Extreme Design Reengeneering Deployment

8/2/2019 Extreme Design Reengeneering Deployment

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Dallas, TXJanuary 11, 2005

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Copyright 2005 - Advanced Integrated Technologies Group, Inc., All rights reserved.Page: 2


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Pro-Ex Program Transformation Map

Lean SigmaEnterprise

OrganizationalIntegration &Supply Chain

Optimization

VisionSupplier Management Infrastructure Internal Network Sourcing Benchmarking & Selection Commodity Management Traditional Cost Reductions

Supplier RationalizationEnabling System Solutions

Supplier Certification

System Wide Bottom-lineimpact

World ClassResults

Self managed teams

Preparing the Culture

Cross Training Reward & Recognition Incentives

Data Driven

Decision Making

SCOR Model Adoption

Year 1Year 1

Year 2Year 2

Year 3Year 3

Year 4Year 4

ProductDevelopment

& Innovation Excellence

Program Infrastructure Steering Teams Roles & Responsibilities Communication Plan Tracking Financial Verification

Skills Development Leadership Training

Management Training Lean Black Belt Training Greenbelt Training Kaizen Training Personnel Training

Focus Factory Projects Product Rationalization Develop Lean Model Areas

Variation Reduction Key Enabling Variation / Cost

reduction Projects

Value Stream Redesign

Site Certification

Results Acceleration Kaizen Events

Directed Effort: Policy Deployment

Foundational Changes 5S Standard Work Change Over Reduction TPM

Small Parts ConsumptionBased Replenishment

Division Certification

Self Sufficiency MBB

Business ProcessKaizen

Pull System Adoption Internal Supplier

S/C Business ProcessSimplification

Kaizen as a way of life

Model Facilities

Streamlined Business Ops

Pull System Penetration 60%+

Cultural

Change

Product Development

Rationalization

Cross FunctionalTeams

Integrated ProductDevelopment Teams(IPDT)

Skills Development:

DFSS Training Innovation

Product Development Steering Team

Product Development InfrastructureStandard Measurements

Definitions & MethodsKnowledge Capture

Streamline Designprocess:

Waste analysis Stage gates

Six SigmaOrganization

Enabling Systems

Integration

Business ProcessImprovements

SCOR Card MeasurementStandardization

Supplier Joint Cost Red.

Integrated SupplyChain

Supply Chain Definition

Supplier Quality & Delivery

ImprovementsLogistics Optimization

Set Based ConcurrentEngineering

Long Term Process That Builds Upon Itself as Capability Increases

DCOR / CCOR Model Adoption


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Summary of Discipline Benefits

Optimization of ProductPerformance

DFSS

6

Strategic Alignment &Opportunity Identification

Effective Use of CrossFunctional Teams

Metrics, Benchmarks, andBest Practices

Culture Change

Create a CompetitiveAdvantage Through ValueChain Improvement

Eliminate Defects and

Variability

Eliminating Waste andImprove Workflow

Pro-ExLeanBPM

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Advantages & Benefits of Integration

EffectiveGuidance

Alignment

Strategic

FasterResults

BiggerResults

ProfitImprovement

RationalProject

Selection

RightProblems

SelfSustaining

Benefits


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What are BPM Frameworks?

BPM Framework a cross-industry reference model that defines andstandardizes the process definitions, metrics and best practicesrelated to a specific value chain for the purpose of value chain

reengineering

Supply Chain Operations Reference (SCOR)

Developed and endorsed by the Supply-Chain Council, a non-profit

consortium of 800+ member companies since 1996 Continually under development currently Release 6.1

Design Chain Operations Reference (DCOR)

Preliminary version of DCOR developed by Hewlett-Packard (HP) for

internal use; IP released to the Supply-Chain Council for development

Customer Chain Operations Reference (CCOR) Preliminary version of CCOR developed by Hewlett-Packard (HP) for

internal use; IP released to the Supply-Chain Council for development


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How do BPM Frameworkscompliment Lean and Six Sigma?

Standardized Value Chain Definition Supply Chain = SCOR, Demand Chain = DCOR, Customer Chain = CCOR

Process definition, metrics, benchmarking and best practices

Project Selection Methodology Alignment of project execution with Customer, Strategic and Operational needs Project selection based on data, not brainstorming Understanding of the interrelationships between projects Creation of prioritized and time-phased Project Portfolios for all Value Chains Focus of efforts and resources on the highest ROI opportunities across all Value

Chain areas

Linkage to Enabling Information Systems Prioritization of IT Optimization Consistent with Process Optimization

Alignment of technology projects with process improvement activities

Comprehensive Financial Alignment Project expectations tied to P&L and Balance Sheet impact Development of discrete project contracts for every project opportunity


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Desired Characteristics ofBPM Framework Deployment

Structured Methodology

need the deployment methodology formally defined and structured so

that it is repeatable and leverages the best available analytical tools

Training Based

need to be able to teach the deployment methodology to our clients sothey can do it themselves

Applied Approach

need to successfully apply the deployment methodology to a value

chain reengineering project concurrent with the training

Results Focused

need to select value chains with significant impact to the business andprioritize the improvement opportunities with the greatest benefit

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SCOR Level 3 Process Element

Process Element: Receive Product at Warehouse Process Element Number: D1.8

Process Element Definition

The activities such as receiving product, verifying, recording product receipt, determining put-away location, puttingaway and recording location that a company performs at its own warehouses. May include quality inspection.

Performance Attributes Metric

Reliability Incoming Material Quality

Responsiveness Dock To Stock Cycle Time

Flexibility Upside Delivery FlexibilityDownside Delivery Flexibility

Cost Distribution CostsIncoming Material Costs

Product Acquisition Costs

Assets Finished Goods Inventory Days of SupplyInventory Obsolescence as a % of Total InventoryEnd-of-Life Inventory

Best Practices Features

Automatic Identification Bar Coding & Radio Frequency Communications

Download P.O. & Advanced Ship Notices forAutomated Receiving and Put away

Integration with Procurement Systems & Electronic Commercewith Vendors

Dynamic location assignment including lotcontrol, zoned put away, quality assurance,

ABC frequency of access

Real time inventory control, stock locator, and rules based putaway logic

SCOR Provides Process Definition, Metrics, and Best Practicesat the Process Element Level


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(Baseline, Benchmark, Analyze,

Identify & Validate)

SCOR Integration with the .

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)7)7 Projects focused on minimizing Waste, Variability and Defects

across the Supply Chain value stream

Projects focused on maximizing Transactional Efficiency,

Timeliness and Yield to optimize information flow across the SupplyChain value stream

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SCOR PortfolioImplementation Plan

StandardizedProcess Definition

Metrics andBenchmarking

Lean / Six Sigma

Analytics

Industry BestPractices


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SCOR Training and DeploymentAccelerating Business Improvement Using SCOR

On-site & Remote Support On-site & Remote Support On-site & Remote Support

Train

Apply

Review Train

Apply

Review Train

Apply

5 days

3 weeks

1 day 4 days

3-5 weeks

1 day 4 days

3-5 weeks

Session 1 - Deliverables Session 2 - Deliverables Session 3 - Deliverables

Thought Process Map (TMAP) Competitive Positioning

KanoAnalysis

Industry Comparison Supply Chain Profile Supply Chain Definition Matrix

SCOR Charter Level 1 Metrics Definition / NEM PMG Benchmark Survey

SCORcards Requirements Gap Analysis

SCORcard & Gap Analysis Review

Thought Process Map (TMAP) Geographic Map

Value Stream Map (Material Flow)

As-Is Material Flow Map Level 2 Metrics Definition / NEM Material Flow Performance Summaries

Material Flow Disconnect AnalysisBrainstorming SummaryCause/Effect Analysis

Failure Modes & Effects Analysis To-Be Material Flow Map

Disconnect Opportunity Assessment Quick Hit Project Charters Status Review

Thought Process Map (TMAP) Transactional Analysis

Value Stream Map (Work & Info Flow)

As-Is Work & Info Flow Map As-Is Productivity Summary As-Is Swim Diagrams

Level 3 Metrics Definition / NEM Level 3 Baseline Blueprint To-Be Work & Info Flow Map

To-Be Productivity Summaries Project Portfolio & ROI Analysis

Effort / Impact Assessment Portfolio Prioritization Deployment / Resource Plan

Certification Review

SCORDeployment Teams

Plan

2 days

SCOR Deployment Team Training

Planning &Organizing

Supply ChainPerformance Baseline

Supply ChainMaterial Flow Analysis

Supply ChainWork & Information Flow

Analysis

Review Planning

1 day 4 days

ImplementationPlanning(Optional)


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DFSS Tools

DFSS Builds on Six Sigma and Design Tools

The focus remains on customer and business needs

Mastering Six Sigma tools supports DFSS results

ScorecardP-Diagram

VOC & Kano AnalysisPughs Concept Selection

TRIZ / Axiomatic DesignModeling & Sensitivity Analysis

Optimization & RobustnessTolerance Designetc, etc,..

Six Sigma tools

Design for Six Sigma tools

TMAPSIPOCPMAPFMEAMSEDOE

NEMControl Plan


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IDOV Identify, Design, Optimize, Validate (or Verify)

IDDOV Identify, Define, Develop, Optimize, Validate

DIDOV Define, Identify, Design, Optimize, Validate

DIDOVM Define, Identify, Design, Optimize, Verify, Monitor

DMADOV Define, Measure, Analyze, Design, Optimize, Verify

DMADV Define, Measure, Analyse, Design, Verify

DMEDI Define, Measure, Explore, Design, Implement

Many methodologies have been proposed. Most of each can bemapped to the same basic tasks or phases: from ideas/needs

gathering, through design selection and optimization, to

implementation.

DFSS Methodologies

Example: DFSS Process for


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Key

Deliverables

DEVELOPCONCEPT

OPTIMIZEDESIGN

VERIFY &VALIDATE

Develop Product/Serviceconceptualdesign

Predict designsSigma Capability

OptimizeProduct/ Servicedetailed designand productionprocesses

Perform pilottesting

Developimplementationand controlplans

Validatedconceptualdesign

High-level

productionprocess design

Product/serviceproductionversion design

Production

process design

Validatedproduct/ service

Implementedcontrol plans

Productionreadiness

Identifycustomer needsand defineCriticalCustomerrequirements

Customer reqs. CTSs Competitors

Comparison

INITIATE PROJECT

Define budgetand plan thedevelopmentproject

Focus

StrategicPriorities

ProjectSelection

LeadershipDevelopment

Project Charter Budget Team Identified Leadership

Committed

Example: DFSS Process forDesign & Development Projects

DEFINEREQUIREMENTS

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DFSS Roadmap - Product Development

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DCOR I i i h h


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DCOR Integration with the .

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Projects focused on minimizing Product Design and DevelopmentRisk, Uncertainty, and Variation

5.56. Projects focused on minimizing Waste, Variability and Defects in

the Product Development process

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Timeliness and Yield to optimize information flow in the ProductDevelopment process

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DCOR PortfolioImplementation Plan

StandardizedProcess Definition

Metrics andBenchmarking

Lean / Six SigmaAnalytics

Industry BestPractices

DCOR L l f D t il


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DCOR Levels of Detail

The Design Chain OperationsReference Model (DCOR)provides standards to assessyour Design Chain processesagainst other Design Chainprocesses

Reference Document provides Standard Process Elements

Standard Metrics Best Practices

World Class Benchmarks

# Description Schematic

Levels

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Amend

I1IntegrateProductRefresh

I2IntegrateNewProduct

I3IntegrateNewTechnology

Integrate

D1 DesignProductRefresh

D2DesignNewProduct

D3DesignNewTechnology

Design

R1 ResearchProductRefresh

R2ResearchNewProduct

R3ResearchNewTechnology

Research

PPPlanDesign Chain

Plan

P R P la n R es ea rc h P DP la nD es ig n P I P la n In te gr at e P A P la n A me nd

A1 AmendProductFall-Out

A2AmendDeficientProduct

A3 AmendProductSpecs

I1 IntegrateProduct Refresh

I2 Integrate

NewProduct

I3 IntegrateNew Technology

Integrate

Top Level Design

Chain ProcessFlow

Configuration LevelWork Flow

Process for Selected

Design Chain

Process ElementLevel

Decompose SpecificProcesses

ImplementationLevel

Process ImprovementProject Execution

1

2

3

4

DCO

R

Model

Project

Execution


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DCOR Phases


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DCOR Phases

Process Maps

Root Cause Assessments

Baseline Performance Metrics

Design Chain Strengths &Weaknesses

Product Scorecard & SigmaLevel

Initial Project Listing of Work

Flow, Design Quality & ProductValue Opportunities forImprovement

Process Mapping Tools: Value StreamMaps, Detailed Process Maps,

Geographic Maps, Swimlane Diagrams,Product/Process Matrix

Root Cause Analysis Tools: Cause &Effect Diagrams, FMEA

Data Gathering & Analysis Tools: NEM,Surveys, Product Scorecard, ProcessCapability

Best Practices

Conduct the DCOR Work Flow &Product Value Analysis

Construct As-Is and To-Be WorkFlows for the selected Design Chainusing the DCOR model

Identify actionable improvementopportunities to improve DesignChain Work Flow and Value StreamPerformance

Phase 2:

Work Flow &ProductValue

Analysis

Prioritized Project Portfolio

High Level ProgramImplementation Plan

Recommendation of projects to

Steering Team for immediateexecution

Financial Analysis

Effort/Impact Analysis

Project Charters

Effectively plan, resource andexecute the projects identified in theDCOR Deployment.

Prioritize projects based on selection

criteria and effort/impact analysis

Phase 3:

ProjectExecution &

Planning

High Level Gap Analysis ofCurrent vs. Required CompetitivePerformance (DCORcard)

Gross Level Financial Impact ofOpportunities Estimated

Level 1 DCORcard Metrics Benchmark Data Sources

Market & Competitive RequirementsAssessment

Build a performance baseline for theselected Design Chain/s

Produce a DCORcard of identifyinggaps between current and requiredperformance levels

Phase 1:Performance

Baseline

Defined Design Chains

Selected Design Chain/s forInitial Deployment

Diagnostic Team to ExecutePhases 1-3

Design Chain Definition Matrix

Design Chain Profiling

Deployment Decision matrix

Diagnostic Team Selection Matrix

Develop an understanding of yourmarkets, product lines and resultingDesign Chain/s.

Assign Deployment teams to assessselected Design Chain/s.

Phase 0:

Planning &Organizing

DeliverablesToolsObjectivePhase

ge:30


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Copyright2005-AdvancedIntegratedTechnologiesGroup,

Inc.,

Allrightsreserved.

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Experts in Design Chain Processes

Phase 0 Objectives


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Phase 0 Objectives

Objectives Interview key Design Chain stakeholders

Introduce the attendees to the DCORModel and the DCOR Deployment process

Define the unique Design Chains

Define the Strategic, Competitive andMarket requirements of the Design Chain

Profile the business context of each DesignChain and select Design Chain/s of focus

Deliverables Appropriate Memberships

Benchmark Sources Business Information Sources

Business Context Summary

Design Chain Definition Matrix

Design Chain Profile(s)

Deployment Decision Matrix DCOR Deployment Charter

The objective of Phase 0 is to plan and organize prior to deployment ofDCOR. Activities are focused on developing an understanding of how youdefine your markets, product lines and resulting Design Chain/s thatexists within your business. You will also begin to develop the DCOR

deployment teams to address these opportunities.

Phase 1 Deployment Objectives


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Deliverables

DCORcard PerformanceBaseline

Industry Benchmark

Performance Competitive Requirements

Established

High Level Gap Analysis ofCurrent vs. Required

Competitive Performance Gross Level Financial Impact

of Opportunities Estimated


The objective of Phase 1 is to train the Diagnostic Team to build a DCORperformance baseline for the selected Design Chain/s. A DCORcard will beproduced identifying gaps between current performance and requiredperformance levels.

Objectives

Define DCORcard Metrics

Collect Current PerformanceData

Collect Industry BenchmarkPerformance Data

Determine CompetitiveRequirements for selected

Design Chain Conduct Gap Anlaysis of Final

DCORcard and SummarizeOpportunities



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Objectives Gain current process understanding

Value Stream Maps

DCOR Process Maps Swimlane Diagrams

Product/Process Matrix

Product Scorecard

Conduct root cause analysis

Cause & Effect Diagrams

Failure Modes & Effects Analysis Gather and analyze data

Benchmarking

Surveys / Interviews

Process Capability

Identify & document opportunities

Quick Hits Major Work Flow Disconnects

Deliverables Design Chain Process Maps

Root Cause Assessments

Data Analysis Quantifying MajorOpportunities

Sigma Level

Design Chain Strengths & Weaknesses

Identification of Best Practices

Initial Project Listing of Work Flow,Design Quality & Product ValueOpportunities for Improvement

The objective of Phase 2 is to conduct the DCOR Work Flow & ProductValue analysis using the Level 2 & 3 architecture of the DCOR model.Driven by the need to close the performance improvement gaps in theDCORcard, As-Is and To-Be Work Flows are constructed for theselected Design Chain and then the actionable improvement opportunitiesare identified using the tools and best practices outlined in DCOR.

Phase 3 Deployment Objectives &


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Objectives

Complete Consolidated OpportunityAnalysis

Assemble Final Project Portfoliowith Effort Impact Summary

Establish Recommended scopeand sequence of project portfolio

Select the appropriateimplementation methodology

Construct preliminary ProjectCharters

Deliverables

Final Opportunity Analysis Final Project Portfolio

High Level Program ImplementationPlan (showing scope andsequence)

Preliminary Project Portfolios(utilizing appropriate methodology)

Executed Projects

Deliverables

The objective of Phase 3 is to effectively plan, resource and execute theprojects identified in the DCOR Deployment and summarized in the DCORProject Portfolio. Each identified project is outlined in a Project Charter,prioritized based on project selection criteria, and time-phased to allow

the Design Chain Diagnostic Team to recommend the appropriateprojects, resources and timing to the Steering Team for implementation.

DCOR Deployment Expectations


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DCOR Deployment Expectations

DCOR Model

The model will be modified and improved as it gains acceptance as an

open-source cross-industry standard

Metrics & Competitive Benchmarking

Over 300 product development metrics are built into the model

Limited benchmark sources will expand as the model gains acceptance

Deployment Capability

HP and AIT Group are moving forward to refine and structure thedeployment methodology and build the training curriculum

Modeled after Six Sigma deployment Train-Apply-Review

We intend to implement DCOR with early adopters using the HP versionof DCOR while working with the community to develop DCOR as a openstandard, improve benchmark sources, etc.


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Contact Information


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Contact Information

Rod Recker Office: (530) 587-1575

Executive Director Cell: (530) 277-3154Advanced Integrated Technologies Email: [email protected], Inc.

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Extreme Design Reengeneering Deployment

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