got 99 projects but profit ain't one? - capinc presentation on automation

Download Got 99 Projects But Profit Ain't One? - CAPINC Presentation on Automation

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The biggest challenge to successful product design isn’t the limits of technology or the changing global marketplace- it’s the sheer number of tasks waiting for each engineer to complete! A large Work In Progress (WIP) queue turns innovation into imitation by delaying product launch. A large WIP reduces agility because new opportunities go to the back of the queue, yet only 2 percent of product developers measure their WIP queues and only 15 percent of them can quantify the cost of launch delay. But the answer isn’t to hire more people or pull your hair out- it’s to automate tasks that lend themselves to it, reducing your WIP queue and finally freeing your engineers to innovate! This presentations covers some techniques to quantify your WIP queue and how much it is costing you. It also covers how to automate the most common product development tasks that engineers, sales and quoting departments do every day, using a combination of SolidWorks software and the powerful automation add-in DriveWorks.

TRANSCRIPT

  • CAPINC Presents

    Jason Pancoast Engineering Manager www.capinc.com

  • CAPINC

    Efficiency

    Innovation Preventing

    Errors

    PROFIT

    Customer Satisfaction

    Reducing Cycle Time

    Cost Reduction

  • CAPINC

    Time

    Sales

    Original Timeline

    Minimal Impact of Delay Ideal Monopoly Case

    Delayed Timeline

    Delay

    Product Launch

  • CAPINC

    Time

    Sales

    Original Timeline

    Delayed Timeline

    Delay

    Lost sales

    Lost sales

    Delay = Cost Of Delay (COD)

    Product Launch

    Financial Impact of Delay Competitive Market Case

  • Explore Cost of Delay applications and implications.

    Learn how SolidWorks + DriveWorks can reduce delays and increase profits.

    Measure the impact of the Design-In-Process queue.

    CAPINC

  • CAPINC

    Case 1: COD: $10,000/week

    Product has issues that will delay launch 4 weeks. Issues will cost $50,000 in sales, Marketing predicts. What do you do?

    Case 2: COD: $30,000/week

  • CAPINC

    Case 1: COD: ???

    Product has problems. Development can find problems in 5 weeks. Manufacturing can find problems in 1 week. Manufacturing estimates that re-tooling to address

    problems will cost $50,000. Should Development push this immature product to Manufacturing?

    Case 2: COD: $20,000/week

  • CAPINC

    Case 1: COD: ???

    Case 2: COD: $20,000/week

  • Only 15% of product developers know their Cost of Delay.

    Employees on the same project estimates vary by 50x.

    Proper economic framework can improve estimates to vary only 2x.

    CAPINC

  • CAPINC

    Production Delay: Sales Quote Delay:

    Ask your sales person: Would the customer

    pay an extra 10% to get a quote

  • Explore Cost of Delay applications and implications.

    Learn how SolidWorks + DriveWorks can reduce delays and increase profits.

    Measure the impact of the Design-In-Process queue.

    CAPINC

  • Knowing your Cost of Delay turns debates into profitable decisions.

    Learn how SolidWorks + DriveWorks can reduce delays and increase profits.

    Measure the impact of the Design-In-Process queue.

    CAPINC

  • Lots of back-and-forth between sales and engineering.

    Engineering time is consumed by repetitive work.

    Need to open up R&D opportunities for new accounts and innovation.

    Requoting missed requirements is embarrassing and time-consuming.

    CAPINC

  • Automation is a benign circle. You just need to get the engine started. For best ROI, start

    with low-hanging fruit!

    Create a positive- feedback-loop.

    Then automate the exceptions...

    CAPINC

    Automation Effort

    Automated Tasks

    Queue reduction

    Excess capacity!

  • CAPINC

    Input customer requirements...

    Form-based user interface

    Web Browser or Desktop

    ...Let knowledge-based engineering take over...

    Fast and powerful rules engine

    Excel-style logic and formulas

    ...Automatically produce CAD and other documents

    Behind-the-scenes operation

    SolidWorks and MS Office

  • Capture customer requirements and create sales documents

    CAPINC

  • Knowing your Cost of Delay turns debates into profitable decisions.

    Learn how SolidWorks + DriveWorks can reduce delays and increase profits.

    Measure the impact of the Design-In-Process queue.

    CAPINC

  • Knowing your Cost of Delay turns debates into profitable decisions.

    Implementing SolidWorks with DriveWorks reduces delays and increases profits.

    Measure the impact of the Design-In-Process queue.

    CAPINC

  • CAPINC

    Work-In-Progress (WIP) Designs-In-Progress (DIP)

    Refers to physical parts Easy to see Tracked by Finance Departments

    Refers to ideas HARD to see UNTRACKED by 98% of

    design houses!

  • CAPINC

    How long?

  • Cycle Time is a trailing indicator of a problem.

    Queue size is a leading indicator.

    Littles Law says you can measure one to get the other, if you must...

    CAPINC

  • Example1: If you complete 10 jobs per week, and you have 50 jobs in process, your time in queue is 5 weeks.

    Example 2: If your cycle time is 30 days and you complete 2 jobs per day, your DIP is 60 jobs.

    CAPINC

    Wait Time = Queue Size

    Processing Rate

    * John D.C. Little, MIT, 1961

  • CAPINC

    5 weeks in queue

    $30K per week COD

    60 products per year

    Cost of Queue = 5 x $30K x 60 = $9,000,000 per year

  • Big DIP queue has damaging effects: Longer cycle time (Cost of Delay)

    Increased risk from changes over time

    Variability due to high capacity

    More overhead to maintain queue

    Lower quality from delayed feedback

    Less motivation to work with urgency

    Only 2% of product developers measure their DIP queues!

    CAPINC

  • Modest improvements in capacity can dramatically reduce your queue!

    CAPINC

    3 items at 75%

    19 items at 95%

  • Sales and Marketing

    CAD

    Analysis, Prototyping, and Testing

    Management Approval

    Purchasing

    Tooling

    CAPINC

  • DriveWorks Administrator

    +

    +

    DriveWorks Autopilot

    DriveWorks Live

    DriveWorks Live users

    EPDM

    +

  • Generate engineering drawings and production documents

    CAPINC

  • Knowing your Cost of Delay turns debates into profitable decisions.

    Implementing SolidWorks with DriveWorks reduces delays and increases profits.

    Measure the impact of the Design-In-Process queue.

    CAPINC

  • Knowing your Cost of Delay turns debates into profitable decisions.

    Implementing SolidWorks with DriveWorks reduces delays and increases profits.

    Reducing your Design-In-Process queue saves costs dramatically.

    CAPINC

  • For more theory... read Reinertsens book

    For more application... email salesinfo@capinc.com

    CAPINC

  • Thank you for attending Ive Got 99 Projects but Profit Aint One

    Jason Pancoast Engineering Manager jpancoast@capinc.com www.capinc.com

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