1、2019/1/302AccentureProduct Lifecycle Management(PLM)PracticePractice PersonnelBusiness BenefitExperiencePLM Practice formed in 1989Part of$2.5B+Supply Chain Practice(FY04)World-wide footprintService line focused on cross industry delivery Medical&Consumer Products Industrial Products Aerospace&Defen
2、se Communications Electronics&High Tech AutomotiveAccenture PLM Business Implementation MethodologyPLM Feature/Function ChecklistRepository of Industry templates and best practice process definitionsPLM diagnostic and ROI calculator toolsWorldwide Network of Solution Centers(providing low cost devel
3、opment and run services)Over 120 successful PLM implementations and Product Development Transformations over the last 15 yearsKey alliances with top tier PLM vendorsBusiness results and referencesImplementation experience with most major PLM vendors Experience from implementations integrated into to
4、ols,methodology,and accelerators Enterprise view to benefits realization and implementationAssets3Metrics Are An Essential Part of a Healthy Product Development Program4Business objectives power metrics metrics power business objectivesCreating a Performance Management ArchitectureManaging Ongoing S
5、trategic Performance1.Business StrategyUse the business strategy as the starting point2.Business ObjectivesDevelop key business objectives that will help you to attain your strategy3.Measures&MetricsDevelop specific indicators to track progress4.ImplementGather measures,create the scorecards and use
6、 it to make decisions.Incorporate all involved parties in the organization in the processUse strategy to identify the objectivesUse objectives to identify the measuresUse measures to build the scorecard or other reporting architectureMeasures should be well grounded in the organization.Let key stake
7、holders be part of defining KPIsSet performance targets and take corrective actions if they are not metUse progress against objectives to confirm strategy5What about metrics in the context of Product Development?The mantra for Six Sigma practitioners,You can only manage what you can measure,applies
8、with increasing criticality to New Product Development.Metrics are necessary to understand the current and historical level of product performance,to predict and measure trends and to set goals and reward achievement.Metrics management is A mechanism to facilitate proper decision makingA tool to hig
9、hlight situations and issuesOn the rise in Product Development,according to a 2004 survey performed by Goldense Group,Inc.(GGI)of 202 companies from a broad range of industriesThe survey indicates that the number of metrics used by the participants has more than doubled since 1998,demonstrating that
10、 more companies are trying more metrics.At the same time,the same 5 metrics continue to be used the most for Research&DevelopmentTop Five R&D Metrics in Use Today1.R&D spending as a percent of sales2.Total patents filed/pending/awarded3.Total R&D head count4.Number of products/projects in active dev
11、elopment5.First year sales of new productsSOURCE:Goldense Group,Inc.2004 Survey6Types of Metrics Product Focused Enterprise Metricslong term metrics that measure the effectiveness of the business in developing new products Project Metricsmedium-term metrics that measure effectiveness in executing th
12、e development project Product Metricsmedium-term metrics that measure effectiveness in meeting technical product objectives Process Metricsshort-term metrics that measure the effectiveness of the NPD process*Rephrased from http:/www.npd- rights reservedStaff Hours vs.PlanTurnover RateErrors per 1000
13、 lines of code(KSLOC)Number of out-of-phase product changesNumber of requirements changesBalanced Team scorecardProject cost performanceSchedule performanceMean Time Between FailuresProduct ComplianceWeightUnit Production CostsBreakeven Time%revenue from New Products(n years)Contract win%7Types of M
14、etrics Enterprise FocusedFINANCIALShareholder valueSV=Revenue Cost InvestmentReturn on Capital EmployedRevenue growth from new products-OrganicProfit growth form new products OrganicOPERATIONALNumber of projectsNumber of personnelCycle timeCost of developmentCost of sustainingCost of recall/warranty
15、STRATEGICBrand ValueNetwork ImpactRight the first timeTime-to-marketR&D EfficiencyMarket ShareEmployee Retention#of patents,articles,etc.8Key Metrics Align Product Performance with Corporate StrategyPlanningPredictiveProactiveReactiveProduct MaturityLowHighStrategic AlignmentHighLowGOAL:Be LESS reac
16、tive,Be MORE predictive/plannedThe most commonly used metrics are those that align closely to product maturity;however,these are typically least in line with Product Strategy*Metric types re-contextualized from GGI,all rights reserved9So,What Are They?Standard Product Development Metrics Product Bre
17、ak Even Time Product Time-To-Market R&D as a%of Sales Number of New Products Released Total Patents Filed/Pending/Awarded Balanced Scorecard,including but not limited to:Strategic Alignment Competitive Advantage Market Attractiveness Expected Commercial Value Target Product Cost Synergies/Leverage T
18、echnical Feasibility Risk vs.ReturnCommon Characteristics of Metrics:Focused on Product LaunchProduct&Environment Complexity Ignored10Sample Product Development Metric Breakeven TimeBreakeven time measures the time to recover the investment in developing a new product from profits generated from the
19、 sale of the new product.This combines a number of factors:Initial Development Investment(non-recurring development cost)Development Schedule(time-to-market)Product Capability/Satisfaction/Quality Product Manufacturability/Design to CostBreakeven time requires a project costing system to accumulate
20、the development costs(including labor)and a product revenue and cost accounting system to accumulate profits by product.*From http:/www.npd- rights reservedNET CASH FLOWInitial RevenueBreakeven TimeInitial DevelopmentInvestment-+TIME11Sample Product Development Metric Balanced ScorecardExample of Ba
21、lanced Team ScorecardCooper,R.G.Winning At New Products:Accelerating the Process from Idea to Launch Reading,Mass.:Perseus Publishing,2003 Projects ranked by predetermined criteria(e.g.ECV,Project Attractiveness(avg of other scores as a%of 100),etc.)Projects incorporated until the resource constrain
22、t is reached(here final two are on HOLD)ProjectLeaderStrat FitProd AdvtgMarket AttractCore CompTech FeasibRewardProject Attract ScorePeople FTECum FTEStatusEpsilonPeters9910109993.32020ActiveGammaCooper1010777780.02040ActiveAlphaSmith87788975.01555ActiveDeltaScott77998574.01267ActiveBetaJones7766866
23、6.72087HOLDOmicronBaily86687566.720107HOLD(Resource Limit:70 FTE)12So,What Are They?Non-Standard Product Development Metrics Engineering Time and/or Dollars as a%of New Product Launch Cost of Maintaining Product vs.Number of Customers Using Product Product Maintenance Time vs.Product Revenue Afterma
24、rket Sales Generated as a%of Product CostCommon Characteristics of Metrics:Product&Environment Complexity Ignored13Product Team Program LevelExecutiveProduct Team and FunctionalMiddle LevelsProduct Team and FunctionalFront LineProduct Team and Functional“Top 5”“Top 5”“Top 5”“Top 5”Increasing number
25、of“Top 5s”for each function and organizationIncreasing frequency of reporting and reviewKeylower level metrics(e.g.BU)are summed for each reporting level(e.g.Production)Metricsare summed by periodto providelarger pictureDaily WeeklyMonthlyQuarterly Reviews become less formal at lower levelsMany more
26、 metrics are used only atmiddle and lowerlevelsMetrics Management Should Address Organization,Reviewing Frequency and Number of Metrics14Metrics Solve Business ProblemsA successful metrics program addresses real business problems.When successful,it moves the needle on items that matter,such as reven
27、ue,costs,capital use,people skills,productivity growth.And it is not about technology15Qualities of Effective Metrics ProgramsSustainableAdaptableRelevantVisibleLeveragedMetrics Are Most Effective When They Are:Relevancy implies metrics ultimately support strategic objectives AND provide information
28、 in a way which supports themVisibility means all stakeholders have easy,ad hoc access to organizational metricsIts easier to look at your speedometer than to actually do the math(its also safer).Thats leverage!Sustainable implies:Collection and reporting tasks are distributed,minimizing the impact
29、on any one individual Metrics collection is increasingly automated over timeAdaptable means accommodating all metrics-old,new,corporate metrics AND line metrics Simple Kept to a minimum Based on business strategy Practical(avoid significant extra effort)16Change Management and Buy-InBehavior is chan
30、ged by instilling an understanding of the goals for the company(etc.)and using the metrics to weigh how well we meet those goalsKey Barriers Urgency and Focus “Dont mess with the chefs”Lack of Consensus around what to measure,how often,etc.Concern over what to do with the data(Are we creating jobs t
31、hat we cant support?)Key Indicators Too Much Information Weak Communication Difficulty defining performance goals Improvement initiatives with unclear results Uninformed Decision-Making PD not measured in meaningful waysChange management and buy-in are critical to the success of a metrics program an
32、d to the usage of product development metrics for making business decisions.There are many factors that can indicate and generate change management issues on metrics programs.Change Management Is Critical to Metrics Management17Questions That Shape a Successful Metrics Program Are we measuring the r
33、ight thing?Are the metrics burdensome,disconnected from“real”work or seen as hampering the creative process?Are there too many metrics?Are the metrics acted upon and monitored regularly?Lesson learned from industry leaders is to locate those critical metrics that1)get the attention of people that ne
34、ed to be aware 2)are connected to the“doers”in the companyGet buy-in and involvement by those most experienced(they can always tell when something is going wrong or right)knowledge exchange,global visibility,etcMetrics without action have no“teeth”and are merely overhead.Successful systems have cons
35、istent,local governance systems that never ignore any metric or its message(which implies there can be no excess metrics)Use the experience and knowledge of the organization to set metrics:this virtually guarantees buy-in to the validity and importance of the measures,which will help ensure the metr
36、ics are proper for your company18Product Development Metrics In Use19Companies that applied integrated product data,portfolio&program management,change management,and analytics across the product lifecycle reported significant advantages over those not using automation.Area of Financial ImpactMeasur
37、ement of ImprovementReturn in product costs17%Reduction in change control cycle times75%Reduction in design cycles25%-35%Reduction in time-to-volume cycles10%-15%Reduce duplicates and introduction of new components30%-40%Reduce search time/improve product development15%-20%The Best The Rest#of Firms
38、96(24%)303(76%)%Successes75.5%53.8%Sales from NPs47.6%21.4%Profits from NPs49.1%21.2%#Ideas for One Success4.09.2Source:Aberdeen GroupSource:PDMA OrganizationTrends in Product Development Metrics20Product Development Metrics are fairly immature Product Development Metrics have become more complete i
39、n the last 20 yearsProduct Development Metrics will continue to mature over the next 10 years Continued advances in technology and focus on R&D investment require enterprises to look at Product Development as an area to gain efficienciesProduct Development Metrics are yet to take product complexity
40、into accountProduct Development Metrics will begin to assess the cost/time of product maintenance and measurements of when to end-of-life a product What is the future of Product Development Metrics?21Product Development Metrics Take-AwaysGoal setting precedes metrics selection&Strategy guides use of metrics Measure that which causes the goal to be achieved Without formal(local)governance,metrics are not worthwhile222324