New Product Development NPD Project Management Tools Harris Corporation

1
New Product Development (NPD) Project Management
Tools Harris Corporation

• Southwest Ohio
• PMI Chapter Meeting
• April 16, 2003
• Presented by Philip Schmitt

2
Agenda

• Basic overview of New Product Development (NPD)
  process at Harris
• Project Management (PM) tools
• Portfolio Level
• Planning
• Execution
• Next Steps (as time allows)

3
Introduction

• Phil Schmitt Supervisor, Power Supply and Low
  Frequency RF Design
• Joined Harris in November, 1998
• Lead Design Engineer and Project Manager for AM
  radio projects
• Team member of Process Improvement Team (PIT) for
  NPD process
• Achieved PMP Certification in July 2001
• Tom Jones - Sr. Manager, Project Management
• Joined Harris in September, 1999
• Member of team that originally created Harris
  NPD Process
• Team lead of Process Improvement Team (PIT) for
  NPD process
• Facilitated 3 NPD related Sub-teams
• Achieved PMP Certification in November 2002

4
Harris NPD Process

• Patterned after Dr. Robert Coopers Stage
  GateTM Process
• Provides interim decision points throughout the
  life-cycle of a project to review cost and
  schedule status, problems, risks, etc.
• At these decision points (Gates), a review of
  the projects previous Stage is made and a
  decision to continue is reached
• Only after successfully passing the gate with a
  GO, would the funding for the next phase be
  approved.

5
NPD Stages

• Stage 1 Idea Generation Collection
• Gate 1 Business Case
• Stage 2 Business Case Development
• Gate 2 Product Planning
• Stage 3 Product Planning
• Gate 3 Product Development
• Stage 4 Product Development
• Gate 4 Pilot Production Readiness
• Stage 5 Pilot Production
• Gate 5 Production Readiness
• Stage 6 Production Complete

6
Tool Overview

• Designed to facilitate NPD process
• Use multitude of software programs
• MS Project 2000 (and 2002)
• MS Excel 2000
• MS Word 2000
• Minx (Back Office System)
• Sharepoint
• Lightly coupled and requires some manual entry
  and manipulation
• Utilizes limited automation using standard VBA
  (Visual Basic for Applications) macros

7
Stage 1-2 Portfolio Level Analysis

• Traditional product specific organization
• Evolving into a weak matrix organization with
  goal toward strong matrix
• Evolution has led to priority issues

8
Old Organization
9
Weak Matrix Organization
10
What Projects?

• The matrix organization has many benefits
• Alignment of projects across the division and
  ensures the right projects get the highest
  priority
• Ensures right resources are applied to the right
  projects
• Requires a more mature and disciplined
  organization to make work.
• Tools to align various competing projects are
  essential

11
Priority

• Harris uses multiple methods to determine the
  order of priority for potential projects
• ROI
• Payback Period
• Potential Revenue
• Investment
• Market Analysis
• The projects are combined on a single list
  (Excel) with ranking criteria to establish
  marketing and strategic priority

12
Project Priority Reporting Tool
13
Ok, So I know what they want, but what can I work
on?

• Limits in determining what projects can be
  completed
• Budget Constraints
• Fixed Skill Mix
• Strategic Priority (previously shown)
• Project Portfolio Manager
• Combines existing approved project schedules and
  1st order estimates of potential projects
• Use project templates and historical references
  to help create these 1st order estimates
• Schedules loaded into a master schedule for
  leveling
• Data is exported into custom Excel Spreadsheet
  for analysis

14
MS Project High Level Template
15
MS Project Master Project File
16
Portfolio Manager
17
Portfolio Manager
18
Stage 3 - Planning

• Product Line use Portfolio Manager data to help
  determine the next best project and begin
  development of business case
• Approval of Stage 2 Business Case provides
  limited funding for next stage of work.
• Stage 3 - Planning
• Team Development
• Scope Definition
• WBS
• Task Definition, Estimation, Sequencing
• Risk Assessment
• Schedule Creation

19
Planning Tools

• Project Guidelines Document
• Requirements Matrices
• Standard WBS
• Risk Analysis
• MS Project Template
• Project Plan Template
• Gate Matrix

20
RACI (RAM) Matrix

• (RACI) Responsible, Accountable, Consult, Inform
• Defines cross functional department
  responsibility to NPD processes.

21
Guidelines

• A project guide assists project managers in
  developing their project plan
• Provide instruction on how to plan the project

22
Scope Definition

• Product line manager (sponsor) and team work to
  define the scope of the project
• Specification and requirements matrix (excel)
  document the requirements
• At Gate 3, these are placed under revision control

23
WBS

• Based on our Stage-Gate process
• Standardized down to level 3
• Accounting system is aligned to level 3 for
  tracking actual costs

24
MS Project Template

• Allows quicker start of new project plans
• Provides consistent reporting (standard reports)
• Provides standard options, views, and macros
• Allows better alignment of our projects for
  portfolio management

25
MS Project Templates
26
MS Project Defaults

• For each Option window, Harris defaults have been
  selected to improve MS Project performance and
  provide consistency among projects
• Customizations are documented for reference

27
Custom Views
28
Task Definition

• Project planning sessions to flesh out WBS
• Single subject reviews to flesh out the
  activities
• Task estimation sheet used to provide detailed
  task inputs to PM

29
Task Estimation

• Expert Judgment
• 50/50 Rule
• Contingency Reserve
• Weinberg calculator (Excel)
• Risk spread sheet
• Past experience

30
Risk Analysis

• Document known risk items
• Provides relative pain score
• Supports CR estimates and duration estimates

31
Project Plan

• The project plan template includes
• Project Scope
• Major Project Deliverables
• Product Requirements and Performance
  Specifications (Reference to Matrices)
• Planning Assumptions
• WBS (high level)
• Schedule and Budget Summary
• Resources (Core Team RACI)
• Risk Management
• Product Cost Summary

32
Project Plan Example
33
Gate Matrix

• Ensures NPD requirements have been met.
• Simple method for tracking requirements of
  process
• Provides quick visual indication of status

34
Project Execution

• Passing Gate 3 provides the authority to
  implement the plan (and an excuse for a party)
• Tools for managing the execution and control
• Weekly Task Reports
• Project Performance Tracker (Spreadsheet)
• Monthly Management Flash Report
• Monthly Department Budget Estimate Report
• Sharepoint

35
Weekly Task Reports

• Provides simple interface to project data for
  team members
• Task list is individualized for each member
• Uses standard client software (excel)
• Allows data extraction from team member to be
  completed ahead of team meeting to reduce meeting
  times
• Macro developed to automate extraction to excel
• Still need big picture review in team meeting

36
Weekly Task List
37
Project Performance

• EV is recorded on a periodic basis
• Use SPI / CPI as main indicators
• Threshold set at 0.95 to show off schedule and
  a plan for recovery needs to be considered
• At 0.90 a recovery plan should be available and
  ready for management approval to get back on
  track.
• This data is reviewed with team on weekly basis
• Flash Report give upper management a one page
  view of project status (monthly)

38
Performance Tracker
39
Flash Report
40
Monthly Budget Estimate
41
Sharepoint

• Communicate information to core team members as
  well as other project participants
• Central storage of key files and information
• Ease of use and access by team
• Conclusions

42
Next Steps

• Currently the tools we are using are working but
  require a great deal of manual work to make
  effective.
• Data is located in separate systems and is not
  centrally available to all who need the data.
• Historical data is hard to extract to provide
  meaningful help in estimating future projects.
• Timeliness of data has been an issue limiting our
  ability to control and react to changes

43
Next Steps

• A Process Improvement Team (PIT) has reviewed our
  systems and suggested improvements
• Primary focus on Enterprise Project tools
• Reviewed many off the shelf packages
• Winner MS Project 2002 and Server 2002

44
Tool Selection Criteria
45
Why MS Project 2002?

• Attractive capital investment costs
• Installed base of users using Project 2000
• Internal expertise in customization
• Predefined interfaces to Peoplesoft
• Project 2002 and Server 2002 provide a platform
  that can be considered a real project
  management tool (compared with earlier versions).
• Microsoft should continue to provide new features
  and capabilities.
• Viability of some of the smaller players in this
  space

46
Conclusions

• These tools are designed around our processes and
  make our jobs easier
• They provide consistent means of tracking and
  reporting
• They provide a common focus of our development
  efforts allowing us to apply the right resources
  to the right project at the right time
• They dont make up for poor planning, poor
  management, or lack of training

47
Acknowledgements

• The following people contributed to the creation
  of these tools
• Geoff Mendenhall, VP of Advanced Development
  Engineering
• Dave Glidden, Director of TV Transmission Product
  Line
• Tim Dittmer, Sr. Manager- DSP and RF Design
• Tom Jones, PMP, Sr. Manager- Project Management
• Jeff Malec, PMP, Sr. Manager-Transmitter
  Development
• Randy Restle, PMP, Sr. Manager- Digital Design
• Jason Rieg, TV Product Line Manager
• Frank Walker, TWG Project Management

48
Questions?

• If you have any questions after this meeting,
  please contact
• Tom Jones
• Office (513-459-3606)
• E-mail wjones11_at_harris.com
• Phil Schmitt
• Office 513-459-3491
• Email pschmitt_at_harris.com
• Thank you!