TU-C2020 OPERATIONS MANAGEMENT (5 cr)

Transcription

1 TU-C2020 OPERATIONS MANAGEMENT (5 cr) Product and Service Life Cycles and Operations Management Timo Seppälä

2 What is Product and Service Lifecycle Management P(S)LM? PLM is the business activity of managing a company s products and services all the way across the lifecycle in the most effective way. PLM is a joined-up paradigm. It joins up many previously separate and independent processes, disciplines, functions and applications each of which, though addressing the same product, had its own vocabulary, rules, cultures and language (John Stark, 2005)

3 What is Product and Service Lifecycle Management P(S)LM? Source:

4 External Involvement/ Number of Users P(S)LM Evolution Product and Service Lifecycle Management Requirements Management Project Management Product Management Sourcing Supplier Relationship Management Process Integration across Value Chains Full Lifecycle support ICT Systems support CAD Vaulting PDM CAD Vaulting CAD file handling 2D & 3D Viewing / Markup Simple Change Management PLM Product Data Management Bill of Material Engineering Change CAD Vaulting Document Management CAD Integrations P(S)LM ICT Systems Integrations (ERP) Process Coverage/Functionality

5 Product Life Cycle Management The Toyota Way PLM Plan, Collaborate High Utilize Rigorous Standardization to Reduce Variation and Create Flexibility and Predictable Outcomes Cost of change Establish Customer- Defined Value to Separate Value-Added from Waste PDM Define ERP Execute Front Load the Product Development Process to Explore Alternatives Thoroughly Low Fully Integrate Suppliers into the Product Development System Create Leveled Product Development Process Flow Build in Learning and Continuous Improvement Adapt Technology to Fit Your People and Process Ability to effect design Time Concept Design Manufacturing In Service

6 TU-C2020 OPERATIONS MANAGEMENT Product and Service Life Cycle Management / Economics Perspective

7 Pieces Volumes: Manufacturing and service life Year Manufacturing life (Pieces sold annually) Service life (Pieces serviced annually) ELINKEINOELÄMÄN TUTKIMUSLAITOS THE RESEARCH INSTITUTE OF THE FINNISH ECONOMY 7

8 Share of Total Value Adeed The distribution of the total added value 100% 90% 80% 70% 60% Services 54% 50% 40% 30% 20% Manufacturing 46% 10% 0% e 2016e 2018e 2020e ELINKEINOELÄMÄN TUTKIMUSLAITOS THE RESEARCH INSTITUTE OF THE FINNISH ECONOMY 8 Year

9 Distribution of added value from manufacturing 100% 100% 90% 80% 70% 60% 21% 3% 1% 37% Distribution Logistics Headquarter 90% 80% 70% 60% 23% 5% 9% 10% Other Asia 50% 40% 30% 20% 21% Manufacturing 1 tier Suppliers Suppliers of material inputs 50% 40% 30% 20% 53% North America Eu 27 Finland 10% 17% 10% 0% 0% The share of value added from manufacturing is 46% of the total value added ELINKEINOELÄMÄN TUTKIMUSLAITOS THE RESEARCH INSTITUTE OF THE FINNISH ECONOMY 9

10 Distribution of added value from services 100% 100% 90% 80% 38% Distribution 90% 80% 33% 70% 60% 50% 40% 30% 20% 6% 12% 0% 33% Logistics Headquarter Manufacturing 1 tier Suppliers Suppliers of material inputs 70% 60% 50% 40% 30% 20% 2% 22% 30% Other Asia North America Eu 27 Finland 10% 0% 11% 10% 0% 13% The share of value added from services is 54% of the total value added ELINKEINOELÄMÄN TUTKIMUSLAITOS THE RESEARCH INSTITUTE OF THE FINNISH ECONOMY 10

11 TU-C2020 OPERATIONS MANAGEMENT Product and Service Life Cycle Management / Operations Process Perspective

12 Product Program Management The Elcoteq Way

13 Product Program Management The Elcoteq Way

14 Product Program Management The Elcoteq Way

15 Product Program Management The Elcoteq Way Program Manager 1 Project Engineer & Build Mgr Program Assistant R&D Project Manager 1 Regulatory Approvals & field testing Mgr 1 NPI Projects Mgr 1 Sourcing Project Mgr 1 Quality Mgr 1 After Market Service Support Project 0-1 Logistics Project Mgr 0-1 IM Project Manager 0-1 Chief Engineer 1 Technical Support 5 NPI Commodity Managers 5-10 Logistics Development 1-2 Development Team 2-5 Electronics 6-12 Approval Team 2 Tester Development 2-5 Quality Engineer 1 Testing, (HW) 6-12 Field test team Line Design 1-3 SW 5-40 Mechanics 2-6 Quality 1 Documentation 1-2 Pre Production & Proto Materials 12 Target Factory 1 Team Target Factory Documentation 1

16 TU-C2020 OPERATIONS MANAGEMENT (5 cr) Product and Service Life Cycle Management / Process View

17 PLM Capabilities Sales & Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service Concept Generation Product Development Process Concept Screening Preliminary Design Evaluation and Improvement Prototyping and Final Design Source: Slack, 2011 p. 72

18 Sales & Marketing Strategic product and service portfolio management Market analytics and business opportunity analysis New Sales and Opportunity Screening Customer relationship, Account and new Sales management Program and project management

19 P(S)LM Capabilities Sales & Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

20 Planning Marketing Identify market and business opportunities and segments Design Product platforms and new technologies Manufacturing Identify production constraints Set supply chain strategies for new products & service platforms and technologies

21 Supplier Management Add New Supplier Development Project Product Quality Plans Supplier Development Supplier project members sourcing Supplier parts Supplier Supplier Supplier Supplier selection Supplier Supplier Manage Supplier Information Monitor Supplier Remove Existing Supplier

22 The Sourcing Process Create RFQ Review RFQ Supplier Process Review Response Send RFQ to Supplier Enter Quotation Data Review Quotation Submit Quotation Award Business Cancel RFQ

23 PLM Capabilities Sales & Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

24 Concept Development Marketing Collect customer needs Check requirement backlog Identify competing products Design Feasibility studies Industrial design concepts Experimental prototypes Manufacturing Estimate manufacturing costs Production feasibility simulate

25 PLM Capabilities Sales & Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

26 System Level Design Marketing Plan for product options Set target sales price points Design Generate Product architectures Define subsystems and interfaces Refine industrial design Manufacturing Identify supplier key components Make / buy analysis Final assembly scheme Target manufacturing costs

27 PLM Capabilities Sales & Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

28 Detail Design Marketing Marketing plan Design Detailed product structure (EBOM) Material selections Complete industrial design Manufacturing Define production processes Design tooling Define Quality Assurance process Long lead time tools & items

29 Item, Materials, Product and Service parts Management The very basis unit for P(S)LM is the item Items are used to create physical product structures, Engineering Bill of Materials

30 Part Definition and Part Classification Type Hierarchy Attributes Outdoor Bolt for the US Market Part Mechanical Part Bolt Classification Tree Market US Market EU Market Usage Outdoor Usage Indoor Usage Make / Buy Cost Weight Length Diameter Attributes US Marketing Text US Pricing EU Marketing Text EU Pricing Outdoor Instructions Indoor Instructions Make / Buy Cost Weight Length Diameter US Marketing Text US Pricing Outdoor Instructions

31 Sourcing / Component Engineering Component ID: N Description: Control Unit State: Release Manufacturer Equivalent Part MEP ID: N Description: Control Unit State: Release MFG CODE: E Info Text: SINAMICS G120 CU240S Part Specification Manufacturin g Responsibilit y Data Sheet Drawing Company Name: Siemens ID: M D CAD model for DMU and fitting design

32 Commodity components Part reuse SW subsystem ECAD subsystem MCAD subsystem Product Structure Definition Authoring tools PLM SYSTEM GPS Complete Front Cover Back Cover Integration / Interface code.ex e Released Parts PCB Software New Part Introductions Display Build structure Software Label Packaging Material

33 Manufacturers and Product Structure Product Syringe Supplier A Needle Needle A Needle C Supplier B Plunger Plunger B Plunger C Supplier C Cylinder Cylinder B Cylinder C Syringe 1 Needle A Plunger B Cylinder C Syringe 2 Needle C Plunger C Cylinder B 33

34 Bill of Material in Apparel

35 Manufacturing Engineering Design engineering creates the product structure Process engineering creates the process structure and: Allocates product structure to process structure Allocates resources to process structure based on manufacturing plant

36 Product Definition Product Mechanical BOM Formula Specificatio n Productio n Process Production Line Part Syringe Part Needle Part Cyclinder Ingredient NaOH Ingredient BODE Ingredient HA Operation BULK Operation Xxx Process Step NaOH Process Step Stabilize Equipme nt Kärl Equipme 60L nt Blender Equipme nt Mixer Mechanical BOM Formula BOM Process Step yyy Production Process Production Line Product Bulk Stabilizing xxx A 40,60 20 C 25 C 2h X 36

37 Materials Compliance View of a Product

38 PLM Capabilities Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

39 Testing & Refinement Marketing Promotion and launch materials Facilitate field testing Design Reliability testing Performance testing Regulatory approvals Design changes Manufacturing Supplier ramp-up Refine fabrication and assembly processes Refine Quality Assurance processes

40 PLM and Systems Development V-model 1. Define the Customer need 2. Derive product specifications from customer need Customer Requireme nts Product Specifications UAT Validati on System testing 3. Define product architecture and manufacturing features Product Architect ure Qualificati on Test cases Test runs 4. BOM definition 5. Verification and validation with test cases and test runs BOM Management Part Development Unit testing

41 PLM Capabilities Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

42 Production Ramp-up Marketing Place early production with key customers Design Evaluate early production output Manufacturing Begin operation of entire production system

43 Change Management ECR ECO MCO Item management MECO Issue DCR Product management EC Requirem ent Feature ECR ECO MCO MECO DCR EC Engineering Change Request Engineering Change Order Manufacturing Change Order Manufacturing Engineering Ch Deviation Change Request Engineering Change

44 PLM Capabilities Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

45 SCOR 5 distinct management processes of the Firm Source:

46 Visibility through Enterprise resource planning (ERP) Three time horizons of Plan Long term Providing strategic resources and capacity to meet long-term demand Choice of strategic locations depending on the markets Development and utilization of production process technology Long term planning with supply Medium term Matching supply with demand Medium term planning with supply Short term Scheduling of resources Tracking resource usage & status and labor utilization Tracking customer/production orders and materials usage Managing exceptions Short term scheduling with supply 46

47 Enterprise resource planning (ERP) Three time horizons of Plan Resource planning Sales & Oper. planning Demand management Master production scheduling Front end: The planning task Detailed capacity planning Detailed material planning Materialand capacity plans Engine: The scheduling task Shop-floor systems Supplier systems Backend: The execution task 47

48 Enterprise resource planning (ERP) Enterprise resource planning (ERP) Enterprise resource planning (ERP) Three time horizons of Plan Resource planning Sales & Oper. planning Demand management Resource planning Sales & Oper. planning Demand management Resource planning Sales & Oper. planning Demand management Detailed capacity planning Master production scheduling Detailed material planning Material and capacity plans Front end : Theplanning task Engine : Thescheduling task Detailed capacity planning Master production scheduling Detailed material planning Material and capacity plans Front end : Theplanning task Engine : Thescheduling task Detailed capacity planning Master production scheduling Detailed material planning Material and capacity plans Front end : Theplanning task Engine : Thescheduling task Shop-floor systems Supplier systems Backend: Theexecution task Shop-floor systems Supplier systems Backend: Theexecution task Shop-floor systems Supplier systems Backend: Theexecution task One firm versus multiple firms 48

49 Make Make-to-stock Serial manufacturing no engineering Assemble-to-order Some engineering may be required Make-to-order Bit more engineering may be required Engineer to Order most engineering work takes place in delivery projects

50 Case: Engineer to Order Requirements Product Lines Models Products Product architecture: - Features - Options Product Configurator Product Configurat ion Deliveries EBOM Product Configurat ion Rules Parts Product Configurat ion EBOM EBOM

51 PLM Capabilities Marketing Product Development Process Planning Concept Development System Level Design Detail Design Testing & Refinement Production Ramp-up Plan / Source / Make / Deliver / Enable After Sales Service

52 After Sales Service Service operations are based on installed base For manufacturing company service typically represents large portion of business. Some examples, % of sales in 2013: Kone 46% Konecranes 42% Outotec 26% Wärtsilä 40% Service typically has higher margin than CAPEX Service vs CAPEX: Service products can be sold separately or together with CAPEX products Some companies see that there is just service, CAPEX is irrelevant

53 After Sales Service Spare parts are the most common service business Spare parts available for customers: Spare Parts Spare Part Kits Spare Part Sets Spare Part Assemblies Warranty initially ties customer to OEM Ease of operation keeps the customer after warranty period

54 After Sales Service Service Technical services Upgrades Maintenance contracts Operate & Maintain / Enterprise Asset Management OEM operates delivered products for customer All spare part and technical services through OEM Example Konecranes 2013: Maintenance contract for items, value 178,2 M 3993 service technicians, total 6151