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Taking
Full Advantage of Product Development
Brand
new product, same old problems.
How many times do we see the same problem repeated again and again?
by Dave Biggs
The
difference between the companies that grow and take advantage of marketplace
opportunities and those that seem to struggle just to manage yesterday's
problems is "corporate learning." The best way to define "corporate learning"
is to contrast it with individual learning. When an individual touches
a hot stove, the lesson is learned very quickly. Suppose that person belongs
to a 100-person organization, but learning is on an individual basis only.
The other 99 people have to go through the painful and time-consuming process
of each touching the stove to learn the lesson.
When
the tools and methodologies are in place and all 100 people learn the lesson
when just one person touches the hot stove; "corporate learning" is said
to be in place. Mother Nature wired us to be individual learners, but did
little to provide us with a natural corporate learning ability. So it's
understandable when companies repeat the same mistake time and time again
while many people go through an individual learning process. Understandable,
yes -- acceptable, no.
There
have been improvements. Concurrent engineering and product development
teams have at least given Manufacturing a voice in the product development
process. But lessons learned in manufacturing, and other departments for
that matter, still get left out of the new product development process.
But
there is good news! There are tools and techniques that help product development
teams access knowledge that resides with non-team members. Looked at from
a second perspective, people in Manufacturing can use these same tools
to participate in the development of new products without having to be
full-time team members.
The
Right Tools
Business
success is a two-step process. First, identify the highest priority customer
needs. Second, be the best at fulfilling the needs. Pretty basic, isn't
it? But without the right tools, it isn't so easy. Being the best at fulfilling
the needs means continuously learning and applying the knowledge to make
improvements.
In
new product development processes like MAP (Market Aimed Products), several
tools and techniques make the development of new products a company-wide
effort. Past lessons in marketplace needs, product technology and business
processes must all be considered to optimize new product decisions. But
even companies that have progressed to multifunctional product development
teams have discovered that everyone with important knowledge can't be a
full-time team member. People from the shop floor, assembly people, key
suppliers, certain customers, field sales people, along with many others,
have knowledge that is essential to the success of new products. So the
team approach must be augmented with methods to involve non-team members
and even people from outside the company.
Enhancement
Lists
An
example of these tools is the Enhancement List, a chronological record
of comments from all sources (manufacturing, sales, marketing, customers,
engineering, finance, management, and others). The list acts as a corporate
learning tool to collect people's thoughts on how existing products and
business processes can be improved. A hypothetical list demonstrates this
idea ...
Sample
Enhancement List
- June 94 -
Make the hand-carried unit lighter. Terry S., Ajax Corp.
- June 94 -
Provide a DC power supply. Kerry T., Western Sales Region
- June 94 -
Get hazardous area approvals. Kerry T., Western Sales Region
- July 94 -
Increase the memory. Tom S., Engineering
- July 94 -
Increase the battery life. Kim W., WXZY Company
- August 94
- Provide the unit in different colors. Tommy D., Marketing
- August 94
- Have the components laid all in one direction for more efficient assembly.
Derek Y., Manufacturing
- August 94
- Provide voice input instead of keypad input. Tommy D., Marketing
- August 94
- Create a wireless data connection to download data. Joan D., HAL, Inc.
- September
94 - There are too many options and it is difficult to manage order entry.
Besides, this number of options is viewed negatively by many customers.
Sales Person A
- September
94 - There are too many transcription errors occurring in the order entry
process. Customer Service person
Easy
to Participate
Enhancement
list comments can be short and don't have to contain a lot of detail. If
people are allowed to jot down only a sentence or two instead of writing
paragraphs, the likelihood that comments will be submitted is increased.
In place of long explanations, the comments are documented with the name
of the provider and the date, so development teams know who to contact
for more details.
There
is another reason to make it easy to participate. An important thought
may be lost if there is too much delay between the revelation and the documentation.
Who hasn't had a great idea, but by the time they got around to writing
it down, it had slipped away?
A
Designated "Keeper of the List"
A
training objective with Enhancement Lists is to tell people where to send
the comments. A "keeper of the list" is designated so everyone knows where
to send comments or where to go to review existing comments. The designees
may be product managers, product introduction engineers, or marketing people.
Agree
to Review Everyone's Input
To
encourage participation, everyone must be assured that his or her comments
will be kept and reviewed during new product planning. So all comments
are put on the list. A handshake is established between the people providing
information for the list and the people using the list. On one hand, everyone
knows that their comments are kept and reviewed, on the other hand, there
are no guarantees to incorporate all the suggestions.
Doesn't
Rely on Human Memory
As
a corporate learning tool, Enhancement Lists insure that past lessons are
remembered. Corporate learning is different than individual learning. Since
the Enhancement List does not rely on human memory, gone should be the
days of sitting around the product planning table trying to remember who
said what and who wanted what. Even as people move to other responsibilities,
the essence of the lessons learned are still available to product development
teams.
Used
to Provide Feedback
Enhancement
Lists need to be used in two-way communication. In one direction, people
are making comments to some future product development team via the list.
The team then reviews all Enhancement Lists for any information relative
to their project. The results of the reviews are used to provide feedback
to non-team members. It is as important to communicate issues the team
thinks will not provide value as it is to communicate those issues that
will provide value. Using two of the example Enhancement List statements
demonstrates this point.
- July 94 -
Increase the battery life. Kim W., WXZY Company Team judgment: This would
definitely make the instrument more useful to the customer.
- Aug 94 -
Have the components laid all in one direction for more efficient assembly.
Derek Y., Manufacturing
Team judgment: This wouldn't be a worthwhile thing to do.
The
second statement alerts Manufacturing to the fact that the team is deciding
not to incorporate the component layout suggestion. If manufacturing has
strong feelings, the issue can be pursued further. In the interest of soliciting
participation, any provocative issues should be highlighted.
Sometimes
people avoid pursuit of provocative issues because of the conflict that
occurs. But anytime there is a difference of opinion, you are going to
have conflict. The choices are -- you can have the conflict early in product
planning activities, or you can have conflict late in the project after
the product is designed. The Enhancement List is used to get differences
of opinion on the table and resolved as early as possible.
Easy
to Implement
The
power of the Enhancement List tool is obvious. The concept is simple and
straightforward. The familiarization training for a person can be done
in an hour. It doesn't require a large investment in software or capital
equipment. Email makes it very user-friendly, but even without Email, short
memos or phone calls get the job done. The largest cost is familiarization
training and even with purchased training materials, this cost is small.
Low
cost, big returns. Makes you wonder why everyone doesn't keep enhancement
lists!
Other
Tools
Several
tools and methods can be used during the Definition Phase to involve non-team
members in the definition of new products. The definition flow diagram
shows the flow of how these tools might be used.
- Market Position
Statement
- Opinion Gathering
- Enhancement
List Review
- 2nd Opinion
Gathering
- Failure Analysis
Records Review
- 7 Ways Session
- Design Guidelines
- Create Plans
The
use of multifunctional teams has made product development more of a company-wide
endeavor. But all the people who have pertinent knowledge can't be on the
team. Tools like Enhancement Lists must be used to augment the team concept
and take advantage of all the knowledge in areas like Manufacturing. It's
a Win/Win!
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