better, faster, cheaper npd peter hoyland

Better, Faster, Cheaper NPD

Peter Hoyland

www.bubblegroup.com

The manufacturing world has doubled it’s productivity in the last 20 years

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Bureau of Labor Statistics

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Will a better process deliver better products?

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Will our NPD portfolio deliver our growth targets?

Are we looking after all of our key markets?

Are we actioning our strategic decisions?

The hard way to find out…

We need a system that answers these questions with zero effort

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What can be done to make NPD Quicker?

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The Queue The Work The Rework

Queuing is a question of capacity

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Wai

ting

time

/ Av

erag

e Pr

oces

s Lea

dtim

e

Percentage of Capacity Used

20% 40% 60% 80% 100%0

5

10

15

20

2x

5x

Single

Arriva

ls

Project Delays due to Queuing

We need a sensible way to calculate loading

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We need a sensible way to calculate loading

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The law of large numbers

The law of large numbers

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20% 40% 60% 80% 100%

+60% uncertainty from each project

+ 8% uncertainty from 100 projects

So rough cut planning at a project level is more than adequate for overall capacity planning

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Each dot represents the average headcount required by 100 projectsWhere each project requires somewhere between 2 and 8 people

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Business Case

Marketing

Supply Chain

Sales

Technical Design

Business Case

Marketing

Supply Chain

Sales

Technical Design

1 2 3 4 5

Increased Risk – Leads to reworkNPD Equivalent of WasteTime and Money

Lack of co-ordination generates re-work

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And a system that supports project managers to synchronise resources … effortlessly

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Return on Investment from R&D

AverageConsumer Goods and Food

Telecommunications, IT, MediaLogistics & Services

Public and Professional ServicesFinancial Institutions

Electrical Eng. & ElectronicsChemicals & Resources

Engineering & ManufacturingPharmaceuticals

Construction & EquipmentAerospace

Utilities

Share of total sales generated by new products / Share of total sales spent on R&DSource: Arthur D. Little Innovation Excellence Study 2005

?% hours spent on cancelled projects

?Delays due to pilot plant availability

?Delays due to Marketing not signing off results

?No of Patent applications per quarter

?% of times Gates are late..

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We need easy but effective Continuous Improvement

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Thank YouSee the Innovator System on www.bubblegroup.com