Requirements Managment

ALE

Requirements Management
The Real Story

Contact ALE for further information

Analytic And Leadership Excellence LLC Integrates Knowledge, The Technology of Performance.
http://www.alefulcrum.com, results@alefulcrum.com, Bernard W. Johnson

ALE
Requirements Management is a BIG Animal
The scope is the entire System, Platforms, Mechanics, Software, Hardware
Product success depends on effective management of requirements

Elicit Consolidate Analyze Validate Allocate Verify

•Where/ how •Product meets
•List •Analyze Requirement
•Acquire inputs •How will you test it? to implement? requirements?
•Prioritize •Analyze Impact
•SW? HW? •Satisfies Customer
•Focus •Product functional requirements
•Elec?, Hydr?, Mech? need?
•constraints

•Traceability
•Prototypes •Trade Studies
•Value Analysis •QFD
•Interviews •Evaluations
•Simulation •Pugh
•QFD •Spec Templates
•Prototypes •Sign-off
•Analytical
•Simulation
Systems Engineering, Innovation, DFSS, TRIZ, Process, Methods, Tools
•QFD

A company is best off to consider how they are doing in the individual areas of
Requirements Management. RM is just too large a pill to swallow all at once. Even the components
used to aide RM are large, and can cause the original purpose of RM to loose value if not performed with
insight. In order for RM to be effective, it must be understood and tailored to add value according to the
needs of the company. The value is to eliminate the cost associated with improving later (Lean, Six Sigma).


ABSTRACT
Requirements Engineering
Our motivation is to meet the expectations of our customers in an effective manner. This
depends absolutely on understanding and communicating their needs into our development
organizations. In light of a sometimes complex organization, Requirements Management (RM)
can also help center our focus back to the product. As managers often operate in a global and
distributed organization, improving RM stands to provide an high benefit.

Topics addressed in this presentation

Motivation
Portfolio management
Integration of RM into global operations
Understanding market trends
Taking first steps
Business case
Understanding what benefits can be expected and when
How can RM can help with communications, and
How to address the perceived additional workload

While not exhaustively addressed, I hope that integrating these topics together in one
framework might stimulate further discussion and benefit your organization.


Motivation
Customer demands:
Trends may shift over time, from supplier-of-systems to supplier-of –modules.
Speed, perhaps twice as fast as a decade ago.
Lowest cost solutions, commoditization.
(balancing commoditization with innovation is a separate topic)
Perfect quality

RM
Must drive our requirements into the global roadmap product line/ platforms/
generic/ aka core assets. Also: infrastructure and support.
impacts: % reuse/ cost/ efficiency/ productivity (the cost equation, Johnson)
Expected % Rework Actual Proposed
(Inefficiency)
Specific Examples
Specific
Specific
•Requirements
Region Engineering
Specific •HW Chipsets
•SW Environment
•SW Solutions
Global Global Global
Generic Generic Generic


REQUIREMENTS AND PORTFOLIO
MANAGEMENT
Requirements (whether stated or not), are a primary input to an organization. Therefore,
RM and portfolio management are processes that touch all parts of our organization including
BD, Product Development, Innovation, Suppliers, Manufacturing, etc. This invites
communication and decisions concerning how we operate globally and with our customers.
Generally, requirements that are not stated or otherwise not understood result in
development iteration and excessive cost.


Global
Requirements and Portfolio Management
Region x
Customer

BD/ Sales/ Marketing/ Engineering: Requirements and Portfolio Interface

Project Specific
Global Requirements
Global
Innovation quot;Off the
Platform
/Roadmap Shelfquot;
Specific
Region x Region
Global
Innovation & Generic
Gap/ Portfolio Mgmt
White-Spots

Product
Region Region x
Requirements
Advanced Specific
/ Roadmap Development Developed
Generic
Product

Regulations/
Law Must be cognizant that requirements flow though
External
many organizations. Effective communication
Support
across boundaries is difficult but essential.


REQUIREMENTS MANAGEMENT, GLOBAL
SCHEME
Slide #1, Global Scheme
To be successful, we must define how our organization's RM operates
-Markets represent the regions for example
-The RE of those markets must be closely tied to the relevant customers.
-From the processing of requirements in each market, suitable roadmaps and portfolios can be proposed
-These requirements activities serve as inputs to the global generic activities
-They also are a basis for planning what will be global generic, regional generic, or project specific.
-Out of this process should come a global roadmap, plans, and a portfolio of on the shelf solutions for the future.
-In order to measure the effectiveness of this process, the global platform managers should monitor the use of
their solutions through % reuse metrics.
-R&R for Region, Global, Central Functions, and Engineering should be established that support the process.
Slide #2, An estimate for the amount of rework can be accomplished in a strait forward manner.
1. List all your projects for a period of time, five years for example, along with R&D amount
2. Segment your organizations activities, SW, HW, Mechanical, Packaging, whatever makes sense.
3. For each project, assign percentages to the activities
a. cost, totaling 100%
b. % reuse, totaling 100%
4. Based on this the following can be estimated
c. total of cost distributed to the activities d. total cost of redevelopment or non-reuse
e. Ratio of re-use to total cost
5. Targets and improvement actions can be then considered

Slide #3, R&R for Region ~vs~ Global, Central Functions, Engineering
•Define and agree on the engineering scope of the Region and global
•Estimate the status of each item
•Define actions to improve the status


Requirements Management,
Global Scheme #1
The global platform managers should monitor the use of their solutions through % reuse metrics.
Specific
Market 1 Market 2 Market n Region

Global
Generic
Customers Customers Customers

by Regional
RE RE RE
Leaders
Roadmap and Requirements proposal
Architecture
by Global
Model what will be
MicroController
Head and Reg
-Global Generic
ECU Roadmap
Global RE
-Region Generic
Leaders
SW Architecture
-Project Specific
Drivers

Roadmap and Solutions
application
measure,
Market 1 Market 2 Market n
reward, &
adapt RE


Requirements Management,
Global Scheme #2,
Total Cost $47,553.00
Cost Distribution
Quantifying the impact of
Non Reuse $30,087.12

Re-Work verses Re-Use

-80% -50% $2,175.90

-67% -60% $1,368.84

-86% -50% $961.54
-24% -25% -$22.34
Savings

Target

-90% na
na
-18% na
-29% na
-6%
% Specific
$19,837.50

$13,271.34
$7,351.35
$3,174.75

$7,331.25
$2,351.65
$2,351.65
$2,501.65
$2,653.20

$5,851.58

$6,598.13

$2,288.14
$771.35

$138.63
$432.85
$735.13
TA Specific Technical Solutions that Deviate From Generic
% Project Total (Cost) Portion cost not reuse
Total/ Check. Must = 100%
Build Environment

Build Environment
SW Integration

SW Integration
ASW/ Other

ASW/ Other
CC Driver

CC Driver
IO Driver

IO Driver
Compiler

Compiler
Tools

Tools
OS

OS


Requirements Management, Global
Scheme #3, R&R for Region ~vs~ Global, Central Functions, Engineering
R&R should be driven by business and market needs. A collaborative
•Architecture
framework between the Global and Regional activities is Required •Micros
•Mech
Example Status Key •ASICS
Regional Engineering Scope •Drivers
Global Engineering Scope •Infrastructure
•Process
•Tools
• Define the requirements of our • Gather requirements from •etc
market (org and communication) all regions (org and communication)

•Local Project/ Platform Management • Global Project/ Platform Management

• Define and maint Region Roadmaps • Define and maint Global Roadmaps
with feeds from Regions
• Recommend/ Collaborate targets • Agree/ Define targets
for global Generic ~vs~ Region Specific for global Generic ~vs~ Region Specific

• Staff (HC & LC), train, and deliver • Staff (HC & LC), train, and deliver
Region Specific development. Global Generic according to plan.

• Identify & develop strategic skill sets • Identify & develop comprehensive skill sets

• Apply global solutions according to roadmap • Be measured on % attainment of Reuse

TRENDS AND KEY
CHARACTERISTICS
•A market is not fixed, rather it is constantly evolving

•It is important to understand these trends concerning requirements and
Key Characteristics

•This understanding informs leadership how to evolve the organization

•It helps leaders determine and develop relevant core competencies

•Helps assure that the most important/ value adding requirements are addressed properly

•Improves response to changes in the market, improve synergies, and enables
effective portfolio management.


TRENDS AND KEY CHARACTERISTICS
Software Example: Product Scope, Past and Future

Customer Past Future Trend: Project Scope
System Functions
Y y y
1 y

OSS
Drivers
Y Y y y y
2 Y Y y y
Serial
y y y
Subsystem Functions
3 y y

Trend: Reuse
y y
4 y y
System Functions
y y y y
5 Drivers OSS
Y Y

Y y y y y
6 Serial
y y

Subsystem Functions
Project Scope Trend corrective actions
Drivers: Input Output Drivrs
•EF: Function u Resource consumption E to Customer.
Serial: Communications
Reuse Trend corrective actions
V: Vehicle Functions
• Drivers and Serial Communications: Install RE as described in following slides
E: Engine Functions
• Functions: Adopt standards General corrective actions
OSS: Support
• Conduct Intensive RE w Region OEM's to
understand how best add E to their economies of scale


Business Case
By understanding your current approach relative to RM and platform, you can
Uncover opportunities to reduce product development costs dramatically.

1. Absent of RM, your company’s may engineer more platforms than matches needs (a)
Solution: Apply RM, leading to higher % utility and correspondingly Reduce Platform costs.
2. Insufficient regional specific platform engineering results in redesign (b). Solution: increase region
specific platforms through RM funded by savings from reduced global expenses, 1 (c)
3. Absence of quot;Systemsquot; engineering and RM, development can involve
iteration and experimentation. Solution is: Install Systems Engineering
and RM to reduce trial & Error. Do it once! (d)
4. Since there are few standards (egs. Autosar), there is too much quot;specificquot;
e
development. Solution: uncertain
5. As there is more development than ideal, more testing is
required to assure Q (e). Solution: points 1-3
? Current
6. The current stack-up of costs are evident
Cost
7. And the theoretical target, therefore:

d
c e
Potential Savings =
Current Cost minus
d
b
Theoretical Target Theoretical
c
Funded
Target
a a
Applicable

1 2 3 4 5

EXPECTATIONS

1. Understand the RM process and where you strengths and weaknesses are.
2. Define your expectations of what the benefits and costs re, and when (value)
a. While active projects can benefit from RM,
b. additional benefits will come in the second or third generation projects
which are based on a RM driven platform.
c. It is in this RM driven platform that we can expect to see
- reduced iteration in our development
- as the products will be based more strongly on regional requirements.


EXPECTATIONS
Objective analysis of what needs to be done.
Are we up for the change?
Establish Product Generation Roadmap with Project Specific
Plan of components: Specific, reuse, region generic, or global generic.
Reuse from Prior Project
Region Specific Generic
Global Generic

$
Engineering Current
Customers
Products
•High Generic Fees
•Low Return
Analysis of Customer Platform Needs

Engineering Next $
Establish Integrated RE
and RM Organization
Product
RE Sys •Reduce the Fees Paid
•Reuse Prior Solutions
RE RE
Comp Box

Future $
Generation Engineering
RESW
RE HW
Delay Product
•Pay for what we specify and intend to use
•Repackage frequently used region solutions

Tools

COMMUNICATIONS
COMMUNICATIONS
There is a tremendous amount of communication/ coupling going on throughout the development process.
This communication can cross both organizational and geographical boundaries, posing significant challenges.
Improved communication and understanding can be had by designing a documentation tree along with
protocol that governs: ownership, change control, operations, quality assurance, etc.
The improvement will come by reducing ad-hoc trial & error and systematizing our documentation .
This means we can control the process and approach the quot;do it one timequot; target.

DOCUMENT TREE
•Architecture compatible with Needs
-Customer
RE Sys
-Modularity
-Platform
RE Comp RE Box Docn
-Technology
•Protocol RE
RE HW SW

-Ownership
RE
RE RE
RE
-Change Control
Mech Circuit IO ASW
-Operations
-QA Doc1 Docn


STRATEGIC ACTIONS
STRATEGIC ACTIONS
Requirements Engineering as well as other advanced or mature product development activities requires
resources. Understanding and believing in the benefits of such activities may motivate us to shift some of your
application development to quot;low costquot; while we shift your domestic emphasis to areas such as RM.

STRATEGIC ACTIONS
This decision must not be taken lightly however as there are alternative cost saving tactics that do not
Cause long term harm through brain-draining outsourcing

Contact ALE
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