Storyboard Presentation – Enabling Tools February 20-21, 2007 / St. Pete’s Beach, FL Sean...

Storyboard Presentation – Enabling ToolsFebruary 20-21, 2007 / St. Pete’s Beach, FL

Sean Osborne [email protected] (248)-495-1326

Director, R&D and Advanced Engineering

Cooper Standard Automotive – Global Fluid Systems Division

Managing the Product Development Funnel at CSAMake More and Better Product Decisions for Greater Impact


Cooper Standard AutomotiveSean Osborne

Company Description:Cooper Standard Automotive - Global Fluid Systems

“Driving Value through Innovation”

Innovations are solicited with the “Innovation Quest”

Idea Generation Program. All new product projects are approved by the

executive staff at gate reviews. The Fluid Systems Division has organized to ring

fence new product development resources.

Unique Requirements for Product Innovation:

Managing the product development funnel: At CSA global fluid systems we manage the process to

achieve results. We use a funnel concept to measure and ensure

the health of our process. The funnel concept leads to two basic questions.

1) Are you separating the wheat from the chaff?2) Are your products moving toward launches?

The funnel also underscores one of the most strategic decisions. What projects should be stopped or killed?

The front end of the funnel should be full of ideas.

Sales: $2.3BLocations: 61Employees: 16,000

Cooper-Standard Automotive





Fluid Systems

Sales: $1.1Global market position: #2

Direct, control, and transport fluids and vapors throughout a vehicle

Fluid Systems


Direct, control, and transport fluids and vapors throughout a vehicle

Body and Chassis Systems


Seal the doors, window and other parts of the vehicle

Control and isolate noise and vibration in a vehicle

Body and Chassis Systems


Seal the doors, window and other parts of the vehicle

Control and isolate noise and vibration in a vehicle

350

Ideas

Annually

28 ideas in

idea bank

DevelopStage

2

ValidateStage

2

Launched in Previous year

5

BusinessCase Stage

3

ScopingStage

4

Launched

Projects Killed by stage in Previous Year

136 136

Number of Projects by Stage


Illustration of Your Stage-Gate Process:

The Product Innovation Process - “A Decision Factory”

An “Innovation Quest” Idea Generation Program is used to

solicit innovations from 8000 employees.

Project Reviews are used to improve project execution. Semi-annual portfolio reviews are held to take a holistic

view of new product projects and confirm resource application to projects by priority.

Decisions are made throughout the Stage-Gate process to choose the right projects and do projects right.

Unique Customization of Stage-Gate: Creating impact with an integrated product development process. We get our products right by better understanding the customer’s voice, creating concepts with unrivalled customer value and

meeting our cost and timing targets. This is an additional integrated element, called Design for Six Sigma, used by practitioners. We choose the right projects by first defining and selecting attractive market segments. We decide which projects will have the

most impact and continually ask tough questions at gate reviews to determine whether we should proceed or kill projects. The funnel tool measures whether the Stage Gate and other processes are being effectively used to commercialize products. The funnel concept leads us to make more decisions to keep the process productive. Managing the process flow funnel results in higher throughput and reduced cycle time. Focusing concentrates resources and helps improve the quality of decisions and quality of execution. In other words, we spend

more time and effort on more important projects. We have limited resources and are very careful not to overload our resources with too many projects. A key resultant of focusing on fewer projects is launching more products. With more products launched and less Work-In-

Process, our process cycle time dropped from 7.5 years to about 2 years.


CustomerCustomer

Idea Generation

Program

Decision Gates Guide New ProductDecision Gates Guide New ProductQuantity, Quality and ExecutionQuantity, Quality and Execution

Project Reviews- Scope- Schedule- Budget

Portfolio Reviews- Prioritize- Kill- Allocate resources

Gate0

ScopeGate

1Gate

2Gate

3Gate

4

Business Case ValidateDevelop

Stage-Gate® Process


Lessons Learned:Making more & better decisions creates impact.

• You can’t force success by simply forcing the launch of more new products or demanding shorter development time.

• Don’t get lost in the details about what best practices are. Concentrate leadership efforts on what best practices do.

- Management must make choices and focus. - Make sure your new product development process is leading

to decisions to weed out less successful projects. Celebrate your kills.

• Support your new product teams by making as many high quality strategic decisions as possible.

• Help the new product teams make tactical decisions which will improve project execution.

Implementation Team:

The team involved the following primary members:- New product process leader- Marketing director- R&D director

Critical to the team’s success was/is support from the President.

Participation of the gatekeepers and practitioners is necessary to evolve the processes to fit the culture.

Results: Higher Sales

(8x in 4 yrs) Higher Margins More Launches Faster Launches


0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007

New Product Revenue

($M)

Product Launches 0 2 3 3 3 5 5

Began Developing a New Product Decision Process in January 2002

Quantity of

Decisions

Quality of

Decisions

Quality ofExecution

Impact

Storyboard Presentation – Enabling Tools February 20-21, 2007 / St. Pete’s Beach, FL Sean...

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