SIX THETA SIX THETA EFFECTS IN OPERATIONS TIME TO MARKET ACHIEVE THE NEXT LEVEL OF OPERATIONAL EXCELLENCE WITH SIX THETA.

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Cameron Armstrong
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1 SIX THETA ACHIEVE THE NEXT LEVEL OF OPERATIONAL EXCELLENCE WITH SIX THETA SIX THETA EFFECTS IN OPERATIONS TIME TO MARKET 27 November 2017

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

3 No. of concerns No. of concerns TIME TO MARKET AND NPI HAVE ALWAYS BEEN A CONSTANT AND INCREASING CHALLENGE The challenge is to decrease time to market, while improving quality and reducing the resource demand throughout the whole chain at the same time most know the theory but few manage to front load in time. TIME-TO-MARKET PROCESS MARKET RESEARCH IDEA CONCEPTUAL PRODUCT DESIGN CONCEPTUAL EQUIPMENT DESIGN DETAILED PRODUCT DESIGN DETAILED DESIGN EQUIPMENT AND PROCESSES RAMP-UP SUPPLY CHAIN PIPELINE FILL SUPPLY CHAIN REPLENISHMENT TYPICAL NPI PROCESS FRONTLOADING AND ELIMINATION OF DESIGN OVER-CONSTRAINTS Six Theta powered Handover Handover Time Time 3

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

5 Definition of robust design GIVE THE WORD TO PROFESSOR DR. HOWARD 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

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

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

centered Consequences: Adding weight 19 DTU Mechanical,

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

dk Tel: 0045 45 25 47 41 A designer knows he has achieved perfection not when there is nothing left to

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

22 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 22 Source: Valcon Six Theta powered analyses

23 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 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 25 Automotive case

26 THIS CLIENT First-tier automotive supplier to highend OEMs Facilities world-wide 80% of revenue and growth comes from new products time to market is defined by the OEM s HOW TO MAKE WORLD- CLASS PRODUCTS BEYOND COMPETITION IN NPI QDC? 26

27 TRADITIONAL THINKING DECREASED LEAD TIME SOLVED BY ADDING MORE RESOURCES OVER-CONSTRAINTS LEFT TO BE REENGINEERED/CONTAINED IN PRODUCTION LIMITED SUCCESS OF FRONTLOADING STILL LIMITED SUCCESS OF FRONTLOADING AND MORE PRESSURE ON ORGANISATION PROBLEMS RESOURCES 2013 PROBLEMS RESOURCES 2015 RESOURCES NEEDED TO MEET Q D RESOURCES NEEDED TO MEET Q D LEAD TIME NEW REQUIRED LEAD TIME DETAILED DESIGN PRODUCT DETAILED DESIGN EQUIPMENT AND PROCESSES RAMP UP DETAILED DESIGN PRODUCT DETAILED DESIGN EQUIPMENT AND PROCESSES RAMP UP 27

28 HOW TO OVERCOME THIS DIAGNOSTICS SHOWED THE FOLLOWING CAUSES End-2-End value stream management Product design over-constraints Equipment interfaces between product and design Gates subjective Local project management 28

29 TRADITIONAL PARADIGM THE PROBLEMS IN LACK OF FRONTLOADING RESULTED IN SLOW RAMP UP PROBLEMS RESOURCES 2015 LOW OEE + SLOW RAMP-UP NEW REQUIRED LEAD TIME EXTRA EQUIPMENT LINES DETAILED DESIGN PRODUCT DETAILED DESIGN EQUIPMENT AND PROCESSES RAMP UP 29

30 KEY DESIGN ISSUES TRADITIONAL PRODUCT ISSUE Five over-constraints leading to four extra iterations in product tool design SIX THETA POWERED PROCESS ISSUE (PRODUCT/EQUIPMENT) Three over-constraints in pick and place in automated assembly line Rz Force applied to single ejector mark 30

31 SIX THETA IMPROVED BOTH PROJECT AND EQUIPMENT/ PRODUCT INTERFACES PRODUCT PRODUCT/EQUIPMENT INTERFACE SIX THETA POWERED World-class 3 TRADITIONAL Above average 8 Above average 6 SIX THETA POWERED Below average 20 TRADITIONAL Six Theta Index Six Theta Index 31

32 EFFECTS TRADITIONAL 2105 OEE + SLOW RAMP-UP SIX THETA POWERED 2017 FAST OEE RAMP-UP (NEW PRODUCTS) EXTRA EQUIPMENT TO COMPENSATE FOR LOW OEE ~30% Six Theta powered MAXIMUM OEE (70% IN SIX WEEKS) 32

33 OPERATIONAL EXCELLENCE POWERED BY SIX THETA OUTSTANDING RESULTS 30% REDUCED TIME TO MARKET POSTPONEMENT OF CAPEX LOWER RISK LOWER ZERO-POINT REVENUE ESTIMATED 20-30% LESS RESOURCE DEMAND IN ENGINEERING AND RAMP- UP PHASE 33

34 MEET ME AT STAND 18 Klaus Godsk Senior Partner sixtheta.com valconconsulting.com Berlin A Berlin D+E 18 34

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

SIX THETA ACHIEVE A STRONGER AND MORE EFFICIENT SUPPLY CHAIN WITH SIX THETA 28 November 2017 VALCON LEAVES GLOBAL FOOTPRINTS Established Annual growth rate Employees Operating countries 2000 15% +200 38