Business Operating System (BOS)one team - one goal - one process

Leadership Criteria

Leaders need to show competence in the following aspects of these models:

• Ability to articulate all pieces of the Business Model (BOS)

• Ability to establish clear vision

• Ability to clearly communicate vision

What is BOS?

The Business Operating System is the collection of

global business processes which reflect best practices

in the company. The BOS documentation has been

developed by teams from around the world and is

applicable to all facilities. Effective immediately, BOS

replaces all existing operating procedures.

What is BOS?

All BOS processes are:

• Easy to understand and implement

• Value-added

• Interlinked

• Reflective of best practices

• Designed with a minimalist approach & documentation

• ISO-9000 compliant

The objective is to create One Team, One Goal and One Business Operating System.

What is BOS?

Quality Policy

Procedures, Work Instructions, Specifications, Standards

Records

Level 1

Level 2

Level 3

Level 4

PL

US

MO

S

PO

S

LO

S

BOS

Processes

How

Evidence

The Four Pillars of BOS

ExceedingCustomer Expectations

Vision / Mission / Values

Customer Requirements

Quality Cost Delivery

Lead

ership

Op

erating

System

LOS

Pu

rchasin

g

Op

erating

System

POS

Pro

du

ct

Lau

nch

System

PLUS

Man

ufactu

ring

Op

erating

System

MOS

Leadership Operating System (LOS)

• Group Processes

• Financial Processes

• Human Resources Processes

• Information Technology

• Health, Safety, and Environment Processes

Total 38 Level 2 Procedures

Purchasing Operating System (POS)

• Supplier Selection Processes

• Commodity Strategy

• Supplier Development

• Purchase Ordering Process

Total 11 Level 2 Procedures

Manufacturing Operating System (MOS)

People Plant Materials Process Verify• JCMS Series • Audits

• Containment• New Plant

Start Up• Launches

• Bill of Material Reviews

• Balance Out

• Total Productive Maintenance

• Process Capability

Total 35 Level 2 Procedures

Product Launch System (PLUS)

Ideation Proposal DevelopmentDesign

Verification Validation Production

Create future products & strategies

Define new product and/or business

Develop products & procedures

Design & verify the product & process

Validate the product & process

Prepare for production

Total 20 Level 2 Procedures

Why Do We Need BOS?

“Most companies have good people. The companies that win over the long term have the best processes.”

---- Peter Drucker

Why Do We Want a Common Global Business Operating System (BOS)?

• Our goal is to be the finest supplier in the world. This requires a common BOS.

• Our customers are asking for a consistent company around the world. This requires a common BOS.

• A common BOS allows for easier growth as everyone has one system to learn.

• One common company wide system allows for easier and more effective transfer of people.

• A common operating system reduces variation. Variation is waste. Waste costs money. Our customers do not want to pay for waste anymore than we do.

Why Do We Need BOS?

• BOS allows us to solve a problem once and transfer

the solution to all plants, not solve the same problem

multiple times.

• Good processes, consistently applied, lead to

outstanding products, best practices, superior

quality and low cost.

Why Do We Need BOS?

"This year we are "raising the bar", and striving for greater process focus and discipline, innovation and continuous improvement. By doing this, we’ll be delivering higher levels of value to our customers, consumers and shareholders – and ensuring the long-term success of this organization. We all want our company be the premier supplier in the world, so please join me in making the roll-out of our new Business Operating System a great success."

---, President and C.O.O.

Who is Affected by BOS?

• Each employee in every location worldwide is affected by BOS.

• The development of a common set of global business processes affects the way in which we conduct

business.

• Not everything has changed. BOS was constructed by reviewing all company procedures currently in

place to identify the best practices for use globally.

Who is Affected by BOS?

BOS documentation will have a direct affect on the following groups:

• Executive Leadership: The quality management and review processes have been established for the consistent evaluation of all facilities globally.

• Human Resources: The hiring, training and evaluation processes for all employees have been established to ensure global consistency.

• Health, Safety & Environmental: The processes required to safeguard the people, facilities and communities in which we work have been established globally.

• Information Technology: The consistent usage of information technology has been developed for global application.

Who is Affected by BOS?

BOS documentation will have a direct affect on the following groups:

• Finance: The accounting and commercial processes of the company have been established to support the needs of a global organization.

• Purchasing: The sourcing, procurement, and supplier development processes have been developed to integrate the needs of a global company with a global supply base.

• Engineering: A common product and process development process has been developed to allow for a consistent approach in the launch of all products globally.

• Manufacturing: The processes required to establish common practices at each manufacturing facility have been established.

What is the BOS Implementation Plan?

Date Activity

August 20xx BOS procedures finalized

August and September 20xx BOS rollout and training

October 1, 20xx BOS implementation begins

October 20xx - September 20xx All locations audited to BOS procedures

October 1, 20xx All locations certified to XXX based on audit of BOS procedures

What is PLUS?

PLUS is the standard method for developing and launching new

products.

What is PLUS?

• Combines best practices from development centers around the world.

• Helps us meet all quality system requirements.

• Streamlines documentation.

• Drives timing based on customer milestones.

• Connects to a robust set of tools (e.g. costing & project management software, etc.)

• Defines roles, responsibilities, and deliverables for members and suppliers.

Why Do We Need PLUS?

As we have grown into new markets and products, we have outgrown

our old systems. PLUS is a way of delivering new products of any

type, to any customer.

Why Do We Need PLUS?

• Help us achieve our 0 - 100 - 30 success criteria.

• Create synergy as we grow in customers, cultures and products.

• Help us manage complete interior programs.

• Open communication channels.

• Provide a flexibility for new products and types of programs we haven’t yet dreamed of.

Why Do We Need PLUS?

• Simpler – ~160 tasks vs.. 330– 6 phases vs. 9

• More Complete– All forms, procedures, etc.

developed and linked

PIP/EPM:

• Emphasis on process and procedure– Timing templates and

process

• Electronic media– Accessible worldwide– Easier updates

PDP:

Improvements over former processes:

PIP/EPM PIP/EPM Product Introduction Process / Engineering Program ManagementProduct Introduction Process / Engineering Program Management

AdvancedEngineering

ProductionProductionPreparation

CustomerQuote

ProductionValidation

ProductionTooling &Equipment

ConceptSection

Product &ProcessDesign

DesignValidation& ProcessVerification

ProductionRelease

00 2211 33 44 55 66 77 88 99

00 2211 33 44 55IdeationIdeation LaunchLaunchValidationValidationDesign &Design &

VerificationVerificationDevelopmentDevelopmentProposalProposal

Tooling & ProcessProve-OutIdeation

Concept Development

Design Development

ProductEngineering

ProductValidation Product

NPD/PDP NPD/PDP New Product Development / Product Development ProcessNew Product Development / Product Development Process

11 22 33 44 55 66 77

PLUS Groups by Phase

0 1 2 53 4Ideation Proposal Development Design &

VerificationValidation Launch

Manufacturing

Management

Sales & Marketing

Finance

Program Management

Advanced

Engineering

Purchasing

Quality

Why Adopt PLUS?

• Cooperate on complete programs

• Open communication channels

• Ease transfer of people

• Be more flexible

Why Adopt PLUS?

• Emphasis on process and procedure

• RYG reporting

• Supplier Roles (Extended Enterprise)

• Procedure review teams for continuous improvement

• Intranet based training

Best Practices:

PLUS Development Team

PLUS was created by a cross-functional team from most disciplines. Team members include:

PIP/EPM Product Introduction Process / Engineering Program Management

PMH Project Management Handbook

Advanced Engineering

ProductionProductionPreparation

CustomerQuote

ProductionValidation

ProductionTooling &

Equipment

ConceptSection

Product &ProcessDesign

DesignValidation& ProcessVerification

ProductionRelease

0 21 3 4 5 6 7 8 9

0 21 3 4 5Ideation LaunchValidationDesign &

VerificationDevelopmentProposal

21 3 4 5 6

Development &Capturing New

BusinessPilot

PhasePlanning

PhasePrototyping

PhaseProcurement

PhaseMass Production

Phase

PIP/EPM Product Introduction Process / Engineering Program Management

Advanced Engineering

ProductionProductionPreparation

CustomerQuote

ProductionValidation

ProductionTooling &

Equipment

ConceptSection

Product &ProcessDesign

DesignValidation& ProcessVerification

ProductionRelease

0 21 3 4 5 6 7 8 9

0 21 3 4 5Ideation LaunchValidationDesign &

VerificationDevelopmentProposal

Tooling & ProcessProve-OutIdeation

Concept Development

Design Development

ProductEngineering

ProductValidation Product

NPD/PDP New Product Development / Product Development Process

1 2 3 4 5 6 7

0 1 2 53 4Ideation Proposal Development Design &

VerificationValidation Launch

Tactical Business Plan

Project Kick-Off

Development Release

Production Release

Customer Part Submission

Start ofProduction

Targeted Business Plan

• Advanced Development

• Concept Development

• Targeted Business Plan / PD-1

• Product Definition

• Make vs.. Buy (POS)

• Supplier Selection and Sourcing Board (POS)

• Program Business Planning & Quote

• Project Kick-Off

• Product Change Management (LOS)

• Appropriation Request (LOS)

• Product Development

• Process Development

• Quotation Request & Review (POS)

• Product Design

• Process Design

• Product & Process Verification

• Tooling & Equipment Procurement (POS)

• Prototype Build

• Supplier Process Sign- Off Evaluation

• Supplier Part

• Submission

• Pre-Production Build

• Materials System Setup

• Process Sign-Off Evaluation

• Customer Part Submission

PLUS Overview

Phase Exit Review

Phase Exit Review

Phase Exit Review

Phase Exit Review

Phase Exit Review

StageReview

Project ReviewsStageReview

PrototypeRelease

Launch Performance

Report

Feasibility Assessment

DesignReview

DesignReview

Deliver Assemblies to Customer

DesignReview

Ideation Proposal Development Design & Verification

Validation Launch

AdvancedDevelopment

Define the Advanced Development Project

Review Project Plan

Research & Analysis

Create & Propose Directions & Feasibility

Opportunity Assessment

PrepareProject Findings

Close Project

AdvancedDevelopment

Define the Advanced Development Project

Review Project Plan

Research & Analysis

Create & Propose Directions & Feasibility

Opportunity Assessment

PrepareProject Findings

Close Project

Stage Review

Stage Review

0 2 3 4 51

ConceptDevelopment

Define the Concept Development Project

Review Project Plan

Research & Analysis

Create & ProposeDirections & Feasibility

Business Estimation

PrepareProject Findings

Close Project

ConceptDevelopment

Define the Concept Development Project

Review Project Plan

Research & Analysis

Create & ProposeDirections & Feasibility

Business Estimation

PrepareProject Findings

Close Project

Stage Review

Stage Review

Ideation Proposal Development Design & Verification

Validation Launch

Targeted Business PlanPD-1

Market Segment AnalysisPhase 1 Timeline

Targeted Business PlanPD-1

Market Segment AnalysisPhase 1 Timeline

Phase ExitReview

Phase ExitReview

0 2 3 4 51

Customer InputBest in Class

Evaluation

Obtain EnvironmentInformation

Market Research

Receive PreliminaryStatement of Work

Customer InputBest in Class

Evaluation

Obtain EnvironmentInformation

Market Research

Receive PreliminaryStatement of Work

Quality ObjectivesQuality Objectives

Bill Of MaterialsBill Of Materials

Project Kick-Off

Project Award

Baseline SOW & BOM

PD-2 Approval

Assemble SDT

Submit CAR & TA

Phase 2- 5 Timeline

Project Reviews

Product Cost Estimate

Capital Equipment &Tooling Estimates

Create PD-2

Statement of Work

Program Business Plan & Quote

Compile ProgramBusiness Plan

& Quote

Quote Approval

Product Definition

Establish Targets

Document Product& Assumptions

Select CriticalSuppliers

Feasibility Assessment

Create Issues List

Product Definition

Establish Targets

Document Product& Assumptions

Select CriticalSuppliers

Feasibility Assessment

Create Issues List

Ideation Proposal Development Design & Verification

Validation Launch

Phase ExitReview

Phase ExitReview

0 2 3 4 51

Development ReleaseDevelopment Release

Product Development Process Development

Process Flow Diagram

PFMEA

Prototype Control Plan

Measurement System Analysis

Plant Layout

Supplier Selection

Supplier Statement of Work

Supplier RFQ

Make vs.. Buy

Supplier Selection

CAR & TA ApprovalCAR & TA Approval

Develop Drawing & Build Schedule

Models & Layouts

Identify Specifications

DFMEA

Create DVP

Engineering Analysis

Design For Manufacturing

Identify System Level SC’s

Complete Documentation

Design Review

Prepare for Development Release

Ideation Proposal DevelopmentDesign &

VerificationValidation Launch

Phase ExitReview

Phase ExitReview

0 2 3 4 51

Production Release- Equipment

Update Equipment Design

Production Release - Equipment

Production Release- Equipment

Update Equipment Design

Production Release - Equipment

Production Release- Tooling

Update Tooling Design

Production Release - Tooling

Production Release- Tooling

Update Tooling Design

Production Release - Tooling

Product & Process Verification

Order Components

Receive & Inspect Components

Tooling & Equipment Procurement

Receive & Inspect Tooling & Equipment

Assemble Prototypes

Preliminary Capability Study

DV Testing

Deliver Assemblies to Customer

Product & Process Verification

Order Components

Receive & Inspect Components

Tooling & Equipment Procurement

Receive & Inspect Tooling & Equipment

Assemble Prototypes

Preliminary Capability Study

DV Testing

Deliver Assemblies to Customer

Product Design

Create Product DesignDocumentation

Design Review

Prototype Release - Product

Product Design

Create Product DesignDocumentation

Design Review

Prototype Release - Product

Production Release - Product

Update Product Design

Design Review

Production Release - Product

Production Release - Product

Update Product Design

Design Review

Production Release - Product

Process Design

Tooling Design

Equipment Design

Pre-launchControl Plan

Design Shipping Packaging

Prototype Release - Tooling

PrototypeRelease - Equipment

OperatorInstructions

Ideation Proposal DevelopmentDesign &

Verification Validation Launch

Phase ExitReview

Phase ExitReview

0 2 3 4 51

Pre-Production BuildsPre-Production Builds

Production ToolingOrder Tooling

Build Tooling

Qualify Tooling

Production ToolingOrder Tooling

Build Tooling

Qualify Tooling

ProductionTooling

Production Equipment

Pre-Production Builds

PV Testing

Supplier Process Sign-Off Evaluation

Supplier Part Submission

Workforce Hiring/Training

Workforce Hiring/Training

PV TestingPV Testing

Process Sign-Off Evaluation

Process Sign-Off Evaluation

Materials System Setup

Production Control Plan

Production Control Plan

Production EquipmentOrder Equipment

Build Equipment

Qualify Equipment

Production EquipmentOrder Equipment

Build Equipment

Qualify Equipment

EvaluatePkg. System

Complete Logistics

Plan

CompleteSupplier MSO

Receive Customer Releases

CompleteMSO

Set Up SupplierReleases

Customer Part Submission

Customer Part Submission

CompleteMfg. BOM

Set Up MRP System

Supplier Part Submission

Ideation Proposal DevelopmentDesign &

Verification Validation Launch

Phase ExitReview

Phase ExitReview

0 2 3 4 51

Launch Performance ReportLaunch Performance Report

Start of ProductionStart of Production

Ramp-UpRamp-Up

Project File to Product FileProject File to Product File