Flawless Product Launches

1. MFG/PROMidwest User Group Fall Conference2006 Flawless Product Launches PRESENTED BY John M. Cachat, IQS Dave Doyle, QAD

2. The current “state of the art” in most companies include MS Project & MS Excel. These tools are personal productivity tools – not enterprise business systems. • This presentation will discuss the technology available to execute product launches, not just track how far behind you are. The system must do the work – not just report on it.

3. Product Launch Challenges • What Tools We Have - What We Are Missing • Identifying Waste In The Process • Eliminating Waste In The Process • Optimization – QAD And IQS Integration • Flawless Product Launch - Keys To Success

4. We All Know Poor Launches Are Costly • Or You Wouldn’t Be Here • Products Arrive LATE • Competitor Gets Out First – Cell Phones – Lost Of Sales • Snow Blowers In June – Who Cares – No Sales • Cars Without MP3 Players Or IPod Connectors • Is The Challenge Innovation Or Execution ? • No One Plans To Be Late • They Knew What It Took To Produce The Cell Phones • The Plan Showed Snow Blower Delivery For December • Design Engineers Have IPods And Are Frustrated Too

5. Product Launch -- Its About Execution OYAMA, Japan – August 25, 2006| “Toyota may delay the launch of some of its new models, the company’s president said today, as the world’s No. 2 automaker tries to improve its quality process in order to reduce a spate of recalls that is threatening its reputation” “Watanabe said that the emphasis was on making sure quality procedures were properly carried out, rather than on how much time the process took.” Toyota’s shares fell 60 yen, or 0.95 percent today. Product Launch – It’s A Bottom Line Issue

6. What Is Flawless Launch ? • It Is About Optimizing Constraints • Time • Quality • Cost • Identifying & Resolving Flaws • Reduce Variation • Eliminate Waste • Life Cycle Process • Not Departmental • Not Documents Quality Quality Time Cost Engineering Cost

7. What is my risk? Is the Supplier Performing? Where is the FMEA? What is the status Of my ECN? Is there a control plan? WHY is the Part on hold? What are the key Characteristics? Scheduling Engineering Bill of Material Labor andMaterial Cost Document Vault Shipping What Works – What is Missing

8. Automotive Product Launch • Project Plan • 5 Phases • 23 Elements • 1.0 Plan and Define • 2.0 Product Design and Develop • 3.0 Process Design and Develop • 4.0 Product and Process Validation • 5.0 Feedback, Assessment, Corrective Action

9. Plan and Define Program Project Plan • 1.1 Voice of the Customer • 1.1.1 Market Research • 1.1.2 Historical Warranty and Quality Information • 1.1.3 Team Experience • 1.2 Business Plan/ Marketing Strategy • 1.3 Product/ Process Benchmark Data • 1.4 Product/ Process Assumptions • 1.5 Product Reliability Studies • 1.6 Customer Inputs • 1.7 Design Goals • 1.8 Reliability and Quality Goals • 1.9 Preliminary Bill of Material • 1.10 Preliminary Process Flow Chart • 1.11 Preliminary Special Characteristics • 1.12 Product Assurance Plan • 1.13 Management Support 1.1.2 Historical Warranty and Quality Information 14,000 Parts Per Vehicle x 100 Characteristics Each 1.11 Preliminary Special Characteristics The Devil Is in the Details

10. Its 8:30 Monday Morning …. Do you know where your details are? • 2.1 Design FMEA • 2.2 Design for Manufacturability and Assembly • 2.3 Design Verification • 2.4 Design Reviews • 2.5 Prototype Build - Control Plan • 2.6 Engineering Drawings • 2.7 Engineering Specifications • 2.8 Material Specifications • 2.9 Drawing and Specification Changes • 2.10 New Equipment, Tooling and Facilities Requirements • 2.11 Special Characteristics • 2.12 Gages/ Testing Equipment Requirements • 2.13 Team Feasibility Commitment

11. 2.1 Design FMEA • 2.2 Design for Mfg & Assembly • 2.3 Design Verification • 2.4 Design Reviews • 2.5 Prototype Build - Control Plan • 2.6 Engineering Drawings • 2.7 Engineering Specifications • 2.8 Material Specifications • 2.9 Drawing and Specification Chgs • 2.10 New Equipment, Tooling Req • 2.11 Special Characteristics • 2.12 Gages/ Testing Equipment Req • 2.13 Team Feasibility Commitment Opportunity Gap Create and Use the Detailed Information

12. “But it’s on my project plan …”Project Management vs. Project Execution Subtitle: The Tale of the Dead Docs

13. Project Management vs Project Execution • Project Management tells you • What, When • ProjectExecution • Is doing the What • Execution Details are often managed with attachments • Attachments Become Dead documents that Generate Waste !

14. Documents and Attachments Versus Business Systems FMEA’s Have the Power to Manage Risk FMEA CHANGES FMEA ACTION ITEMS CONTROL PLAN CHANGES FMEA RPN ANALYSIS • FEEDBACKTO ENGINEERING • Severity • - Occurrence • Detection CONTROL PLAN FMEA

15. Eliminate Waste(Lean)Reduce Variation(Six Sigma)

16. Lean Product Launch

17. What you think it is • What it actually is What it should be Tremendous Amount of Non-Value-Added Waste in the Launch Process

18. Example Reporting Nightmare This Is A HUGE Waste Of Labor To Create And Update Reports Because There Is Not An Enterprise Systems That Consolidates The Data For Reporting Even Worse, Every Department Has There Own Version

19. Reduce Variation – Eliminate Waste Opportunity Gap

20. Flawless Launch – IQS Bridge the Gap • IQS fill the gap • Capture Details • Coordinate Details • Communicate Details • Centralized Data Hub • One off Details • Legacy Systems • Visibility • Tell me what, and WHY

21. QAD and IQS Working Together Customer Master Supplier Master Item Master Employee Master Change Management Incoming Receipts

22. NEW PROGRAM APQP

23. APQP TASK LISTS • Customer • Internal • Supplier

24. EXAMPLE CHECKLIST

25. Engineering Portal

26. Management of Characteristics

27. DESIGN FMEA

28. PROCESS FLOW

29. PROCESS FMEA

30. CONTROL PLAN

31. Engineering Change Management is one of the biggest challenges in the product launch and manufacturing

32. Engineering Changes – 3 Steps

33. Employee Suggestion Life Cycle Reject Revoke Reroute PCR Creation Release Notices Route for Approval Electronic Approvals comments NO YES Release/Distribute Convert to PCO

34. Change Management Workflows

35. Change Management – ECR, ECN, ECO

36. Robust Change Management Options • Single Change Request Against Multiple Products • Single Product to Multiple Change Requests • Single Product that Affects Multiple Products

37. Product Change Life Cycle Reject Revoke Reroute PCO Creation Release Notices Route for Approval Electronic Approvals comments NO YES Release/Distribute Planning Systems Dates Implementation

38. Product Change Request Approvals • Workflow • Approved By List • Includes Hierarchy And Stop If Not Approved Then Automatically Posted To Change Request When Product ID Is Entered • Email Notification Is Available • Escalation Available

39. What Current Process is What it Needs to be Identify and Eliminate Waste in the Launch Process Can you identify your current process? Use integrated tools to streamline.

40. Incorporate Integrated tools

41. Summary Flawless Launches • Single Source of Information is Critical • Consolidate Stand Alone Tools • Use Existing Enterprise Software Data • Reduce Variation, Eliminate Waste • Solve the Execution Problem

42. Why IQS and Why Now? • Off the Shelf Integration with QAD • Tangible $ Savings Today • Extension QAD Investment • Document Authoring Solution • Competitive Opportunity • Faster Time to Market • Lower Warranty Costs • Early Warning System • Lower IT Costs

43. Q & A Flawless Product Launches IQS, Inc. 19706 Center Ridge Road Cleveland, Ohio 44116 440-333-1344 www.iqs.com