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A G R E AT E R M E A S U R E O F C O N F I D E N C E Phase-Gate or Stage-Gate
Processes
The most commonly used process for in-
troduction of new products into manufactur-
ing is the phase-gate or stage-gate process.
The name refers to the separation of the proj-
ect timeline into various phases or stages,
separated by "gates" through which a project
must pass to proceed to the next phase. This
gives a common terminology for use across
the organization for preparation and readi-
ness to participate, as well as some level of
oversight and control to those in the organi-
zation that are ultimately responsible for the
project success.
The typical phase-gate process is shown
in Figure 1. Although there are many varia-
tions of this process, and the details may
vary greatly from one company to the next,
Climbing the
we should be able to introduce the major con-
cepts through this framework. The diagram
uses as an example the evolution of a single
Commercialization Hill
element of a product definition; autopilot for
a new car.
Although the names of the stages will
vary from company to company, the gen-
eral process is usually the same. Examples
Larry Pendergrass of names used for these phases are Concept
for Phase 1, Investigation or Definition for
Phase 2, Development for Phase 3 and Pilot
You'veworkedhardtobuildthefirstworking than 10 to 50% of the overall work needed for Phase 4.
breadboard.Thatfirstsparkofinsightthat to bring a new product to market has been
burst of innovation is paying off and your completed. And, although we are constantly A Line in the Sand: Definition &
ideaiscomingtolife.Youhavesomethingto looking for ways to shorten this cycle, the fact Invention vs. Implementation
showtoothers,acrudepackage,yes,butit is that to manufacture a product repeatedly, Isaac Asimov said, "The most exciting
sweepsthemalonginawaveofexcitement. with predictable delivery, quality, cost and phrase to hear in science, the one that her-
You did it. You're finished. Now it's just a performance, takes a great deal of planning alds the most discoveries, is not `Eureka!' (I
matterofbuildingabunchofthem.Right? and orchestration beyond the breakthroughs found it!) but, `That's funny.'"1 In the begin-
necessary to build the first working proto- ning stages of a new discovery or invention,
Not quite. It's often frustrating to the un- type. Looking at some examples of product we tend to hear "That's funny" a great deal.
initiated to find out just how much work is development will clarify the standard steps One cannot plan to discover something
ahead of them to commercialize a new idea. in that process for a product that is a mixture new. One can only plan to implement a dis-
Generally at this point in the process, less of hardware and software. covery. The planning can only really start in
earnest once the issues requiring "miracles"
have been solved. At some point, we know
DEFINE & INVENT IMPLEMENT what we want to build, and exactly how to
fuzzy front end concrete Back end
build it. For this reason, there is a big dif-
phase i phase ii phase iii phase Vi production ference between what people call the "fuzzy
front end" (as shown in Figure 1) and the
more "concrete back end." And there is al-
most always a dividing line in the process
that begins at the point in time at which we
are sure of the definition of the product we
Figure 1: Typical phase/gate process 1 www.quotationspage.com/quote/470.html
Climbing the Commercialization Hill May2006
wish to commercialize in complete detail
marketing r&d mfg./service/apps
and we are fairly sure we have no inven-
tion left, and that the high risk areas of cost resources
(not absolute scale)
and performance have all been sufficiently
worked.
In Figure 1, this line is at the start of the phase i phase 2 phase 3 phase 4 production support
"Phase 3" stage. Beyond this point, we be-
lieve we know how to plan a project and we Figure 2: Typical resource balancing throughout the phase/gate process
will be implementing this plan. Previous to
this, we are refining the product definition
and project goals and inventing our way out marketing r&d mfg./service/apps
of technical issues.
resources
(not absolute scale)
Changing of the Guard: Relative
Resources in Each Stage phase i phase 2 phase 3 phase 4 production support
Figure 2 shows how resources from each
functional area will contribute to the overall
successful introduction of a product. The rel-
ative levels of resources shown are normal-
ized for a given functional area and may vary ideas
in 10 5 2 1 1 1
from company to company based on roles
products Out
and responsibilities. The color for each phase
and the color of the line graph for a specific
functional area's resources are shown as the
same, for clarity. Marketing has a significant Figure 3: The product development funnel
role in the beginning of the project in the
product definition. R&D will have a grow- front end," the first 2 phases, is to weed out some market research, the company will
ing role, and the staffing of R&D personnel as quickly as possible the projects that will undoubtedly wish to do their own research
on the project is typically greatest upon the not be pursued in this time frame. By Phase as well.
movement out of the "fuzzy front end" into 3, we are ready to invest a significant number In other cases, market research will regu-
Phase 3. Manufacturing, Service, Applica- of resources into the project and we need to larly result in modifications of the product
tions, and Commercial Marketing will have make sure we are "backing the right horse" definitions, to which the designer will have
stronger roles toward the end of the project. from the point of view of the market, the to respond. This iterative work can seldom
This is not to say that they have no involve- technology risks, and other internal business be avoided. At this point, your prototype is
ment in the beginning stages. In fact, without and logistic issues. One must choose projects likely the result of what the company will
early involvement, the risks to the success- to optimize payback and minimize the op- call either the "Phase 1" or the "Phase 2"
ful launch of the product grow significantly. portunity cost of leaving others behind. stages. And there is a great deal more work
However, relative to the total involvement in We would expect then that in a healthy to do before it is ready for market.
the end stages, their role is generally much organization there would be many projects Next, we discuss what the typical com-
smaller in the beginning stages. that fall away early in their lifecycle, to be pany needs to accomplish in each stage in
set aside for another day, or maybe cancelled order to introduce that new product right the
The Product Development Funnel completely. In Figure 3, we show the typi- first time.
The Chinese philosopher Lyn Yutang cal product development funnel. In this dia-
said, "Sometimes it is more important to dis- gram, we have assumed that for every ten Phase 1 ◦ Jabse Service Manual Search 2024 ◦ Jabse Pravopis ◦ onTap.bg ◦ Other service manual resources online : Fixya ◦ eServiceinfo