Manufacturing Handbook

Manufacturing Handbook
University of Michigan OM
Professor R. Eugene Goodson

SUBJECT: Process Development and Project Management for New Product Development

ALPHANUMERIC IDENTIFIER:

BRIEF DESCRIPTION: With the increase in competition in every single market place, Project Management has become a key success factor for companies that want to get to market first in order to achieve a competitive position. Building successful product initiatives requires integrating many people, processes and functions, both technical and commercial. The very first step after the business need has been identified is to organize the project, and within this step the most important activities are: recruiting the project team, determining the project objectives, engaging in team building activities, building ownership and establishing lines of communication. The product supply organization integrates three models, each essential to a different user. This document summarizes a guide for integration of these models, presenting a road map of key steps and checkpoints (key deliverable products that serve as indicators for completion of a phase), as well as a brief description of the roles of the different project team members.

KEY WORDS: Process Development, Product Launch, Project Management, Project Team, Team Tasks,

OVERVIEW:

The models, phases, checkpoints, and their users are:

Product Launch Model ® Road map for the Product Category or Brand

Objectives: Improve the success rate of initiatives and get the right products to market.

Task	Reason
Idea Generation	Preliminary Evaluation
Concept Development	Project Establishment
Business Opportunity Assessment	Basis for Interest
Development for Market	Expansion Plans, Market Readiness, Recommendation
Market Evaluation	Expansion Proposal
Expansion	Post Expansion Evaluation

Methodology of Process Development ® R&D and Engineering

Objectives: Develop manufacturing processes for new products, develop reliable product supply systems, and deliver products on time and cost effectively.

Task	Methodology
Possible Potential Technologies	Customer Screening
Evaluation of Promising Technologies	Commercially Viable Prototype Consumer Value Model
Product / Process Learnings	Option Analysis & Pilot Test Transformation Flow Sheets Bench Scale Prototype Raw Materials Specifications
Product / Process Definition	Preliminary Process Flowsheets Market Test Technology Line Commissioned Risk Assessment Complete Process Reliability & Start-Up Analysis
Scale Up Verification	Final Process Flowsheets Plant Training Quality, Scale-Up & Cost Criteria Met
Production Capability Verification	Verification Criteria Met

Project Management Methodology (4 Phases) ® Manufacturing

First Cycle ® Market Test / Second Cycle ® Expansion

Objectives: Provide facilities to define process capability, produce product for consumer testing, provide data on feasibility and profit potential before expansion rollout.

Task	Methodology
Option Development	Initial Market Test Charter Funding Request Process Capability requirements Go / No Go Decision to proceed
Definition	Risk assessment complete Capital Concurrence/ Funding Request Risk Analysis / Risk Management Plan Go / No Go Decision to proceed
Execution	Market Test Start-Up Criteria Met Market Test Post Start-Up Plan
Verification	Process Capability Verified Project Closeout

These separated but related models should be integrated to maximize success rate in product initiatives. These three models support each other.

Project Team Task Listings

Project Management - Single point accountability for the project team to deliver the project charter – doing the right things the right way to meet the business need. The focus of these tasks is on managing the project activities to the agreed end point. Throughout the life of the project, project management is charged with developing and updating the overall project schedule, maintaining task agreements and ensuring timely decisions are being made by the right people to meet the project charter.

Engineering - Provide technically correct equipment systems that meet the project charter, standards, and legal requirements.

Specialist Engineering - Provide negotiated engineering support for specified disciplines.

Design Management - Responsible for producing and ensuring correctness of detailed designs. There may be several people providing negotiated support – mechanical, electrical, civil – as required.

Construction Management - Responsible for constructing and building the project safely according to the design and within cost and schedule requirements.

Cost Engineering - Responsible for determining project cost, leading the assessment of risk management, providing input to cost reports and trends, and preparing cost analysis.

Project / Plant Representation - Key representative for the customer / operating personnel to the project team to ensure the changes made by the project will deliver the on-going business need. Serve as the principal liaison between the Plant and project team members from outside the Plant.

Start-Up Management (Technology Transfer and Training) - Responsible for determining skills and knowledge required, developing the training strategy, and implementing a program to produce qualified personnel.

Start-Up Management (Commissioning, Qualification and Verification) - Responsible for preparing the Start-Up strategy and plans and for leading Commissioning, Qualification and Verification.

REFERENCES:

Lewis, James P. How to build and Manage a Winning Project Team. AMACOM, 1993.
Badiru, Adedeji. Management Tools for Engineering.
Project Management User Manual / Training Program. Procter&Gamble Co. 1994-1996.

ACKNOWLEDGEMENT: This is a March 29, 1999 revision by Gene Goodson of an assignment for OM742 contributed by TM.

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