24
Production Management II (Prof. Schuh) Product Lifecycle Management III - Simultaneous Engineering WZL © Page 1 Production Management II - Lecture 10 - Product Lifecycle Management III Simultaneous Engineering Prof. Dr.-Ing. R. Noppen Supervisor (for this lecture): Dipl.-Ing. Dipl.-Wirt. Ing. A. Kubosch [email protected] WZL 53b R. 504 Tel.: 80-28203 Notes: L10 Page 1 Lecture 10

Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

  • Upload
    ngonhi

  • View
    219

  • Download
    2

Embed Size (px)

Citation preview

Page 1: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 1

Production Management II- Lecture 10 -

Product Lifecycle Management IIISimultaneous Engineering

Prof. Dr.-Ing. R. Noppen

Supervisor (for this lecture):Dipl.-Ing. Dipl.-Wirt. Ing. A. [email protected] 53b R. 504Tel.: 80-28203

Notes:

L10 Page 1

Lecture 10

Page 2: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 2

Classification of the Lecture Product Lifecycle Management (PLM) III

PLM I(CAD)

PLM II(EDM/PDM)

PLM III(SE)

PLM I

PLM II PLM III

Legend: CAD Computer Aided DesignEDM/PDM Engineering Data Management/Product Data ManagementSE Simultaneous Engineering

Classification of the Lecture Product Lifecycle Management (PLM) III

The lecture Product Lifecycle Management III deals with the topic of Simultaneous Engineering. Its contents are connected to the previous lectures (PLM I and PLM II) and partly overlapping.

The lecture PLM III covers so-called “management aspects“ of the PLM. Therefore the aspects treated by the lectures PLM I and PLM II are arranged to fit an overall context.

L10 Page 2

Lecture 10

Page 3: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 3

change of structures and values in society

acceleration of technologic progress

change of market structures improvement of communication and transportation technologies

growing demands concerning products and services

time

time

20 +1_

20 +0.01_

The Change of the Economic Conditions

The Change of the Economic Conditions

Compared to former times, the economic conditions have changed fundamentally. About 150 years ago, the economic success of a company was almost entirely determined by the design of its production processes. Today a company faces a multitude of new challenges and its fast reaction to cope with these is essential for success. Essentially, there are five fields to be taken into account.

The change of structures and values in society, also called change of paradigms, manifests itself in the fact that today the mere function of a product is taken for granted. Instead the quality, cost and image of the product are decisive for its success.

The acceleration of the technologic progress causes a shortening of the life-cycle time of a product. Companies have to identify influencing factors and to differentiate between those which are constant and those which are changing rapidly. Cycles must be properly identified and utilized. For example in the automotive industry the product life-cycle time of an engine is three times as long as that of a car body. If both are developed simultaneously, existential trouble can be expected due to the resulting problems.

The change of market structures caused by globalisation becomes apparent in the switch from national to international markets. In consequence to this the choice of an adequate production location becomes a highly complex task. The production in global networks must be supplied by enormous trade and huge exchange of information. Only the continuous improvement of communication- and logistic technologies is covering this requirement.

The demands of products and services are also increasing continuously. In the sixties, the fuel consumption of a low power Volkswagen beetle was about 12l/100km. Today most luxury class cars do not need more fuel.

L10 Page 3

Lecture 10

Page 4: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 4

carry out key projects (e.g. lamella roof)

Innovation Strength

analysis:

basic equipment sun roof in country XY

BMW Mercedes

20% 15%

why different?

differences in marketing?

...?

innovation strengthstimulate customer‘s

interest, enthusiasm and desire through innovation

and performance

create discomfort by arguments

Innovation Strength

For today‘s companies it is vital to powerfully design changes and thus to be innovative. Yet there are only few companies which manage to generate actively innovations as there is a lack of innovation strength.

The most common understanding of the term innovation is the replacement of an old technology with a new one. For example products with a high innovation rate are mobile phones or computers. Here, new technologies are introduced to the market every 1-2 years (product innovation).

Another type of innovation deals with the redesign of the production process of an existing product in order to be faster, cheaper and more steady in terms of quality (process innovation). An example is the replacement of drawing boards by CAD systems.

Redesigning and improving the communication with the customer is a third possibility of innovation. Only companies, which are capable to point out there technical potentials, are able to capitalise economic profit on their product innovation. For example, when Mannesmann, a mechanical engineering company, entered the mobile communication market new and no typical marketing instruments had to be developed.

The aim of marketing strategies are stimulating the customers’ desire to buy a product by using innovation, performance and competence. For example Webasto managed to develop a new lamella roof for the Mercedes A-Class which enabled the space-saving installation of sun roofs in this car for the first time. This development made Webasto market and technology leader in the field of lamella roofs.

L10 Page 4

Lecture 10

Page 5: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 5

Acquisition of Feedback from End Customers

questionnairequestionnaire

questionnaire

Sales trainings at big car sellers‘

Survey at motorway service areas

satisfaction with:- parking heater- sun roof-...

Questionnaire to 1000 car owners

comfort demands?

Webasto?

...?

.........

feedback

Public check: display of 10 cars equipped with different folding fabric sun roofs

Acquisition of Feedback from End Customers

Processing the question of how to improve a product is the aim of feedback acquisition. A second aim is to check the accordance with self-perception of products and the customer's perception.

It is reasonable to begin with the design of a questionnaire which is not only product-specific but also deals with the buyers‘ and users‘ habits. The questionnaire should not be distributed via mail but filled out during a direct conversation with the customer (e.g. at motorway service areas). It is helpful to create a comfortable atmosphere by offering beverages etc.. The motto is here: “listening is the best marketing“. A carefully controlled conversation is the best opportunity to get the customers' opinion about products, e.g. sun roofs.

Another way of benchmarking products is the so called "customer check". Passing people are encouraged to test different variants of a specific product, for example lamella roofs, at location. The customers' statements enable the enterprise to draw conclusions on fields of improvement of specific features, e.g. handling the lamella roof.

In general, a good rule for feedback acquisition is „make it simple“. Simple but sophisticated dialogs will best show the needs of the customers.

Finally the results of feedback acquisition must be transformed into measurable profit. This contains for example the consequent training of the salesmen in accordance with the extracted acknowledge. All efforts will be in vain if the elaborated results are not used during the direct contact with the customer.

L10 Page 5

Lecture 10

Page 6: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 6

market shares

Derivation of a Market Strategy

competitive dynamics(basis of competition)

key factors

benchmarking:

relative strengths and weaknesses regarding the key success factors

competitive structure

The range of possible market strategies is a result of the dimensions life-cycle phase and relative market position.

relative market

position

market leader

strong

medium

maintain-able

weak

formation growth maturityde-

generation

offensiv

e

maintain and expand position

concentrate on nich

es

consolidation

withdrawal

range of possible market strategies

Derivation of a Market Strategy

The difficulty in finding the proper market strategy is the correct judgement of relative market position and life cycle phase of corresponding products. Agreeable to the above matrix different market strategies are resulting from this judgement. During the maturity phase of a product a completely different marketing strategy is required than during the formation phase. For example in the automotive industry it is reasonable to promote technologic innovations during the formation phase, but to stress the reliability of a car during the maturity phase.

A concrete example of the false estimation of a product life-cycle was Porsche‘s decision to cancel the production of the 911 at the begin of the 80ies and to replace it with the front engine types 924 and 928. As we all know, the 911 survived them both and today sells better than ever.

From this problem following demand is resulting: A company always has to be sensitive to changes, especially changes of the economic conditions. As four eyes can see more than just two, teamwork makes a lot of sense.

L10 Page 6

Lecture 10

Page 7: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 7

Defining the Position: Own Company vs. Competitors

Legend: : company A: company B

autarkic

prod

uct p

rogr

am

stra

tegi

es

individualniche program "pioneer" com

petitive strategiesactivity strategies

reso

urce

stra

tegi

es

flexible resource supply

MODIFYINGSTRATEGIES

externalsynergy potential

X

XX

X

STABILISINGSTRATEGIES

“standardizedmass program“

“deterministicresource assignment“

“conformist“

“internalsynergy potential“

X

Competitive strategies:

defensive vs. offen-sive competitive behaviour

imitation vs. innovation

Activity strategies:

cost minimization vs.optimization ofcustomer‘s benefit

autarchy vs. cooperation

Resource strategies:

fix vs. flexiblerange of use

specialized vs. univer-sal applications

Product program strategies:

narrow vs. broadservice range

standardized vs.individual services

Defining the Position: Own Company vs. Competitors

Defining the position is a necessary task to every company because of investigating the own development and the relative market position in comparison to the competitors. A company has to know about its own strengths and the competitors' ones. For example, the product price is not the only aspect which determines the market position. In doing so the evaluation must be carried out as objectively as possible (team work). At the same time, it has to be considered that the market position is never fix. If the own strengths are cultivated and the others are kept in view, there is a good chance to maintain or keep the position.

A useful aid is the "strategic profile" (see figure above, also PM I, lecture 11). At first the company evaluates its own market position in the four quadrants in accordance to the criteria which are mentioned in the grey fields. Afterwards the "fit" has to be checked, that means, where are the own positions in comparison to the perfection. Perfection: company's positions are located on the bisecting line in each quadrant and on a cycle around the origin. If the "fit" doesn't match the perfection, the strategic position of the company must be corrected adequately. Finally there will be a check between the evaluated position and the long-ranging planned strategic position of the company. Moreover the positions can be compared with the competitors' ones. (Let's assume a company plans following a modifying strategy, but by using the strategic profile it detects that its current strategy is a stabilising one. As consequence the company has to make changes in different fields.)

To work for the company‘s future does not only mean to react, but to take action.

additional literature: Das Konzept integriertes Management, Kap. 2.5 Stoßkraft durch strategisches Management

L10 Page 7

Lecture 10

Page 8: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 8

Strategic Company Repositioning

development of newcore tasks

concentration oncore tasks

by outsourcing

new profiles:financingservice

vertically integrated processes:prefabrication rangelogistic services...

integrated auxiliary services:legal affairsPR...

intra-corporate service rangelow high

0

1ef

forts

for c

ore

task

s

tota

l effo

rts

Advantages:know-how focusingprofile improvementcost optimization

Disadvantages:loss of know-howcommunication and coordination effortsirreversible dependence on suppliers

current

trendformer trend

Strategic Company Repositioning

In the past companies often executed strategic repositioning by concentration on the enlargement of the scope of services. In contrast to this, today importance is attached to the core competences and on all capabilities and processes of the company, which are relevant to supporting core competences. By judging processes in accordance to their relevance decisions about enlargement or reducing of the scope of services can be taken. Enlargement to enter new markets and reducing to safe costs.

An example of the strategic repositioning of a company is reducing the manufacturing range. Internal “sensors“ have to report on which tasks are relevant resp. irrelevant. Outsourcing the canteen or the own license department can be a sensible option and save fixed costs, whereas outsourcing the IT is rather controversial.

When repositioning a company it is often reasonable not to think in a product-specific manner. In many cases the customer does not want a specific product but the corresponding benefit. For example a forwarding agent is not interested in a specific truck but in the corresponding transport capacity. Mercedes-Benz recognized this trend and hardly sells trucks; they have concentrated on supplying the effective transport capacity. The elevator manufacturer Kone also usually sells transportation capacity instead of elevators, which contains service and granted function, etc.

By offering auxiliary services connected to the product such as service and financing, new markets can be developed. In Eastern Europe the demand is high but the financial means are low, so a product can only be sold when applying an appropriate financing concept.

L10 Page 8

Lecture 10

Page 9: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 9

Module and System Procurement of the OEMs

80

60

40

20

0

purchase range (%) reasons

reduction of the manufacture range

reduction of the development range

reduction of investments for new production lines

transfer of market risks to suppliers

use of pay scale advantages by suppliers

reduction of internal complexity

reduction of logistic efforts

reduction of development coordination efforts

cutback of supplier redundancies regarding R&D-resources

use of external specialized development capacities

realization of OEM-spanning scale effects

acceleration of development dates

concentration on core competencies

* estimated

sources: Bossard, Mercer (2002)

• How important is the service element to be outsourced for the own company?

• How capable are the suppliers?

Attention:

!

40

1993

65

2002 2015

77*

Module and System Procurement of the OEMs

Topical studies forecast a continuing trend of an increasing proportion of purchased parts and component groups up to estimated 77% in 2015. But today there already exists OEMs whose purchase range is about 80%, e.g. Porsche.

The main reason is the increasing technologic capabilities of the suppliers and the willingness of the OEMs to outsource their technical competences.

Nevertheless the estimation for 2015 as shown above must be handled with care. The OEMs have to ensure to stand independent of the suppliers. The current situation emphasizes the importance of this problem. Because of the increasing purchase range some so-called “mega suppliers” like Bosch or Magna evolved over the years. At the beginning of this development primarily the OEMs pressurized their suppliers (especially with respect to costs and quality). But nowadays the mega suppliers turned the table and due to their dominant market position they are able to pressurize the OEMs.

In consequence the competences of the OEMs are reduced to the range of the "customer relationship management" (see also lecture 2). Although some suppliers almost manufacture the entire product, they just lack the image and the customer base. At the moment, it would hardly be possible to sell a car named “Bosch”.

The danger by technical dependence appeared shortly, when in February 2005 defective diesel fuel injectors by Bosch caused call-backs and production stops by among others Mercedes and BMW.

L10 Page 9

Lecture 10

Page 10: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 10

Risk Classification for New Activities

portfolio to support the risk classification for the development

of new activity areasknown new

know

nne

wtechno-

logymarket/customer

legend:

risk for activity rises

Risk Classification for New Activities

When developing new activity areas, a company has to identify which parts of the existing business can be transformed into innovation, which parts are the “tree” to hold on to.

For example it would be a high risk adventure if the sun roof manufacturer Webasto would be mad enough to take over the coffee roaster Tchibo. It is more common to hold on to at least one area, either the customers or the technology. At present Webasto conquers the bus door market as bus doors are in some respects comparable to sun roofs. In addition Webasto is world market leader in the field of auxiliary heating systems for busses and thus has excellent connections to the bus manufacturers. Therefore the risk is manageable.

It is always important to probe options systematically and then design innovations in a well ordered manner.

L10 Page 10

Lecture 10

Page 11: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 11

60

0design schedulingplanning manufacturing testing

failu

re ra

tio w

ith re

spec

t to

cost

sha

res

[%]

implementation

failure occurrence

trouble shooting actions

source: VDI 2247

The Quality of the Product Development

The Quality of the Product Formation

Examinations regarding the quality in the product development process have shown that most failures (75%) are generated during the early planning phases, but they are often not detected before the production, the quality inspection or in the worst case not before the use of the customer. As costs of failure correction increase exponentially in the time a high quality level during the planning phases is very important to reduces costs.

The correction of failures during later phases is not only much more expensive, but can also damage the image, for example by call-backs. The consumer pays attention to such things!

So action has to be taken in order to recognize and avoid failures already in the early phases (in which product costs and function are influenced).

additional literature: Betriebshütte Kap13.15 Qualitätsmanagement in der Produktion

L10 Page 11

Lecture 10

Page 12: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 12

Definition:Simultaneous Engineering is the integrated and time-parallel processing of product and process design aiming at:

shortening the “time-to-market” from the product idea to its implementation, reducing the development and production costs andimproving the product quality according to the comprehensive sense of “Total Quality Management“

product planning

production planning

Guidelines:

1

2

utilization of big improvement potentials by coordinated decisions In the early phasesavoidance of modifications causing high costs during later phases

Systematic and Definition of Simultaneous Engineering (S.E.)

Systematic and Definition of Simultaneous Engineering (S.E.)

Due to the division of labour and the complex interconnections of today‘s world, processes and products must be designed at the same time in order to be faster and better than the competitors.

SE deals with the problem of lacking coordination during the early phases of the product development process (see page 11).The basic idea of SE is “parallelization”. It means that even “fuzzy”, i.e. not confirmed information, is exchanged with the aim of enabling all involved experts to check approaches and ideas at an early stage. Product and process design are processed at the same time.

Thus it becomes possible to reach the generally contrary aims of better quality, cheaper costs and shorter (cycle-)times at the same time. Yet SE needs to be well organized, which is not trivial.

additional literature: Simultaneous Engineering, Kap.1 Ziele und Potentiale des SE

Betriebshütte, Kap 7.5 Integrierte Produkt- und Prozessgestaltung

handout of the lecture 4, PM I

L10 Page 12

Lecture 10

Page 13: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 13

Relationships between Manufacturers and Suppliers in the Automotive Industry

original equipment

manufacturer (OEM)

1st tier

2nd tier

3rd tier

OEM

system integrator,

module supplier

system specialist

parts/component supplier

50 – 500 system

suppliers at 1st level

Industry-wide cooperation because of: …the technological complexity…the economical risk…the need for capacity…the innovation demands

ask too much of a single supplier.

Relationships between Manufacturers and Suppliers in the Automotive Industry

As shown in the chart above there are different levels of suppliers. The OEM primarily keeps in touch with the first level supplier, who then deals with the lower level suppliers.

At the same time industry-wide cooperation is necessary as the technological complexity of the product, the corresponding economical risk, the need for capacity and the innovation demands cannot be performed by a single supplier.

L10 Page 13

Lecture 10

Page 14: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 14

Characteristics of Development Processes

Preliminary developmentStrategic tasks

system analysis

technology monitoring for product andprocess technologies

long-term product planning (5-10 years)

trend analyses (effect analyses,license analyses)

Operative taskstechnology assessment for certainproduct and process technologies

elaboration of design rules for theapplication of technology (“Design forManufacturing”, standardization)

Result:maturity phase ofproduct/process tech-nologies,conceptstudies,functionalprototypes

Task

s

System developmentsystem platform development

and design

customer neutral

fulfilment of demands specific to the automotive industry (designed space, power, reliability, number of units)

adaptation to own existingmanufacturing resources (DFx)

defined interfaces for customer characteristics (e.g. data links)

Dfx: Design For x (assembly, manufacturing, ...)

Result:prototypeswhich areready for productionand non-specific tocustomersor types

Task

s

Development at customer’scustomization of system platforms in order to getcustomer/model specific products

use of system platforms

adaptation to customer/type specific demands (design,quality, connections, integration into vehicle)

Problem solving

Characteristics of Development Processes

When designing development processes the fact has to be taken into account that these processes can be fundamentally different. So different design approaches are required.

During the preliminary development it is the aim to study functional concepts. Details such as squeaking hinges are not important in this phase. An example for a typical question is: Does the engine work at -40°C at all?

Afterwards the functional concepts of the preliminary development are detailed and handled during the system development. For example the details such as the surface finish.

Finally the development at the customer adjusts the solution of the system development to the demands of specific orders (e.g. extra-features).

L10 Page 14

Lecture 10

Page 15: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 15

Structuring the Extent of Development Phases

development

phase

project frontend

styling modelmile

ston

e pl

an o

fsy

stem

sup

plie

r

service range

objects, services

start request

target catalogue

provide specification sheet

bumper module mounting structure front hood lock radiator module radiator cowling

rough concept rough concept rough concept

concept elaboration concept elaboration concept elaboration check documents concept elaboration

concept elaboration

schedule/costs projection, performance indicators

Structuring the Extent of Development Phases

One method of shortening the development time possible is to divide the whole product into different modules, so that they can be developed simultaneously. The development process should be structured in order to run smoothly. Unnecessary loops should be avoided. The transparency of data is of essential importance.

Milestone plans help to coordinate parallel activities within the development process.

additional literature: Betriebshütte, Kap 6.4.1 Ablauforganisation

Betriebshütte, 7-132, Absatz PNEP

L10 Page 15

Lecture 10

Page 16: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 16

SE Team

module team

system supplier

module team

OEM

decision makers

OEM

decision makers

team leaderR&Dsales

quality management

purchase

module assembly planning

quality management team leader purchasedevelopmentpreparation of production

additional

module teamsif requiredjour fixe

representative OEM R&Dteam leadermodule team

OEM

team leadermodule team

system suppliers

responsible system supplier

responsiblesystemsupplier

team leadermodule team

systemsuppliers

CPL(if required)representative

componentsupplier

(if required)

compo-nent

A...

compo-nent

B

CPL CPL CPL

coordination if required

project staffofficemethodscoachingIT

Legend:R&DCPLITOEM

Research and DevelopmentComponent Project LeaderInformation TechnologyOriginal Equipment Manufacturer communication

SE Team

When performing SE, complex tasks such as the development of a new car body comprising design and techniques must be processed with regard to the time and with the aim of finally achieving a product. The large number of co-workers involved causes highly complex coordination processes.

This is why today companies provide resources to SE-teams, e.g. they erect own houses used by SE teams, where whole project teams stay in close contact during the course of a project, which affects the communication very positively .

Regarding the complexity there two vital preconditions for SE:

L10 Page 16

• Clear decision structures must be created on the basis of responsibility, power and competence. The decision makers should be able as well as allowed to decide!

• Access to the complete range of data must be granted to the whole team. 100% of transparency in terms of data and results must be assured by means of accurate data preparation.

additional literature: Simultaneous Engineering, Kap. 2.4 Organisationsstrukturen

Lecture 10

Page 17: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 17

Customer-oriented Sales Organization through Key-Account-Management

customer 1

customer 2

customer X

product 1 product 2 product nkey account 1

key account 2

key account n

Tasks of the “key account manger”:

scout for his company

problem solver for the customer

elaboration of solutions in an interdisciplinary team (from product developer to controller)

recognize and disarm weak points in the manufacturer-customer-relationship

determine not only product, but also service quality

Customer-oriented Sales Organization through Key-Account-Management

So-called Key-Account-Managers provide great advantages for the decision management of a company. They project their own technical abilities onto the customer, acting as intermediaries between manufacturer and customer.

Advantage of the customer: He requires only one contact person, who receipts his orders and desires, directed them to the right person within the company and informs the customer about the progresses.

Advantage of the company: Better coordination of communication to the customer and reduction of redundancies.

The bundling of customer-related activities at a Key-Account-Manager is a precondition for clear decision structures. It provides the required flexibility, which means nothing else but well-ordered quickness.

L10 Page 17

Lecture 10

Page 18: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 18

Customer Relation Matrix

Her

r Kra

mer

Her

r Mül

ler

Her

r Sch

mid

tH

err R

einh

artz

Frau

Bec

ker

Frau

Hol

leH

err M

eyer

Her

r Fra

nkH

err K

üppe

rH

err J

anse

nFr

au W

eber

Frau

Mai

sen

Herr AaltoHerr NiehausHerr ClassenHerr DickHerr EbertHerr WalterFrau BlitzFrau DonnerHerr Zorn

Instrument for the evaluation

of staff-level inter-company

relationships

Legend:

never seen

he knows him butnot both-ways

they know each other

they work together

they sometimes havea beer together

development sales dept.

supplier

customer(OEM)

sale

s de

pt.

d

evel

opm

ent

Customer-Relation-Matrix

Cultivation of relationships is another part of a company‘s activities. The analysis of “Who was involved in the awarding of a contract on the customer‘s side?” as well as “Who knows the involved persons how well on the manufacturer‘s side?” is a good opportunity to learn from the loss of a contract. By listing these relationships, you get the Customer-Relation-Matrix.

The relationships to the decision-makers of the customer during all phases of the awarding process can be analysed and identified. If there are none or few, efforts have to be made to install them.

L10 Page 18

Lecture 10

Page 19: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 19

Use of Virtual Engineering in the Automotive Industry

Benefits:reduction of the number of physical prototypes

reduction of developmenttimes and costs

control of changes

Strategy:physical prototypes only on the basis of digital prototypes!

degr

ee o

f fre

edom

for d

evel

opm

ent

time

Vision:The first car is sold!*

conceptdesign

product andprocess

development

tool makingmanufacturing and assembly

Δt

VirtualEngineering

* source: Audi

Notes:

L10 Page 19

Lecture 10

Page 20: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 20

Recommendations: Human Being

motivation

responsibility

training

guidance

self-inspectionwhite-collar workers also

have to work in the production for 1-2 days per year

flexibleworking hours

financial bonus for successful contributions to the

suggestion box

Recommendations: Human Being

SE does not only involve machines but primarily human beings!

In order to make people work well, it is important to motivate them, to place the responsibility for actions on them, to train them well and to guide them properly. Innovation only evolves if the possibility to innovate, the ability to innovate and the willingness to innovate occur at the same time. It must not be forgotten that consultancy and discussion are important aspects of leadership.

For example, responsibility is placed on the workers by self-inspection. Flexible working hours help the workers to maintain a certain scope for developments in their lives.

It can be a good idea to make white-collar workers work in production in order to facilitate their understanding of external problems and to find completely new solution approaches.

L10 Page 20

Lecture 10

Page 21: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 21

Glossary of the lecture (I/III)

Simultaneous Engineering (SE) (synonymic: Concurrent engineering (CE))

Innovation Technological product and process (TPP) innovations comprise implemented technologically new products and processes and significant technological improvements in products and processes. A TPP innovation has been implemented if it has been introduced on the market (product innovation) or used within a production process (process innovation). TPP innovations involve a series of scientific, technological, organisational, financial and commercial activities. The TPP innovating firm is one that has implemented technologically new or significantly technologically improved products or processes during the period under review.

(source: Oslo Manual, second edition, 1997, www.oecd.org)

Simultaneous Engineering deals with an integrated and time-parallelised execution of the product and process design with a view to:

- shortening the period from the product idea up to the introduction into the market (time-to-market),

- reducing of the development and manufacturing cost and

- an improvement of the product quality.

The optimisation of organisational interfaces is reached by an horizontal and a vertical task integration..

- horizontal: Combination of task along the process chain

- vertical: Completion of planning acknowledge by using operators know-how.

Page 22: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 22

Glossary of the lecture (II/III)

Product innovation A technologically new product is a product whose technological characteristics or intended uses differ significantly from those of previously produced products. Such innovations can involve radically new technologies, can be based on combining existing technologies in new uses, or can be derived from the use of new knowledge.

A technologically improved product is an existing product whose performance has been significantly enhanced or upgraded. A simple product may be improved (in terms of better performance or lower cost) through use of higher-performance components or materials, or a complex product which consists of a number of integrated technical sub-systems may be improved by partial changes to one of the sub-systems.

(source: Oslo Manual, second edition, 1997, www.oecd.org)

Process innovation Technological process innovation is the adoption of technologically new or significantly improved production methods, including methods of product delivery. These methods may involve changes in equipment, or production organisation, or a combination of these changes, and may be derived from the use of new knowledge. The methods may be intended to produce or deliver technologically new or improved products, which cannot be produced or delivered using conventional production methods, or essentially to increase the production or delivery efficiency of existing products.

(source: Oslo Manual, second edition, 1997, www.oecd.org)

Page 23: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 23

Glossary of the lecture (III/III)

Key-account-management sub-range of customer marketing handling the care of major customers predominantly. Attributes of this care are a customer related attitude, a sophisticated way of processing, special form of organisation and special work methods/techniques. The primary reason of installation is creating a platform which affords growth in the markets. This contains the long-termed extension of business connections to "familiar customers", the acquisition of prospects and securing of local marketability.

Page 24: Product Lifecycle Management III Simultaneous … Lifecycle Management III - Simultaneous Engineering ... Product Lifecycle Management III - Simultaneous ... industry the product life-cycle

Production Management II (Prof. Schuh)

Product Lifecycle Management III - Simultaneous Engineering

WZL©

Page 24

Additional literature to the lecture

Eversheim, W.; Bochtler, W.; Laufenberg, L.: Simultaneous Engineering. Springer-Verlag,1995.

Simultaneous Engineering

Eversheim, W.: Prozessorientierte Unternehmensorganisation, 2. Auflage. Springer-Verlag, 1996.

Prozessorientierte Unternehmensorganisation

VDI-Richtlinie 2247, Qualitätsmanagement in der Produktentwicklung. VDI Gesellschaft Entwicklung, Konstruktion, Vertrieb, 1994

VDI-Richtlinie 2247

Bleicher, K.: Das Konzept integriertes Management aus St. Galler Management –Konzept, Band 1. Campus-Verlag, 2001

Das Konzept integriertes Management

Eversheim, W.; Schuh, G.: Betriebshütte, Produktion und Management, 7. Auflage. Springer-Verlag, 1996

Betriebshütte, Produktion und Management