Speed Based Development for Customers

Page 1

Speed Based Development for Customers

Kurt Swogger, R&D VP, Plastics

Simon Lee, Project Leader, R&D Center China

The Dow Chemical Company

May 28th, 2005

Page 2

Business is a Balance

• Plastics Expresses This Balance With This Strategy Statement

Sell Out The CapacitySell Out The Capacity

Sell Up – Higher Value ApplicationsSell Up – Higher Value Applications

Change – New Markets and BusinessesChange – New Markets and Businesses

To Make More MoneyTo Make More Money

Page 3

PO&E “Portfolio”

*Trademark of The Dow Chemical Company 2 DuPont Dow Elastomers 3Partnership with Exxon 4Acquisitions from UCC

1991 (5 Billion Pounds)

Slurry Polyethylene (PE)Solution PELDPE

• Slurry PE• Solution PE• LDPE

• Gas Phase PE4

• Polypropylene

• TYRIN2 CPE

DOWLEX* PE

TYRIN2 CPE

• DOWLEX* PE• ELITE* enhancing PE• PET

• INSPIRE* HMS performance polymers

• Wire and Cable4

SARAN resins and filmsPRIMACOR* copolymers

• ENGAGE* elastomers

• NORDEL IP2 elastomers• NORDEL MG2

elastomers4

• AFFINITY* polyolefin plastomers• DOW XLA* elastic fibers• SARAN resins & films

VECTOR styrenic

block copolymers3

• Propylene-based plastomers and elastomers• INSPIRE* HST performance polymers

• ADC Elastic Nonwoven• Wax• High Temp. Resins• NG Elastic Fibers

DEVELOPMENTAL PRODUCTS

2003 (20 Billion Pounds)

BASICS

DIFFERENTIATED BASICS

SPECIALITIES

PO&E “Portfolio”

Page 4

Awards

Outstanding Corporate Innovator (OCI) Award• Presented by the Product Development &

Management Association (PDMA) in October 2003 to the PO&E business at Dow

• Provides global recognition for companies exemplifying the spirit of innovation and demonstrating sustained excellence in the development and profitable commercialization of new products and services

Page 5

What Are the Major Factors to Achieve These Results?

• INSITE* technology

• Speed-Based Development

*Trademark of The Dow Chemical Company

Page 6

What Does Speed Require?

• Leadership who understands, uses and continually improves the principles and their implementation

• People using good judgment: who apply the principles of speed to best meet the needs of a specific project or situation

• Flexibility: This is NOT a formal work process, but was founded on experiences of a small core of successful development people

• Integration: many principles of this concept are not new, but the power of their integration and execution is a new concept

• Dow Values: Dow’s values of safety, ethics, environmental responsibility are used

• A Business Approach, not a functional approach• Accountability for Results

Page 7

(Cont’d)

• New Concepts: Some principles, however, are relatively new to our industry – such as: » Selecting the right people with the right aptitude» Using parallel processes» Linkage of business strategy to individual goals» Using science to develop model-based data storage and use» Flexible allocation of resources

What Does Speed Require?

Page 8

Right

Execution

RightInformation

Right

Projects

RightPeople

Principles

• Leadership must lead• Create and sell a vision that delivers

Theme #1: Right LeadershipRight Leadership

Page 9

Right

Execution

RightInformation

Right

Projects

Theme #2: The Right People Right People

Right

Leadership

Principles

• Choose the right people for development• Use scientist / manager partnership to lead

development• Use flexible allocation of resources

Page 10

Right

Execution

RightInformation

RightPeople Principles• Link business strategy to individual results• Involve marketing early• Use Net Present Value (NPV) to help

select projects • Use marketing to position the product

Theme #3: Do The Right Projects

Right

Leadership

Right Projects

Page 11

Right

Execution

RightPeople

Theme #4: Find The Right Information

Right

Leadership

Right Information

Right

Projects

Principles• Use science• Involve customers early • Use outside experts, consultants or info• Continue to learn• Use performance requirements for application development

• Use intellectual capital• Use prior experience to avoid mistakes

Page 12

RightPeople

Theme #5: Right Execution-Achieving Results

Right

Leadership

Right

Projects

Principles• Use Six Sigma methodology• Make and deliver commitments• Emphasize decision making• Use a parallel process

Right Execution

RightInformation

Page 13

Summary - Speed Based Development

• Philosophy is useful for both existing and new businesses• Philosophy is useful for product, developments, process and applications

• It’s all about getting the right results