agile & demantra preso 3.feb

Tips For Accelerating Product Innovation and Maximizing Product Profitability

Oracle Direct Selling SummitFebruary 10, 2010

Brian Hicks Director, Forecast & PLM

USANA Health Sciences, Inc.


Agenda• Agile Update – Latest measures of success for Product Collaboration,

Product Quality Management, and Product Portfolio Management• Agile Direction – Product Governance & Compliance, Recipe &

Material Workspace• Demantra Update – Latest measures of success and learning

Enterprise

Value Chain

SuppliersSuppliers

Artwork HousesArtwork Houses

Outsourced Partners

Outsourced Partners

CustomersCustomers Regulatory Bodies

Regulatory Bodies

Testing FacilitiesTesting

Facilities

Excel

LIMS

MESERP SCMERP

Quark Adobe

MarketingMarketing

Sourcing ManagerSourcing Manager

QualityQualityProduct

DevelopersProduct

Developers

AnalystAnalyst

EngineersEngineers

Specs

Test Data

Logos Ideas

Site Recipe MES

ERP

Costs

LIMS

Complaints

FormulationFIN

Compliance DocumentsHCM

Concept Briefs

CRM

HACCPSample

Project Manager

Project

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PNS

Oracle ERP

Product Approval ProcessAccounting, Planning, Purchasing, Project

Management, Finance, Shipping, Forecast

Odyssey OM

Regulatory Requirements

Network Drive

Network Drive

Regulatory ReviewMarket RequirementsMarket Restrictions

Creative ServicePublications

Lables/Packaging

Sales Tools

Online Services

Creative Services

Product ChangeNPI

RevisionsFormula Change

RequestorJira


The Product Development Processes

Quality Events & Actions Deviations

CAPA’sAudits

Document ControlProduct Specs

Manufacturing SpecsBatch Production Records

SOP’s

The Red Folder

The Quality Processes

Regulatory Process

R&D DEVELOPMENT PROCESS

ELC Process

MARKETING COPY PROCESS

The Bottom Line

• Departmental Disconnect

• Lack of One Record

• Processes are not integrated

• Stacks of Paper = Unfriendly User Interface

Agile Product Lifecycle

Management

A central repository for all information, processes, and decisions related to a given

product lifecycle. Including parts, documents,

changes, and quality actions

Agile PPM - Implemented•Portfolio Management•Program/Project

Management•Project Costing•Resource Management•Issues and Action items•Deliverables Authorization

and Tracking

Agile PC – Implemented•Product Master•AML/ASL•Formula Management•Change Control

Agile RMW – Desired• Formulations• Recipes• Materials/Resources• Batch Production Records• Integrated to Product Master

Agile PG&C – Budgeted•Manage market regulations•Maintain ingredient

specification•Integrated to product master•Product compliance tracking

Agile PQM – Implemented•Manage Deviations, OOS,

NCM’s processes•Manage CAPA’s, root cause

analysis•Document management and

control plans•Integrated to product master



• The number of product changes increase by 94.1% from 2008 to 2010 while the average completion time of the changes decreased by 31.7%

• During the same time period the number of Change Analyst’s responsible for managing the product changes decrease by one FTE.


• Agile Product Collaboration has enabled USANA to improve productivity by completing more product changes in less time with less resources.


• Pre - Agile, USANA averaged over 100 Deviations per month; current average ≈ 37 per month over last three months; a decrease of 63.0%

• The average time to complete a Quality Event has decreased from over 35 days to < 14 days; a decrease of 60.0%


• Agile Product Quality Management has enabled USANA to improve productivity by eliminating duplicate deviations and fix problems as soon as they emerge.


• Agile Product Portfolio Management has not been used as designed.

• USANA’s fascination with email, spreadsheets has manual processes has slowed our adoption to electronic tools in some areas of the company.

• Currently we are in the process of simplifying setup and configuration of PPM


Agenda• Agile Update – Latest measures

of success for Product Collaboration, Product Quality Management, and Product Portfolio Management

• Agile Direction – Product Governance & Compliance, Recipe & Material Workspace

• Demantra Update – Latest measures of success and learning

http://1.bp.blogspot.com/_jfTrEA3qYqE/TT9RPSKgI0I/AAAAAAAAD1Q/77eQaW3TPRY/s1600/Knapp_Blender.jpg

Agile Product Lifecycle

Management

A central repository for all information, processes, and decisions related to a given

product lifecycle. Including parts, documents,

changes, and quality actions

Agile PPM - Implemented•Portfolio Management•Program/Project

Management•Project Costing•Resource Management•Issues and Action items•Deliverables Authorization

and Tracking

Agile PC – Implemented•Product Master•AML/ASL•Formula Management•Change Control

Agile RMW – Desired• Formulations• Recipes• Materials/Resources• Batch Production Records• Integrated to Product Master

Agile PG&C – Budgeted•Manage market regulations•Maintain ingredient

specification•Integrated to product master•Product compliance tracking

Agile PQM – Implemented•Manage Deviations, OOS,

NCM’s processes•Manage CAPA’s, root cause

analysis•Document management and

control plans•Integrated to product master



Compliance/Regulatory

Business Requirements• Provide a single source database that links raw materials/ingredients to

market regulations and products currently set up in Agile and future development products

• Reduce frequency of inquiries to consultants and lower overall cost• Eliminate “bottleneck” for regulatory reviews for “Where can this be used?”• Allow immediate feedback for R&D in the formula development process• Reduce overall time to market

Proposed SolutionAgile Product Governance & Compliance


Agile Product Governance & Compliance

Projected Critical Success Factors/ROI’s• Reduce review time between R&D and

Regulatory • Reduction in costs associated with market

consultants• Eliminate duplicate work for materials and

ingredients that show up in multiple markets and in multiple products

Overall Increase time to market and reduce risks

associated with regulatory restrictions


R&D/Quality

Business Requirements• Provide version control of all R&D formulations during the development

phase of the product - Inferred TGA requirement• Integrate formulation with current Agile products and improve Regulatory

review process• Provide version control of all R&D recipes during the development phase • Provide the ability to scale batches (Preliminary Prototype

PilotProduction )Proposed Solution

Agile Recipe & Material Workspace


Agile Recipe & Material Workspace

Projected Critical Success Factors/ROI’s• Comply with TGA regulations• Improve process time and accuracy

through increased visibility and accountability

• Automate recipe approval from the development phase through the production phase of the product lifecycle

• Replaces out-dated excel processes and LIMS

Overall Increase time to market and reduce risks

associated with product formulations


Agenda• Agile Update – Latest measures

of success for Product Collaboration, Product Quality Management, and Product Portfolio Management

• Agile Direction – Product Governance & Compliance, Recipe & Material Workspace

• Demantra Update – Latest measures of success and learning

http://1.bp.blogspot.com/_jfTrEA3qYqE/TT9RPSKgI0I/AAAAAAAAD1Q/77eQaW3TPRY/s1600/Knapp_Blender.jpg

The Industrial Age

Individual Market Forecast Spreadsheets – Size 8MB -18MB

WW Unit and Revenue Summary by Product – Size 23MB

Individual Market Plans

WW Quarter Revenue Summary by Market – Size 5MB

What is my forecast and how can I see it?

Forecast Accuracy?



Demantra

• “Bottom-up” Forecast < one week

• Time to analyze promotional activities

• Minimized obsolescence costs

• Increase forecast visibility

• Facilitate trust

• Communication, Collaboration, Cooperation

• Statistical Forecast < 10% Aggregate MAPE

• Adjusted Market Forecast with qualitative adjustments < 7% Aggregate MAPE


Demantra• Original Data Model was customized for USANA’s environment• Enhancements that come with latest releases of Demantra use the standard

Data Model• Over the next couple of months we will re-implement Demantra using the out

of the box Data Model


Demantra Demand Management

Projected Critical Success Factors/ROI’s• Ability to use enhanced NPI forecasting• Increase the number of indicators to be used in regression models• Import financial models to closer align with financial reporting and

budgeting• Integrate with Oracle EBS Advance Supply Chain Planning to include

supply, demand and inventory • Integrate with Hyperion

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agile & demantra preso 3.feb

Documents

product profitabilitytips

product master tips

product profitability3

number of product changes

given product lifecycle

quality event

average time

control plansintegrated