Essilor - Essilor Project Management

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Project management and R&D

ESSILOR

By Llerena Stéphanie & El Kafi Leïla

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A Quick Presentation
Essilor is a worldwide company, represented in 100 countries, and more than 20000 employees. The firm is the world leader in corrective lenses and the fourth biggest in health equipment in Europe. Essilor bases its competitiveness on research and development. KEY NUMBERS : 50 % of Essilor’s income is generated by products launched less than 5 years ago 30 % of Essilor’s income is generated by products launched less than 3 years ago 550 peoples in 5 R&D centers : France, USA, Singapore, Japan). More than 4200 patents. 120 new products were developed in 2009 In the space of just a few years: the number of new products launched has seen a threefold increase and manufacturing lead times have been halved Powerpoint Templates

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The Project Management
The most important challenge is to conceal the need to plan and control of any organization, specially in case of project, and the desire of freedom and flexibility developed by researchers.

Focus around the client.

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The Project Management
• Planning based on knowledge. Essilor needs a living and decentralized planning based on every knowledge create by every step of the process. • Clear, specific and measurable as possible objectives

• Transversality Cooperation between all the services involved in the creation.

• Control : early warning system By checking the creation of knowledge at every step, Essilor detects and handles occurring problems

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The Project Management
• Risk management Steps in Essilor Risk Analysis Process : 1. List tasks (functions of the project work) 2. Describe potential fault(s) with that task 3. Describe the cause 4. Describe the effect 5. Assess the “capacity for correction” 6. Risk notation 1-10 for • Gravity (of the effect) • Probability (of the cause) • Manageability 7. Multiply values to obtain prioritization value = Gravity x Probability x Manageability The goal of the project risk management process at Essilor is to rank and quantify risks for further management analysis and decision. Essilor applies mitigation (Reducing the probability or consequences of the risk event)

By successfully applying the tools of project management to research and Development, Essilor has managed to become one of the best performing companies in terms of innovation. Powerpoint Templates Page 5

Essilor, a global firm ?
With globalization, internationalization is a major issue for R&D strategy to allow Essilor to stay leader in their domain. In order to allow the best internationalization possible, it’s important to define the context in witch the firm evolved. • Demand One of the most important thing is to define clearly customers' needs all around the world. • Technologies They have many labs partnerships abroad. And a special R&D Department “Disruptive” • Competition They have a Offensive approach : Creation of joint-venture, joint project.. With many countries

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Globalisation of R&D activities
In order to adapt his R&D to his global structure, Essilor have to apply some strategies meant to open the market and the technologies.

Once the market and technologies are reach, is very important to Essilor to gain some competitive advantage in order to stay the leader. Powerpoint Templates Page 7

Essilor and the Variety Model
To gain this advantage, Essilor try to be as closer as possible to the variety model in order to develop economies of scope. • New characteristic product • Large range of products • News services • Information stable and mastered • Planned changed

Variety Model

Economies of Scope

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Conclusion
Essilor’s goal to apply planning management on research and development is achieved. By a living, decentralized and based on knowledge planning,...
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