Engineering change management webinar april 2013

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  • 1. Engineering ChangeManagement:The ProcessJohn M. Cachatjmc@peproso.com Copyright John Cachat

2. About John M. Cachat Driving Business Performance Helping companies align their business and technology Focus on people, process, and then the technology Subject matter expert on business process management On-going research into next generation of technology for enterprisesystems 28 years experience in enterprise systems USAF Research Project (1985) Founder of enterprise quality software company (1988) Chair of ASQ technical committee on computerizing quality (1992) Trusted advisor to global organizations, government agencies,and professional groupshttp://www.linkedin.com/in/johncachat2 Copyright John Cachat 3. HousekeepingPhones are mutedUse the questionblock for questions Copy of presentationavailable upon request3 Copyright John Cachat 4. Todays Discussion Why Now? Engineering Change Management Process Identifying & Eliminating Waste In The Process The Role of Software Summary Free Proof of Concept Offer Q & A4 Copyright John Cachat 5. Why Now? As manufacturing firms increase their rates ofnew product introduction, the management ofengineering change has become a major andongoing challenge. The need for rapid engineering change is anrequirement of a rapid rate of new productintroduction and short product life cycles.5 Copyright John Cachat 6. Engineering Change isMore Critical Than Ever? Engineering change is often poorly definedand poorly executed Implementation of Engineering changes areoften disruptive and costly6 Copyright John Cachat 7. Engineering ChangeOrganizational Pressures7 Copyright John Cachat 8. 8Engineering Change Complexity Single Product with Multiple Change Requests Grouping multiple changes into a single revision change Single Change Request Against Multiple Products This change is applied to 10 different parts Single Product that Affects Multiple Products This part is used in 5 other assemblies (configurationmanagement) Copyright John Cachat 9. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification9 Copyright John Cachat 10. Change Request Source Customers Internal Suppliers Deviation/Waiver/Permanent Should you or shouldnt you do it? Review impact & related costs Determine risk Other parts, processes, etc. Who gets to vote? create some rules10 Copyright John Cachat 11. Change RequestShould you or shouldnt you? Determine risk Safety issue? Cost versus the right thing to do Short term versus long term Stop shipments / manufacturingNOW?11 Copyright John Cachat 12. Change RequestShould you or shouldnt you? Review impact & related costs Product Life Cycle stage Impact on related parts Current inventory (shipped,warehouse, internal, & atsupplier) Impact on reputation12 Copyright John Cachat 13. Who Needs to Vote?(Create Some Rules) Critical Financial impact of $XXXX or greater Affects product in the field Safety related issue**A product recall is always a Class I change.13 Copyright John Cachat 14. Who Needs to Vote?(Create Some Rules) Major Affects the service organization, inventory oroutside organization Financial impact of under $XXXX14 Copyright John Cachat 15. Who Needs to Vote?(Create Some Rules) Minor Includes pre-production products, accountingfunctions, clarifications, typo corrections andchanges that do not affect the form, fit, orfunction of the product or part Do not affect inventory Outside the organization Financial impact less than $XXXX Does not affect field service15 Copyright John Cachat 16. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification16 Copyright John Cachat 17. Change Notice Who needs to know about the change and whatdo they have to do in order to prepare for thechange? Engineering Manufacturing Quality Purchasing Marketing (packaging) Customers Suppliers What needs to be updated?17 Copyright John Cachat 18. Change Notice What is impacted? Already shipped In the warehouse In production At the supplier What needs to be updated?18 Copyright John Cachat 19. Change NoticeWhat Needs to be Updated?19PricingPurchase Order ReviewInspection Requirements, GaugingToolingDocumentation (Procedures, WorkInstructions)Blueprints, drawingsEmployee TrainingCustomer Approval?(Design Authority)Physical Part CountsBOM ChangeManufacturing RoutingDFMEAPFMEAControl PlanSpecial, Critical, Key RequirementsMaterial Specifications Copyright John Cachat 20. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification20 Copyright John Cachat 21. Change Order Everything is ready to go When do we start? Immediately By Date By Inventory/production schedule Existing parts (rework, scrap, use as is) New parts21 Copyright John Cachat 22. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification22 Copyright John Cachat 23. Change Verification % of changes that were correct Did we get what we expected? Cost reduction Quality improvement If yes, great and review other parts that wecan apply the same change to (look across andread across) If no, start over23 Copyright John Cachat 24. Automation Ideas Small company versus big company The current state of the art inmost companies include MS Project& MS Excel These tools are personalproductivity tools not enterprisebusiness systems24 Copyright John Cachat 25. Automation Ideas Look at the product lifecycle and look for gaps Process view, not department view, not adocument view Start with a process flowchart25 Copyright John Cachat 26. 26Engineering Change ProcessWhat it actually isWhat you think it isWhat it should be Copyright John Cachat 27. Big Company ChallengeWhere does Engineering Change Belong?27Tie everything togetherwith business workflow Copyright John Cachat 28. How Do I want Engineering Change to Work?28 Copyright John Cachat 29. Your Form, Not Their Screen29 Little, to no, trainingrequired No need to changeexistingdocumentation Use Email as the userinterface (and cellphones) Make their job easier Copyright John Cachat 30. Engineering Change Process3Software2Process1People30 Copyright John Cachat 31. Benefits / Value Increase Revenue Develop new markets and gain market share by collaborating moredirectly with the customer and delivering customer-specific goodsmore quickly Competitive advantage Faster time to market Reduce design cycle times and product costs through collaboration Lower costs with more efficient use of resources in productdevelopment Reduce delivery lead times Compliance and risk mitigation Rock solid process with robust audit trail31 Copyright John Cachat 32. Benefits / Value Reduce Inventory Waste Stop making parts to the wrong revision Reduce component obsolescence Faster and more effective change management with Suppliers Improve Decision Making Analysis / Management Review Change Verification feeds information back into Engineering View a single, consistent record of figures and analyticsrelated change management Improve financial analysis by capturing engineering changecosts and cycle times32 Copyright John Cachat 33. Increase Profit on New Products33INCREASEPROFIT ONNEW PRODUCTS020406080100120Design Proto Pre-Prod ProductionProgram AProgram BNumber of Engineering Changes by Product Stage Copyright John Cachat 34. Increase Profit on New Products34INCREASEPROFIT ONNEW PRODUCTSTurn Around Time (in Days)05101520253035ChangeRequestChange Notice Change Order ChangeVerificationProgram AProgram B Copyright John Cachat 35. 35SummaryEngineering Change Management There are 4 steps not one Engage the people Single process is critical Reduce variation (Six Sigma) Eliminate waste (Lean) Technology Consolidate stand alone tools Tie together with business workflow Use existing enterprise software data Copyright John Cachat 36. 36SummaryEngineering Change Management This is a HUGE opportunityfor every organizationMore revenueLower costsLower riskHigher compliance When do you addpeople to the process? Copyright John Cachat 37. About UsJohn Cachatjmc@peproso.comContactProven expertise in trainingand document managementsystemsRapid SolutionDevelopment processServicesAssess Current StatusDevelop Short and LongTerm PlansDevelop Specific Solutionsto Your ProblemsAssist in ROI Analysis37 Copyright John Cachat 38. FREE Proof of Concept38 Copyright John CachatWeWe 39. Copyright John Cachat&Contact:John Cachatjmc@peproso.comCopy of Presentation&Request a DemoVisit:http://peproso.com/webinarsFuture WebinarsEngineering Change Management: The Process39