Pipeline Management - sites.ieee.orgsites.ieee.org/scv-tems/files/2016/12/tems_2004-03-31_D-Kirjassoff.pdfPipeline Management David Kirjassoff DEK Management Consulting [email protected]

Pipeline ManagementPipeline Management

David KirjassoffDEK Management [email protected]

2004 © David Kirjassoff

FocusFocus

How can a development engineering organizationIncrease the flow of new productsBy taking the perspective of operating a development pipeline?


Pipeline ThinkingPipeline Thinking

Common for operations/manufacturing (and chemical engineers!)– Processes and workflow are visible, and explicit– Work flowing through the pipe is routine and

repeatable– Capacity, throughput, bottlenecks are designed in and

managed– The pipeline is managed for continuous improvement

But it hasn’t always been that way…


Pipeline Evolution in OperationsPipeline Evolution in Operations

Load and Chase

ProductionControl

Lean Manufacturing

Job Shop

Effic

ienc

y

Time


Pipeline ThinkingPipeline Thinking

Less common for design/development– Process and workflow is invisible, and in a

constant state of flux– Work flowing in the pipe is highly variable,

often indeterminate– Capacity, throughput are often secondary

considerations– Projects are managed for improvement, often

the pipeline is not


A Sample Development PipelineA Sample Development Pipeline


Common Development Pipeline Common Development Pipeline ProblemsProblems

Good new ideas spoil; waiting for someone to start working on themToo many projects for too few resourcesConstantly shifting prioritiesNew work slips in unannouncedHalf-baked work is rushed to completionLots of work is sort of on hold, but nothing ever goes away


Pipeline ManagementPipeline ManagementDefinition:– The process of managing a portfolio of separate

development projects across a common group of resources (people, processes, tools)

Three main focus areas:– Pipeline Design

What do we want our development process to look like, and what capacity do we want to establish?

– Pipeline OperationHow do we best operate the pipeline we have, and how do we know how well its working?

– Pipeline ImprovementHow do we take what we are learning during pipeline operation, and translate it into improvements in pipeline design?


Pipeline Design ConsiderationsPipeline Design Considerations

Length– Where does the development pipeline start and end?

Width– How many projects do we want to work on at once?

How much capacity do we need to provide?

Shape– What should the pipeline look like?– One pipeline for all, or special purpose pipes?


Pipeline Length Pipeline Length –– Start PointStart Point

Idea Concept

Beware the fuzzy front end

Consider separating discovery from development

Product

Discovery Team Development Team

Idea Concept Product


Pipeline Length Pipeline Length –– End PointEnd Point

Avoid the sustaining engineering black hole

Separate design resources from sustaining resourcesClearly define the handoff from development to sustaining

Sustaining

Development


Pipeline WidthPipeline Width

How many projects do we want to work on at once?Consider two extremes:

Start Many

Time

Proj

ect C

Proj

ect B

Proj

ect A

Start Few

Project C

Project A

Res

ourc

es

Res

ourc

es

Project B

Time


Advantages:Advantages:Start Fewer, Finish QuickerStart Fewer, Finish Quicker

Multiple resources involved, easier to deal with resource disruptionSmaller window to introduce changes or deal with reprioritizationEasier to forecast customer needs over shorter time horizonCycles of learning for both team development and project contentBenefits of completed work begin accruing earlier


Pipeline WidthPipeline WidthHow much capacity do we need to provide?

Capacity Utilization

Ave

rage

Cyc

le-T

ime

What has the greater impact your profitability – Time-to-market or– Productivity

100%


Pipeline ShapePipeline Shape


The Pipeline(s) have to Supply The Pipeline(s) have to Supply the Product Portfoliothe Product Portfolio

New

Performance EnhancementRevs/Updates

Breakthrough ProductsDerivatives/Spins

Exis

ting

Mar

kets

Existing Technology New


Pipeline Operational Pipeline Operational ConsiderationsConsiderations

How do projects get defined and initiated? How are priorities established and maintained across pending and active projects?How are resources allocated to projects on an initial and ongoing basis?How is forward progress tracked and maintained for active projects?

Let’s look at these from both a “getting started” and a best practices perspective


Getting StartedGetting Started

Inventory current projectsDrain the swampPrioritize what’s leftGet some control on the input


Inventory Current ProjectsInventory Current Projects

Generate a list of all active and on-hold projectsIdentify (or assign) an “owner” for each projectAsk owners to estimate:– Effort remaining (man-hours, calendar time, $$)– Business benefit ($$, H/M/L, etc.)– Team members involved (and time %)– Current status (active, on-hold, stalled)– Obstacles to completion

Tabulate and circulate summary for review/comment


Inventory FormatInventory Format

System analyst,IT

People Involved

Pending resources from IT

High, allows growth with current staffing

6 man-weeks,$12,000

On-holdNew call center script system

System Upgrade

Completion Obstacles

Business Benefit

Effort RemainingStatusDescription

Project Name


Drain the SwampDrain the Swamp

Schedule a meeting to review the inventory– Evaluate the work– Expedite the easy wins– Identify what to stop doing


Evaluation MatrixEvaluation MatrixH

igh

Low Hanging Fruit Prioritize for Completion

Impa

ct

EffortLow High

Low Finish Quickly or Stop Candidates to Stop


Prioritize what’s leftPrioritize what’s left

Rank order remaining significant projectsAssign resources in priority orderCommunicate priority across the teamEstablish ground rules for priority:– Queues are handled in priority order– In case of resource constraints, assign to higher

priority projects first


Get control of the pipeline inputsGet control of the pipeline inputs

Declare a temporary moratorium on initiating new work until inventory process is completedDedicate separate resources to sustaining tasks and projects


Best PracticesBest Practices

Input controlPhase gate review processPipeline control room


Input Control MethodologyInput Control MethodologyEstablish a sequence of two queues for potential new projects:

NewIdeas

ActiveProjects

Valve 1 – Is this a good idea?

Valve 2 – Do we have the

resources?

Prioritized list of good ideas awaiting resources

1.

2.

3.

List of ideas awaiting review

•

•

•

Prioritized list of active projects

1.

2.

3.


Valve 1 Valve 1 –– Good Idea TestGood Idea Test

Establish a process for submitting and collecting ideas for projects– Minimize bureaucracy, keep it simple– Review ideas frequently, avoid spoilage

Rank ideas for fit with team strategy, business impactSelect ideas to pass through the valveEstimate resource requirements


Idea Evaluation MatrixIdea Evaluation MatrixFi

ts o

ur C

harte

r Hig

h

Prioritize and passto second valveJust say no

Good ROILow High

Low Just say no Refer elsewhere


Valve 2 Valve 2 -- Resources TestResources Test

Note: Periodically review the “good ideas” queue, priorities often shiftStarting with the top idea, apply the following process


Valve 2 Valve 2 –– Decision Process FlowDecision Process Flow

Begin here

Are all needed resources available?

Could they accelerate an

active project?

Yes No Start new project

No Yes

Idea remains in queue

Apply resources to active project

Yes


Phase Gate Review ProcessPhase Gate Review Process

Establish a standard set of phases that fit your types of projectsMaintain a virtual status board showing where each project is in the pipelineConduct reviews of every project in the pipeline as it passes a phase milestone (next slide)Allow for “emergency” review any time a project in jeopardy


Phase Review QuestionsPhase Review Questions

Is this project still worth doing?– Market/customer needs– Opportunity cost

Are the planned resource requirements on track?Are there any anticipated obstacles to completion?


Pipeline Control RoomPipeline Control Room

Development Project Status

Pipeline Metrics Improvement Project Status


Metrics WallMetrics Wall-- ExampleExample% Of Sales from New Products

0%10%20%30%40%50%60%70%80%90%

100%

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

>12 months6-12 months< 6 months

New Product Revenue Growth

0

20

40

60

80

100

120

140

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10

P11

P12

Product DProduct CProduct BProduct A

Aggregate Schedule Performance

01020

30405060

708090

P1 P3 P5 P7 P9

P11

% of PlannedMilestones MetGoal

Normalized Development Cycle Time(Days/1000 gates)

0

10

20

30

40

50

60

70

80

Q1 Q2 Q3 Q4

ActualGoal


Development Project Status WallDevelopment Project Status WallProject C

•Schedule Performance

•Resource Utilization

• By Name

• Hours/month, planned vs. actual

•Development Spending

•Forecast Revenue Plan

Project Priority

1. A

2. C

3. E

4. B

5. D

Project B



• By Name




Project A



• By Name




Idea Queue

•

•

•

•

Input Queue

1.

2.

3.

4.

5.


Pipeline Improvement Pipeline Improvement ConsiderationsConsiderations

How do we identify potential improvements in our pipeline design?How do we plan and implement desired improvements?How do we allocate resources to improvement work?


Pipeline Improvement WallPipeline Improvement WallImprovement Project C



• By Name




Input Queue

1.

2.

3.

4.

5.

Active Improvement Project Priority

1. A

2. C

3. B

Improvement Project B



• By Name




Improvement Project A

•Charter/Goals



• By Name


Idea Queue

•

•

•

•


In SummaryIn SummaryTeams that manage a portfolio of projects often don’t view themselves as managing a production pipelineWe have a natural tendency to “bite off more than we can chew” which has unintended consequences to productivityControlling the front end of the process generally results in a faster flow of completed work at the back endMaintaining a clear and common set of priorities for project queues and active projects can help ensure that at least the high priority work gets through

Documents

Pipeline Management - sites.ieee.orgsites.ieee.org/scv-tems/files/2016/12/tems_2004-03-31_D-Kirjassoff.pdfPipeline Management David Kirjassoff DEK Management Consulting [email protected]