quality Engineering DQE 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Documentation DOC 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 8 8Manufacturing Engineering ME 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Manufacturing Engineering Tech ME-T 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Marketing MKT 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecClinical Affairs CA 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14Design Quality Engineering DQE 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Documentation DOC 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 8 8Manufacturing Engineering ME 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Manufacturing Engineering Tech ME-T 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Marketing MKT 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10g 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Product Development Tech PD-T 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25Product Development PD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Program Management PM 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8Regulatory Affairs RA 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10System Engineering SYS 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 3 3 3 4 4 4 5 5 5Technology Development TD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
g 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Product Development Tech PD-T 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25Product Development PD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Program Management PM 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8Regulatory Affairs RA 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10System Engineering SYS 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 3 3 3 4 4 4 5 5 5Technology Development TD 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20Available Capacity AVL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
164 164 164 164 164 164 165 165 165 166 166 166 166 166 166 167 167 167 168 168 168 169 170 170Available Capacity AVL 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
164 164 164 164 164 164 165 165 165 166 166 166 166 166 166 167 167 167 168 168 168 169 170 170
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
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Model Only Meaningful Resources● Focus attention on key development resources
350350
Support
250
300
Support
250
300
Operational Efficiency
200
250
Operational Efficiency
200
250
Product Development
100
150Product Development
100
150
Compliance
Market Development50
Compliance
Market Development50
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
27
Accurate Resource Profiles Consider Categorization:• Software heavy
H d h
18
20
18
20
● Skills-based ROM estimates • Hardware heavy• Balanced
ME-T
DQECARA
MKTDOC
12
14
16
18
ME-T
DQECARA
MKTDOC
12
14
16
18
PD-T
ME
ME T
6
8
10
12
PD-T
ME
ME T
6
8
10
12
PM
PD
0
2
4
Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov DecPM
PD
0
2
4
Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec
DOC 0.3 0.3 0.3 0.5 0.5 0.5 1 1.5 2 0.3 0.3 0.3 0.1 0.1 0.1
M KT 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
RA 0.1 0.1 0.1 0.1 0.1 0.5 0.5 0.5 1 1 1 0.5 0.5 0.5 0.5 0.5 0.5
CA 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1 1 1 0.1 0.1 0.1
DQE 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0.5 0.25 0.1
M E-T 1 1 1 1 1 2 2 2 2 2 1 1 1 0.5 0.5 0.5
M E 1 1 1 2 2 2 3 3 3 3 3 2 2 2 1 1 1
DOC 0.3 0.3 0.3 0.5 0.5 0.5 1 1.5 2 0.3 0.3 0.3 0.1 0.1 0.1
M KT 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
RA 0.1 0.1 0.1 0.1 0.1 0.5 0.5 0.5 1 1 1 0.5 0.5 0.5 0.5 0.5 0.5
CA 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1 1 1 0.1 0.1 0.1
DQE 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0.5 0.25 0.1
M E-T 1 1 1 1 1 2 2 2 2 2 1 1 1 0.5 0.5 0.5
M E 1 1 1 2 2 2 3 3 3 3 3 2 2 2 1 1 1
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
PD-T 1 2 2 2 2 2 2 3 3 3 1 1 1 0.5 0.5 0.5
PD 1 2 3 3 3 3 3 4 4 4 4 1 1 1 0.5 0.3 0.1
PM 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
PD-T 1 2 2 2 2 2 2 3 3 3 1 1 1 0.5 0.5 0.5
PD 1 2 3 3 3 3 3 4 4 4 4 1 1 1 0.5 0.3 0.1
PM 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
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Resources Are Currently Working On What?● Do not assume that the annual or quarterly financial
planning data accurately represents what people are really doingreally doing
Plan ActualOver Allocation
Zero MarginActual HC being held
considerably longer than
NBI re-planned to realistically fit within resource ceiling
Project 7
Plan
125
150
175
Actual
125
150
175
Next Big initiative
Next Big Initiative
Current Initiative Current Initiative
N G i
Zero Margin considerably longer than plan requiring adjustments
to the portfolio
50
75
100
125
50
75
100
125
ManagementSpecials
Management Administration
Administration
CompletingCompleting
TDP #2TDP #1
TDP #1 TDP #2
Next Generation
Next Generation
GeneralGeneral
0
25
50
Q3 Q4 Q1 Q2 Q3 Q40
25
50
Q3 Q4 Q1 Q2 Q3 Q4
ManagementSpecialsSpecials
OperationsOperations
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
Operations Special Pjs Administration ManagementGeneral TDP #2 TDP #1 Next GenerationCompleting Current Initiative Next Big initiative
Operations Special Pjs Administration ManagementGeneral TDP #2 TDP #1 Next GenerationCompleting Current Initiative Next Big Intiative
29
YTD Actual, Current and Projected Allocations
160
180
160
180 Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
80
100
80
100
Project 5
Project 4Project 2
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Technology Development
Project 7
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
30
Available CapacityAssumes margin is built
160
180
160
180
Organizational CapacityOrganizational Capacity
Today
Assumes margin is built into each project plan
Available Capacity
120
140Available Capacity
120
140Project 3
Project 1
80
100
80
100
Project 5
Project 4Project 2
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Technology Development
Project 7
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
31
Available Resources By Skill-Set
160
180
160
180 Today
Organizational CapacityOrganizational Capacity
120
140SYSRAPM120
140SYSRAPM
80
100PDPD-TMKTME-TME
80
100PDPD-TMKTME-TME
40
60
MEDOCDQECA
40
60
MEDOCDQECA
0
20
0
20
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
Jan
Feb Mar AprMay Ju
n Jul
Aug Sep Oct NovDecJa
nFeb Mar AprMay Ju
n Jul
Aug Sep Oct NovDec
Jan
Feb Mar AprMay Ju
n Jul
Aug Sep Oct NovDecJa
nFeb Mar AprMay Ju
n Jul
Aug Sep Oct NovDec
32
Resource Capacity Planning Methodology● Top-down project-level resource capacity planning seeks
to optimize the pipeline per portfolio plans based on available resource capacity and resource skill setsavailable resource capacity and resource skill sets○ Proposed projects are layered on top of existing projects by
project priority
○ Proposed projects must have an accurate skills-based resource model
L i i d t d ithi i ti l t i t d○ Layering is conducted within organizational constraints and defined margins while balancing and optimizing resource demands with capacity
Kno ing hat skills sets are becoming a ailable is critical• Knowing what skills-sets are becoming available is critical◦ You will not be able to start a SW heavy project with mechanical and
electrical engineering resources coming off a hardware heavy project
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
33
YTD Actual, Current and Projected Allocations
160
180
160
180 Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
80
100
80
100
Project 5
Project 4Project 2
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Technology Development
Project 7
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
34
Project Layering Process
160
180
160
180 Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
80
100
80
100
Project 5
Project 4Project 2
New 1
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Project 7
Technology Development
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
35
Project Layering Process
160
180
160
180 Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
New 2
80
100
80
100
Project 5
Project 4Project 2
New 1
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Project 7
Technology Development
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
36
Project Layering Process
160
180
160
180 Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
New 2
New 3
80
100
80
100
Project 5
Project 4Project 2
New 1
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Project 7
Technology Development
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
37
Project Layering Process
160
180
160
180
New 4
Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
New 2
New 4New 3
80
100
80
100
Project 5
Project 4Project 2
New 1
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Project 7
Technology Development
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
38
Project Layering Process
160
180
160
180
New 4 New 5
Today
Organizational CapacityOrganizational Capacity
120
140
120
140Project 3
Project 1
New 2
New 4 New 5New 3
80
100
80
100
Project 5
Project 4Project 2
New 1
40
60
40
60
Project 7
Project 6
0
20
40
0
20
40
Sustaining Engineering
Project 7
Technology Development
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sustaining Engineering
39
Resource Capacity Planning Methodology● Refine planning by moving from project-level modeling to
skill-level analysis○ Here is where balancing and optimizing is conducted○ Here is where balancing and optimizing is conducted
• This is an iterative process that often times requires adjustment to the portfolio plan to ensure proper resource utilization
○ Ensure that critical skills are neither over or underutilized• Near-term overutilization will require pipeline adjustments to optimize
resource use
• Overutilization further out on the horizon can be managed by planned talent acquisition
• Underutilization can provide opportunity to pull in projects aligned p pp y p p j gwith a specific skill sets
• Underutilization may also indicate a business direction change, requiring planned management
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
40
Skills-Based Over- and Underutilization AnalysisOverutilization on
Program Managers
8
10
12
14
16
18
20
Quality Assurance Associates
8
10
12
14
16
18
20
Development Engineers
20
25
30
35
40
45
50
Program Managers
8
10
12
14
16
18
20
Overutilization on the horizon can be
managed by planned talent
acquisition
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
Marketing Managers
20
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
0
5
10
15
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
CAD Technicians
20
Process Development Engineers
20
0
2
4
6
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
2
4
6
8
10
12
14
16
18
20
2
4
6
8
10
12
14
16
18
20
2
4
6
8
10
12
14
16
18
20
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
Technical Writers
12
14
16
18
20
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
Clinical Research Associates
14
16
18
20
Regulatory Associates
14
16
18
20
Long-term overutilization typically
indicates an organizational need
Overutilization of multiple skills at a similar time may indicate the need to adjust
project loading/timing
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
M ont hs
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
41
Benefits of High-Level Capacity Planning● Adds confidence to strategic plans and product maps
● Establishes a baseline for ongoing impact and what-if l i f ti d t t i l ianalysis, forecasting and strategic planning
● Provides a roadmap for:N b d d t il d f ti l d d t t l l i○ Name-based detailed functional and departmental planning
○ Strategic talent acquisition• Long-range hiring plans by skill-set
○ Regulating demand of specific skill sets while reducing the propensity to manage cyclical resource demands with lay-offs and/or panic hiring
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
42
Watch Outs● More often than not programs are constrained by the
availability of human resources not by funding
● Organizations regularly plan at or beyond the human resource capacity capable of executing the desired projectsprojects
● The Devil is in the details○ The unavailability of a key resource and/or key skill pools can derail an y y y
entire program even if it appears to be fully funded and staffed○ Limited availability of extremely senior technical talent spreads and
defocuses to the point of handicapping multiple projects ○ Special projects deemed high-priority by a functional area can pull away
key resources○ Preventative and corrective action projects often require the original
design team to conduct the investigation and corrective action
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
design team to conduct the investigation and corrective action
43
Summary● Senior Management Support● Crisp Decision Making● Review and Adjust Portfolio on a Defined Basis● Review and Adjust Portfolio on a Defined Basis● Align processes and partner with Finance, Product
Planning and Program Managementg g g● One project list – One project priority list● Focus on the few
C t i i t i f l b k t○ Categorize into meaningful buckets○ Don’t be afraid to cancel programs
● Know where your people are currently workingy p p y g● Know what skill sets become available and when● Conduct accurate skills-base ROM estimates for
d j t
Susan Trahan Director of Product Development NeoMetrics, Inc. and Gary Wereley Director, Product Development Processes St. Jude Medical, PMI-MN May 12, 2009
proposed projects● The devil is in the details44