The Stage Gate process: A powerful method used for efficient project management
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| − | When it comes to achieving a successful project – The main foundation is efficient project management. A simple method to secure this is by executing projects through a Stage-Gate process. The Stage-Gate process is method that guides a project from discovery to launch in an organized and efficient manner. It involves breaking down the project into stages which are separated by gates. The gates are used to decide whether or not the project should proceed into the following stages. The Stage Gate process was developed by Dr. Robert G. Cooper and presented in the book 'Winning At New Products' in 1986 | + | |
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| + | When it comes to achieving a successful project – The main foundation is efficient project management. A simple method to secure this is by executing projects through a Stage-Gate process. The Stage-Gate process is method that guides a project from discovery to launch in an organized and efficient manner. It involves breaking down the project into stages which are separated by gates. The gates are used to decide whether or not the project should proceed into the following stages. The Stage Gate process was developed by Dr. Robert G. Cooper and presented in the book 'Winning At New Products' in 1986 | ||
| + | . Dr. Robert G. Cooper’s developed process is implemented by more than 80% of the companies in North America and the implementation of the process worldwide is growing as companies are pursuing to develop their innovation competences. <ref>S. J. Edgett, Idea‐to‐Launch (Stage-Gate®) Model: An Overview,</ref> <br /> | ||
'''The Stage Gate process include five stages that the project must proceed through:''' <ref> Cooper, R.G, 1990, Business Horizons Stage-Gate Systems: A New Tool for Managing New Products </ref> <br /> | '''The Stage Gate process include five stages that the project must proceed through:''' <ref> Cooper, R.G, 1990, Business Horizons Stage-Gate Systems: A New Tool for Managing New Products </ref> <br /> | ||
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'''2. Business Case Preparation'''<br /> | '''2. Business Case Preparation'''<br /> | ||
'''3. Development'''<br /> | '''3. Development'''<br /> | ||
| − | '''4. | + | '''4. Testi |
| + | ng & Validation'''<br /> | ||
'''5. Full Production & Market Launch'''<br /> | '''5. Full Production & Market Launch'''<br /> | ||
Each stage is created to acquire information for the purpose of the project to proceed into the next stage. The five stages are characterized by specific activities that must be accomplished within each stage. To expedite the project’s progression towards the next stage, the activities are completed in parallel in the different departments within each stage. These activities are intended to acquire knowledge about the project while increasingly reducing ambiguity and risk. The outcome of the activities becomes the foundation for the so called ‘’gatekeepers’’ to decide whether to maintain investment or to kill the project. The main advantage of implementing the Stage Gate process is increased efficiency in new product development. The process is making it possible for companies to evaluate their project through the stages and efficiently manage their resources and minimizing potential risks. The result of this is that the companies will manage to produce superior products with reduced mistakes. The purpose of this wiki article is to demonstrate how the Stage Gate process can be used as a powerful method for efficient project management. Furthermore, the stages and gates will be described. | Each stage is created to acquire information for the purpose of the project to proceed into the next stage. The five stages are characterized by specific activities that must be accomplished within each stage. To expedite the project’s progression towards the next stage, the activities are completed in parallel in the different departments within each stage. These activities are intended to acquire knowledge about the project while increasingly reducing ambiguity and risk. The outcome of the activities becomes the foundation for the so called ‘’gatekeepers’’ to decide whether to maintain investment or to kill the project. The main advantage of implementing the Stage Gate process is increased efficiency in new product development. The process is making it possible for companies to evaluate their project through the stages and efficiently manage their resources and minimizing potential risks. The result of this is that the companies will manage to produce superior products with reduced mistakes. The purpose of this wiki article is to demonstrate how the Stage Gate process can be used as a powerful method for efficient project management. Furthermore, the stages and gates will be described. | ||
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Revision as of 13:47, 17 February 2023
Developed by DTU student, Lillian Nygaard
Contents |
Abstract
Big idea
When it comes to achieving a successful project – The main foundation is efficient project management. A simple method to secure this is by executing projects through a Stage-Gate process. The Stage-Gate process is method that guides a project from discovery to launch in an organized and efficient manner. It involves breaking down the project into stages which are separated by gates. The gates are used to decide whether or not the project should proceed into the following stages. The Stage Gate process was developed by Dr. Robert G. Cooper and presented in the book 'Winning At New Products' in 1986
. Dr. Robert G. Cooper’s developed process is implemented by more than 80% of the companies in North America and the implementation of the process worldwide is growing as companies are pursuing to develop their innovation competences. [1]
The Stage Gate process include five stages that the project must proceed through: [2]
1. Preliminary Assesment
2. Business Case Preparation
3. Development
4. Testi
ng & Validation
5. Full Production & Market Launch
Each stage is created to acquire information for the purpose of the project to proceed into the next stage. The five stages are characterized by specific activities that must be accomplished within each stage. To expedite the project’s progression towards the next stage, the activities are completed in parallel in the different departments within each stage. These activities are intended to acquire knowledge about the project while increasingly reducing ambiguity and risk. The outcome of the activities becomes the foundation for the so called ‘’gatekeepers’’ to decide whether to maintain investment or to kill the project. The main advantage of implementing the Stage Gate process is increased efficiency in new product development. The process is making it possible for companies to evaluate their project through the stages and efficiently manage their resources and minimizing potential risks. The result of this is that the companies will manage to produce superior products with reduced mistakes. The purpose of this wiki article is to demonstrate how the Stage Gate process can be used as a powerful method for efficient project management. Furthermore, the stages and gates will be described.
Big idea
Description
The model
The stages are divided in five different stages from 1 to 5. Every stage is an individual step in the process each designed to gather enough information to transfer the project into the following stage. When looking at every individual stage, they all have different purposes. The stages have their own activities that need to be accomplished in order to get the stage to a gate. The actives within each stage are completed in parallel in the different departments to expedite the project’s progression towards the next stage. These activities are intended to acquire knowledge about the project while increasingly reducing uncertainty and risk the project might endure. The outcome of the activities becomes the foundation for the stage to progress into a gate where the purpose is to decide whether or not to maintain investment or to kill the project. As the stages progress, the departments are expanding to create organizational adaptability. The cost of each stage increases gradually as the team develops to ensure organizational preparedness and alignment and to encourage market adoption of the new product development.
Stages
The stages are divided in five different stages from 1 to 5. Every stage is an individual step in the process each designed to gather enough information to transfer the project into the following stage. When looking at every individual stage, they all have different purposes. The stages have their own activities that need to be accomplished in order to get the stage to a gate. The actives within each stage are completed in parallel in the different departments to expedite the project’s progression towards the next stage. These activities are intended to acquire knowledge about the project while increasingly reducing uncertainty and risk the project might endure. The outcome of the activities becomes the foundation for the stage to progress into a gate where the purpose is to decide whether or not to maintain investment or to kill the project. As the stages progress, the departments are expanding to create organizational adaptability. The cost of each stage increases gradually as the team develops to ensure organizational preparedness and alignment and to encourage market adoption of the new product development.
Gates
Through the process, there are five gates that the stages are acquired to go through in order to launch the project. The gates work as a decision point where the leaders from top management consider the information gathered from the previous stage and decide to either maintain investment or to kill the project. The gates are designed to secure the quality of the project as it progresses. Furthermore, the gages are providing the opportunity for companies to evaluate their project, in the current state and efficiently manage their resources and minimizing potential risks. The gates simply transfer the project safely into the next stage.
All gates are different but structured in a similar way consisting of the following:[3]
1. Deliverables: The information gathered from the previous stage is presented to the top management or the so called ‘’Gatekeepers’’.
2. Criteria: The project is evaluated in contradiction to a predefined collection of success criteria which are applied on all new product projects. The success criteria are proven to seek out winning products and is a powerful tool determine whether the project is suitable to progress. The Stage Gate process involve measuring the project against six success criteria which are the following:
- Strategic Fit
- Product and Competitive Advantage
- Market Attractiveness
- Technical Feasibility
- Synergies/Core Competencies
- Financial Reward/Risk
3. Output: When the information from the previous stage is presented and the project is measured against the success criteria, the Gatekeepers are responsible for making a decision regarding the project. The decision must be one of the following:
- Go
- Kill
- Hold
- Recycle
The decision that the Gatekeepers rule on will determine the outcome and if the project will proceed through the gate and into the next stage.
Application
provide guidance on how to use the tool, concept or theory and when it is applicable
Limitaions
critically reflect on the tool/concept/theory. When possible, substantiate your claims with literature
Annotated bibliography
Provide key references (3-10), where a reader can find additional information on the subject.
