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Dele Awofala Director of Quality – Vehicle Group, N.A. Date: Sept 23 rd 2015 Improving APQP Process for Effective Program Execution

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Dele Awofala Director of

Quality – Vehicle

Group, N.A.

Date: Sept 23rd

2015

Improving APQP Process

for

Effective Program

Execution

Combining our strengths

Accelerating our growth

Eaton

Sales $22B

Employees 102,000

Countries 175+

Year Founded 1911

Patents 10,463

Overview of Eaton

2

We provide reliable, efficient, safe and

sustainable power management for…

Buildings

Transportation

Industrial and Machinery

Information Technology

Infrastructure

Energy and Utilities

Public and private sectors

Electrical Products

Electrical Systems & Service

Aerospace Group

Hydraulic Group

Vehicle Group

Eaton Business Units

Overview of Eaton

3

Vehicle Group Customer Landscape

4

Technologies engineered for passenger car,

SUV and light and heavy duty trucks

Supercharger

Valve train

Torque Control

Fuel Emissions

& Powertrain

Controls

Fluid

Conveyance

& Plastics

Light-duty

Transmission

Clutches

Heavy-duty

Transmission

Vehicle Solutions

5

My Axle Program Manager Story

Year & Month: 2006, April

Plant: Detroit Axle Plant

Role: Program Manager

Program: 2007 Jeep Liberty Axle

6

Growth and Opportunities

Automotive industry continues to grow ……….

2020 light vehicle sales

2014 115

2018 161

Global new vehicle launches

Source: IHS.ocm pressroom, Nov 2014. 7

Challenges and Opportunities

Consumer expectation continues to drive ……

1. New technologies and innovation. ….. More complex programs

2. Global competitive landscape …. Increasing pressure for flawless launches

3. Shorter product life cycles ….. More frequent program launches

4. Global product platforms …. Challenges for global program teams

5. Global supplier network …. Increasing complexity of supplier launches

8

Notable Big Program Launches …. Current APOP Process may not be sufficient

9

Project: Boeing 787 Dreamliner.

Project: FCA New 9-speed transmission program.

Delayed vehicle launch for several months.

Synopsis:

Many new technologies. Software issues.

Supplier Challenges:

Changing OEM requirements.

Conflicting development information.

Product complexity

Cost increase from $5B to $12B (2013)

3 years delay in completion and budget overrun.

Synopsis: Changing requirements & scope.

Complexity of managing large supply chain.

Complexity of new manufacturing processes

Top Reasons For Poor Program Execution

Resources: Lack of resources, resource conflicts, turnover, poor planning

Requirements / Scope Changes: Unclear, lack of priority, ambiguous, contradictory

Complexity: Too complex, Not managed, Unfamiliar technology or system used

Planning / Schedules: Too tight, unrealistic, delays, insufficient details, poor estimates

Knowledge Sharing: Lack of right info, insufficient data, inefficient communication, inefficient transfer of best practices.

10 Source: Strategies for project recovery, pmsolutions Inc, 2011

Overview of APQP Process

PLANNNIG

11

Output of Each APQP Phase

12

Gaps In APQP Process

Resource Planning and Monitoring. Complexity Assessment Change Review Process Work Activities Review and Approval Process

1

2

3

4

13

Improving APQP Process

Resource Planning and Monitoring.

Complexity Assessment

Change Review Process

Work Activities Review and Approval Process

1

2

3

4

14

Resource Planning Challenges

Frequent changes in key resources during life of programs.

Un-coordinated monitoring of resources allocated to single or multiple programs.

Long delays in filling open positions within a program team.

The level of resource time engaged not managed.

1

15

Resource Planning and Monitoring

Name for each role required is defined early in the APQP process and reviewed frequently

Approving manager or director is also defined in the resource matrix.

Resource plan and level of engagement reviewed at each program gate.

Ensures adequate level of resources are assigned and gaps addressed quickly.

Gate Review Target Dates

Team Roster Name Title Name Title Name Title Name Title Name Title Name Title Name Title

Program Manager 0 0 0 0 0 0

Sales\Marketing 0 0 0 0 0 0 0 0 0 0 0 0

Lead Design Engineer 0 0 0 0 0 0 0 0 0 0 0 0

SCM / Purchasing 0 0 0 0 0 0 0 0 0 0 0 0

Supplier Development Engineer 0 0 0 0 0 0 0 0 0 0 0 0

APQP Engineer 0 0 0 0 0 0 0 0 0 0 0 0

Advanced Mfg.Engineer 0 0 0 0 0 0 0 0 0 0 0 0

Financial Analyst 0 0 0 0 0 0 0 0 0 0 0 0

HR Representative 0 0 0 0 0 0 0 0 0 0 0 0

Manufacuting Plant Engineer 0 0 0 0 0 0 0 0 0 0 0 0

Plant Quality 0 0 0 0 0 0 0 0 0 0 0 0

Systems Engineer 0 0 0 0 0 0 0 0 0 0 0 0

Software Engineer 0 0 0 0 0 0 0 0 0 0 0 0

Reliability Engineer 0 0 0 0 0 0 0 0 0 0 0 0

Other 0 0 0 0 0 0 0 0 0 0 0 0

Gate Review Target Dates

Work Package Approvers Name Title Name Title Name Title Name Title Name Title Name Title Name Title

Product Director 0 0 0 0 0 0 0 0 0 0 0 0

Sales / Marketing Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

Engineering Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

SCM Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

SDE Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

Regional Quality Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

Advanced Mfg. Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

Financial Controller 0 0 0 0 0 0 0 0 0 0 0 0

HR Manager or Director 0 0 0 0 0 0 0 0 0 0 0 0

Director of Operations 0 0 0 0 0 0 0 0 0 0 0 0

Plant Manager 0 0 0 0 0 0 0 0 0 0 0 0

Business Unit President 0 0 0 0 0 0 0 0 0 0 0 0

Others 0 0 0 0 0 0 0 0 0 0 0 0

Phase 5

Phase 0 Phase 1 Phase 2 Phase 5 Phase 6

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Phase 3 Phase 4

Phase 6

1

16

Improving APQP Process

Resource Planning and Monitoring.

Complexity Assessment

Change Review Process

Work Activities Review and Approval Process

1

2

3

4

17

Complexity Assessment Product range: Single component to complex system

Understanding the complexity of technology, manufacturing process and supply chain is critical to having an effective APQP process.

Supercharger

Cylinder De-Activation System Engine Valve

Class 8 transmission

2

18

Complexity Assessment Matrix

Five categories: Marketing

Technology

Supply Chain

Manufacturing

Project Management

90

80

70

60

50

40

30

20

10

0

Marketing Technology Supply Chain Manufacturing Project

Management

High Complexity

(Stranger)

Alien to organization

Medium Complexity

(Major Repeater)

Low Complexity

(Minor Repeater)

Runner

Weighted score of all elements in each category to a scale of 0 – 100

Highest ranking in the Assessment Matrix determines the complexity of the

program

Complexity drives the level of management focus and attention to the

APQP process

2

19

Improving APQP Process

Resource Planning and Monitoring.

Complexity Assessment

Change Review Process

Work Activities Review and Approval Process

1

2

3

4

20

Challenge with Change Management

Changes emerging after design and development is completed (Gate 3) and before production validation creates significant risk to flawless launch.

Manufacturing and supplier equipment are in development/tryout.

Drives supplier cost higher BOM cost.

Drives higher manufacturing cost.

3

21

Eaton Change Review Process

Change Review Board

Change Request

Impact / Benefit Analysis

Approve / Reject

Release & Implement

Change

Assess Result

Supply Chain

Management

Engineering

Manufacturing

Quality

Program

Management

Initiated after Gate 3

Changes after gate 3 go through a change review board consisting of cross-

functional reps – design, supply chain, mfg., quality and finance

Results in lower BOM and manufacturing cost

Minimize unplanned manufacturing reaction and enables flawless launch

Gate 3

3

22

Improving APQP Process

Resource Planning and Monitoring.

Complexity Assessment

Change Review Process

Work Activities Review and Approval Process

1

2

3

4

23

Work Activities Review and Approval

Linkage between each work activity is critical to the transfer

of customer requirements into finished product

Inconsistent cascading of special characteristics throughout

the APQP process

Gaps in translation of customer requirements into

controlled dimensions and features in production.

Customer Requirement /

Spec

Product Design / Development

DFMEA

Process Design & Development

PFMEA

Tooling & Equipment Build

Production Validation

Gage design / Build / MSA

Process Checks

Finished Product

4

Control Plan

CTQ/Special characteristics

Key Product Print

24

Eaton Work Activities Review and

Approval Process

Work activities review and approval prior to gate review.

Reviewer: Functional manager or Director

Ensures complete and correct information/requirements flows downstream

Evaluates the quality of work within the work packages.

Validates conformance to applicable standards and procedures.

Provides information @ gate review that supports moving (or not) to

the next phase.

Reduces the level of changes through the program life cycle.

Concept / Initial

Analysis

Plan and Define

Program

Product Design &

Development

Process Design & Development

Product & Process

Validation

Production / Launch

Gate1 Gate2 Gate3 Gate4 Gate5

4

25

Putting It All Together Improved APQP Framework ……….

Resource plan Complexity Assessment Work Activities Review

Resource plan reviews Complexity Assessment Work Activities Review

Resource plan reviews Change Reviews Work Activities Review

Resource plan reviews Change Reviews Work Activities Review

Resource plan reviews Change Reviews Work Activities Review

Change Reviews Work Activities Review

26

Illustration / Benefits

Product: Cylinder De-Activation system for automotive engines Launch date: June 2015 SOP

27

Conclusion

APQP Process is widely adopted for new product development and launch.

Current process is necessary but in-sufficient to achieve flawless launch

Additional activities to improve current APQP process; • Resource Planning and Monitoring. • Complexity Assessment • Change Review Process • Work Activities Review and Approval Process

Benefits of improved APQP process include; – Lower program cost – On-time launch – Minimized launch issues – Higher customer satisfaction

28

Remember

29

Questions

30

Presenter: Dele Awofala, PhD Contact: [email protected] Number: 734-717-1401