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IMPROVING
  COST/WEIGHT/PROCESS
IN THE NEW AMERICAN BUSINESS MODEL
                   Thomas Turner
                      4/18/2011
AUTHOR’S
BACKGROUND
30 Years improving cost and process’ in the Engineering and Manufacturing sectors.

Highlights –
•Recovered 100M in hard dollars for a large company on post invoiced monies.
•Repaired many large supplier’s Quality and Timing relationships with their customers.
•Established several new business units for Engineering/Manufacturing companies breaking new ground
and yielding long term benefits in cost/weight/creativity.
•Enabled over 20 promotions and retentions for my clients.
•Specialize in team building to revitalize stagnant operations.



My policy is to get in quick, fix everything I can, provide
a plan for the future and leave.
TRUTHS WE SHOULD
                                HOLD TO BE SELF-
                                EVIDENT

•It takes 10,000 working hours in a given trade to become competent.


•The three ascension levels of Engineering/Manufacturing growth are:
              Competency
              Finesse
              Creativity

Competent Engineering/Manufacturing ascended through finesse and
creativity will yield the best product and highest profit.
WHAT WE ARE GOING TO
                                 DO TODAY?


•Discuss problems we find in the current USA Engineering/Manufacturing models.

•Define where we want to be in the future.

•Define a generic mass reduction model.
Problems in the USA
Manufacturing/Engineering
models.
PROBLEMS IN THE USA
                                                 MANUFACTURING/ENGINEE
                                                 RING MODEL.


Lets start with what we know
•We know people employ consultants to do things that they themselves have trouble doing.

•We know that our industries have trouble with reoccurring mistakes.

•We know that Cost and Weight reduction efforts take a long time and often have mixed results.

•We know that with the introduction of new technology a great deal of our Engineering efforts are
becoming more computerized. As a result our Engineers are doing more Program Management and less
Engineering.

•Efforts are being made to move Manufacturing and Engineering overseas.
PROBLEMS IN THE USA
                                        MANUFACTURING/ENGINEE
                                        RING MODEL.


Summary-

The current Manufacturing/Engineering models have accepted new technologies
yet the maturation of the structures has lagged.

What can we fix that would affect what we know?
•Separation of Engineering and Manufacturing is no longer needed and fatal if still
pursued.
•Cingular focus on careers by employees instead of product is inhibiting our ability
to succeed.
•Leadership needs to be granted based on experience and team building.
PROBLEMS IN THE USA
                                                       MANUFACTURING/ENGINEE
                                                       RING MODEL.


What can we fix that would affect what we know?
•Separation of Engineering and Manufacturing is no longer needed and fatal if still
pursued.

Current product lifecycle model –
Advanced Engineering - Product Engineering – Manufacturing develops process for manufacture - Launch

Proposed-
Blended Manufacturing and Engineering develop product while developing process – launch




Major Change- 50% of Engineering staff needs to be populated with Manufacturing
specialists. (Journeymen)
PROBLEMS IN THE
                                        USA
                                        MANUFACTURING/ENGINEERIN
                                        G MODEL.



Current Model “worst case”
                  Engineer      Engineer
Engineer         Supervisor     Manager
                                             Chief Engineer
  3,000 hrs       1,000 hrs      500 hrs
                                                100 hrs       Average Experience
 experience                                   experience
 Product A
                 experience    experience
                                               Product A          1,150 Hrs
                 Product A     Product A



Proposed Model “worst case”
                  Mangineer     Mangineer        Chief
 Mangineer        Supervisor     Manager       Mangineer
                                                               Average Experience
  10,000 hrs       5,000 hrs     5000 hrs       1000 hrs           5,250 Hrs
  experience      experience    experience     experience
  Product A       Product A     Product A      Product A
PROBLEMS IN THE USA
                                                MANUFACTURING/ENGINEE
                                                RING MODEL.

Singular focus on careers by employees instead of product is inhibiting our ability
to succeed.

In my opinion this started with Dale Carnegie. His focus on manipulating others
and being a great presenter never mentioned the need to understand a
commodity /business inside and out. We see this theme in several other books
that prompt mantras such as “publish or die” and “switch jobs if you don’t get
promoted every two years”.

I would propose defined career paths based on hours of experience.

0 – 10,000 hrs Trainee - 10,000 hrs Mangineer - 15,000 hrs Eligible for Mangineer Leader
PROBLEMS IN THE USA
                                                          MANUFACTURING/ENGINEE
                                                          RING MODEL.

What can we fix that would affect what we know?
•Leadership needs to be granted based on experience and team building.

I find team building to be lacking in most of our medium to large corporations.
I have had great success in helping teams to grow with a few
simple rules I employ:

1.As the leader I will enthusiastically take the blame for all things done wrong by the group.
2.Praise loud and often .
3.Use humor to relieve social pressure.
4.Care for the success of all under you.
5.Explain what you want from your people and give examples so when they know when they are doing right and when they
are doing wrong.
6.Make fun of yourself. Self depreciative humor connects people through vulnerability.
7.Willingly work for your employee as a subordinate when they need help. i.e. jump in and crunch numbers or carry parts
for them.
PROBLEMS IN THE USA
                                      MANUFACTURING/ENGINEE
                                      RING MODEL.

What do we know?
•Efforts are being made to move Manufacturing and Engineering overseas.

    QS/ISO 9000 demanded that business processes be defined. This included
    risk in design, risk in production, and work flow. In other words, we
    documented the EXPERIENCE of our forefathers in Engineering and
    Manufacturing products.
          DFMEA
          PFMEA
          Process Flow
          DVP&R
PROBLEMS IN THE USA
                                     MANUFACTURING/ENGINEE
                                     RING MODEL.
What do we know?
•Efforts are being made to move Manufacturing and Engineering overseas.

     It is mostly untrue (80%) that manufacturing overseas is less expensive.

         •Reasons overseas manufacture is more expensive
             •Shipping costs
             •Warehouse costs
             • Pipeline could be six months of product
             • American productivity is much higher
             • Baseline costs of raw materials should be the same worldwide

              75-80% of product cost is material.
Weight Reduction Model
WEIGHT REDUCTION
             MODEL


1.Establish the rules
2.Gather data
3.Gather the team
4.Associate data with Specialists
5.Target areas of opportunity
6.Make the changes
7.Validate
Establish the Rules

The goal is to have the Weight Reduction effort provide
a more effective, lighter vehicle at lower cost.

The contract agreed to by all the participants is key for
defining success. This contract will incorporate the
following:

     •   Length of cycle.
     •   Set up repeat effort with lessons learned.
     •   Use of projected savings to offset current
         expenses.
     •   Understanding that validation of what we have
         currently is a success also.
     •   Final decision process for implementation.
         (Bullet proof)
Gather the data

Information:

• Warranty/Repair history
• Understand raw material utilization
• Categorize components by manufacturing process
• Group Common products for bundling
• Review cost and process at suppliers
• Conduct Transportation evaluation
• Define safety items
• Define injuries and vehicle failures
• Review supplier weight and cost reduction ideas
• Interview users
• Comparative analysis with other vehicles
• Software update process, cycle, and cost

How you incorporate this information will greatly affect
speed and success of this effort.
Gather the team

The team should be biased based on the content of the
vehicle and cost content.

Minimum requirements:
Welder
Fabricator
Casting Specialist
Plastics Specialist
Machinist
Estimator
Electrical Specialist
Software Specialist
Buyer
Military usage specialist/s

Bias additions based on content or original budget:
Example- If Software was 50% of the original budget
then increase the number of Software Specialists.
Welder
Fabricator
Casting Specialist
Plastics Specialist
Machinist
Estimator
Electrical Specialist
Software Specialist
Buyer
                        Flat sheet and formed metallic parts

                        -Analyze Repair and Warranty costs for cost
                        reduction and functional improvement.
                        -Validate Best Practice for the manufacture
                        and joining of the parts.
                        -Alternatives for improvement and cost
                        reduction brain storming.
                        -Compare estimated cost with real cost.
                        -Financial evaluation of bundling
                        components and shipping
The Success of these teams is greatly dependent on
   how the teams are scheduled and lead.




Daily –

Review of previous days progress
Identify road blocks
List opportunities and days schedule
Break into teams


Weekly group discussion-

Review whole vehicle
           Use
           Safety items
           Vehicle requirements
           Brain Storm
Review each other’s team progress
Set goals for the week
QUESTIONS?
THANK YOU


TURNER AND TURNER LLC

THOMAS E. TURNER
(586) 484-2908
TMTRNR@GMAIL.COM

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Vehicle cost weight process improvement 2011

  • 1. IMPROVING COST/WEIGHT/PROCESS IN THE NEW AMERICAN BUSINESS MODEL Thomas Turner 4/18/2011
  • 3. 30 Years improving cost and process’ in the Engineering and Manufacturing sectors. Highlights – •Recovered 100M in hard dollars for a large company on post invoiced monies. •Repaired many large supplier’s Quality and Timing relationships with their customers. •Established several new business units for Engineering/Manufacturing companies breaking new ground and yielding long term benefits in cost/weight/creativity. •Enabled over 20 promotions and retentions for my clients. •Specialize in team building to revitalize stagnant operations. My policy is to get in quick, fix everything I can, provide a plan for the future and leave.
  • 4. TRUTHS WE SHOULD HOLD TO BE SELF- EVIDENT •It takes 10,000 working hours in a given trade to become competent. •The three ascension levels of Engineering/Manufacturing growth are:  Competency  Finesse  Creativity Competent Engineering/Manufacturing ascended through finesse and creativity will yield the best product and highest profit.
  • 5. WHAT WE ARE GOING TO DO TODAY? •Discuss problems we find in the current USA Engineering/Manufacturing models. •Define where we want to be in the future. •Define a generic mass reduction model.
  • 6. Problems in the USA Manufacturing/Engineering models.
  • 7. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. Lets start with what we know •We know people employ consultants to do things that they themselves have trouble doing. •We know that our industries have trouble with reoccurring mistakes. •We know that Cost and Weight reduction efforts take a long time and often have mixed results. •We know that with the introduction of new technology a great deal of our Engineering efforts are becoming more computerized. As a result our Engineers are doing more Program Management and less Engineering. •Efforts are being made to move Manufacturing and Engineering overseas.
  • 8. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. Summary- The current Manufacturing/Engineering models have accepted new technologies yet the maturation of the structures has lagged. What can we fix that would affect what we know? •Separation of Engineering and Manufacturing is no longer needed and fatal if still pursued. •Cingular focus on careers by employees instead of product is inhibiting our ability to succeed. •Leadership needs to be granted based on experience and team building.
  • 9. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. What can we fix that would affect what we know? •Separation of Engineering and Manufacturing is no longer needed and fatal if still pursued. Current product lifecycle model – Advanced Engineering - Product Engineering – Manufacturing develops process for manufacture - Launch Proposed- Blended Manufacturing and Engineering develop product while developing process – launch Major Change- 50% of Engineering staff needs to be populated with Manufacturing specialists. (Journeymen)
  • 10. PROBLEMS IN THE USA MANUFACTURING/ENGINEERIN G MODEL. Current Model “worst case” Engineer Engineer Engineer Supervisor Manager Chief Engineer 3,000 hrs 1,000 hrs 500 hrs 100 hrs Average Experience experience experience Product A experience experience Product A 1,150 Hrs Product A Product A Proposed Model “worst case” Mangineer Mangineer Chief Mangineer Supervisor Manager Mangineer Average Experience 10,000 hrs 5,000 hrs 5000 hrs 1000 hrs 5,250 Hrs experience experience experience experience Product A Product A Product A Product A
  • 11. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. Singular focus on careers by employees instead of product is inhibiting our ability to succeed. In my opinion this started with Dale Carnegie. His focus on manipulating others and being a great presenter never mentioned the need to understand a commodity /business inside and out. We see this theme in several other books that prompt mantras such as “publish or die” and “switch jobs if you don’t get promoted every two years”. I would propose defined career paths based on hours of experience. 0 – 10,000 hrs Trainee - 10,000 hrs Mangineer - 15,000 hrs Eligible for Mangineer Leader
  • 12. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. What can we fix that would affect what we know? •Leadership needs to be granted based on experience and team building. I find team building to be lacking in most of our medium to large corporations. I have had great success in helping teams to grow with a few simple rules I employ: 1.As the leader I will enthusiastically take the blame for all things done wrong by the group. 2.Praise loud and often . 3.Use humor to relieve social pressure. 4.Care for the success of all under you. 5.Explain what you want from your people and give examples so when they know when they are doing right and when they are doing wrong. 6.Make fun of yourself. Self depreciative humor connects people through vulnerability. 7.Willingly work for your employee as a subordinate when they need help. i.e. jump in and crunch numbers or carry parts for them.
  • 13. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. What do we know? •Efforts are being made to move Manufacturing and Engineering overseas. QS/ISO 9000 demanded that business processes be defined. This included risk in design, risk in production, and work flow. In other words, we documented the EXPERIENCE of our forefathers in Engineering and Manufacturing products. DFMEA PFMEA Process Flow DVP&R
  • 14. PROBLEMS IN THE USA MANUFACTURING/ENGINEE RING MODEL. What do we know? •Efforts are being made to move Manufacturing and Engineering overseas.  It is mostly untrue (80%) that manufacturing overseas is less expensive. •Reasons overseas manufacture is more expensive •Shipping costs •Warehouse costs • Pipeline could be six months of product • American productivity is much higher • Baseline costs of raw materials should be the same worldwide 75-80% of product cost is material.
  • 16. WEIGHT REDUCTION MODEL 1.Establish the rules 2.Gather data 3.Gather the team 4.Associate data with Specialists 5.Target areas of opportunity 6.Make the changes 7.Validate
  • 17. Establish the Rules The goal is to have the Weight Reduction effort provide a more effective, lighter vehicle at lower cost. The contract agreed to by all the participants is key for defining success. This contract will incorporate the following: • Length of cycle. • Set up repeat effort with lessons learned. • Use of projected savings to offset current expenses. • Understanding that validation of what we have currently is a success also. • Final decision process for implementation. (Bullet proof)
  • 18. Gather the data Information: • Warranty/Repair history • Understand raw material utilization • Categorize components by manufacturing process • Group Common products for bundling • Review cost and process at suppliers • Conduct Transportation evaluation • Define safety items • Define injuries and vehicle failures • Review supplier weight and cost reduction ideas • Interview users • Comparative analysis with other vehicles • Software update process, cycle, and cost How you incorporate this information will greatly affect speed and success of this effort.
  • 19. Gather the team The team should be biased based on the content of the vehicle and cost content. Minimum requirements: Welder Fabricator Casting Specialist Plastics Specialist Machinist Estimator Electrical Specialist Software Specialist Buyer Military usage specialist/s Bias additions based on content or original budget: Example- If Software was 50% of the original budget then increase the number of Software Specialists.
  • 20. Welder Fabricator Casting Specialist Plastics Specialist Machinist Estimator Electrical Specialist Software Specialist Buyer Flat sheet and formed metallic parts -Analyze Repair and Warranty costs for cost reduction and functional improvement. -Validate Best Practice for the manufacture and joining of the parts. -Alternatives for improvement and cost reduction brain storming. -Compare estimated cost with real cost. -Financial evaluation of bundling components and shipping
  • 21. The Success of these teams is greatly dependent on how the teams are scheduled and lead. Daily – Review of previous days progress Identify road blocks List opportunities and days schedule Break into teams Weekly group discussion- Review whole vehicle Use Safety items Vehicle requirements Brain Storm Review each other’s team progress Set goals for the week
  • 23. THANK YOU TURNER AND TURNER LLC THOMAS E. TURNER (586) 484-2908 TMTRNR@GMAIL.COM

Editor's Notes

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