Benefit of the Engineering Change Management (ECM) (based on VDA )

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1 Benefit of the Engineering Change Management (ECM) (based on VDA 496-1) ProSTEP ivip Symposium; April 2, 2006 Nora Sonntag

2 Agenda UNITY AG at a Glance Initial situation, purpose & approach As-Is Analysis Effect of ECM Comparison with ECM Conclusion Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 2

3 UNITY AG at a Glance Foundation on October 1st, 199 Turnover of UNITY AG FY 04/0: Mio. 10 employees Capital stock: 600,000 Consulting Fields: Innovation & Product Development IT Management & Cost Reduction Output Optimization & Controlling Locations: Paderborn (Headquarter) Stuttgart, Hamburg, Munich Zurich, Cairo Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 3

4 Agenda UNITY AG at a Glance Initial situation, purpose & approach As-Is Analysis Effect of ECM Comparison with ECM Conclusion Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 4

5 Initial situation VDA-Recommendation Engineering Change Management (ECM) designed by the ProSTEP ivip workgroup ECM (Published through VDA 200, December 1st) M1 M2 Change idea Change potential identified ECM Identification of Potential for Development of alternative Specification and Decision on Engineering Implementation Manufacturing Implementation 1 Change 2 Solutions 3 Change 4 of Change of Change M3 Potential solution identified M1 M2 M3 M4 M M6 M3.1 Decision for ECR M3.2 ECR created ECR Engineering Change Request (ECR) Receipt of Creation of Technical Analysis Commenting on ECR Approval of ECR ECR ECR of ECR M3 M3.1 M3.2 M3.3 M3.4 M4 M4 M3.3 ECR detailed M3.4 ECR commented ECR decided The defined interaction scenarios and the defined data model are confirmed by two pilot projects of the workgroup Commitment of one OEM to implement the ECM standard So far lack of argumentation regarding the benefit of ECM M M6 ECR released Manufacturing change released What is the benefit of ECM? Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG

6 Purpose of this presentation Identification of the benefit of ECM by defining key figures of the change management process and comparing an analyzed As-Is process with the To-Be ECR process. Receipt of ECR Creation of ECR Engineering Change Request (ECR) Technical Analysis of ECR Commenting on ECR Approval of ECR M3 M3.1 M3.2 M3.3 M3.4 M4 Focus of this approach has to be the ECR process since the published VDA- Recommendation so far only describes Engineering Change Request (ECR). The wording will still be ECM. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 6

7 Approach 1. As-Is Analysis of processes without ECM based on reference projects a) Process to define a combined change management between two partners b) Process for the exchange of change information between two partners 2. Comparison of As-Is with ECM a) Process to define a combined change management between two partners b) Process for the exchange of change information between two partners Analysis and comparison of change management with and without ECM. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 7

8 Agenda UNITY AG at a Glance Initial situation, purpose & approach As-Is Analysis Effect of ECM Comparison with ECM Conclusion Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 8

9 As-Is Analysis of processes without ECM 1/4 a) Process to define a combined change management Initial situation Partnership: OEM together with system-/ module supplier Both partners have an established change management process Both partners have their own change management tool Objective Definition of a combined change management process The following aspects have to be defined for both partners Who will be playing which role Which milestones and timelines will be set in the process Which information has to be available at which milestone Coordinator Change management system Initiation of change Commenting on change (technical & costs) Decision on change Realization of change Participant??????????? Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 9

10 As-Is Analysis of processes without ECM 2/4 a) Process to define a combined change management Required capacity per partner to reach defined objective Analyzed capacity in person days (PD) without regarding project management activities Nr. Activity Capacity in MD / partner A B C Analysis of combined engineering partnership Definition of the needed change management scope Analysis of each local change management process Without ECM D Definition of combined milestones E F Definition of the necessary roles in the combined change management Definition of the information that has to be exchanged 3 3 Nr. D E Activity G H I J Compilation of field mapping Definition of data exchange format Information of defined process in the involved divisions Support during pilot time Definition of combined milestones Definition of the necessary roles in the combined change management Sum Capacity in PD/partner Capacity Sum 28 0 A B C D E F G H I J Activity Capacity of activity Sum of capacity The process to define a combined change management between two engineering partners without ECM needs a first time invest of 28 PD. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 10

11 As-Is Analysis of processes without ECM 3/4 b) Process for the exchange of change information Initial situation of the implemented change management process Exchange of change information per No automatic transfer of the exchanged data into the local change management tools Coordinator Change management system Initiation of change Commenting on change (technical & costs) Decision on change Realization of change Participant Change management system Initiation of change Commenting on change (technical & costs) Commenting on change Decision on change Realization of change This process for the exchange of change information enables the two partners to live a combined change management. At the same time it shows a number of manual interfaces which have to be analyzed. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 11

12 As-Is Analysis of processes without ECM 4/4 b) Process for the exchange of change information Capacity for the preparation of information is approximately 0,2 PD* per work step Manual arrangement of original information Partner specific arrangement of change information Regarding the process, one work step will at least take place one time for each partner per phase Initiation Technical description Commenting on costs Coordinator Change management system Initiation of change Commenting on change (technical & costs) Decision on change Coordinator Realization of change Participant Change management system Initiation of change Commenting on change (technical & costs) Commenting on change Decision on change Realization of change Participant The process for the exchange of change information generates a constant need of 0,7 PD per change for each partner. * The regarded capacity only describes what is necessary for the pure exchange of the information. No needed capacity to formulate the content. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 12

13 Intermediate result 1. The process to define a combined change management between two engineering partners needs a first time invest of 28 PD. 28 PD per partnership per partner 2. The process for the exchange of change information generates a constant need of 0,7 PD per change for each partner. 0,7 PD per change for each partner Example: Scope of supply: 200 parts Average number of changes per part per lifecycle: Needed capacity: 70 PD Needed capacity for the change management of 200 parts: 3, person years! Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 13

14 Agenda UNITY AG at a Glance Initial situation, purpose & approach As-Is Analysis Effect of ECM Comparison with ECM Conclusion Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 14

15 Effect of ECM ECM defines Roles of participants Milestones Content to exchange Data exchange format ECM therefore affects The needed capacity for the definition of roles, milestones and change information The constantly needed capacity during the process by a standardized communication and automatic interfaces Coordinator Change management system Initiation of change Receipt Technical Creation Commenting Analysis of of on ECR change of ECR (technical & ECR costs) Decision Commenting on change on ECR Realization Approval of of change ECR?? Participant Change management? system Receipt of ECR??? Technical Creation Technical Analysis Commenting Approval of? Analysis? of??? of ECR ECR of ECR on ECR ECR Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 1

16 Agenda UNITY AG at a Glance Initial situation, purpose & approach As-Is Analysis Effect of ECM Comparison with ECM Conclusion Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 16

17 To-Be Analysis of processes with ECM 1/2 a) Process to define a combined change management Required capacity for each partner to reach defined objective Analyzed capacity in person days (PD) without regarding project management activities Nr. Activity Capacity in MD / partner A B C D Analysis of combined engineering partnership Definition of the needed change management scope Analysis of each local change management process Definition of combined milestones Nr. D E Activity E F G H I J Definition of the necessary roles in the combined change management Definition of the information that has to be exchanged Compilation of field mapping Definition of data exchange format Information of defined process in the involved divisions Support during pilot time Definition of combined milestones Definition of the necessary roles in the combined Change Management Nr. Sum Sum Activity Capacity in PD/partner 28 Nr. A B C D E F G H I J Activity Analysis of combined engineering partnership Definition of the needed change management scope Analysis of each local change management system Definition of combined milestones Definition of the necessary roles in the combined change management Definition of the information that has to be exchanged Aufstellung eines Feldmappings Definition des Austauschformats Information der betroffenen Bereiche über abgestimmten Prozess ggf. erhöhter Aufwand durch Pilotphase Summe Capacity in PD /partner Capacity in MD/partner with / without ECM Comparison: Definition / without ECM Capacity capacity D Definition of combined milestones 1 E Definition of necessary roles in the combined change management 1 Without 0 A B C D E With activity F G Activity H I J Sum 18 Each partner saves 10 PD per definition of a combined change management process by the use of ECM. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 17

18 To-Be Analysis of processes with ECM 2/2 b) Process for the exchange of change information Through the standardized communication and the automatic interfaces of ECM, the needed capacity of 0,7 PD does not apply. Coordinator Change management system Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Coordinator Approval of ECR Participant Participant Change management system Receipt of ECR Creation of ECR Technical Analysis of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR The shown capacity of 3, person years for a change management of 200 parts gets completely reduced to 0 with the use of ECM. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 18

19 Summarized costs To identify the benefit of ECM it is necessary to calculate the analyzed person days with a rate of 300. Investment to define combined change management Investment per change Investment for ECM implementation Without ECM 28 PD x 300 = ,7 PD x 300 = 22 0 With ECM 18 PD x 300 = * * Assumption: costs for a tool to convert data to ECM Invest in Total investment with Partner Total investment with Partner 1 ECM Integration Partner 2 without ECM Integration Partner 1 without ECM Number of changes Through the high potential of ECM regarding needed capacity per change, the first time investment is already profitable after 140 changes. By integrating more partners the effect occurs even sooner. Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 19

20 Agenda UNITY AG at a Glance Initial situation, purpose & approach As-Is Analysis Effect of ECM Comparison with ECM Conclusion Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 20

21 Conclusion This presentation showed The integration process for a combined change management generates high expenses In case of a manual data exchange, there is a high investment for each preparation of data during the change process The implementation of ECM requires first time investment costs This presentation did not show, that ECM offers further advantages through Higher data quality Reduction of wrong decisions Higher transparency Shortened process time Improved data security With the calculated example ECM shows a benefit already after 140 changes Engineering partners can be integrated faster into the change management process Filename/Date: Benefit_of_ECM_AB.ppt/ UNITY AG 21

22 Thank you for your attention! Paderborn Lindberghring Bueren Phone Fax Stuttgart Wankelstraße Stuttgart Phone Fax Hamburg Ruhrstraße Hamburg Phone Fax Munich Amalienstraße Munich Phone Fax UNITY Schweiz AG Neugasse Horgen, Switzerland Phone Fax UNITY Egypt Ltd. 19, 26th July Street Zamalek, Cairo, Egypt Phone Fax info@unity.de

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