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Innovation and Development Strategies Business Case PHOENIX CONTACT Part III Christian Helmig Business Case PHOENIX CONTACT Part III Business Case PHOENIX CONTACT Part III...

Innovation and Development Strategies Business Case PHOENIX CONTACT Part III Christian Helmig Business Case PHOENIX CONTACT Part III Business Case PHOENIX CONTACT Part III Innovation culture Motivation Leadership Change Management Strategic innovation management Innovation Technology Knowledge IP Innovation Resource Innovation strategy strategy management management controlling management organisation Innovation process Idea management Realization Commercialization Ideation / Idea Scouting & Market idea evaluation & Planing R&D Optimization screening launch generation selection 2 Business Case PHOENIX CONTACT | Part III Adapted from Fraunhofer IPT Business Case PHOENIX CONTACT Part III Innovation management Innovation culture Motivation Leadership Change Management Strategic innovation Productmanagement development Innovation Technology Knowledge IP @ PxC becomes Innovation Resource Innovation strategy strategy management management controllingon realized based management organisation projects Innovation process Ideation process Idea management PxC Development process Realization Market phase Commercialization Scouting & Ideation / Idea Scouting & D1 D2 evaluation D3 M1 … M4 … M7 M8 Market M9 … M12 foresight idea & Planing R&D Optimization screening launch generation selection 3 Business Case PHOENIX CONTACT | Part III Adapted from Fraunhofer IPT Business Case PHOENIX CONTACT Part III Today´s agenda  Project management  Product development process 4 Business Case PHOENIX CONTACT | Part III  Why is project management required? When is the implementation of project management useful (when not)? 5 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Development of project management 2500 v. Chr. 1697 n. Chr. modern project management 2021 …. 2500 v. Chr. 1967 1969 1981 2005 Daniel Defoe PMI IPMA 6 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Development of project management However, an honorable project maker is one who adequately commits his idea to the clear principles of common sense, honesty and prudence. analogous to Daniel Defoe (1697) 7 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Why project management? - path from idea to product  The „fast way“ Idea Product Mistake Sub function Key function High level of risks:  Problems are detected at the end of the development with all the bad consequences (time, money, …)  There is no defined “setback"  not calculable 8 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Why project management? - path from idea to product  The „fast way“ Some practical experiences Idea Product Duration of projects is completely incalculable Planned: 12 month; actual: 30 month Mistake Costs Significant development errors occur only at the customer Function Troubleshooting and device replacement in manufacturing plants Unsustainable commitments to customers lead to prototype delivery High level of risks: "Banana products" mature at the customer site  Problems are detected at the end of the development with all the bad consequences (time, money, …)  There is no defined Announcing “setback"ghost products at trade shows and in brochures Product discontinuation before the first delivery  not calculable 9 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Why project management? - path from idea to product  The „fast way“ Failure costs Remember: a mistake itself is cheap, its late detection is expensive! Idea Definition Development Production Market  What goes wrong at the beginning will be costly in the end when detected lately 10 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Why is project management required? Costs ~ 30 % without project management lower costs ~ 30 % with project management less time Depending on project size ~ 5-10 % higher costs at the beginning Time  Project management helps to reduce time and costs 11 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III When is project management applied? Procedures Complexity Projects new complex medium small known Measures Routine Targets 12 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Characteristics of a projects high complexity certain degree of clear profit risk What responsibility characterizes Project defined a project? financial budget limited personnel resources innovative nature objective 13 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III The „magical triangle“ of projects Scope  What does the project need in order to achieve the quality in terms of technology, budget and personnel? Time  Which final date and which intermediate dates (milestones) do you want to reach? Budget  What budget do you need if you want to meet the required deadline and the quality should meet your expectations? Resources  How many human resources do you need for this project? 14 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Project organization: matrix team Head of Project board Business Unit Multi project Project 1 Project 2 Project 3 management Industrial Engineering internal Development Laboratory Product management external Customer Supplier 15 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Project resource management Human resource staffing at project start Hours booked on projects Staff: capacity utilization per employee 16 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Phoenix Contact: career model A project-oriented company needs the job title "project manager" for the personnel development concept in addition to the classic specialist or management career path. Project managers are systematically qualified and supported. The project manager will be ranked according to his experience in the company's career model. Depending on interest and inclination, the project manager can later change to one or the other classic path. 17 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Phoenix Contact: Internal training concept External Internal training training Based on the same international standards! 18 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Waterfall: Stage-Gate® Milestone Process …allows to shorten the “time to market” thanks to the early detection of problems and the avoidance of setbacks in the development process and…... makes the project more calculable & safe 19 Business Case PHOENIX CONTACT | Part III Stage-Gate® is a registered trademark of the Dr. Robert. G. Cooper, Product Development Institute Business Case PHOENIX CONTACT Part III Today´s agenda  Project management  Product development process 20 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Reminder: Innovation process Innovation culture Motivation Leadership Change Management Strategic innovation management Innovation Technology Knowledge IP Innovation Resource Innovation strategy strategy management management controlling management organisation Innovation process Ideation process Idea management PxC Development process Realization Market phase Commercialization Scouting & Ideation / Idea Scouting & D1 D2 evaluation D3 M1 … M4 … M7 M8 Market M9 … M12 foresight idea & Planing R&D Optimization screening launch generation selection 21 Business Case PHOENIX CONTACT | Part III Adapted from Fraunhofer IPT  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Gate Stage Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 22 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process  In each stage, the team deals with a set of specified activities that are based on the “Best Practices” of Product Development.  Each stage has to be completed successfully before approval The (from management) is granted and the next stage of the product development can be tackled. stages  All stages are interdisciplinary – several departments of a company are involved.  Prior to each stage, there is a decision or “gate”. 23 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process There is a gate prior to every stage...  In the Gate Review Meeting, the results of the activities of the previous stages (“deliverables”) are measured by means of specific criteria. The  Quality assurance of the project: Has the previous stage been gates carried out in sufficient quality?  The criteria are stated in the form of checklists  The results of the Review Meeting provide decisions in the form of “Go”, “Hold”, “Recycle” or “Kill”...which determines whether and how the next stage is started. 24 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Gate Meeting Rejection/ on hold Project No, requirements are ends or gets not met (or new planning & re-evaluation) “on hold” Catalog of Yes with constraints: Limited release (project continues, measures has Are all requirements of the requirements are not to be project with the plan at this constraints have to be met) entirely met completed time? Review gate meeting (project Release (project continues) Project Yes, requirements team & management team) can be are met continued 25 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 26 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M1 gate meeting: release of requirement specifications What is  Target: Marketing/Sales have described a product that contributes to the success of the company required?  Criteria: Pre-  Functions have been accepted by the customer or comply with the market requirements clarification /  Compliance with the Strategic Development Plan (SDP) M1  Importance and priority of the product have been coordinated  A project leader and a team have been named for the functional specifications stage  The resources are available 27 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example SUNCLIX: analysis of competitive products Analysis of competitive Analysis in terms of… products in order to identify Competitor products:  Extended temperature strenght &  Amphenol Helios H4 shocks weaknesses  Kostal KSK4  Thermal tests and potentials for USPs  Lapp EPIC® SOLAR 4  Climatic tests  Multi-Contact MC4  Mechanical tests  QC Solar QC4.10  Life tests  Yamaichi Y-Sol4 F.A.T.  Mounting comparison  Weidmüller WM4  Life cycle costs  Weidmüller PV-Stick 28 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX benchmarking against competition Endurance test Assembly test Economic evaluation Installation time benchmarking Handling & instruction evaluation 29 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M1 gate meeting: release of requirement specifications Part of the What is  Target: Marketing/Sales have described a product that contributes to the success of the company SUNCLIX required? requirement  Criteria: Pre- specifications  Functions have been accepted by the customer or comply with the market requirements clarification / document  Compliance with the Strategic Development Plan (SDP) M1  Importance and priority of the product have been coordinated  A project leader and a team have been named for the functional specifications stage  The resources are available 30 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 31 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8 Translation of  M2 gate meeting: technical specs are created requirements into Criteria: technical  The requirement specification is transferred to the technical specifications specification. The specifications for development and implementation are agreed and documented in the technical  Create specification. The realization concept is agreed by all Technical departments involved. Specification /  The project manager is appointed and has taken over the M2 project order. 32 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 33 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M3 gate meeting: The concept and the steps to realization of the product are known to Design all involved in the project. They serve as basis for further ascertainment of the product. concept phase Criteria:  If mechanical components are created during the project, a CAD 3-D model must exist.  Definition of If necessary, the order for production of a rapid prototype is issued or procurement of product samples (components, standard parts etc.) is initiated. concepts/  Development has reach a level of maturity that supplies meaningful results during tests M3 on 3D models/ rapid prototypes The project manager is appointed and has taken over the project order.  In the case of electronics: the function blocks for realization of the product are determined and the division between hardware, firmware and software took place.  Depending on the risk assessment, a product FMEA must be available. 34 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III EXAMPLE: developing product concepts with customers Contact system Innovation workshops Field connection with a large inverter supplier Device connection (here: morphological Wall feed through box) Locking 35 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III EXAMPLE: developing product concepts with customers Contact system Innovation workshops Field connection with a large inverter supplier Device connection (here: morphological Wall feed through box) Locking 36 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 37 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M4 gate meeting: The development concept has been verified. All construction elements are available. The production of tools and equipment can be initiated Prototype phase Criteria:  Tested rapid prototypes or development samples and/or 3D models are available  Prototype approval/  The manufacturing costs are calculated and do not exceed the costs M4  The manufacturing process can be realized with known methods  The availability of all purchased parts is secured  A requirement specification is available for the pending production equipment  A process FMEA was performed 38 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX – 3D CAD 3D CAD model 39 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX – FEM analysis Mounting force Different variants Pull-out force 40 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX – FEM analysis Cold impact 30 A Heating 40 A 41 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III M4 evaluation: profitability assessment Forecast of costs & units sold over 8 years Accumulated returns vs. costs Break even: Returns units/Y 4 years, 10 months Production costs (incl. expectation of profit) Costs 2nd y Overall turnover 17,272,600 € 3th y 4th y 5th y 6th y 7th y 8th y 1st y PC for total quantity 7,390,100 € Time Traffic light tototal Investments estimate profitability1,500,579 € M6 Overall project costs 140,789 € 42 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 43 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8 Release of  M5 gate meeting: The coordinated move onto pre-series with individual parts that individual correspond to the requirements of the technical specification took place. parts Criteria: pre-series with  Samples of all drawing-based individual parts are available and are measured. They correspond individual parts to the current valid drawings and are approved for pre-series. /  Product documents for production of the pre-series are available M5 44 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX production concept Assembly: Assembly: O-ring on unlock mating face Packing: bag Insert: Insert: Attachment: Insert: Pre-snap: Port O-ring cable seal nut clamping body mating face Packing: carton Production flow 45 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX production concept Insert: Striping & 100% crimp force monitoring seal in nut crimping Packing: bag Insert: Assembly: Put on: Insert: Snap in: Port O-ring unlock nut holder contacts Packing: carton Production flow 46 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX laboratory tests Lab tests  Temperature shocks + 85°C / - 40°C (200 times)  Storage in damp heat 1.000h / +85°C / 85% humidity  Storage in the heat 1.000h / +105°C  Withstand voltage 2.000V + 4x rated voltage for 60s  Mechanical stress tests  … 47 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 48 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M6 gate meeting: The development is completed. A pre-series was produced. The Production product was released and can be supplied without sample designation. pilot Criteria I: Pre series  FSTR Release for all components is completed. The requirements according to the technical phase/ specification are achieved. The client has approved the product. M6  The results of the release test are documented  The produciability is ensured. The availability of single parts and end product is given  The production process is released  Assembly instructions, Test instruction and Packaging instruction are available 49 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX production sites Production hall 7 Production hall 32 completion in January 2010 completion in July 2010 50 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 51 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M7 gate meeting: The Supply capability according to agreed series startup planning is secured. The product can be sold Sales Criteria I: release  The new products were transferred to sales Series phase/ M7  An availability date for the product is available  Orders can be acquired from the named availability date  The required series quantity in the series startup phase can be manufactured safely  The required stock was set up  Dispatch data is available 52 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX – joint market launch 42 weeks i 53 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Example: SUNCLIX – sales promotion Supporting market launch & sales: promotion videos / brochures / sample kits / … 54 Business Case PHOENIX CONTACT | Part III  Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Phoenix Contact development process based on projects Idea Product Create Pre- Create Prototype Realisation of Pilot Series Project Technical clarification Concept phase Components Production Production Review Specification M1 M2 M3 M4 M5 M6 M7 M8 55 Business Case PHOENIX CONTACT | Part III Business Case PHOENIX CONTACT Part III Product development @ PxC: Milestone Process Create Pre- Create Prototype Realisation of Pilot Series Technical Project Review clarification Concept phase Components Production Production Specification M1 M2 M3 M4 M5 M6 M7 M8  M8 gate meeting: The responsibility for supply is transferred entirely to production. Criteria: Project  The product is released for unlimited series production. The required production capacity within review the framework of sales planning is available M8  The target manufacturing costs are not exceeded at forecasted quantities.  Sales planning corresponds to the current status and is in the continuous sales planning  All required approvals in the technical specification are available  A final product report is available.  The project team disbands. 56 Business Case PHOENIX CONTACT | Part III  Many thanks for your attention. 57 Business Case PHOENIX CONTACT | Part III