1. 1Mantra for Process ExcellenceSathish Nataraj SundararajanManagerDaimler India Commercial Vehicles Pvt Ltd

2. 2Mantra for Process ExcellenceProcess Excellence for New Age Project ManagementAuthor: Sathish Nataraj SCo-Author 1: Prabal Ralhan Co-Author 2: Chandramohan SDaimler India Commercial Vehicles Daimler India Commercial Vehicles Daimler India Commercial Vehiclessathish.nataraj@daimler.com prabal.ralhan@daimler.com chandramohan.s@daimler.comMob: +91 98943 20144 Mob: +91 96000 65673 Mob: +91 87544 85639 3. 3Table of ContentsPage1. Titleand Abstract32. Project Management practices in Corporate World33. Project Management Objectives...44. Advanced Product Quality Planning.44.1 Plan and Define54.2 Product Design and Development.54.3 Process Design and Development54.4 Product and Process Validation.54.5 Feedback, Assessment and Corrective Action55. Process Customization...56. Target Cost Matching.67. Target Cost Approach Curve.68. Point of No Return..79. ABC Analysis...810. Characteristic Management...811. Lessons Learnt912. Conclusion10 4. 41. Title: Process Excellence for New Age Project ManagementTheme: Mantra for Process ExcellenceKeywords: ABC Planning, APQP, Target Cost, PONRAbstractProject Management is a systematic approach of tools and processes for successfully implementing theorganizations goals and objectives. It adopts continuous breakthrough improvement and preventivecontrolling. Process Brilliance approach looks an organization holistically with all stakeholders controllingthe execution of the project. Traditional processes of running the business takes a higher lead time.Compliant Process Customization provides a better reduction in time without compromising the qualityand efficiency. This paper demonstrates the improved processes that realize the management motiveswith reduced lead time. Processes defined include Target Cost Approach Curve, Target Cost Settingthrough Cost Matching, ABC Planning, Point of No Return and Characteristic management. Theseprocesses have shown reckonable improvements in the organizational evolution.2. Project Management practices in Corporate WorldProject management emphases on specific results (deliverables), time and (schedule), means (money,people, etc.), a series of techniques and procedures that has evolved to aid people efficientlymanagethese accomplishments.Recently, New Project Management techniques (e.g., for creating cross-functionalprogrammes,managing common resources, and line-up project portfolios), the widespread use ofcomputers and the growing sophistication and availability of project management software tools have allaugmented the effectiveness of a procedure for addressing a variety of project problems.Influential competitive pressures tomanage and reduce product life cycle time are increasing, as is theglobalization of many markets and theappreciation of projects as a crucial link between the strategicareas of the organization and the pre-emptive workbeing performed by distinct functions. Accordingly,industries as mixed as automobile manufacturing, computer manufacturing,pharmaceuticals,consultingservices, photography and natural resource management have belligerentlyimplemented projectmanagement. These industries, and a countless of others, are using projectmanagement as a method tocreate the future, by better considering both customer requirements andsolutions to meet them 5. 53. Project Management Objectives3.1 Ensure Projects are completed within Budget and Scheduled Plan3.2 Provide Quality Solutions vis--vis, Minimum Errors, Effectiveness and New Ideas.3.3 Continuous Process Improvement via Collaboration3.4 Govern individual time and stress pressure.4. Advanced Product Quality PlanningProduct Quality Planning is an organized method of defining and creating the steps necessary to ensurethat a product gratifies the customer. APQP (Advanced Product Quality Planning) involves 75% up frontplanning and 25% execution through implementation, to determine customer satisfaction and continuousimprovement. Though, APQP is generally associated with the automotive industry, the quality planningprocesses in APQP can be appropriate within all trades. APQP enables communication between thevendor and the patron to clarify requirements that decipher into more detailed requirements.Five Sections of APQP:Plan andDefineProductDes ign &DevelopmentProces sDes ign &DevelopmentFeedback &CorrectiveAction ProjectProduct &Proces sVal idationManagementFigure 4.1, Cyclic Process of Planning 6. 64.1 Plan and DefineMost crucial phase of the project is the Planning phase. It involves establishing the objectives andprocesses mandatory to deliver results in harmony with the expected output. By Defining outputexpectations, the fullness and accuracy of the specification is also a portion of the pursuedimprovement.4.2 Product Design and DevelopmentProject outcomes are achieved through a good product. Designing a product that suits endcustomers expectation of usage, budget and appearance (all factors), it is comfortable for a project tobe successful without much sting.4.3 Process Design and DevelopmentA well outlined process for making the designed product is what we actually materialize in project.Designing the process requires immense Engineering knowledge of manufacturing, machining andaided operations to achieve the quality, cost and time targets.4.4 Product and Process ValidationProduct and Process that were designed and developed have to be validated to ensure robustnessand longstanding sustainability. This can be achieved by treating all failure mechanisms. FailureMode Effect Analysis tool helps in identifying the risks involved4.5 Feedback, Assessment and Corrective ActionIt is necessary in a project in taking expert feedback at various levels of planning and implementation.These assessments make sure that the project is on the right path for implementation. Correctiveactions after facing issues help in preventing the same bugs repeating again in future.5 Process CustomizationCompanies have their own processes and systems to carry out its business activities. Many suchprocesses are not easy to execute and time consuming. Processes can be customized according to theneed of the internal customer. For example, in our company, we cannot transfer parts from Assemblyplant to R&D plant, as parts moved will be excisable. Instead of transferring parts for our build, processwas customized in such a way that, the sub-assemblies are moved from Assembly plant with approvalfrom all stakeholders. 7. It can be achieved by making the sub-assemblies with child parts. Excise duty can be paid to that sub-assemblypart. Advantage of this customized process is that, it saves 40% in transferring time for inter -plant movement. Complexity involved is less as the sub-assemblies are easily captured in Bill of Material.Cost calculation for excise value is simple as all are contracted parts.7Process Excellence for Project Management6 Target Cost MatchingTarget Cost for the project is achieved in the beginning stage of the project. In Automotive Industry,Target Cost is set for the whole vehicle. From that, it flows down to system level and then to part level.This is called Top-Down Target Cost. It gives a rough picture of the Expected Actuals of the spending.Further process is Bottom-up Costing, wherein Cost of individual parts are calculated and populated toknow the system level cost and then the whole vehicle cost.Figure 6.1, Target Cost MatchingThis kind of approach clearly shows where the mismatch in cost is. It is easier to know which system hasthe inappropriate cost and known as Target Cost Matching. In industry, it involves the cross -functionalmembers interaction from Finance, Cost Planning, Project and Procurement teams. These works can beexecuted in form of a workshop. Based on the output of this workshop, the funding of the project can beoptimized.7 Target Cost Approach CurveFor any new project in an organization, the target cost approach curve tool provides an easy method tokeep track on the target cost of the complete project. For each and every project phase, target cost canbe compared with the Expected Actuals for that particular phase, with the actual budget available. Thishelps in altering the Funding requirements of the project.Figure 7.1 shows three zones of the cost gap.Red Zone is the one we need to focus to reduce the cost where the cost gap is high. Yellow is mediumrisk to the project and can be prioritized second. Green zone, we can ignore as the cost is secured. 8. 88 Point of No ReturnFigure 7.1, Target Cost Approach CurvePONR is an efficient tool in estimating the cut-off time for activities involved in execution of the project. Inproject, each and every task has a deadline. In order to calculate the time required for the task, it isnecessary to come from the reverse. We fix the final milestone of the project and calculate the timerequired for every activity from end to start. Figure 8.1 shows the Point of No Return for Interior parts vis--vis, Bumper, Windshield, Head lamp and Rear Window Slide able. The PoNR cut-off time is shown inThunder symbol based on lead time to develop the part, having the project milestone fixed. This helps intracking the project closely to avoid any critical issues on implementation.Figure 8.1, PoNR for Interior Parts 9. 99 ABC AnalysisABC Analysis process aids in knowing us to focus on the core elements of the project. It says 75% of thecost is incurred by 5% of the parts which are in the A level. 10% of the cost is incurred by 15% of theparts which are in B level. Rest 85% of the parts form the C level parts which contributes 10% of the cost.This pushes us to prioritize the focus on the A and B level with more accuracy in tracking.10 Characteristic ManagementFigure 9.1, ABC Analysis for Automotive ProjectProduct characteristics defined based on Customer, Internal & Legal requirements to ensure thestrategic market position, requirements from the customers point of view are to be observed as wellas internal guidelines & legal requirements. The Characteristics management considers all thesedefined requirements as characteristics criteria with highest priority on key buying criteria. All targetvalues are finalized and status of values are recorded & evaluated in the characteristics management 10. 10INTERNALGUIDELINES: Conceptualflexibility Complexity Daimler standards11 Lessons LearntCUSTOMERREQUIREMENTS:Product relevant buying criteria Fuel efficiency Payload Reliability ComfortLEGALREQUIREMENT Emission: BS-IV Noise: NVHlevels Safety: SUPD,RUPDFigure 10.1, Characteristic ManagementWhen a project reaches Start of Production, it has full maturity of what a product is expected. This hasbeen achieved in various feedback loops in design, process, production and at various phases. SomeLessons Learnt from the completed projects is stated below. When two projects are running on different timeline but on part commonization concept, timelineof earlier project has to be considered to complete all the relevantactivities for both the projects. Cross functional cost reduction work shop should be encouraged where in peoplefrom differentfunctions and also handling different systems can participate and provide valuable and perhapsinnovative cost reduction solutions for the project. Common forum should be set up so that interfacial issues related to system teamhandlingdifferent systems can be addressed and resolved 11. Packaging information to be clearly communicated to supplier and ensure completeadherencefrom supplier end to avoid receipt of wrong parts and avoid rework onvehicles later duringproduction Design solutions arising out of validation results or improvements should becomprehensivelydiscussed with all stake holders e.g. Projects, quality, purchasing,Supplier management and MEso that best solution from quality, cost and time canbe arrived at final impletation1112 ConclusionThrough the use of the above mentioned tools, it is possible to enhance the responsibilities of Projectmanagement which is Planning, Steering and Reporting. Tools like PoNR, ABC Analysis and Target CostMatching are useful in the Planning phase. Characteristic Management, target Cost Approach Curve andTimeline reporting are used in Steering and Reporting phase. The use of these tools brings structure toProject Management. Making such tools standard in a company also brings in transparency in thesystem.