Most product development activities,

particularly within the high tech, automotive,

aerospace & defense, and industrial equipment
industries, span multiple enterprises operating
in different geographies and using different
communication technologies. This complex web
of effort must be harnessed to ensure
program success.
Definition of Program Management
Program management is the business process responsible for coordi-
nating the complex interdependencies among a group of related
product development projects, particularly those governed by a
contract between enterprises. Customer contracts, proposal requests,
or internal business plans drive the program management process.
In turn, the program management process initiates other key product
development processes, establishing oversight of financial, technical,
and scheduling goals.
T o p i c S h e e t : Program Management Page 1 of 4
Program Management
COORDI NATI NG THE DEPENDENCI ES AMONG A GROUP OF REL ATED PRODUCT DEVEL OPMENT PROJ ECTS
Source: Source: J.S. Pennypacker The Value of Project Management,
(2002) Center for Business Practices, PM Solutions
Customer Contract
Other Product Development Processes

Products
Financial Success
Customer Requirements

Proposal Response
INPUTS OUTPUTS
Program Management
Process of coordinating the complex interdependencies among a group of related product
development projects, governed by a contract between enterprises
T OTAL Product Development Cycle Time
An efficient change process
can cut upwards of 33% off
of the typical product
development cycle time. 33%
Real izabl e Benefits of Improved Program Management
An efficient change process
can cut upwards of 33% off
of the typical product
development cycle time.
33%
27%
30%
34%
Greater Return on Investment
in Projects
Improvement in Project Budget
Performance
Improvement in Project Schedule
Performance
10
%
20 30 40 50 60 70 80 90 100
T o p i c S h e e t : Program Management Page 2 of 4
Understanding the Need for Program Management
Program management is paramount when complex products are
being developed across what is typically a complex environment:
multiple enterprises consisting of dispersed teams working on
separate networks, in many time zones, and speaking multiple
languages. Consequently, its nearly impossible for project or program
managers to disseminate and update vast quantities of product data in
a timely manner with any repeatability.
Compounding this problem is the inherent sophistication of product
development information exchange and monitoring. Its difcult to
track individual progress, prevent work in isolation, and halt the use
of out-of-date information, especially for those operating outside the
main work stream. Too frequently faulty decisions, emanating from
erroneous information, result in wasteful duplication of effort, time-
consuming rework, and lost project cycle time.

Benefits of an Optimized Process for Program
Management
A well-dened and consistently executed Program Management
process keeps teams in communication and on target. Typical benets
from improving the program management process include:
Improved Program Visibility
Provide distributed teams visibility to key milestones, dependencies,
and schedule changes
Reduce time spent gathering key program performance metrics
Improved Program Performance
Bring suppliers and partners into the program more quickly
and efficiently
Communicate accurate, up-to-date status information on cost,
schedule, risk, and progress
More Effective Collaboration
Efficiently share data with suppliers, partners and distributed
development teams
Maximize the value of in-person and virtual meetings
Companies with a much more comprehensive
business perspective of program
management are more successful...

Aviation Week
T o p i c S h e e t : Program Management Page 3 of 4
The Solution PTCs Product Development System
An effective program management process involves five major steps
that range from initial program planning through execution and
close.
1. Plan Program. The initial step entails the creation of the program
schedule. The organizational plan is developed, detailing the alloca-
tion of work between internal teams, suppliers and other partners.
Also, the criteria for determining whether the program proceeds into
the execution step is outlined.

2. Manage Execution. Here, the execution of distributed development
projects is monitored by reporting on progress, issues, risks and costs.
Issue resolution and the ow of information are coordinated across
dependent projects. Required program-level decisions are made in
order to manage risk, facilitate communication, and ensure cost targets
are met.
3. Manage External Interactions. In this step, activities consist of
reviewing in-progress designs, validating customer requirements,
managing engineering changes, and submitting PPAPs. Changes to
statements of work and contracts are negotiated and managed. And
reports on contract deliverables (CDRL), supplier deliverables, earned
value, and technical performance measures are prepared.
4. Transition to Steady State. The OEM then receives supplier noti-
cation of completion, and customer acceptance of nal deliverables.
Milestone reports are submitted, and the program is transitioned to
manufacturing, service, and support.
5. Close Program. Reviews are conducted to capture lessons learned
reviews and process documentation is updated as appropriate.
Program Start
Launch
Decision
Plan Program
Proposal Response
END
1
Monitor
Transition to
Steady State
4
Milestone
Reviews
Manage Internal
Execution
2
Close
Program
Customer
Reviews
Manage External
Execution
3
5
NO-Go
Close
Suppliers Only
Continue
GO
END
Program Management Process Flow Chart
2007, Parametric Technology Corporation (PTC). All rights reserved. Information
described herein is furnished for informational use only, is subject to change without notice,
and should not be construed as a guarantee, commitment, condition or offer by PTC. PTC,
the PTC Logo, Pro/ENGINEER, and all PTC product names and logos are trademarks or reg-
istered trademarks of PTC and/or its subsidiaries in the United States and in other countries.
All other product or company names are property of their respective owners.
2079- PGM- TS- 0107
Critical Capabilities
The PTC Product Development System offers the following capabilities
necessary for managing programs effectively:
Web-based collaboration spaces that securely distribute program
information, provide visibility to program deliverables,
and facilitate collaboration among internal and external
program teams
Document management capabilities that include iteration history,
library services, visualization, document templates, and change
notification
Project execution capabilities that include scheduling, execution,
status reporting, milestone, deliverable, and cost tracking
Cross project and initiative reports (e.g., dashboard, scorecards,
bubble charts, pie-charts, stack charts) that provide up-to-date
project data and real time visibility into performance metrics
and project status for any team member or executive to access
Advanced workflow and routing capabilities for automating
review, approval, release, or any custom workflow process
Direct integration from leading CAD authoring tools such as
Pro/ENGINEER

, Cadence

, CATIA

, AutoCAD

, I-DEAS

,
Mentor

, Inventor

, SolidWorks

, and Unigraphics

Visualization and markup of 2D/3D data

T o p i c S h e e t : Program Management Page 4 of 4
PTC Uniquely Qualified
An automated and optimized program management process not only
requires superior technology, it also requires companies to stream-
line their day-to-day processes. Just as important, companies need to
ensure that everyone across the organization understands and adopts
the new processes and technology.

After 20 years of deploying process and technology improvements
across thousands of customer sites, PTC Global Services under-
stands all the components required for companies to achieve their
product development goals. We offer solutions that include the right
blend of process consulting, system implementation, and education
services so customers realize the most value from their PDS investment.
We implement industry best practices that fully leverage PTC technol-
ogy, so companies take advantage of the technologys potential while
avoiding costly customizations. Plus, each of our solutions incorpo-
rates a unique training approach that accelerates the adoption of
new technology and processes.
A top-level status view provided by the Windchill program summary page.