Product Architecture. SupplyChain Design. Improved Business Performance

Transcription

1 Product Architecture SupplyChain Design Improved Business Performance

2 Who am I Jeroen Vos [email protected] Study Phd. Mechanical Engineering Delft University of Technology Research student NTN Bearing Corporation, Japan Research Student Carnegie Mellon University, USA Guest Researcher Tampere University of Technology, Finland Work eperience Production System Architect Philips DAP Drachten Philips DAP, Singapore Business architect Philips DAP Drachten Technology & business Lecturer University of Groningen Founder & owner Asintik Keywords Focus on results, analytical, technology & business, team leader, communication & coaching skills

3 My promise in my abstract Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down to earth first actions, smart customization Your first actions Most businesses are about serving their customers well in an efficient manner. The key is in the combination of the different customer demands and design a combined product architecture and supplychain. This serves the different customer demands as well as the internal demands. In this presentation you will learn what product architecture is, why it is important to handle high customer diversity well and how it improves your supplychain performance. Most important lesson: design your product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your company s business performance. More and more companies are discovering this as a key element in their net step in improvement. Eamples are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is the high end-diversity they deliver: each customer receives a different machine or product. Often these companies strive for standardization to handle the diversity. However, the end result of good architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with highly improved performance of the business as a whole. These projects use different terminology: mass customization, configure to order, smart customization, product architecture, modular product buildup and modularity. This presentation will introduce these different terms. How others did this What they changed This presentation will introduce both the how these companies did this as well as eamples of what they changed and how much it delivered them. How much it delivered them Importance of high customer diversity

4 My promise in my abstract Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down to earth first actions, smart customization Your first actions Most businesses are about serving their customers well in an efficient manner. The key is in the combination of the different customer demands and design a combined product architecture and supplychain. This serves the different customer demands as well as the internal demands. In this presentation you will learn what product architecture is, why it is important to handle high customer diversity well and how it improves your supplychain performance. Most important lesson: design your product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your company s business performance. More and more companies are discovering this as a key element in their net step in improvement. Eamples are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is the high end-diversity they deliver: each customer receives a different machine or product. Often these companies strive for standardization to handle the diversity. However, the end result of good architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with highly improved performance of the business as a whole. These projects use different terminology: mass customization, configure to order, smart customization, product architecture, modular product buildup and modularity. This presentation will introduce these different terms. How others did this What they changed This presentation will introduce both the how these companies did this as well as eamples of what they changed and how much it delivered them. How much it delivered them Importance of high customer diversity

5 How much Our project results at your competitors 30% Profit increase 20% Toolcost reduction 30% development reduction same result 60% shorter time-to-market. Theory 1.Fast product development [Henderson and Clark 1990, Sanchez 1995] 2.Cost reduction in development & production [Loch, Terwiesch, & Thomke, 2001] 3.Easily create high product variety [Sanchez en Mohoney 1996, Schilling 2000, Pine 1993] 4.Increase specialisation opportunities [Langlois 2000, Fine 1998] 5.Product customization opportunities [Pine, 1993] 6.Improved outsouring opportunities [O'Grady, 1999] 7.Improved mass customization opportunities [O'Grady, 1999] Where do you want to improve?

6 My promise in my abstract Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down to earth first actions, smart customization Your first actions Most businesses are about serving their customers well in an efficient manner. The key is in the combination of the different customer demands and design a combined product architecture and supplychain. This serves the different customer demands as well as the internal demands. In this presentation you will learn what product architecture is, why it is important to handle high customer diversity well and how it improves your supplychain performance. Most important lesson: design your product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your company s business performance. More and more companies are discovering this as a key element in their net step in improvement. Eamples are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is the high end-diversity they deliver: each customer receives a different machine or product. Often these companies strive for standardization to handle the diversity. However, the end result of good architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with highly improved performance of the business as a whole. These projects use different terminology: mass customization, configure to order, smart customization, product architecture, modular product buildup and modularity. This presentation will introduce these different terms. How others did this What they changed This presentation will introduce both the how these companies did this as well as eamples of what they changed and how much it delivered them. How much it delivered them Importance of high customer diversity

7 Product & Supplychain architecture Investment -20% IFO +30% Innovation-to-market 3yr -> ½ - 2yr Mi-fle + Innovation-fle + Supplychain late CODP Additional customization centre Allocation Innovation to market Split standard versus diversity functionality

8 Machine development Investment per product -45% Floorspace per product -75% Innovation-fle ++ Volume-fle ++ Mi-fle + Modular buildup Market roadmap focus Quantitative function costs analysis Technical & business interaction The customer: The EK and SU were key-enablers to launch two mission critical projects in time Two years after start-up the EK platform has reached the variable cost levels of our most mature platform

9 My promise in my abstract Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down to earth first actions, smart customization Your first actions Most businesses are about serving their customers well in an efficient manner. The key is in the combination of the different customer demands and design a combined product architecture and supplychain. This serves the different customer demands as well as the internal demands. In this presentation you will learn what product architecture is, why it is important to handle high customer diversity well and how it improves your supplychain performance. Most important lesson: design your product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your company s business performance. More and more companies are discovering this as a key element in their net step in improvement. Eamples are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is the high end-diversity they deliver: each customer receives a different machine or product. Often these companies strive for standardization to handle the diversity. However, the end result of good architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with highly improved performance of the business as a whole. These projects use different terminology: mass customization, configure to order, smart customization, product architecture, modular product buildup and modularity. This presentation will introduce these different terms. How others did this What they changed This presentation will introduce both the how these companies did this as well as eamples of what they changed and how much it delivered them. How much it delivered them Importance of high customer diversity

10 How: Paradigm shifts Often encountered Good for business Decrease diversity in portfolio Increase diversity in portfolio Product standardization Supplychain standardization Engineer: function design Conflicting interests between departments Focus for whole supplychain: costs & deliverytime Integrated development through the chain Departments share same goal: Business Performance Split supplychain in separate parts for cost focus & delivery time focus

11 My promise in my abstract Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down to earth first actions, smart customization Your first actions Most businesses are about serving their customers well in an efficient manner. The key is in the combination of the different customer demands and design a combined product architecture and supplychain. This serves the different customer demands as well as the internal demands. In this presentation you will learn what product architecture is, why it is important to handle high customer diversity well and how it improves your supplychain performance. Most important lesson: design your product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your company s business performance. More and more companies are discovering this as a key element in their net step in improvement. Eamples are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is the high end-diversity they deliver: each customer receives a different machine or product. Often these companies strive for standardization to handle the diversity. However, the end result of good architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with highly improved performance of the business as a whole. These projects use different terminology: mass customization, configure to order, smart customization, product architecture, modular product buildup and modularity. This presentation will introduce these different terms. How others did this What they changed This presentation will introduce both the how these companies did this as well as eamples of what they changed and how much it delivered them. How much it delivered them Importance of high customer diversity

12 Question Do you always deliver the eact same product to each customer? Why yes / no?

13 Which one do you prefer of these? This one? Or one of these? Diversity will sell more! (provided it @availability etc.)

14 Question Do you want standardization in production processes processing order Supplier choice Used parts Why yes / no?

15 Supplychain standardization Supplychain standardization delivers efficiency! lowers costs, improves quality, reduces delivery time

16 Question Does engineering itself add costs or value? Why?

17 Engineering focus? Original: realise technical function Added: Engineer the chain? Marketing Purchasing After sales Service Logistics Manufactu Assembly Design Quality Distribution Traditionally engineering focuses on creating the technical function The rest of the chain however highly determines costs, quality & delivery time

18 Product architecture adds costs Product architecture: building blocks & interfaces Smart high payed professional Thinking: $$$ Drawing: $$$

19 Supplychain late CODP: low costs & short delivery time Demand SPEC SPEC Delivery Supplychain: Add diversity late codp codp Customer diversity => sales value Product: Split diversity features from the rest of your product High inventory (costs) or long delivery time FOCUS: Efficiency, costs FOCUS: fast delivery

20 Enabler CTO Process Approach Approach Configurator questions SMED product guiding SMED klokjes SMED breedte inst. motor-disconnect SMED hoogte inst. Spare kit Doorswitch Etra safety cover Running diversity CV breedte Blower (ehaust) energy saving By pass Closed cable gutter Etra nozzle adjustment key Stoom sectie labels NFPA labe ls (Frans, Enge ls), CE labels (if US co n tro ls: NFP Ataal (Fran s / Enge ls) AMEC loto Central drain Steam tunnel guarding Top-down blower kort& lang Safe tymap (ja, n e e)) US = stan dard Conveyor hoogte T0 STM23\ STM24\ STM35 Sectie aantal Nozzles (check test req.) GOALS: Quality Costs Delivery time Customer questions Split orders in ETO and CTO 1 Looprichting (LR / RL) 2 CV breedte (106 / 138) 3 controls (EU / US) 4 # nozzle adjustments 5 Spare kit (ja / nee) 6 Top-down blower (ja / nee) 7 Doorswitch (ja / nee) 8 Motor disconnect (ja / nee) 9 Materiaal motor disconnect (plastic / stainless) 10 Soort uitwerpbak (rotary / bin) 11 Energy Saving Mode (ja / nee) 12 SMED (ja / nee) 13 # producten 14 Kleur SMED dopjes 18 Type goot (open / closed) 19 Safety cover (ja / nee) 20 # etra nozzle adjustment keys 21 Stoom sectie stickers (ja / nee) 22 AMEC (ja, nee) 23 Central drain (ja, nee) 24 Steam tunnel guarding (ja, nee) 25 Safety map (ja, nee) 26 Top-down blower (geen, kort, lang) - komt uit testrapport 27 Conveyor hoogte ( ) 28 Production Speed/Conveyor Speed BOM modules?? Interaction matri No more engineering involved in CTO orders 15 Bypass (ja / nee) 16 # producten bypass 17 Kleur SMED bypass dopjes Orders directly from sales configurator to ERP Safety map (IF co n tro ls=eu then Orders to Suppliers and assembly Identify customer diversity Restructuring BOM Process redesign CTO Monitor

21 Enabler CTO Process Approach Approach Wind direction approach Configurator questions SMED product guiding SMED klokjes SMED breedte inst. motor-disconnect SMED hoogte inst. Spare kit Doorswitch Etra safety cover Running diversity CV breedte Blower (ehaust) energy saving By pass Closed cable gutter Etra nozzle adjustment key Stoom sectie labels NFPA labe ls (Frans, Enge ls), CE labels (if US co n tro ls: NFP Ataal (Fran s / Enge ls) AMEC loto Central drain Steam tunnel guarding Top-down blower kort& lang Safe tymap (ja, n e e)) US = stan dard Conveyor hoogte T0 STM23\ STM24\ STM35 Sectie aantal Nozzles (check test req.) GOALS: Quality Costs Delivery time Customer questions Split orders in ETO and CTO 1 Looprichting (LR / RL) 2 CV breedte (106 / 138) 3 controls (EU / US) 4 # nozzle adjustments 5 Spare kit (ja / nee) 6 Top-down blower (ja / nee) 7 Doorswitch (ja / nee) 8 Motor disconnect (ja / nee) 9 Materiaal motor disconnect (plastic / stainless) 10 Soort uitwerpbak (rotary / bin) 11 Energy Saving Mode (ja / nee) 12 SMED (ja / nee) 13 # producten 14 Kleur SMED dopjes 18 Type goot (open / closed) 19 Safety cover (ja / nee) 20 # etra nozzle adjustment keys 21 Stoom sectie stickers (ja / nee) 22 AMEC (ja, nee) 23 Central drain (ja, nee) 24 Steam tunnel guarding (ja, nee) 25 Safety map (ja, nee) 26 Top-down blower (geen, kort, lang) - komt uit testrapport 27 Conveyor hoogte ( ) 28 Production Speed/Conveyor Speed BOM modules?? Interaction matri No more engineering involved in CTO orders 15 Bypass (ja / nee) 16 # producten bypass 17 Kleur SMED bypass dopjes Orders directly from sales configurator to ERP Safety map (IF co n tro ls=eu then Orders to Suppliers and assembly Identify customer diversity Restructuring BOM Process redesign CTO Monitor

22 My promise in my abstract Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down to earth first actions, smart customization Your first actions Most businesses are about serving their customers well in an efficient manner. The key is in the combination of the different customer demands and design a combined product architecture and supplychain. This serves the different customer demands as well as the internal demands. In this presentation you will learn what product architecture is, why it is important to handle high customer diversity well and how it improves your supplychain performance. Most important lesson: design your product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your company s business performance. More and more companies are discovering this as a key element in their net step in improvement. Eamples are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is the high end-diversity they deliver: each customer receives a different machine or product. Often these companies strive for standardization to handle the diversity. However, the end result of good architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with highly improved performance of the business as a whole. These projects use different terminology: mass customization, configure to order, smart customization, product architecture, modular product buildup and modularity. This presentation will introduce these different terms. How others did this What they changed This presentation will introduce both the how these companies did this as well as eamples of what they changed and how much it delivered them. How much it delivered them Importance of high customer diversity

23 Change does not happen overnight today I often came home with lots of ideas and inspiration after a seminar like today

24 Change does not happen overnight today tomorrow Back at the office the daily hassle waited for me

25 It s time for you to make the first step in change What is your first action? Put in your agenda, no matter how small, but make the first step And. In the agenda for the time-slot, the last point is what is my net step?

26 Product Architecture SupplyChain Design Improved Business Performance