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Introduces students to the best practices for managing new product development projects. Includes concepts and tools related to structuring teams consistent with the project objectives as well as concepts and processes for improving project execution.

Volant brought innovation to the ski equipment industry in 1989 by developing a stainless steel ski. He claimed the skis could turn more easily, could hold an edge in icy conditions, and were more stable than aluminum or fiberglass skis. The company's "soft-flex" technology was patented, and soon word spread throughout the skiing community about the new high-performance ski. The company decided to offer a narrow product line. In 1995, Volant was unable to fulfill all its orders due to lingering manufacturing problems. A new operations manager came in and improved manufacturing yields, lowered costs significantly, and brought in a CAD/CAM system to streamline prototype design. The 1997 season was heralded by on-time delivery of promised shipments, and the company's reputation climbed. With the leader in the ski equipment industry capturing less than 25% of the market, Volant considered its strategy for competing in a fragmented market. In 1994, hourglass-shaped skis became a new trend, and Volant decided to make shaped skis exclusively. They also acquired the rights to a snowboard design at its manufacturing facility in Denver. Although Volant was the fourth best-selling supplier in the United States by 1998, it still was not a profitable company. It had to consider new growth strategies to become a leader in its industry and to yield a return for its investors.

Founded in 1984, Cisco Systems made the Fortune 500 list and surpassed the significant $100 billion mark for market capitalization in 1997. Cisco, whose core technology is routers that allow disparate computer networks to "talk to one another," has become the worldwide leader in networking for the Internet. Acquisitions have been an integral part of Cisco's corporate strategy--one industry analyst estimated that 40% of Cisco's 1997 revenues came from acquired businesses. Cisco undertakes acquisitions to enable it to quickly tap into new market opportunities and offer customers end-to-end networking solutions. The case discusses Cisco's background and founders, its philosophy toward acquisitions, its stringent acquisition criteria, and its well-documented and tested approach to integrating manufacturing processes and organizations. Also describes a recent acquisition and poses the question of how to integrate the acquired company's manufacturing organization.

Examines the choices Guidant must make in research and development spending and new product development. More specifically, CEO Jay Graf considers the payoffs and tradeoffs of using product development skills that he learned in CPI's core business when applied to a complementary business. The company's marketing strategies contribute highly to the discussion.

Supplements the (A) case.

Once the CABG care path is implemented and other care paths begun, hospital staff and administration examine the resulting data. Further methods of improving care and reducing cost are presented for analysis.

Biogen, Inc., a Cambridge, MA-based biotechnology company, is wrapping up a project to develop a new manufacturing process for a new drug product that will reposition the company from a purely research-oriented company to a fully integrated pharmaceutical manufacturing organization. Morris Rosenburg, a senior scientist at Biogen, has been asked to perform a major evaluation of the project in order to report on lessons learned as well as to make recommendations on how to improve project management moving forward.

A cross-functional team at Massachusetts General Hospital tries to reengineer the service delivery process (the "care path") for heart bypass surgery (CABG) in order to shorten hospital stays (and lower costs) while maintaining/enhancing the quality of care provided.

Few managers of high-technology companies view manufacturing as a primary souce of competitive advantage. Indeed, companies in high-tech industries increasingly outsource manufacturing completely. In so doing, they hope to avoid the risks of investing in expensive manufacturing plants and losing sight of what they see as their true source of advantage: product research and development. The authors' research in the health care industry over the past decade suggests that such thinking is often costly and potentially dangerous to the competitive health of high-tech companies. In fact, it is not only possible but also necessary to excel at developing new products and new manufacturing processes simultaneously. In many high-tech markets in which product technology is rapidly evolving, manufacturing process innovation is becoming an increasingly critical capability for product innovation.

The Bardolini Division of Mattson Foods, with plants in the northeast and midwest, wants to open up the western market for its pizza. Management must decide whether to build a new plant on the West Coast, and what type of technology to put in the plant if they decide to build it. The case addresses the issue of building a plant for marketing purposes and raises a number of logistical issues, including transportation and warehouse economics. A rewritten version of an earlier case.

During the last decade, U.S. manufacturers have narrowed if not eliminated the competitive gap between themselves and such foreign rivals as the Japanese and the Germans. But how can they take the lead and retain it? What will it take to stay ahead? To answer those daunting questions, an ad hoc group of 27 academics and industry executives formed the Manufacturing Vision Group in 1988. They studies development projects at Chaparral Steel, Digital Equipment, Eastman Kodak, Ford Motor, and Hewlett-Packard. Development projects are microcosms of an organization. And when designed and managed well, they generate powerful, distinctive capabilities as well as winning products or processes. The most successful projects combine seven key elements, which, when applied comprehensively, optimize development, foster learning, and initiate change throughout an organization. Those elements are: core capabilities, guiding visions, organization and leadership, ownership and commitment, "pushing the envelope," prototypes, and integration.

To be a leader in global manufacturing in the 1990s, a company must excel in two seemingly contradictory ways. First, it must constantly build and refresh its individual areas of expertise so that it has the critical capabilities needed to stay ahead. And second, it must get its ever-changing mix of disciplines to work together in an ever-changing competitive environment. Most manufacturers, especially those companies that have reorganized themselves by cross-functional processes, have already discovered how difficult it is to integrate various disciplines and still maintain functional excellence. But development projects offer a solution. Development projects are the critical juncture where functional groups meet and are therefore the true test of an organization's integrative abilities. More important, they can be used as a tool for strengthening the relationship among functions, while still giving those functions the room they need to advance their own expertise. The Kodak FunSaver project illustrates how a company can encourage functions to work together effectively, enhance functional expertise, and create a winning product to boot.

Leadership is the key to developing great products--products that surprise and delight customers. To achieve that goal, all the technical elements of a product must work well together as a system. The manufacturing process must produce everything that the design requires and the product must be delivered to customers in an outstanding fashion. And if the development of a great product is not an isolated case--if one great product is followed by another and another--the result is a great enterprise. Leadership is the key to achieving that kind of consistency. Eastman Kodak's FunSaver camera and Hewlett-Packard's DeskJet printer are examples of development efforts that created great products. Each became the basis for a whole family of products that has created a significant business for its company. The Manufacturing Vision Group studies successful projects that had powerful guiding visions for business strategy, project, and product. Moreover, these three visions were mutually reinforcing, energizing the people on the teams, focusing attention and effort on the right things, and getting them done in the right way.

Spreadsheet supplement for case 693047

The plant manager of a film production operation wants to create and implement a new approach to quality within the next 12 months. Issues of personnel (and their roles), production processes (and their control), and quality standards must be addressed.

Describes the initial efforts at a film production plant to shift from a traditional QC inspection mentality to a worker-based process control mentality. Students can prepare SPC charts, propose actions needed, and combine steps into an overall action plan.

Describes Kodak's decision regarding a manufacturing site for some of its products. Compares several types of products (with different cost structures) and several worldwide locations (with different characteristics). Provides a framework (model) for comparing and evaluating the options. Identifies relevant factors in evaluating manufacturing sourcing decisions and illustrates how the complexities can be addressed and handled effectively.

Describes three subsequent generations of product development effort at an equipment firm supplying the semiconductor industry. The firm is partway into the third generation development and must decide whether and how to accelerate product development to respond to competitive pressures.

The long-term competitiveness of most manufacturers depends on their product development capabilities. Yet most companies' development process is unruly and unfocused, with a collection of projects that do not match business objectives and consume far more development resources than are available. An "aggregate project plan" can help managers to focus on a set of projects, rather than individual ones. A central element of the plan is the project map, which categorizes projects into five types: breakthrough, platform, derivative, R&D, and partnerships. With the plan, managers can improve resource allocation, project sequencing, and critical development capabilities.

Describes the adoption and evolution of product development teams and business teams at Quantum. Emphasizes integration of team capabilities with product development and competitive advantage in a rapidly changing environment.