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 isnt the limits of technology or the changing global marketplace- its 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 isnt to hire more people or pull your hair out- its 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.

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<ul><li><p>CAPINC Presents </p><p>Jason Pancoast Engineering Manager www.capinc.com </p></li><li><p> CAPINC </p><p>Efficiency </p><p>Innovation Preventing </p><p>Errors </p><p>PROFIT </p><p>Customer Satisfaction </p><p>Reducing Cycle Time </p><p>Cost Reduction </p></li><li><p> CAPINC </p><p>Time </p><p>Sales </p><p>Original Timeline </p><p>Minimal Impact of Delay Ideal Monopoly Case </p><p>Delayed Timeline </p><p>Delay </p><p>Product Launch </p></li><li><p> CAPINC </p><p>Time </p><p>Sales </p><p>Original Timeline </p><p>Delayed Timeline </p><p>Delay </p><p>Lost sales </p><p>Lost sales </p><p>Delay = Cost Of Delay (COD) </p><p>Product Launch </p><p>Financial Impact of Delay Competitive Market Case </p></li><li><p> Explore Cost of Delay applications and implications. </p><p> Learn how SolidWorks + DriveWorks can reduce delays and increase profits. </p><p> Measure the impact of the Design-In-Process queue. </p><p> CAPINC </p></li><li><p> CAPINC </p><p>Case 1: COD: $10,000/week </p><p> Product has issues that will delay launch 4 weeks. Issues will cost $50,000 in sales, Marketing predicts. What do you do? </p><p>Case 2: COD: $30,000/week </p></li><li><p> CAPINC </p><p>Case 1: COD: ??? </p><p> Product has problems. Development can find problems in 5 weeks. Manufacturing can find problems in 1 week. Manufacturing estimates that re-tooling to address </p><p>problems will cost $50,000. Should Development push this immature product to Manufacturing? </p><p>Case 2: COD: $20,000/week </p></li><li><p> CAPINC </p><p>Case 1: COD: ??? </p><p>Case 2: COD: $20,000/week </p></li><li><p> Only 15% of product developers know their Cost of Delay. </p><p> Employees on the same project estimates vary by 50x. </p><p> Proper economic framework can improve estimates to vary only 2x. </p><p> CAPINC </p></li><li><p> CAPINC </p><p>Production Delay: Sales Quote Delay: </p><p>Ask your sales person: Would the customer </p><p>pay an extra 10% to get a quote </p></li><li><p> Explore Cost of Delay applications and implications. </p><p> Learn how SolidWorks + DriveWorks can reduce delays and increase profits. </p><p> Measure the impact of the Design-In-Process queue. </p><p> CAPINC </p></li><li><p> Knowing your Cost of Delay turns debates into profitable decisions. </p><p> Learn how SolidWorks + DriveWorks can reduce delays and increase profits. </p><p> Measure the impact of the Design-In-Process queue. </p><p> CAPINC </p></li><li><p> Lots of back-and-forth between sales and engineering. </p><p> Engineering time is consumed by repetitive work. </p><p> Need to open up R&amp;D opportunities for new accounts and innovation. </p><p> Requoting missed requirements is embarrassing and time-consuming. </p><p> CAPINC </p></li><li><p> Automation is a benign circle. You just need to get the engine started. For best ROI, start </p><p>with low-hanging fruit! </p><p> Create a positive- feedback-loop. </p><p> Then automate the exceptions... </p><p> CAPINC </p><p>Automation Effort </p><p>Automated Tasks </p><p>Queue reduction </p><p>Excess capacity! </p></li><li><p> CAPINC </p><p>Input customer requirements... </p><p>Form-based user interface </p><p>Web Browser or Desktop </p><p>...Let knowledge-based engineering take over... </p><p>Fast and powerful rules engine </p><p>Excel-style logic and formulas </p><p>...Automatically produce CAD and other documents </p><p>Behind-the-scenes operation </p><p>SolidWorks and MS Office </p></li><li><p>Capture customer requirements and create sales documents </p><p> CAPINC </p></li><li><p> Knowing your Cost of Delay turns debates into profitable decisions. </p><p> Learn how SolidWorks + DriveWorks can reduce delays and increase profits. </p><p> Measure the impact of the Design-In-Process queue. </p><p> CAPINC </p></li><li><p> Knowing your Cost of Delay turns debates into profitable decisions. </p><p> Implementing SolidWorks with DriveWorks reduces delays and increases profits. </p><p> Measure the impact of the Design-In-Process queue. </p><p> CAPINC </p></li><li><p> CAPINC </p><p>Work-In-Progress (WIP) Designs-In-Progress (DIP) </p><p> Refers to physical parts Easy to see Tracked by Finance Departments </p><p> Refers to ideas HARD to see UNTRACKED by 98% of </p><p>design houses! </p></li><li><p> CAPINC </p><p>How long? </p></li><li><p> Cycle Time is a trailing indicator of a problem. </p><p> Queue size is a leading indicator. </p><p> Littles Law says you can measure one to get the other, if you must... </p><p> CAPINC </p></li><li><p> Example1: If you complete 10 jobs per week, and you have 50 jobs in process, your time in queue is 5 weeks. </p><p> Example 2: If your cycle time is 30 days and you complete 2 jobs per day, your DIP is 60 jobs. </p><p> CAPINC </p><p>Wait Time = Queue Size </p><p> Processing Rate </p><p>* John D.C. Little, MIT, 1961 </p></li><li><p> CAPINC </p><p>5 weeks in queue </p><p>$30K per week COD </p><p>60 products per year </p><p>Cost of Queue = 5 x $30K x 60 = $9,000,000 per year </p></li><li><p> Big DIP queue has damaging effects: Longer cycle time (Cost of Delay) </p><p> Increased risk from changes over time </p><p> Variability due to high capacity </p><p> More overhead to maintain queue </p><p> Lower quality from delayed feedback </p><p> Less motivation to work with urgency </p><p> Only 2% of product developers measure their DIP queues! </p><p> CAPINC </p></li><li><p> Modest improvements in capacity can dramatically reduce your queue! </p><p> CAPINC </p><p>3 items at 75% </p><p>19 items at 95% </p></li><li><p>Sales and Marketing </p><p>CAD </p><p>Analysis, Prototyping, and Testing </p><p>Management Approval </p><p>Purchasing </p><p>Tooling </p><p> CAPINC </p></li><li><p>DriveWorks Administrator </p><p>+ </p><p>+ </p><p>DriveWorks Autopilot </p><p>DriveWorks Live </p><p>DriveWorks Live users </p><p>EPDM </p><p>+ </p></li><li><p>Generate engineering drawings and production documents </p><p> CAPINC </p></li><li><p> Knowing your Cost of Delay turns debates into profitable decisions. </p><p> Implementing SolidWorks with DriveWorks reduces delays and increases profits. </p><p> Measure the impact of the Design-In-Process queue. </p><p> CAPINC </p></li><li><p> Knowing your Cost of Delay turns debates into profitable decisions. </p><p> Implementing SolidWorks with DriveWorks reduces delays and increases profits. </p><p> Reducing your Design-In-Process queue saves costs dramatically. </p><p> CAPINC </p></li><li><p> For more theory... read Reinertsens book </p><p> For more application... email salesinfo@capinc.com </p><p> CAPINC </p></li><li><p>Thank you for attending Ive Got 99 Projects but Profit Aint One </p><p>Jason Pancoast Engineering Manager jpancoast@capinc.com www.capinc.com </p></li></ul>