FRITO-LAY INDIA STAGE GATE

PROCESS

FL-India Stage Gate Process : An Introduction

INTRODUCTION:
The India stage gate is a process management tool for
innovations
Resembles a horizontal funnel (Similar to the Gamesa Funnel)
It is segmented into 4 different stages of managing a Project to
completion. The stages are.,
Ideas Stage
Feasibility Stage
Capability Stage
Launch Stage

A reliable process to Manage and Progress innovations.

FL-India Stage Gate Process - The Funneling of

Ideas
The process of managing innovations flows through a horizontal funnel
with Ideas being converted into successful projects flowing through the
defined stages

Idea
Generation
Stage

Launch &
Feasibility Stage Capability Stage Rollout Stage

Post Launch
Review

FL- India Stage Gate Process

WHAT CAN BE EXPECTED OUT OF THE

FL-INDIA STAGE GATE PROCESS ?

FL- India Stage Gate Process - The

Expectations

Time : Speed to Market: Enables decision making on Projects leading to

effective Deliver Speed to Market - Right brand mix to market at the right time

Communications:Enhance & build correct communications at appropriate time

Involvement and Alignment : Enable early Senior Management involvement

Reliability: Reliable tool to manage Innovation. Clearly leads the path to get
things first time right in any project. Top MNCs manage innovation only through a
process e.g.. Unilever, Gamesa, P & G etc..

Disciplined Process: Aimed to discipline the Innovation process

FL- India Stage Gate Process - The Expectations...

Selection: Helps identify and prune ideas and calls for focused innovation

Team Building:Helps team building

Continuity and Competence Bridging:Brings in team continuity and does not

bank on individual competencies

Does not depend on individuals pace and keeps moving the

projects forward based on a set system of review

FL- India Stage Gate Process : Basic Steps

The first fundamental step in the process is getting an IDEA.
More critical than the idea itself, is EVALUATING THE IDEA.

Step 1 : Project Classification : Screening the Potential components

Begin a project by building an aggregate project plan
Identify and CLASSIFY the project once the idea is confirmed
Work out the RESOURCE required to successfully complete the
project

Step 2 : Using the Stage Gate Funnel Process :

Use the Funnel Stage Gate process to deliver the projects on time

Final objective, Lead the project from start to finish

FL- India Stage Gate Process

PROJECT CLASSIFICATION : EFFECTIVE SCREENING OF

IDEAS : THE BASIC STEPS

The Basic Step-1 in screening an Idea - Project Classification

Projects can be classified into different groups based on the Complexity/ Resource/ Technology and
consumer value perception. A combination of all these factors is critical & helps to project project
success
Consumer value perception
Complex
High

New Core
Enabling
Technology Product
Radical

Next
Generation

New Benefits

Improvement

Variant

No Change

Breakthrough

Platform
Project A

Derivative
Project B

Brand Support

Incremental

Project C

Base
Low

Bubble Size
can Indicate:

Input

Output

Resource
Utilization
Expected
Incremental
Sales Value

Simple
Low

Med

0-10

10-20MM

High

$20MM

The Basic Step-2 : Defining Consumer Value Perception of

the Idea
Definition of consumer value perceptions
New Core
Product

Previously
unknown unmet
need -A new product
from or function
which stimulates new
consumer usage and/
or purchase habits to
create a new market
segment .Also includes
product which fulfill
needs previously
met only by products
outside of the category
Scope for new brand
creation

New
Benefits

Previously
unmet
need..
A significant
qualitative change
that delivers new
concepts or benefits
which fulfill
consumers
needs that are
otherwise unmet by
any products in the
market place,Scope
for new brand
creations,
major reposition ,or
major extension of
product family
within
a brand.

Improvement

Variant

Existing need,
Better way -

Existing need,
different way-

Incremental product
change which yields
consumer
discernable
enhancements
relative to existing
product benefits.
Cope for minor
relaunches or
small / single
additions to a
product family.

Offers parity with

competing product
relative to performance,
claims,features or
market positioning.
Scope for minor
relaunches or
small / single
additions to product
family

No Change

Existing need ,
Existing way -Project that does
not result in any
market activity
that the consumers
sees. But improves
internal process
resulting in cost
reductions,better
product quality or
other improvements.
May include
regulatory initiatives.

The Basic Step-3 : Understand the impact of Technology

requirement in Project management
Enabling Technology refers to the product, process and/or packaging
Technology of a Project and its complexities

Enabling
Technology
Radical

Next
Generation

Incremental

Base

First implementation of a technology in a category.Offers sustainable competitive advantage

based on functionality benefits that are proprietary and difficult to reproduce.Scope for
dominating patents

A significant technological change,leading to a major product or process performance

enhancement.Can be derived from cross-industry technology transfer.Scope for primary
patents

Improvement to currently available technology base.Scope for tactical patent opportunities.

Exploitation of enabling technologies widely available to the industry

FL- India Stage Gate Process - Basic steps to screening

of Ideas : Alternatives

One of the sound alternatives to screening successful projects is the FRITOLAY INTERNATIONAL RIGHT-TO-INNOVATE MODEL

Another critical and reliable tool to understand and evaluate project success is
the FRITO-LAY INTERNATIONAL PERCEIVED PRICE INDEX

In FL-India, we are learning to use the above tools for effective Project
Management

FL- India Stage Gate Process

Step-2 USING THE FL INDIA-STAGE GATE FUNNEL

FL- India Stage Gate Process - The Funnel

GATEKEEPER

Idea
Generation
marketing
and technical
concept/
Debating
Screening
Ideas

GATEKEEPER

Capability

Feasibility

Concept
refinement and
prototype
creation

Charter
One page description of proposed
project including objective,
rationale and development routes
Early Commercial Assessment

GATEKEEPER

Product
optimization

Contract
Cross-functional development
plan including project plan as
contract between team & gatekeeper

GATEKEEPER

Launch &
Rollout
Commercialization
Production
Distribution

Launch
Proposal
Launch plan including
CEP approval request

Post
Launch

Post
Launch
Review
Tracks success of and
key learnings from
launched products

FL- India Stage Gate Process

The Stage Gate Funnel : The Review Process and

Documents Proposed for Frito-Lay India

FL- India Stage Gate Process: Review Process

Stage Gate, Gatekeeper and the Review Process:

Funnel gates are business-driven decision points that determines whether a project has met the criteria of the current
funnel phase. The gate process involves four steps:

Step 1:

Review each project as it completes a funnel phase to:

*

Determine the next project activity

Determine future project status

Agree next steps between Gatekeeper and Project team

Step 2:

If project passes the gate, project passes on to next phase.

Step 3:

If project fails the gate, one of three options exist:

Step 4:

1)

Project returns into current funnel phase and project team fixes problem(s) that caused project to fail
gate.

2)

Project returns to earlier funnel stage.

3)

Project is terminated.

If project is terminated under option 3, a project post-mortem may be undertaken to create the opportunity
for cross-team learning and problem avoidance in the future.

FL- India Stage Gate Process: Review Process

Gatekeeper and the Review Process:
GATE KEEPER always must be a very senior personnel in the
BUSINESS
BUSINESSES must always bring in the CEO of the company
to play the role of a GATEKEEPER
GATEKEEPERS role is very critical in decision making
on the status of the PROJECTS

FRITO-LAY INDIA our MANAGING DIRECTOR is ALIGNED to be

GATEKEEPER of the PROJECTS
A common REVIEW GATE PROCESS would require half a day time
once every FORTNIGHT

FL- India Stage Gate Process Document List

Each phase has defined critical documents. The document must be completed and agreed by the
team prior to moving the project to the next phase

Phase

Project Document

Idea Generation

Project Charter

Feasibility

Project Contract

Capability

Launch Proposal

Launch & Rollout

Formal Review Process

FL- India Stage Gate Process

Details of the Proposed Stage Gate Documents

along with Roles; proposed for Implementation by
the Frito-Lay India Business

FL-India Stage Gate Process Documents

Project Charter
Charter
Charter Component

Main Source of Information

Objective
Idea

Marketing

Business Strategy

Marketing Commercial

Project Classification and Contribution to Product

Lines/brand(s)

Marketing, research & Development

Proposed Execution
Consumer Need

Marketing

Consumer Evidence ( Early market research results)

Marketing

Benchmarks

Marketing, Research & Development, Commercial

Key Marketing Issues

Marketing, Business Development

Key Trade Development Issues

Sales, Marketing

Timing

Marketing, Research & Development

Technical Strategy

Research & Development

Competitor Status

Marketing, Comercial

Supply Chain Implications

Purchasing, Planning

Milestones

Project Initiator

Estimated Resource Requirements

Marketing, Commercial, Research & Development,

Manufacturing

Commercial Assessment and Action Standards (including

projected NPS)

Commercial

General Issues

Project Initiator

FL- India Stage Gate Process Documents

Contract Proposal
Contract Proposal Component
Project Overview

Main Source of Information

Marketing Commercial

Objectives
Business Strategy
Launch Date
Project Classification
Consumer Market Research Assessment

Marketing, Market Research

Action Standards for Launch

Marketing, Sales, Commercial

Packaging/Product Look and Feel

Marketing, Research & Development

Trade Assessment

Marketing, Commercial, Sales

Technical Route Defined

Research & Development

Formulation
Process
Packaging
Regulatory/Safety/Environmental Issues
Patent Issues and Opportunities

Marketing, Research & Development, Legal

Marketing, Development, Legal

Scale-up issues

Research & Development, Planning,

Manufacturing

Ingredient, Packaging and Raw Material Sourcing

Research & Development, Purchasing,

Planning
Research & Development, Commercial

Capital expenditure estimate

Lead Factory Response

Manufacturing, Research & Development,

Purchasing, Planning, QA

Margin & Commercial Assessment

Marketing, Commercial, Sales

Resource Requirements and Project Plan

Marketing, Research & Development,

Commercial, Manufacturing

FL- India Stage Gate Process Documents

Project Launch Proposal
Launch Proposal Component

Main Source of Information

Brand Name Confirmed

Marketing

Portfolio Contribution

Markrting, Research & Development

Market Research Results vs. Action Standards

Confirmed

Marketing

Advertising Development Plan

Marketing

Product and packaging Concept Technically Proven Research & Development

- Varieties for launch
Provisional Technical Specification and bills of
materials in Place

Research & Development, Manufacturing

Storage Stability Demonstrated with sufficient

Confidence

Research & Development

Scale-up Assessment

Research & Development

Factory Implementation Issues

Manufacturing

Agreed Supply Chain

Planning

Supplier Approve Status

Purchasing, Manufacturing, QA

Category Assessment and Customer Rationale

Developed

Sales

Full Comercial Asessment

Commercial Marketing

Capital expenditure Request

Commercial, Research & Development,

Manufacturing

Legal and Trademark Clearances

QA

Safety Clearance

QA

Finalised Project Plan

Project Team

FL- India Stage Gate Process

DETAILS ON THE INDIVIDUAL STAGES IN THE

FL-INDIA STAGE GATE PROCESS

FL- India Stage Gate Process : THE IDEA PHASE

IDEA STAGE : IDEA GENERATION

PROCESS

FL- India Stage Gate Process : Idea Generation

IDEA STAGE: Generation : Some suggestions to get Ideas:
In FL-India in the process of idea generation - We have identified different ways
by which ideas can be captured. The critical ones listed are.

Idea Box
Core Group Panels - Housewives panel in FL-1 and FL-2 regions
Recruit / Hire Cookery experts Cookery consultants
Consumer Suggestions
Consumer Panel Insights
Chef Panels/flavor Houses
Ideas from retail , from Complaints
Ideas form Agency

FL- India Stage Gate Process : Idea Generation...

Idea Generation.
Ideas from Creativity experts
Develop Creativity skills - Think out of the box . Train to think Ideas.
Capture the thoughts, reward the thought that becomes reality product
and
Short course on thinking & creativity for R&D and Marketing
Ideas Room & Product showcase
Ideas from other sources
Internet and Ideas from improved observation at work & listening skills
and Ideas from Market Visits/Overseas Visits
Finally our Goal is to Make Idea creation a Way of Life

FL- India Stage Gate Process : Moving the Idea

forward...

The ideas are selected, debated and screened. Following this,

the project now moves into the feasibility phase. Prior to
the movement of the project, the
PROJECT CHARTER IS FILLED OUT...

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CHARTER HIGHLIGHTS
Project Charter : KEY HIGHLIGHTS OF THE PROJECT CHARTER
are..
Product Kitchen Prototype Developments and Benchmarks
Defining the Consumer Link
Consumer Need
Consumer Benefit

Evidenced through early MR : CLT / Qualitative Research /

Innocheck
Discussing Marketing, Trade and Market / Sales Development Issues
Planning for the Resources

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CHARTER HIGHLIGHTS

Project Classification - Classify the project and understand the issues

Addressing commercial issues

Ingredients and RM Purchase
Cost Evaluation
Optimum Fit : Cost Quality
Addressing Legal Issues - Regulatory Issues
Generating competition data

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT FEASIBILITY STAGE

FURTHER TO CLEARING THE CRITICAL HIGHLIGHTS

IN PROJECT CHARTER, THE PROJECT NOW IS
APPROVED FOR MOVEMENT INTO
THE FEASIBILITY STAGE

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CONTRACT HIGHLIGHTS
PROJECT CONTRACT : KEY HIGHLIGHTS OF THE FEASIBILITY STAGE
EVALUATION IS COMPLETING THE PROJECT CONTRACT PROPOSAL. The
activity highlights in this stage are ...

Product Pilot Prototype development

Prototype Consumer Research and setting Product quality standards
Identification of potential suppliers Ingredients, Raw Materials, Packaging
Product Design confirmation with Marketing
Developing Pack Size and Pack Design

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CONTRACT HIGHLIGHTS
Developing Technical Route for Processing
Generate CAPEX Estimates
Lead Factory Demonstration and responses
Product Look / Feel and Quality standards based on consumer approval
Generate Approved supplier data base
Product Design and Process preliminary docket for operations
Patenting Opportunities
Estimate Project Payback and Productivity while assessing the CAPEX

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CAPABILITY PHASE

The Final Stage : CAPABILITY STAGE :

HIGHLIGHTS

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CAPABILITY Phase highlights
Capability Stage is a final confirmatory, optimization stage. During this
stage, the activities are completed and the LAUNCH PROPOSAL
DOCUMENT IS completed. Highlights are ...

Optimization and Refining Stage

Completion of Product Concept and MR
Refining the Final concept and Brand Mix
Refining Manufacturing Process, Scale-up and in-plant process and productivity
confirmation
Development of Sales and Trade Promotions

FL- India Stage Gate Process : Moving the Idea

forwardPROJECT CAPABILITY PHASE highlights

Development of Product Claims and Communications

Completion of shelf life analyses and Transit test
Legal clearance and commercial assessment of the project complete
Final Sales and Distribution Plan ready

This Way the Project begins rolling into the Launch Phase leading to
completion of the project through the systematic stage gate
process..

FL- India Stage Gate Process

GATEKEEPER

Idea
Generation
Initial marketing
and technical
concept

GATEKEEPER

Feasibility

Concept
refinement and prototype
creation

Charter
One page description of proposed
project including objective,
rationale and development routes
Early Commercial Assessment

GATEKEEPER

Capability

Product
optimization

Contract
Cross-functional development
plan including project plan as
contract between team & gatekeeper

Launch &
Rollout
Commercialization
Production
&
Distribution

Launch
Proposal
Launch plan including
CEP approval request

GATEKEEPER

Post
Launch

Post
Launch
Review
Tracks success of and
key learnings from
launched products

FL- India Stage Gate Process

Gamesa Stage Gate and India Stage Gate : A

virtual Comparison

Stage Gate Gamesa is based on a best Practice by dividing the process into
stages of development and monitoring the decision points.

IDEAS
Mgmnt

CONCEPT
development
PROPOSAL
elaboration

BUSINESS
CASE
elaboration

Product
DESIGN

Product
DEVELOPMENT

SCALE-UP and
Production and
Launch
Launching
preparation

The India Stage Gate Process is a version rolling out of the Gamesa
process and the Unilever Funnel model which is simpler and
currently most suitable for the India business...

INDIA STAGE GATE

GAMESA STAGE GATE

Ideas Stage

Similar to S0 ( Idea Management)

Feasibility Stage

Similar to S1,S2 and S3 Stage

Capability Stage

Similar to S4 and S5 stage

Launch Stage

Similar to S6 stage of Gamesa

Funnel

FL- India Stage Gate Process Integrating Project

Innovations

INTEGRATION OF THE PROJECT INNOVATIONS

SKILL WORKSHOP INTO THE INDIA STAGE GATE
PROCESS

The India business has successfully started

integrating the learning's of the Project Innovations
Skill workshop into the stage gate process.

FL- India Stage Gate Process Integrating Project

Innovations
AIMS GRID: We are effectively using the aims grid for all projects by adding the
learnings of the project Innovations workshop into Funnel stage gate process:
.
KEY ACTORS
PURPOSE

Clients
Why ?

Users

What for?

Sponsors

Benefits?

RESULTS

Stockholders

STANDARDS

Deliverables

Quality

Vision of Final &

Cost

interim outputs

Time line
End Point

FL- India Stage Gate Process Integrating

Project Innovations
The Blue Print is an extraordinary tool in enhancing the thought process in Project Management. It
Is a simple and useful tool which helps build the overall plan of work .

FL- India Stage Gate Process

Integrating Project Innovations
Information analyses is a very critical step in good Project Management. Often people tend to
ignore existing information . A simple chart to filter out information known and information sought
is the key to good Project management.

Information Analyses chart

Information Known

Activities

Information needed

When

Who

FL- India Stage Gate Process

Integrating Project Innovations
Understanding Purpose is the root cause for a good job. Hence the power of purpose in
project management assumes great importance

The Power of Purpose

Gives direction
In order to .
Purpose

Creates Ownership
Enables motivation
Provides Focus
Drives Success

Why?

FL- India Stage Gate Process

Integrating Project Innovations
The why net work: Clarity of Purpose
Business
Growth
Improved
Brand image
Improved return

To tap into
unorganized sector

Improved
volumes

Additional
Consumer Base

Improved Market
penetration

Launch Value
Chips

To be # 1 Brand/Snack
Food Company across
all consumer segments

Market
leaderships

FL- India Stage Gate Process

Integrating Project Innovations
A complicated work within the project could be split into simple fragments and within each
fragment,into phases along with defined standards, purpose and key actors leading to results

Overall Work Structure Planning

STRATEGIC
AIMS

STRATEGY

PURPOSE
RESULTS
STANDARDS
KEY ACTORS

STRATEGIC ROUTE
WHAT HAS TO BE DONE
PHASES
PHASE AIMS

PURPOSE
STANDARDS

DETAILED
ACTIVITIES

PHASE
RESULTS
TACTICS

FL- India Stage Gate Process

Integrating Project Innovations
Project Components :Every Project must comprise of an analysis into three critical
components : Cost, Time and Quality
Time

Right Cost
Right Time
Right Quality

Key Dimensions of a Project

Setting & managing standards
Area
Cost
Performance
Time

Subjective
Cheap
As soon as possible

Quantity

As many as possible

Quality

High Quality
As good as possible

Objectives
To Budget
Specific date

Specified amount to
meet purpose
Exact Specification