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Engineering change management webinar april 2013


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Engineering change management webinar april 2013

  1. 1. Engineering ChangeManagement:The ProcessJohn M.© Copyright John Cachat
  2. 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 groups © Copyright John Cachat
  3. 3. HousekeepingPhones are mutedUse the questionblock for questions Copy of presentationavailable upon request3 © Copyright John Cachat
  4. 4. Today’s 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. 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. 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. 7. Engineering ChangeOrganizational Pressures7 © Copyright John Cachat
  8. 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. 9. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification9 © Copyright John Cachat
  10. 10. Change Request• Source– Customers– Internal– Suppliers• Deviation/Waiver/Permanent• Should you or shouldn’t you do it?– Review impact & related costs– Determine risk– Other parts, processes, etc.• Who get’s to vote? – create some rules10 © Copyright John Cachat
  11. 11. Change RequestShould you or shouldn’t 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. 12. Change RequestShould you or shouldn’t 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. 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. 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. 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. 16. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification16 © Copyright John Cachat
  17. 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. 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. 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. 20. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification20 © Copyright John Cachat
  21. 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. 22. Engineering Change ManagementA Four Step Process1.ECRChangeRequest2.ECNChangeNotice3.ECOChangeOrder4.ECVChangeVerification22 © Copyright John Cachat
  23. 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. 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. 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. 26. 26Engineering Change ProcessWhat it actually isWhat you think it isWhat it should be© Copyright John Cachat
  27. 27. Big Company ChallengeWhere does Engineering Change Belong?27Tie everything togetherwith business workflow© Copyright John Cachat
  28. 28. How Do I want Engineering Change to Work?28 © Copyright John Cachat
  29. 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. 30. Engineering Change Process3Software2Process1People30 © Copyright John Cachat
  31. 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. 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. 33. Increase Profit on New Products33INCREASEPROFIT ONNEW PRODUCTS020406080100120Design Proto Pre-Prod ProductionProgram AProgram BNumber of Engineering Changes by Product Stage© Copyright John Cachat
  34. 34. Increase Profit on New Products34INCREASEPROFIT ONNEW PRODUCTSTurn Around Time (in Days)05101520253035ChangeRequestChange Notice Change Order ChangeVerificationProgram AProgram B© Copyright John Cachat
  35. 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. 36. 36SummaryEngineering Change Management• This is a HUGE opportunityfor every organization–More revenue–Lower costs–Lower risk–Higher compliance• When do you addpeople to the process?© Copyright John Cachat
  37. 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. 38. FREE Proof of Concept38 © Copyright John CachatWeWe
  39. 39. © Copyright John Cachat&Contact:John Cachatjmc@peproso.comCopy of Presentation&Request a DemoVisit: WebinarsEngineering Change Management: The Process39