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In this era of "right-sizing", integrated product development
(IPD) represents a critical opportunity to re-organize product development
on a sounder basis. Development and product costs can be reduced, product
quality and performance improved, and time-to-market reduced with an aggressive,
purposeful approach to IPD. This requires a formal, structured approach
to implementing IPD. This must be based on a comprehensive and complete
understanding of what IPD involves.
If executive management of a company has a limited view of what IPD represents,
the implementation of IPD will be limited and incomplete, or the implementation
will be viewed as a minor activity that does not require a formal implementation
effort with active executive management involvement. Without an aggressive,
structured program, the rate of improvement in developing new products will
be much slower.
MANAGEMENT LEADERSHIP
With any type of improvement program including IPD, executive management
commitment is frequently cited as key to the success of that initiative.
Commitment is more than a verbal statement or providing the necessary resources
to make it happen. Effective implementation of IPD requires active executive
management involvement and direction.
Leadership is required to communicate a vision of how products need to be
developed and to define the desired development process objectives under
this new paradigm. Is the focus on time-to market, on product performance
and technology, or on product or life cycle costs? Each of these objectives
will result in a different orientation for the development process. Specific
goals should be established and communicated - "we will cut our development
cycle by 40% over the next three years". Priorities need to be established
- "we will focus on establishing an effective team-based approach to
development before we invest in upgrading our CAD systems". Resources
and funding mechanisms for this effort need to be committed including time
for personnel working on the IPD initiative, training, process improvement,
and tools implementation. Will these efforts be funded by a separate budget,
by departmental budgets or by development program budgets? Explicit guidance
is required on objectives, goals, priorities, resources and funding mechanisms.
Once a plan of action is developed by the key people in the organization,
it must be reviewed, approved and actively supported by executive management.
A positive culture must created. This culture must be oriented toward continuous
improvement and team-oriented approaches. Cultural changes need to be supported
with compatible policies related to performance measurement, compensation,
career advancement and training. These cultural changes may require five
to ten years to achieve in larger organizations. Treating IPD as this month's
fad with three of six months of executive management attention will not
see this type of initiative through to fruition. Motorola, a recent Malcom
Baldrige award winner, is successful with their Six Sigma program because
their CEO, Bob Galvin spoke of this initiative frequently to groups within
Motorola over the years.
One of the first steps to demonstrate commitment is to communicate what
is to be achieved with IPD and why. A written statement of intent should
be published that very clearly describes the objectives of a IPD initiative,
what is to be done, why it is important, and what resources will be devoted
to achieving its goals. This needs to be followed by periodic public statements
evidencing continuing executive management interest in IPD and the progress
that has been made.
Executive management should act as a cheerleader during this implementation
process and exhort personnel to continue with their efforts to improve product
and process design on an on-going basis.
Executive management action is required to overcome impediments and insure
cooperation among the functional disciplines. They must tackle policy issues
related to career paths, empowerment, middle management roles, performance
appraisal, promotions, rewards, and training. Business strategy and business
results should be regularly communicated so that development personnel can
align their development objectives to the "big picture".
To avoid a IPD initiative being viewed as another of a long list of fads
or confused with many initiatives that an organization is undertaking at
a point in time, a framework should be developed to show how IPD relates
to other initiatives and the overall company strategy. However, it is important
not to over commit and undertake too many separate initiatives with a fragmented
approach and inadequate resources. IPD is frequently implemented in conjunction
with a total quality management (TQM) initiative and might be described
as the TQM initiative in the area of product development, rather than be
treated as a separate, unrelated initiative.
This executive management leadership can be channeled through an executive
sponsor or a IPD executive steering committee/management team. The executive
sponsor or steering committee establishes overall IPD objectives, identifies
resources to support IPD, communicates the need for IPD, provides leadership,
establishes and revises policies, and overcomes impediments. The executive
sponsor approach can be effective in a smaller organization or business
unit or where the sponsor is the CEO, President or General Manager. This
approach provides a clear focus and direction to the initiative. As the
organization grows in size, a steering committee is the recommended mechanism
to channel and focus management's involvement. The steering committee will
take longer to organize and to develop a common vision, but the broader
functional involvement on this committee will give it greater clout and
provide a better mechanism for addressing cross-functional issues.
Unsuccessful or disappointing efforts to implement IPD can be traced to
one or more of the following pitfalls:
- Limited IPD perspective - management believes they have achieved it
- Not a high priority; treated as a fad
- Lack of understanding of how to manage change, involve employees, or
change the culture
- Teams formed, but no guidance given on roles, responsibilities, reporting
relationships, etc.
- No management leadership or follow-up and the imperative is lost
- Lack of time or investment in training, process improvement, systems,
or guidelines
- No formal structured program with a plan, accepted responsibilities,
or coordination
- Policies & reward systems not re-aligned to
support IPD
Once executive management understands these pitfalls and lessons learned
from other organizations, they can develop strategies and tactics to counter
them within their own organization and improve the success of their IPD
initiative.
The IPD implementation effort should be planned and lead from the top down,
but implemented from the bottom up to develop ownership. Employee involvement
must be based on communicating the proper goals and providing necessary
training in the concepts and skills. When executive management makes continuous
improvement a high priority and is actively involved in leading this effort,
improved product development practices can be readily implemented and results
rapidly achieved.
ABOUT THE AUTHOR
Kenneth A. Crow is President of DRM Associates,
a management consulting and education firm focusing on integrated product
development practices. He is a distinguished speaker and recognized expert
in the field of integrated product development. He has over twenty years
of experience consulting with major companies internationally in aerospace,
capital equipment, defense, high technology, medical equipment, and transportation
industries. He has provided guidance to executive management in formulating
a integrated product development program and reengineering the development
process as well as assisted product development teams applying IPD to specific
development projects.
He has written papers, contributed to books, and given many presentations
and seminars for professional associations, conferences, and manufacturing
clients on integrated product development, design for manufacturability,
design to cost, product development teams, QFD, and team building. Among
many professional affiliations, he is past President and currently on the
Board of the Society of Concurrent Engineeringand is a member of the Product
Development Management Association and the Engineering Management Society.
For further information, contact the author at DRM Associates, 2613 Via
Olivera, Palos Verdes, CA 90274, telephone (310) 377-5569, fax (310) 377-1315,
or email at kcrow@aol.com.
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