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Project Management
Process Overview – ABB PMA AG in Uster
Peter Schuster / Marco Castoldi / Peter Eck

© Copyright ABB. All rights reserved. Document ID.: Rev.:

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Project Management
„Why we present this?”

Inputs for innovation / to create ideas

• Megatrends
• New technologies from CRCs2, external
• VoC3 or VoB4
• Workshops / Brainstorming / Being innovative every day
• etc...

Goals
• Understanding and tailoring the ABB Gate Model to suit the agility of ELIP business according with best practices
• Securing decision-making based on continued business justification
• Reducing time to market and project risk
• Providing traceability and accountability for realization of benefit and learning from previous experience
• Actively leverages our core capabilities of addressing specific customer needs
• Complying with IRIS certification

Deliverables
• Defined process workflow
• Guidelines
• Templates

2 Corporate Reserach Centers

August 18, 2020 Slide 2 3 Voice of Customer
4 Voice of Business
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Project Management

General Information

The ABB Gate Model serves as the one common business

(investment) decision model across the company. It is provided in
three project related versions:
1. Product Development
2. Technology Development
3. IS1 Projects
4. Strategic Sourcing
This presentation focuses on Project Management specifically
applied by ABB PMA AG in Uster mainly for product and technology
development.

https://go.insideplus.abb.com/tools-and-services/abb-gate-model

August 18, 2020 Slide 3

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Project Management
Innocation funnel process (ABB)

Market STRATEGIC DIMENSION

DOING THE RIGHT THINGS
pull
1. Make, partner or buy
Start-ups 2. Spin-off / Put in drawer
3. License out Partners /
Universities Product
4. Stop it Suppliers New or

$
Management enhanced
Corporate products,
Research Technology / Product Development
Technology services
Management to market
Institutes Product Dev Gate Model

Partners
Technology Dev Gate Model

Technology
push OPERATIVE DIMENSION
DOING THE THINGS RIGHT

August 18, 2020 Slide 4 Goal is to reduce risk during project managment process
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Project Management
Technology and Product Development – Risks vs. Predictability

Pre-studies Technology Product

Development Development
Knowledge ‘De-risking’ Technology ‘De-risking’ Add Predictability

August 18, 2020 Slide 5

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Project Management ABB Org.

Process Structure
PMA Org.

Handover Approvals Handover Tooling

Prepare
Project Change Change
Laboratory FAI Production,
Creation Man. Man.
Quality
Level 2 Scoring
Knowledge Launch Process Quality
and PDM
Managem. Prep. Capability Assur.
Valuation

Materials Optimi- Optimi- Obsoles-

Ideas Design
Processes sation sation cence

Product R&D/Innov. BU PM/R&D Operations Operations BU PM/R&D

Man./Innov. Product Readiness
Product
Innovation - Optimisation Maintenance
Level 1 new
Research Develop- for
and Support and
ment Production
Obsolescence
R&D Support R&D Support

Project Management

August 18, 2020 Slide 6 Project Management principles to be used for all kind of projects
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Project Management
Tailored ABB Gate Model

Concept of regular delivery Classical Approach One main release

To finalize and release a limited number of features before
starting new ones instead of starting work on many features in G0 G2 G4 G5
parallel and finalizing / releasing them late. This is in particular
beneficial if features can be released independently from each PD
other

Remark: Maturity requirements are same for main releases or Project Management R&D Support

multiple small releases.

Multiple small releases
LEAN Gate model

G0 G2 G4 G5

PD

R&D
Project Management
Support

August 18, 2020 Slide 7

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Project Management
Overview of ABB Gate Model stages [G0 ➔ G5]

Investigation Execution

Exploring the Validation of Validation of the

Validation of Project
G0 business G1 business case and G2 G3 manufacturing G4 G5
product handover
opportunity requirements process

Deliverables Deliverables
• Complete business case • Test reports
Deliverables • Project deliverables • DFM Deliverables
• Outline business case (products, documentation) • Certification Plan • First article inspection
• Outline Project description • Complete specification • Supplier Plan • Supplier agreements
• Outline specification • Quotations • User testing report • Pilot production
• Concepts (3D) • Validation criteria • Prototype (functional) • Project Plan (review)
• Outline project plan • Prototypes (SL) • Project Plan (review)
Deliverables (milestones) • Project Plan • Launch Plan Deliverables
• Project order • Launch Release
• Collaterals
• Handover to LSO
• Inventory

ABBhttps://abb.sharepoint.com/sites/LeanProductDevelopment-
August 18, 2020 Slide 8 new2018/LpdDocumentLibrary/Gate%20Model%20Checklist%20for%20Product%20Development%20version%207.1.3.xlsm
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Project Management
Assignment types

Project
• Projects follow the Project Management Process using ABB Gate Model*. Complexity
The ABB Gate Model for technology and product development is managed
by the ABB Gate Model coordination team.
• The main purpose is to ensure fact-based decisions on whether the
projects should be allowed to continue or terminated. The model also
provides transparency regarding the project status and progress.

Small Project Project ABB Gate model

• The procedure and documentation are carried out in accordance with the
regular sales, PM5 and development processes with an option of involve-
ment of project management process.
• If the investment level requires an approval according to Chart 1 or the Small Project • ABB Gate model
project involves multiple location planning, documentation, the reporting („V”- Principle)
is carried out according to the project management process and the
tailored ABB Gate system.
Task Task Task List

• The procedure and documentation are carried out in accordance with the
regular sales, PM and development processes without involving project
management process.

* ABB Gate Model can be neccesarily tailored based on assignment size

August 18, 2020 Slide 9 5 Product Management
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Project Management
Differentiation between propositions / assignment

Criteria Task Small Project Project

Complexity and Risk
Technical Risk Low Medium High

Market Risk Low Medium High

Organizational One site Several sites or 3rd party Several sites and 3rd party

Cost
CAPEX6 < 10 000 CHF 10 000 – 100 000 CHF > 100 000 CHF

OPEX7 < 20 man days 20 –100 man days > 100 man days

Strategy
Business Relevance < 100 000 CHF 100 000 – 1 000 000 CHF > 1 000 000 CHF

Others
Max. 100 Hours or defined in project
Pre-study** None Max. 100 Hours
order

** Pre-Study is not considered in project type definition calculator

August 18, 2020 Slide 10 6 CAPital EXpenditure (company’s physical asset / investments)
7 OPerational EXpenditure (expenditure for a functioning operational business)
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Project Management
Project Type Definition Calculator

Project Risk Analysis

Confidence Level
Complexity & Risk Category Definition Score
(click on drop-downs below)
Technical/Technology Risk The Level of risk with the product cannot be validated High 5

Organisational Complexity Development complexity between BU locations Several sites AND 3rd party 5

Market Risk What is probability of meeting customers SOP date? Low 5

Project Commercial Analysis

Qualification
Commercial Category Definition Score
(click on drop-downs below)
Capital Expenditure (CAPEX) Level of Capital Investment [CHF] < 10,000 1

Engineering Hours (OPEX) Estimated Total Hours [HRS] > 100 5

Business Relevance Expected Sales [CHF] < 100,000 1

TOTAL 22

Project Model = Project

August 18, 2020 Slide 11

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Project Management
Request and ideas tracking sheet in

August 18, 2020 Slide 12

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Project Management
Key Deliverables and Responsibilities in Product Development Projects

Project Customers Product Innovation Research Manu- Quality SCM

Management Sales Management & Dev. facturing
Marketing
1 Project proposal / project plan R C A C A C C C
2 Business / technical requirements R C A C A C C C
3 Project Valuation R C A C A I I I
4 Risk list R C A C A C C C
5 IP8 report C I C C R I I I
6 Verification report R C C C R C A C
Project result including complete
7
documentation R A A C A A A A
List of not met requirements
8
(deviation list) R A A C A A A A

August 18, 2020 Slide 13 8 - Intellectual Property

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Project Management
Project deliverables
Stage Gates / Deliverables Task Small Project Project Documentation Example or Guideline
Milestone / Small Project & Project /

Tracking List PMA/ABB X X X SmartSheet

Start

0 Project Proposal - O X Template

Project Type Analysis X X X Template
R&D Project Valuation (NPV Calculation) - O X Template
Product Requirements X X X Template
Business Case - O X
Initial Project Plan Schedule O X X SmartSheet OR Excel SmartSheet
Target Business

Defined Project Team O O X Template

Risk Identificaiton O O X Template
1 Feasibility (Market, Technical, Operational) O O X
Initial IP Evaluation O X X IP Template
Initial SCM Funktional Checklist - O X Template
Investigation

Gate Model Report - O X ABB Gate Model

Gate Meeting presentation - O X Template
Gate Assessor Report - O X ABB Gate Model
Agreement on Scope - O X ABB Gate Model
Preliminary Study O O X
High level requirements (Market, Technical, Product) X O X Template
Business Case - O X
Project Schedule O X X SmartSheet OR Excel
Target Release

Risk Assessment O O X Template

Initial Competitor Analysis - O X
2 IP Risk Assessment Report O O X IP Template
Final Non Disclosure Agreement for External (NDA) O O X Template
Initial SCM Funktional Checklist - O X Template
Gate Model Report - O X ABB Gate Model
Gate Meeting presentation - O X Template
Gate Assessor Report - O X ABB Gate Model
Start Project Execution - O X ABB Gate Model
Confirmed Business Case - O X
Confirmed Requirements X O X Template
Project Schedule O X X SmartSheet OR Excel
Risk management O O X Template
IP Rist Assessment Report - O X IP Template
Confirm Release

Creating Concept Prototypes O O X

Validating Concept Prototypes O O X
3 Confirmed Technical solution O O X
Prepare Tool Procurement O O X
Initial Market Intruduction Plan - O X
SCM Funktional Checklist - O X Template
Gate Model Report - O X ABB Gate Model
Gate Meeting presentation - O X Teamplate
Gate Assessor Report - O X ABB Gate Model
Confirm Execution - O X ABB Gate Model
Commited Business Case - O X
Project Schedule O X X SmartSheet OR Excel
Risk management O O X Template
IP Risk Assessment Report - O X IP Template
Updated Market introduction Plan - O X
Commit Release

X X X
Execution

Manufacturing Plan incl. Manufacturing Drawings

Service and Support Plan - O X
4 First Articel Inspection O X X Babtecq
Tool Procurement O O X
Tool Sampling O O X
SCM Funktional Checklist - O X Template
Gate Model Report - O X ABB Gate Model
Gate Meeting presentation - O X Template
Gate Assessor Report - O X ABB Gate Model
Agreement for Readyness for Production - O X ABB Gate Model
Product Handover incl. Related Documentation X X X
Project Schedule O X X SmartSheet OR Excel
Risk management O O X Template
Release for sales

IP Risk Assessment Report - O X IP Template

Final Market introduction Plan - O X
Lessons Learned O X X Template
5 Confirmed Service and Support Plan - O X
SCM Funktional Checklist - O X Template
Gate Model Report - O X ABB Gate Model
Gate Meeting presentation - O X Template
Gate Assessor Report - O X ABB Gate Model
Release to Sales - O X ABB Gate Model
All project milestones and/or tasks are closed X O X
Close

6 Lessons Learned Post Project Analysis - O X Template

Close Out X X X

X – Required
August 18, 2020 Slide 14 O – Optional
- – Not required
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Project Management
Project and small project tracking in or in

August 18, 2020 Slide 15

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Project Management
Project order

The document gives an overall view of the project including:

• Project Title
• Project Number
• Type of Project
• Project leader
• Project sponsor
• Expected duration
• Initial situtation
• Project goal / Non-goal
• Major milestones / gates
• Organisation
• Planned budget (CAPEX / OPEX)

Template is available on PMA Management System website.

August 18, 2020 Slide 16

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Project Management
Product requirements

It summarizes the internal and external needs of a project.

Document will be presented and discussed with key stake

holders and signed.

Template is available on PMA Management System website.

August 18, 2020 Slide 17

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Project Management
Project organization chart

The chart gives and overview of key project members and

stakeholder involved in the project.

It also gives some key information of

• project folder name and location
• NORRD PRJ number
• Involved technology center
• Research area
• Receiving business unit

August 18, 2020 Slide 18

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Project Management
CR risk analysis

The chart summarizes all main risks and oppoprtunities with

corresponding mitigation and contigency plan.

Risks are discussed and evaluated by project team members

and stake holders.

The chart is available in ABB Gate model checklist.

August 18, 2020 Slide 19

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Project Management
IP risk register

The chart summarizes all already patented solution that the

project threatened.

Risks are discussed and evaluated by project team members.

The chart is available in R&D Template website.

August 18, 2020 Slide 20

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Project Management
Gate model summary

Stage-Gate model is Gates are

A business decision model with the objective to develop • Investment decision points or go /no-go /kill points
• most valuable new offerings (do the right things) • Quality control check points
• them efficiently and speedy (do the things right) • Resource and action plan approval meetings

Benefits Gates are NOT

• Increase the ratio of successful projects • Automatic project approval meetings
• Creates better products • Only milestones in the execution of a R&D project (there are many
• Reduce time from idea to profit milestones in between the gate meetings to achieve)

Gate decision based on

• Business rationale („does the project create value for ABB?“)
• Readiness check (“quality”)
• Action plans („are we confident in the plan until next gate“)

August 18, 2020 Slide 21

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Project Management
„V” – Principle

The left side of „V”

represents the requirements, and creation of system specifications.
Customer Needs/ Validation/
Verfication /
The right side of the „V” Deliverables
Validation
Acceptance
represents integration of parts and their validation.

Requirements need to be validated first against the higher level Component-, System
Requirements
requirements or customer needs. There is also something as Verification
validation of system models (e.g. FEM). This can partially be done at
the left side also.

Verification is always against the requirements (technical terms) Detailed Design

Validation is always against the real world or the customer needs.

Implementation

Time

August 18, 2020 Slide 22

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Product Development Process
Reference links:

Name Link
ABB Gate Model https://go.insideplus.abb.com/tools-and-services/abb-gate-model

https://abb.sharepoint.com/sites/LeanProductDevelopment-
Project Valuation Tool new2018/Pages/R%26TValuation.aspx
https://go.insideplus.abb.com/corporate-functions/sustainability/sustainability-
HSE Checklist toolbox/product-development/hse-checklist

SCM Functional Checklist https://sites-custom.abb.com/sites/SCM/Gates/SitePages/Welcome.aspx

PMA Management System https://abb.sharepoint.com/sites/PMAManagementSystem/default.aspx

https://sites.abb.com/sites/CorporateResearch/RD%20Templates/Forms/Templa
R&D Template tes.aspx

August 18, 2020 Slide 23