got 99 projects but profit ain't one? - capinc presentation on automation
Post on 14-Sep-2014
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The biggest challenge to successful product design isn’t the limits of technology or the changing global marketplace- it’s the sheer number of tasks waiting for each engineer to complete! A large Work In Progress (WIP) queue turns innovation into imitation by delaying product launch. A large WIP reduces agility because new opportunities go to the back of the queue, yet only 2 percent of product developers measure their WIP queues and only 15 percent of them can quantify the cost of launch delay. But the answer isn’t to hire more people or pull your hair out- it’s to automate tasks that lend themselves to it, reducing your WIP queue and finally freeing your engineers to innovate! This presentations covers some techniques to quantify your WIP queue and how much it is costing you. It also covers how to automate the most common product development tasks that engineers, sales and quoting departments do every day, using a combination of SolidWorks software and the powerful automation add-in DriveWorks.TRANSCRIPT
CAPINC Presents
Jason Pancoast Engineering Manager www.capinc.com
© CAPINC
Efficiency
Innovation Preventing
Errors
PROFIT
Customer Satisfaction
Reducing Cycle Time
Cost Reduction
© CAPINC
Time
Sales
Original Timeline
Minimal Impact of Delay “Ideal Monopoly Case”
Delayed Timeline
Delay
Product Launch
© CAPINC
Time
Sales
Original Timeline
Delayed Timeline
Delay
Lost sales
Lost sales
Delay = Cost Of Delay (COD)
Product Launch
Financial Impact of Delay “Competitive Market Case”
Explore Cost of Delay applications and implications.
Learn how SolidWorks + DriveWorks can reduce delays and increase profits.
Measure the impact of the Design-In-Process queue.
© CAPINC
© CAPINC
Case 1: COD: $10,000/week
• Product has issues that will delay launch 4 weeks. • Issues will cost $50,000 in sales, Marketing predicts. What do you do?
Case 2: COD: $30,000/week
© CAPINC
Case 1: COD: ???
• Product has problems. • Development can find problems in 5 weeks. • Manufacturing can find problems in 1 week. • Manufacturing estimates that re-tooling to address
problems will cost $50,000. Should Development push this immature product to Manufacturing?
Case 2: COD: $20,000/week
© CAPINC
Case 1: COD: ???
Case 2: COD: $20,000/week
Only 15% of product developers know their Cost of Delay.
Employees on the same project estimates’ vary by 50x.
Proper economic framework can improve estimates to vary only 2x.
© CAPINC
© CAPINC
Production Delay: Sales Quote Delay:
Ask your sales person: • Would the customer
pay an extra 10% to get a quote <24 hours?
• What % of sales would you lose if quotes took 3 days instead of 1?
Why? Quantify COD for Sales Quote delay.
Explore Cost of Delay applications and implications.
Learn how SolidWorks + DriveWorks can reduce delays and increase profits.
Measure the impact of the Design-In-Process queue.
© CAPINC
Knowing your Cost of Delay turns debates into profitable decisions.
Learn how SolidWorks + DriveWorks can reduce delays and increase profits.
Measure the impact of the Design-In-Process queue.
© CAPINC
Lots of back-and-forth between sales and engineering.
Engineering time is consumed by repetitive work.
Need to open up R&D opportunities for new accounts and innovation.
Requoting missed requirements is embarrassing and time-consuming.
© CAPINC
Automation is a benign circle. You just need to get the engine started. For best ROI, start
with low-hanging fruit!
Create a positive- feedback-loop.
Then automate the exceptions...
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Automation Effort
Automated Tasks
Queue reduction
Excess capacity!
© CAPINC
Input customer requirements...
•Form-based user interface
•Web Browser or Desktop
...Let knowledge-based engineering take over...
•Fast and powerful rules engine
•Excel-style logic and formulas
...Automatically produce CAD and other documents
•Behind-the-scenes operation
•SolidWorks and MS Office
Capture customer requirements and create sales documents
© CAPINC
Knowing your Cost of Delay turns debates into profitable decisions.
Learn how SolidWorks + DriveWorks can reduce delays and increase profits.
Measure the impact of the Design-In-Process queue.
© CAPINC
Knowing your Cost of Delay turns debates into profitable decisions.
Implementing SolidWorks with DriveWorks reduces delays and increases profits.
Measure the impact of the Design-In-Process queue.
© CAPINC
© CAPINC
Work-In-Progress (WIP) Designs-In-Progress (DIP)
• Refers to physical parts • Easy to see • Tracked by Finance Departments
• Refers to ideas • HARD to see • UNTRACKED by 98% of
design houses!
© CAPINC
How long?
Cycle Time is a trailing indicator of a problem.
Queue size is a leading indicator.
“Little’s Law” says you can measure one to get the other, if you must...
© CAPINC
Example1: If you complete 10 jobs per week, and you have 50 jobs in process, your time in queue is 5 weeks.
Example 2: If your cycle time is 30 days and you complete 2 jobs per day, your DIP is 60 jobs.
© CAPINC
Wait Time = Queue Size
Processing Rate
* John D.C. Little, MIT, 1961
© CAPINC
5 weeks in queue
$30K per week COD
60 products per year
Cost of Queue = 5 x $30K x 60 = $9,000,000 per year
Big DIP queue has damaging effects: Longer cycle time (Cost of Delay)
Increased risk from changes over time
Variability due to high capacity
More overhead to maintain queue
Lower quality from delayed feedback
Less motivation to work with urgency
Only 2% of product developers measure their DIP queues!
© CAPINC
Modest improvements in capacity can dramatically reduce your queue!
© CAPINC
3 items at 75%
19 items at 95%
•Sales and Marketing
•CAD
•Analysis, Prototyping, and Testing
•Management Approval
•Purchasing
•Tooling
© CAPINC
DriveWorks Administrator
+
+
DriveWorks Autopilot
DriveWorks Live
DriveWorks Live users
EPDM
+
Generate engineering drawings and production documents
© CAPINC
Knowing your Cost of Delay turns debates into profitable decisions.
Implementing SolidWorks with DriveWorks reduces delays and increases profits.
Measure the impact of the Design-In-Process queue.
© CAPINC
Knowing your Cost of Delay turns debates into profitable decisions.
Implementing SolidWorks with DriveWorks reduces delays and increases profits.
Reducing your Design-In-Process queue saves costs dramatically.
© CAPINC
Thank you for attending I’ve Got 99 Projects but Profit Ain’t One
Jason Pancoast Engineering Manager [email protected] www.capinc.com