bpr session 05
TRANSCRIPT
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7/31/2019 Bpr Session 05
1/10
Time Compressed Delivery Process of a Heavy-duty, Highway Truck
Customer Dealer InquiryOrder Entry Schedule
Assembly
Assembly Shipment
Pricing CreditCheck
Pre-approvalComponent
Supply
JITAccessory
Fabrication
Pre-
EngineeredOption
CustomEngineering
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Maturity of Strategic Concepts
Embryonic Growth Mature Aging
Value for theCustomer
ShareholderValue
CompetitiveAdvantage
.. .
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Core Processes for CreatingCustomer Value
Customer Customer Customer
Product Creation Order Delivery Service Assurance
Products Fit for Useby Time of Launch
Orders HandledCorrectly and Quickly
Transparent Servicefor Maximum
Product Enjoyment
Planand
Specify
DesignandTest
LaunchTake-in
Order
Sourceand
Manu-facture
DistributeandInstall
Maintainand
Repair
Upgrade Dispose
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7/31/2019 Bpr Session 05
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Quality, Delivery and Cost in Order Delivery
Quality
Delivery
Cost
Take-inOrder
Sourceand
Manufacture
Distributeand
Install
UnambiguousUnderstanding of Customer Request
On-the-spotProcessing Of
Customer Requestfor ImmediateQuotation
Low Change-cost if First Quotation is
Unsatisfactory
Easy Inquiry intoStatus of Product-in-process
Fault-freeDispatching of Sub-assembly Kitsto Site
Ability to SpecifyDesired ProductFinishing Close toDelivery Time
Predictable andReliable Delivery
Time
Generation of ProductDocumentationAccording to CustomerStandards
Low Cost of ImmobilizationDuringInstallation
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Capacity Loss Associated withWorking on Several Projects
E f f e c
t i v e
C a p a c i
t y100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
Number of Simultaneous Projects
n=2 n=3 n=4 n=5
L=Mental Switch Time (Hours)
L=0.5
L=1.0
L=1.5
n=1
0%
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7/31/2019 Bpr Session 05
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Waste of Resources Due to Rework
100
75
50
25
0
R & D S t a f f
B u i
l d - u
p
( % )
30%
Hardware
TotalSoftware/Firmware Total
Net Productive
Fixing
Potentially750 EngineersFreeable to WorkOn New Products
70% 40%
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Opportunities for Lead Time Reduction
0 10 20 30 40 50 60 70
% of Respondents Quoting Opportunity asMost Important to Reduce Development Lead Time
Use of Information Systems
Use of CAD/CAM
Parallelism in Design Process
Opportunities to Communicate Well
Pragmatism Instead of Over-Engineering
Intensive Planning
Early Involvement of Functions
Opportunity
68 68
53
46
39
28
26
23
13
Project Management
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7/31/2019 Bpr Session 05
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Impact of Unanticipated CompetitorProduct Introduction
(A) = Actual(E) = Expected
S a l e s
V o l u m e s
( U n i t s
)
Year-1
Year0
Year1
Year
2
Year
3
Market (A)
Market (E)
Company (A)
Company (E)
Competitor (A)
Competitor (E)
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Impact on Sales Volume and Profit
Volume Gross Profit Net Profit
2nd to Market
72% of Expected
SalesVolume
IncreasedTrade
Discounts
49% of Expected
Gross Profit
IncreasedAdvertisingAndPromotion
20% of ExpectedNet Profit
I n d e x
f o r
3 Y e a r s C u m u
l a t i v e
( E x p e c
t e d =
1 0 0 )
0
50
100
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7/31/2019 Bpr Session 05
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Creating the Right Products
Technological ObsolescenceCommercial Obsolescence
CannibalizationScope for Carry-OverScope for CommonalityProduct IntegrityLearning and Experience