Imagination at work.

Matteo Bellucci, Manager, Manufacturing Processes and Systems Lab

Neil Johnson, Principal Engineer, Manufacturing Processes and Systems Lab

Martha Gardner, Chief Scientist and Global Quality Leader

June 25, 2014

Should Cost - GE Research

Outline

• GE & Global Research

• Managing Cost In Innovation

• Should Cost

• Defining Should Cost

• Our Mission For Cost and Value

• Involvement & Focus Areas

• Tools Validation

• Virtual Teardowns

• Applying Tools

• Summary

GE External

GE

Oil & Gas Power & Water Energy Management

Transportation Healthcare Aviation Home & Business Solutions

GE Capital

GRC = R&D Function Across GE

Founded 1892, 300,000 Employees world wide

$150B Annual Revenue,

GE External

Market-focused R&D The cornerstone of GE’s commitment to technology

• First U.S. industrial lab

• ~2000 scientists/engineers, nearly two-thirds PhDs

• 3,615 U.S. patents filed by GE in 2011

• One of the world’s most diversified industrial

research organizations, providing innovative

technology for all of GE’s businesses

Global Software Center San Ramon, CA

Brazil Technology Center Rio de Janeiro, Brazil

China Technology Center Shanghai, China

India Technology Center Bangalore, India

Global Research Europe Munich, Germany

Global Research Headquarters Niskayuna, NY

AMSTC Ann Arbor, MI

Expanding Presence –

GE External

Corporate Product Cost/Value CoE

Disruptive Product Cost Approach

Tools & Sustainability

Product Teardowns

Cost Entitlement Competitive Assessment Optimization

Cross-functional

Value Engineering Integration

System/sub-system focus

TRIZ tools

Real-time trade-offs

Competitive Info Integration

Common Systems Teardowns Competitors + Matrix

Value Engineering and Trade-off Suite Teardown/Competitive Data Capture

and Sharing Should-cost models, Manufacturing

capability System and Component Trade-Off Tools Yield Transfer functions Comprehensive Total Variable Cost

Continue Momentum Knowledge Sharing

Tool Integration

Expertise/Resources Training

Database

Framework Develop

Maintain

GE External

• Adapted Technology Readiness (TRL) & Manufacturing Readiness Levels and (MRL) Process Developed by NASA & Dept. of Defense

• Plan, manage projects based on the TRL & MRL progression • Evaluates readiness for business transition • Concurrently evaluate cost during the NPI/NTI development process

Managing Cost in Innovation

Evaluating Cost Early in Design Process GE External

Should Cost Process

System Optimization

SWOT Analysis

MaxDiff

Conjoint Analysis

TRIZ

PLMS

S-curve

Core-Products

Product - Surround

Competitive Assessment

Teardown Database

Virtual Teardown

Industry Metric Initiatives

Modularization

Cost Entitlement

Disruptive Cost Work-Outs

New process simulations

Should-cost Models

Design for Manufacturability

Corporate Warehouse

TRIZ + Cost

Market

Function To Value

1 - 2

Product

Cost in Product

per Function

3 - 4

Trade-Offs

Design and

Supply Options

4 - 5

Cost Efficiency

Tracking through

lifecycle

6 - 7

Cost Reduction

Continuous

Improvement

8 - 9

Tools

Assess Product Cost Throughout Dev.

GE External

Should Cost: What and How

What is this Part/Product going to

cost:

• Given a particular Process, Material,

Plant and Capital

• Within a Region

• From a Supplier

• Build a new plant

• Cost saving vs. investment

• Make-buy decisions

• Choice of process, design, technology

How do we define “Should Cost”:

• Entitlement .. Lowest possible cost

• In-house Cost .. Existing, Processes,

Materials, Equipment, Labor…

• Supplier Cost .. What should I pay

• NPI.. Tailor NPI product cost to customers’

demand

Deliver Value in every Market/Region

GE External

GRC Focus Areas • Design tools Integration: push costing analysis upfront to

the drawing board. Integrated cost-design process

• “Templatization” : Templates based on “categories” or

“families” of objects with similar geometries, requirements,

features or constraints

• Automation: develop methodology for batch execution for

iterative costing… scenario evaluation. •

• Synergy: work closely with R&D activities for “feature

recognition” integration with CAD design tools development

• Simplification: improve the interfaces to be more intuitive

and user friendly for specific GE Manufacturing Processes

• Common Materials Database: Establish database with raw

material suppliers and costs accessible to all GE businesses

GE External

Tools / Model Validation Activities

• Comparison of Actual Cost

• Part Geometry & Processes Dependent

• Critical Knowledge of Process and Data

• Creates Awareness, Dialog and Investigation

GE External

Virtual Teardown Activity: Build 3D Geometry from Set of Multiple Views

• Extract Geometric Information from Single / Multiple View of Parts /

Assemblies

• Reconstruct Geometry from photographs

• Assimilate Views from Multiple Disparate Sources

• Transformation of the images from Multiple Perspective Images into

Component & Structural CAD Models

• Accelerate Teardown Analysis

• Perform Competitors Analysis

• From Part Photo Geometric CAD Model Cost Projection

GE External

Applying Tools.. Preliminary Design

GE Built – G-Calc / COMPEAT$TM

Geometry Comparison Cost Estimation Tool, GE Aviation, Energy, O&G

Product Line, Program Development, Finance

Excel Based – Individually Built Bottoms Up Elements

Cycle, Process Yield, Capital Equipment & Labor Resources

Direct Material - Input

Probabilistic Analysis (Crystal Ball)

Excel Rollup

Detailed Design, Value Eng. / Mfg., Sourcing

Boothroyd Dewhurst - DFMA, Concurrent Costing

aPriori

Boothroyd Dewhurst

BDI - DFMA

Product Assembly Process, Teardown, Revers Engineering

Analysis

Sheet Metal Work..

C&I, Ball Products, US Can …

Assembly & Welding Processes..

C&I, Energy, Transportation

Alpha Ceramics Processing..

GE Lighting, GRC, Coorstech, Corning

Assembly & Welding

Processes.. C&I, Energy,

Transportation

Co-Extruded Ni-Cu Rod

Anomet Products (MA)

Beta Ceramic Processing

Ceramic to Metal Bonding, TCB,

Cerametc, Ionotec, Inta Technologies …

Ceramic to Ceramic Bonding,

GEL, GRC Suppliers: Coorstech, Coringin, Cerametc, Ionotec, Inta Technologies…

aPriori

GE External

• No “best” tool Different tools for different applications • Costing requires domain knowledge of process • Accurate, up-to-date Data critical for analysis Difficult to obtain and maintain. • Should Cost Entitlement Dependent on the question and assumptions

• Build a Plant or New Business Rollup all the costs, Variable

and Fixed (Base)

• Change Design or Process Generally comparing to existing..

only looking at Variable (same Basis cost for each) • No “single” answer for “cost” Cost Distribution based on performance, throughput, yield, etc.

Challenges

GE External