I think even if you're coming from the prison perspective, punishment is not the ideal treatment to convalesce a tribe, or a wrong-doer. But that's beside the point.
In a startup, especially so in a collaborative startup, the idea of "punishing" adults (or children) for not delivering a certain project on time is uncalled for. What do you understand by collaboration? Working towards a common/mutual goal for the benefit of all?
There's no such idealogy of control in a collaboration, yes, there are responsibilities, but not in the way you might 'perceive' as a pre-requisite for dealing with humans. You control robots, not humans.
The C-suite or person who is in charge of the timeline, and the product ought be responsible for the 'failure' to produce. Its best to discuss with the product manager and work out a way to fine tune his or her timetable. Do not forget to advise him on the contigency time-span for such a product to roll off the conveyor belt, if such a case ensue.
Each person in a professional collaboration has his. or her responsibility to assume to.