agile & demantra preso 3.feb
DESCRIPTION
Presentation of Agile PLM and Demantra Demand Management updates at Oracle Direct Selling Summit 9.Feb.11TRANSCRIPT
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Oracle Direct Selling SummitFebruary 10, 2010
Brian Hicks Director, Forecast & PLM
USANA Health Sciences, Inc.
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Agenda• Agile Update – Latest measures of success for Product Collaboration,
Product Quality Management, and Product Portfolio Management• Agile Direction – Product Governance & Compliance, Recipe &
Material Workspace• Demantra Update – Latest measures of success and learning
Enterprise
Value Chain
SuppliersSuppliers
Artwork HousesArtwork Houses
Outsourced Partners
Outsourced Partners
CustomersCustomers Regulatory Bodies
Regulatory Bodies
Testing FacilitiesTesting
Facilities
Excel
LIMS
MESERP SCMERP
Quark Adobe
MarketingMarketing
Sourcing ManagerSourcing Manager
QualityQualityProduct
DevelopersProduct
Developers
AnalystAnalyst
EngineersEngineers
Specs
Test Data
Logos Ideas
Site Recipe MES
ERP
Costs
LIMS
Complaints
FormulationFIN
Compliance DocumentsHCM
Concept Briefs
CRM
HACCPSample
Project Manager
Project
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Tips For Accelerating Product Innovation and Maximizing Product Profitability
PNS
Oracle ERP
Product Approval ProcessAccounting, Planning, Purchasing, Project
Management, Finance, Shipping, Forecast
Odyssey OM
Regulatory Requirements
Network Drive
Network Drive
Regulatory ReviewMarket RequirementsMarket Restrictions
Creative ServicePublications
Lables/Packaging
Sales Tools
Online Services
Creative Services
Product ChangeNPI
RevisionsFormula Change
RequestorJira
Tips For Accelerating Product Innovation and Maximizing Product Profitability
The Product Development Processes
Quality Events & Actions Deviations
CAPA’sAudits
Document ControlProduct Specs
Manufacturing SpecsBatch Production Records
SOP’s
The Red Folder
The Quality Processes
Regulatory Process
R&D DEVELOPMENT PROCESS
ELC Process
MARKETING COPY PROCESS
The Bottom Line
• Departmental Disconnect
• Lack of One Record
• Processes are not integrated
• Stacks of Paper = Unfriendly User Interface
Agile Product Lifecycle
Management
A central repository for all information, processes, and decisions related to a given
product lifecycle. Including parts, documents,
changes, and quality actions
Agile PPM - Implemented•Portfolio Management•Program/Project
Management•Project Costing•Resource Management•Issues and Action items•Deliverables Authorization
and Tracking
Agile PC – Implemented•Product Master•AML/ASL•Formula Management•Change Control
Agile RMW – Desired• Formulations• Recipes• Materials/Resources• Batch Production Records• Integrated to Product Master
Agile PG&C – Budgeted•Manage market regulations•Maintain ingredient
specification•Integrated to product master•Product compliance tracking
Agile PQM – Implemented•Manage Deviations, OOS,
NCM’s processes•Manage CAPA’s, root cause
analysis•Document management and
control plans•Integrated to product master
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Tips For Accelerating Product Innovation and Maximizing Product Profitability
• The number of product changes increase by 94.1% from 2008 to 2010 while the average completion time of the changes decreased by 31.7%
• During the same time period the number of Change Analyst’s responsible for managing the product changes decrease by one FTE.
Tips For Accelerating Product Innovation and Maximizing Product Profitability
• Agile Product Collaboration has enabled USANA to improve productivity by completing more product changes in less time with less resources.
Tips For Accelerating Product Innovation and Maximizing Product Profitability
• Pre - Agile, USANA averaged over 100 Deviations per month; current average ≈ 37 per month over last three months; a decrease of 63.0%
• The average time to complete a Quality Event has decreased from over 35 days to < 14 days; a decrease of 60.0%
Tips For Accelerating Product Innovation and Maximizing Product Profitability
• Agile Product Quality Management has enabled USANA to improve productivity by eliminating duplicate deviations and fix problems as soon as they emerge.
Tips For Accelerating Product Innovation and Maximizing Product Profitability
• Agile Product Portfolio Management has not been used as designed.
• USANA’s fascination with email, spreadsheets has manual processes has slowed our adoption to electronic tools in some areas of the company.
• Currently we are in the process of simplifying setup and configuration of PPM
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Agenda• Agile Update – Latest measures
of success for Product Collaboration, Product Quality Management, and Product Portfolio Management
• Agile Direction – Product Governance & Compliance, Recipe & Material Workspace
• Demantra Update – Latest measures of success and learning
Agile Product Lifecycle
Management
A central repository for all information, processes, and decisions related to a given
product lifecycle. Including parts, documents,
changes, and quality actions
Agile PPM - Implemented•Portfolio Management•Program/Project
Management•Project Costing•Resource Management•Issues and Action items•Deliverables Authorization
and Tracking
Agile PC – Implemented•Product Master•AML/ASL•Formula Management•Change Control
Agile RMW – Desired• Formulations• Recipes• Materials/Resources• Batch Production Records• Integrated to Product Master
Agile PG&C – Budgeted•Manage market regulations•Maintain ingredient
specification•Integrated to product master•Product compliance tracking
Agile PQM – Implemented•Manage Deviations, OOS,
NCM’s processes•Manage CAPA’s, root cause
analysis•Document management and
control plans•Integrated to product master
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Compliance/Regulatory
Business Requirements• Provide a single source database that links raw materials/ingredients to
market regulations and products currently set up in Agile and future development products
• Reduce frequency of inquiries to consultants and lower overall cost• Eliminate “bottleneck” for regulatory reviews for “Where can this be used?”• Allow immediate feedback for R&D in the formula development process• Reduce overall time to market
Proposed SolutionAgile Product Governance & Compliance
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Agile Product Governance & Compliance
Projected Critical Success Factors/ROI’s• Reduce review time between R&D and
Regulatory • Reduction in costs associated with market
consultants• Eliminate duplicate work for materials and
ingredients that show up in multiple markets and in multiple products
Overall Increase time to market and reduce risks
associated with regulatory restrictions
Tips For Accelerating Product Innovation and Maximizing Product Profitability
R&D/Quality
Business Requirements• Provide version control of all R&D formulations during the development
phase of the product - Inferred TGA requirement• Integrate formulation with current Agile products and improve Regulatory
review process• Provide version control of all R&D recipes during the development phase • Provide the ability to scale batches (Preliminary Prototype
PilotProduction )Proposed Solution
Agile Recipe & Material Workspace
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Agile Recipe & Material Workspace
Projected Critical Success Factors/ROI’s• Comply with TGA regulations• Improve process time and accuracy
through increased visibility and accountability
• Automate recipe approval from the development phase through the production phase of the product lifecycle
• Replaces out-dated excel processes and LIMS
Overall Increase time to market and reduce risks
associated with product formulations
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Agenda• Agile Update – Latest measures
of success for Product Collaboration, Product Quality Management, and Product Portfolio Management
• Agile Direction – Product Governance & Compliance, Recipe & Material Workspace
• Demantra Update – Latest measures of success and learning
The Industrial Age
Individual Market Forecast Spreadsheets – Size 8MB -18MB
WW Unit and Revenue Summary by Product – Size 23MB
Individual Market Plans
WW Quarter Revenue Summary by Market – Size 5MB
What is my forecast and how can I see it?
Forecast Accuracy?
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Demantra
• “Bottom-up” Forecast < one week
• Time to analyze promotional activities
• Minimized obsolescence costs
• Increase forecast visibility
• Facilitate trust
• Communication, Collaboration, Cooperation
• Statistical Forecast < 10% Aggregate MAPE
• Adjusted Market Forecast with qualitative adjustments < 7% Aggregate MAPE
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Demantra• Original Data Model was customized for USANA’s environment• Enhancements that come with latest releases of Demantra use the standard
Data Model• Over the next couple of months we will re-implement Demantra using the out
of the box Data Model
Tips For Accelerating Product Innovation and Maximizing Product Profitability
Demantra Demand Management
Projected Critical Success Factors/ROI’s• Ability to use enhanced NPI forecasting• Increase the number of indicators to be used in regression models• Import financial models to closer align with financial reporting and
budgeting• Integrate with Oracle EBS Advance Supply Chain Planning to include
supply, demand and inventory • Integrate with Hyperion
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Tips For Accelerating Product Innovation and Maximizing Product Profitability