Case Studies & Featured Presentations
CASE STUDY
Improving Product Development Through
Pipeline Management
Paul Aspinwall
Process Architect
IBM
An IBM business unit suffering from
projects missing committed launch dates (and revenue shortfalls). Believing that resource
overloads, particularly on key people, were a major contributor, the unit invested in a
resource management system that integrated product strategy and plans with resource
planning. This ensured agreement on the right projects, prioritized allocation of
resources, and a management ability to better work through dynamic changes. This case
study will discuss the management approach and tools used to get better results.
Key learnings:
- What are the prerequisites to operational success in resource
management?
- How do you design tools and management systems with checks
and balances?
During 35 years with IBM, Paul has been a salesman,
market planner, business strategist for software, manager of product forecasting and
business planning for software in Europe, manager of technology planning for internal use
of IT, manager of systems education, program manager on National Language Support and
Information Development, and currently a process architect for IBM's Integrated Product
Development process. In 1999, the book "Business Process Engineering" included a
chapter he co-authored on "IBM Reengineering from a Development Reengineering
Perspective." Paul haspresented on IBM's reengineering efforts at the International
Association for Product Development workshops and at Management Roundtable and PDMA
events.
CASE STUDY
A Framework for Integrating Resource
Management with Critical Decision Making Processes in NPD
 Paul R. Bunch, PhD
Manager of Capacity Planning and Management
Eli Lilly & Company
In NPD organizations, the resources required to complete all
attractive projects exceed the available resource pool. However, Resource Management (RM)
in NPD has typically been viewed as something that must be done after other key processes
have been completed. For example, Portfolio Management is a cyclical process that helps
the organization decide what to work on and how to prioritize its projects. Business
Planning is a process in which organizations set functional budgets and headcount targets.
Resource management is typically viewed as an operational process in which functional
groups decide how to apply their resources to optimize the portfolio output given
the portfolio selected from Portfolio Management and given functional budgets. This
approach separates what an organization intends to work on from the resources required to
complete the work and makes resource management a reactive rather than proactive process.
Resource management is a process that should anticipate
resource constraints and inform portfolio managers and business developers of potential
resource deficits in time to develop risk management plans. This can provide tremendous
benefits to the organization including driving alignment across functions and focusing
resources on the critical constraints. This presentation will cover the following key
areas:
- A framework for describing resource management in NPD
- How resource management can be integrated with Portfolio
Management and Business Planning
- Critical capabilities, tools, and processes required for the
integration
- Case studies describing how resource management processes have
been integrated with critical decision making processes in NPD
Paul Bunch works in Lilly Research
Laboratories (LRL) as Manager of Capacity Planning and Management. In his current
assignment, Paul is involved developing processes and information to integrate capacity
information into key decision processes, especially those involving significant resource
allocations. Prior to his current assignment, Paul has held several management and
technical assignments in Project Management and Discovery research. Most of his work has
been focused on the development of decision support systems, capacity management and
productivity improvement initiatives. Paul has also held positions in manufacturing, where
he focused on implementing planning and scheduling systems to optimize capacity in
Lilly’s production facilities.
FEATURED PRESENTATION
Key Pipeline Practices Drive Effective Capacity
Management
 Bradford L. Goldense
President
Goldense Group, Inc.
The techniques, touch points, and management steering
approaches that companies use for pipeline management have a larger impact on profit and
loss than the systems and tools used to manage detailed capacity and scheduling.
Focus on being effective before worrying about being efficient. Learn how
seven practical best pipeline practices improve capacity utilization. Mastery of the
subtleties of ideating, concepting, selecting, balancing, starting, ramping, and
obsoleting projects and/or products will improve yield.
Brad Goldense, President of GGI, has been assisting
engineering and manufacturing companies for the past twenty years in assessing,
developing, and implementing competitive business changes. Mr. Goldense has consulted to
over 75 Fortune 1000 companies and has done work in well over 250 manufacturing plants. He
specializes in several areas including: strategic planning, reengineering, product
development, manufacturing management, and engineering/manufacturing design/information
systems. For the past five years, Mr. Goldense has concentrated his efforts in the
concurrent engineering and engineering automation areas to reduce cycle times product
development and manufacturing functions.
CASE STUDY
How HP Optimizes the Use of Scarce R&D
Resources
Michael Menke
Business Strategy & Technology Consultant
Business Innovation & Transformation Services
Hewlett-Packard
&
Ralph Morales
Finance Team Lead
IPG New Business Creation
Hewlett-Packard
Despite spending nearly $4 billion annually on R&D, HP
can’t possibly cover all of its fields of business interest. Therefore, one of its
core strategies is to innovate where a difference can be made and partner for the rest.
Given this approach, how do we determine the best places to focus our scarce resources?
The answer is portfolio management. This case study will explore how HP:
- integrates business portfolio management with investment
portfolio management
- ensures data integrity between planning and investment
analysis
- determines where to focus its limited R&D resources
- responds quickly and intelligently to unavoidable budget cuts
- leverages a common portfolio process across all business units
- improves and extends portfolio management in the future
Portfolio management is fast becoming a process that guides
decision-making at the highest levels of the corporation. A case study will show how HP
generates high quality inputs for portfolio management in one of the most risky areas, new
business creation.
CASE STUDY
Active Business Portfolio Management
Paul D. Ries
Senior Portfolio Manager
Dow Polyurethanes
Actively managing a
portfolio requires integrated decision making and business planning. Among the
areas to be considered are business strategy, opportunity analysis and
selection, product planning, resource management, financial forecasting, project
planning, and performance tracking. Taking a holistic approach to
analyzing the strategic and tactical portfolios is the first step toward managing
risks and driving performance. This presentation will discuss the underlying
risks associated with a development portfolio and various techniques for
managing them
FEATURED
PRESENTATION
Managing the Impact of Portfolio Shifts on
Resource Management
 Peter Dierauer
Emerging Technology Leader
Sensing and Control
Honeywell, Inc.
In situations where major portfolio shifts are necessary,
such as moving a business from a harvesting to a growth mode, the link between resource
management and portfolio management is essential; resource management can be especially
difficult and critical for success in this situation. This presentation will cover an
example of a drastic portfolio shift and its impact on resource allocation management.
Several portfolio and resource management tools that are useful for such instances will be
presented and discussed.
Peter Dierauer is the Emerging
Technology Leader for Honeywell’s Sensing and Control business unit. He graduated in
1988 from the University Biel/Bienne, Switzerland with a MSEE. He held several positions
in Honeywell Europe before he moved to the United States in 1995. Since then he has
focused his activities in the Technology Management field. Over the past three years he
was involved in the development and deployment of the portfolio management system within a
division of Honeywell Control Products. He facilitated the Automotive on Board Product
Approval and Portfolio Management Committee and developed and deployed the Automotive
Technology Portfolio Management Process. Today, Peter Dierauer is managing the Honeywell
Sensing & Control Technology Portfolio.
CASE STUDY
Improving NPD Execution - Resource
Capacity Planning and Management
 Emery Powell
NPD Manager
Texas Instruments
A primary cause of time to market delays for new product
development (NPD) is inadequate management of resource capacity versus the
demand, particularly with respect to critical path tasks on a project's schedule.
Marketing and sales are driven by the desire to capture every
new product opportunity they find. Management is driven by the desire to increase NPD
throughput, release as many new products as possible, and capture the revenue. The typical
response to these needs is to rapidly feed new product opportunities into the pipeline.
The expectation is: More IN = More OUT. Yet, exceeding throughput capacity all too
often leads to a clogged pipeline. So how can we manage NPD capacity 3, 6, or
12 months in the future? How can we know what the critical path demand is for a
particular type of resource or for a single resource, months in advance when NPD is
inherently a highly variable environment? How can we measure and assess the impact of
the resource demand and our capacity constraints on execution success?
Enterprise and portfolio level tools that can provide this
management capability are now available for new product development. This presentation
will present the on-going status and findings of recent pilots effort to use
these types of tools in Texas Instruments, the implementation difficulties, and
the preliminary improvement gains.
Emery is currently the New Product Development
Manager for one of Texas Instrument's billion dollar businesses. Previous experiences
related to this presentation have included the merger and integration of the NPD
capability of multiple large businesses, and large scale cycle time, six sigma, project
management, and enterprise performance management improvement initiatives. He has managed
many R&D and NPD Projects over his career for multiple companies, and he has been a
principle in launching two new companies.
CASE STUDY
Dynamically Optimizing Global Resources
Bill Branan
Director of Strategy
Global Subscriber Products
Motorola, Inc.
In our global, constantly changing, environment it is
difficult to efficiently manage resources and projects across changing priorities,
timelines, multiple locations and multiple business units. The use of common processes and
tools, consistently and frequently applied, in both early and late stages of project
selection and development enable an objective framework for ensuring the portfolio of
projects best aligns both with business strategy and resource availability. This paper
will discuss the nature and types of processes and tools which not only facilitate this
alignment, but which also earned the Malcolm Baldridge National Quality Award.
Bill Branan is currently Director of Strategy
for the Motorola Commercial Government and Industrial Solutions Sector (CGISS), Global
Subscriber Product Division. He is responsible for global technology planning and
coordination. Bill has held increasingly responsible positions in Product Development
Engineering, Manufacturing, Advanced Technology Development, and Marketing. He is a
Motorola distinguished innovator with 17 U.S. Patents. He earned a BSE from University of
Central Florida and a MBA from University of Miami.
CASE STUDY
Evolving Processes and Tool-sets to Drive
Resource Allocation and Portfolio Management Decisions
Clinton J. Wolfe
Global Program Manager
IMS Health
This presentation will give an overview of IMS Health’s
evolution of Resource and Knowledge Management processes and supporting tool-sets within
its Product Development Organization. The presenters will discuss their maturation from
tracking simple inventories of skill sets and current projects assigned to
forecasting/assigning resource allocations across 1-24 months, and tracking resources
across multiple projects. They will address the critical inter-dependencies between
resource management and portfolio, project and finance management, resource management and
the importance of resource management across the entire cross-functional enterprise. They
will also provide an overview of their evolving tool-sets (from a paper-based,
Access-supported system on a single desktop, to a homegrown web-based interface and now
exploring the potential benefits of an off-the-shelf tool).
Take-aways:
- The importance of creating process before adopting tool-sets
- The benefits of starting with skills inventories as the
"lowest common denominator" for resource decisions & allocations
- The value of allowing the resource perspective to drive
critical budget planning cycles
- Strategies to integrate and align resource management with
portfolio, project and financial management
- The critical underlying role that the resource management
function plays in ensuring that all stakeholders to resource decisions are on the same
page
Clint Wolfe has been with IMS Health
for nearly four years, focusing on process design and improvement. The resource management
processes Clint refined at IMS Health in the US mapped as corporate best practice through
a 2002 external benchmarking study. He is currently managing a global program through
which IMS is leveraging best practices to standardize process in the areas of resource,
project, portfolio and metrics management in five major regions around the world.
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