Systems Implementation V2

Information Systems Analysis:
I f ti S t A l i
Gaps and Solutions

-for a global manufacturing and
development operation
operation,
headquartered in U.S.

- Patrick Neyman

September 3,
2010

Objective
• Regain global market and quality leadership in market sector by
increasing manufacturing velocity and the speed of introduction of
innovative products and while reducing operating cost

U.S. market pull Asia market pull

• Triad is a imprudent for one organizational philosophy, but can be
tailored for respecti e market p ll with proper priorit balancing
respective pull, ith priority

Information is Patrick Neyman Confidential & Proprietary page 2 /
Do Not Reproduce or Distribute - Patrick Neyman

Status: summation of consensus of multiple functions in company A
• Interdepartmental information sharing
– Market Research is not actively tailored to capabilities
• Consultation with development and manufacturing not practiced
– Development projects are “thrown over the wall at Design Review completion
thrown wall”
– Functional Roles and Responsibilities unclear and inconsistent
• Each product line has different, unpublished methods
– Inconsistent output to QC and Document Control
p
• Global information sharing
– Inadequate amount of global hands-on
• We expect solution by email, with an occasional phone call
• We have never/rarely worked together across the ocean
– US division seen as disorganized and disconnected
• We are looked-to for leadership, but provide mostly complaint
• Leaders (appropriate engineers) busy with activities
( pp p g ) y
• We throw projects over the wall, and expect results thrown back
• Defensive Posture
– Accountability is feared – risk taking is avoided
– Blame game dominates in a Cover-Your-Self environment


Implications of Current Status
• Cooperation across functional areas limited to firefighting
• Over time, global roles become segregated

• Voice of the market weak in design phase
• Design for manufacturing not regularly practiced
• Voice of the customer not maintained throughout the product cycle

• Mistakes get repeated indefinitely
• Engineering resources spent for customer complaints

• Gaps are filled only when the consequence is p
p y q perceived as a threat
• Ignored gaps cause covert incremental problems

• We miss the advantages of our differences


Results of Current Status
• Global advantage is reduced, even to a global detriment
• Product time to market is increased
• Market applicability of product lines is reduced
• Innovation opportunities are missed

• We no longer shape the market
• We have become the market followers

• Competitors beat us to Market
• Competitors g
p gain dominance in Innovation

• Lost market share and $$$


Solution
• Information Center (simplified model):
– Customized, stakeholder-driven
– Needs- and capabilities-based
– Complex Algorithm, Simple Metrics

• Functional Teams:
– Coordinate Product
– Supply the Information Center

Product C
Product B
Product A

• Chartered Cross-Functional Analytical Study Team:

Lessons of the Discontinued Business Team Model
summation of consensus of multiple functions in company A

• Advantages:
– Timely and effective execution
– Inherent APQP process
– Business Teams (BTs) generate excitement in the members
– Cross-functional cooperation and coordination
• R d
Reduced th silo effect
d the il ff t
• Derailers:
– Stakeholders outside the business team felt left-out of decisions
critical to their roles
– Experienced Engineers left out of business-level authority,
resulting in an important, ignored resource
– Key personnel not regularly updated on progress and decisions
– Overseas stakeholders left out of loop
– Inability to influence allocation of resources necessary for the
business
b i

Implementation
• C t F
Create Functional T
ti l Teams to counter Silo Eff t of Business Unit structure
t t Sil Effect f B i U it t t
• Create Chartered Team responsible for achieving objective
– Cross-functional analytical study team
• Reports results to Leadership team for decisions

• Understand functional and business input needs
– Managers identify top 3 improvement needs
– Key personnel rank and qualify:
• Input needs from their contributors
• Output needs of their stakeholders
• Analyze Input and Output
– Model information and decision flow
– Identify the partnerships, correlations and gaps
– D
Develop t ki metrics and t
l tracking ti d translation centers
l ti t
• Make data simple and useful
– Institute data and metric simplification algorithms
– Involve stakeholders in development of analysis and presentation methods
– Implement 3 key metrics for manager’s toolbox
manager s
– Implement 3 key metrics for key personnel’s self-evaluation
• Output to ALL stakeholders, globally
• Training programs
• Recognition and Rewards


Benefits
• Better-informed Risk-Benefit assessment
• Improved Resource Allocation tracking

• Personnel feel like vital team members
• Entire Division focused on business need

• Development and Manufacturing tailored to Market Pull
• Manufacturing capabilities influential in development phase

• Improved Functional Cooperation and Understanding
• Improved Global Cooperation
p p

• More efficient use of invested capital
• Increased manufacturing velocity


Results of Improved Information Flow
• Global advantage is leveraged

• P d t time to market is decreased
Product ti t k ti d d
• Market applicability of product lines is improved
• More innovation opportunities are identified

• We become the market leaders
• We become the innovation leaders

• Market share is increased
• Return on Invested Capital is increased


Next Step Thoughts – Layers of Systems
• Make global SAP systems viewable globally
– Cannot track parts or materials or make correlations globally
• “Electronic SMO” format so that have:
– Complete traceability from order to ship and beyond
– Able to pull up all data at any step (data attached)
– Sign-offs and accountability for UL, Qual, etc.
– System as hashed out i Q lit Improvement Initiative designed
S t h h d t in Quality I t I iti ti d i d
and implemented by Pat Neyman
• Up-to-date SOP systems
– R d and U d t d affords chain of responsibility
Read d Understood ff d h i f ibilit
• Training systems for certification and re-certification
• Robust systems for controlled documents
y
– SMO, SCD excel-based reservation system problematic
• Re-staff equipment group to afford final output calibration
and regular round-robin
g


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