PDI - NEW PRODUCT DEVELOPMENT GLOSSARY
Activities
Actions that have been identified through Dr. Cooper and Dr. Edgett’s
research as being highly correlated with product innovation success,
when these actions are performed with a high level of quality. Activities
are recommended to be undertaken for every product innovation project
and omitting them increases the likelihood of market failure for
the new product.
Business Case
A business case results from the upfront work and business analysis
that occurs in Stages 1 and 2. It is updated at each subsequent
stage to reflect the most current information. The Business Case
defines:
- The new product opportunity from many perspectives (customer
needs, market opportunities, technical feasibility and risks/rewards);
- The project (the scope of activities necessary to move from
idea to launch); and
- The justification for pursuing the project opportunity (includes
considerations such as strategic fit and reward for risk).
Deliverables
Key information requirements that are necessary to enable the Gatekeepers
(or decision-makers) to make good decisions. The team leader and
team members are responsible for bringing the required deliverables
to the gate. The type, quantity, and level of detail of the information
will vary from gate to gate. Deliverables are created from the results
of the activities performed during the stage.
Gate
The decision point that precedes each stage. Gates serve as quality
control checkpoints, where go/kill and prioritization decisions
are made and the path forward is decided.
Gatekeepers
The Gatekeepers are the cross-functional team of executives who
make go/kill decisions at gates. The Gatekeepers are also responsible
for ensuring that requested resources are approved and allocated
to projects.
Gate Meetings
The team converges and all the information is brought together for
the Gatekeepers to make timely and high quality decisions. Four
key decisions are made at gate meetings:
- The project meets the readiness check requirements;
- Quality of the deliverables;
- Business rationale and a go (proceed), kill (stop), hold or
recycle (revisit some of the activities) decision for the project;
and
- Project plan and resource approvals for the next stage of work.
Integrated Activities
Activities or actions that require the input of project team members
representing all functional areas. These activities are facilitated
by the Project Leader and are iterative in nature. All members of
the Project Team are expected to provide input based upon their
functional expertise and to participate in the discussion that will
result in the development of the deliverables.
Killer Variables
Conditions that warrant an immediate kill decision at a gate meeting.
Such conditions could be any of the following:
- Legal, ethical, regulatory, technological roadblocks or moral
objections to marketing the product.
- Other issues as deemed important and/or critical to the company.
Metrics
A prescribed set of measurements used to track performance. Metrics
can be used to measure project, business, and process performance.
Parallel Activities
Activities that are completed concurrently by different project
team members. For example, in Stage 1 some project team members
are in the process of completing the Preliminary Market Assessment
while other project team members are completing the Preliminary
Technical Assessment.
Portfolio Management
A decision-based process where a set (or portfolio) of projects
is analyzed in its entirety and from many perspectives such as:
risk/reward, strategic fit, and time to profit. The objective is
to periodically review the portfolio and make critical go/kill decisions
to maximize its value, achieve balance and ensure strategic alignment.
Readiness Check
The readiness check is completed by the Project Leader prior to
the gate meeting and by the Gatekeepers at gate meetings. The readiness
check ensures that key activities have been completed in accordance
to the quality required. These activities must be reviewed for quality
prior to the scorecard evaluation. If the project does not meet
the readiness check requirements, the gate decision should be to
recycle so that rework can be done and the Gatekeepers do not complete
the gate scorecard.
Scorecards
A set of measures upon which the project is judged. Projects are
rated consistently using a number of key criteria based on rating
scales. The ratings are then added together to yield an overall
project score so that projects can be ranked-ordered against each
other or compared against a minimum acceptable score. Scorecards
facilitate consistent and fact-based evaluation across a cross-functional
team of gatekeepers.
Stage
A prescribed set of activities which are carried out in parallel
(opposed to sequentially) by different functional areas. Each stage
is designed to gather information needed to progress the project
to the decision point and reduce uncertainties. Each stage costs
more than the preceding one – an incremental commitment process.
Stage-Gate Process
A value based roadmap for driving product innovation projects from
idea concept to launch and beyond. The Stage-Gate methodology was
developed by Dr. Robert G. Cooper, the world-expert in product innovation
and has been widely implemented.
Worksheets
Worksheets are the key forms and checklists that guide to complete
various activities and submit high quality deliverables. The team
leader and team members are responsible for reviewing the various
worksheets and determining which ones are the most applicable to
the project’s needs.
|
