ABB Gate Model Overview

1. ABB Gate ModelOverview Ulf Westblom

2. Course Objectives • By the end of the course you should: • Have an understanding about the gate model • Be familiar with the different gates • Know what the ABB Gate Model means for you • What are your expectations?

3. Available Training AssessorTraining ABB Gate Model forProject Managers ABB Gate Model ABB Gate Model Fundamentals

4. To ensure that by Gate 5, the organization can release a product ready for sale (PD) or technology ready for transfer (TD) To establish a common terminology To make the status of the projects in the organization visible Why Use the Gate Model • To enhance: • project control, decision making and responsiveness • communication within/between projects • synchronization between different tasks in product development

5. Product Development Technology Development Process Improvment Model Types The ABB Gate Model ABB Gate Model Business Decision Layer ABB Gate Model Project Management Layer ABB Gate Model Execution Layer

6. Overview of the ABB Gate Model Retrospective Investigation of Project Confirm Execution Start Introduction Start Execution Release Product Close Project Start Planning Start Project Start Project Close Project Start Planning Start Execution Release Product Start Introduction Confirm Execution Retrospective Investigation of Project

7. The Gate concept Gx • The roles Basic elements of the ABB Gate Model

8. Gx What is a Gate? • A business decision based on • Benefits • Status • Resources • Technology • Risk • Possible Outcome • Continue project • with or without changes • Terminate project

9. Continue project (with or without changes) GO Gx NO GO Assessment Cancel project Report Gate Meeting Request for more information What is a Gate (cont.)? Gate Process

10. Gates versus Milestones • Gate • A business based decision point to determine whether to continue or terminate a project based on its benefit, status, risk, resource and technology considerations. • Milestone • A project manager’s progress check point • Shows how far a project has proceeded against defined criteria. A milestone enables project management to take corrective actions.

11. Roles • Gate Owner • Project Manager • Gate Assessor • Gate Meeting Participants

12. Gx Assessment Report Gate Meeting ABB Gate Model - Proposed usage Two weeks before the meeting

13. Gx Assessment Report Gate Meeting ABB Gate Model - Proposed usage One week before the meeting

14. Gx Assessment Report Gate Meeting ABB Gate Model - Proposed usage At the meeting Introduction (Agenda, Project Goals, Actions) Gate assessment presentation Discussion Gate decision Actions

15. Gx Assessment Report Gate Meeting ABB Gate Model - Proposed usage After the meeting Minutes of meeting Communication of results Monitor actions

16. Roles in CRC today – Who are suitable • Gate Owner • Project Manager • Gate Assessor • Gate Meeting Participants

17. Why Assessments? • Limited amount of time for decision makers • Good decisions require preparations • Focus on essential information • Makes it possible to cover all aspects, without getting stuck on details • The assessment report presentation gives structure to the meeting • Support the project • Identify areas needing more attention in the project

18. Exercise 1 • Purpose: Understand the profile of a suitable assessor • Task: Discuss and list the requirements on the assessor • Result: Profile of a suitable assessor

19. The Assessor • The Gate Assessor • acts on assignment from the Gate Owner • summarizes project information in an unbiased way • provides recommendation for Gate decision • This requires someone that • has experience from product development, preferably both business and technology • is unbiased with respect to the project • has communicating skills • has networking skills - getting information from stakeholders • has integrity with respect to the Gate Owner as well as to the project • Example of suitable persons • Project managers, product managers, R&D managers, marketing & sales managers, ...

20. Why Use an Assessor External to the Project? • Advantages • Unbiased • No credibility issues if a No-Go proposal ends with a Go decision • No personal dependencies to the project • Pressure on the project to finalize material in time for a gate • Pressure on Gate Owner/Stakeholders to provide information and to make decisions • Disadvantages • Used the wrong way, it may reduce project and product management responsibility • Extra start up time

21. Economic and Practical Considerations • Assessment Economics • Added value • Better basis for decisions • An external, unbiased view of the project • Adds structure to the gate meetings • Costs • 1-2 person-days per gate (<10 kUSD per project) • Business Case • Just one decision made right instead of wrong will probably pay for all assessments in your organization • Practical Considerations • Assessments should be used with common sense • In small projects the Gate Owner can do the assessment • The possibility to combine gates should be used • Make use of available tools – phone conferences/Sametime

22. Exercise 2: Gate Owner • Purpose: Evaluation of a Gate 2 Assessment Report as a Gate Owner • Task: List things that are good and bad about the two assessment reports • Result: Are you prepared to continue investing in the project? Assessment Report for IP Router@ABB Power IT at Gate 2

23. Finding the ABB Gate Model

24. ABB Gate Model in ePIPE

25. Use of Gates within Corporate Research

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