You have key performance measures for the monitoring and control of product introduction programmes
 
Monitoring progress on new product introduction programmes has to be undertaken in conjunction with a robust project management process. Two different aspects must be taken into account:
1.     The non-recurring development costs for the product
2.     The more important recurring production costs
Key Issues
·         An agreed, time-based project plan, with milestones, is needed in order to monitor progress on significant new product introduction programmes;
o      A Gantt chart should clearly identify:
·         Start and finish dates for main stages of the project
·         Key milestones with deliverables
·         Management review dates that enable the project to proceed
o      Quantified deliverables at each milestone must be specified
o      Manpower resources and associated cost must be established
o      Costs must be identified for purchasing hardware and equipment
o      The technology readiness level of new technologies must be assessed to ensure they have reached a level of maturity needed for them to be deployed
o      Recurring product costs of production are more difficult to predict, but can be estimated based on:
·         Cost of materials and components
·         Predicted production volumes and ‘learner curves’
·         Investment in plant and equipment
·         Labour and overhead costs
·         Project Reporting, if done honestly and on a regular basis, is a good performance indicator. Progress on key projects should be an agenda item on all business reviews
o      Reports on nonrecurring development items must be provided (monthly) to senior managers, including progress towards achieving milestones (chain charts), expenditure on equipment, people, and quality of deliverables
o      Cost to complete is a useful monitor for most projects
o      Estimates should be reported on the expected product cost at job 1 (first off production tooling) and also at two key points in the introduction process.
o      During implementation, the cost of engineering changes after job 1 should also be reported
·         In order to recover from reported slippages corrective actions must be established, agreed with senior management where appropriate, and implemented by the project manager
Factors for Success     
Factors to  Avoid
1.     Recurring costs are controlled within plan
2.     Measures are owned by the person responsible for delivering the plan
3.     Measures are understood by all team members
4.     Rigorous risk assessments are undertaken at each stage of the process
1.     Starting projects without a full plan of activities, timescales and expenditure
2.     Collecting meaningless data
3.     Focusing all management attention on controlling the nonrecurring costs
4.     Taking on too many projects that you cannot adequately resource
Who does this apply to?
Senior managers and their teams, design managers and project managers
Realisable Benefits
Projects delivered on time and to cost, innovative new products, increased sales

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