Go no go decision

Go no go decision
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Methods and techniques

Go no go decision is gate at the end of each stage of the project which is understood as decision of "go" (yes, continue) or "not go" (no, discontinue). Before passing a next gate each stage should have some results delivered[1]. All go-no-go decisions should be mutually agreed by responsible parties before going to next stage of the project. Problems from the previous stages should be known and identified. Before final implementation of the project, it is worth to include tests before final go-no-go decision[2]. Go-no-go decisions are usually made by senior management[3].

Example of go-no-go decisions[edit]

Debelak D. proposes 12 go-no-go matrix in introducing a new product to the market. The reccommendation would be to answer "yes" to each of below questions before running with the new product[4]:

  1. Is it understable for potencial customers what benefit they can get from the product?
  2. Is the product different from other products in the market?
  3. Is the product beneficial for people in the way they want it to be?
  4. Is the packaging of product effective in terms of communication to customer and logistics requirements?
  5. Is the market available for inventor of one-product type company?
  6. Can be product-support costs covered?
  7. Is it easy to target potencial customers?
  8. Is there enough money for this product to make prototypes, models and first production runs?
  9. Is the manufacturer willing and able to cover some start-up costs?
  10. Are the market insiders in your network or can you easy find them to support you?
  11. Does the value of product cover at least four times the manufacturing cost?
  12. Is the market size big enough to cover spending time of expense?

Another more complex example of go-no-go decisions was shown by Chittenden J. during implementaation of outsourcing process[5]:

  1. Gate I Idea
    1. Developing concept,
    2. Preparing high-strategic overview,
    3. Developing insight reports,
    4. Analyzing situation,
    5. Identyfing outsouce potencial.
  2. Gate II Assessment
    1. Identification of current process,
    2. Understanding user needs,
    3. Developing process requirements,
    4. Performing risk assessment analysis,
    5. Developing business case,
    6. Verification of board approval,
  3. Gate III Implementation
    1. Developing outsourcing contact,
    2. Finalising structure,
    3. Negotiating of contact,
    4. Executing the contact.
  4. Gate IV Transition
    1. Developing trainsition plan,
    2. Testing,
    3. Monitoring transition and implementation.
  5. Gate V Management:
    1. Validating rules,
    2. Monitoring performance,
    3. Implementing relationship management process,
    4. Assessing strategic review,
    5. Reviewing outsourcing performance.

Author: Anita Bernacka

Footnotes[edit]

  1. Chittenden J. (2014), p.49-50
  2. Stone T., Lindborg J., Olivier S., Grant D. (2004), p.594
  3. Chittenden J. (2014), p.29
  4. Debelak D. (2005), p.330-331
  5. Chittenden J. (2014), p.49

References[edit]