Muasaad Alrasheedi TIM Program, Carleton University

TTMG 5103ModuleEvaluating New Product/Service Performance Prior to Release & Mapping new product and service delivery processJune 19, 2009 Muasaad Alrasheedi TIM Program, Carleton University

Agenda • Management Challenge • Objective • Prototyping • Build a fully functioning model of your new product to test and perfect it. • Piloting • Build a fully functioning model of your new service to test and perfect it. • SIPOCMap • Identify the key inputs and outputs of your processes • Process Map/Value Stream Maps • Flesh out the details of your process. • Lesson Learned • References

Managerial Challenges • Even great design or solution can be thwarted by poor implementation • Design is sound on paper doesn't mean it will perform as expected under all circumstances at all time

Objective • What will be learned: • Can your processes make your new product or service easily and cost-effectively? • Can you deliver your new product or service to customers consistently with no errors? • Will your business model actually work in the real world?

Prototyping • An initial physical, functioning model of your innovation • It helps to: • Test the robustness of your design • Verity the requirement resource & processes are available to support full-scale production or delivery of your innovation • Prevent rework and the costs associated with tweaking functions when the product doesn't work in the real world

Prototype Steps • Design Prototype Evaluation: • Iterative process, need to build more than one full-scale • Should determine the purpose of prototype • How you will measure the design’s performance

Prototype Steps • Build a Prototype: Using production equipment and staff as much as possible To validate several key items: • Manufacturing and assembly processes • Do you have right materiel, equipment and tools? • Human Capital Readiness • Training & safety • Production Tooling Issue • Special tools

Prototype Steps • Evaluate the Prototype Using a Function Audit: To measuring the design response to both controllable and uncontrollable factors Determine the following • The subsystem • Functions each subsystem • The target and specification for each function

Prototype Steps

Prototype Steps • Evaluate the Prototype For Robustness: To evaluating Functionality • How well dose the product perform under varying conditions • Consider Additional Evaluations: To evaluate the prototype for • availability • maintainability • environmental impact • and reliability • Repeat the Prototype Process

Prototype Moment Of Truth • Discussion • Example • Every new technology, products • Architectural projects • Can be physical • Beta releases in software

Piloting • The practice of guiding your innovative offering through real, yet conditions to test performance, safety, quality, durability, and marketability Example: Banks run pilots before offering new service or opening new branch

Piloting Steps • Plan the Pilot – use pilot charter to answer the questions: • What are the objectives of the pilot? • What features and functions of the innovation need to be validated? • How will you measure product or service performance? • Who are the customer for this product /service? • How much the pilot cost? • Is there data available from previous pilot that would be helpful? • Are there any piloting mistake your organization made in the past?

Piloting Steps • Design the Pilot: Determine and document all the logistical and technical details that are needed to make the pilot a reality

Piloting Steps • Designate Resources: Identify and schedule resources, people who will run and monitor the pilot, plus customer and other participants • What the role of each participants? • Which performance metric will be tracked by which resource?

Piloting Steps • Run the Pilot: People actively involved, and data is collected Be sure to consider the following: • Have enough people on hand to answer the questions • Monitor your data collection • Make sure that participants know their feedback is valued • If the pilot lasts more than one day, keep communication line open with participants, resources, and stakeholders.

Piloting Steps • Analyze the Result: • Statistical analysis to determine what changes • Discuss the result with the team and determine: • What aspect of the product or service do you need to modify for it to better meet customer expectation? • What additional opportunities the offering did you uncover? • Did the pilot achieve its objectives or do you need to run another pilot?

Piloting Moment Of Truth • Discussion • Example • New food in a test market before expanding the item to all location

Agenda • Management Challenge • Objective • Prototyping • Build a fully functioning model of your new product to test and perfect it. • Piloting • Build a fully functioning model of your new service to test and perfect it. • SIPOCMap • Identify the key inputs and outputs of your processes. • Process Map/Value Stream Maps • Flesh out the details of your process. • Lesson Learned • References

SIPOC • SIPOC: Supplier - Input - Process - Output - Customer - a high-level map of a process that helps springboard the transition of developed solution into production or delivery - SIPOC Map can be used when you need a shared understanding of how you plan to produce and deliver your innovation to customers

SIPOC

SIPOC Steps • Create a High-Level Map of the Process: The P in SIPOC designates the process the set of activities or tasks that transform inputs to outputs • Identify the first and last tasks in the process • Specifying these steps helps to scope the project and clarify boundaries between the organization and its suppliers and costumers • Identify the sequential steps and between the first and last steps • Specify an action and an object in each box

SIPOC Steps • Identify The Outputs of the Process: The O in SIPOC designates the final output Product, Service or information provide to the customer What the process produces and for whom?

SIPOC Steps • Identify the Customers of the Outputs: The C in SIPOC designates the customer person, group, or the process receiving the output • New drug Patients • New drug information Physicians

SIPOC • Identify the Inputs Required by the process: The I in SIPOC designates the key input materials, information or products that are essential to the process

SIPOC Steps • Identify the Suppliers of the Inputs to the Process: The S in SIPOC designates the Suppliers Individual, group or department that provide the Inputs There is direct link between a specific Supplier and the specific Input

SIPOC Moment Of Truth • Discussion • Example

Process Map / Value Stream Map • Process Map: - Basic flowcharts that depict the progression of steps, decisions, and handoffs involved in transitioning a new product or service from paper (its design) into production / delivery to customers • Value Stream: - Process Map + a level of sophistication related to time and the identification of value-added versus non-value-added activity

Process Map / Value Stream Map Can be used in one of two ways: • Document the (as-is ) process the way it currently runs • Or the future state of the process if it hasn’t been development, tested and implemented To document How work will be accomplished & how process inputs are transformed into process outputs create needed consensus and positions the organization to implement an innovation as planned

Process Management and Technological Innovation • Process management practices: - a series of quality related initiatives, including total quality management (TQM), the Malcolm Baldrige Award criteria, ISO 9000, and Six Sigma programs. • Focus on improving an organization‘s efficiency through high level coordination of an organization‘s activities in a rationalized system of end-to-end processes.

Steps - State Process Map • Define the Map Boundaries: • Identify the scope of the map its starting and ending point • Begin with a manageable portion • SIPOC Map will give you starting and ending point for your process

Steps -State Process Map • Map the Future-State Process: • What will happen next? • Who perform this step or action ?

Steps - State Process Map • Finalize the Future-State Process Map: by adding any information that might further illuminate the process, and ensures that your innovation has the best chance of success as you bring it to market For example: • Add element of time across the top of the map to show how long step take • Or add document or forms to provides more details • To identify areas where you anticipate possible problem, such as bottlenecks, poor productivity and cet.

Steps – Value Stream Map • The steps for completing a future-state Value stream Map using part of the order-to-invoice process • Place each of the planned process steps in order from first to last in the center of the document • Place each process under the major steps in vertical stack • Label each process step with how will do it • Indicate any rework loops by drawing lines to any place in the process where work must return based on inspection or any other decision criteria

Steps – Value Stream Map • Identify any supplier or recipient of information or material from the process and draw a separate icon to represent each one • Draw a line the direction of the material or process flow from or to the outside entity with an arrow • Insert arrow in between each major step indicating process flow • Insert any anticipated queues in between the steps and use the queue shamble

Steps – Value Stream Map • Collect basic data around how long it will take to complete the major steps or substeps. Fill in any times in the relevant steps. Write the estimated process cycle times on the bottom of the baseline chart • Measure any inventory wait expected at any step • Forecast the wait times for any of the steps and insert on the baseline chart • Calculate the total queue times and for the process and display this in a time line at the bottom of the chart

Value Stream Map

Process Map/Value Stream Maps Moment Of Truth • Discussion • Example

Lessons Learned • Prototype allows for prove a new design concept • A pilot demonstrates to stakeholders and customers how your innovation address both provider and customer expectation • Process management activities focused on mapping, incrementally improving, and adhering to organizational

References • Benner, M. & Tushman, M., “Process management and technological innovation: A longitudinal study of the photography and paint industries,” Administrative Science Quarterly, Vol. 47, 2002, p. 676 • www.innovatorstoolkit.com • http://www.baldrige.nist.gov

Muasaad Alrasheedi TIM Program, Carleton University