Peter Žilnik, Danfoss Hydronic Balancing & Control
6 million tons CO2 could be saved per year
by fully utilizing the potential of pressure independent control valves for in-door climate solutions.
Projects in Danfoss Hydronic Balancing & Control
Peter Žilnik, Danfoss Hydronic Balancing & Control
1. Introduction
2. Product Projects • NPD – New product Development
o PDP - Product Development Program in Danfoss o DMP – Danfoss Milestone Process
• NPA – New Products Adaptations
3. Other Key Projects • HBC Roadmap • Project Charter • Project List
Peter Žilnik, Danfoss Hydronic Balancing & Control
Weak project culture
Projects are at home in Product Development
Danfoss HBC is Project driven organization
Limited overview of overall key activities
No prioritization cross-functionally
Lack of overall resource management
Isolated / poor execution of great ideas
Wishful thinking in execution
Product Development
Process Improvements
Organization
IT development
Marketing
Quality
Logistics
HR
Business Development
Key Projects as Strategy realization
More efficient in project execution
Step further in resource management
Closer connection between functions
Personal development
1995 2000 2005 2010 2015 2020
Product Development
Peter Žilnik, Danfoss Hydronic Balancing & Control
Product Projects
Other Key projects
HBC Roadmap
Peter Žilnik, Danfoss Hydronic Balancing & Control
Product projects (by complexity of Execution)
• New Product Development - NPD
• New Product Adaptations - NPA
• (Change Control – CC)
• (Tasks – JDI)
Product Projects
Other Key
projects
Roadmap
Peter Žilnik, Danfoss Hydronic Balancing & Control 6
FRONT END
Input to and output from technology management
Running Projects
New Business cases
New Portfolio
M0
M1
M3 M5 M6
Concept design
Detailed design
Verification & launch execution
Ramp-up Cash
Front End ideation Execution & Launch
Refining
Screening
M-1
Heart Beat
...
Region C
Region B
Region A
Application
...
target area
App 1 App 2 ...
Region
Idea Idea
Idea
Idea
Idea Idea target area
Idea
Idea Idea
Idea
Idea
Idea Idea
Idea
Other ideas from the organisation & customers
Idea Idea Idea
PDP aims to introduce and support tools and processes from idea to profit
Peter Žilnik, Danfoss Hydronic Balancing & Control 7
Running projects
Screening Refine
Screen ideas
Rank ideas New Business cases
New Portfolio
Input to and output from technology management
Roadmap
Road- map
0
10
20
2009 2010 2011
Value Creation
Idea generation – FE Pilots Idea management Portfolio management
New Business cases
PDP Front End tools & processes
...
Region C
Region B
Region A
Application
...
target area
App 1 App 2 ...
Region
Idea Idea
Idea
Idea
Idea Idea target area
Idea
Idea Idea
Idea
Idea
Idea Idea
Idea
Other ideas from the organisation & customers
Idea Idea Idea
Objective filter criteria
Value proposition, market rationale and business case for each idea
Short-list of business cases
New portfolio with transparent ranking of projects
Project roadmap including all running projects
Resource plan taking constraints into account
More, better quality ideas documented in idea profiles
Customer requirements captured in lead-user workshops
Application know-how build-up
Key deliverables
Gain customer insight and application know-how to identify new innovative products for growth
Refine ideas and build business cases to focus on products with high value proposition / growth potential
Re-prioritize entire project portfolio to maximize cash curve and reach target Objectives
Peter Žilnik, Danfoss Hydronic Balancing & Control
8
An example of a successful frontend process: American Idol
Regional Auditions
~ 10,000 Aspiring singers
164 Promising candidates
Finalist Selection
14 Weekly Televised Events
24 Candidates evaluated
in detail
The “American Idol” Innovation process
Winner
The concept first introduced to TV in 2001 – Britian’s “Pop Idol”
Candidates skills and image continually refined
Copyright © ▪ For internal use only ▪ Property of Danfoss Business System 9
Cash Trap!
Idea generation Product development Realization
Time
Cumulative
cash flow Launch
Invest-
ment
1
Speed to
market 2
Time to
Scale 3
Output of the Business Case: Cash Flow Curve 4 Factors Determine The Shape Of The Cash Curve
Support
costs
4
Peter Žilnik, Danfoss Hydronic Balancing & Control 10
Outcome of Portfolio Management – is a Road Map of product projects
Input Output
Project selection
Resource plan (existing projects)
Project A
Project B
Project C
Projects 2008 2009 2010
Project roadmap
B A C E
D H
G F
Complete project portfolio
B A
C E
D
H
G F
1111111– Name/skill
1111111– Name/skill
1234433Project B
0,5111– Name/skill
0,5111– Name/skill
––1222Project A
121110987654321121110987
20092008Projects
1111111– Name/skill
1111111– Name/skill
1234433Project B
0,5111– Name/skill
0,5111– Name/skill
––1222Project A
121110987654321121110987
20092008Projects
Resource plan (new projects)
+
Copyright © ▪ For internal use only ▪ Property of Danfoss Business System 12DD_PDP-test pilot_1st Portfolio management workshop_28Feb08-TFl-CPH_v1.ppt
New project roadmap requires F&B/Industry and Platform HW resource plans until end of 2009
Jan08
Feb08
Mar08
Apr08
May08
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Pre-N1 projects
Mature projects
Dec09
Nov09
Oct09
Sep09
Aug09
Jul09
Jun09
May09
Apr09
Mar09
Feb09
Jan09
Current F&B/Industry projects
Current F&B/Industry projects F&B/Industry resource allocation for 2008/2009 F&B/Industry resource allocation for 2008/2009
Stable portfolio with new F&Band industry
projects
Preliminary portfoliowith new
F&B projects
P403
P422 Crane
P403-2
P423-II
P442 safety
P422-3
P422-4
P441 powerl ink
P443 Profinet I RT
Industry
/F&B
P408 1-3
P424
P436 12/ 18
P437 step up/ down
P440 AFE
P445 Liqu id cooled
High power
PrM
(USA)
P402
P406
P426
P428-A+B
P418
P419
P432
P422-2
HVAC/
Water
P618
P619 Basic HVAC
China
P434 DanishP435 DTC,
P417 –abc
P417-E
P603 RohS
P357 MCD500
P438 Blue Ocean
Non-standard
P404
P430
P420
P429P650
P439
PlatformHW
F449
P400 perf. optim.
F…. FCD w. FC300 perf.
Technology
P601 Micro
P608 Micro ext.
Micro
incl. adaptation of HW and
Application SW
Resources available for
planning
Example: F&B/Industry – actual resource data is
being generated
Not covered by current resource planning – must be estimated
FTEs
Covered by existing DD resource planning process (1 year from current month)
Comment:
Show updated picture of available
resources (just total FTEs)
Backup with dump from Excel with
availability by function
Comment:
Show updated picture of available
resources (just total FTEs)
Backup with dump from Excel with
availability by function
Peter Žilnik, Danfoss Hydronic Balancing & Control 11
EXECUTION
Input to and output from technology management
Running Projects
New Business cases
New Portfolio
M0
M1
M3 M5 M6
Concept design
Detailed design
Verification & launch execution
Ramp-up Cash
Front End ideation Execution & Launch
Refining
Screening
M-1
Heart Beat
...
Region C
Region B
Region A
Application
...
target area
App 1 App 2 ...
Region
Idea Idea
Idea
Idea
Idea Idea target area
Idea
Idea Idea
Idea
Idea
Idea Idea
Idea
Other ideas from the organisation & customers
Idea Idea Idea
PDP aims to introduce and support tools and processes from idea to profit
Peter Žilnik, Danfoss Hydronic Balancing & Control 12
PDP’s focus in execution is on time, cost and quality
M0 M1 M3 M6
Recommended mandatory milestone for all of project Critical internal milestone for part of project
Clear start point for all projects.
Appoint PL
All resources needed (front loading)
Avoid wasting time with “pre” project work.
Fixed time between M0 and M1
No concept or specs until customer requirements are clear
Corrective actions to Cost, Quality, Time deviations
Continuous risk mitigation and problem solving
Product launch plans implemented
Installation of production equipment
Ramp up of production and sales
Finalize Design Product Validation &
Qualification
Customer
Value
Concept
Definition
Proof of
Concept Ramp-Up
Supply Ch.
build-up
Supply Ch.
Start-up Concept Definition Process Design Ramp-Up
Launch Deployment Launch Prep. Launch Goals & Strategy Launch Plans Sales
Ramp-Up
M5
Project
Prep.
Supply Chain Prep.
M½ M2 M4
Peter Žilnik, Danfoss Hydronic Balancing & Control 13
Optimize team coordination and communication efficiency
Organize essential project information in one location to strengthen decision-making
Strengthen team commitment
Simplify planning process
Emphasize critical path considerations
Stand-up Meeting Visual Project Board
Visual Project board & stand-up meetings provide an integrated system for workflow management
Peter Žilnik, Danfoss Hydronic Balancing & Control 14
The main objective of Market Launch is to create Sales Velocity !!!
Idea generation Product development Realization
Time
Cumulative
cash flow Launch
Speed to
market 1
Sales Velocity =
( Volume / time) 2
Objective of Market Launch
Peter Žilnik, Danfoss Hydronic Balancing & Control
Product projects (by complexity of Execution)
• New Product Development - NPD
• New Product Adaptations - NPA
• (Change Control – CC)
• (Tasks – JDI)
Product Projects
Other Key
projects
Roadmap
Peter Žilnik, Danfoss Hydronic Balancing & Control
Work streams NP
D
NP
AConfirmed Project Scope
NP
D
NP
A Product and supply chain concepts
frozen NP
D
NP
A
Design Freeze
NP
D
NP
A
Q-release passed
NP
D
NP
A
Project Close Down
Project Milestone Summary Project Milestone Summary Project Milestone Summary Project Milestone Summary Project Milestone Summary
Project Charter (Fact Pack) Updated Bus. Case with Confirmed Targets Updated Business Case Updated Business Case Updated Business Case
X X Defined Milestone Deliverables (This document) Time Schedule Updated Time schedule Updated Time schedule Project Evaluation Report
X X Business Case update (Fact Pack) CAPEX Release plan Updated CAPEX release plan Updated Risk assessment and mitigation actions
Resource Contract (Fact Pack) Risk Assessment and Mitigation Actions Updated Risk Assessment and Mitigation Actions Updated Resource Contract
Quality Targets Updated Resource Contract X X Q-release
Updated Resource Contract Preliminary Plan for Transfer Responsibility to Line Plan for Transfer Responsibility to Line
Design and Development Review Conclusions Environmental Assessment
Design and Development Review Conclusions
Export Limitation Control
Technology assessment Concept IP FtO Preliminary Product Specification Approvals, Certifications & Conformity Declarations Updated Product Specification
IP Protection Goal DFMEA Product Specification
Product Requirement Specification Updated IP FtO IP FtO final
Product Concept Design Documentation IP Protection final
Technology Assessment Product Test and Approvals Plan & Documentation Product Test and Approvals Plan & Documentation
Product Test and Approvals Plan Design Line Approval Product Audit Plan
Updated DFMEA
Supply Chain Strategy Supply Chain Concept Supply Chain Design Sample Certificate Approval Variable Cost Evaluated Against Target
Critical Suppliers Identified PFMEA Updated PFMEA Evaluation of Supply Chain Ramp-up Performance
Supply Chain Technology Assessment Ramp-up Plan including Capacity and Capability Production Process Qualification
Supplier Evaluation, Approval and Agreement Updated Ramp-up Plan
Control Plans (Production)
H+S Assessment
Initial Value Proposition (Fact Pack) Functional Value Proposition Updated Functional Value Proposition Value Selling Package Launch Tracking Report
Customer Insight (Fact Pack) Customer Requirement Specification Global Launch Plan Updated Global Launch Plan Market Quality Report
Competitor Insight (Fact Pack) Launch Goals & Strategy Local Launch Plans Updated Local Launch Plans Updated Value Selling Package
Application Overview (Fact Pack) Updated Target Customers/Early Buyers & Influencers Pricing Structure Technical litterature
Product Positioning Plan for technical litterature
X Deliverables ready to be presented at milestone Deselected deliverable, see argumentation Predeselected for New Product Adaptation Choose Q-release statement: Page 1 of 2
M0
Project
Management
M3
Product
Portfolio
&
Launch
R&D
S/C
M6M5M1
Danfoss project Milestone Plan – NPA: Fast track Projects
Peter Žilnik, Danfoss Hydronic Balancing & Control
Other projects (designed for various complexity of Execution)
• Roadmap
Product Projects
Other Key
projects
HBC Roadmap
Peter Žilnik, Danfoss Hydronic Balancing & Control
HBC Roadmap Mechanism
Peter Žilnik, Danfoss Hydronic Balancing & Control
Project title Project Num: Strategic fit
Type: Category: Project mentor:
Project owner
Project Phase Execution Date Time: Deviations
General Status Costs: As planned
Project progress Scope: As planned
Project Start Project spend Estimate Actual
Expected End Costs/Cash (EUR)
Actual update/review Resources (mandays)
Core Project teamEV
ALU
ATI
ON
EXEC
UTI
ON
Completed from last review /sept.13 Planned until next review/jan.14
Key Milestones between start & end
Project Post-Evaluation report (plan vs. actual in success criteria, business impact, goals, deliverables…): Evaluation & Project closure date:
Short Comment to currect status:
PROJECT CHARTER
Key assumptions Major Risks
Project Aim (goals, scope, objectives, business Impact…)
Key Project Benefits Success criteria
PRO
JECT
DA
TA
Peter Žilnik, Danfoss Hydronic Balancing & Control
Project List
Estimated
cost/cash
Estimated
resoures
(mandays)Started
Link to
Project
Charter
Project
closure
date Key Project BenefitProject Title
Project
owner /
manager
Strategic
fit Category TypeGeneral Status
Expected
conclusion Progress
Peter Žilnik, Danfoss Hydronic Balancing & Control
Thank you!
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