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Copyright © 2013. Infor. All Rights Reserved. www.infor.com
1
PRODUCT CONFIGURATION MANAGEMENT
Beyond Lean Manufacturing
www.infor.com/solutions/pcm
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Agenda
State of discrete manufacturing productivity
Strategies for competitive advantage
Suggestions for getting started and Questions
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Agenda
State of discrete manufacturing productivity
Strategies for competitive advantage
Suggestions for getting started and Questions
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Most manufacturers have implemented relevant lean concepts
People
High Performance Work Teams
Kaizen
Process
5S (sort, set in order, shine, standardize, and sustain)
Value Stream Mapping
Lean has been a life preserver
Quality
Six Sigma
Poka-Yoke (error proofing)
Zero Defects
TQM
Production
JIT
Demand Flow Technology
Quick Changeover
Kanban
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Look where it’s gotten us
DURABLE MANUFACTURING PRODUCTIVITY COMPOUND GROWTH
-2 0 2 4 6 8
10 12 14 16%
87-90 90-95 95-00 00-07 07-11
All other durable goods
Productivity only improved <2% a year
Computer Equipment & Components
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Productivity slips as cost rise over time
Why?
As lean projects drove down costs, productivity rose
Labor + Materials + Energy + Purchased Services
Lean projects used capital
which drove productivity back down
Time
Pro
du
ctivity
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Look where it’s gotten us
DURABLE MANUFACTURING PRODUCTIVITY COMPOUND GROWTH
-2 0 2 4 6 8
10 12 14 16%
87-90 90-95 95-00 00-07 07-11
While labor productivity rose, productivity of all resources was flat
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Agenda
Suggestions for getting started and Questions
The best strategies may not be the most obvious ones
State of discrete manufacturing productivity State of discrete manufacturing productivity
Strategies for competitive advantage
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Strategies for competitive advantage
Flexible Sales
Partner Reconnaissance
Finish design automation
Automatically create
BOMs & routes
Next Wave of Lean Breakthrough Strategies
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Strategies for competitive advantage
Flexible Sales
Partner Reconnaissance
Finish design automation
Automatically create
BOMs & routes
Next Wave of Lean Breakthrough Strategies
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BEFORE AFTER
Automatically create BOMs & routings as customer orders arrive
Set up 1,000,000s of “star parts” with unique BOMs & routings for each feature combination
Set up rules so a unique BOM & routing can be created
as customized products are ordered Setup
Take Order
Prep for mfg
Maintenance
Take an order for a customized product
Search for the right star part that matches the product as customized
Make changes to 100,000s of BOMs & routes when manufacturing changes & options are introduced
Take an order for a customized product
Dynamically create BOMs and routings by following the rules
Change 1 set of rules
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Shop drawings are now a standard part of the manufacturing process
• Shop drawings are a key strategy to reduce defects in customized products
• They are generally drawn by individuals once an order has been received
• Errors in that manual process can cause significant downstream problems
Create shop
drawings
Make product
Receive Customer
Order
Ship Customer
Order
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Create shop
drawings
Downstream effects of shop drawing errors
Materials Lead Time
Make product
Quote – to – Order Sales Cycle
Receive Customer
Order
Ship Customer
Order
Order Materials
Receive Customer
Order
Ship – Inspect - Install
Notified of Error
Find Cause
Expedited Lead Time
Expedited Re-make
Receive Customer
Order
Order Materials
Ship – Inspect - Install
Ship Customer
Order
Eroded customer confidence
Unexpected customer delay
Costs to expedite, re-make, re-ship & re-install
Extra mgt & customer service time to be ultra-
responsive & then to regain trust
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Create shop
drawings
Typical process fix: Add improved drawings Q/A
Materials Lead Time
Quote – to – Order Sales Cycle
Receive Customer
Order
Order Materials
Receive Customer
Order
Make product
Ship Customer
Order
Ship – Inspect - Install
Notified of Error
Expedited Lead Time
Expedited Re-make
Receive Customer
Order
Order Materials
Find Cause
Ship – Inspect - Install
Ship Customer
Order
Q/A
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Better process fix: Automate drawings
• Eliminates downstream effects of drawing errors
• Eliminates drawing labor
• Reduces order-to-ship time
• Engineers focus on innovation rather than assisting CAD operators with shop drawings
Materials Lead Time
Quote – to – Order Sales Cycle
Receive Customer
Order
Order Materials
Receive Customer
Order
Make product
Ship Customer
Order
Ship – Inspect - Install
Create shop
drawings Q/A
Automate Drawings
Automate Drawings
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Strategies for competitive advantage
Flexible Sales
Partner Reconnaissance
Finish design automation
Automatically create
BOMs & routes
Next Wave of Lean Breakthrough Strategies
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Material Planning Strategies
Partner Reconnaissance
• Materials planners typically use “planning bills”
• Materials forecast accuracy can be improved by incorporating dealer and distributor quotes into the planning process
• Customers will experience fewer order delays Best
Better
Good Use past orders
as demand
Use ERP quotes as demand
Use partner quotes as demand
Receive Customer
Order
Ship Customer
Order
Order Materials
Materials Lead Time
Make product for customer
Receive Customer
Quote
Quote – to – Order Sales Cycle
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Flexible Manufacturing
Flexible Sales
OBJECTIVES
• Remain efficient even as volume and variety change
• Prepare for planned changes and react to unplanned changes
COMPONENTS
• CNC machines, material handling and control system
OBJECTIVES
• Dynamically adjust market offerings to stay within limits of manufacturing flexibility
• Improve profit, given the customer’s need and manufacturing flexibility
COMPONENTS
• Manufacturing triggers for sales tactics • Second-generation sales tactics
Flexible Sales
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Working together
Flexible Manufacturing Flexible Sales
A work center has down-time for a two-week swap out of a CNC titanium
milling machine.
example 1:
Quote as usual
but push ship
date based on
CTP
Maximize appearance of
stable product portfolio
When you are sole supplier
Dynamically
remove from
quote options
list
Maximize appearance of
fast lead time
When you can offer alternatives
Dynamically
create alternate
routing
resulting in
higher price
Maximize appearance of being
highly responsive
When demand is time sensitive
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Working together
Flexible Manufacturing Flexible Sales
A work center has down-time for a two-week swap out of a CNC titanium
milling machine.
example 1:
Quote as usual
but push ship
date based on
CTP
Maximize appearance of
stable product portfolio
When you are sole supplier
Dynamically
create alternate
routing
resulting in
higher price
Maximize appearance of being
highly responsive
When demand is time sensitive
Dynamically
remove from
quote options
list
Maximize appearance of
fast lead time
When you can offer alternatives
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Working together
Flexible Manufacturing Flexible Sales
A work center is scheduled to
reach capacity in it’s ability to deal with a specific operation for a
month
example 2:
Quote as usual
but push ship
date based on
CTP
Maximize appearance of
stable product portfolio
When you are sole supplier
Dynamically
remove from
quote options
list
Maximize appearance of
fast lead time
When you can offer alternatives
Dynamically
create alternate
routing
resulting in
higher price
Maximize appearance of being
highly responsive
When demand is time sensitive
Template v7 January 30, 2013
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Working together
Flexible Manufacturing Flexible Sales
A work center is scheduled to
reach capacity in it’s ability to deal with a specific operation for a
month
example 2:
Quote as usual
but push ship
date based on
CTP
Maximize appearance of
stable product portfolio
When you are sole supplier
Dynamically
remove from
quote options
list
Maximize appearance of
fast lead time
When you can offer alternatives
Dynamically
create alternate
routing
resulting in
higher price
Maximize appearance of being
highly responsive
When demand is time sensitive
Template v7 January 30, 2013
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Strategies for competitive advantage
Agenda
State of discrete manufacturing productivity
Survey results and suggestions for getting started
Strategies for competitive advantage
Suggestions for getting started and Questions
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Ways to get started
Explore Infor manufacturing ideas
Infor.com
Network with us to discuss the breakthrough strategies
See case examples of the “Next Wave of Lean” strategies
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