Innovation in mid-size company. Who is LVD?
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1 Innovation in mid-size company Who is LVD? 1
2 Mission LVD offers worldwide a full range of integrated products for sheet metal working. Our People and products provide customers with an intelligent solution for higher productivity and faster growth. Personnel LVD Group LVD Company LVD Group LVD SA Personnel Nationalities 13 (Belgium, USA, China, France, UK, Rumania, BiH, Croatia, Slovenia, Italy, Netherlands, Morocco, Algeria) LVD S2 Languages (Dutch, English, French, German, Italian, Spanish, Portuguese, Greek, Swedish, Finnish, Danish, Norwegian, Romanian, Polish, Serbo-Croatian, Slovenian, Czech, Chinese, Arabian dialects, ), Accumulated turnover: 200 million Euro 30 2
3 Main Production Facilities LVD-HD (China) Major Worldwide References 3
4 Buckets Telescopic cranes Transportation equipment Food industry 4
5 Omega profiles Light poles Laser Cutting Systems 5
6 Punch Presses Press Brakes 6
7 Management of Complexity Some definitions A feature is a property of the product that offers value for the customer. For each feature several options can be chosen A variant of a product is defined by a combination of features The more allowed features, the more possible variants Extreme : personalised product 7
8 Feature : Options : press force 80 ton 135 ton 220 ton Feature : Options : working length 2000 mm 3000 mm 4000 mm features available in price list # Type 80/15.,135,170,...220/61 16 uitlading Uitlading vermeerderd met 100 mm 3 mesklemming type 6 schuinstelling 1mm/m of 5mm/m 2 opening Afstand tafel-ram 3 slag Slag van de ram 3 werksnelheid standaard of Turbo versie 2 achteraanslag 2-assig, 5-assig of module 3 Slag X-as 600 of Matrijs klemming Hydraulische of manueel 2 opleg tafel hard of zacht 2 lef ja of nee 2 lasersafe ja of nee 2 afscherming niet CE of CE 2 voorsteun Voorsteun T-assen 6 koeling hydr Olie / luchtkoeler / water 3 verwarming hydr Olieopwarmer 2 tweede bediening Tweede standaard bedieningspost 2 tweede voetpedaal Tweede voetpedaal 2 PPEB : 1, variants Spanning andere voltage dan 400 V 8 8
9 Why so many variants : sales logic sales # variants Inventarisation of existing situation frame aandrijving hydraulica functie # varianten Plaatgroep Freemgroep Zetbalkgroep Stempelklemming leiding hydr klemming schema hydr klemming hydrogroep ophanging schuinstelling Linker cilinder Rechter cilinder Geleidergroep encodergroep motor-pompgroep cilinderblok zijdelingse kleppenblok pompblok aanzuigventiel hydraulisch schema leidingsgroep features volgens prijslijst Type 80/15.,135,170, uitlading Uitlading vermeerderd met 100 mm mesklemming type schuinstelling 1mm/m of 5mm/m opening Afstand tafel-ram slag Slag van de ram werksnelheid standaard of Turbo versie achteraanslag 2-assig, 5-assig of module 2 1 Slag X-as 600 of matrijsklemming Hydraulische klemming of manueel opleg tafel hard of zacht 2 lef ja of nee 2 lasersafe ja of nee 2 1 afscherming niet CE of CE 2 voorsteun Vooraanslag T-assen 6 1 koeling hydr Olie / luchtkoeler 2 1 Olie / waterkoeler 2 1 verwarming hydr Olieopwarmer 2 1 tweede bediening Tweede standaard bedieningspost 2 tweede voetpedaal Tweede voetpedaal 2 Spanning andere voltage dan 400 V 8 1 # frames = 16*3*2*3*3*2*6 = ! 9
10 This is a typical situation: A product is sold with standard (short) delivery time. because the product is available in the pricelist. When launched into production, it comes apparent that of some components no drawings are available. Development cannot start immediately (they are working on something else) Methods have to work in a hurry : they make a mistake. Purchase has no time to negiociate on good prices. Ordered components arrive too late. Logistics : assembly cannot continue because some components are missing. The customer is unhappy : delivery 5 weeks too late. Cost calculation reveals that the margin was terrible. Production logic cost # variants 10
11 Production logic A product consists of a number of modules Each module is dependent on a number of features The more dependency of a module on different features, the larger the complexity in the organisation : More development & drawings More methods & nc programs More purchase of smaller quantities More stock More components too late More working capital required More production overhead More errors in sales Tension Sales wants more variants Production wants less variants 11
12 Optimum # variants? sales margin cost # variants modular design sales margin cost # variants 12
13 Ideal modular design module 1 module 2 module 3 module 4 module 5 feature 1 1 feature 2 1 feature 3 1 feature 4 1 feature 5 1 challenge : definition of interfaces Objective of modular design: Make the design and the interfaces such that each module is dependent on so few features as possible Make less different modules. Use a module on as much models as possible, so that they can be manufactured in higher quantities 13
14 example : make frame independent of stroke after modularity exercise : # frames = 16 * 3 *2 * 3 = 288 (1/36) 14
15 Lessons learned : biggest cost driver (generator of complexity) : not the number of modules in a product but the number of dependencies Challenge : How can the process of new products development be organised in order to keep complexity into proportion? Implementation in LVD Step 1 : define the features Step 2 : define the modules Step 3 : generic BOM Step 4 : product configurator Integrated into 1 excel application (with some VB) 15
16 Step 1 : define the features and their options Future extension is possible Lesson learned from the past : Often features are introduced after the definition of the modules : result : complexity Hence : define features before development starts and commit sales people to stick with it. Also define which features exclude other features Step 2 : define the modules and explicit their feature dependency increasing complexity discussion and definition of the interfaces : minimise complexity 16
17 So far : No mechanical drawings have been made No electric schematics have been made But product structure and interfaces are solid Step 3 : generation of generic BOM automatic generation of empty structure 3 options 6 options 18 possibilities for this module 17
18 Step 3 : generation of generic BOM Fill in the list during design module dependent on 1 feature module dependent on 2 features module dependent on 3 features increasing complexity LVD : module dependency max 4 features! 18
19 Step 4 : PCF and specific BOM Production people take the appropriate options chosen by the customer (sales order) Step 4 : PCF and specific BOM Customer specific BOM is automatically generated and transferred to the ERP system 19
20 Conclusions tool that brings complexity into the picture motivates to reduce complexity integration of stakeholders (sales, development, production) no programming, only configuring all information in 1 file extension of options is easy unlimited number of variants is possible make to order => production issue Other best practices in innovation Select partners (chair at this university) Roadmap Funnel 20
21 Roadmap Long term vision & continuity Innovation funnel idea concept project prototype gate gate gate product 21
22 gate idea --> concept marketing engineering does it offer enough added value for the customer does it fit into the roadmap of the company? what is the probability on technical succes? is there a market requirement or opportunity? what is the target sales price? what is the prospected units sales / year? what is the probability on marketing succes? approved gate concept --> project marketing engineering presesented to and approved by customers? are specifications well defined? what is the cost target? what is the due date for prototype? what is the probability on technical succes? what is the estimated development effort? are the necessary resources available? where will the product be manufactured? approved Desired attitude for R&D people communication common sense open mind for whole chain after development long term vision divergent & convergent thinking make the innovation process transparent 22
23 Thank you for the attention Any questions? 23
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