SIX THETA ACHIEVE A STRONGER AND MORE EFFICIENT SUPPLY CHAIN WITH SIX THETA. 28 November 2017

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1 SIX THETA ACHIEVE A STRONGER AND MORE EFFICIENT SUPPLY CHAIN WITH SIX THETA 28 November 2017

2 VALCON LEAVES GLOBAL FOOTPRINTS Established Annual growth rate Employees Operating countries % VALCON OFFICES VALCON PRESENCE 2

3 KNOWN MAJOR CHALLENGES IN SUPPLY CHAIN INNOVATION COMPLEXITY COSTS 3

4 THERE IS A NEW BRICK IN TOWN TRADITIONAL SIX THETA POWERED 4

5 AND IT IS OBJECTIVE AND WELL-SUBSTANTIATED N D W = S W N + N i=1 Design weaknesses (D W ) System weaknesses (S W ) Detailed weaknesses (D Wi ) Number of interfaces (N) D Wi 5

6 Valcon Six Theta An academic perspective Prof. Thomas Howard, MEng, PhD, MIET DTU Mechanical Engineering 6 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

7 Technical University of Denmark (DTU) No. 1 in the Nordics! 7 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

8 History of Engineering Design Methodology 2223 In post war Germany there was a need to rapidly design and manufacture known machinery that was essential to production, such as lathes, milling machines, presses etc. In order to achieve this with high quality, the VDI guidelines for machine design were created. 8 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

9 History of Engineering Design Methodology Hidden deep within (section 7.3.1): CLARITY: Within a given function structure, an unambiguous interrelationship between the various sub-functions and the appropriate inputs and outputs must be guaranteed. 9 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

10 History of Engineering Design Methodology Axiom 1: The Independence Axiom Maintain independence of functional requirements. Axiom 2: The Information Axiom Minimize the information content of a design. 10 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

11 History of Engineering Design Methodology Mechanism have become something easy to do in CAD but the notion and relevance of Kinematic Mobility has been lost. 11 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

12 History of Engineering Design Methodology Mechanical Design ends up with over-weighted focus on the selection of Machine Elements (Bearings, Gears, Splines etc.) 12 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

13 History of Engineering Design Methodology Where does the engineering designer learn how to design predictable & robust products? 13 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

14 History of Engineering Design Methodology Connecting the dots 14 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

15 The future of Engineering Design Valcon Six Theta We now teach the principles of this new paradigm to all Mechanical and Design MASTERS students. 15 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

16 Six Theta DTU Education P S T Increase Predictability Outcome: Less complexity, more predictable designs Decrease Sensitivity Outcome: Greater product quality with cheaper production Allocate Tolerances Outcome: Reduced Waste throughout supply chain 16 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

17 Six Theta Predicts it Frist Generation Six Theta Index 1 Six Theta Compliant Never had a single variation related issue - outsourced manufacturing to a China without any issues to product units. 17 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

18 Six Theta Predicts it Design Agency - Visual design - Part design - Documentation - Working principle - Flow modelling - Software Second Generation Six Theta Non-compliant Not a single interface didn t require rework 8 revisions (av.) on drawings Delay of launch by 3 months Almost bankrupted Six Theta Index DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

19 Six Theta Predicts it Six Theta Index >30 PCB didn t fit to base Consequences: Scrap Six Theta Index 12 Rotor not centered Consequences: Adding weight 19 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

20 The top 10% of graduates receive a Valcon Six Theta DTU diploma Thomas J. Howard, PhD Associate Professor Robust Design Group thow@mek.dtu.dk Tel: A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away Antoine de Saint-Exupéry 20 DTU Mechanical, Technical University of Denmark Six Theta An academic perspective Nov.2017

21 THERE IS A NEW BRICK IN TOWN World-class (0-3) Above average (3-10) Average (10-20) World-class 0 Average 11 SIX THETA POWERED TRADITIONAL Below average (20- ) Six Theta Index 21 Source: Valcon Six Theta powered analyses

22 Automotive World-class (0-3) Above average (3-10) World-class 1 Above average 4 SIX THETA POWERED TRADITIONAL Average (10-20) Below average (20- ) Six Theta Index 22 Source: Valcon Six Theta powered analyses

23 Med-Tech Company World-class (0-3) Above average (3-10) Above average 8 SIX THETA POWERED Average (10-20) Below average (20- ) Below average 22 TRADITIONAL Six Theta Index 23 Source: Valcon Six Theta powered analyses

24 Wind Power Industry World-class (0-3) Above average (3-10) Above average 5 SIX THETA POWERED Average (10-20) Average 16 TRADITIONAL Below average (20- ) Six Theta Index 24 Source: Valcon Six Theta powered analyses

25 Client case World-class (0-3) Above average (3-10) World-class 2 SIX THETA POWERED Average (10-20) Average 18 TRADITIONAL Below average (20- ) Six Theta Index 25 Source: Valcon and client Six Theta powered analyses

26 Client s situation MedTech company Global presence No. 1 or 2 in all markets Significant organic and non-organic growth over recent years Sales or technically motivated organisation Profitable CLIENT PRESENCE 26

27 Client s challenges Sustain and increase growth rate Realise synergies across the globe Plateaued, increased scalability needed to move forward CLIENT PRESENCE 27

28 TRADITIONAL SUPPLY CHAIN PROGRAMME REDUCING COST AND INCREASING FLEXIBILITY, GROWTH AND SCALABILITY 1. DATA ANALYSIS 2. PROCESS ANALYSIS 3. SET-UP SCENARIOS 4. PLAN AND EXECUTION PROFITABILITY SUPPLIER DATA WHO? WHERE? SUPPLIER ACCOUNTS/ LIS WHAT? REALISABILITY 28

29 SUPPLY CHAIN PROGRAMME POWERED BY SIX THETA VALUE REALISATION DOUBLED EFFECTS IN COST REDUCTIONS -30% INCREASED TRANSPARENCY VIA OBJECTIVE CRITERIA AND NEW SHARED VOCABULARY TRULY CROSS-FUNCTIONAL APPROACH INCREASED INNOVATION OVERALL SIGNIFICANTLY REDUCED COMPLEXITY Initial base Traditional supply chain programme Six Theta powered programme Base after our Six Theta powered supply chain programme 29

30 SIX THETA POWERED SUPPLY CHAIN ELEVATES SUPPLY CHAIN TO THE NEXT LEVEL 30

31 NEXT LEVEL SUPPLY CHAIN IS PREDICTABLE ENGINEERING OBJECTIVE CRITERIA MEASUREMENT AND VALCON EXPERIENCE SHOW COST REDUCTION REALISATION ELIMINATING OVER CONSTRAINS World-class (0-5%) Above average (5-15%) Average (15-30%) FURTHERMORE, SIX THETA SIGNIFICANTLY IMPROVES QUALITY AND THE ABILITY TO MEET CUSTOMER NEEDS Below average (>30%) 31 Source: Valcon Six Theta powered analyses

32 Stig Jessen Senior Partner sixtheta.com valconconsulting.com Meet me at stand 18 Berlin A Berlin D+E 18 32

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