extreme design reengeneering deployment
TRANSCRIPT
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Dallas, TXJanuary 11, 2005
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Pro-Ex Program Transformation Map
Lean SigmaEnterprise
OrganizationalIntegration &Supply Chain
Optimization
VisionSupplier Management Infrastructure Internal Network Sourcing Benchmarking & Selection Commodity Management Traditional Cost Reductions
Supplier RationalizationEnabling System Solutions
Supplier Certification
System Wide Bottom-lineimpact
World ClassResults
Self managed teams
Preparing the Culture
Cross Training Reward & Recognition Incentives
Data Driven
Decision Making
SCOR Model Adoption
Year 1Year 1
Year 2Year 2
Year 3Year 3
Year 4Year 4
ProductDevelopment
& Innovation Excellence
Program Infrastructure Steering Teams Roles & Responsibilities Communication Plan Tracking Financial Verification
Skills Development Leadership Training
Management Training Lean Black Belt Training Greenbelt Training Kaizen Training Personnel Training
Focus Factory Projects Product Rationalization Develop Lean Model Areas
Variation Reduction Key Enabling Variation / Cost
reduction Projects
Value Stream Redesign
Site Certification
Results Acceleration Kaizen Events
Directed Effort: Policy Deployment
Foundational Changes 5S Standard Work Change Over Reduction TPM
Small Parts ConsumptionBased Replenishment
Division Certification
Self Sufficiency MBB
Business ProcessKaizen
Pull System Adoption Internal Supplier
S/C Business ProcessSimplification
Kaizen as a way of life
Model Facilities
Streamlined Business Ops
Pull System Penetration 60%+
Cultural
Change
Product Development
Rationalization
Cross FunctionalTeams
Integrated ProductDevelopment Teams(IPDT)
Skills Development:
DFSS Training Innovation
Product Development Steering Team
Product Development InfrastructureStandard Measurements
Definitions & MethodsKnowledge Capture
Streamline Designprocess:
Waste analysis Stage gates
Six SigmaOrganization
Enabling Systems
Integration
Business ProcessImprovements
SCOR Card MeasurementStandardization
Supplier Joint Cost Red.
Integrated SupplyChain
Supply Chain Definition
Supplier Quality & Delivery
ImprovementsLogistics Optimization
Set Based ConcurrentEngineering
Long Term Process That Builds Upon Itself as Capability Increases
DCOR / CCOR Model Adoption
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Summary of Discipline Benefits
Optimization of ProductPerformance
DFSS
6
Strategic Alignment &Opportunity Identification
Effective Use of CrossFunctional Teams
Metrics, Benchmarks, andBest Practices
Culture Change
Create a CompetitiveAdvantage Through ValueChain Improvement
Eliminate Defects and
Variability
Eliminating Waste andImprove Workflow
Pro-ExLeanBPM
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Advantages & Benefits of Integration
EffectiveGuidance
Alignment
Strategic
FasterResults
BiggerResults
ProfitImprovement
RationalProject
Selection
RightProblems
SelfSustaining
Benefits
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What are BPM Frameworks?
BPM Framework a cross-industry reference model that defines andstandardizes the process definitions, metrics and best practicesrelated to a specific value chain for the purpose of value chain
reengineering
Supply Chain Operations Reference (SCOR)
Developed and endorsed by the Supply-Chain Council, a non-profit
consortium of 800+ member companies since 1996 Continually under development currently Release 6.1
Design Chain Operations Reference (DCOR)
Preliminary version of DCOR developed by Hewlett-Packard (HP) for
internal use; IP released to the Supply-Chain Council for development
Customer Chain Operations Reference (CCOR) Preliminary version of CCOR developed by Hewlett-Packard (HP) for
internal use; IP released to the Supply-Chain Council for development
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How do BPM Frameworkscompliment Lean and Six Sigma?
Standardized Value Chain Definition Supply Chain = SCOR, Demand Chain = DCOR, Customer Chain = CCOR
Process definition, metrics, benchmarking and best practices
Project Selection Methodology Alignment of project execution with Customer, Strategic and Operational needs Project selection based on data, not brainstorming Understanding of the interrelationships between projects Creation of prioritized and time-phased Project Portfolios for all Value Chains Focus of efforts and resources on the highest ROI opportunities across all Value
Chain areas
Linkage to Enabling Information Systems Prioritization of IT Optimization Consistent with Process Optimization
Alignment of technology projects with process improvement activities
Comprehensive Financial Alignment Project expectations tied to P&L and Balance Sheet impact Development of discrete project contracts for every project opportunity
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Desired Characteristics ofBPM Framework Deployment
Structured Methodology
need the deployment methodology formally defined and structured so
that it is repeatable and leverages the best available analytical tools
Training Based
need to be able to teach the deployment methodology to our clients sothey can do it themselves
Applied Approach
need to successfully apply the deployment methodology to a value
chain reengineering project concurrent with the training
Results Focused
need to select value chains with significant impact to the business andprioritize the improvement opportunities with the greatest benefit
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SCOR Level 3 Process Element
Process Element: Receive Product at Warehouse Process Element Number: D1.8
Process Element Definition
The activities such as receiving product, verifying, recording product receipt, determining put-away location, puttingaway and recording location that a company performs at its own warehouses. May include quality inspection.
Performance Attributes Metric
Reliability Incoming Material Quality
Responsiveness Dock To Stock Cycle Time
Flexibility Upside Delivery FlexibilityDownside Delivery Flexibility
Cost Distribution CostsIncoming Material Costs
Product Acquisition Costs
Assets Finished Goods Inventory Days of SupplyInventory Obsolescence as a % of Total InventoryEnd-of-Life Inventory
Best Practices Features
Automatic Identification Bar Coding & Radio Frequency Communications
Download P.O. & Advanced Ship Notices forAutomated Receiving and Put away
Integration with Procurement Systems & Electronic Commercewith Vendors
Dynamic location assignment including lotcontrol, zoned put away, quality assurance,
ABC frequency of access
Real time inventory control, stock locator, and rules based putaway logic
SCOR Provides Process Definition, Metrics, and Best Practicesat the Process Element Level
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/
(Baseline, Benchmark, Analyze,
Identify & Validate)
SCOR Integration with the .
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/6
)7)7 Projects focused on minimizing Waste, Variability and Defects
across the Supply Chain value stream
Projects focused on maximizing Transactional Efficiency,
Timeliness and Yield to optimize information flow across the SupplyChain value stream
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SCOR PortfolioImplementation Plan
StandardizedProcess Definition
Metrics andBenchmarking
Lean / Six Sigma
Analytics
Industry BestPractices
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SCOR Training and DeploymentAccelerating Business Improvement Using SCOR
On-site & Remote Support On-site & Remote Support On-site & Remote Support
Train
Apply
Review Train
Apply
Review Train
Apply
5 days
3 weeks
1 day 4 days
3-5 weeks
1 day 4 days
3-5 weeks
Session 1 - Deliverables Session 2 - Deliverables Session 3 - Deliverables
Thought Process Map (TMAP) Competitive Positioning
KanoAnalysis
Industry Comparison Supply Chain Profile Supply Chain Definition Matrix
SCOR Charter Level 1 Metrics Definition / NEM PMG Benchmark Survey
SCORcards Requirements Gap Analysis
SCORcard & Gap Analysis Review
Thought Process Map (TMAP) Geographic Map
Value Stream Map (Material Flow)
As-Is Material Flow Map Level 2 Metrics Definition / NEM Material Flow Performance Summaries
Material Flow Disconnect AnalysisBrainstorming SummaryCause/Effect Analysis
Failure Modes & Effects Analysis To-Be Material Flow Map
Disconnect Opportunity Assessment Quick Hit Project Charters Status Review
Thought Process Map (TMAP) Transactional Analysis
Value Stream Map (Work & Info Flow)
As-Is Work & Info Flow Map As-Is Productivity Summary As-Is Swim Diagrams
Level 3 Metrics Definition / NEM Level 3 Baseline Blueprint To-Be Work & Info Flow Map
To-Be Productivity Summaries Project Portfolio & ROI Analysis
Effort / Impact Assessment Portfolio Prioritization Deployment / Resource Plan
Certification Review
SCORDeployment Teams
Plan
2 days
SCOR Deployment Team Training
Planning &Organizing
Supply ChainPerformance Baseline
Supply ChainMaterial Flow Analysis
Supply ChainWork & Information Flow
Analysis
Review Planning
1 day 4 days
ImplementationPlanning(Optional)
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DFSS Tools
DFSS Builds on Six Sigma and Design Tools
The focus remains on customer and business needs
Mastering Six Sigma tools supports DFSS results
ScorecardP-Diagram
VOC & Kano AnalysisPughs Concept Selection
TRIZ / Axiomatic DesignModeling & Sensitivity Analysis
Optimization & RobustnessTolerance Designetc, etc,..
Six Sigma tools
Design for Six Sigma tools
TMAPSIPOCPMAPFMEAMSEDOE
NEMControl Plan
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IDOV Identify, Design, Optimize, Validate (or Verify)
IDDOV Identify, Define, Develop, Optimize, Validate
DIDOV Define, Identify, Design, Optimize, Validate
DIDOVM Define, Identify, Design, Optimize, Verify, Monitor
DMADOV Define, Measure, Analyze, Design, Optimize, Verify
DMADV Define, Measure, Analyse, Design, Verify
DMEDI Define, Measure, Explore, Design, Implement
Many methodologies have been proposed. Most of each can bemapped to the same basic tasks or phases: from ideas/needs
gathering, through design selection and optimization, to
implementation.
DFSS Methodologies
Example: DFSS Process for
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Key
Deliverables
DEVELOPCONCEPT
OPTIMIZEDESIGN
VERIFY &VALIDATE
Develop Product/Serviceconceptualdesign
Predict designsSigma Capability
OptimizeProduct/ Servicedetailed designand productionprocesses
Perform pilottesting
Developimplementationand controlplans
Validatedconceptualdesign
High-level
productionprocess design
Product/serviceproductionversion design
Production
process design
Validatedproduct/ service
Implementedcontrol plans
Productionreadiness
Identifycustomer needsand defineCriticalCustomerrequirements
Customer reqs. CTSs Competitors
Comparison
INITIATE PROJECT
Define budgetand plan thedevelopmentproject
Focus
StrategicPriorities
ProjectSelection
LeadershipDevelopment
Project Charter Budget Team Identified Leadership
Committed
Example: DFSS Process forDesign & Development Projects
DEFINEREQUIREMENTS
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DFSS Roadmap - Product Development
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DCOR I i i h h
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)"(Baseline, Benchmark, Analyze,
Identify & Validate)
DCOR Integration with the .
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Projects focused on minimizing Product Design and DevelopmentRisk, Uncertainty, and Variation
5.56. Projects focused on minimizing Waste, Variability and Defects in
the Product Development process
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Timeliness and Yield to optimize information flow in the ProductDevelopment process
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DCOR PortfolioImplementation Plan
StandardizedProcess Definition
Metrics andBenchmarking
Lean / Six SigmaAnalytics
Industry BestPractices
DCOR L l f D t il
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DCOR Levels of Detail
The Design Chain OperationsReference Model (DCOR)provides standards to assessyour Design Chain processesagainst other Design Chainprocesses
Reference Document provides Standard Process Elements
Standard Metrics Best Practices
World Class Benchmarks
# Description Schematic
Levels
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Amend
I1IntegrateProductRefresh
I2IntegrateNewProduct
I3IntegrateNewTechnology
Integrate
D1 DesignProductRefresh
D2DesignNewProduct
D3DesignNewTechnology
Design
R1 ResearchProductRefresh
R2ResearchNewProduct
R3ResearchNewTechnology
Research
PPPlanDesign Chain
Plan
P R P la n R es ea rc h P DP la nD es ig n P I P la n In te gr at e P A P la n A me nd
A1 AmendProductFall-Out
A2AmendDeficientProduct
A3 AmendProductSpecs
I1 IntegrateProduct Refresh
I2 Integrate
NewProduct
I3 IntegrateNew Technology
Integrate
Top Level Design
Chain ProcessFlow
Configuration LevelWork Flow
Process for Selected
Design Chain
Process ElementLevel
Decompose SpecificProcesses
ImplementationLevel
Process ImprovementProject Execution
1
2
3
4
DCO
R
Model
Project
Execution
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DCOR Phases
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DCOR Phases
Process Maps
Root Cause Assessments
Baseline Performance Metrics
Design Chain Strengths &Weaknesses
Product Scorecard & SigmaLevel
Initial Project Listing of Work
Flow, Design Quality & ProductValue Opportunities forImprovement
Process Mapping Tools: Value StreamMaps, Detailed Process Maps,
Geographic Maps, Swimlane Diagrams,Product/Process Matrix
Root Cause Analysis Tools: Cause &Effect Diagrams, FMEA
Data Gathering & Analysis Tools: NEM,Surveys, Product Scorecard, ProcessCapability
Best Practices
Conduct the DCOR Work Flow &Product Value Analysis
Construct As-Is and To-Be WorkFlows for the selected Design Chainusing the DCOR model
Identify actionable improvementopportunities to improve DesignChain Work Flow and Value StreamPerformance
Phase 2:
Work Flow &ProductValue
Analysis
Prioritized Project Portfolio
High Level ProgramImplementation Plan
Recommendation of projects to
Steering Team for immediateexecution
Financial Analysis
Effort/Impact Analysis
Project Charters
Effectively plan, resource andexecute the projects identified in theDCOR Deployment.
Prioritize projects based on selection
criteria and effort/impact analysis
Phase 3:
ProjectExecution &
Planning
High Level Gap Analysis ofCurrent vs. Required CompetitivePerformance (DCORcard)
Gross Level Financial Impact ofOpportunities Estimated
Level 1 DCORcard Metrics Benchmark Data Sources
Market & Competitive RequirementsAssessment
Build a performance baseline for theselected Design Chain/s
Produce a DCORcard of identifyinggaps between current and requiredperformance levels
Phase 1:Performance
Baseline
Defined Design Chains
Selected Design Chain/s forInitial Deployment
Diagnostic Team to ExecutePhases 1-3
Design Chain Definition Matrix
Design Chain Profiling
Deployment Decision matrix
Diagnostic Team Selection Matrix
Develop an understanding of yourmarkets, product lines and resultingDesign Chain/s.
Assign Deployment teams to assessselected Design Chain/s.
Phase 0:
Planning &Organizing
DeliverablesToolsObjectivePhase
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Copyright2005-AdvancedIntegratedTechnologiesGroup,
Inc.,
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Experts in Design Chain Processes
Phase 0 Objectives
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Phase 0 Objectives
Objectives Interview key Design Chain stakeholders
Introduce the attendees to the DCORModel and the DCOR Deployment process
Define the unique Design Chains
Define the Strategic, Competitive andMarket requirements of the Design Chain
Profile the business context of each DesignChain and select Design Chain/s of focus
Deliverables Appropriate Memberships
Benchmark Sources Business Information Sources
Business Context Summary
Design Chain Definition Matrix
Design Chain Profile(s)
Deployment Decision Matrix DCOR Deployment Charter
The objective of Phase 0 is to plan and organize prior to deployment ofDCOR. Activities are focused on developing an understanding of how youdefine your markets, product lines and resulting Design Chain/s thatexists within your business. You will also begin to develop the DCOR
deployment teams to address these opportunities.
Phase 1 Deployment Objectives
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Deliverables
DCORcard PerformanceBaseline
Industry Benchmark
Performance Competitive Requirements
Established
High Level Gap Analysis ofCurrent vs. Required
Competitive Performance Gross Level Financial Impact
of Opportunities Estimated
Phase 1 Deployment Objectives
The objective of Phase 1 is to train the Diagnostic Team to build a DCORperformance baseline for the selected Design Chain/s. A DCORcard will beproduced identifying gaps between current performance and requiredperformance levels.
Objectives
Define DCORcard Metrics
Collect Current PerformanceData
Collect Industry BenchmarkPerformance Data
Determine CompetitiveRequirements for selected
Design Chain Conduct Gap Anlaysis of Final
DCORcard and SummarizeOpportunities
Phase 2 Deployment Objectives
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Phase 2 Deployment Objectives
Objectives Gain current process understanding
Value Stream Maps
DCOR Process Maps Swimlane Diagrams
Product/Process Matrix
Product Scorecard
Conduct root cause analysis
Cause & Effect Diagrams
Failure Modes & Effects Analysis Gather and analyze data
Benchmarking
Surveys / Interviews
Process Capability
Identify & document opportunities
Quick Hits Major Work Flow Disconnects
Deliverables Design Chain Process Maps
Root Cause Assessments
Data Analysis Quantifying MajorOpportunities
Sigma Level
Design Chain Strengths & Weaknesses
Identification of Best Practices
Initial Project Listing of Work Flow,Design Quality & Product ValueOpportunities for Improvement
The objective of Phase 2 is to conduct the DCOR Work Flow & ProductValue analysis using the Level 2 & 3 architecture of the DCOR model.Driven by the need to close the performance improvement gaps in theDCORcard, As-Is and To-Be Work Flows are constructed for theselected Design Chain and then the actionable improvement opportunitiesare identified using the tools and best practices outlined in DCOR.
Phase 3 Deployment Objectives &
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Objectives
Complete Consolidated OpportunityAnalysis
Assemble Final Project Portfoliowith Effort Impact Summary
Establish Recommended scopeand sequence of project portfolio
Select the appropriateimplementation methodology
Construct preliminary ProjectCharters
Deliverables
Final Opportunity Analysis Final Project Portfolio
High Level Program ImplementationPlan (showing scope andsequence)
Preliminary Project Portfolios(utilizing appropriate methodology)
Executed Projects
Deliverables
The objective of Phase 3 is to effectively plan, resource and execute theprojects identified in the DCOR Deployment and summarized in the DCORProject Portfolio. Each identified project is outlined in a Project Charter,prioritized based on project selection criteria, and time-phased to allow
the Design Chain Diagnostic Team to recommend the appropriateprojects, resources and timing to the Steering Team for implementation.
DCOR Deployment Expectations
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DCOR Deployment Expectations
DCOR Model
The model will be modified and improved as it gains acceptance as an
open-source cross-industry standard
Metrics & Competitive Benchmarking
Over 300 product development metrics are built into the model
Limited benchmark sources will expand as the model gains acceptance
Deployment Capability
HP and AIT Group are moving forward to refine and structure thedeployment methodology and build the training curriculum
Modeled after Six Sigma deployment Train-Apply-Review
We intend to implement DCOR with early adopters using the HP versionof DCOR while working with the community to develop DCOR as a openstandard, improve benchmark sources, etc.
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Contact Information
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Contact Information
Rod Recker Office: (530) 587-1575
Executive Director Cell: (530) 277-3154Advanced Integrated Technologies Email: [email protected], Inc.