1	Fundamentals of Integrated Product Development Process H. THOTA, Ph.D. Innovation Business Development, Inc., P.O. Box 20147, Saint Simons Island, GA 31522 hthota@innovationbd.com Presented at the AACC Annual Meeting, September 30, 2003, Portland, Oregon
2	What is Integrated Product Development? IPD is a holistic approach to integrate product development into a firm’s overall innovation process, close the input gaps to PD teams and create linkages across multifunctional groups to yield superior results across the lifecycle while satisfying customer needs
3	The Best practice companies outperform the rest
4	"20" 20% to 90% less time to market 30% to 70% less development time 65% to 90% fewer engineering changes 20% to 110% higher white collar productivity 200% to 600% higher quality 20% Source: The National Institute of Standards and technology
5	"R&D is great at generating..." R&D is great at generating ideas but does nothing with them? R&D is an energetic entrepreneurial group but does not produce enough good ideas? R&D is very active, every project is over run, schedule slips, stop and go? R&D workgroup management is weak? N/P rushed to market to find a similar product is introduced by competition? N/P introduced is outlawed by a new regulation? N/P introduced can’t be made cost effectively, constant fire fighting during ramp up? N/P introduced meets the specification but does not meet customer expectations? N/P introduced is well accepted by the trade, praised by customers but no repeat sales?
6	"New to the World Products" New to the World Products 10% New Product Lines 20% Addition to Existing products 20% Improvements/Revisions to Existing Products 26% Re-Positioning 7% Cost Reductions 11% Source: Booze, Allen and Hamilton, 1982
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8	Source: PDMA 1997 Best practices Report
9	IPD System components 1. Clear Innovation strategy backed by a structured idea capture and management process 2. Formal new product process or Stage-Gate™ process to provide a best-practices pathway from concept to launch, 3. Effective platform and portfolio management process across the lifecycle.
10	In this presentation we will describe a People-centric Innovation Process framework to sustain Integrated Product Development System
11	Innovation Strategy Create a management structure to capture the minds and hearts of all employees to sustain innovation culture across all functions and all levels of the organization
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15	PCIP is a two part process ¿ A structured idea management process and a reporting system across all levels and all functions of the organization to innovate within the context of the organization ¿ A clear front end process to capture, evaluate and fund ideas from employees, consumers, customers, competition and the market place; focused to add value to the organization and/or its customers
16	"An Idea is generated" An Idea is generated Co-sponsors are enlisted Local management funds proposal for development Innovation Committee approval PCIP is launched Individual ‘frames” idea so it can be communicated This is the first filter. Individual must enlist at least 2 people to launch PCI Process This insures management involvement. Small amounts for supplies, preliminary studies, books, materials, etc. Committee approves/terminates. If approved, the project enters the formal system and is tracked until conclusion Initial project manager is appointed by the IC and the project moves to the formal process.
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19	PCI is a PHAGED GATEWAY PROCESS
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24	Staffing Teams A simulation exercise to understand, measure, predict and guide the behavior of groups
25	IPD System components √. Clear Innovation strategy backed by a structured idea capture and management process √. Formal new product process or Stage-Gate™ process to provide a best-practices pathway from concept to launch, 3. Effective platform and portfolio management process across the lifecycle.