Deploying Agile for Physical-Product Development: Big Challenges and Effective Solutions

Physical-product firms (manufacturers) face a number of major challenges when they adopt agile for new-product development. Typically, manufacturers embed agile methods into the stages of their stage-and-gate process to yield a
hybrid model
; they also modify agile methods to suit their company and industry. But major questions and challenges still remain. For example,
where and when to use Agile–Stage-Gate
—for which projects and which stages? A tougher issue is how to make
investment decisions
—the go/no go decisions at gates—when everything from the product definition to the project plan is changing. Solutions from leading firms are offered. Other challenges highlighted include
how to get the product right when requirements are constantly changing;
how to
organize
for agile, which
demands dedicated collocated teams
, which are not practical for most manufacturers; the inconsistency between the traditional longer term
project planning
versus agile's two-week sprint plans; and how to scale up agile to larger programs. Actions for implementation suggested by leading firms are outlined.