Mod IV Product Devlopment Team Analysis
EMBA-2016
Managing People -WAC
Analysis and Recommendations of Issues faced by Mod IV Product Development Team
Syed Atif Bukhari- 16040004
Case Facts:
Honeywell produced climate controls and systems.
In 1981 after experiencing losses the company restructured to separate residential and Building Control Divisions (RCD & BCD).
BCD shifted from traditional sequential development system to parallel development system. It housed marketing/sales, manufacturing and design in the same area, and made cross functional teams to accelerate product development.
MOD IV was one of the most ambitious projects undertaken by the new development team. MOD IV wanted to replace the existing BCD motors that accounted for more than 30% of BCD profits.
All 3 functions were involved in MOD IV development, but the project team was facing problems in design, development, meeting timelines as well as facing disagreement on features to be incorporated in it.
1. What are the forces compelling changes at HVAC controls?
The reasons for developing a team-work dynamic came from recognizing changes in competition, technology and customer needs, as well as a concern over profit margin.
From a market of 2 to 3 competitors the HVAC market had now small competitors ranging up to 150. This huge increase in competitors necessitated a faster product development cycle as HVAC needed to retain its product edge and answer to market demands faster. With a cross-functional team HVAC BCD division wanted to reduce a typical product cycle from 38 months to 14 months.
In 1981 the Honeywell showed first time loss, to make sure this never happened again a structural change was implemented to manage different divisions separately, BCD was formed and all departments working for a product (engineering, manufacturing and marketing) were housed in the same building.
In orders to increase profit margins a new motor design was thought that would be more generic, and cater to different customer requirements as
Managing People -WAC
Analysis and Recommendations of Issues faced by Mod IV Product Development Team
Syed Atif Bukhari- 16040004
Case Facts:
Honeywell produced climate controls and systems.
In 1981 after experiencing losses the company restructured to separate residential and Building Control Divisions (RCD & BCD).
BCD shifted from traditional sequential development system to parallel development system. It housed marketing/sales, manufacturing and design in the same area, and made cross functional teams to accelerate product development.
MOD IV was one of the most ambitious projects undertaken by the new development team. MOD IV wanted to replace the existing BCD motors that accounted for more than 30% of BCD profits.
All 3 functions were involved in MOD IV development, but the project team was facing problems in design, development, meeting timelines as well as facing disagreement on features to be incorporated in it.
1. What are the forces compelling changes at HVAC controls?
The reasons for developing a team-work dynamic came from recognizing changes in competition, technology and customer needs, as well as a concern over profit margin.
From a market of 2 to 3 competitors the HVAC market had now small competitors ranging up to 150. This huge increase in competitors necessitated a faster product development cycle as HVAC needed to retain its product edge and answer to market demands faster. With a cross-functional team HVAC BCD division wanted to reduce a typical product cycle from 38 months to 14 months.
In 1981 the Honeywell showed first time loss, to make sure this never happened again a structural change was implemented to manage different divisions separately, BCD was formed and all departments working for a product (engineering, manufacturing and marketing) were housed in the same building.
In orders to increase profit margins a new motor design was thought that would be more generic, and cater to different customer requirements as