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Design Excellence
Georgette BelairVice President, Design ExcellenceClinical Technologies and Services
October 2008
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We make healthcare safer and more productive.
Who are we?
Our mission
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What we want to become
To be the premier, global healthcare companyas recognized by current and potential customers, employees and shareholders.
Our vision
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Our customers
Cardinal Health helps hospitals improve operating results by managing their supply chains efficiently.
We provide the pharmaceuticals, medical products, and nuclear diagnostic products necessary to deliver high-quality care in any setting.
Cardinal Health helps pharmacies improve logistics, financial operations, quality control, product selection and customer service.
We offer solutions for clinical, reference and research laboratories which improve economics, standardization, labor utilization and patient outcomes
Hospitals Alternate care
providersPharmacies Laboratories
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Quick facts about Cardinal Health
• 90% of U.S. hospitals use Cardinal Health products or services
• More than 50,000 deliveries are made each day to 40,000 customer sites
• One-third of U.S. prescriptions, medical/surgical and lab products flow through our logistics system
• 14 million nuclear pharmaceutical prescriptions dispensed each year
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Design ExcellenceBuilding a World-Class Product Development Process in
Today’s Environment
FACTS:
• The pressures in today’s environment drive us to think of nothing LESS THAN EXCELLENCE!
• We have to be AS FAST as we can be if we want to be the market leader!
• We can NOT AFFORD to trade off either!
Why am I here?
Source: C. Buck, GE, 2007
U.S. industryBest-in-Class
Anesthesia-relatedfatality rate
Airline baggage handling
Breast cancerscreening (65-69)
Adverse drug events
Hospital-acquired infections
1
10
100
1,000
10,000
100,000
1,000,000
Defects
permillion
levels1 2 3 4 5 6
Overall healthcarein U.S. (RAND)
Healthcare errors and inefficiencies
Increased visibility into the magnitude of medical errors and inefficiencies plaguing the system has occurred over the past 8 years
However, history suggests these errors can be prevented
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Session Topics
• Marrying DFSS with Innovation
• Share the Key Improvements Design Excellence brings to the Product Development Process
• Sample tools teams can use from the DFSS toolbox
• Share Examples of where Design Excellence helped Product Development teams and their partners achieve
• Ways to Measure Success along the way when you deploy DFSS
• Examples of Savings you could expect when you implement DFSS
What is Design Excellence?
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A Systematic approach to New Product Development, that drives Customer Value, Product Quality, Manufacturability, and Serviceability into every product we make
A comprehensive understanding of our Global Customers’ spoken and unspoken needs
Predictive Engineering and Modeling to drive faster design iterations
Consistent transfer of Design Intent and stable manufacturing processes
What is Design Excellence?
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Method Utilized for . . .
Lean Thinking
• Inventory Reduction • Cycle Time Reduction • Removing non-value-added steps• Removing Waste
Design Excellence
• New Products, Processes and Services• Designing new systems when Incremental Improvement Cannot Close the Gap•Using DFSS tools, including strong VOC rigor to design for differentiation
Six Sigma (DMAIC)
• Improving Existing Products/Processes and Services• Root Causes, •Eliminating Defects
Six Sigma Methods
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DEx is essentialto meet true
quality goals
DEx is essentialto meet true
quality goals
Process Improvementswith Design Excellence (DEx )
Time
DEx Benefit
Z ()
6
4
2
0
Process Improvements Only (Process Entitlement)
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3
1
DEx Moves Us Beyond Improving Existing Designs and ProcessesDEx Moves Us Beyond Improving Existing Designs and Processes
Moving Beyond Process Entitlement
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Reactive Design Quality
Transition to ...
Predictive Design Quality
Moving from Reactive to Predictive
FROM:
– Evolving Requirements
– Design Rework and Tweaking
– Build and Test iterations
– Measurement
– “Test in” Quality
TO:
– CTQ Flow down from Customer Expectations
– Control Critical Design Parameters
– Modeling and Simulation with Design and Process Capability Flow-up
– Statistical Quality Prediction
– “Design in” Quality
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Design Excellence and Innovation
Phase 0 Phase 1 Phase 2 Phase 4Phase 3 Phase 5 Phase 6Concept
GenerationDEFINE DESIGN LAUNCHMEASURE ANALYZE VERIFY/VALIDATE
Idea Management
InnovationDeciding what offerings to pursue
ExecutionEmploying Design Excellence Principles
Innovation
• Finding new Technology
• Finding new Areas for us to build on
• Creating new Markets
Design Excellence
• Bringing those innovations to reality
• Designing for Manufacturability, Cost, Reliability, Serviceability
• Driving Customer Priorities and Speed-to-market
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Design Excellence principles
1. Uncompromising priority for unparalleled Quality, Usability, Reliability, Manufacturability, Serviceability...
2. A comprehensive understanding of our Global Customers’ spoken and unspoken needs
3. Using Operational Excellence, establish Lean, Flexible processes that optimize our precious resources and that foster rational decision making rather than replacing it.
4. A relentless understanding of Development Risk in every project and aggressive efforts to minimize development risk as early as possible.
5. Predictive Engineering and Modeling to drive faster design iterations, built with Multi-Generations in mind
6. Consistent transfer of Design Intent and stable manufacturing processes
Focus on the Customer, Quality and Design Intent TransferFocus on the Customer, Quality and Design Intent Transfer
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The culture to sustain Design Excellence
1. Issues are Freely Brought Forward and Feedback is welcome.
2. Transparency in the design process and an openness and willingness to rigorous, data driven Review of all of our designs and methods.
3. An understanding and appreciation of our Design Processes by all involved in our product development efforts.
4. Inclusive, cross-functional Teamwork is the method with which we will develop and commercialize products.
5. Empowered, Self-Directed Teams that hold themselves accountable to achieve great performance, continuously Measuring their ongoing results.
6. And an energized culture that encourages Innovation, provides Professional Opportunities for our employees, & Recognizes and Celebrates achievement.
The “How Can I Help?” CultureThe “How Can I Help?” Culture
What will it get you?
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What will Design Excellence get you?
Examples of where Design Excellence helped Product Development teams and their partners achieve
• Faster launches
• Better ramp-up in manufacturing
• Fewer defects in manufacturing and in the field
• Higher customer satisfaction, Sooner!
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What will Design Excellence get you?
What you can do What you will get
• Understand your customer
• Evaluate for best concept
• Identify clear requirements
• Design for Mfg/Ass’y
• Design for Serviceability
• Common Tools and processes
Differentiated products
Best solution for customer
Save time re-designing
Fewer quality problems in field or on plant floor
Less cost for Service Group
Less training, quicker transition to functioning teams!
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How will you measure success?
What you will get How will you measure
Reduction in re-design
Best solution for customer
Fewer quality problems in field or on plant floor
Less cost for Service Group
Quicker transition to functioning teams!
Design Burn Rate, speed-to-launch
Cust Sat. Score, Sales targets
Scrap Rates, First Pass Yields, Stabilization Time
Service Costs, MTBF
Voice of Employee, speed-to-launch
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Better Understanding of True Customer Needs
Measureable, Testable Needs
Better Analysis of Concepts, Risks, and
Capabilities
Fewer Surprises at launchHigher Customer SatisfactionHigher Quality and Reliability
Phase 0 Define Measure DesignAnalyzeVerify & Validate
Launch
Where will we see improvements?
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Include A COMMON VOCABULARY and best practices like:
Voice of the Customer rigor and translation to solid requirements
Scorecards to communicate progress
Cascade tools to keep requirements/specs connected
Design for “X” tools (“X” = Manufacturability, Assembly, Serviceability...)
Sample DFSS Tools
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DFSS Tools
SCORECARD EXAMPLE
Performance Level Requirement CTQ Owner
Lower Limit Nominal
Upper Limit
Target Cpk Mean
Std. Dev. Cpk Mean
Std. Dev. Cpk Mean
Std. Dev. Cpk
Measurement System Analysis
Target Value Design Prediction Design Verification Process Validation Data
VOC
Scorecard
•Strong Requirements Development
•Confirmation of Key Differentiators (Mello, Hepner-Brodie)
•QFD-traceability of Requirements and Measurements
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DFSS Tools, cont’d
Design for X
Concept Development
•Assembly, Manufacturability (Boothroyd Dewhurst)
•Reliability (FTA, Modeling)
•TRIZ, creative concept development tools
•Pugh Matrix, objective concept selection
How can you make it last?
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Making it Last:
Sustainable Improvement
Process/ Tools
Performance
People
Leadership
Communication
Training
Single Process to follow
Common Tools across CTS
Metrics Accountability
Mgmt Commitment Infrastructure
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Making it Last:
Sustainable Improvement
People
Communication
Training
Communicate Roll-out
Communicate small successes
Establish ownership
Train in context of full process
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Making it Last:
Sustainable Improvement
Performance
Metrics Accountability
TRACK progress
Hold EVERY team accountable
Point out the successes
Look into the failures
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Making it Last:
Sustainable Improvement
Process/ Tools
Single Process to follow
Common Tools across the business
Make it SIMPLE!
Hold EVERY team accountable
Put a PROCESS in place
THEN give them tools
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Making it Last:
Sustainable Improvement
Leadership
Mgmt Commitment Infrastructure
Walk the walk!!
Need to align LEADERSHIP first
Structure needs to be in place to support it
Leaders must be accountable to drive the right behavior
Questions?