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~ Session 2542

Use of Static and Predictive Metrics in R, D & E Management

Donald N. Merino, Ph. D., P. E. Professor of Management and Engineering Management, Stevens Institute of Technology, Hoboken, NJ

Introduction

Metrics are a fundamental part of managing the R, D and E function. Every major R, D and E organization collects and analyzes metrics. Continuous process improvement (CPI) requires metrics. However, as the results of a symposium attended by R, D and E Research Directors of hi-tech companies indicates that no one is satisfied with the metrics they used.

A methodology is presented that shows the relationship between static and predictive metrics and continuous process improvement. A comparison of the pros and cons of static and predictive metrics and experiences are presented.

Findings from SATM and Symposium on metrics in R, D and E

A symposium attended by research directors of leading hi-tech companies in the NJ area on the subject of the use of metrics in Research, Development and Engineering (R, D and E) was held. The symposium was sponsored by the Stevens Alliance for Technology Management (SATM)* .

Some of the observation and lessons learned from this symposium are (Merino, 1993) : - Everyone had an extensive set of metrics and had a TQM process for R, D and E. - No one was satisfied with the metrics they used in R, D &E. - There was a heavy reliance on Static metrics. - There was great interest in Predictive metrics.

In addition, all the companies agreed that for metrics to be effective they must be directly related to the improvement process in which they are embedded. All the companies had Quality Management (QM / TQM) programs for their organizations and in the R, D and E areas they presented. To understand the value of metrics, one must understand how they fit into the QM/TQM, continuous process improvement (CPI) process.

Continuous Process Improvement (CPI) and Metrics

Continuous Process Improvement (CPI) is one of the absolutes of quality (Juran 1988). CPI requires measurements and measurements require metrics. Figure 1 represents a typical approach to CPI and the role that metrics play.

In 1993, the Stevens Alliance for Technology Management consists of AT & T, Bell Labs, Allied Signal R &T, Exxon R & E, Picatinny Arsenal (ARDEC), Engelhardt (R & D). @!iii’1996 ASEE Annual Conference Proceedings } ‘.,+,~ll~’: .

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Merino, D. N. (1996, June), Use Of Static And Predictive Metrics In R, D & E Management Paper presented at 1996 Annual Conference, Washington, District of Columbia. 10.18260/1-2--6368