How to make stuff right and keep it right

How to predict Success in an R&D organization?

2010-05-30T08:41:00.011+09:00

An important question to business leaders - how can one predict the success of an R&D organization? To answer this question consideration is first given to the purpose of R&D followed by theory related to the factors that make an R&D team successful.

Purpose of R&D:

As shown in Figure 1, a “Gap” exists whenever problems, needs, or opportunities exist in the absence of solutions, products, or processes to satisfy them. The purpose of spending resources on R&D is to close the gaps. Gaps are closed by breaking down Raw Knowledge into applicable pieces of information and converting to useable end solutions, products, or processes.

Figure 1

R&D Team Success:

To achieve success, an R&D team must (1) close the gap and (2) close the gap efficiently. If the gap is not reduced or is reduced only marginally, the team is not successful. In most business environments if the efficiency in closing the gap is low (as measured by cost and time required compared to the gain achieved by closing the gap), the benefit of closing the gap will likely be negated.

The time required to close the gap may well be argued to be a subset of the cost. However, in a competitive environment where time to market is important, time is a factor that must also be considered independently from cost. For example, if a solution, product or process can be developed inexpensively but at twice the length of time a competitor closes the same gap, the benefit may be largely lost to the competitor.

Factors affecting R&D Team success:

A. Human Factors [1]

1. Skill – The R&D team must be comprised of team members with adequate skill sets and training to function within the environment

2. Thought pattern – In dealing with technical development detail, team members who think in patterns of “prove by design” will be able to more completely close the gap relative to those who think in patterns of “prove by test”

3. Attitude – Team members of a “do or die” mindset will achieve high performance relative to those who are complacent.

B. Available Resources

If enough resources are provided to allow the R&D team to function without choke points, they will have a higher probability of succeeding. If resources are too scarce, progress may be slowed.

C. Tasks Required vs. Allowable Time

Although time pressure will always be present, if the circumstances are equivalent to stuffing 20lbs of potatoes into a 5lb sack, success will be less likely.

R&D Success Model:

The R&D Success model is derived by inserting the human factors, resources, and Time factors into the model and obtaining a Total score. If each of the human factors for both the leader and staff are at the highest level the Human Factors score would be 100 (see Figure 2). Attitude is weighted more heavily than skills or thought pattern.

The total score is the product of the Human Factors x Resource Factor x Time Factor. The Resource and Time factors are capped at a maximum value of 1, leaving the Human factor as the distinguisher of success in cases where resources and time are adequately provided.

Figure 3 shows the case where both Resource and Time factors are adequate, but the Human factors are low. Under these conditions the total score is 27, indicating success is unlikely.

To prevent outsourcing of R&D, the R&D team must be able to show it can consistently outperform the alternative options. This model provides insight into factors needing consideration in assembling a successful R&D team.

[1] Refer to “Becoming Re-Successful” by J. Demeron Skouson, www.lulu.com/product/paperback/becoming-re-successful/3652586 or at Amazon.com

Figure 2

Figure 3

Once again, Honda gets it right.

2009-07-30T13:26:00.001+09:00

http://finance.yahoo.com/news/Honda-makes-money-others-hope-apf-969873985.html?x=0&sec=topStories&pos=3&asset=&ccode=

This article posted on Yahoo Finance tells the story of another Honda success story. While all the other auto makers are losing money, Honda made a profit. Honda turned a profit because consumers buy Honda vehicles. Consumers want to buy Honda vehicles because Honda figured out a long time ago that to win, they need to make the products people want to buy.

My first hand experience dealing with Honda began in 1986. I was a new graduate with an electrical engineering degree from Arizona State University. I had just left Motorola and joined a small defense contractor that needed a Japanese-speaking engineer to help with the development of a new product for the auto industry—airbags.

My first responsibility was to learn how to adapt the airbag products the company was making for the US Big 3 to match Honda’s expectations. I was young, excited, and full of passion for the challenge. I was assigned to work closely with a seasoned sales guy who had developed a great relationship with Honda. The first task he assigned to me seemed rather simple. We had received a list of technical questions from the engineers at Honda R&D and it was my job to walk around and talk with the core experts within the company and compile the answers so they could be communicated back to Honda. It all seemed simple enough. After I had worked with the experts and collected all the requested information, I was to go back and review with Sales and then we’d fax (email didn’t exist at the time) the information to Honda.

I went about busily meeting with the experts and collecting all the information I needed to answer Honda’s questions and attempted to learn everything possible about the product. I talked with the engineers who were working with our US domestic automaker customers. I used the same information they had used in their work with those companies and then ran some additional product tests and gathered the results.

Then we faxed the information to Honda R&D. To my amazement, I found that the answers I sent only spawned more questions. Being new and inexperienced, I went back again to my domestic counterparts in search of the additional information requested by Honda – it didn’t exist.

I now had to dig deeper. I found that the only way I would ever get the information I needed to answer Honda’s questions was to work with the designers and to then conduct the testing needed to derive the information myself. Wow! Honda didn’t accept anything that wasn’t backed up with reason and a lot of data. We had to do technical engineering work to understand the physics and principles involved in order to answer their questions. A mere statement of test results was not acceptable to them.

Honda’s company philosophy drives its engineers to understand what the customer wants – and to satisfy it. In everything they do the first question is always “how will it affect the customer?” The results are that while they don’t really understand the underlying detail, consumers have learned that Honda makes great cars that provide long term value.

Life and business have an interesting way of throwing curve balls; you always have to stay flexible to adjust your swing.

2009-07-10T14:25:00.002+09:00

Several months ago, I was living in Tokyo and working in the furiously paced auto industry. Then back to the US, now in San Diego jumping new hurdles in the Defense industry. In between, and still, maintaining entrepreneurial activity. Which brought me to a lunch time conversation today at In-n-Out Burger with an 87 year old retired Navy sailor. He was assigned to the USS Lexington, an aircraft carrier that left Pearl Harbor on….Dec 5th, 1941 - a few days later and he would not have been there today to tell me his story.

After a near miss at Pearl Harbor, his carrier before long became the first to be sunk in World War II, hit by 5 torpedoes and a few bombs, the ship was disabled and then sunk. Assigned to another ship, that too was struck, this time by a Kamikaze plane. When I gave him a heartfelt thank you for his service to our country, he shrugged it off saying he was just a stupid young kid who didn’t know any better. He went on to finish a long career in the service. To me he is a great man.

So how is all that related to real life principles for developing products? When I began writing this blog I thought the principles I learned from the Japanese applied to more industries than autos, now I’m confident. In the auto world, companies live and die by the speed they can bring product to market – and actually end up with consumer preference in their favor. The military world is a little different; the customer is … the government. The production volume is on the order a few to a few thousand – over a 10 year time period. But design misses can cost hundreds of millions of dollars and can literally affect human life.

The very same “prove by design” vs. “prove by test” principles are touched upon and missed in both industries. It comes down to this – real principles don’t change because of circumstances or time. They are the same no matter what.

Getting Down To Business...

2009-02-03T16:05:00.008+09:00

Here's one of the better blog posts I've seen in a long while.

http://www.tunedinblog.com/blog/2009/01/hide-and-seek.html

As Mark encourages, now is not the time to bury one's head in the sand. More than ever, it's time to go out and dig up the opportunities.

When you discover yours, you may run into obstacles where expert assistance can speed your success and shorten time to market (whether it be engineering development, supplier arrangements, manufacturing readiness, distribution channel set up, etc). If so, don't hesitate to contact us. A few minutes chatting together can determine if mutual win-win circumstances exist.

Go to our website at www.productbuilders.com or send an email to me at demeron@productbuilders.com.

All the Best!

Entrepreneurs and Small Businesses Are the Key.....

2009-01-30T23:28:00.004+09:00

Another article highlighting the importance of the entrepreneur and small businesses in leading the US economic stimulus.

http://www.bizjournals.com/tampabay/stories/2009/01/26/daily54.html#

According to Dinah Adkins, president and chief executive officer of the NBIA, "The study stressed the fact that business incubators create more jobs at a lower expense to the federal government. According to the research, the federal government spends $144 to $216 per job to create activity in the incubator sector.

In comparison, roads and transportation projects generally cost more than $1,200 per job, with 4.4 to 7.8 jobs created for every $10,000 invested, the report says."

The question then becomes - "How do we support and enable small business?"

No problem, with firms like the Gibbs Group, www.productbuilders.com, who do all the work for small business owners who have an idea but need assistance getting it to market, small businesses can thrive and generate new jobs faster than ever before.

The Gibbs group basically assists the idea owner to obtain intellectual property protection if necessary, do the engineering work to design and develop the product, then lines up manufacturers and distribution channels so that the business owners receive a turnkey, operational business that they can then pour heart and soul into to make it grow.

With teamwork between companies like the Gibbs Group and small business owners the future of America is in good hands, if the government can just let the process run.

What is the Real Stimulus that Will Turn Around America?

2009-01-26T22:30:00.004+09:00

Automaker bailouts, giant Financial firm bailouts, public works expansion, and on and on – what if any of these will have lasting effect in rebuilding the US economy? As large corporations continue to lay off employees by the thousands what will replace the incomes for millions of affected Americans?

US consumers drive the economy but without income they will not return to the marketplace to buy goods and services and the large corporations that depend on them will continue to shrink and eliminate even more people from positions. Is this a viscous circle of depressing activity that will continue to spiral downward – until what?

While the above scenario certainly can appear as doom and gloom for the foreseeable future, I believe there is a bright shining ray of hope in the small businesses of America. They will once again do their part as they have repeatedly done throughout history. These are the entrepreneurs, their kind were the backbone of early American business. They have an unconquerable spirit of determination and courage and are well and alive today.

Those who doubt this would do well to recall that sometime around the 1930’s there were those who called for the US patent office to be closed because all the inventions ever to be invented were already complete. As that notion was false then, so it is today. Those who have been shed from the large institutions have a wealth of knowledge and experience, just needing to be harnessed and applied to new small ventures that will in turn grow and replace the “old” large scale businesses of today. Small businesses are much more nimble and responsive, enabling them to adjust to quickly changing market conditions and so are ideal to compete against the outdated giants.

All that is needed is guidance - as many of these talented displaced people are not accustomed to working in a small business environment they struggle when attempting to function in that environment. Not to worry – there are firms such as the Gibbs Group from Yuba City, CA ( www.productbuilders.com ) that specialize in converting ideas to businesses for the holders of those ideas. The Gibbs Group is a group of consultants that guide inventors and small businesses to turn the idea or concept into a viable, thriving small business, some of which grow to large businesses.Each of these new businesses creates more jobs, replacing those shed from big business.

The Gibbs Group uses sound product development principles, taking a very hands on approach to build the business from the idea stage, through competitive market analysis, prototyping and engineering development, and on through manufacturing readiness and mass production and then into wide scale distribution. Through the work of the valiant and courageous American business pioneers guided by firms such as the Gibbs Group, America will eventually revitalize itself into a healthy business powerhouse that it once was. America will become re-successful.

Will an auto industry bailout help US automakers long term?

2008-11-10T06:27:00.005+09:00

http://biz.yahoo.com/ap/081108/autos_what_happened.html

“They” say US automakers won’t survive unless the government steps in with a bailout package for auto makers, just like for financial firms. That may be true, short term. But what about long term effectiveness? The above article says the business decisions of the US Big 3 during the flush times led to their demise. Fine – fix the business decisions by taking on the Unions, etc, etc, to reduce costs. But what of consumer preference? Will a bailout will fix that problem? No chance.

The only fix to consumer preference is producing a high quality product that consumers want to buy. The Japanese have studied this point for years and developed the “know how” that now allows them to provide the excellent quality products US consumers have come to recognize. They call it “monozukuri”, or the science (not art) of making things. The US manufactures have generally ignored the fine details of monozukuri and have instead pushed technology down hill and out the door to suppliers. They themselves have largely become coordinators and program managers. The suppliers in turn were allowed to become sloppy (by Japanese standards) because all the OEM’s care about is whether they can produce test results showing their parts meet the OEM specifications (and more importantly to them, whether they are they the lowest cost supplier). The OEM engineers generally have lost the technical depth to fully understand the technology details of the products assembled into their vehicles (relative to their Japanese counterparts).

Ask any global Tier 1 supplier which customers are more difficult to satisfy. The answer – the Japanese, no question about it. Why? Because they demand to understand in minute detail the technical characteristics of every component they use.

Unless US automakers and their suppliers learn the same principles discovered by their Japanese counterparts over the past thirty years, no bail out package will have the capability to save them from their oncoming demise.

Read more in the book, "Becoming Re-Successful" www.lulu.com/content/4339719

Prove by Test vs. Prove by Design

2008-10-17T12:10:00.004+09:00

So you want to develop a new product or service. You thoroughly research the market expectations and they become your requirements (i.e. the specification). You plan your approach, do design work, build samples and run tests to check the results. Maybe the first results weren't so good so you make modifications and the new results show the product meets the specification requirements. You run additional tests to confirm - they're positive. You're elated you achieved success, right? After all, your test results prove the product is capable.

Although a bit oversimplified, the above paragraph describes the product development process generally used in the US and Europe. Will a Japanese customer accept the product as developed? Absolutely not! Why?

The fact that 10, 100, or even 1000 tests were successful does not guarantee the 11th, 101st, or 1001st sample will also be good. Japanese engineers have been conditioned to seek to understand the details, the process that caused a part to be good. Test results themselves do not prove the product design is robust. A detailed explanation of what caused the product to function properly is expected.

Along with an explanation of why the part functions, an analysis of the potential failure points and how the design was carefully thought through to avoid them is required. Only then will the Japanese engineer agree the design is robust, and will view the test results as an indication the design itself is robust. In other words - prove by design.

The concept of Prove by Test vs. Prove by Design is one of the most significant differences in the Japanese and Western product development processes. Learn the method of Prove by Design and you'll see your product performance increase while at the same time significantly reduce warranty and quality issues.

Five Key Points to Understanding Japanese Thinking

2008-10-08T08:45:00.007+09:00

When working with Japanese counterparts it is helpful to know some of the background behind why they think the way they do. Below are listed five key points to understanding Japanese thinking. Each of these points cause the thinking process used in Japan to be different than that accustomed to by most Western people.

If you can adjust your mindset to understand this background, you will become positively enabled to interact at an elevated level of efficiency and even better, to use the positive aspects in your own methods of developing products and services.

Key Point #1: The level of service considered ‘extraordinary’ in the US is generally only considered ‘average’ by Japanese standards

Key Point #2: To the average American, the macro level end result is important. To the average Japanese, the details that cause the end result are more important.

Key Point #3: The Japanese language leads to logical thought patterns using progressive building blocks laid out in graphic detail. The English language more easily enables wordy statements not rooted in logic.

Key Point #4: While Americans tend to be direct and transparent with intentions, Japanese tend to be indirect. Be aware of “tatemae” and diligently search to discover and understand the “honne” position.

Key Point #5: In the US, "who you know" can often be as important as "what you know". To win credibility in Japan, you must personally through your own experience, absolutely, positively, without a doubt seek out and understand the fundamentals, the basic essence of every idea and concept – no shortcuts allowed

Innovation and Development

2008-09-27T14:17:00.020+09:00

Checkout the research shown in this TED video clip (see link below) found on YouTube.

Why do I talk about it here; what is Japanese about it? Both cultures (Western and Japanese) hit on the same note - when you don't know the answer to a problem, look to nature.

The fact is, Western cultures are usually superior to Japanese cultures in the field of idea generation. Japanese technology development strength typically lies in the capability to perfect good ideas.

Japanese are excellent at what is known in Japan as monozukuri, or the way of making things. The way they think through issues and apply logic allows them to investigate an idea in minute detail to clearly understand the physics behind it and to then apply the same logic in the process to make it reliably.

So the point is - use the best of both cultures for optimum benefit.

Capitalize on the idea generation capability of the West and add to it the analysis and monozukuri capability of the Japanese technology culture to create a world class technology engine second to none.

http://www.youtube.com/watch?v=BUmOKfllAEo

Excerpts from book, "Becoming Re-Successful"

2008-09-26T10:31:00.018+09:00

Here are some excerpts from Chapter 9 that help explain the importance to Japanese companies of "thinking correctly". When one begins to master the principles associated with Japanese thinking, reasoning and the ability to apply sound logic increases at quantum levels.

Best of Success!

Demeron

...the single biggest complaint voiced by Japanese business people working with Americans: “Nihon no kangae-kata ga wakaranai,” or, “They don’t understand the Japanese way of thinking.” The US businessperson often fails to think in the manner his or her Japanese counterpart takes for granted. Overcoming this obstacle by learning to understand the Japanese kangae-kata (way of thinking) is crucial to the ability of the engineer, planner, sales person, manager, or other knowledge workers to effectively work in or with a Japanese company.

Unlike US companies, Japanese organizations place heavy emphasis on the way each employee thinks, or their kangae-kata. These companies believe that if a person has the right kangae-kata, he or she will take the proper action to solve and eliminate problems under any circumstances they encounter, from development to manufacturing to all other business issues. As a result, Japanese managers go to great lengths to coach individuals on the best way to think through a problem and to correct improper thought processes that come to their attention. Japanese kangae-kata enables Japanese companies to operate within the knowledge-based environment discussed in Chapter 6, and failure to use Japanese kangae-kata relegates US companies to a position of heavy reliance on less effective task-based development systems.

The Japanese mindset theory (or Japanese kangae-kata) is a thought process that builds upon a solid foundation of principles and facts held in place by strong logic, and these (facts/principles and strong logic) are the key components of kangae-kata.

...When listening to proposals and evaluating ideas, knowledge workers in a Japanese organization are keenly searching to understand what logic has been applied and will expect to see the entire why, why analyses, cause-effect relationships, and logical reasoning that led to a conclusion. If they know why you say what you say, then they can either agree or disagree based on their own logic, but without knowing the “why”, it is difficult to apply logic.

For the individual who is part of the American Business Engine, success in developing products and services in a Japanese-influenced environment requires him or her to personally understand and think in terms consistent with the Japanese kangae-kata.

The four elements of Japanese kangea-kata listed below are components of the two key factors Facts/Principles and Strong Logic.

Kangae-kata elements:

1. The Story Line

Why is the product or service needed? What problem does it solve? Why should it be considered for use? Why is it any different, better, or worse than anything else available? Why should any time be spent on its consideration? Is there an overall philosophy being followed? What is the path of logic to be applied?

2. Functional Theory

What is the genesis of the design concept or service? Why start there? What must be considered in the beginning? Why? Why should the concept work? What principles are in play? What can cause the product to malfunction? Why? Why is a certain size or dimension or mass needed? Why is one material or method any better than another? What physics and theory are in play? What is the next step beyond the initial concept? Why? What options are available to move to the next step? What judgment criteria should be applied to evaluate?

3. Confirmation

Do the results confirm the design theory? Are the cause and effect relationships understood? What must be controlled? How tight must the control be? What happens outside the control limits? At what point does the product breakdown?

4. Conclusion

What conclusion can be drawn? Why does it make sense in the overall scheme? Does the conclusion support the story line? What concrete statements can be made based on data? Do the merits stand out?

These elements are points that are used by knowledge workers to evaluate most business activity in a Japanese-influenced company. Be it deciding whether or not to provide a loan, approve a product for use, purchase a machine, or evaluate a commercial quotation, these elements are considered in one form or another. Always, there must be a story line (element 1) with which the other elements must be in complete alignment.

It is a rigorous application of these kangae-kata elements that differentiate the Japanese approach to product development projects from that of Western cultures. Japanese capability to apply logic (as explained in the last paragraph of Chapter 3) with these Japanese kankgae kata elements forms a super powerful analysis technique that is used every day in product development and other business activity.

Book preview trailer

2008-09-26T10:13:00.000+09:00