new product case study part 3 a
DESCRIPTION
Part 3A of a multi-part product development case outlined from start to finish.TRANSCRIPT
part 3 a of 7 part Case Study
1 Product development
Luxury brand Case Study
2
Notes
3
November 2012
Max Ruckman, Black & Decker HHI
Bill O’Connor, Source, Inc.
Andy Schechterman, MS, PHD
Michael Eckersley, MFA, PHD
Bruce Eckman
FRCH
Luxury Brand
Business
Development
Case Study Part 3 A
www.maxruckman.com
4
Phase iii
5
Phase iii
6
Phase iii
manufacturing input
7
Phase iii
supplier input
8
Phase iii
9
Phase iii
10
Phase iii
layout drawings
11
Phase iii
12
Phase iii
approved industrial design model
13
Phase iii
14
Phase iii
patent review
15
patent attorneys have presented an opinion of non-infringement
16
patent disclosure
Patent review
provisional patents will be converted to patents
model numbers will be provided for top and lower level components
17
manufacturing and documentation teams will resolve issues
new SKU’s and EASE label numbers will be applied to the product
Documentation
Phase iii
18
Phase iii
product definition
19
Next steps
20
Manufacturing plan
21
22 Situational analysis
23 Situational analysis
24 Situational analysis
tuscan villa collection
25 Situational analysis
Craftsman
collection
26 Situational analysis
French chateau collection
27 Situational analysis
general specifications
28 Situational analysis
Packaging Specifications
29
IRR
Financial summary
30
$394,000 Initial tooling & equipment
Financial summary
31
$70,000
program expenses
Financial summary
32 Financial summary
1
pr
of
it
33 Financial summary
34 Financial summary
Ca
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35 Financial summary
Wo
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c
ap
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36 Financial summary
se
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ity
37 Financial summary
inv
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38 Financial summary
Re
tu
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on
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39 Part 3A steps
create a business unit that will offer an
upscale brand of unique door hardware,
with an emphasis on architecturally
styled products for the home market
40 objective
craftsmen
41 scope
future plans to add approximately 4 new families
product families
french chateau
tuscan villa
42 scope
a complete breath of product will be developed for each family
mortise box
tubular deadbolt
knob lever
hinges
pocket door door knocker
door bell
surface bolt
address numbers
marketing
packaging documentation
quality sourcing manufacturing
logistics
finance
process/product development
supply chain distribution
customer service
43 Team members
44 Program organization flow chart
program will be released in (2) phases
preliminary manufacturing plan will only address timing of phase (1)
final manufacturing plan will encompass both launch phases
45 Preliminary schedule
Manufacturing Preliminary Schedule 290 days 03/25/03 05/03/04
Preliminary Sourcing Plan 25 days 03/25/03 04/28/03
Preliminary Manufacturing Plan 25 days 03/25/03 04/28/03
Design for Manufacturability 20 days 04/29/03 05/26/03
Make v . Buy Analysis 15 days 05/27/03 06/16/03
Finalized Unit Cost Analysis 15 days 06/17/03 07/07/03
Final Sourcing Strategy 10 days 07/08/03 07/21103
Finishing Process Development 60 days 07/08/03 09/29/03
Manufacturing Feasibility Analysis 10 days 05/27/03 06/09/03
Manufacturing Site Selection 5 days 06/10/03 06/16/03
Material Management Plan 20 days 06/17/03 07/14/03
Order Management Plan 20 days 07/15/03 08/11/03
Identify Manufacturing Process Equipment 20 days 07/15/03 08/11/03
Manufacturing Capability Analysis 15 days 07/15/03 08/04/03
Manufacturing Capacity Analysis 15 days 07/15/03 08/04/03
Operation & Assembly Strategy- Line 20 days 08/05/03 09/01/03
Quality Strategy 25 days 08/05/03 09/08/03
Distribution Strategy 15 days 08/12/03 09/01/03
Final Manufacturing Plan 5 days 09/09/03 09/15/03
Process FMEA Development 55 days 09/16/03 12/01/03
CAR & Expense Development 30 days 07/08/03 08/18/03
Tooling & Equipment Orders (Long Lead) 70 days 08/19/03 11/24/03
First Article and Other PQP Development 40 days 10/21/03 12/15/03
Order Launch Volume & Safety Stock 50 days 12/02/03 02/09/04
Production Line Development & Set-Up 80 days 08/19/03 12/08/03
Control Plan Development & TQC 35 days 12/02/03 01/19/04
Install & Sign-Off Equipment 20 days 12/09/03 01105/04
Finishing Process Transfer to Supplier 40 days 11/04/03 12/29/03
Documentation & SKU Activation 55 days 11/04/03 01/19/04
Logistics Plan 20 days 09/02/03 09/29/03
Service Parts Plan 10 days 09/30/03 10/13/03
Product Returns Plan 10 days 10/14/03 16)27/03
Pilot Build I Product Display 35 days 02/10/04 03/29/04
Ordering Available 5 days 03/30/04 04/05/04
Bulk I Ship Production 20 days 04/06/04 05/03/04
46 Manufacturing preliminary schedule
47 Schedule proposal
important: availability of design and engineering documents will dictate movement of the schedule
design completion engineering completion
contingency timing for extensive tooling modifications
re-submittal of first article
complete PQP and six sigma plan
design change
manufacturing schedule relies on supplier design
reviews and release of finalized drawings to support
the tooling and equipment build
48 Schedule proposal
a complete (phase 1) packet of pre-released, quote quality drawings must be available by 5/21/03
the (2) sub categories will launch in succession and
require the following lead times
49 Schedule proposal
long lead = 14wks (includes stamping, investment casting & finish development)
short lead = 8 wks (includes cold heading, sand casting and screw machine)
Critical Path-Manufacturing Pre-Schedule 290 days 03/25/03 05/03/04
Preliminary Sourcing (Cost/Supplier) Plan 25 days 03/25/03 04/28/03
Preliminary Manufacturing Plan 25 days 03/25/03 04/28/03
Design for Manufacturability 20 days 04/29/03 05/26/03
Make vs. Buy Analysis 15 days 05/27/03 06/16/03
Finalized Unit Cost Analysis (Eng.) 15 days 06/17/03 07/07/03
Final Sourcing Strategy 10 days 07/08/03 . 07/21103
CAR & Expense Development 30 days 07/08/03 08/18/03
Tooling & Equipment Orders (Long Lead) 70 days 08/19/03 01/24/03
First Article and Other PQP Development 40 days 10/21/03 02/15/03
Order Launch Volume & Safety Stock 50 days 12/02/03 02/09/04
Pilot Build I Product Dis '!Y
Ordering Available
35 days 02/10/00
03/30/04
03/29/04
04/05/04 5 days
Bulk i Ship Production 20 days 04/06/04 05/03/04
long lead items (14 wks) require approved drawings by 8/19/03
short lead items (8 wks) require approved drawings by 10/01/03
50 Critical path
note: the accessories will be categorized with a short lead tooling requirements
Launch Product Style Total Forecast
Phase 1 units Year 1 Year 2 Year 3 Year 4 Year 5
1 Handlesets 2,400 6,000 8,400 10,920 14,280
Sub-Total 2,400 6,000 8,400 10,920 14,280
2 Knob - Passage 1,800 3,600 6,300 8,190 10,710
3 Knob - Privacy 900 1,800 3,150 4,095 5,355
4 Knob - Inactive 300 750 1,050 1,365 1,785
Sub-Total 3,000 6,150 10,500 13,650 17,850
5 Lever - Passage 5,220 10,440 18,270 23,751 31,059
6 Lever - Privacy 2,610 5,220 9,135 11,876 15,530
7 Lever - Inactive 870 2,175 3,045 3,959 5,177
Sub-Total 8,700 17,835 30,450 39,585 51,765
8 Deadbolts 7,500 18,750 26,250 34,125 44,625
Sub-Total 7,500 18,750 26,250 34,125 44,625
9 Door Knockers 900 1,800 3,150 4,095 5,355
10 Door Bells 1,200 2,400 4,200 5,460 7,140
11 Address numbers 900 2,250 3,150 4,095 5,355
12 Surface bolts 600 1,200 2,100 2,730 3,570
13 Pocket Door Mortise 600 1,200 2,100 2,730 3,570
14 Hinges 6,000 13,000 8,400 10,920 14,280
Accessories Sub-Total 10,200 21,850 23,100 30,030 39,270
TOTAL 31,800 70,585 98,700 128,310 167,790
Year Over Year Growth 100% 122% 40% 30% 3l%
sales, volume and cost may not represent updates recently provided for the capital appropriation request model
the model accurately represents the team's estimates moving forward
51 Total sales volume (estimates)
52 Detailed volume projection & scope
ha
nd
le
se
ts
53 Detailed volume projection & scope
de
ad
bo
lt
s
kn
ob
s
54 Detailed volume projection & scope
le
ve
rs
P
oc
ke
t
do
or
s
55 Detailed volume projection & scope
ac
ce
ss
or
ies
French · Craftsman Tuscany
Handleset - Tubular $ 210.00 Handleset - Tubular $ 190.00 Handleset- Tubular $ 190.. 00
Handleset ., Mortise $ 230.00 Handleset - Mortise $ 210.00 Handleset- Mortise $ 210..00
Deadbolts $ 65.00 Deadbolts $ 60. .00 Deadbolts $ 60. .00
Interior Knobs $ 83.00 Interior Knobs $ 75.00 Interior Knobs $ 75.00
Interior L.evers $ 83.00 Interior Levers $ 75.00 Interior Levers $ 75.00
Hinges $ 25.00 Hinges $ 20.00 Hinges $ 20.00
Pocket Door Locks $ 50.00 Pocket Door Locks $ 45.00 Pocket Door Locks $ 45.00
Door Knockers $ 40.00 Door Knockers $ 36.00 Door Knockers $ 36.00
Door Bells $ 22.00 Door Bells $ 21.00 Door Bells $ 21.00
House Numbers $ 19.. 00 House Numbers $ 18.00 House Numbers $ 18. 00
Surface Bolts $ 19.00 Surface Bolts $ 18.00 Surface Bolts $ 18.00
56 Target cost
57 Unit cost analysis
primary assumptions for standard cost
58 Unit cost analysis
59 Opportunity analysis
60 Component plan
61 Component plan
co
mp
on
en
ts
62 Component process flow
63 Component process flow
64 Development requirements
note: a more discipline PQP process may be required to accommodate the casting requirements of this program
sourcing plan includes
a tracking sheet will be used for detail and volume requirements
sourcing will manage information relating to supplier selection,
cost, material, tooling, first article, complete PQP and lead-time
new collection systems will be reviewed in the final plan
65 Component tracking update
provides
insight into
the primary
components
required for
the launch
66 Component information
note: components are being reviewed and designed to accommodate customer ordering and manufacturing
product combines the deadbolt and standard
latch into (1) mechanism
67 Component information
mo
rt
ise
will not be manufactured within BDHHI because
the "engine" requires a recognized name
current schedule restraint does not lend itself to in-
house engineering and manufacture
consists of a knob/lever chassis with spring
housing, separate deadbolt and standard
latch component
68 Component information
TU
BU
LA
R
requires (3)cylinders for door thicknesses
and (2) key styles for Schlage and Kwikset
69 Component information
CY
LIN
DE
R
(6) types of cylinders to support the program
determine whether our manufacturing facilities
will need to pin cylinders
mortise cylinders will be purchased & pinned to order
chassis will be built into the escutcheon and
utilize (2) springs to support knobs and levers
70 Component information
CH
AS
SIS
product will be non-handed
product will be built upon order request
71 Risk factors
/
72 Risk factors
/
73 Risk factors
74 Risk factors
75 standardization
handle assembly
76 standardization
cylinder
77 standardization
latch
78 standardization
strike & front
79 standardization
screw packs
80 standardization
materials
81 Component testing
82 Component testing
83 Component testing
the new layout will support year 1 volumes with 1 shift, 1-2 additional shifts
can be added if necessary
84 Initial finish capability review
all finishes will be developed and applied at the Baldwin facility
capacity/capability analysis determined a new production line is
needed
a new plating line will be required to provide development and
production of oxide finishes
85 Initial finish capability review
space allocation has been assigned
for the restructuring layout and is
under development
86 Initial finish capability review
87 Initial finish capability review
88 Initial finish capability review
89 New in-house finish capability
bronze (silicon & white)
90 New in-house finish capability
tuscan villa (example)
Brass
91 finish capability
zinc
Steel
92 Cast and finish processing (supply chain)
93 Cast and finish processing (supply chain)
industrial capability does not exist; therefore the team is working under
(2) assumptions:
PROCESS SUPPUER LOCATION
SAND CAST Franklin Bronze Pennsylvania
INVESTMENT CAST Franklin Bronze Pennsylvania
DIE CAST
Eversafety
China
STAMPING Eversafety China
POWDER METAL Eversafety China
FINISH (Patina) Baldwin Pennsylvania
MORTISE BOX Pathline China
LATCHES Pathline China
CYUNDERS Pathline China
MACHINE CASTING Franklin Bronze Pennsylvania
PACKAGING Stephen Gould Pennsylvania
SUPPLY BASE PROFILE
94 Preferred supplier & development list
95 Finish tracking
96 Finish tracking
note: the previous component list identifies the finish for each component
note: this is a representative sample of a finish tracking sheet
product development will ensure that this format is refined
*sample swatches will be developed and utilized for process control and development
97 Finish tracking
volume projection 2004-2008 (12 month)
program is (2) phases
volume projection
identifies this objective
Italian Tuscany I Craftsman I French Country Collection
Launch Product Style Combined Forecast Average
Phase 1 Year 1 Year 2 Year 3 Year 4 Year 5 Cost
; Units $ Handlesets 2,400 6,000 8,400 1Q,920 14,280 $ 160.00
Sub-Total 2,400 6,000 8,400 10,920 14,280
Knob - Passage 1,800 3,600 6,300 8,190 10,710 $ 40.00
Knob - Privacy 900 1,800 3,150 4,095 5,355 $ 40.00
Knob - Inactive 300 750 1,050 1,365 1,785 $ 40.00
Sub-Total 3,000 6,150 10,500 13,650 17,850
Lever - Passage 5,220 10,440 18,270 23,751 31,059 $ 40.00
Lever - Privacy 2,610 5,220 9,135 11,876 15,530 $ 40.00
Lever - Inactive 870 2,175 3,045 3;959 5,177 $ 40.00
Sub-Total 8,700 17,835 30,450 39. 85 51,765
Deadbolts 7,500 18,750 26,250 34,125 44,625 $ 24.00
Sub-Total 7,500 18,750 26,250 34,125 44,625
Door Knockers 900 1,800 3.150 4,095 5,355 $ 27.00
Door Bells 1,200 2,400 4,200 5,460 7,140 $ 25.00
Address numbers 900 2,250 3,150 4,095 5,355 $ 12.00
Surface bolts 600 1,200 2,100 2,730 3,570 $ 10.00
Pocket Door Mortise 600 1,200 2,100 2,730 3,570 $ 6.00
Hinges 6,000 13,000 8,400 10,920 14,280 $ 7.00
Accessories Sub-Total 10,200 . 21,850 23,100 30,030 39,270
TOTAL 31,800 70,585 98,700 128,310 167,790
Year Over Year Growth 100% 122% 40% 30% 31%
-
98 Initial capacity review
Phase 2 Product Style Total Forecast Average
Year 1 Year 2 Year 3 Year 4 Year 5 Cost
Units :$
1 Switch plates 540 1,350 1,890 2,457 3,213 $ 6.00 . 2 Door Stops 3,000 - 10,500 13,650 17,850 $ '6.00 3 18" Towel Bar 1,200 2,400 4,200 5,460 7,140 $ 20.00 4 . 24" Towel Bar 1,200 2,400 4,200 5,460 7,140 $ 22.00 5 Towel ring 640 1,600 2,240 2,912 3,808 $ /20.00 6 Toilet Paper Holder 1,200 2,400 4,200 5,460 7,140 $'-: 10.00 7 Cup Holder/Toothbrush 300 600 1,050 1,365 1,785 $ 20_00 8 Cabinet knobs and pulls 3,000 7,500 10,500 13,650 17,850 $ ,·6.00
TOTAL 11,080 18,250 38,780 50,414 65,926
Year Over Year Growth 100% 65% 112% 30% 31'1o
99 Phase 2
Italian Tuscany I Craftsman I French Country Collection - with Accessories Launch Style Combined Forecast Average
Phase 1& 2 Unit Yr.1 Unit Yr.2 Unit Yr.3 Unit Yr.4 . Unit Yr.5 Cost
Handleset 2,400 6,000 8,400 10,920 14,280 $ 160.00
Knob 3,000 6,150 10,500 13,650 17,850 $ 40.00
Lever 8,700 17,835 30,45.0 39,585 51,765 $ 40.00
Deadbolt 7,500 18,750 26,250 34,125 44,625 $ 24.00
Accessories 21,280 40,100 61,880 80,444 105,196 $ 14.07
Total Incremental Increase to Business 42,880 88,835 137.480 178,724 233,716
100 Key assumptions
101 Available capacity
YR.1 = 90/day
yR.2 = 195/day
YR.3 = 300/day
102 Initial capability review
103 Initial capability review
104 Initial capability review
additional mexico operations
2003' Standard Rates
Mexicali Technolock
Direct Labor 4.57 2.86
Burden 11.41 20.78
Overhead 16.4 0
TOTAL 32..38 23.64
* Mexicali· Operation
* Technolock Utilized Grade 1Handleset
105 Operating cost
106 Operating cost
107 Operating cost
there is a wide array of new
processes, materials and operations
108 Capability analysis
109 Cast & Finish process (supply chain) / swot analysis
option 1 supports the
development plan and
program timeline
Strength
One Supplier Responsible for Finishing
Quality, Lead-Time and Cost
Proven Ability to Process & Finish
Low Volume, Attention to Detail
Small Foundries, Competitive Cost
Willingness to Obtain Priority Customer
Weakness
Capital investment for Materials and Staff
Supplier Cost- Overhead
Mexicali Assembly and Pack-Out
Supplier Available Quality Systems
Opportunity
Supplier Quality System Development
Product Consistency- One Supplier
Learning Curve in Mexicali
Threat
Supplier Available Quality System
Supplier Stability - Small Foundries
AcceleratedProcess Development
SCENARIO #1
OPERATION
Sand
Casting
Investment
Casting
Casting Supplier #l Supplier #1
Machining Supplier #1 Supplier #1
Finishing Supplier #1 Supplier #2
·.
Assetnbiy Mexicali Mexicali
Packout Mexicali Mexicali
110 Swot analysis
assumption #1 short term
assumption #2 long term SCENARI0#2
OPERATION Sand Costing Investment Casting
Casting Supplier#! Supplier#!
Machining Mexicali Mexicali
Finishing Mexicali Mexicali
Assembly Mexieali Mexicali
Packout Mexieali Mexicali
Strength
Mexicali Responsible for Quality, Lead-time, Cost
Mexicali Absorption Opportunity
Internal Control Over Finished Goods
Reduced WTP
Supply Chain Simplification
Weakness
New Finish Development Processes
Capital Investment
Resource Availability and Commitment
High Labor, Burden & Overhead Rates
Commitment to Schedule
Opportunity
Product Control and New Process Development
Product Consistency - One Supplier
Lead-Time Reduction
Threats
Business Support and Directive
Maintaining Launch Schedule
111 Swot analysis
112 Cylinder pinning
113 Cylinder pinning
customers require a keyed handleset and deadbolt
product will be keyed alike
door thickness will impact cylinder length requirements
utilizes a 5-pin cylinder providing approximately 4,000 key cut options
114 Cylinder pinning
OPTION 1
115 Cylinder pinning
OPTION 2
cylinder material flow process
116 Cylinder pinning
OPTION 3
117 Sourcing plan
principals have been adopted to select highly capable vendors
118 Supply base profile
Cast supplier (detail sand & investment)
119
Risk factors
MAKE
vs.
BUY
YR 1QTY
YR .2QTY
1
2
3
SAND CAST Buy 5,400 10,800 Franklin Bronze Bronze Craft Birmingham
Bronze
Investment Cast Buy 3,400 6,700 Franklin Bronze Aristocast Impro Industries
Die Cast
Square Spindle -13/8 Buy 24,840 49,680 Star Die B&C TBD
Square Spindle Extension - 13/4 Buy 8,694 17,388 Star Die B&C TBD
Square Spindle Extension- 2 1/4 Buy 3,726 7,452 Star Die B&C TBD
Square Spindle, Mortise ?? Buy 960 1,920 Star Die B&C TBD
Stamping .,_
Cylinder Cap Make 10,860 21,720 Denison Precision TBD
Torque Mortise Buy 960 1,920 Precision ..TBD TBD
Spring Housing Buy 24,840 49,680 Precision TBI) TBD
Mechanis111 Box Buy 2,880 5,760 Precision TBD TBD
Retaining Ring/Clip Buy 34,740 69.480 PPM TBD TBD
Washer Buy 53,040 106,080 Precision TBD TBD
Front Make 19,252 38,504 Denison Precision TBD
Strike Make 19,252 38,504 Denison Precision TBD
Powder Metal
Pinion, HS Buy 1,440 2,880 TBD TBD TBD
Rock, HS Buy 1,440 2,880 TBD TBD TBD
Finish (Patina, Pewter, Weathered
Supplier Vertically integrated Buy Franklin Bronze Bronze Craft Birmingham
Bronze
Supplier- Finish Only Buy Quaker Palm Springs Plat! Bronze\UCJY
OEM Components ..
Mortise Box Buy 1,200 2,400 AccUNte Baldwin
Cylinder I Key Buy - - Ilco GMS TBD
Latches Buy 9,000 17,000 Tong Lung Franklin Brass TBD
Machine Casting Buy 8,800 17,500
Franklin Bronze Bronze Craft Birmingham
Bronze
Make vs. Buy list
120
initial make vs buy analysis was generated
based on the following principals
Make vs. buy
121
low volume, high mix
no sand and investment cast operation
new finish requirements and development
Make vs. buy
122
Make vs. buy
123
NEW COMPONENTS
MAKE BUY YR 1 QTY YR 2 QTY #1 SUPPLIER #2- SUPPLIER
SAND CAST Buy
48,000
96,000
Franklin Bronze
Trimco
INVESTMENT CAST Buy
96,000
192,000
Franklin Bronze
Trimco
DIE CAST
Square Spindle Buy
15,000
30,000 New Forge
B&C
STAMPING
Spring Retainer, Knob Buy 7,800 15,600 Synergy Eversafety
Lever Stop Buy 18,060 36,120 Synergy Eversafety
Bushing, Flat Buy 26,820 53,640 Synergy Eversafety
Bridge Buy 23,460 46,920 Synergy Eversafety
Bushing, Bridge Buy 30,596 61,192 Synergy Eversafety
Bushing, Knob/Lever Buy 23,824 47,648 Synergy Eversafety
Spring, Handleset Knob Buy 576 1,152 Synergy Eversafety
Spring, Knob Buy 5,976 11,952 Synergy Eversafety
Spring, Lever Buy 17,100 34,200 Synergy Eversafety
Mounting Plate, DB Buy 8,460 16,920 Synergy Eversafety
Spring, DB Detent Buy 8,460 16,920 Synergy Eversafety
Cam, DB Detent Buy 8,460 16,920 Synergy Eversafety
Spindle, Handleset Buy 960 1,920 Synergy Eversafety
Spindle, Passage Buy
6,420 12,840 Synergy Eversafety
Spindle, Privacy 3,510 7,020 Synergy Eversafety
Retainer, Push Buy 33,360 66,720 Synergy Eversafety
Exterior Screw Post Buy 50,720 101,440 Synergy Eversafety
Interior Screw Post Buy 50,720 101,440 Synergy Eversafety
Bushing Retainer Buy 23,460 46,920 Synergy Eversafety
MACHINE CASTING Buy 144,000 288,000 Franklin Bronze Baldwin
Make vs. Buy component list
124
Cast component process flow
125
Development requirements
126
Sourcing plan includes:
Development requirements
127
Engineering analysis
128
Designs require
Engineering analysis
129
engineering will focus on eliminating
Assembly plan
130
Assembly plan
131
product team will review opportunities:
,.,
Assembly & pack - out
132
,.,
Assembly & pack - out
133
OPERATING RATES
Engineering sample lot plan
134
Bulk production plan
135
Engineering testing
136
Tool and equipment cost estimate
137
equipment count 13
Total cost
138
COST TOTALS
capital budget $742,650
program expense $155,000
total investment $897,650
tool count 120<
Logistics plan
139
Sku count detail
140
SKU breakdown
Total SKU's without
cylinders and
keying = 1,206
ORDER MANAGEMENT
Internal process supply chain
141
order management supply planning opertation distribution
ORDER MANAGEMENT
Internal process supply chain
142
Supply planning
143
Supply planning
144
guiding principles
Italian Tuscany I Craftsman I French Country Collection - with Accessories
Phase 1 UnitYr.1 Unit Yr.2 Unit Yr.3 Unit Yr.4 Unit Yr.5
Total $ 176,109 $ 384,089 $ 544,573 $ 707,945 $ 877,049
Proposed estimated inventory dollars
145
Operations management strategy
146
the following elements will be developed
to establish systems and procedures for
reliable and repeatable production
processes
distribution
147
distribution
148
distribution
149
RISK FACTORs
Quality plan
150
internal and external vendors
will use:
Quality plan
151
procedures include these elements to
be completed prior to product launch
Explicit Customer CTQ's Implicit Customer CTQ's Features to Meet Voice of Customer
Solid Feel Tubular/Mortise on a standard chassis Introduce Bronze Alloys
Architectural Style New Oxidized Finishes Eliminate Lever & Thumbpiece Wobble
Customer Service Packaging - Hold 15-20 1b Specification - Grade 2- 3 requirements
Functionality Utilize Current Thumbpiece Minimal Axial Play on Levers & Knobs
Size & Weight to Exceed Current Designs
Level 2 research conducted for resolution
Six sigma critical to quality
152
supplier part
certification
process first
article
inspection
Tool quality
153
established during the
development of engineering
drawings
Tool quality
154
new product validation
part qualification
process - combination
of tools listed
reviewed during
design review and
tooling development
capable within 1.0-1.33 cpk (approximately 4 sigma where applicable)
Tool quality
155
process capability analysis
supplier to display control of ctq dimensions
supplier to provide control
plan including inspection,
data collection points and key
process parameters
Tool quality
156
control plan
supplier to generate
final audit to include
elements discussed
during design
Tool quality
157
final audit plan
Manufacturing feasibility statement
158
Manufacturing feasibility statement
159
Manufacturing feasibility statement
160
Manufacturing feasibility statement
161
critical areas must be closely
managed to meet the schedule
Plant requirements
162
space allocation
Plant requirements
163
short-term
Plant requirements
164
long-term
Plant requirements
165
test fixture
plan will
include
corporate &
manufacturing
resource
needs
Resource assessment
166
Service plan
167
Service parts
168
Warranty plan
169
CUSTOMER SERVICE
November 2012
Max Ruckman, Black & Decker HHI
Bill O’Connor, Source, Inc.
Andy Schechterman, MS, PHD
Michael Eckersley, MFA, PHD
Bruce Eckman
FRCH
Luxury Brand
Business
Development
Case Study Part 3 A
www.maxruckman.com
170