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TCP Home | <Previous Issue | Next Issue> | Issue Archive | About TCP

I s s u e  T h i r t e e n

November 26, 1999

c o n t e n t s / t h i s m o n t h :
1 > Who Wants to be a Heavyweight Product Manager? (Part 1/2)
2 > NPD On the Web: pdLAB
3 > Planning for PDM Failure
4 > Top Ten Product Development Children's Books
5 > MRT News - Conference Developments
6 > MRT Calendar of Events

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a r t i c l e - o n e :
WHO WANTS TO BE A HEAVYWEIGHT PRODUCT MANAGER?
(Part 1 of 2)

Alex-host.jpg (8023 bytes) The lights in the studio dim and the spotlight illuminates our host, Alex Cooper.

"Good evening America, and welcome to Management Roundtable's new game show, 'Who Wants to be a Heavyweight Product Manager?' A trumpet fanfare fills the room. "Alright, let's go to our game. We have our first contestant, Tim Smith, a mechanical engineer from an automotive company in Aurora, Illinois. Tim, are you ready to play?"

"Yes I am, Alex. I've been preparing for this my whole life."

"That's very sad, Tim. America pities you. Just a reminder about the rules, there are 8 questions between you and the position of heavyweight product manager for our next generation product line. Each right answer moves you up a level in the organization. The company wants to see how knowledgeable you are about product development before it invests in you. Remember, you have three lifelines: the 50/50, you can ask the audience, or you can call anyone in America to ask for help. Are you ready for the first question?"

"I am ready, Alex."

"For the position of field service technician, answer the following question:

"What is the most common term for the person that remits monetary units for a good or service that you provide.  Is it:

A) Sucker
B) Customer
C) Manager; or
D) Client"

Tim smiled confidently. "Believe it or not, I've actually met one of these people before, Alex. So I'm going to say B-Customer."

"You're certain about that, Tim?"

"Positive, Alex."

"B - customer." Alex's face grew serious. "Your final answer?"

"My final answer," said Tim, still smiling.

"That's correct," Alex confirmed. "You've reached the position of field service technician. Let's keep moving. Our next question, for the position of shop floor operator:

"Which of the following is not a tool for lean production.  Is it

A) Kanban
B) Pikachu
C) Heijunka; or
D) Poka Yoke"

"I know this one," said Tim. "Let's see now. Kanban is inventory management. I know poka yoke is mistake proofing. I'm not sure about C, but Pikachu - I think that's a Pokemon character, so I'll say B - Pikachu."

Alex looked at him skeptically. "Confident?"

"I am 99.89% sure."

"B - Your final answer?"

"My final answer. B. Yes."

"You're right - Pikachu is a Pokemon character, so you've reached the level of shop floor operator. Your next question is a "stage-gate" question, which means if you answer correctly, you will be guaranteed the position of sales associate. Right now you still have all 3 lifelines left. There are 6 questions remaining between you and the product manager's job. Your next question is:

"In the Theory of Constraints, which of the following things is not an improvement area that can affect 'the goal'?  Is it:

A) Operational Expense
B) Throughput
C) Activity-Based Costing; or
D) Inventory"

Tim sighed nervously. "I should know this, but I'm not sure. I read "The Goal" a few years ago, but my company hasn't embraced any of it. I'm pretty sure 'throughput' and 'inventory' are right, but the last one...I'd just have to guess. I'm gonna have to use a lifeline. Can we call my friend, Jonah, he should be able to help me."

"Alright," said Alex. "We'll get AT&T to call up Jonah, let's hope that he's home," a dialing phone can be heard in the background, then a click.  "I believe we have him on the line now. Hello--Jonah?"

"Yes, this is Jonah?"

"It's Alex Cooper calling from MRT's 'Who Wants to be a Heavyweight Product Manager.'"

"What the…? How did you get this number?"

"Your friend Tim is here, trying to win himself a big promotion, but he's in a bit of trouble and needs your help."

"Tim?  Figures. Okay, put the meathead on. But make it quick. I have a plane to catch."

Tim reads Jonah the question.

"You called me for that?" Jonah exclaimed. "Think about it. One of these things is not like the other. One of these things is not the same. Remember the saga of Unico, Tim. To fix things they had to first forget about all the traditional ways they measured performance. Traditional metrics are the enemy of the goal. I will not tell you the answer. Because I suspect you have known it all along.  Farewell, my friend, and good luck." Jonah hangs up.

"Quite a surly fellow," remarked Alex.

"Indeed," agreed Tim. "And not much help, either. But let me see. He said you had to give up traditional metrics. I'm still not sure, but I'll venture a guess. I'm going with C - Activity Based Costing."

"Activity Based Costing. Your final answer?"

"Yes, Alex. Final answer."

"Jonah helped you more than you think, Tim. C is correct!"  Dramatic music blasts through the studio.  Tim lets out a breath of relief.  "Congratulations, you're a sales associate. Remember, you are guaranteed this position, even if you get a wrong answer. You can also quit at any time, or keep going for the top prize. What do you want to do?"

"I can't even get my kids to eat their vegetables, Alex, so I know I'd be really bad in sales. I could really use a product manager's stock options. I'm going to keep going."

"Alright, good decision. The next question will earn you the level of manufacturing engineer if you answer correctly. Your question is:

"Which of the following books was not written by MIT's Michael Cusumano?  Is it:

A) Competing on Internet Time
B) Thinking Beyond Lean
C) Microsoft Secrets; or
D) Killer Ap"

Tim cleared his throat. "I really need to read more...

"I read Microsoft Secrets, that's a great book, so I know he wrote that one. I remember reading in the news when Cusumano testified in the recent Federal Antitrust suit, and I'm pretty sure it was because of the research that went into his book about Netscape--Competing on Internet Time.

"Thinking Beyond Lean is the only book that doesn't sound like it's about software, so maybe it's that one. But my gut tells me it's Killer Ap. I feel really strongly that was written by someone else. I have to take a guess. So I'm going to go with D-Killer Ap."

"You're gonna risk it on a guess? Remember, you didn't want to be in sales."

"I need the stock options, Alex. I'm going with D."

"You still have two lifelines, Tim. Do you want to use one now? Is D your final answer?"

"I have a feeling I'm gonna need those lifelines, Alex. I've been watching this show for weeks. D is my final answer."

Alex looked at his little blue card with the answer and frowned. Tim's face went blank. Alex's eyes met with his and then Alex brightened with a smile. "It's a good one! The answer is D - Killer Ap. You're now a manufacturing engineer."

A horn sounds.

"Well, that's all the time we have for tonight. We'll be back next time as we continue here with Tim Smith of Aurora, Illinois. Tim has only 4 questions standing between him and the position he's been training for. Please join us next time as we continue MRT's 'Who Wants to be a Heavyweight Product Manager'!"

Go to Part 2

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a r t i c l e - t w o :
NPD ON THE WEB

"pdLAB"

Link:  http://www.pdlab.com  

The pdLAB (I'm assuming the 'pd' stands for 'product development') may interest those of you in the food, beverage or pharmaceutical industries. This site's goal appears to be to become an information portal for product developers in these specific product markets. Some of their services include:

  • Lists of relevant journals and publications
  • Supplier directories
  • Lists of available training courses around the country
  • Articles on the science and chemistry behind food and beverage development
  • Relevant news and other public domain information

Among other things, they also have short articles discussing various studies that have recently been completed, including "Green Tea Health Benefits", "Tea: Antimicrobial Properties" and my favorite, "Honey's Effect on French Fry Acceptability."

TCP reviews websites that are not typically known in the Internet mainstream or not easily found on standard search engines. To appear in TCP, sites must have something of value to offer to product development professionals rather than commercial literature. Know a website we should review? Send the url to gregg@roundtable.com

MRT Advocate Program

* * *

a r t i c l e - t h r e e :
PLANNING FOR PDM FAILURE

This month's commentary provided by Brion Carroll (brionc@aol.com), CEO, Life Cycle Solutions, Inc. and the Product Data Management Information Center. This Q&A originally appeared on the PDMIC help desk on November 8, 1998.

QUESTION:

I am currently doing a project on Product Data Management (PDM) and I have to discuss the business issue of what happens if the newly implemented PDM system fails. Please can you give me some pointers to get started?

PDMIC REPLY:

First of all, the approach of discussing the business issues of a PDM system failure is definitely a unique view - hoping that this is not something a lot of businesses will have to face.

The key here is to start out by knowing what strategic initiative a business has defined for their reason for performing a PDM initiative. Many will focus on "Reduced Cost of Product Development" (shorter overall life cycle, or reduced engineering cost, or reduced redesign, or design right the first time, etc.); or "Improved Product Quality" (design reuse, improved design/analysis, phase, etc.); or "Reduced Scrap" (eliminate building to the wrong design revision, manufacturing input to design for efficiency of material use, etc.); or even ISO 9000 compliance (say what you do, and do what you say).

Each of these has a dollar benefit that should be associated, such as the ability to save 25% in the total cost of Product Development, or 15% reduction in repair on the floor or 50% reduction in Field Change Order (the most costly of repair types), or 28% reduction in waste scrap(unusable) or reworked scrap (reusable), or market compliance (ISO 9000) which expects to increase regional revenue by 18%. Taking this as the lead of why a company does a PDM solution automatically opens the door to the "cost of failure" without even beginning to look at the cost of doing the PDM Implementation.

Next, you have to look at the cost of the implementation, which involves requirements definition (what do you need to achieve your strategic goals in prioritized order), vendor/product evaluation and selection (what will you use to meet your requirements), planning and pilot (or not) implementation. Each has a dollar figure based on the internal staffing or possible use of an outside industry consulting firm, and any software or hardware or training costs incurred.

The reason I include the planning and pilot, is that the only way you know you failed is by not being able to achieve the requirements, as defined, using the solution purchased. Without getting to the point of closure on what is being built, you can only assume that you would have failed, but have no clear proof that this is true.

So, lets take the fact that a company spends 3-6 months getting to the point of implementation and another 2-4 months putting together a sample pilot to begin making the case for success or failure. Depending on the company size, these numbers can be very large or somewhat small. However, the amount is usually proportional to the size of the company so it has the same impact.

For example, a $100 Million company could spend $250,000 putting this together and yields a total loss of $250K, as well as losing competitive time in their market. That competitive time may cost them an additional $4 million in sales advantage. Another company ($1 Billion), may spend $800,000 to find that it has not only lost that investment, but has caused a complete market to become "out of reach". Therefore, the size of the company is scalable to the potential investment and equally proportional to the potential gain it is striving to achieve. What that scale or proportion is can only be guessed at, and therefore I will refrain for providing this.

Therefore, to get you started is to encourage you to:

1.Look at financial and business reasons for a PDM Initiative,

2.Look at labor (internal and external) and time (elapsed) investment to establish a definable success point,

3.Outline the cost of capital or the opportunity cost potential -- including the alternative benefits that are ignored to make the PDM initiative possible.

4.Close with a series of "checks and balances" that would aid companies in monitoring success or failure. Highlight that you want to guard against failure through tracking and awareness, and learn from successes to increase the probability of future successful decisions -- do most often, what is found to work; do least often, what is found to fail. (kinda like stock -- Buy low; Sell high -- easy to say, but not always easy to do).

I realize that you wanted to know the cost of failure, and there are many -- which I've overviewed above. However, I think that a paper that simply says you'll lose money, resources and competitive advantage if you fail only says half the story. I think it should also include how to "monitor against failure" to round-out its overall benefit as a collegiate paper. Might just be the optimist in me -- but I strive for successful endings...

MRT Conference Follow Up - Downloads, Links and more... Visit MRT's conference follow-up section for downloads and links from many of our 1999 and 1998 events.

a r t i c l e - f o u r :
TOP TEN PRODUCT DEVELOPMENT CHILDREN'S BOOKS

...from the MRT home office in Waltham, Massachusetts

10. How the Grinch Stole Project Resources
9. Make Way for Customers
8. Charlotte's E-commerce Web Venture
7. Kaptain Kano's Krazy Kaizen Kapers
6. Curious George and the House of Quality
5. The Little Engineer That Probably Shouldn't Have
4. Willy Wonka and the e-Chocolate Design Factory
3. Where the Wild Things Run Into Problems With Legal
2. Mike Mulligan and his Capital Equipment Invoice

...and the No. 1 product development children's book:

1. James and the Giant Translucent Plastic Peach Colored Computer

Send your Top Ten List suggestions to gregg@roundtable.com


Have a humorous and absurd anecdote
about your product development experiences?
Share them with our readers. Read our "Call for the Absurd"


* * *

a r t i c l e - f i v e :
MRT NEWS

Y2K Conference Developments

In conjunction with Integral, Inc., MRT will be holding an exclusive "summit" level event led by Clayton Christensen, author of the acclaimed book from HBS Press, "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail." This program will feature in-depth case studies, focused breakout sessions and daily reviews with Clay to help firms understand and manage the threat of Disruptive Technologies.

Following up our first conference from last September, this strategic program features a return by MIT's Charlie Fine, author of Clockspeed, Hau Lee of Stanford University as well as case studies and application workshops.

This exclusive summit will focus on breakthrough methods and approaches to managing constraints across complex product development organizations.  Internal resources (time, money, people) and external market factors (customer needs, competition, industry dynamics-- including e-business) will both be addressed; Eli Goldratt will begin and lead discussion while facilitated working sessions will provide hands-on guidance for turning theory into action. The program is intended for for VPs and Directors who are responsible for portfolio and pipeline management as well as for project leaders.  Contact MRT for more information.

* * *

U p c o m i n g M R T e v e n t s

Product Development and the Supply Chain...Applying Constraints Management to Product Development

* * *

A D M I N I S T R I V I A

The Critical Path is a free monthly e-mail newsletter written by:

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