Business Case Playbook



Micron Product Lifecycle Management (PLM)Business Case PlaybookEnsuring a Plan to WinContents TOC \o "1-3" \h \z \u 1.Overview of the Product Lifecycle Management (PLM) Process and the Business Case Playbook PAGEREF _Toc460327543 \h 42.Concept - Activities Prior to the PLM Plan Stage PAGEREF _Toc460327544 \h 52.1Project Type: Robust or Fast Track Project PAGEREF _Toc460327545 \h 63.Details of Preliminary High Level Business Case Required for the Plan Stage Gate (Entering into the Plan Stage) PAGEREF _Toc460327546 \h 94.Stage Gate Reviews PAGEREF _Toc460327547 \h 94.1Overview of a Stage Gate Review PAGEREF _Toc460327548 \h 94.2Business Case Elements Presented at Stage Gate Review PAGEREF _Toc460327549 \h 104.3Stage Gate Decisions PAGEREF _Toc460327550 \h 114.4The Portfolio Management Team - Stage Gate Decision Making Body PAGEREF _Toc460327551 \h 114.5Process Details for Plan Stage PAGEREF _Toc460327552 \h 134.6Activities and Outcomes during Plan PAGEREF _Toc460327553 \h 144.7Overview of Criteria to Exit Plan PAGEREF _Toc460327554 \h 145.Guidelines PAGEREF _Toc460327555 \h 145.1Business Case Element Responsibilities PAGEREF _Toc460327556 \h 145.2Business Case Product Groupings PAGEREF _Toc460327557 \h 156.Business Case Standard Elements PAGEREF _Toc460327558 \h 16Key Concepts: PAGEREF _Toc460327559 \h 176.1Business Case Information Overview PAGEREF _Toc460327560 \h 17Financial Summary Data PAGEREF _Toc460327561 \h 18Risk Assessment Worksheet PAGEREF _Toc460327562 \h 187.Business Case Standard Elements PAGEREF _Toc460327563 \h 217.1Core Team Members PAGEREF _Toc460327564 \h 217.2BLM Recommendation PAGEREF _Toc460327565 \h 217.3Portfolio Roadmap PAGEREF _Toc460327566 \h 227.4Executive Summary PAGEREF _Toc460327567 \h 237.5Boundary Agreement PAGEREF _Toc460327568 \h 247.6Financial Summary PAGEREF _Toc460327569 \h 257.7Value Proposition PAGEREF _Toc460327570 \h 287.8Comparison to Baseline PAGEREF _Toc460327571 \h 297.9Product Group PAGEREF _Toc460327572 \h 317.10Market Size and Opportunity PAGEREF _Toc460327573 \h 327.11Market Position/Share of Market PAGEREF _Toc460327574 \h 347.12Market Trends and Projections PAGEREF _Toc460327575 \h 357.13Go to Market PAGEREF _Toc460327576 \h 367.14Human Capital Requirements (Gaps) PAGEREF _Toc460327577 \h 377.15Critical Risks PAGEREF _Toc460327578 \h 387.16Competitive Position Analysis PAGEREF _Toc460327579 \h 397.17Key Product Features PAGEREF _Toc460327580 \h 417.18Project Dependencies PAGEREF _Toc460327581 \h 427.19Program SWOT Analysis PAGEREF _Toc460327582 \h 437.20Product Technology Roadmap PAGEREF _Toc460327583 \h 447.21Product Derivative Roadmap PAGEREF _Toc460327584 \h 457.22Make Buy Analysis PAGEREF _Toc460327585 \h 467.23Special Manufacturing Requirements PAGEREF _Toc460327586 \h 467.24Special Supply Chain Requirements PAGEREF _Toc460327587 \h 477.25Plan Milestones PAGEREF _Toc460327588 \h 487.26Customer Services and Support Plan PAGEREF _Toc460327589 \h 497.27Core Team: Response PAGEREF _Toc460327590 \h 508.Using the PLM Documents Site PAGEREF _Toc460327591 \h 508.1Adding a Document to the PLM Documents Site PAGEREF _Toc460327592 \h 518.2Updating an Existing Business Case PAGEREF _Toc460327593 \h 539.Dependencies and Data Inputs PAGEREF _Toc460327594 \h 549.1Dependencies PAGEREF _Toc460327595 \h 549.2Inputs to the Marketing Business Elements PAGEREF _Toc460327596 \h 559.3Inputs to the Project & Finance Elements PAGEREF _Toc460327597 \h 5610.Sample Business Cases PAGEREF _Toc460327598 \h 5611.Revision History PAGEREF _Toc460327599 \h 5712.Appendices PAGEREF _Toc460327600 \h 5912.1Input Sources PAGEREF _Toc460327601 \h 5912.2Glossary of Terms PAGEREF _Toc460327602 \h 66Notes: See Section 7: Business Case Standard Elements for information to complete a project’s Business Case Template.Please check the PLM SharePoint site for Frequently Asked Questions (FAQs) and to post any questions for which you do not find the answer in this Playbook.See the Revision History section for a list of changes to the PLM Playbook. Changes are also indicated by a bar to the left of the paragraph. Overview of the Product Lifecycle Management (PLM) Process and the Business Case PlaybookThe (PLM) Process is an enterprise-wide process designed to manage an array of competitive products and technologies from concept approval to end of life through a set of fast, reliable, and timely decisions, based on accurate and complete information, resulting in a profitable portfolio and enabling customer solutions. The PLM process facilitates an enterprise environment by identifying key activities and deliverables that enable proper decision making at each phase of the product’s life cycle.Graphic SEQ Graphic \* ARABIC 1: Product Lifecycle ProcessNote: Because PLM projects often manage products whose scope, complexity, and resources increase from one stage to another, the stages have been designed to overlap with each other. In addition, even though a specific activity may be mapped to a single stage, a project often comprises more concurrent activities that belong to multiple stages and that are owned by different functions.Consistent application of the PLM process across all of Micron’s Business Units (BUs) is essential and will enable: A clear indication of Micron’s prioritiesDefined ownership and accountability for Micron’s productsSpecific product objectives tied into key technology ramps ensuring new technology nodes get launched into the right homesImproved line of sight into the use of Micron’s limited resources and tradeoffsThe business case is a key deliverable of the PLM process. The business case identifies the business need for a product (or multiple products), provides data that shows the need the product(s) satisfies, and how the product aligns to Micron’s strategic business goals. Specifically, the business case captures available market and customer requirements for the proposed product, including the detailed product and technical requirements, financial expectations, and supporting introduction plans. The objective of the business case is to do the following:Project Selection: Institute rigor and common criteria in defining and validating business casesExecution: Provide integration and communication between cross-functional activitiesEnd of Life: Standardize the end of life (EOL) process and plan to eliminate excessive aged inventoryThe Business Case Playbook is intended to guide the PLM Leadership and project core team through developing their business case. Important! The Business Case Playbook is a work-in-progress. It will be updated as the process evolves. Use this link to access the latest version, or go to the PLM SharePoint site to open the latest version of the Business Case Playbook. HYPERLINK \l "Contents" Go to the Table of ContentsConcept - Activities Prior to the PLM Plan StageDuring the Concept phase, the BU is responsible for the work and guides this work with their requirements. Marketing, Sales, or Product Development typically identifies a new product and initiates a new project. For most products, Marketing completes an opportunity analysis and develops a Marketing Requirements document. In addition, Marketing requests a financial analysis with inputs from R&D, Manufacturing, Sales, and Engineering to identify potential development and product costs. If Marketing – either a single business unit, or multiple business units – is satisfied with the financial return and value proposition, they request approval to enter the Plan Stage. If not already identified, a Business Line Manager (BLM) is assigned at this point, and he or she will request a Plan Stage Gate meeting. During the first Stage Gate meeting, a preliminary high-level business case review is required for presentation and a decision whether a project is approved to enter the Plan Stage. Graphic SEQ Graphic \* ARABIC 2: PLM Process with Stage GatesNote: See Using the PLM Documents Site section in the Playbook for information about adding the business case and other business case elements to the PLM Documents SharePoint site (alias: pmdocs).See PLM RACI for more information about specific roles and responsibilities. Go to the Table of ContentsProject Type: Robust or Fast Track ProjectBefore the Plan stage, the BLM decides whether the project is Robust or Fast track. This decision determines the frequency of the upcoming Stage Gate Reviews and the level of detail required in the business case. Graphic SEQ Graphic \* ARABIC 3: Robust vs Fast Track ProjectsIf a project’s development timeline is less than 9 months AND costs less than $10M AND is not a first of a kind product, it is considered Fast Track. For Fast Track projects, Stage Gate 1 and 2 may be combined, and Stage Gate 3 is NOT required.If a project’s development timeline is greater than 9 months OR costs more than $10M OR is a first of a kind product it is considered Robust. For reference, the level of investment includes CapEx, development costs and non reoccurring expenses. First of a Kind (FOAK) products include technology that is considered disruptive or innovative, in contrast to evolutionary products that introduce incremental change that advance an existing roadmap.Considerations when determining whether a product is FOAK, Disruptive or Innovative:Involves new assembly or test technologies that have not been attempted by MicronIncludes new materials, third-party IP, and/or suppliers that lengthen typical qual schedulesIntroduces new market segments and/or drives the creation of a new product roadmapRequires significantly longer R&D investment and/or necessitates new industry standardsProduct architecture creates gaps that require substantive changes to systems that support production operations (CTM, LPI, etc.) and/or the master data modelRequires unusually early customer engagement and/or co-developmentRequires extended and/or complex coordination between engineering, business units, and customers on qualification part requirements and supplyRequires new R&D, Operations, or BU organizational structures to properly coordinate and support the productIf a BLM decides a product is appropriate for a Fast Track project, he or she can create a Fast Track project associated with a parent project (Robust). In this case, the data from the Robust parent project can be used as appropriate for the business case of the Fast Track project. As the parent project’s data is updated (if required), the Fast Track project is also updated or refreshed from the Parent project. However, the Fast Track project may make updates to its business case with its own unique data and be presented by new data that does not affect the Robust parent project. It should be noted that a Fast Track project can be created without an association to a Parent project. The expectations for the Robust and Fast Track business case as shown below.? Note that the requirements are different for “Concept Approval (CA) to Plan” as compared to the requirements from “Plan to EOL”. Additionally, there are different requirements for a Fast Track business case. ? Table SEQ Table \* ARABIC 1: Business Case guideline to enter Plan and those required to move from Criteria Design & Develop through Validate & Qualify Go to the Table of ContentsDetails of Preliminary High Level Business Case Required for the Plan Stage Gate (Entering into the Plan Stage)A business case undergoes a Stage Gate Review to determine whether a project is ready to move into the Plan stage of the PLM Process. To go through the Stage Gate Review, the business case elements must be defined to the level of detail shown in the table above. Go to the Table of ContentsStage Gate ReviewsStage Gate Reviews are held throughout the PLM process to validate and reconfirm the product’s viability in the marketplace; to ensure the associated business plan is realizable; and to obtain financing/resources for the next stage. State Gate Reviews are conducted when:The Business Line Manager (BLM), supported by the product core team, determines that he or she is ready to move to the next stage and/or is seeking additional investment in the projectEvents occur that impact the business case in a significant manner requiring an interim Stage Gate review and decision Go to the Table of ContentsOverview of a Stage Gate ReviewStage Gate Reviews focus on specific entrance criteria associated with each stage of the PLM process. This is displayed in the graphic below. Graphic SEQ Graphic \* ARABIC 4: Stage Gate Entrance Criteria Go to the Table of ContentsBusiness Case Elements Presented at Stage Gate ReviewDuring the Stage Gate Review, key elements of the business case are presented for review. The table below provides a list of all business case elements. While all elements must be complete prior to having a Stage Gate Review, the BLM will only present information they deem appropriate at the Stage Gate Review. An asterisk (*) in the table indicates that data must be entered into the Business Case Structured Data Template (Excel) for PLM analysis.Section Business Case Element PowerPoint Slide Market Market Size and Opportunity Market Opportunity – Volume & Segment Market Opportunity – Market Share Marketing Trends and ProjectionsMarket Opportunity -SWOT Competitive AnalysisValue Proposition Value PropositionGo to Market Requirements Go to MarketProject & Finance Executive Summary BLM RecommendationExecutive Summary* Core Team Members (a subset of the membership is included on the Core Team Members slide in the Business Case Template) Comparison to Baseline Project & FinanceBoundary ConditionFinancial SummaryBoundary Condition*Financial SummaryProduct Requirements Product Overview (Features & Enablers) Key Product FeaturesProduct Dependencies Product Roadmaps Portfolio RoadmapTechnology Roadmap Product Derivative RoadmapCustomer Service & Support Plan Customer Service & Support PlanMake/Buy Analysis Make/Buy AnalysisSection Business Case Element PowerPoint slide Plans & Schedules Special Manufacturing RequirementsSpecial Manufacturing Requirements Special Supply Chain Requirements Special Supply Chain Requirements Resource & Milestone Plan Human Capital Requirements (Gaps)Milestone PlanRisks & Mitigation Plan * Risk & Mitigation Plan (a subset of this information is included on the Critical Risks slide in the Business Case Template) * Excel Spreadsheet for structured dataTable SEQ Table \* ARABIC 2: Business Case ElementsDetails on each element are provided in the Business Case Standard Elements section. Go to the Table of ContentsStage Gate DecisionsDuring the Stage Gate Review for each stage, a decision is made to either Go, No-Go, Decision Deferred or Hold the product. These terms are defined below:Go: Execute against the planNo-Go: Cancel the product; reassign resources; dispose of artifacts/materials, etc.Decision Deferred: The business case has gaps, close the gaps, and reschedule an additional gate review; effort continues against the existing planHold: Stop work on the product; reassign resources; keep artifacts/materials, etc.If it is determined at any step in the process that a market does not exist for the product or that the conditions have changed; Micron will stop working on the product. Additionally, if the conditions have been violated an interim Stage Gate Review is required. This ensures that Micron develops and manufactures products that will sell in the market. Go to the Table of ContentsThe Portfolio Management Team - Stage Gate Decision Making BodyThe Portfolio Management Team (PMT) conducts the Stage Gate Reviews, and renders the Stage Gate decision. The composition of the PMT depends on the type of project presented for review. The Business Line Manager (BLM) determines the project type during the Plan Stage, which is described in A High Level Overview of the Plan Stage section below. Because the Stage Gate Review to enter the Plan stage does not require a project type to already be selected; this Stage Gate Review’s decision-making body is determined by leadership at the time it is scheduled. Portfolio Management Team Composition by Project TypesProject TypeParticipationExpectationsCritical*Memory Solutions Executive StaffGoverns: It is assumed that Critical products have already been approved by the appropriate GM and are shared for visibility within the Executive Staff. Membership: VP Memory Technology and Solutions, GMs, Cross-Functional Executives (Engineering, Operations, Global Supply Chain, Quality, R&D and Sales)Meeting Frequency: MonthlyFacilitator: TBDRobustExecutive PMTGoverns: Robust projects not reviewed by the MS Executive StaffMembership: GMs, Cross-Functional Executives (Engineering, Operations, Global Supply Chain, Quality, R&D and Sales)Meeting Frequency: MonthlyFacilitator: Stage Gate FacilitatorFast TrackDirector PMGoverns: Fast track projectsMembership: BLM, Cross-Functional Director-level (Engineering, Operations, Global Supply Chain, Quality, R&D and Sales)Meeting Frequency: TBDFacilitator: Stage Gate FacilitatorTable SEQ Table \* ARABIC 3: PMT Composition per Project Type*Which products are deemed Critical is at the discretion of the Micron Executive Team. Representatives from Manufacturing Operations, R&D, Sales, and Supply Chain are also invited to all Stage Gate Review.The Business Line Manager (BLM), in conjunction with his or her team, determines when a Stage Gate Review is required. The Stage Gate Facilitator schedules the Stage Gate Review. The BLM, Engineering Technical Manager (ETM), Business Program Manager, Engineering Project Manager, Finance Core Team members, as well as other appropriate members of the Core Team, create the business case for the PMT to review. A High Level Overview of the Plan Stage4873445415600Graphic SEQ Graphic \* ARABIC 5: PLM Process Emphasis on the Plan StageAs previously stated, an approved high-level business case is required to enter the Plan stage – the first stage of the PLM process. See the Details of Business Case Required for the Stage Gate to Enter Plan Stage for more information. Go to the Table of ContentsProcess Details for Plan StageDuring the Plan stage, business case details are further refined to establish a baseline, and sufficient product details are defined to support the design. The Plan stage process steps occur simultaneously, or as orchestrated by the project plan. These steps are shown in the graphic below. Graphic SEQ Graphic \* ARABIC 6: Process Steps Associated with Plan Stage Go to the Table of ContentsActivities and Outcomes during PlanDuring the Plan stage, the Business Case element details are further developed to support justification for the project. The Plan Process activities produce outputs, most of which are inputs into the business case being prepared for the Design Stage Gate. Once the business case element details are complete and ready for the Design Stage Gate, a baseline version is saved. Examples of Business Case Elements are covered in the Business Case Element Standards section of this Playbook. Go to the Table of ContentsOverview of Criteria to Exit PlanThe BLM or Stage Gate Facilitator schedules the Design Stage Gate Review once the business case element details are complete or for a date when they will be complete. The BLM works with the core team to confirm that the latest information is included in the business case and determines any key recommendations or decisions requested. Although all elements are expected to be detailed at the end of the Plan stage, the team must provide an appropriate action plan to complete the element or reasoning for the insufficiency. Go to the Table of ContentsGuidelinesBusiness Case Element ResponsibilitiesThe business case is developed by various core and project team members. However, there is one role accountable for the validity and completeness of the content in each element and one role responsible for developing the element content. The BLM is accountable for all elements. The roles responsible for each element are listed in the table below.SectionBusiness Case ElementPowerPoint slideResponsible MarketMarket & Opportunity Analysis Marketing Opportunity – Volume & SegmentMarketing Opportunity – Market ShareMarketing Opportunity – Trends & ProjectionsMarketing Opportunity – SWOTCompetitive AnalysisBLM/MarketingBLM/MarketingBLM/MarketingBLM/ MarketingBLM/MarketingValue PropositionValue PropositionBLM/MarketingGo to Market RequirementsGo to MarketMarketing/SalesProject & FinanceExecutive SummaryBLM RecommendationExecutive Summary* Core Team MembersComparison to BaselineBLMBLMBLMBLM/FinanceBoundary AgreementBoundary AgreementBLMFinancial Summary* Financial SummaryBLM/FinanceBLMProduct RequirementsProduct Overview (Features & Enablers)Key Product FeaturesProduct DependenciesMarketing/EngineeringProgram Management (PM)Product RoadmapsPortfolio RoadmapTechnology RoadmapProduct Derivative RoadmapBLMBLM/MarketingBLM/MarketingCustomer Service & Support PlanCustomer Service & Support PlanMarketing/SalesMake/Buy AnalysisMake/Buy AnalysisBLM/Supply ChainPlans & SchedulesSpecial Manufacturing PlanSpecial Manufacturing RequirementsSpecial Manufacturing RequirementsSpecial Supply Chain RequirementsSpecial Supply Chain RequirementsSupply ChainResource & Milestone PlanHuman Capital RequirementsMilestone PlanProgram Manager (PM)EngineeringRisks & Mitigation Plan* Risks & Mitigation PlanProgram Manager(PM)* Excel Spreadsheet (Structured Data)Table SEQ Table \* ARABIC 4: Role Responsibility for Business Case Elements Go to the Table of ContentsBusiness Case Product GroupingsThe product scope of a business case may vary. Whether the scope is for only one product, multiple derivatives of products or a large family of products, all business case elements are still required. The Details of Preliminary High Level Business Case Required for the Plan Stage Gate identifies each element, and indicates the level of detail required to provide the product specification, and to justify the product’s development. At a minimum, enough detail is required regarding the market timing, revenue, product costs, schedule, and resources required to determine the development timing, scope, and costs of the project.When the scope of a business case includes many products, the products can be put into logical groups based on their technological relationship, their timeline, and/or their development requirements. Ideally, every MPN is represented in the business case with sufficient justification to authorize design, development, and launch. Go to the Table of ContentsBusiness Case Standard ElementsThe remainder of this document provides instruction on how to complete the Business Case Template. This Business Case Template can also be found on the PLM SharePoint site. As the graphic below illustrates, the Business Case is baselined during the Plan Stage. During the rest of the PLM process, at each stage, the Business Case is revisited and updated as circumstances change. In this manner, the business case is always current and decisions can be informed with current information. See the Using the PLM Documents Site section of this Playbook for information on where the Business Case is stored and for procedures for uploading and updating Business Cases.Graphic SEQ Graphic \* ARABIC 7: Baseline Business CaseKey Concepts:The business case is baselined at Plan Stage Gate and reconfirmed throughout the PLM processThe business case contains a set of common elements to be used for every productThe business case is driven by cross- functional inputsThe business case is the framework to keep team aligned around and confirm the plan to win Go to the Table of ContentsBusiness Case Information OverviewThe business case deliverables are divided into two formats. The first is structured data in Excel and the second is in PowerPoint. On the PLM SharePoint site, click the Training & Templates option to go to the PLM Templates and Process Training page where instructions are provided on how to upload the Business Case Structured Data, as well as links to the most current versions of the Business Case Structured Data Template (Excel) and Business Case Template (PowerPoint).Graphic SEQ Graphic \* ARABIC 8: PLM Templates and Process Training SharePoint SiteImportant: We are continuously improving; please make sure you use the links above for the most up to date version of these templates.The following are views of the structured data that are provided.Financial Summary DataGraphic SEQ Graphic \* ARABIC 9: Financial Data SummaryRisk Assessment WorksheetGraphic SEQ Graphic \* ARABIC 10: Risk Assessment WorksheetIn the Business Case Information Overview section of the business case, complete the fields in the PLM Project Information and Core Team sections of the structured data template. Again, we are continuously improving; so please make sure you use the links provided to ensure that you have the most up to date version of the template.Graphic SEQ Graphic \* ARABIC 11: PLM Project InformationGraphic SEQ Graphic \* ARABIC 12: PLM Core Team MembersNote: Click here to see a list of current PLM Core Team Assigners. Go to the Table of ContentsBusiness Case Standard ElementsThis section provides information about the standard elements that go into a Business Case. The information is presented in the order that this information is used in the Business Case Template and as shown in the table below. Core Team MembersThe Product Core Team slide provides a list of key members of the Core team. The Core Team is critical to ensure the needed cross-functional collaboration to move the project forward and for building a Plan to Win.Graphic SEQ Graphic \* ARABIC 13: PLM Core Team Members SlideThe BLM is responsible for ensuring this slide is updated and reflects the current membership of the core team. The slide is not intended to be an all-inclusive list, however, it is recommended that the BLM uses this list as a starting point. The BLM is responsible for deciding the appropriate members of the team, and the expectation is that members of the team will evolve over the course of the project. The process for securing core team members is to contact the core team assigner for the functional area. The current core team assigners are linked here. Generally speaking, the sooner the core team is identified and functioning, the smoother the overall PLM process is. A RAPID tool for the Core Team is located on the PLM SharePoint site. Go to the Table of Contents BLM RecommendationThe BLM Recommendation slide provides the BLM’s recommendation for the project. The recommendation will be one of the following:Go: Continue to execute against the planNo-Go: Cancel the product; reassign resources; dispose of artifacts/materials, etc.Decision Deferred: The business case has gaps, close the gaps, and reschedule an additional gate review; effort continues against the existing planHold: Stop work on the product; reassign resources; keep artifacts/materials, etc.In addition, the BLM Recommendation slide identifies alternative scenarios (not presented in the business case) that the BLM would like to pursue, even if the additional resources or capital needed have not yet been allocated or approved. Graphic SEQ Graphic \* ARABIC 14: BLM Recommendation SlideThe intent is to have the Portfolio Management Team (PMT) decide whether this project is to move forward with the presented scenario or to change direction pending the ability to close the gaps. While the PMT provides an endorsement for the team to pursue the change, the BLM must, however, first seek BU agreement to the revised Plan and identify any additional resources or capital needed prior to proceeding for Stage Gate approval.Ultimately, the BLM Recommendation slide provides a record of the recommendations that were made regarding the project. Go to the Table of ContentsPortfolio RoadmapThe Portfolio Roadmap slide is intended to show how this product fits with other related products. The slide should include information regarding potential volume, financials, etc., as well as risks and assumptions regarding the product.The Business Case Template provides an example of a Portfolio Roadmap. The BLM can use a format that is appropriate to the Business Unit or area.Graphic SEQ Graphic \* ARABIC 15: Portfolio Roadmap Slide Go to the Table of ContentsExecutive SummaryThe Executive Summary provides a summary of the slides that follow in the Business Case. This is the BLM’s “sales message” to the PMT and should be supported by the balance of the content in the business case. A high level of detail is required at the beginning of Plan (or for approval to enter into the Plan Stage) that includes the following information: Requestor, BLM, Executive Sponsor, Sponsoring Business Unit, Market Need, Objective, Proposed Solution, Estimated Schedule, and Financial Summary.Graphic SEQ Graphic \* ARABIC 16: Executive Summary SlideThe Product Overview information in the Executive Summary should highlight the market need for the program/products, solution, and rationale for approving the project at the Stage Gate reviews. Product Groupings are identified as to provide visibility to the overall scope of the program. The Feasibility and Risks section of the slide should document concerns regarding the projects, such as the impact if Micron does not pursue the project, the boundary agreement, and triggers that should result in an interim review of the business case (before the planned Stage Gate Review), competitive and alternative products, the critical risks (high probability and/or high impact), and the owners for these risks. Go to the Table of ContentsBoundary AgreementThere are events, such as a monthly S&OP review, that result in decisions that may impact the viability of certain business cases. The core team monitors these triggers to determine if any of the conditions have occurred. The Boundary Agreement slide is intended to capture these triggers for key business elements that affect Scope, Financials, and Schedule.Graphic SEQ Graphic \* ARABIC 17: Boundary Agreement SlideEvery effort to understand all business unit needs or potential derivatives for a product being developed should occur in the Concept stage, however, when new derivatives are defined, the business case impact must be reassessed. The BLM can determine if the impact is acceptable to the current products in scope (schedule and costs). If the impact is not acecptable, the BLM will schedule a mandatory interim gate review to determine if the new scope and impact are accepted in the current project or if a separate project with a new business case is needed. If derivatives are identified after a project has entered the Produce and Support stage, the derivatives become a Fast Track project. Go to the Table of ContentsFinancial SummaryThe Financial Summary slide is a summary of the detailed financial analyses developed for the product and is intended to provide an “apples to apples” comparison across programs. The detailed financial analysis data is captured using the Business Case Structured Data Template (Excel).A high level of detail is required at the beginning of Plan (or for approval to enter into the Plan Stage). High level details on the Financial Summary slide include Net Revenue, COGS, Gross Margin/%, Cash COGS/Margin/%, Estimated Development Cost Total, Operating Margin, CAPES, NPV, ROI and Volumes. Please note: Fast track business cases do not require NPV or Opportunity Cost. The same structured data template will be used, but these field will be kept blank. The Financial Analysis Summary slide should also include the assumptions about the summary, such as the expected margins or specific customers if they are critical for the success of the project. Graphic SEQ Graphic \* ARABIC 18: Financial Summary SlideIn the Financial Summary sheet, which is captured using Business Case Structured Data Template (Excel), all product group details are shown, with a subtotal or summary line item as shown in the example below. New Product Financial Analysisin millions $Year 0Year 1Year 2Year 3Year 4Year 5TotalNet Revenue - $9.8 $28.8 $53.1 $20.4 $11.4 $123.5 COGS - 9.3 15.0 30.0 12.5 7.5 74.3 Gross Margin - 0.5 13.8 23.1 7.9 3.9 49.2 GM %0.0%5.0%47.9%43.5%38.9%34.0%39.8%Cash COGS - 4.7 7.5 15.0 6.3 3.8 37.2 Cash Margin - 5.1 21.3 38.1 14.2 7.6 86.4 Cash Margin %0.0%52.5%74.0%71.8%69.4%67.0%69.9%DRAM Development1.54.0---- 5.5 NVE Development1.08.0---- 9.0 Controller Development1.54.5---- 6.0 Prototypes0.51.5---- 2.0 NRE Costs0.5----- 0.5 Total Direct R&D (Development Costs) 5.0 18.0 - - - - 23.0 SG&A (incremental to program) - - - - - - - SG&A and R&D Expenses 5.0 18.0 - - - - 23.0 Operating Margins(5.0)(17.5) 13.8 23.1 7.9 3.9 26.2 Op Margin %0.0%-178.7%47.9%43.5%38.9%34.0%21.2%Cash Operating Margins(5.0)(12.9) 21.3 38.1 14.2 7.6 63.4 Cash Op Margin %0.0%-131.2%74.0%71.8%69.4%67.0%51.3%CAPEX (incremental to program) - - - - - - NPV before Opportunity Cost 14.1 Opportunity Cost . 0.1 5.5 5.8 2.0 1.0 14.3 NPV(5.0)(15.7) 3.7 Discount Rate12% 5.0 16.1 - - - - 21.1 - 0.3 6.7 12.3 3.8 1.6 24.7 ROI17%Units (in thousands of exploded die) - 3,267 10,909 22,857 10,000 6,316 53,349 GB - 104.5 349.1 731.4 320.0 202.1 1,707.2 Wafers (in thousands) - 4.1 13.6 28.6 12.5 7.9 66.7 Rev/Wafer $ - $ 2,400 $ 2,112 $ 1,859 $ 1,636 $ 1,439 $ 1,852 Cost/Wafer - 2,280 1,100 1,050 1,000 950 1,114 Opportunity Rev/Wafer $ - $ 2,310 $ 1,500 $ 1,252 $ 1,159 $ 1,072 $ 1,299 Opportunity Margin/Wafer - 30 400 202 159 122 184 Margin/Wafer - 120 1,012 809 636 489 738 ASP/Unit $ - $ 3.00 $ 2.64 $ 2.32 $ 2.04 $ 1.80 $ 2.32 COGS/Unit - 2.85 1.38 1.31 1.25 1.19 1.39 ASP/GB $ - $ 0.094 $ 0.083 $ 0.073 $ 0.064 $ 0.056 $ 0.072 COGS/GB - 0.089 0.043 0.041 0.039 0.037 0.044 Additional Fields if neededASP/Usable GBGB/UnitNon-Silicon Cost per UnitNon-NAND (or DRAM) Cost per UnitYieldsTable SEQ Table \* ARABIC 5: New Product Financial Analysis Go to the Table of ContentsValue PropositionThe Value Proposition slide confirms the alignment of the product with Micron’s business strategies and goals, as well as identifying when a product is being positioned for strategic market reasons rather than a financial return specifically related to this product. Graphic SEQ Graphic \* ARABIC 19: Value Proposition SlideThe Value Proposition slide captures the following information:Strategic IntentWhy should we invest in this? What are the critical success criteria? What are we trying to achieve with this specific offering?How does the offering/solution enable the brand strategy?What is the risk to the portfolio if we do not invest in this?Market/Customer SelectionSummarize what segments are selected (and not selected) and how they are prioritized How can we leverage the early adopters and reference clients in pilots?Include industries and geographies/countries as well as specific names of high priority clients, specific contacts/job functionsValue PropositionFor: (Buyers and/or influencers in priority customer segments)Who Need: (Customer’s problem)Provides: (Offering/solution & key customer benefits)Unlike: (Primary competitors)Offering Has/Does: (Major points of differentiation that are distinctive and defensible)Value Capture Describe how company makes money through the offering/solution business designWhere will the customer dollars come from?Consider sources: e.g., services, reduction of costs/assets, added value info, standard components, supplier management, improved reliability, build-to-order, or other.Strategic ControlDescribe relative levels of potential strategic control across the offering/solution value chain Consider various sources: e.g., brand differentiation, unique utility (from customer’s perspective), patents, innovative design, supplier relationship, ownership of standard, and channel exclusivity.Scope of ActivitiesWhich offering/solution activities are we selecting to address, based on our capabilities, market permission and competitive advantages, vs. who we will partner with to perform other activities?Graphic SEQ Graphic \* ARABIC 20: Information Captured in the Value Proposition Go to the Table of ContentsComparison to BaselineThe Comparison to Baseline slide documents how well the project is doing against its baseline expectations for schedule and risks.The Comparison to Baseline slide should also include whether the project has changed since its last review (the delta). The three most typical factors affecting the delta are provided at the bottom of the slide: Volume, Costs, Schedule and ASP. The BLM should include other factors, as needed. Graphic SEQ Graphic \* ARABIC 21: Comparison to Baseline SlideAmong the metrics that are required include:Performance to Engineering Plan – percentage of project achieving planned Performance to key customer commitment dates (ES/QS) Financial Performance actual to Plan – comparison of business case (NPV) and (ROI) actual versus Plan baselineIt is suggested that, for comparison purposes, information be provided in graphs to visually represent the changes as the project progresses through the PLM stages. The following graphs provide an example of a financial comparison to baselineTotal Volume Projections and each product GroupDue dates for Engineering Samples (ES) and Qualification Samples (QS)Net Present Value (NPV) and Return on Investment (ROI)Total Revenue and break out by Product GroupGraphic SEQ Graphic \* ARABIC 22: Financial Comparison to Baseline (Example) Go to the Table of ContentsProduct GroupThe Product Group slide provides a financial breakdown by development effort. It provides a derivative of the financial data to tell more of the overall story for the program. For some products, the Value Proposition does not resonate unless it is compared across a line of products, so the intent of the Product Group slide is to tell the story of why this product makes sense for Micron. The most critical data should be included, but the PLM process does not prescribe the specific data. This data does not replace the financial data provided previously. The template provides an example of a slide that a general manager for a Business Unit might expect to see on the Product Group slide, but you should use the format that is used by your Business Unit or department or the format that is most appropriate for the product.Graphic SEQ Graphic \* ARABIC 23: Product Group Slide Go to the Table of ContentsMarket Size and OpportunityThe purpose of the Market Size and Opportunity slide (and the two slides that follow it) is to provide a summary of the key Marketing information about the product.Graphic SEQ Graphic \* ARABIC 24: Market Size and OpportunityThe Volume slide identifies the overall marketing opportunity in terms of Available Market Size – for both Total Available Market (TAM) and Share of the Market (SOM) – growth rate, forecasted profitability, and any market dynamics to watch out for in order to determine the maximum opportunity for the new product(s) and the forecasted sales. The slide should also capture the key assumptions and risks for the project and provides the most common factors (Volume, Costs, and ASP), but the BLM should include other factors, as needed.The information provided in the Market Size and Opportunity slide should follow the format that is currently used by the BU or area. PLM does not prescribe a particular format.For the following example, the Volume and Segment analysis charts use the formats with the segments compared to the product groups. The supporting details identify the basis for projections, volume assumptions (constrained and unconstrained), Segments and Channels are included and how Micron will address each are listed for reference see the table below.Graphic SEQ Graphic \* ARABIC 25: Volume & Segment Analysis ChartsBasis for Projections Products (MPNs / Technology Groups) in ScopeData sourcesVolume Assumptions (constrained or unconstrained – (resources / silicon)Delta view (unconstrained plan entrance vs. plan exit)Opportunity Summary Which segments & sub-segments are targeted for this and for how much?Micron’s position for eachSales / Channels Route to Market – Channels, OEMs, Chip Set VendorsChannels and Revenue split for eachTable SEQ Table \* ARABIC 6: Supporting Details for Volume and Segment Data Go to the Table of ContentsMarket Position/Share of MarketThe Market Position/Share of Market slide identifies the market sizing based on critical market timing, pricing, and positioning. The BLM should design the chart(s) in a way that best represents his or her project. These slides are examples showing the key assumptions and risks for a project and the factors considered important (Volume, Costs, and ASP). Graphic SEQ Graphic \* ARABIC 26: Market Share SlideBasis for Projections Market Share / Positioning / PricingVolume Assumptions (constrained or unconstrained – resources / silicon)Delta view (unconstrained Plan entrance vs Plan exit)Table SEQ Table \* ARABIC 7: Market Position/Share of Market BasisThe following is an example of Market Share information.Graphic SEQ Graphic \* ARABIC 27: Market Share Information (Example) Go to the Table of ContentsMarket Trends and ProjectionsThe Market Trends and Projections slide provides the trends, projects, and assumptions for the product. The details affecting the Total Available Market and pricing assumptions are identified in the trends and projections, and should consider the information shown in the table below.Market Environment Trends Characteristics of Market SegmentsOpportunities and ForcesRate overall Market Attractiveness Basis for Projections Alignment with Corporate Objectives/Business Plan/Capacity Strategy/Legacy StrategyBarriers to Entry List key factors that limit entry and growthSummarize actions to overcome barriers Market / Customer Segmentation, Preferences & Buying Behavior Segments to AvoidProduct interest from other BU’s Leverage of Early AdoptersIndustry/Geo/Country/Customer targetsFulfillment/Technical support / Pricing strategyTable SEQ Table \* ARABIC 8: Considerations for Market Trends and ProjectionsThe Market Trends and Projections slide in the template includes the most common assumptions (volume, costs, and ASP), but the BLM should add other factors, as needed.Graphic SEQ Graphic \* ARABIC 28: Market Trends and Projections Slide Go to the Table of ContentsGo to MarketThe Go to Market slide identifies the market elements that will help ensure that, as a product ramps, Micron will be ready to sell the product into the expected markets and segments. The format for this information will differ by Business Unit or area. The template is not intended to be prescriptive, but provides an example of a Go-to-Market strategy.At a minimum, you must define the elements that are driving the positive ROI analysis for the product Solution Enablers:ElementPlans and ActivitiesOwner(s)Offering Critical CSV enablement – when specs, samples etc.Are committed plans in place to deliver these enablers when neededCritical customer design/sample product and timingBU Marketing/Business Development Routes-to-Market What is the sales / distribution strategy?Are the required sales channels in place? When required?Sales Operations/DistributionBU Marketing Technical Support (pre/post sales for all channels) Pre/post sales for all channels enabled/plannedBU Marketing and Sales OperationsPricing/Terms What is the pricing strategy?Describe the market segment performance positioningBU MarketingOffers and Incentives Would offers/incentives facilitate participation? If so, summarize recommendation and plan to closeBU MarketingPartners and Affiliates (roles, joint marketing requirements) Roles, joint marketing requirementsBU MarketingChannel Enablement Materials Sales (direct and indirect) Support and timing – product collateral and trainingDisty Fulfillment Support and timingBU Marketing and Sales OperationsIntegrated Marketing Communications (Campaign strategy) What is the introduction strategy? What is the overall promotion plan?BU CommTable SEQ Table \* ARABIC 9: Considerations for the Go to Market Strategy Go to the Table of ContentsHuman Capital Requirements (Gaps)The Human Capital Requirements slide provides a summary of the human capital requirements and identifies the human resource needs for the project and potential competency gaps (such as expertise gaps in firmware, logic design, etc.). The slide does not include all human resources for the project, but identifies any additional resources that may be needed, which could be possible gaps for supporting the business case. Capture the data both in terms of man hours and resources (full headcount). Provide comments to explain the purpose for the additional headcount, as well as high-level timing expectations. Add in the unit of measure (weeks/months/total) or designation for man hours required.If you identify a need and cannot acquire the human resources, then something in the financial data will likely need to change to reflect this gap (such as, changes to ROI, schedules, etc.). For gaps, identify what period this gap is referencing – over the life of the project, several weeks/months, etc.Zero (0) in the table means that no additional resources are required or that the required area has enough personnel to cover the need.FunctionMan Hours Req’dResource AddStatusReason for NeedNeed DateCommentsBackend32Front End0NVEDEGACGQualitySalesBUR&DSupply ChainOtherTable SEQ Table \* ARABIC 10: Human Capital Requirement Gaps Identification Go to the Table of ContentsCritical RisksThe Critical Risks slide documents the critical risks to the project. Each area within the business plan will have risks and should monitor and call out these risks in the business plan. Risks are captured using the Business Case Structured Data (on the Risk Assessment tab) for the project, and this slide provides a summary of the most critical risks to the business plan as a function of severity, probability, impact, and difficulty of mitigation. The Critical Risks should include a best known financial impact to the plan if the risk is not resolved and a clear owner who is working on the recovery.In addition, the Critical Risks slide should identify specific competency gaps if they affect the team’s ability to execute on the project.Graphic SEQ Graphic \* ARABIC 29: Critical Risks Slide Go to the Table of ContentsCompetitive Position AnalysisThe Competitive Position Analysis slide provides a comparison of Micron and/or the products with the competition for the product features based on what is required in the market or by the customer. The format of this data will vary by Business Unit or area. At a minimum, the following features are compared: Data Rates, Speed, Capacity, Densities, Packages, Voltages, and Security details. In addition, you must identify the related market share and volumes for Micron and competitors.Potential Customers Customers / Logos Feature Comp 1 Comp 2 Comp 3 Micron Differences / Strengths Data Rate: Speed: Capacity: Density: Voltage: Package: Security: Market Share: Volumes: Notes: Competitive Positioning/Analysis:Competitive offerings, Differentiation Strategy (if applicable) Opportunity Summary Customers targeted for this and for how much?Forecasted profitability of each product / family group by segment?Table SEQ Table \* ARABIC 11: Competitive AnalysisBecause the data that will show the competitive position of the product will differ by product, the Business Case Template provides an example of a competitive position analysis.Graphic SEQ Graphic \* ARABIC 30: Competitive Position Analysis Slide Go to the Table of ContentsKey Product FeaturesThe Key Product Features slide provides a high-level overview of the features, benefits, and impact of the product. You should include specific features for the product and capture items such as products that are new or different for Micron or information that needs to be highlighted for the Micron Executive team.This slide is also intended to prevent scope creep, by keeping features that do not have an impact or benefit from being added to the product.Graphic SEQ Graphic \* ARABIC 31: Key Product Features SlideThe Key Product Features are typically derived from a Product Overview that details the features and enablers for the product, similar to the following example:Product Overview High level overview of product, target cost, & timeline / lifecycle Key Product Specifications CapacitiesCapacity spec(s) Product NumbersProduct number(s)Performance FiguresRead MB/S, Write MB/S Operating ConditionsTemp, humidityPower ConsumptionXmw Reference Design X years warrantyKey Product Features Product Justification Feature 1Feature 2Feature 3Feature 4Feature 5 Feature 6Feature 7Feature 8Feature 9Feature 10 BenefitsxImpactx Table SEQ Table \* ARABIC 12: Source Data for Key Product Features (Example) Go to the Table of ContentsProject DependenciesThe Project Dependencies slide identifies the internal and external enablers for the product and includes two views of the dependencies:Products This Depends On identifies products and/or programs that the project depends on in order to be successful. Examples include: software, firmware, chipsets, sub-systems, controllers, process technology, package technology, etc. Products Dependent On This identifies those products and/or programs that depend on the project. Examples include SSDs, managed memory, modules, etc.It is especially important to identify dependencies for system-level products. Graphic SEQ Graphic \* ARABIC 32: Project Dependencies Slide Go to the Table of ContentsProgram SWOT AnalysisThe Program SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis slide identifies any market or opportunity areas to watch. This comprises a summary of the technology gaps, market, and customer strategy analyses. Be especially conscious of identifying weaknesses and threats to the product, because these can be harder to identify than strengths and opportunities.SStrengths (How does this offering strengthen the Portfolio?)WWeaknesses (What are the areas where the offering falls short? Also include possible improvements, if available.)OOpportunities (Where is the potential to improve this offering's position?)TThreats(What are the areas where the offering or strategy is most vulnerable with respect to Portfolio Analysis? Include who should own these threats.)Table SEQ Table \* ARABIC 13: SWOT AnalysisThe following table provides some considerations for defining a SWOT:Critical Market Timing: What is the window of opportunity?How much lead/lag time vs. competitors?Are there critical milestones for the segments, sub-segments, or customer?Value Chain & Profit Margin : Current and Growth Percentage of portfolio revenue, volume, Technical Support for Marketing Objectives: What are Technical Sales Support activities?What are the Customer Service and Support Activities?What are the Services Planning activities? Table SEQ Table \* ARABIC 14: Considerations for a SWOT AnalysisGraphic SEQ Graphic \* ARABIC 33: Program SWOT Analysis Slide Go to the Table of ContentsProduct Technology RoadmapThe Product Technology Roadmap slide displays the new product’s positioning based on the key features. The Business Case Template provides an example of a technology roadmap and shows the product compared to other products in the different swim lanes. However, you should replace the example with a roadmap that uses the format most commonly used by your Business Unit or area.Graphic SEQ Graphic \* ARABIC 34: Product Technology Roadmap Slide Go to the Table of ContentsProduct Derivative RoadmapThe Product Derivative Roadmap slide is intended to help identify the complexity of the product and the expected revenue across its derivatives. The template provides an example derivative roadmap, but you should use the format that is typically used by your organization. Graphic SEQ Graphic \* ARABIC 35: Product Derivative Roadmap Slide Go to the Table of ContentsMake Buy AnalysisThe Make Buy Analysis slide is used to analyze whether the product or any of its corresponding bill of materials (BOM) elements should be manufactured in-house, purchased from an external supplier, developed through partnerships to bridge competency gaps, etc. Supply Chain, Manufacturing, Engineering and Procurement support this process by identifying approved sources by component or module with the required process, quality, and logistics capabilities. The project team is responsible to assess alternative manufacturing scenarios from a cost, cycle time, and performance perspectiveA high level of detail is required at the beginning of Plan (or for approval to enter into the Plan stage). Throughout the process, it is important to demonstrate a comprehension of the Make or Buy decision. Graphic SEQ Graphic \* ARABIC 36: Make Buy Analysis Slide Go to the Table of ContentsSpecial Manufacturing RequirementsThe Special Manufacturing Requirements slide identifies those unique requirements in the manufacturing process. Use the slide below if there is a need to describe additional requirements.Graphic SEQ Graphic \* ARABIC 37: Special Manufacturing Requirements Slide Go to the Table of ContentsSpecial Supply Chain RequirementsThe Special Supply Chain Requirements slide provides a confirmation that the needs of the supply chain have been considered and that any known special issues that could affect launch or ramp are identified. The ability to support the route plan and volumes is re-assessed as the project progresses through each PLM stage. The expectation is that additional gaps will be identified and added to the Plan Supply Chain Requirements to validate these gaps are being addressed to enable a successful product launch.Graphic SEQ Graphic \* ARABIC 38: Supply Chain Requirements Slide Go to the Table of ContentsPlan MilestonesThe Plan Milestones slide identifies the project’s critical milestones for each product or product group in scope. A high level of detail is required at the beginning of Plan (or for approval to enter into the Plan stage).Currently, this information is extracted from Agile, but, in future, it will be extracted from the Teamcenter key milestone schedule. Graphic SEQ Graphic \* ARABIC 39: Plan Milestones SlideCustomer Services and Support Plan The Customer Service and Support Plan slide is completed to show that the team has considered what it will take to provide service and support to the customer throughout the sales process until the scheduled end of life. The details as outlined on the slide will show that a plan has been comprehended and documented.Graphic SEQ Graphic \* ARABIC 40: Customer Services and Support Plan Slide Go to the Table of ContentsCore Team: ResponseAs an input to the Stage Gate Review, every member of the Core Team should be polled to determine whether a Go, No-Go, Decision-Deferred, or Hold action should be taken. This information is captured on the Core Team: Response slide, which should also include any specific comments that the members of the Core Team may have regarding their decision. The ultimate decision is up to the Business Line Manager, but this tracks concerns called out by the various departments. Graphic SEQ Graphic \* ARABIC 41: Core Team: Response SlideUsing the PLM Documents SiteAll business cases are stored in the PLM Documents SharePoint site (alias: plmdocs). The expectation is that the business case is updated as it progresses through the various Stage Gate reviews. The PLM Documents site can be accessed from the PLM Documents link on the PLM site (alias: plmnew):Graphic SEQ Graphic \* ARABIC 42: Accessing the PLM Documents SiteAdding a Document to the PLM Documents SiteGo to PLM Documents SharePoint site (alias: plmdocs). Click Upload. Graphic SEQ Graphic \* ARABIC 43: Upload DocumentThe Add a Document dialog box displays.Graphic SEQ Graphic \* ARABIC 44: Add a DocumentNote: If you are uploading an updated version of a business case or a business case element, ensure that (a) the file name exactly matches the existing file and that (b) Add as new version to existing file is selected.Click Browse to locate the file on your computer, and then click Open to upload the file. After the file is uploaded, the following form displays:Graphic SEQ Graphic \* ARABIC 45: Upload Successful MessageComplete the fields on the form. An asterisk * indicates that the information for the field is required.FieldActionContent TypeSelect Document.Name*If needed, type a new name for the document. Product Group*Select the appropriate product group, such as Automata or DRAM, from the drop-down list.Project ID*Select the appropriate product group from the drop-down listPLM Stage*Select the appropriate stage for the business case, such as Concept Approval, Plan, Design, etc.Deliverable*Select the appropriate deliverable (business case element) from the drop-down list.BLM*Type the name or e-mail address of the Business Lead Manager for the project.DIDIf applicable, select the appropriate design ID from the drop-down list.ContainsIf the project requires specific parts, select the parts, and then click Add> to move them to the selection box.Table SEQ Table \* ARABIC 15: Document Information FieldsClick Save to save your business case or business case element. Go to the Table of ContentsUpdating an Existing Business CaseGo to PLM Documents SharePoint site (alias: plmdocs). Open the appropriate Product Group to locate your document.Click the ellipses (…) that are to the right of the document name. A preview window, similar to the following, displays.Graphic SEQ Graphic \* ARABIC 46: Click the Ellipses (...) to Preview the Business CaseSelect Edit. The Business Case opens in PowerPoint, and the following message displays:Graphic SEQ Graphic \* ARABIC 47: PowerPoint Read-Only MessageClick Edit Presentation to open an editable version of the Business Case.Make the updates to your Business Case, and save the changes. When you are finished making updates, close the Business Case. You will receive a message about whether you want to check in the document.Graphic SEQ Graphic \* ARABIC 48: Check-in MessageClick Yes. The Check In dialog box displays.Graphic SEQ Graphic \* ARABIC 49: Version Comments Dialog BoxProvide comments about the changes you made to the business case, and then click OK to check the business case back into the PLM Documents library. Go to the Table of ContentsDependencies and Data InputsThis section describes the dependencies between the different business case examples and the data inputs by Information Category. While the Business Elements Standard Elements section included the data inputs for each specific element, if available, this section compares and contrasts the data sources for each category of information.DependenciesThe table below shows the different business case examples and how they are dependent on others. These dependencies are required to be in the project plan.SectionBusiness Case ElementDependencyProject & FinanceExecutive SummaryAll Elements Required to be completeMarketMarket Size and Opportunity AnalysisMarketValue PropositionMarketGo to MarketMarket Size and Opportunity, Value PropositionProduct RequirementsProduct Technology RoadmapProduct Derivative RoadmapGo to MarketProject & FinanceFinancial SummaryMake Buy Analysis, Human Capital Requirements (Gaps), Market Size and OpportunityPlans & SchedulesResource & Milestone PlanProduct Overview, Roadmaps, Manufacturing Plan, Supply Chain RequirementsProduct RequirementsMake / Buy AnalysisProduct OverviewPlans & SchedulesRisks & Mitigation PlanAll Elements Required to be completePlans & SchedulesSpecial Manufacturing RequirementsMake /Buy AnalysisPlans & SchedulesSupply Chain RequirementsMfg Plan and any Special Requirements, Market Opportunity AnalysisProduct RequirementsCustomer Service & Support PlanProduct OverviewTable SEQ Table \* ARABIC 16: Dependencies for Business Case Elements Go to the Table of ContentsInputs to the Marketing Business ElementsThe elements for the Marketing Business Case are made up of the following inputs. The sources for these inputs are provided in Appendix: Input Sources. The Market Case elements are shown on the table below.InputMarket Size and OpportunityValue PropositionGo to MarketBranding Strategy (Alignment)YMarket Segment AnalysisYYMarket Share AnalysisYYMarket ModelYGuard bandsYCustomer AssessmentYYCustomer Segment StrategyYYYCustomer RequirementsYYCompetitive AnalysisYYTechnology GapsYProduct Mix StrategyYYPortfolio StrategyYDocumented / Customer Ecosystem YYSuccess CriteriaYDifferentiation StrategyYTable SEQ Table \* ARABIC 17: Inputs to the Marketing Business Elements Go to the Table of ContentsInputs to the Project & Finance ElementsExamples of inputs for developing the Financial business case elements are defined in the table below. The input sources for these elements are identified in Appendix: Input Sources.The Project & Finance Business Case elements are shown on the table below:Executive SummaryFinancial AnalysisInputExecutive SummaryFinancial AnalysisExplicit reasons for projectYInitial Feasibility ReportYScope, Schedule & BudgetYAll Business Case ElementsYGap ReviewProduct Cost AnalysisYDevelopment Cost AnalysisYPreliminary Financial AnalysisYMargin AnalysisYAssumptions used in the Plan (cost profile, etc.)YManufacturing Resource PlanYSensitivity Analysis Parameters (price, Volume, Cost)YGuard Bands (yield, ASP, Cost, etc.)YValue PropositionYRisk & Mitigation PlanTimeline, Schedule & DependenciesGap Analysis & Closure PlanPlan AssumptionsArchitecture (Tops down engineering Plan sufficient to enable schedule, scope & resource)Financial AnalysisTable SEQ Table \* ARABIC 18: Inputs to the Project & Finance Elements HYPERLINK \l "Contents" Go to the Table of ContentsSample Business CasesFor samples of business cases, see the PLM Documents Site (alias: plmdocs). Go to the Table of Contents Revision HistoryRevision Date: August 23, 2016SectionDescription of Change1Added note that Changes to this version of the PLM Business Case Playbook are indicated by a bar to the left of the paragraph.Updated the Graphic 1 of PLM process. Added note about why the stages overlap each other in the diagram.2Updated the Graphic 2 of the PLM process and stage gate reviews.2.1Updated Graphic 3 of Fast Track/Robust projects. Added text that, for Fast Track projects, SG1 and 2 may be combined and that SG3 is not required4.1Updated Graphic 4 of Stage Gate Entrance Criteria.4.4Updated Graphic 5 of the PLM Process Emphasis on the Plan Stage6Updated Graphic 7 of the Baseline Business Case.7.1Updated Graphic 13 to match the latest version of the Business Case template.7.2Updated Graphic 14 to match the latest version of the Business Case template.7.3Updated Graphic 15 to match the latest version of the Business Case template.7.4Updated Graphic 16 to match the latest version of the Business Case template.7.5Updated Graphic 17 to match the latest version of the Business Case template.7.6Updated Graphic 18 to match the latest version of the Business Case template.7.7Updated Graphic 19 to match the latest version of the Business Case template.7.8Updated Graphic 21 to match the latest version of the Business Case template.7.9Updated Graphic 23 to match the latest version of the Business Case template.7.10Changed Section name from Market Volume and Segment to Market Size and Opportunity to match actual slide title. Also changed wording in first paragraph of Section 7.10 to match as well.7.11Updated Graphic 26 to match the latest version of the Business Case template. Also updated title of Section 7.11 (and supporting text) to reflect actual name of the slide.7.12Updated Graphic 28 to match the latest version of the Business Case template.7.15Changed Section name from Risk and Mitigation Plan to Critical Risks to match actual name of the slide. Updated Graphic 29 to match the latest version of the Business Case template.7.16Updated the name of Section 7.16 from Competitive Analysis to Competitive Position Analysis to match actual name of the slide and updated references to title in the text. Updated Graphic 30 to match the latest version of the Business Case template.7.17Updated Graphic 31 to match the latest version of the Business Case template.7.18Updated Graphic 32 to match the latest version of the Business Case template.7.19Updated Graphic 33 to match the latest version of the Business Case template.7.20Updated Graphic 34 to match the latest version of the Business Case template.7.21Updated Graphic 35 to match the latest version of the Business Case template.7.22Updated Graphic 36 to match the latest version of the Business Case template.7.23Updated Graphic 37 to match the latest version of the Business Case template.7.24Updated Graphic 38 to match the latest version of the Business Case template.7.25Updated Graphic 39 to match the latest version of the Business Case template.7.26Moved Customer Service and Support Plan section to after Plan Milestones section to reflect actual order of the slides in the Business Case template. Updated Graphic 40 to match the latest version of the Business Case template.7.27Added new section on the Core Team: Response slide.8Updated Graphic 42 to show the updated PLM web siteRevision Date: February 9, 2016SectionDescription of Change2.1Added additional information about First of a Kind (FOAK) productsRevision Date: January 22, 2016SectionDescription of Change7.25Updated Plan Supply Chain Requirements slideRevision Date: December 1, 2015SectionDescription of ChangeNotesAdded link to the Revision History1.Replaced the first paragraph with the current PLM process purpose and replaced the PLM process map with the most recent version.2Replaced Graphic 2 with an updated version.2.1Clarified expectations around Robust and Fast Track projects. Also added information that child projects from Robust projects will be Fast Track and can use data from parent for the initial business case.4.2Clarified that all elements must be complete prior to having a Stage Gate Review. The previous version implied that the decision to move into a Stage Gate Review was subjective.4.4Clarified membership expectations for projects (Table 3). Also updated which members of the core team are responsible for creating the business case.5.1Updated Graphic 6 (Process Steps Associated with Plan Stage) to match the current interactive map view of the Plan Stage. Also added a link to the Plan interactive map5.3Clarified expectations regarding expected completeness of business-case elements to exit the Plan stage and move to the Design stage.7.1Replaced Graphic 8 with an updated version8.6(Second paragraph) Added a note that fast track projects do not require NPV or Opportunity Cost so this data will be blank in the structured data template.9.0Added information on how to access the PLM Documents site from the PLM site. Also added screenshot of the correct icon to click to access PLM documents (Graphic 40).AppendixMove the appendix to the end of the document (rather in front of the link to the sample business cases)Revision Date: July 12, 20162.0Added the PLM RACI Go to the Table of ContentsAppendicesInput SourcesInputsSourcesLinks Architecture (top down engineering Plan sufficient to enable schedule scope and resourcesNVE: PE/DE Consolidated by PDTL in POR presentation NVE: used in Plan (cost profile, etc.)NVE: PE/DE Consolidated by PDTL in POR presentation (slide 6) FIN: Excel, Financial Forecast, PowerPointNVE: Strategy (Alignment)Not ProvidedNot ProvidedCompetitive AnalysisNVE: BU Marketing via POP Kick-Off PresentationSSG: Analyst reports, similar horizontal product comparisonsEBU: Competitive analysis reports, analyst reports9. NVE: : Competitive analysis info stored at ESG CI (Information used includes competitive performance benchmarking, die size analysis, competitive cost projections, etc.)Market research/analyst reports from Cost Analysis (Investment, Price, Point) Development, Manufacturing (including resources, Capex, headcount, "big ticket" costs)FIN: TM1, Cognos Connection, Cognos Analyst Cubes, Data Warehouse Development Cost Analysis: Design Engineers - Future should be Engineering Finance (Fred's team)Not ProvidedCost of Recommendations (Product, Sub-components, sourcing design)Not ProvidedNot ProvidedCustomer RequirementsNVE: BU Marketing via POP Kick-Off PresentationSSG: Customer discussions, Marketing/FAE/Sales/BDM feedback, ecosystem partner discussionsEBU :SFDC, customer discussions, info from FAEs/sales and BDMs, info from ecosystem enabling team in BUNVE: Segment StrategySSG: Marketing/FAE/Sales/BDM/Architect feedback.[SSG]: Business unit/sales/support/operations capabilities (e.g., OEM vs End User) EBU:SFDC , customer discussionsNot ProvidedDatasheetNVE: BU APPS team, not available until design review NVE: *B95A*Differentiation Strategy SSG: Competitive analysis reports, market gaps of similar or horizontally comparable productsEBU: Competitive analysis reportsEBU: Competitive analysis info stored at ESG CI ((Information used includes competitive performance benchmarking, die size analysis, competitive cost projections etc.)7. EBU: Sales profitability cubeEcosystem Requirements (3rd party enablers. ie. controller vendors, alliances, consortiums) SSG: Customer discussions, Marketing/FAE/Sales/BDM feedback, ecosystem partner discussionsEBU :SFDC, customer discussions, info from FAEs/sales and BDMs, info from ecosystem enabling team in BUNot Provided End of Life Conditions & Target DateNot ProvidedNot Provided Engineering Resource PlanNot ProvidedNot ProvidedEngineering Wafer AllocationNot ProvidedNot ProvidedExplicit Reason for ProjectNot ProvidedNot Provided Financial AnalysisNot ProvidedNot Provided Gap Analysis & Closure PlanNVE: PE/DE Consolidated by PDTL in POR presentation (slide 9)NVE: Bands (yield, ASP, Cost, etc.)Not Provided Not ProvidedInitial Feasibility Report NVE: FinanceNVE: Training Plan Not ProvidedNot ProvidedLessons Learned Not ProvidedNot ProvidedList of Enabling Projects Not ProvidedNot Provided Make/Buy Analysis Recommendations (Product, Sub-components, Sourcing, Design)Not ProvidedNot ProvidedManufacturing & Equipment Capacity/capability RequirementsNot ProvidedNot Provided Manufacturing & Resource Plan FIN: PLM, MarketingNot Provided Manufacturing Program Plan (Including Geographic view)NVE: LPI/CTM but not well defined up frontFIN: Supply Response, Backend MFGNVE: AnalysisFIN: Excel, Cognos Analyst (SBU SSDs), Financial ForecastNot ProvidedMarket DemandNot ProvidedNot Provided Market Model (FSG,BU)SSG: SSG market modelEBU: EBU Market modelEBU: Market Share AnalysisSSG: TAM/SAM/SOM model, customer discussionsEBU:BU market model , FSG market data, analyst reports, customer QBR decksEBU: Market research/analyst reports Marketing RequirementsNot ProvidedNot ProvidedMarketing Segment AnalysisSSG: Analyst reports, customer discussions, nascent technology analysisEBU: Cognos ,EBU market model, Biz Plan documents, analyst reportsMarket research/analyst reports: EBU Cognos:Sales profitability cube Segment ShareNVE: BU Marketing via POP Kick-Off PresentationNVE: from BUGUI input into systems Not ProvidedNon-MFG Equipment Capacity (capability)Not ProvidedNot Provided NPNBU Marketing not SCNot Provided Ongoing Engineering Support Not ProvidedNot ProvidedOther Business Case ElementsNot ProvidedNot Provided PLM Database Not Provided Not ProvidedPortfolio Strategy (BU & Micron)EBU: Cognos EBU: Sales profitability cube BOMPartly out of NPN-package and route information. Not consistently usedNot Provided Preliminary Financial AnalysisFIN: Excel, Cognos AnalystNot ProvidedProcess Program Plan Not ProvidedNot ProvidedProduct Cost Analysis (Investment, Price, Development, Manufacturing including resources Capex, headcount, “big ticket” costs)FIN: TM1, Cognos Connection, Cognos\Analyst Cubes, Data Warehouse Development Cost Analysis: Design Engineers - Future should be Engineering Finance (Fred's team)Not ProvidedProduct Mix Strategy (Family, MPN, etc.)SSG: Customer discussions, Marketing/FAE/Sales/BDM feedback, analyst reports (which tier of market to address)EBU: Cognos, SFDC, inputs from customers, sales, FAEs ,BDMs EBU Cognos:Sales profitability cube RequirementsNVE: BU Marketing via POP Kick-Off Presentation NVE: Ship & Release PlanNVE: PDTL in POR presentation (slide 19)NVE: Transition PlanNot ProvidedNot ProvidedProduct Warranty PlanNot ProvidedNot ProvidedRevised Product Development PlanNVE: Prochain/PWA from PDTLNVE: & Mitigation Plan Not ProvidedNot ProvidedRMA/Customer Return PlanNot ProvidedNot ProvidedSample PlanNVE: LPI/CTM but not well defined up frontNVE: , Schedule and Budget Gap Review NVE: FinanceNot Provided Sensitivity Analysis Parameters (price, volume, cost)FIN: Excel - simple matrix with range of price and cost changes and what that does to NPV (e.g. +10% ASP changes is $X more NPVNot ProvidedService Plan Not ProvidedNot ProvidedSub-Con PlanNot ProvidedNot Provided Success CriteriaNVE: BU/PE/DE consolidated by PDTL into SCDSSG: Align to corporate goals, SSG business Plan, product line alignmentEBU: BU biz Plan ,Corporate goals, product line Business PlanNVE: ResponseNot ProvidedNot ProvidedTechnology GapsSSG: Competitive analysis, customer discussionsEBU: Competitive analysis reports, analyst reports EBU: Competitive analysis info stored at ESG CI (Information used includes competitive performance benchmarking, die size analysis, competitive cost projections, etc.)Market research/analyst reports from Test Service AgreementNot ProvidedNot ProvidedTimeline, Schedule & DependenciesNot ProvidedNot ProvidedValidation/Tiered Qualification Release PlanNVE: PE via SCD/PCE/PLM3.NVE: Proposition FIN:PLM, Marketing Not ProvidedGlossary of TermsTermDefinition Assumptions used in PlanBasis for price, costs, volumes and discounts applied to financial analysisAverage Selling Price ($) (/unit, weighted)Targeted Selling Price in US$ - For multiple products calculate the total revenue for all products and then divide by the total volume for all products. Calculation: ASP = Net Revenue/Units - with Units clearly defined (e.g. exploded die, SSD Units, etc.)BLMBusiness Line ManagerBranding Strategy Product alignment with brand strategyCapex ($M) (incremental)Capital Expenditure in US$ as required for this product or program. Any Capital expenditures included in parent or other project business cases are be included unless the expenditures were transferred to this projectCash Flow Net income of the product for each year after costs, taxes and disbursementsCash Margin (%)Annual Revenue minus total operating expense/Total Revenue in US$. Calculation: Cash Margin$/Net RevenueCash Margin per WaferRatio of the Cash Margin in US$ divided by the Total Annual Wafer Volume. Calculation: Cash Margin $/WafersCash Margin($)Annual Revenue minus total operating expense (cash cost) in US $. Calculation: Net Revenue-Cash COGS (Cost of Goods Sold)COGS (unit) Cost of Goods Sold. The ratio of the total Direct Cost of the material sold in US$ (Purchased materials, Manufacturing Labor and Manufacturing Overhead) divided by total Annual Revenue in US$. Some detail of assumptions are added (e.g. Non-NAND costs for SSDs, Yield assumptions around Silicon and/or Multi Die PackagesCompetitor AnalysisAssessment of the strengths & weaknesses of current and potential competitors. Provides an offensive and defensive strategic context to identify opportunities and threatsCost Analysis (Investment, Price, Point) Development, Manufacturing (including resources, Capex, headcount, "big ticket" costs)Unit Cost Calculation Details: Wafer Cost, DPW, Die Cost, Package Cost, Assembly Cost, Controller, Yield, RS Cost, Subcon Cost/Yield, OH. This are shown for each product or product group.Development: Cost of all resource labor, equipment, materials and purchases (Capital and non-capital services) used to develop the product. This should be shown for each product or product groupCost ModelAssessment determining the financial attractiveness and viability of product showing full lifecycle costsCustomer Segment StrategyDividing broad target markets into subsets of customers with common needs and priorities to design and implement strategies to target themDatasheet Location of validated performance specs Documented Ecosystem (3rd party enablers (i.e. controller vendors), alliances, consortiums)Defines the go-to-market enterprises such as OEM’s, ODM’s, Distributors, outsourced vendorsEnd-of-life ConditionsMarket and Customer driven end-of-life conditions of a productEnd-of-life DateProjected end-of-life date of a productEngineering Resource PlanHigh level overview of required engineering resources requiredEquipment CapacityMaximum output of equipment in given unit of timeExplicit Reason for ProjectOverview of product value propositionFinancial Analysis (Preliminary)Initial financial analysis completed during Concept Stage and/or as the approval to enter PlanGap Analysis and Closure PlanPlan to close gap between actual product performance and desired performanceGross Margin ($)Annual Revenue minus Cost of Goods Sold for the Annual Sales in US$Gross Margin (%)Ratio of the Annual Profit divided by the Annual Revenue in US$. Profit = Revenue - Cost of Goods Sold. Calculation: GM$/Net RevenueGross Margin per WaferRatio of the Gross Margin in US$ divided by the Total Annual Wafer Volume. Calculation GM$/WafersGuardband Definition of thresholds or clip levels that the factors affecting cost, price and volume are within to meet expectations or to not require an escalated approvalInitial Feasibility ReportInitial analysis to objectively uncover the strengths and weaknesses of product venture, opportunities and threats present, the resources required and ultimately the prospects for successLessons LearnedDocumented findings from analysis Major MilestonesScheduled events that indicate completion of a major deliverable or product advancementMake/Buy Recommendations (Product, Sub-Components, Sourcing, Design)Choosing between manufacturing a product in-house or purchasing it from an external supplier.Manufacturing Program Plan (including Geographic view)Manufacturing resources, activities and schedules to support the product development and introduction. Analysis on capacity, yields, processes, equipment capability and tooling.Manufacturing Resource PlanResources requirements and commitments for all resources needed to develop and launch the product being developed including R&D, Engineering, Admin, Sales, Marketing, Manufacturing, Supply Chain, Procurement and any othersMargin AnalysisMargin Details - Volume, ASP, Unit Cost, Revenue, COGS, GM$, GM% (Sometimes shown in 1Gb or 2Gb UOM). This should be shown for each product or product groupMarketing Requirements DocumentDocument detailing potential market positioning and performance requirements for specific productMPNMaterial Product Number or Marketing Part NumberNPNNew Product Notification generated once the project enters the Design PhaseNPV ($)Difference between the sums of discounted incoming and outgoing Cash Flow in present value (PV) over time. The discount rate is a weighted average cost of capital (after tax) or a higher discount rate over time adjusted for risk, opportunity cost, or other factors. Calculation: t =time of the cash flowi = the discount rate (rate of return that could be earned on investments or opportunity cost of capitalRt = the net cash flow i.e. cash inflow - cash outflow at time tN = the total number of periodsOngoing Engineering SupportTechnical and project training for FACQ & SalesOpportunity Cost This is the measure of the opportunities lost by taking this action. Will depend upon product and decision (e.g. an opportunity cost for a new SSD would be the sales of the raw NAND used in the SSD in the components market. An opportunity cost for a DRAM tech node would be the sales of a previous generation of DRAM that would be replaced by the new tech node)PLM Product Lifecycle ManagementPLM DatabaseCurrent Agile application transitioning to Teamcenter application - Base timeline, route Plan - process steps, physical route Plan, new data regiments, system, customer, compliance requirements - test processes but not sampling plansProduct Development Cost Total costs associated with developing the product including R&D, Engineering, Manufacturing, Quality & Supply Chain Resources (Finance, Sales, Procurement, Administrative not included) and the materials and non-capital equipment used to develop the product prior to productionProduct Release PlanPlanning process that surrounds the release of product. Ensures smooth migration from internal testing to customerProduct Requirements DocumentDocument defining product description, requirements and featuresProduct Transition PlanDescribes the transition Plan for customer(s) in the event a product reaches end of life Product Warranty PlanDescribes the terms and conditions of warranty support post purchase Revenue ($)Annual Sales Revenue in US$. Calculation : Net Revenue (net of Contra Revenues)Revenue/Wafer Ratio of Annual Sales Revenue in US$ / Total Wafer VolumesRisks and Mitigation PlanProcess of developing options and actions to enhance opportunities and reduce threats to product plans and objectivesRMA/Customer Return PlanDescribes the Return Material Authorization process implemented for a particular product ROI (%)Return on Investment - Total Profit in US$ divided by the development cost in US$. Calculation: ROI = Total Annual $ Profit - Cost of Development / Cost of DevelopmentRoute Includes individual process steps and physical route Plan locationsSample PlanPlan for product sampling release to customer for testScope, Schedule, and Budget Gap ReviewBrief statement of the scope, problem or proposal, background information, concise analysis and main conclusionsSensitivity Analysis (price, volume, cost)Preferably a table or matrix identifying the levers that will affect Price, volume or cost and the level of impact of each of these have over the life of the product or development effort.Service PlanProcess to support customer’s service requests after purchaseSG&A Costs ($) (Incremental)Sales, General & Administrative costs that are going to be increasing as a result of the product being introducedSelling, General & Administrative Expenses (SG&A) includes expenses related to marketing, promoting and distributing products and services. Other major items are corporate administrative expenses such as accounting and finance, planning, human resources, research and development, and maintenance of administrative facilities. Only incremental SG&A should be added here. Examples would be additional Sales or Technical Customer Support resources required to service and sell in the product's market.Ship Release Material PlanPlan for product shipping release to customer for test or saleStage Gate Scheduled point at which development can be examined and any important changes or decisions relating to costs, resources, profits, schedule etc. can be made Success CriteriaDescribes the refined product requirements and qualification criteria a product will have to meetTest Service AgreementCustomer required product certification/testing services Tiered Qualification Release PlanPlan for product maturity qualification and releaseTimeline/SchedulePlan for carrying out a process or procedure, giving lists of intended events and timesTotal WafersAnnual Sales Volume defined in Wafer unit of measureValidation/Qualification PlanA customer / product validation Plan including customer research method, schedule, cost and resourcesValue PropositionThe strategic intent and market influencers, need and differentiators for the products being developed. A promise of benefits to be delivered by product and impacts resulting from product in the market place Volume (Gb (bits) or GB (Bytes))Annual Sales Volume defined in Gigabyte (Gb) unit of measure. Calculation: GB=8*Gb Gb=1024*MbVolume (Unit)Annual Sales Volume defined in unit of measure other than wafer or Gb if needed ................
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