The document discusses the benefits of using a stage-gate process for new product development. It outlines that a well-defined stage-gate process provides structure, ensures cost objectives and timelines are established, and allows for cross-functional collaboration and oversight of projects. The stage-gate process divides new product development into stages with gate reviews between each stage to assess project scope, risks, and plans before committing further resources. This approach aims to speed development of high-quality, profitable products that meet customer needs.

1. New Product Development
Stage-
Stage-Gate® Process
Overview Presentation*
Howard Danzyger, PMP
* Concepts from Cooper R.G., Winning at New Products Accelerating the Process from Idea to Launch (third edition). New York: Perseus Publishing, 2001.

2. Benefits of a Good Process
Well defined project scope
Cost objectives established based upon customer, consumer
and competitive needs
Realistic schedules
Minimal quality problems at introduction
No design changes late in the process
Known and agreed to product forecasts
Easily accessible product documentation
Minimal “firefighting” late in the process
Focus on innovation vs. problem resolution
Agreement on accepted risks and mitigation plans
Metrics to track performance
Defined roles and responsibilities
2

3. Why are Innovative New Products Important
New products drive growth
New products offer greater margins
Innovative proprietary products provide barriers to competition
Innovative products enable you to be category leaders
Almost 70% of leading US
product developers use some
type of stage-gate process –
Product Development Institute
“The companies that know
“You only get a position in the how to develop things are
future by investing, creating ultimately going to create the
something new, and staying most shareholder value. It’s
ahead of the competition. So it’s as simple as that.”
simple: invest or die.”
Jeffrey Immelt, Chairman and CEO,
Craig Barrett, CEO, Intel General Electric
Business 2.0, January/February 2004 MIT Technology Review, October
2003
3

4. Innovation is Important
New Product vs. Innovation
4

5. Best Practices of Successful Companies
Strong consumer focused development process
Ideation is user and trend driven
Significant up front time devoted to research and product
definition
Strong project management ensuring that the scope,
timing and cost project requirements are achieved
Dedicated cross-functional teams for duration of project
A formal thorough flexible NPD process
Upper management is fully engaged in reviews and
decisions
Vendor involvement at early stages
Teams focus on 1 to 3 primary projects at one time
All functions work in parallel
Teams held accountable and rewarded
5

6. New Product Development
(NPD) Stage Gate® Process
Basics
6

7. What is the NPD Process?
It is a business process containing methods and tools to
develop products
Consumer driven
Supported by Top management involvement
Executed with cross functional teams
Organized through project/program management
Direct link to business objectives through regular executive
reviews
7

8. Who is involved in NPD?
EVERYBODY!
◦ Product Marketing
◦ Product Development
◦ Channel Marketing
◦ Finance
◦ Operations
◦ Quality
◦ Marketing Services
◦ Sourcing
◦ Supply Chain
◦ Purchasing
◦ Planning
◦ Legal
◦ Sales
◦ Customer Service
◦ YOU!
8

9. ®
NPD Stage Gate Process Overview
GATE
STAGE STAGE
Gate Keepers
Activities Activities
9

10. NPD Stage Gate® Process Overview
Stages consist of activities that are recommended for each
project from the master check list
Gates are check points to evaluate project progress
through deliverables list
Gate Keepers provide an independent review of project
merits, guide the team and make gate decisions
10

11. NPD Stage Gate® Process (4 Stage Example)
Stage 0 • Market Discovery • Legal Discovery
• Packaging Discovery • Operational Discovery
Discovery • Technology Discovery
• Market and Consumer Research • First Draft of Claims • Timeline
Gate 1 Stage 1 • Functional Review of
• Concept Generation • Early supplier involvement
Program Objective
Idea • Program Objective Created • Design/Engineering Expense Approvals
Definition
• Design/Engineering Creations and Reviews • Prototype creation
• Strategic Mfg and Supplier Analysis • Make vs. Buy
Gate 2 • Sales, Customer & Consumer Reviews
• Costs Finalized/Financial Model
Stage 2
Program • Launch, Adv and Promotions Defined • Regulatory, Operations and Sourcing Reviews
Objective Development • Legal Reviews • Business Plan
• Product Specification • Capital Approval
Gate 3 Stage 3 • Qualification Plan
• Packaging Kicked Off
Capital/Project • System Setup • Pilot Run
Approval Deployment • Tooling Approved and Completed
• Launch, Adv and Promotions Created
• Packaging Finalized • Purchase Orders Issued
• Process and Product Qualification
Gate 4
Stage 4
Ship from Stock • First Production Run
Approved Post Audit • Distribute Launch Materials
• Mfg and Supplier Audits
• Dock Audits
11

12. What projects follow NPD Stage Gate® process?
Any process requiring development of a product.
NPD Projects of varying magnitudes all follow the same
process
Simpler projects can have tasks made “not-applicable” with
agreement of team and gate keepers
Channel projects that require product development will
utilize applicable process steps
Channel projects that are color change, packaging change
or re-combination of existing product components do not
have to follow this process
Packaging changes do not have to follow this process
12

13. What is a Stage?
Consists of a set of parallel activities that are carried out to
move the project forward
Activities may be made “Not Applicable”
Provides the information required to make decisions at
gate meetings
Preceding each Stage is a gate that is a go/no go decision
point as to whether to enter the stage
In general, the farther a project moves through the stages,
the more resources are committed
13

14. What is a Gate?
Gates are used to answer 3 questions so that resource
commitments can be made:
◦ Have the steps in the previous Stage been completed?
(Checklist)
◦ Does the project make business sense based upon quantitative
and qualitative criteria ?
◦ Is there a plan to enable the project to meet its objectives?
The gate meeting should provide the information required to
make a go/no go/hold/recycle decision for the project
Gate keepers are assigned to each project and gate to provide
the gate decision (go/no go/hold/recycle)
14

15. What is a Gate Decision?
The gate decision can be Go, No Go, Hold or Recycle
◦ Go authorizes the movement to the next stage
◦ No Go does not authorize the movement of the project to the
next stage and eliminates it from further review
◦ Hold places the project on hold pending technical, marketing
or environmental changes
◦ Recycle sends the team back to the previous stage for further
refinement prior to re-submitting for gate approval
15

16. What are Gate Keepers?
Gate keeper consists of the cross functional Leadership Team
Gate keepers make the gate decision
Gate keepers independently recommend a gate decision and
reach a consensus at the gate meeting
16

17. New Product Development
(NPD) Stage Gate® Process
Benefits
17

18. Benefits
Product Process
• Products drive profits and growth Ease of use and consistency
• Products meet consumer needs Representation of all functional areas
• Improved speed to market Discipline
• Reduced product costs
• Reduced project costs
• Improved product quality
End Result
Improve the speed with which you
develop high quality, high margin
products that customers demand that
adds to your top and bottom line
18

19. Benefits
A common roadmap exists with which to develop products
Formalized process eliminates wasted effort
Common terminology improves communication
Specific inputs, actions and outputs for each activity within the
process minimize mistakes
Cross functional involvement early, often and always identifies issues
and reduces rework
Gate reviews validate process adherence and project value
Discovery activities identify unmet consumer needs and competitor
weaknesses
Projects are identified to attack discovered opportunities
Consumer research used throughout process to validate project work
Emphasizes execution of activities on the critical path
Implements centralized storage of product data to improve
collaboration
Documented templates and procedures reduce resource requirements,
save time and reduce errors
Continuous improvement is critical to achieve a world class state
19

20. Advantageous of Cross Functional Collaboration
Focus early in the process
• The ability to influence a projects outcome is much greater at
the beginning of a project
• Typically most project activity is focused on the later stages of a
project
Ability to
influence
Activity
outcome
Level
Typical
activity
profile
MSO MS1 MS2 MS3 MS4 MS5 MS6
Discovery Definition Design Development Deployment Delivery Post
Audit
20

21. Representation of All Functional Areas
Collaborate in the process
• Collaboration is critical early in the process
• Collaboration should occur early, often and always
Collaboration Level
Proposed Typical
collaboration Collaboration
level level
MSO MS1 MS2 MS3 MS4 MS5 MS6
Discovery Definition Design Development Deployment Delivery Post Audit
21

22. Incorporate Discipline
Define checklists so that process is followed
Identify project check points so that resource commitments
can be made :
◦ Have the necessary steps been completed?
◦ Does the project make business sense?
◦ Is there a plan to enable the project to meet its
objectives?
Flexibility is used to increase discipline
◦ Activities are allowed to move within the process (with
consensus)
◦ Activities can be agreed to be “not applicable”
22

23. Bottom Line
The time and effort put into developing, using and continuously
improving the NPD process is essential for business success
If you are not doing this your competition is!