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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)
 |
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

* * *
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...
 |
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
  
* * *
A D M I N I S T R I V I A
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