A. Product’s Basic Functions
Product’s Basic Functions are used to generate Concept Designs for now and the future (incl. long term vision). Also analyzed are product variants, options and take rates in order to understand opportunities for modular designs or platforms.
B. Voice of Customer, Market and Competitive Environment
Product Value Proposition will be defined based on a thorough market and competitive environment analysis. Purchase drivers will be defined correlated to actual and past sales (heat maps), market share evolution, competition offering, trends and regulations.
C. Products under study Teardown
Products under study are torn down using parts or sub-assemblies, typically provided by the assembly plants or spare part warehouses. Functions performed are identified and qualified (e.g. one time, safety, appearance, basic,…). Function cost are established.
Products under study are benchmarked against at least 3 comparable competitors’ products per market and/or region: Direct Competitor, High and Low End. Product’s system basic functions design are benchmarked internally and against parallel industries. Additional competitors are also virtually benchmarked using data available online.
E. Supply Chain Review
Global Supply Chain footprint, internal and external, is mapped including sales network and density. Make versus Buy strategies are integrated as well as LTA, MSA, etc. contracts with key or strategic suppliers.
F. Product Roadmap Workshop
Design concepts are generated based on previously identified Product’s Basic Functions, on Megatrends, on upcoming regulations and after sales data (spare & wear parts, repairs,…). Offering and other variations are integrated in the financial roadmap.
G. Ideation Workshops for sub-systems’, modules’, platforms’ Functions
Multiple Design Change Proposals are created to fulfill “wanted” functions ie. ‘What the customer is willing to pay for’. Functions brainstormed are based on either existing comparable products or detailed concepts. Crowd Based Innovation may be used.
H. Evaluation of Design Change Proposals. Selection of set based designs
The use of multiple sources generates hundreds of ideas that after a feasibility check can either be grouped in a set or need to be kept separate since they are mutually exclusive from others. All sets or DCPs are technically and financially evaluated according to a formal process.
I. Standardization – Platforms – modules – interchangeable sets op parts
It is crucial to understand the product portfolio, the market segmentation and ‘go-to-market’ strategy to establish platforms, common interfaces, and common, backwards compatible parts.
J. Parametric Costing
Software is used to identify optimal cost for functions from a design perspective, piece cost is studied to determine cost drivers, then should cost is determined against cost libraries.
Estimated cost for proposed Design Sets are replaced with solid offers based on supplier quotations or from Operations for make parts. Carry over or carry back are validated. Costed BOMs are rebuilt with new information and expected benefits are formalized.
Execution starts with an implementation Master Plan based on validated assumptions. However, depending on the industry vertical, execution may already start after the Ideation step in the Design phase given the work effort to be completed prior SOP. Visual Management Board with KPI’s and escalation process is set up to follow up execution and mitigate risk.
M. Post SOP
Hand over is made after ramp up to stable production, at defined O.E.E. and with minimum WIP. Skills matrixes are up to date.