The missing link in product development

Transkript

1 The missing link in product development IDA Proces June 2015 Morten Korsaa Partner - Whitebox

2 My dream! When CEO s of large international industries want to get their products faster to the market, they turn to Denmark for inspiration, advice or even better for investments in our product development services. After today I hope that you feel encouraged to support the idea in the way that only you can do.

3 DNA based improvements Strategic level Values principles Change strategies Proof of Strategy Tactical level Change and control KPI s & Plans Proof of Project Operational/ Project level Project practices Plans and processes Benchmarks / Process improvement Personal level Individual development Reward/incentives structures Competence development

4 Agenda The weak link. Status in Denmark Status in this room! Moving on from here

5 Number 8 in innovation!! Udfordringen But number 61 when it comes to benefit from innovation

6 The challenge Denmark is leading with regards to our ability to innovate (8) But when it comes to creating new products and services based on the innovation, we are lacking behind (61) Including the number of educated in Science & Engineering where we have declined to number 55 Are we just not good enough at product development? That was the research question behind ProductAbility

7 The missing or at least, the weak link? Business processes Sales / Marketing Innovation Back office Product development Production

8 Two mutual supporting aspects of product development Product view All the domain competences needed to bring a product to market. Process view All the generic competences that enable domain knowledge to transform in to a product

9 Balance is essential Product view To much leads to: - We need more resources - It s all the others fault - Too late, too expensive or poor quality Process view To much leads to: - Documentation that has no purpose - Customers who give up reasonable requirements because of beaurokracy I m too busy to be smart I m too smart to be too busy When a project is in trouble, we tend to look in the product domain, but the problem is normally in the process domain!

10 What is process view? It is your ability to look at how the product is being developed, as opposed to the product it self. Product view: She is swimming! Process view: How is she swimming! Obviously she can swim. But if she has ambitions to win the olympic games swimming is not enough! She need to be excellent in all the subprocessess!

11 The process capability levels Generic CL 0: Parts of process is not performed CL1: Process is performed. Goals achieved. CL2: Process is managed, and can be repeated. CL3: Process is performed as a tailored version of the organizations standard processes. CL4: Data is used to predict sub process performance CL5: Process is optimized based on statistical knowledge of what improvement will have the greatest impact Swimming example CL0: Playing around on shallow water CL1:Swimming a few lanes CL2: Practicing the jump, the moves, the turn. Measuring the overall performance. CL3: Learning from the best. Measuring the jump, the moves,, and comparing to other. CL4: Predicting performance. I can beat the record with a 80% probability CL5: Next week I will practice the turn, and I have reasons to believe that I can improve it by 2%.

12 Process insight gives you: Ability to predict the outcome. By looking at the process you can predict if it will lead to the expected result. Ability to lead the project by more proactive drivers than final deadlines and budgets. Overview delivered by models Experts has provided you with a model that includes characteristics of good processes Kick start of learning Access to loads of information of how other have solved a problem that is similar to yours, but in a different domain

13 Process assessment and process improvement Employees has Competences for practically to execute Effectiveness $ $ $ How many products are created for a given input Project Activity 3 Activity 4 INPUT Activity 1 Activity 2 Activity 5 Activity 6 PROCESS All what need to be done to transform input to output OUTPUT Process improvement Maturity or capability improves motivates results in enter into Assessment enter into reference methods are documented in Process descriptions Process model

14 Higher predictability Maturity levels Increased productivity Level Characteristics Processes Better quality Less risks 5. Optimizing 4. Quantitatively managed 3. Defined A learning organisation Quantitative insight into processes Uniform processes Focusing on process improvement Processes are measured and controlled Proactive organisational processes 2. Managed Project results under control Project processes, Often reactive 1. Initial Ad hoc. Heroes Unpredictable, undocumented

15 Release-styring Arbejds Mitigerings Release-styring Stakeholder Inspektioner Produkt Milestones instruktioner krav Test Beslutnings Risiko Interface Tidsplaner Test Budgettering Templates Auditsinvolv. støtte Integrations Bruger kontrakter test Opgave Forbedrings Milestones Hazzard Proces Management Unit rapporter effekt planer test Test fokus miljø design Fremdrift Bruger Projekt Leverandør Regulatoriske Performance rapportering venlighed Analysis nedbrydning projekter audits test Dokument Bruger Livscyklus Testbarhed Kundekrav Kurser håndtering standard Alternative Stakeholder Krav Versionering Dokumentation Deadlines afhængigheder Review krav Performance Procesbeskrivelser krav Fase Uddannelse Kvalitets validering strategier Budget Prototyper Baselines kommunikation Korrigerende Release Projektmøder test Ressource Risiko opdeling Arkitektur Estimering sandsynlighed planlægning styring handlinger Kompetence Tekniske Fejl sikring komm. Retrospectives Konstruktion System Final Design Drifts opfølgning håndtering interfaces test planlægning test Kompetence Beslutnings Proces Krav performance kriterier planlæg. Opfølgnings Commitments Outsourcing Ændrings Interessent Hjælpe-værktøjer Kunde Checklister Accept krav Eksterne Kvalitets Interface rapportering assesments analyse krav test Sporbarhed behov frekvens styring Afstemning Risiko Underleverance Delproces Programmering Udvikling Release Styklister kategorier af analyse målinger styring planer godk. Hjælpe værktøjer Kvalitets sikring Leverandør kontrakter Kurser Opgave nedbrydning Dokument håndtering Arbejds instruktioner Beslutnings kriterier Livs cyklus standard Forbedrings projekter Uddannelse Audits Konstruktion Bruger test Integrations test milestones Kunde krav Alternative strategier Stakeholder kommunikation Budget opfølgning Stakeholder involvering Retrospectives Kkompetence planlægning Kunde behov Inspektioner Opfølgnings frekvens Prototyper Risiko kategorier Interessent analyse Krav validering Base lines Dokumentation Templates Korrigerende handlinger System-test Produkt krav Proces Performance Sporbarhed Versionering Tidsplaner Budgettering Hazzard analysis Leverandør audits Bruger kommunikation Fase opdeling Deadlines Release-styring Milestonesreview Checklister Ændrings styring Beslutnings støtte Kompetence planlægning Arkitektur Styklister Proces fokus Ressource planlægning Krav analyse Regulatoriske krav Projektmøder Estimering Release-styring Fejl håndtering Test management Accept test Commitments Projektafhængi gheder Test rapporter Risiko effekt Mitigerings planer Udvikling Testbarhed Test miljø Del proces målinger Outsourcing Performance krav Afstemning af planer Drifts krav Eksterne assesments Unit test Underleverence godkendelser Tekniske interfaces Fremdrift rapportering Procesbeskrive lser Risiko sandsynlighed Interface krav Final test Bruger venlighed Performance test Kvalitets rapportering Interface design Design Programmering

16 Release-styring Hjælpe værktøjer Kvalitets sikring Leverandør kontrakter Kurser Opgave nedbrydning Dokument håndtering Arbejds instruktioner Beslutnings kriterier Livs cyklus standard Forbedrings projekter Uddannelse Audits Konstruktion Bruger test Integrations test milestones Kunde krav Alternative strategier Stakeholder kommunikation Budget opfølgning Stakeholder involvering Retrospectives Kkompetence planlægning Kunde behov Interessent analyse Krav validering Inspektioner Opfølgnings frekvens Prototyper Risiko kategorier Base lines Dokumentation Templates Korrigerende handlinger System-test Produkt krav Proces Performance Sporbarhed Versionering Tidsplaner Budgettering Hazzard analysis Leverandør audits Bruger kommunikation Fase opdeling Deadlines Release-styring Milestonesreview Checklister Ændrings styring Beslutnings støtte Kompetence planlægning Arkitektur Styklister Proces fokus Ressource planlægning Krav analyse Regulatoriske krav Projektmøder Estimering Release-styring Fejl håndtering Test management Accept test Commitments Projektafhængi gheder Test rapporter Risiko effekt Mitigerings planer Udvikling Testbarhed Test miljø Del proces målinger Outsourcing Performance krav Afstemning af planer Drifts krav Eksterne assesments Unit test Underleverence godkendelser Tekniske interfaces Fremdrift rapportering Procesbeskrive lser Risiko sandsynlighed Interface krav Final test Bruger venlighed Performance test Kvalitets rapportering Interface design Design Programmering

17 Arranged into one model to provide the overview

18 CMMI Whitebox Benchmark level 1,00 Doing it? (performing the practices) Is it repeatable? (Institutionalized) Documented? (Org. learning) Fully Largely Partly None Not relevant 5 Project Management Development Support Organization 4 Quantitative Project Management Causal Analysis and Resolution Org. Inn. & Deployment Org. Process Performance 3 Requirements Developments Org. Process Focus Integrated Project Man. + IPPD Technical Solution Decision Analysis and Resolution Org. Process Definition Risk Management Product Integration Org. Training Verification 2 Project planning Validation Configuration Management Project Monitoring & Control Requirements Management Process & Product QA Supplier Agreement Management Measurement & Analysis

19 CMMI Whitebox Benchmark - Ref 1104 level 2,25 Q Doing it? (performing the practices) Is it repeatable? (Institutionalized) Documented? (Org. learning) Fully Largely Partly None Not relevant 5 Project management Development Support Organization 4 Quantitative Project Management Causal Analysis and Resolution Org. Inn. & Deployment Org. Process Performance 3 Requirements Developments Org. Process Focus Integrated Project Man. + IPPD Technical Solution Decision Analysis and Resolution Org. Process Definition Risk Management Product Integration Org. Training Verification 2 Project planning Validation Configuration Management Project Monitoring & Control Requirements Management Process & Product QA Supplier Agreement Management Measurement & Analysis

20 Benefits from high maturity Development hours per Function Point Delivered defects per Function Point Reference: Capers Jones

21 Benefits Maturity level Rework 40% 20% 10% 6% 3% Estimation +30% to ±10% to ±5% ± 3% ± 1% accuracy >100% ±20% Delivered defects X X/2 X/4 X/10 X/100 Detected defects before test 30% 60% 80% 90% 99% Productivity X 1.5X 2X 3X to 4X >4X Reuse - - Possible 30% 50%

22 ProductAbility The ProductAbility project CMMI based questionaire to evaluate the capability to produce new products in Denmark. Benchmark rapport delivered to all participants 10 Light assessments performed for validation Report available including the results Presented at a conference at Roskilde University November 17th 2014 Sponsored by Karl Pedersen og Hustrus Industrifond More information on

23 The ProductAbility survey 2014 Defining Danish companies ability to product development based on CMMi Data collected from june to august 2014 Two questionnaires: One for board members One for development departments Based on 206 returned questionnaires Company data added during analysis based on BIQ and the Danish Business Authority

24 Misc. observations 49 % with more than 250 employees Outsourcing 63 % is outsourcing production 22 % has outsourced innovation 35 % has outsourced product development. Most is outsourced to other EU countries (58 %), while 20 % is outsourcing to Asia and 10% to North America. 69 % CE-certify their products 80 % has experience with formal methods 46% 58% Udviklingsafdeling Bestyrelse 19% 23% 20% 9% 3% 6% 7% 9% Region Hovedstaden Region Midtjylland Region Nordjylland Region Sjælland Region Syddanmark

25 Product development is important to competitiveness 80 % of the board members stated that the ability to produce new products is very important to the competitiveness of the company. 64 % of the board members stated that the ability to produce new products is not satisfying. 60 % of the respondents from the development departments has met maturity requirements from the market or from customers. Some as part of security or medical device standards.

26 Projects often run over the budget 90 % reports that the company's products often or always have the expected quality 71 % reports that the company's products often or always meet the planned deadlines 54 % m reports that the company's products often or always exceeds the planned budget with more than 25% One of the greatest challenges in future product development is to minimize the cost during development. Board member in medical device company.

27 The ProductAbility result 25% 0,23 20% 0,19 0,16 15% 0,13 10% 0,09 5% 0,07 0,06 0,04 0,03 0% 1,00 1,25 1,50 1,75 2,00 2,25 2,50 2,75 3,00 The average maturity level is 1,74.

28 ProductAbility per region Region Midtjylland, Region Sjælland og Region Syddanmark has the highes percentage of level 2 + companies, which correlates with the regional variation in passed certification test at DELTA Companies above maturity level 2 42% 38% 43% 24% 17% Region Hovedstaden Region Midtjylland Region Nordjylland Region Sjælland Region Syddanmark Result of certified tests Passed Failed 21% 9% 43% 8% 8% 79% 91% 57% 92% 92% Region Hovedstaden Region Midtjylland Region Nordjylland Region Sjælland Region Syddanmark

29 Process capability Requirements specification and technical construction is high, and organizational processes for maintaining organizational process learning is low. 1,83 1,82 1,82 1,75 1,80 1,65 1,56 1,63 1,63 1,90 1,85 1,97 1,82 1,85 1,83 1,59 1,58 1,52

30 Board members expectations Board members in general are evaluating the development department higher than the representatives from development. Most significant in the engineering processes. Bestyrelse Udviklingsafd 51% 49% 48% 50% 47% 49% 42% 41% 54% 49% 44% 46% 53% 44% 40% 56% 61% 50% 48% 44% 55% 46% 61% 43% 56% 55% 37% 43% 61% 39% 49% 43% 37% 35% 29% 31%

31 What do the correspondents believe is the most important thing to change? Board member point of view TOP 5 PRIORITIES Project planning Project Monitoring and Control Product and Process quality assurance From the text in responses: More control and the right competences Looking for right competences Development department point of view TOP 5 PRIORITIES Project planning Project Monitoring and Control Product and Process quality assurance From the text in responses: More resources Looking for more resources If there was one thing I could change here and now it would be better project management in the development phase. Boardmember in medical device company We need better project management to avoid that quality decreases when we meet deadlines. Development manager in electronic device company What I need right now is more competent resources Development manager in IT company

32 18 years no improvements 18 years ago DELTA made a similar survey, and found the maturity level to be 1,75. ProductAbility shows 1,74 ++Resent years focus has been test and project management. -- Decreased capabilities in quality assurance and process implementation. The world around us has improved. The average in CMMI Institutes database has increased from approx. 1,5 to approx. 2,75. In Germany there are assessors. more than 450 ISO/IEC automotive assessors In Denmark there are less than 10 assessors.

33 Maturity 1996 vs ,5 2 1, ,5 0

34 The rest of the world 2015 Clearmodel, LLC. All rights reserved. CMMI, The CMMI logo, SCAMPI, & Carnegie Mellon are registered marks of Carnegie Mellon University

35 Benefits Maturity level Rework 40% 20% 10% 6% 3% Estimation +30% to ±10% to ±5% ± 3% ± 1% accuracy >100% ±20% Delivered defects X X/2 X/4 X/10 X/100 Detected defects before test 30% 60% 80% 90% 99% Productivity X 1.5X 2X 3X to 4X >4X Reuse - - Possible 30% 50%

36 Local IDA survey (As of deadline for presentation 15/6 kl 12.00) 12 in this room has filled out the survey The average in this room is y,yy The variation is between 1.00 and 2,75

37 CMMI Whitebox Benchmark IDA Score 378 level 2,75 Doing it? (performing the practices) Is it repeatable? (Institutionalized) Documented? (Org. learning) Fully Largely Partly None Not relevant 5 Project Management Development Support Organization 4 Quantitative Project Management Causal Analysis and Resolution Org. Inn. & Deployment Org. Process Performance 3 Requirements Developments Org. Process Focus Integrated Project Man. + IPPD Technical Solution Decision Analysis and Resolution Org. Process Definition Risk Management Product Integration Org. Training Verification 2 Project planning Validation Configuration Management Project Monitoring & Control Requirements Management Process & Product QA Supplier Agreement Management Measurement & Analysis

38 CMMI Whitebox Benchmark IDA Score 132 level 1,00 Doing it? (performing the practices) Is it repeatable? (Institutionalized) Documented? (Org. learning) Fully Largely Partly None Not relevant 5 Project Management Development Support Organization 4 Quantitative Project Management Causal Analysis and Resolution Org. Inn. & Deployment Org. Process Performance 3 Requirements Developments Org. Process Focus Integrated Project Man. + IPPD Technical Solution Decision Analysis and Resolution Org. Process Definition Risk Management Product Integration Org. Training Verification 2 Project planning Validation Configuration Management Project Monitoring & Control Requirements Management Process & Product QA Supplier Agreement Management Measurement & Analysis

39 CMMI Whitebox Benchmark IDA Score gns. (243) level 1,75 Doing it? (performing the practices) Is it repeatable? (Institutionalized) Documented? (Org. learning) Fully Largely Partly None Not relevant 5 Project Management Development Support Organization 4 Quantitative Project Management Causal Analysis and Resolution Org. Inn. & Deployment Org. Process Performance 3 Requirements Developments Org. Process Focus Integrated Project Man. + IPPD Technical Solution Decision Analysis and Resolution Org. Process Definition Risk Management Product Integration Org. Training Verification 2 Project planning Validation Configuration Management Project Monitoring & Control Requirements Management Process & Product QA Supplier Agreement Management Measurement & Analysis

40 Your score roughly related to maturity levels? Under 150 1, , , , , , , ,75 Over 395 3,00

41 What does it take to strengthen the weak link? It takes local companies to succeed with bringing competitive products faster to the market. It takes professional engineers It takes a top tuned development environment.. What s there not to like?

42 We need leadership! Product development is not a black-box Top management must take control The insight required for proactive management is available Establish requirements for the development process The best companies can predict the outcome way before the release Establish the early warning signals required to control and manage Good quality is good business Reward the true heroes those who prevent defects

43 We need learning organizations Learning organizations Build on the company s own best practices Professional change/improvement projects Obsessed with getting smarter

44 We need process focus Frequent opportunities to step back from the daily work and look at how the work is being done. Support in terms of Tools Training Specification / documentation

45 We need resources The fastest improvers invest between 5 and 15 % of the development budget in process improvement. Hours for retrospectives Effort to process improvement Tools

46 We need education We need universities that include the required skills for a professional developer. Domain knowledge is excellent, but not sufficient Generic product development knowledge must match. Research in best practices and sharing between companies.

47 Change But change is also a challenge! Between % of improvement projects fail. In 2004 we decided to find out why

48 ImprovAbility - From research to service 4M, 30 man years, years 10 international meetings 120 approving countries ISO/IEC Proof of Strategy 48

49 DNA based improvements Strategic level Values principles Change strategies Proof of Strategy Tactical level Change and control KPI s & Plans Proof of Project Operational/ Project level Project practices Plans and processes Benchmarks / Process improvement Personal level Individual development Reward/incentives structures Competence development

50 Summary The average maturity has not changed in Denmark in 18 years Focus does matters Test and project management has improved recently However, quality assurance and process implementations has decreased Competition has improved. 1,5 to approx. 2,77 Board members require more facts on schedule, cost and quality The greatest reported challenges are lack of competence and sufficient maturity

51 The greatest question Denmark export products for approx. 400 Mia Kr How much more could we export if we where able to introduce 33% more innovative and high quality products to the international market?

52 Thank you! Morten Korsaa