Reference no: EM131919118

Problem: The ALPHA Timer Development Project (B)

The ALPHA single-block timer development project had not gone exactly as planned. The product development time-to-market was 48 months instead of the planned 30 months, and capital expenditures for the project were at least 30 percent over budget. On the other hand, quality levels for the timer were much better than before, and assembly labor costs were reduced by 25%. Near the end of the first year of the project, difficulties began to arise. Changes in the appliance industry occurred as governmental pressures for more energy-efficient washers favored more horizontal-axis machines, requiring more complex timing devices. A marketing manager complained, "Even if we would have gone to our customers and asked them what they wanted in a new timer, I doubt that they could have told us at that time." It also soon became clear that a more complex, double-block version of the timer would be needed for top-of-the-line washers. This surprised the project team. As a team member explained, "We expected that customers would use more electronics or hybrids in the top-of-the-line appliances. We didn't really realize at the time that our customers still considered mechanical timers to be very important for the top end of the line. The quiet cycle-select was a very nice feature that they wanted to have in the top of the line, and if we couldn't provide that feature in double-block designs, they didn't want to use it anywhere."

An engineer from the program recalled other problems in the development process: "We were testing a new rigid material for the timer housing, which Whirlpool had approved. However, our initial testing showed that it could not be molded at the wall thickness that our supplier told us we could produce. We lost several months in development as a result. The alternative material we finally selected required some major production tool changes that also took more time. Manufacturability problems with the combsets in the timer also caused delays, requiring another four-month redesign." Finally, the first timer samples were delivered to Whirlpool for evaluation. They were rejected. An engineer explained, "We knew all along that Whirlpool was concerned about the damaging effects of SPRAY'n WASH on some plastics. We did SPRAY'n WASH testing here and had all our plastic suppliers do SPRAY'n WASH testing. Unfortunately, we tested the parts using the manual pump version of SPRAY'n WASH, not the aerosol version, which is the problem product. We lost a good six months in development figuring out a new material to use." Project manager Roger Terry had mixed feelings as he walked back to his office after the double-block planning meeting had ended. The meeting had gone well, and it seemed that everyone was enthusiastic about the program. Terry knew that the success of the new double block platform project depended on his ability to analyze the single-block experience and to apply the lessons they had learned.

Questions

1. Assess the outcomes of the Alpha project. Was the project a success?

2. Were the problems encountered in the development project typical, or could they have been avoided?