Eric rose managing npd project tradeoffs

Managing NPD Project Tradeoffs

Presented by:

Eric P. Rose, NPDP, MBA

© 2014 Copyright Eric P. Rose, NPDP, MBA All Rights Reserved www.ericpaulrose.com

Eric P. Rose, NPDP, MBA• Adjunct Professor, Product Innovation,

Pepperdine & Loyola Marymount Universities

• NPD Consultant, Entrepreneur, Inventor

• BS Industrial Design, MBA, PDMA NPDP

• 30+ Years NPD Experience, 80+ Patents

• 2005 Co-Founded PDMA-LA, now President Emeritus

• Jan 2012 Launched Pinnacle Product Innovation, Inc.


Agenda• NPD Project PentagonTM Framework

• NPD Stakeholders

• Managing NPD Project Tradeoffs


NPD Project PentagonTM Framework

Features

Schedule Product CostNPD ProjectPentagonTM

Capital Equipment Cost

DevelopmentCost


• External • Partners (KOLs, Spokespeople, Reviewers, etc.)• Customers, Shareholders• Retailers, Distributors

• Internal• Exec. Management, Finance• Operations, Quality Assurance• Research & Development• Sales, Marketing, Customer Service, Repair / Service

NPD Stakeholders Guide Tradeoffs


Multivariate: Having a number of independent variables



Features



DevelopmentCost


• Voice of Stakeholder (VoS)

• Prioritize Features by VoS

• Remove Low Valued Features

• Reallocate $’s • To Higher Valued Features and or• Increase Profit Margin

• [Mattel toy not TV promoted]

Features vs. Product Cost


Features vs. Product Cost



Features



DevelopmentCost


• Particular feature driving CapEx?

• Feature’s priority?

• Revise product design, reduce CapEx?

Features vs. Capital Equipment Cost



Features



DevelopmentCost


• Identify feature driving Development Cost

• Feature priority (VoS)?

• Feature revised / eliminated / rolling launch?• Cash flow management

• Existing technology to adapt vs. ground up development?

Features vs. Development Cost



Features



DevelopmentCost


• Feature priorities to develop? (VoS)

• Feature on or near project’s Critical Path?

• Development start before full project approval?

• Feature roll out over time?

Features vs. Schedule



Features



DevelopmentCost


• Plant, Equipment, Tooling = CapEx

• ↑ CapEx = ↑ Output = ↓Product Cost

• Tooling / Mold Cavitation Review

Product Cost vs. CapEx Cost



Features



DevelopmentCost


• Engineers are never finished engineering

• Example – metal vs. molded caster socket(Multivariate; Prod Cost, Dev Cost, CapEx, Schedule)

• Product Requirements Document

Product Cost vs. Development Cost



Features



DevelopmentCost


• Deadline to meet? At what cost?

• Trade shows, investor meetings

• Again – metals vs. injection molded caster socket example (multivariate)

• Available stock part vs. cheaper custom

Schedule vs. Product Cost



Features



DevelopmentCost


• Timing Critical? Add Resources?

• Mattel – “Christmas Never Moves”Pooh Walker vs. Barbie

• Pay premiums to expedite services(design, prototypes, market research, etc.)

Schedule vs. Development Cost


Features



DevelopmentCost

Manage NPD Tradeoffs – With Eyes Wide Open


Thank [email protected]

www.ericpaulrose.com

Twitter: @ericpaulrose

Managing NPD Project Tradeoffs


Eric rose managing npd project tradeoffs

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