Lisboa 2004-03-16

assessing suppliers readinessfor closer

collaboration

assessing suppliers readinessfor closer

collaboration

João L Serras Pereirajlpereira@isq.pt

João L Serras Pereirajlpereira@isq.pt

Lisboa 2004-03-16

establishing a documented framework for on-line concurrent engineering and

cooperation between large industrial companies and their suppliers

establishing a documented framework for on-line concurrent engineering and

cooperation between large industrial companies and their suppliers

automotive and aeronautics industries

automotive and aeronautics industries

the projectthe project

Lisboa 2004-03-16

aimaim

large industry/SME business development support, by improving dialog effectiveness

a. identify and substantiate best practices

b. consensus gathering, structure and language (glossary) qualification

c. develop a comprehensive toolset supporting SME audit, benchmarking and training to improve capabilities

Lisboa 2004-03-16

the end productthe end producttraining

audit

self-assessment

benchmarking

certification

Lisboa 2004-03-16

the end productthe end productInteractive tutorials supported base actual success and failure situations from the industry..

case-study repository.

auditors training material

training

audit

self-assessment

benchmarking

certification

Lisboa 2004-03-16

comprehensive company audit support software enabling a common model framework that will be based on proven best practices

technology maturity assessment

training

audit

self-assessment

benchmarking

certification

the end productthe end product

Lisboa 2004-03-16

scorecard based software for self-assessment support of internal processes related to netframe focus with improvement suggestion.

technology maturity assessment

training

audit

self-assessment

benchmarking

certification

the end productthe end product

Lisboa 2004-03-16

benchmark against “ideal” or other players processes depending on demographics and other criteria.

training

audit

self-assessment

benchmarking

certification

the end productthe end product

Lisboa 2004-03-16

establish non-profit industry associations (ISQ, TOG, ATB) with the capability to qualify:

1. Supplier conformance with large industry’s expectations on the specific concurrent engineering processes – augment supplier offering and options

2. auditors accreditation for the netframe enabled processes

3. new trainers

4. new processes

training

audit

self-assessment

benchmarking

certification

the end productthe end product

Lisboa 2004-03-16

PHASE I: Best Practice identification

PHASE II: Toolset Development• PHASE III: Validation and

Dissemination

• From May, 1, 2002 through April, 30, 2005.

PHASE I: Best Practice identification

PHASE II: Toolset Development• PHASE III: Validation and

Dissemination

• From May, 1, 2002 through April, 30, 2005.

implementingimplementing

Lisboa 2004-03-16

business scenariobusiness scenario

process modelprocess model

best practice collection

best practice collection

best practice categorisation

best practice categorisation

best practice validation

best practice validation

phase I: best practice reference setphase I: best practice reference set

Lisboa 2004-03-16

business scenariobusiness scenario

process modelprocess model

best practice collection

best practice collection

best practice categorisation

best practice categorisation

best practice validation

best practice validation

phase I: best practice reference setphase I: best practice reference set

Lisboa 2004-03-16

phase I: best practice reference setphase I: best practice reference set

Lisboa 2004-03-16

business scenariobusiness scenario

process modelprocess model

best practice collection

best practice collection

best practice categorisation

best practice categorisation

best practice validation

best practice validation

phase I: best practice reference setphase I: best practice reference set

Lisboa 2004-03-16

business scenariobusiness scenario

process modelprocess model

best practice collection

best practice collection

best practice categorisation

best practice categorisation

best practice validation

best practice validation

phase I: best practice reference setphase I: best practice reference set

Lisboa 2004-03-16

the first collected data set was an assessment of organisations utilisation of the best practices.

interviewed personnel were grouped by functions:

– management - in charge of the company’s supplier policies and the managing and co-ordination of production projects at a senior level.

– technical - in charge of technical analysis and planning of development and acceptance phases of the project.

– administrative - in charge of all the administrative, legal and financial matters.

the first collected data set was an assessment of organisations utilisation of the best practices.

interviewed personnel were grouped by functions:

– management - in charge of the company’s supplier policies and the managing and co-ordination of production projects at a senior level.

– technical - in charge of technical analysis and planning of development and acceptance phases of the project.

– administrative - in charge of all the administrative, legal and financial matters.

assessingassessing

Lisboa 2004-03-16

NETFRAME analysed 33 projects. Result metrics data from the production projects were collected from the project managers under the following conditions:

– significant size, so that formal requirements and decision-making processes were used.

– no pre-selection of ‘good’ or ‘bad’ projects, so the statistical process would not be biased toward certain results.

– recent enough so that projects results corresponded to the practices assessed.

– the actual production project should have entered the contract-signed phase and had produced first production units before the final collection of results metrics.

NETFRAME analysed 33 projects. Result metrics data from the production projects were collected from the project managers under the following conditions:

– significant size, so that formal requirements and decision-making processes were used.

– no pre-selection of ‘good’ or ‘bad’ projects, so the statistical process would not be biased toward certain results.

– recent enough so that projects results corresponded to the practices assessed.

– the actual production project should have entered the contract-signed phase and had produced first production units before the final collection of results metrics.

collecting metricscollecting metrics

Lisboa 2004-03-16

phase I: obtaining best practicesphase I: obtaining best practices

Lisboa 2004-03-16

phase I: obtaining metricsphase I: obtaining metrics

Lisboa 2004-03-16

business scenariobusiness scenario

process modelprocess model

best practice collection

best practice collection

best practice categorisation

best practice categorisation

best practice validation

best practice validation

phase I: relating BP to metricsphase I: relating BP to metrics

Lisboa 2004-03-16

business scenariobusiness scenario

process modelprocess model

best practice collection

best practice collection

best practice categorisation

best practice categorisation

best practice validation

best practice validation

phase I: relating BP to metricsphase I: relating BP to metrics

Lisboa 2004-03-16

Process area Ref. Practices correlated with multiple improvements

Contract Performance – Procurement Acceptance

68 At each milestone review, cost objectives and progress towards achieving user needs shall be reassessed.

Quality Assurance 102 Use a quality review to measure consistency between the main terms and conditions and across all schedules of the Contract.

Procurement Needs - Procurement Policy

406 Establish a reuse policy from the beginning of a project.

Contract Award - Tender Evaluation

488 Select companies with reasonable scores across the board, rather than the company with the highest aggregate score.

Contract Award - Contract Negotiation

1264 Link the major proportion of the supplier's payment to successful completion of the acceptance test.

Full Engineering Design 1266 Minimize the number of parts or assembly variants early in the manufacturing process.

Industrial Engineering - Production Testing Equipment and Test

1055 Identify the weak points of a design and break down the assembly into discrete operations.

Design Validation - Prototype Manufacturing

1163 Periodically review different approaches to manufacture/develop a product.

Design Validation - Prototype Testing

82 Define the complete plan of all tests to be conducted.

Problem Resolution 1061 Use Decision Trees as a structured diagram showing consequences of stratified problems where an early event influences future activities.

Project Management 122 Project is regularly tested against the "virtual factory" business requirements.

“best” best practices“best” best practices

Lisboa 2004-03-16

Process area Ref. Practices correlated with improvements

Procurement Needs - Benefits Analysis 417 Use quantified analysis for assessing benefits.

419 Life cycle cost and schedule estimates shall be independently reviewed.

Contract Award - Tender Evaluation 474 Use a multiphase tendering process when uncertainty and/or complexity is high.

Industrial Engineering - Production Tooling 219 Invest in quick set-up methods for tools and production machines.

Industrial Engineering - Manufacturing Processes

482 Supplier should have an in-depth understanding of manufacturing process to enable them to offer the specified solution.

Design Validation - Prototype Acceptance 217 Use Controlled Product Release with in-process design reviews, final design review, pre-production run & evaluation and a final product release approval.

Validation 150 Instrument and organise the collection of user/customer feedback during the manufacturing process.

Contract Performance - Supplier Monitoring 116 The project team assesses supplier’s performance for compliance with evaluation requirements.

Documentation 83 An integrated data management system will be established to capture and control the technical information and traceability among the different aspects of planning, development and delivery.

Configuration Management 93 Plan suitable Procurement Management resources to carry out configuration management.

Verification 112 Verify satisfaction of non-functional requirements at each project increment.

119 Modelling and simulation shall be an integral part of test and evaluation planning.

Joint Review 127 The user/customer shall periodically participate in product development to determine the satisfaction of operational requirements.

1215 Conduct periodic joint technical reviews to assess technical issues and status against requirements and documented acceptance criteria.

“worst” best practices“worst” best practices

Lisboa 2004-03-16

Process area Ref. Practices correlated with improvements

Procurement Needs - Benefits Analysis 417 Use quantified analysis for assessing benefits.

419 Life cycle cost and schedule estimates shall be independently reviewed.

Contract Award - Tender Evaluation 474 Use a multiphase tendering process when uncertainty and/or complexity is high.

Industrial Engineering - Production Tooling 219 Invest in quick set-up methods for tools and production machines.

Industrial Engineering - Manufacturing Processes

482 Supplier should have an in-depth understanding of manufacturing process to enable them to offer the specified solution.

Design Validation - Prototype Acceptance 217 Use Controlled Product Release with in-process design reviews, final design review, pre-production run & evaluation and a final product release approval.

Validation 150 Instrument and organise the collection of user/customer feedback during the manufacturing process.

Contract Performance - Supplier Monitoring 116 The project team assesses supplier’s performance for compliance with evaluation requirements.

Documentation 83 An integrated data management system will be established to capture and control the technical information and traceability among the different aspects of planning, development and delivery.

Configuration Management 93 Plan suitable Procurement Management resources to carry out configuration management.

Verification 112 Verify satisfaction of non-functional requirements at each project increment.

119 Modelling and simulation shall be an integral part of test and evaluation planning.

Joint Review 127 The user/customer shall periodically participate in product development to determine the satisfaction of operational requirements.

1215 Conduct periodic joint technical reviews to assess technical issues and status against requirements and documented acceptance criteria.

“worst” best practices“worst” best practices

Lisboa 2004-03-16

Return on investment from the procured component

488 Select companies with reasonable scores across the board, rather than the company with the highest aggregate score.

950 Develop and apply producibility and supportability guidelines.

79 Project documentation shall conform to defined projects standards.

257 Training is seen as an integral part of the business, with classes being ministered internally, and mostly on site.

goal action items

improving by target Iimproving by target I

Lisboa 2004-03-16

Percentage of overruns in the project

1069 Provide a technique for identifying and cross referencing all requirements and design specifications.

Percentage of project extension mutually agreed with the supplier

353 Break the manufacturing of a product into a sequence of events, which can be divided into operations to be completed within a specified time period.

200 Manage risks by monitoring the suppliers approach to risk management.

goal action items

improving by target IIimproving by target II

Lisboa 2004-03-16

goal action itemsDegree to which the component met our performance requirements

1266 Minimize the number of parts or assembly variants early in the manufacturing process.

Number of problems detected during initial planning phase

452 Intellectual property rights should be defined regarding customer rights to components developed by the suppliers.

Number of problems detected during design phase

38 Use material verification record system for on-line material specifications, drawings, quality performance and manufacturing problems.

1163 Periodically review different approaches to manufacture/develop a product.

Rework effort due to corrective actions during contracting phase

106 Define performance metrics for the specified component requirements.

1055 Identify the weak points of a design and break down the assembly into discrete operations.

54 Confirm the components capability through final integration testing.

Rework effort due to corrective actions during design phase

1055 Identify the weak points of a design and break down the assembly into discrete operations.

improving by target IIIimproving by target III

Lisboa 2004-03-16

• audit• self assessment• interactive training• repository• XML model

• audit• self assessment• interactive training• repository• XML model

phase II – the toolsetphase II – the toolset

Lisboa 2004-03-16

audit toolaudit tool

Lisboa 2004-03-16

audit toolaudit tool

Lisboa 2004-03-16

• SME training (seminars/workshops)• on-site training for OGMA/IRVIN/VW• SME self-assessment• ...

• SME training (seminars/workshops)• on-site training for OGMA/IRVIN/VW• SME self-assessment• ...

phase 3: validation & disseminationphase 3: validation & dissemination

Lisboa 2004-03-16

SME key benefits SME key benefits • ability to improve effectiveness

– Internal processes validated according to proven best practices

– Consulting and training of personnel on new technologies and processes

• ability to improve effectiveness– Internal processes validated according to

proven best practices– Consulting and training of personnel on

new technologies and processes

• access to new markets/clients–Quality assessment leading to inclusion as supplier on large manufacturers–Cross industry openess

Lisboa 2004-03-16

thank you