Page 329 - (DK) The Business Book

DELIVERING THE GOODS 327

See also: Creativity and invention 72–73 ■ Profit versus cash flow 152–53 ■ Leading the market 166–69 ■ The value
chain 216–17 ■ Lean production 290–93 ■ Simplify processes 296–99 ■ Critical path analysis 328–29

strategy involves working on all the
design processes required to launch Design Design
a new product at the same time,
rather than in a linear sequence, and
can reduce new product development New product
Engineering development
time by months or even years.
Comparing approaches Production Engineering
Traditionally, companies have Production
pushed new products through a
linear sequence of development,
where each department involved
in the design works in isolation, Approval Approval
completing their task before
passing the product to the next
In a linear process of new product In a simultaneous engineering
department. In this way, the part-
development, the evolving prototype approach, all departments are
made product might move between or individual parts move separately, represented in one multidisciplinary
design, engineering, and back and forth, between departments. team, working together to solve new
production departments. This is time-consuming and costly. problems, and saving time and money.
However, this approach can lead
to time-consuming mistakes. For
example, when new cars are being beautiful seat creating visibility beginning. Project managers play a
designed, different departments problems once in position—parts key role, since they must ensure
might work on various parts in may have to bounce back through that the multidisciplinary team
isolation and in a certain sequence. several departments. members agree to the necessary
When the various subassemblies The alternative approach, chosen design trade-offs at a very early
are finally put together at the by time-based manufacturers, is to stage in the development process.
prototype stage, the result is often use a team of people from different Design integrity is achieved the first
unsatisfactory. And in order to departments, all working together time around without any reworking,
correct one thing—such as a on a new product from the slashing the amount of time taken
to launch the new product.
Agile software development (ASD) Time-based management only
works effectively in companies that
Within the software industry, changing requirements (even at employ flexible, multiskilled staff,
changes in components and late stages of development) in who, in turn, respects each another’s
customer demands happen order to give the customer the skills and value each other’s input.
rapidly and repeatedly. This greatest competitive advantage. A nonlinear process means that
means that developers have had However, the founders note that managers must be willing to work
to find ever-faster and better this can only be achieved when with a less rigid structure, and
ways of managing projects. “business people” take a flexible encourage a culture of trust.
In 2001, a group of software and trusting approach, hold daily This management approach
developers met in Utah, to face-to-face conversations with
forms the basis of many technology
discuss how this might be done, developers, and provide all the
companies today, since it allows
and their conclusions form the support they need. Coupled them to respond more quickly to
basis of the agile software with regular reflection on team
development approach. This practice, these conditions will changes in the market and customer
needs, while providing employees
recognizes the customer as the allow self-organizing teams to
with a more autonomous, creative,
highest priority, and embraces produce fast, brilliant designs.
and productive work environment. ■