Stage-gate process is a product development model that divides the progress into stages and gates. The stages are the individual activities carried out from an idea to launch. They include discovery, scoping, building a business case, product development, testing, and launch. Gates are the checkpoints where the developers check progress against predetermined criteria. Stage-gate process has gained widespread use due to the values discussed next.
Stage gate reduces the time taken from conception of an idea to the launch of the product into the market. This is because the developers perform the activities in a particular stage in parallel. The increased speed of innovating a new product provides increases the business’s competitiveness by getting its product to the market first.
The process reduces the inherent risk in new product development by providing a clear structure that developers follow. Each stage produces information about the market, for example demand of the final product. This reduces uncertainties in predicting the expected revenues when the company introduces the product into the market.
The stage-gate process enables businesses to cut non-profitability of non-viable products early in the development process. The company uses gates to check the process against standards. An example is gate three where the after the market information has been gathered and assessed, the company decides whether it is worth going forward to the development stage depending whether the new product will contribute to the company’s profits.
The stage-gate model is able to allocate the scarce resources of the company among the many competing projects by evaluating them according to their profitability and other critical success factors. The model also has a post-launch review stage, which provides feedback on the success or failure of the development process.
Project charter
A project charter is a document that describes a project, states its mission and its measurable goals. It is an important component in project management, which managers regularly refer to throughout the project’s life .
The first purpose of the project charter is to provide the project manager with the written authority to perform his duties in regards to the project. The project manager uses the charter to communicate the project details to the people involved. These may include the project’s goals, constraints, resources, and the stakeholders.
The project charter states the justification for the project. This may include the business case for the project. For example, if the project concerns new product development, the charter will provide the feasibility studies to prove that the product will be cost effective.
The charter provides the scope of the project. This is important because a project without a written scope tends overreach its intention in a process called scope creep. The charter may provide the scope by stating the goals that when achieved, mean that the project is complete.
Contract book
The contract book lays out the plan to meet the goal that the project charter has set. The team members are required to sign the contract book to prove their commitment to the project. Listed below are the purpose of the contract book
- It provides a control tool that helps to keep the project in check by comparing progress with the laid out plan.
The project charter and contract book are related in that the contract book provides in more detail the activities to be carried out to achieve the mission set by the project charter.
The project charter provides the project manager with authority, which he exercises to perform the activities laid out in the contract book.
References
Richter, L. (2011, January 27). What Is a Project Charter? Retrieved from Bright Hub Pm: http://www.brighthubpm.com/project-planning/5161-what-is-a-project-charter/
Stamm, B. V. (2008). Managing Innovation, Design and Creativity. Chichester: John Wiley & Sons Ltd.
