Sharing high-tech ambitions

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2 Established in 1900 as Philips Machinefabrieken 1980: begin offering solutions to external customers From components to modules and complete systems 2000: become Philips Enabling Technologies Group 2006: become VDL Enabling Technologies Group 2

3 VDL Group sub contracting bus group finished products mechatronic systems module assembly part and sheet metal surface treatments plastic processing other specialities touringcars public transport bus mini and midi busses chassis modules second hand trade medical equipment process installations consumer products production automation various products 3

4 6 SITES SPECIALISTS SQ.FT 275 MILLION EURO ISO 9001, ISO 14001, ISO ERP BaaN IV 4

5 Sharing high-tech ambitions VDL ETG world wide locations Eindhoven Almelo Singapore Suzhou, China 5

6 Our key competences Machining Modern turning and milling centers Multi-axis complex geometry machining Advanced materials technology Vacuum technology Ultra precision technology Sheet metal Modern sheet metal centers Complex frame production Vacuum and specific welding methods Production of covering including painting Advanced materials technology System integration and assembly Cleanroom and non cleanroom assembly Assembly of modules and complete systems Final test of complete systems and modules Process control and validation 6

7 Our key competences Engineering (Co-) Development and engineering Project management (Six Sigma, Prince 2) Design and product optimization (DFX) Sustaining of product documentation Access to Philips resources and Technical Campus Long-standing relationships with knowledge institutes Supply-chain management Supply chain control and optimization Flexibility (see next slide) Lead-time road-mapping and lead time reduction Break-even point reduction Property right Intellectual property right protection Production under license 7

8 Market & customer driven 8

9 Global economy drivers 9

10 Requiring High performance building blocks 10

11 Sharing high-tech ambitions Requiring key processes & technologies 11

12 Requiring high performance modules 12

13 Requiring enabling machinery & people 13

14 Project maak-boer? 14

15 Why project VDL ETG? Profit zone: low volume contract manufacturing Sharing high-tech ambitions Added value shift: from contract manufacturing company to contract engineering & manufacturing company Our ambition to enable this shift: Take ownership of non-core customer development projects But: "Our biggest competitor is our customer So: we need to be the best in managing projects it is absolutely essential that customers perceive us to be in total control of their outsourced projects 15

16 When to invest in VDL ETG? Usefulness of professional Project Management is clear: Complex products complex processes Project leaders needed to implement and realise and receive fame & blame Company mission statement: make profit Project loss Disaster Necessity to improve also quite clear: Every product is unique, therefore every project is, therefore every project approach is different, therefore hard to control Projects are never finished (on-time) uncontrolled s Project principal project user internal principals / external users Bleeder-project merged usefulness & necessity into action 16

17 Why invest in VDL ETG? Business case driven driving force for project reason, project goals, risks, changes, etc Think in products; not in activities Product based planning, deliver what is promised Reviews at Milestones; not at calendar date (or every bloody Monday with full MT present ) Role steering committee 2 project management layers, helping the project move forward Risk & change management Almost implicit as part of the working methods Work packages Split-up of complex projects into bite-size chunks 17

18 Prince2 implementation ETG Sharing high-tech ambitions Practice-what-you-preach style GAP analysis: P2 vs. ETG PM top 5 hot issues to improve Project managers trained in P2 Project managers work out improvements Project members trained in P2 Project managers test improvement on (small) pilot projects Project managers upgrade P2 to practical standards Company wide roll-out 18

19 GAP-analysis Bleeder assessment Sharing high-tech ambitions 16 interviews - Open questions - Stakeholders 2 projects: -Bleeder: project -Feeder: project 11 questions (benchmark) document study beleid x mgt committment x x beheersing systemen x x borging van kwaliteit x x procesgerichtheid x x klantgerichtheid x x aanpassingsvermogen x x teamvorming en -ontwikkeling x x omgaan met teams x x doelgerichtheid x x product architectuur x planning en control systemen x x ist soll benchmark engineering Sterk flexibiliteit van de mensen. Vakmanschap mbt werken goede creativiteit en inzet monteurs Techniek: maakbaarheid Uiteindelijk komt er een goed product uit. bc klant niet voldoende begrepen onderschatting werk en organisatie structuur geen dwingend management onbekend proces van engineering / projecten doen no cure no pay verkocht, op urenbasis ingekocht verhouding inleen /eigen kennis electronica Zwak SWOT Kans weinig concurrentie klanten zoeken onze bijdrage wel hoofdaannemer op wereldschaal ander werk bij coherent (moeder Lambda) vervolg bij Axcellis gap bij klant tussen beleving/verwachting en wat wij leveren hoeveel projecten kun je aan? fin resultaten komen op straat en klanten haken af Demcon neemt de lead rollen omgedraaid Bedreiging status Prince2 Improvement recommendations 19

20 Improvement recommendations Prince2 style Project structure standardization & review structure Business case & project brief PBS WBS Quality Changes & risks Work packages & Quality So much for theory & idealism now the actual practice 20

21 21

22 Project structure standardization grip/no grip? Standard approach implemented Thanks to Fortes Principal Toolbox 22

23 Business case & project brief grip/no grip? What does this project contribute? Business case driven PM? Project goals clear? Products, not activities? Winst moake ; per project, every project! Much clearer because of open debate & customer involvement Better, but still very abstract Sub- product Sub- product Sub- product 23

24 mechanica testen bevestigings principes div motoren vergeleken best. analyse Hardware oude methodiek best. Software opzet strategie keuzes maken meetunit mecahnica fabr teken. detailleren definitief betsellen en aanmaak \proto1 delen betsellen en aanmaak def. protodelen afroepen motor en inplannen test samenbouw en FAT proef op oude en aanpassingen motor succesvol SAT vaststellen instructie voorbereiden controle nauwkeurigheid aangepaste systematiek wat en hoe incl voorstudie mechanica testen bevestigings principes div motoren vergeleken best. analyse Hardware oude methodiek best. Software opzet strategie keuzes maken meetunit mec hani ca b evest igi ngs p ri nci pes div mot or en v erg elek en t est en b est. H ar dw ar e a nal yse o ude met hod iek b est. Sof t war e o pzet s tr at egi e k euzes mak en mee tun it deelprincipe delingprincipe gekozen uitgewerkt slijpsteenbevestiging principe mock-up bestellen en maken 3d model opbouwen vastgesteld test voorbereiden lijst te testen maten maken met klant input ruimte-envelloppen testen bepalen, afzuigvolumes afzuigkanalenloop getest en aanpassingen mock up 3D mock up rapportage knelpunten houten vastgesteld succesvol NB: werkalleen voor test rij toegevoegd uren toevoegen is start planning parameter bepaling afgerond bewezen / detailleren simulatie oude io afgerond positief (nog principes steeds aanpassen bewezen) toetsen op sensoren simulatie toets op directe koppeling snelhied, criteria keuze onrondh en strategie (onrondheid gemaakt meten) voorbereiden def ontwerp deelprincipe delingprincipe gekozen uitgewerkt slijpsteenbevestiging principe mock-up bestellen en maken 3d model opbouwen vastgesteld test voorbereiden maken van lijst te testen maten met klant input ruimte-envelloppen testen bepalen, afzuigvolumes afzuigkanalenloop getest en aanpassingen mock up 3D mock up rapportage knelpunten houten vastgesteld succesvol NB: werkalleen voor test rij toegevoegd parameter bepaling afgerond bewezen / detailleren simulatie oude io afgerond positief (nog principes steeds aanpassen bewezen) toetsen op sensoren simulatie toets op directe koppeling snelhied, criteria keuze onrondh en strategie (onrondheid gemaakt meten) sl ij pst eenb evest igi ng dee lpr in cipe gek ozen deli ngpr i ncip e uit gew er kt p ri nci pe 3d mode l opbo uwen mock- up best el len en maken va stg este ld tes t voor ber ei den maken van l ijs t te t est en ma ten m et kla nt i nput r uimt e- envel lo ppen te sten bep ale n, af zuig volu me s gez amenli jk e ui t voering t est af zui gkanal enl oop ge tes t en aa npassi ngen m ock up 3D mo ck u p hou ten r appo rt age kn elpu nte n vast gest el d succ esvol p ar amete r b epal ing a fge ro nd b ewe zen / o ude io p ri nci pes a anpass en t oet sen op cr i ter i a ( on ron dhei d met en) det ai l er en af ger ond sen sor en keu ze gemaa kt N B: w erkal een voo rte st rij t oege voegd vo ldoe nde doorl oopt ij d? si mula ti e po sit ief (n og st eed s be weze n) si mula ti e t oet s op direct e koppe li ng snel hied, onrond h e n st rat egie uitvoeren detaillering uitvoeren realisatie mecahnica fabr teken. detailleren definitief betsellen en aanmaak \proto1 delen betsellen en aanmaak def. protodelen afroepen motor en inplannen test samenbouw en FAT proef op oude en aanpassingen motor succesvol SAT vaststellen instructie voorbereiden controle nauwkeurigheid aangepaste systematiek mecahn ica det ai le re n fa br t eken. def ini t ief b ets el en en aanm aak \ pr ot o1 d ele n be tse le n e n a anmaak def. prot odel en af roe pen moto r en in pla nnen t est s amenbou w en FAT tes t uit voe ren met k lant ra ppor ta ge knel punt en pro ef op oud e en aanpa ssing en mo tor succesv ol gee n S AT va stst el len nazu igen di rec te inst ruct ie voorberei den kopp eli ng cont ro le nauw keur ig heid aange past e syste ma ti ek in terf ace en manua l komen overeen wa t en ho e inc l voor st udi e mechani ca test en best. Har dwar e bevesti gings pr incipe sdi v mo tor en verg eleken analyse oude me thodi ek best. So ft war e opzet str at egie keuzes ma ken meet unit sli jpst eenbevesti ging pr incipe vastgest eld deel pr incipe gekozen r uim te- envel oppen bepal en, afzui gvolum es af zuigkanal enl oop par amet er bepali ng afg erond bewezen / oude io principe s aanpassen toet sen op cri ter i a (o nrondhe id me ten) voo rb er eid en def ont w er p vast gestel d det ail ler en af ger ond sensor en keuze gem aakt 3d m odel opbouw en maken van lij st te t esten mat en gezam enlij ke u itvoe ri ng t est 3D m ock up get est sim ul ati e posi tie f (nog st eeds bewe ze n) del ingpr inci pe ui tgew erkt mo ck- up bestel len en maken t est voorber ei den m et klant i nput test en r appor tage knel punten en aanpassi ngen ho uten m ock up succesvol NB : werkal een voor test rij t oegevoegd sim ulat ie toet s op dir ect e koppel ing snelh ied, onrondh en strategie ui tvo eren det ai l er in g m ecahnica det ail ler en u it voer en r ea li sat ie f abr teke n. def ini ti ef betsel len en aa nmaak \pr ot o1 del en bet sel en en aanm aak def. prot odel en af r oepen m ot or en inpl annen t est samenbou wen FA T t est ui tvoer en m et kl ant r appor tage knelpunt en en aanpassingen proef o p oude mot or succesvol SAT vast st el en i nstruct ie voorberei den contr ole nauwkeur ighei d aangepaste syst em ati ek PBS WBS Quality grip/no grip? Mini-QFD (PBS-concept) Available Processes & Technolog ies relevant for project Project Goals (from sunflower) Products & Project Quality requirements Project Tree (PBS) Test Proto End product Report Report template Note: limit to main items (derived from R-log) PBS in flow Proto Report template Test Sharing high-tech ambitions Report Technical products Management products End product WBS PBS in flow gezamenlijke uitvoering test test uitvoeren met klant rapportage knelpunten WBS+snail-trail WBS + snail trail gezamenlijke uitvoering test test uitvoeren met klant rapportage knelpunten WBS+capa+lead+WPs WBS + snail trail + WP W P1 = Initial Planning W P2 WBS + stars & lightning PBS in flow waten hoe incl voorstudie voorbereiden def ontwerp = Final Planning uitvoeren detaillering uitvoeren realisatie Budgets in minutes, Customer commitment in seconds Powerful tool! But only for the abstract-minded 24

25 Cost price analysis: Starting with 3D-models and finishing with released TPD proto; continuous improvement cycle TPD approved for release Make/buy decision QLTC/ UCV Critical parts list Draft MAS (Integration sheet) TPD (change) incl. product realisation plan Detailed TPD & proto delivery plan Toolbox filled + updated during Phase 1 Make Buy Difference NXT - NXE evaluated and listed DfX issues NXT listed Concept manufacturing process critical parts (process flow) TPD concept & DfX reviews Cat 2 : Project management ph Approved PMP (Phase 1) Cost structure project in BaaN Make parts - Cost price estimation VDL Make/buy decision QLTC/ UCV Make parts - Cost price estimation VDL Make Make parts - routing VDL Prescribed/shared suppliers list ASML (QLTC/UCV by ASML) Supplier selection (approved by ASML) Critical parts w.r.t. robustness creation process CTPP created on QLTC impact Finalised DfX advises list TPD approved for release Updated cost status Phase TPD reviewed for proto (CCB VDL ETG) Preliminary toolmatrix Preliminary spare part definition Updated PBS/ WBS Phase Project team and ASML & VDL ETG mgt informed about status during Phase Rate structure Cost price estimation based on modules/ submodules Buy parts - quote/ NRE + leadtime Draft MAS NXE Supplier selection (approved by ASML) (Integration sheet) Buy parts - quote/ NRE + leadtime 25% 25% Buy Supplier selection Make/buy decision (approved by QLTC/UCV ASML) Quality feedback / improvement proposals DfX presented to NXE TPD engineers 10 25% Draft exposure profile / Cycle time Evaluate existing SC NXT for NXE FMEA manufacturing process critical parts 4105 ; R: Embedded design risk show up in volume mfg ASML SDS Target System Price LLI's List identified TPD (change) incl. product realisation plan Overview TPD approved existing tooling Updated for release Delta toolmatrix determined TPD quality, process & control doc released & accepted UCV presentation given to suppliers?? % Design FMEA ASML FMEA manufacturing process critical parts Impact analysis UCV on tooling planning for proto Phase Updated PMP Phase Salesprice estimation based on modules/ submodules SDS Target leadtime ASML Draft Target System Price divided in submodules Supplier control sheet design Quote LLI parts Top-down price Bottom-up price Tool design quote & estimation of realisation costs Updated Risks Phase Tracking & tracing spec by ASML Order ASML LLI TPD in SAP TPD in BaaN TPD in BaaN/Océ (proto) Phase 2 quote VDL ETG parts checked against SAP TPD/BOM progress control Parts robustness yield evaluated Proto assembled & tested Delta analysis cost price vs. SDS target Feedback design cost to ASML Delta analysis actual CT - target CT Filled critical capacity Make/buy decision QLTC/UCV Buy checklist Supplier selection (approved by ASML) Parts production FMEA's executed & reported FMEA change proposals TPD (Sub)Assembly FMEA's executed & reported Prio1 tools concepted & quoted Up to date ASML masterplan for phase LLI parts ordered st level assembly & test procedures available Design & realisation Proto work preps make parts Parts ordered (not LLI) Phase 2 order ASML proto tools Quote parts (not Order ASML parts (not LLI) & assy's Phase 1 LLI) & assy 's evaluation and closure Project budget comparisson Phase Feedback design Cycle time to ASML Spec tracibility method & detail (incl. from which process step) Detailed production Cleanroom, cleaning & qualification equipment Proto work preps make parts planning All parts & tooling for proto available RPN > Improved MAS Make Updated cost status Phase R: Make-do Apptech/ CTC to be transferred Supply chain reviewed (UCV) Supply chain reviewed (QLTC/ SCRA) Buy parts FMEA's executed & reported solved; >64 action plan defined UCV FMEA's executed & reported Design & realisation proto tools TPD in BaaN/Océ (proto) TPD in BaaN/Océ (proto) Proto work preps make parts Proto purchase prices filled in BaaN Improved MAS TPD in BaaN/Océ (proto) Proto work preps make parts Proto leadtimes filled in BaaN Improved MAS Draft QPS (Quality Performance Sheet) Improved MAS input tests (customer acceptance) Production plan (move rate) ASML Cat 2 : Project management ph Approved PMP (Phase 2) Toolbox filled + updated during Phase Critical parts list Draft MAS (Integration sheet) LLI parts ordered Parts ordered (not LLI) Updated cost Supplier control sheet proto Overview ASML status Phase Series Cost price calculation from BaaN (based on proto prices) 2215 R: tight schedule, lot of design changes BAMO SF assembly BAMO SISO assembly BAMO SISO BRMO assembly BM LEAF SPRING ASSY assembly BASE FRAME ASSY assembly MAGNET PLATE assembly BAMO LA & CALO assembly BAMO LSC & RSC assembly Score + actiondecision log Target System Price divided in submodules (update Proto) PP3 target cost model 25% Competence matrix Competence need Cycle time estimation proto from BaaN (proto exp.profile) st article inspection all parts (VDL ETG + 2nd tiers) SDS Target leadtime ASML Proto assembled & tested 5204; R: Proto tooling is quickn-dirty, person dependant Tool matrix updated Draft QPS (Quality Performance Sheet) Workpreparations Updated PBS/ WBS Phase 3 and OEM/ outsourced part prices Project team and ASML & VDL ETG mgt informed about status during Phase TPD-160 sheets released Training need Delta analysis series cost price vs. SDS target Feedback design cost to ASML (proto) 25% Delta analysis Commonly agreed series cost price vs. PP First Article test spec agreed with ASML Tool design & Delta analysis actual CT - target CT realisation purchase order ASML Proto accepted & shipped Tool realisation quote Updated planning for pilot Phase Acceptance testprocedures available and verified with ASML Updated PMP Phase 3 target sales price Cycle time agreements for top n initiated Issuelist with defects proto + Deviation Notice design Tool spec finalised (incl. UCV & magnet compatibility ) Tool purchase order ASML 0 Product description 0 Travel costs 0 Product description Real-time VC/NC NC proto from monitoring and NC project prediction Indentified critical parts w.r.t. cycle time Design & realisation training Data management system (tracking/ tracing) Tracibility tooling/ equipment All parts & tooling for proto available Design & realisation proto tools (shipment) LLI parts ordered Design & realisation training Cycle time reduction proposal DfX change proposals TPD NPI process assessment sheet FA spec Updated Risks Phase Project budget comparisson Phase Updated cost status Phase Cycle time Parts robustness/ yield evaluated Phase 3 quote VDL ETG Released tool concept Tool parts and components Product delivered in this category & phase Product delivered by other category & phase (no hours budgetted here ) Product delivered by ASML Updated TPD in BaaN/ Approved release of updated TPD (pilot) Design & Océ (pilot) Final MAS realisation efficiency tools Manufacturing road map available and agreed Updated TPD in SAP (pilot) Updated TPD in BaaN/Océ (pilot) n pilot systems manufactured Design & realisation per tool on separate orders Phase 3 order ASML Phase 2 evaluation and closure Series cost price parts (staffel) in ITM Parts & assembly preset and cycle times based on series in ITM roadmap estimation Critical parts tracked/traced 25% TPD in BaaN/Océ (proto) Improved MAS 25% measurement reports ready and communicated to ASML 25% Config As-built list Updated CTPP list Safety stock / process yield improvement Training: - Parts & assembly - Cleanroom - Cleaning - UCV parts - UCV assembly - Tracibility RPN >125 solved; >64 action plan defined 5 25% 5 Tooling types: - Lifting tools (large/heavy parts) - Temporary storage tools - Shipment tools - Hand tools - Machining tools - Assembly tools - Qualification tools - Measurement tools Up to date ASML masterplan for phase 3 Updated TPD in BaaN/ Océ (pilot) Series lead time parts in ITM Parts & assembly preset and cycle times based on series in ITM Final MAS Cycle time agreements for top n finalized FMEA change proposals TPD Specification training Released tool design Tool assembled Tool & test instructions finalised SPC data defined & recording defined 25% TPD in BaaN checked against SAP (pilot) Update QPS Tool qualified VC Pilot from ITM Cost price NC pilot from project Cycle time calculation series (pilot exp. profile) Factory lay-out arranged Updated PP3 target cost model Order ASML for n pilot systems n systems tested on tools Released tool TPD in BaaN & OCE Update specs based on qualification results Cat 2 : Project management ph Approved PMP (Phase 3) Toolbox filled + updated during Phase Series cost price calculation from BaaN (based on series price) Released procedures Target System Price divided in submodules (update Design & pilot) Supplier control sheet pilot/final realisation efficiency tools Improved MAS RPN (Risk Priority Updated cost status Phase Design & realisation efficiency tools Trainees Training developed Trainer Number) >64 solved n spares tested on tools Updated target cycle time scheme Final MAS 0 Product description 0 Product description 0 Product description Feedback design cost (pilot) Delta analysis series cost price vs. SDS target Delta analysis series cost price vs. PP Delta analysis VC/NC pilot Cycle time roadmap final Filled critical capacity checklist Critical parts from volume supply chain n pilot systems manufactured All tools verified against spec Definition critical parts production process steps Definition critical assembly process steps Supplier re-audits Cycle time roadmap commercially agreed Final QPS All suppliers proven ramp-up ramp-down capabilities Appointments learning curve Control plan / supplier output control Project team and ASML & VDL ETG mgt informed about status during Phase 3 Product on separate quote & order (no hours budgetted here ) Product on separate quote & order (no hours budgetted here ) Facilities by other project (CLEO) Certified trainees Updated cost status Phase Project budget comparisson Phase Costprice reduction potential on basis of redesign, purchasing, supply chain & ETG flexibility Toolplan evaluated / tool matrix updated tooling Design & realisation efficiency tools bottlenecks identified + plan made and committed All suppliers flex bottlenecks identified + plan made and committed 25% Non-critical parts from volume chain Issuelist with defects pilots + Deviation Notice design N Workpreparations parts production finalised N Workpreparations assembly finalised All volume suppliers released Personnel trained & competence matrix updated Statistical Process Monitoring (SPM) critical parts set-up NPI process assessment sheet R4V spec Draft QPS (Quality Performance Sheet) R4V tooling released Project evaluation and closure Cost price / salesprice roadmap Cost price roadmap R elat ive val ue W F-Pr ojec ts W F-Sy s tems Floor s toc k OEM -part s Out s our c ing W F-Par ts Raw mat erial s St art (s ept -05) R4 TPD in BaaN Salesprice roadmap commercially agreed Cycle time roadmap commercially agreed E xposure dev elop men t Cycle Time roadmap R: risk description W eeks bef or e del iver y R4V signed & achieved Salesprice roadmap commercially agreed Indicative characteristic for cost price development from proto to R4V Config As-built list R4 TPD signed by all departments High risk Phase separation line Category separation line Subcategory separation line Sharing high-tech ambitions Changes & risks grip/no grip? Legend Cat 1a: DfX & QLTC support Cat 1a: Cost Phase 1: Design WKx/200y WKx/200y Phase 2: Proto Phase 3: Pilot WKx/200y 9 done done Cat 1a: Logistics Cat 1a: Technology - DfX 10 done 2204 Cat 1c: Building proto done Cat 5: Production and process preparation pilot series Parts production QRC s Assembly QRC s Volume suppliers done done Cat 1a: Quality Cat 6 : Training 5 done; formalisation & retraining to be done Cat 1b Preparations tooling & proto activities done Cat 3 : Technology - Tooling (design & hardware) 10 done 10 done Phase 1: Design Phase 2: Proto Phase 3: Pilot Implicit risk assessment & avoidance! 25

26 Cost price analysis: Starting with 3D-models and finishing with released TPD proto; continuous improvement cycle TPD approved for release Make/buy decision QLTC/ UCV Critical parts list Draft MAS (Integration sheet) TPD (change) incl. product realisation plan Detailed TPD & proto delivery plan Toolbox filled + updated during Phase 1 Make Buy Difference NXT - NXE evaluated and listed DfX issues NXT listed Concept manufacturing process critical parts (process flow) TPD concept & DfX reviews Cat 2 : Project management ph Approved PMP (Phase 1) Cost structure project in BaaN Make parts - Cost price estimation VDL Make/buy decision QLTC/ UCV Make parts - Cost price estimation VDL Make Make parts - routing VDL Prescribed/shared suppliers list ASML (QLTC/UCV by ASML) Supplier selection (approved by ASML) Critical parts w.r.t. robustness creation process CTPP created on QLTC impact Finalised DfX advises list TPD approved for release Updated cost status Phase TPD reviewed for proto (CCB VDL ETG) Preliminary toolmatrix Preliminary spare part definition Updated PBS/ WBS Phase Project team and ASML & VDL ETG mgt informed about status during Phase Rate structure Cost price estimation based on modules/ submodules Buy parts - quote/ NRE + leadtime Draft MAS NXE Supplier selection (approved by ASML) (Integration sheet) Buy parts - quote/ NRE + leadtime 25% 25% Buy Supplier selection Make/buy decision (approved by QLTC/UCV ASML) Quality feedback / improvement proposals DfX presented to NXE TPD engineers 10 25% Draft exposure profile / Cycle time Evaluate existing SC NXT for NXE FMEA manufacturing process critical parts 4105 ; R: Embedded design risk show up in volume mfg ASML SDS Target System Price LLI's List identified TPD (change) incl. product realisation plan Overview TPD approved existing tooling Updated for release Delta toolmatrix determined TPD quality, process & control doc released & accepted UCV presentation given to suppliers?? % Design FMEA ASML FMEA manufacturing process critical parts Impact analysis UCV on tooling planning for proto Phase Updated PMP Phase Salesprice estimation based on modules/ submodules SDS Target leadtime ASML Draft Target System Price divided in submodules Supplier control sheet design Quote LLI parts Top-down price Bottom-up price Tool design quote & estimation of realisation costs Updated Risks Phase Tracking & tracing spec by ASML Order ASML LLI TPD in SAP TPD in BaaN TPD in BaaN/Océ (proto) Phase 2 quote VDL ETG parts checked against SAP TPD/BOM progress control Parts robustness yield evaluated Proto assembled & tested Delta analysis cost price vs. SDS target Feedback design cost to ASML Delta analysis actual CT - target CT Filled critical capacity Make/buy decision QLTC/UCV Buy checklist Supplier selection (approved by ASML) Parts production FMEA's executed & reported FMEA change proposals TPD (Sub)Assembly FMEA's executed & reported Prio1 tools concepted & quoted Up to date ASML masterplan for phase LLI parts ordered st level assembly & test procedures available Design & realisation Proto work preps make parts Parts ordered (not LLI) Phase 2 order ASML proto tools Quote parts (not Order ASML parts (not LLI) & assy's Phase 1 LLI) & assy 's evaluation and closure Project budget comparisson Phase Feedback design Cycle time to ASML Spec tracibility method & detail (incl. from which process step) Detailed production Cleanroom, cleaning & qualification equipment Proto work preps make parts planning All parts & tooling for proto available RPN > Improved MAS Make Updated cost status Phase R: Make-do Apptech/ CTC to be transferred Supply chain reviewed (UCV) Supply chain reviewed (QLTC/ SCRA) Buy parts FMEA's executed & reported solved; >64 action plan defined UCV FMEA's executed & reported Design & realisation proto tools TPD in BaaN/Océ (proto) TPD in BaaN/Océ (proto) Proto work preps make parts Proto purchase prices filled in BaaN Improved MAS TPD in BaaN/Océ (proto) Proto work preps make parts Proto leadtimes filled in BaaN Improved MAS Draft QPS (Quality Performance Sheet) Improved MAS input tests (customer acceptance) Production plan (move rate) ASML Cat 2 : Project management ph Approved PMP (Phase 2) Toolbox filled + updated during Phase Critical parts list Draft MAS (Integration sheet) LLI parts ordered Parts ordered (not LLI) Updated cost Supplier control sheet proto Overview ASML status Phase Series Cost price calculation from BaaN (based on proto prices) 2215 R: tight schedule, lot of design changes BAMO SF assembly BAMO SISO assembly BAMO SISO BRMO assembly BM LEAF SPRING ASSY assembly BASE FRAME ASSY assembly MAGNET PLATE assembly BAMO LA & CALO assembly BAMO LSC & RSC assembly Score + actiondecision log Target System Price divided in submodules (update Proto) PP3 target cost model 25% Competence matrix Competence need Cycle time estimation proto from BaaN (proto exp.profile) st article inspection all parts (VDL ETG + 2nd tiers) SDS Target leadtime ASML Proto assembled & tested 5204; R: Proto tooling is quickn-dirty, person dependant Tool matrix updated Draft QPS (Quality Performance Sheet) Workpreparations Updated PBS/ WBS Phase 3 and OEM/ outsourced part prices Project team and ASML & VDL ETG mgt informed about status during Phase TPD-160 sheets released Training need Delta analysis series cost price vs. SDS target Feedback design cost to ASML (proto) 25% Delta analysis Commonly agreed series cost price vs. PP First Article test spec agreed with ASML Tool design & Delta analysis actual CT - target CT realisation purchase order ASML Proto accepted & shipped Tool realisation quote Updated planning for pilot Phase Acceptance testprocedures available and verified with ASML Updated PMP Phase 3 target sales price Cycle time agreements for top n initiated Issuelist with defects proto + Deviation Notice design Tool spec finalised (incl. UCV & magnet compatibility ) Tool purchase order ASML 0 Product description 0 Travel costs 0 Product description Real-time VC/NC NC proto from monitoring and NC project prediction Indentified critical parts w.r.t. cycle time Design & realisation training Data management system (tracking/ tracing) Tracibility tooling/ equipment All parts & tooling for proto available Design & realisation proto tools (shipment) LLI parts ordered Design & realisation training Cycle time reduction proposal DfX change proposals TPD NPI process assessment sheet FA spec Updated Risks Phase Project budget comparisson Phase Updated cost status Phase Cycle time Parts robustness/ yield evaluated Phase 3 quote VDL ETG Released tool concept Tool parts and components Product delivered in this category & phase Product delivered by other category & phase (no hours budgetted here ) Product delivered by ASML Updated TPD in BaaN/ Approved release of updated TPD (pilot) Design & Océ (pilot) Final MAS realisation efficiency tools Manufacturing road map available and agreed Updated TPD in SAP (pilot) Updated TPD in BaaN/Océ (pilot) n pilot systems manufactured Design & realisation per tool on separate orders Phase 3 order ASML Phase 2 evaluation and closure Series cost price parts (staffel) in ITM Parts & assembly preset and cycle times based on series in ITM roadmap estimation Critical parts tracked/traced 25% TPD in BaaN/Océ (proto) Improved MAS 25% measurement reports ready and communicated to ASML 25% Config As-built list Updated CTPP list Safety stock / process yield improvement Training: - Parts & assembly - Cleanroom - Cleaning - UCV parts - UCV assembly - Tracibility RPN >125 solved; >64 action plan defined 5 25% 5 Tooling types: - Lifting tools (large/heavy parts) - Temporary storage tools - Shipment tools - Hand tools - Machining tools - Assembly tools - Qualification tools - Measurement tools Up to date ASML masterplan for phase 3 Updated TPD in BaaN/ Océ (pilot) Series lead time parts in ITM Parts & assembly preset and cycle times based on series in ITM Final MAS Cycle time agreements for top n finalized FMEA change proposals TPD Specification training Released tool design Tool assembled Tool & test instructions finalised SPC data defined & recording defined 25% TPD in BaaN checked against SAP (pilot) Update QPS Tool qualified VC Pilot from ITM Cost price NC pilot from project Cycle time calculation series (pilot exp. profile) Factory lay-out arranged Updated PP3 target cost model Order ASML for n pilot systems n systems tested on tools Released tool TPD in BaaN & OCE Update specs based on qualification results Cat 2 : Project management ph Approved PMP (Phase 3) Toolbox filled + updated during Phase Series cost price calculation from BaaN (based on series price) Released procedures Target System Price divided in submodules (update Design & pilot) Supplier control sheet pilot/final realisation efficiency tools Improved MAS RPN (Risk Priority Updated cost status Phase Design & realisation efficiency tools Trainees Training developed Trainer Number) >64 solved n spares tested on tools Updated target cycle time scheme Final MAS 0 Product description 0 Product description 0 Product description Feedback design cost (pilot) Delta analysis series cost price vs. SDS target Delta analysis series cost price vs. PP Delta analysis VC/NC pilot Cycle time roadmap final Filled critical capacity checklist Critical parts from volume supply chain n pilot systems manufactured All tools verified against spec Definition critical parts production process steps Definition critical assembly process steps Supplier re-audits Cycle time roadmap commercially agreed Final QPS All suppliers proven ramp-up ramp-down capabilities Appointments learning curve Control plan / supplier output control Project team and ASML & VDL ETG mgt informed about status during Phase 3 Product on separate quote & order (no hours budgetted here ) Product on separate quote & order (no hours budgetted here ) Facilities by other project (CLEO) Certified trainees Updated cost status Phase Project budget comparisson Phase Costprice reduction potential on basis of redesign, purchasing, supply chain & ETG flexibility Toolplan evaluated / tool matrix updated tooling Design & realisation efficiency tools bottlenecks identified + plan made and committed All suppliers flex bottlenecks identified + plan made and committed 25% Non-critical parts from volume chain Issuelist with defects pilots + Deviation Notice design N Workpreparations parts production finalised N Workpreparations assembly finalised All volume suppliers released Personnel trained & competence matrix updated Statistical Process Monitoring (SPM) critical parts set-up NPI process assessment sheet R4V spec Draft QPS (Quality Performance Sheet) R4V tooling released Project evaluation and closure Cost price / salesprice roadmap Cost price roadmap R elat ive val ue W F-Pr ojec ts W F-Sy s tems Floor s toc k OEM -part s Out s our c ing W F-Par ts Raw mat erial s St art (s ept -05) R4 TPD in BaaN Salesprice roadmap commercially agreed Cycle time roadmap commercially agreed E xposur e dev elop men t Cycle Time roadmap R: risk description W eeks bef or e del iver y R4V signed & achieved Salesprice roadmap commercially agreed Indicative characteristic for cost price development from proto to R4V Config As-built list R4 TPD signed by all departments High risk Phase separation line Category separation line Subcategory separation line Sharing high-tech ambitions Work packages & Quality grip/no grip? Legend Phase 1: Design WKx/200y Phase 2: Proto WKx/200y Phase 3: Pilot WKx/200y Cat 1a: DfX & QLTC support Cat 1a: Cost Cat 1a: Logistics Cat 1a: Technology - DfX 9 done 2204 Cat 1c: Building proto done Cat 5: Production and process preparation pilot series Parts production QRC s Assembly QRC s done done done Cat 6 : Training Training: - Parts & assembly - Cleanroom - Cleaning - UCV parts - UCV assembly - Tracibility Specification training Released procedures 5 done; formalisation & retraining to be done Trainees Training developed Trainer Certified trainees 10 done Volume suppliers Cat 1a: Quality Cat 1b Preparations tooling & proto activities 10 done 10 done Cat 3 : Technology - Tooling (design & hardware) Cat 6 : Training 5 done; formalisation & retraining to be done Phase 1: Design Phase 2: Proto Phase 3: Pilot done Preached, not really practiced yet: Work package leaders of today behave like yesterday s project leaders chasing their own tail 26

27 27

28 P2 Portfolio management kusd Business case driven portfolio VDL ETG? Business Case potential Customer NTplatform Tried to qualify & quantify sales Comments: engineer s opportunity Part Number? Assy description New planar motor Modular platform, Vacuum compatible, higher speed/accuracy, double patterning technology. Will become Customer's new highend waferstage for future lithography systems, including EUV. System NT Timing: Expected Yearly Quantity 80 Next milestone: Supplier selection Oct-06 Current Total cost 250,000 Proto's 2007 Possible Cost Reduction target 200,000 Release to market 2008 VDL ETG is a contract manufacturer has no own Complex modules for system integration Yes Vacuum module Yes 6 Assumptions: Mechatronics modules (mech, electrical, cabling, testing) Yes 0 All development cost customer paid at standard rate Motion systems Yes 0 Development effort based on DfX & SCM & design of frame product Modules requiring has alignment and no testing recovery Yes from 6 project loss Complex sheetmetal assemblies Yes Risks: > 100 parts/module 100 Yes Not meeting performance specs Customer competition: IFO cumulative Nikon, Canon: Customer is two years ahead of competition Each Financial project needs to be profitable Yes bleeders Turnover / module: > 30kEuro Yes 4 Product: Evolution/Revolution: same system concept, new motion platform Potential turnover/year > 2MEuro 2 Yes 4 (planar) become Profitable visible systems => highest gross /obvious Yes phase 0 In line with customer closure market knowhow & experience Yes Yearly quantity: > Yes 1 Customer-chance-for-success: OEM contents < 5 No ETG-must-have agruments: Next generation product replacing current XT3/XT4 products in Engineering & Technology Yes future Strong New technology focus products on project Yes financials, 4 ETG-do nothing scenarion: even project 0 ETG may probably supply known components (airbearing feet), but big chance for Customer to line up second source IFO cum., Best Guess Products starting point of lifecycle/learning curve Yes 0 IFO cum., Worst Case managers mm technology & engineers share Yes 1 the ETG-chance-for-success: enthusiasm 10 IFO cum., Best Case Potential for Modularity modules Yes 5 Potential for cost reduction No Revenu over Engineering ratio between Limited Expected T&D cost next 3 years Expected revenu next 3 years Risk assessment Overall Potential for Business Yes Business fit (Gut-feeling) Yes 28

29 P2 Portfolio management Business case driven portfolio VDL ETG? No right to refuse Lot s and lot s of projects (>150 active), each requiring to be profitable 29

30 30

31 P2 Implementation success/failures Sharing high-tech ambitions GAP analysis worked like a charm! Kept focus on the (recognized) hot issues Practice-what-you-preach works.but, learning as you go is not sufficient re-training required, sharing best practices, adapting the workflow Company roll-out: tried & died: VDL ETG is primarily a production/flow organization, PM added value is only recognized when the shit hit the fan 31

32 P2 Implementation side-effects Toolbox: transparent project administration tool forces Project managers to keep information up-to-date; forces executives out-off denial Enterprise Programmes Portfolio s Project 32

33 P2 Implementation side-effects Customer involvement in project initiation, setup, phasing, closure one-team in stead of quote refuters 3. Necessary resources 2. Required deliverables 1. Common goal 4. Get to the goal 33

34 P2 Implementation side-effects Toolbox: budgets linked to deliverables linked to timesheets Project has products Products have owners & budget Owners have timesheets PM s have overview Sum of Hours Week Product Owner Grand Total Global design tool MaPl assy to MP-frame li Arnoud Bleumink Global design tool 1256 Potting device general too Rob Roetenberg Rob Wouw, van Global design tool 1257 NXE WS BMF Lifting tool asarnoud Bleumink Global design tool 1258 Hoover tool Dick Harting 1 1 Global design tool 1262 lifttool for Mplate in BAM Arnoud Bleumink Global design tool 1267 Lifttool topcoversheet at Arnoud Bleumink Global design tool 1268 Clamping tools TCS Joost Musterd 4 4 Global design tool 1269 Pwrfeedthrough LA forcers Rob Wouw, van Grand Total

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