Archive for the ‘Manufacturing Competitiveness’ Category
What is Design for Manufacturing and Assembly?
Design for Manufacturing (DFM) is all about reducing the cost of piece-parts. Design for Assembly is all about reducing the cost of putting things together (assembly). What’s often forgotten is that function comes first. Change the design to reduce part cost, but make sure the product functions well. Change the parts (eliminate them) to reduce assembly cost, but make sure the product functions well.
Paradoxically, DFM and DFA are all about function.
Here’s a link to a short video that explains DFM and DFA: link to video. (and embedded below)
Organizationally Challenged – Engineering and Manufacturing
Our organizations are set up in silos, and we’re measured that way. (And we wonder why we get local optimization.) At the top of engineering is the VP of the Red Team, who is judged on what it does – product. At the top of manufacturing is the VP of the Blue Team, who is judged on how to make it – process. Red is optimized within Red and same for Blue, sometimes with competing metrics. What we need is Purple behavior.
Here’s a link to a short video (1:14): Organizationally Challenged
And embedded below:
Let me know what you think.
We must broaden “Design”
Design is typically limited to function – what it does – and is done by engineering (red team). Manufacturing is all about how to make it and is done by manufacturing (blue team). Working separately there is local optimization. We must broad to design to include both – red and blue. Working across red-blue boundaries creates magic. This magic can only be done by the purple team.
Below is my first video post. I hope to do more. Let me know what you think.
The Supreme Court of Technology
The Founding Fathers got it right with three branches: legislative to make laws; judicial to interpret laws; and executive to enforce them. Back then it was all about laws, and the system worked.
What the Founding Fathers could not realize was there was a powerful, pre-chrysalis force more powerful than laws, whose metamorphosis would exploit a gap in the three branch system. Technology has become a force more powerful than laws, and needs its own branch of government. We need a Supreme Court of Technology. (Think Ph.D. instead of J.D.)
Technology is the underpinning of a sustainable economy, an economy where citizens are well-educated, healthy, and happy, and where infrastructure is safe and supports the citizens’ needs. For countries that have it, technology generates the wealth to pay for education, healthcare, and bridges. Back then it was laws; today it’s technology.
The Founding Fathers knew interpretation of laws demanded consistency, consistency that transcended the election cycle, and, with its lifetime appointment, the Supreme Court was the mechanism. And it’s the same with technology: technology demands consistency of direction and consistency of purpose, and for that reason I propose a Supreme Court of Technology.
The Chief Justice of Technology and her Associate Justices set the long term technology policy for the country. They can be derided for its long time horizon, but they cannot be ousted for making the right decisions or their consistency of purpose. The Justices decide how to best spend their annual budget, which is substantial and adjusts with inflation and population. Since they are appointed for life, the Justices tell Congress how it goes with technology (and to stop with all this gridlock gamesmanship) and ask the President for her plan to implement the country’s technology policy. (Technology transcends political parties and election cycles.)
With the Supreme Court of Technology appointed and their first technology plan in place (think environment and energy), the country is on track to generate wealth sufficient to build the best educational system in the world (think creativity, art, science, math, and problem solving) to fuel the next generation of technology leadership.
Make your green programs actionable
There’s a big push to be green. Though we want to be green, we’re not sure how to get there. We’ve got high-level metrics, but they’re not actionable. It’s time to figure out what we can change to be green.
One way manufacturers can be green is to reduce their carbon footprint. That’s one level deeper than simply “being green,” but it’s not actionable either. Digging deeper, manufacturers can reduce their carbon footprint by generating less greenhouse gases, specifically carbon dioxide. Reducing carbon dioxide production is a good goal, but it’s still not actionable.
Looking deeper, carbon dioxide is the result of burning fossil fuels,
Want to be green? Look to your product.
We’re starting to come to terms with the green revolution; we’re staring to realize that green is good for our planet and even better for our business. But how do we put greenwashing behind us and truly make a difference?
To improve recyling, find the non-recyclable stuff in your product and design it out. Make a Pareto chart of non-recyclable stuff (by weight) by major subassembly, and focus the design effort on the biggest brown bars of the Pareto. (Consider packaging a major subassembly and give it its own bar.)
To improve carbon footprint of logistics, find the weight and volume of your product and design out the biggest and heaviest. Make a Pareto chart of weight by major subassembly, and focus the design effort on the heaviest brown bars. Make a Pareto chart of volume by major subassembly, (Make cube around the subassembly and calculate volume in mm3.) and focus the design effort on the biggest bars. (Don’t forget the packaging.)
To improve energy efficiency of your factory, find electricity consumption and design it out. Make a Pareto chart of electricity consumption by major process step then map it to the product – to the element of the product that creates the need for electricity, and focus the design effort on the biggest bars.
Going forward, here are some thoughts to help grow your business with green (and save the planet):
- It’s easier to design out brown than to design in green.
- To design out brown, you’ve got to know where it is.
- The product creates brown – look to the product to eliminate it.
Secret Sauce that Doubles Profits
Last month a group of engineers met secretly to reinvent the US economy one company at a time. Here are some of the players, maybe you’ve heard of them:
Alcoa, BAE, Boeing, Bose, Covidien, EMC, GE Medical, GE Transportation, Grundfos, ITT, Medrad, Medtronic, Microsoft, Motorola, Pratt & Whitney, Raytheon, Samsung, Schneider Electric, Siemens, United Technologies, Westinghouse, Whirlpool.
Presenter after presenter the themes were the same: double profits, faster time to market, and better products – the triple crown of product development. Magic in a bottle, and still the best kept secret of the product development community. (No sense sharing the secret sauce when you can have it all for yourself.)
Microsoft used the secret sauce to increase profits of their hardware business by $75 million; Boeing recently elevated the secret methodology to the level of lean. Yet it’s still a secret.
What is this sauce that doubles profits without increasing sales? (That’s right, doubles.) What is this magic that decreases time to market? That reduces engineering documentation? That reduces design work itself? What is this growth strategy?
When trying to spread it on your company there are some obstacles, but the benefits should be enough to carry the day. First off, the secret sauce isn’t new, but double the profits should be enough to take a first bite. Second, its name doesn’t roll off the tongue (there’s no sizzle), but decreased time to market should justify a taste test. Last, design engineering must change its behavior (we don’t like to do that), but improved product functionality should be enough to convince engineering to swallow.
There are also two mapping problems: First, the sauce has been mapped to the wrong organization – instead of engineering it’s mapped to manufacturing, a group that, by definition, cannot do the work. (Only engineering can change the design.) Second, the sauce is mapped to the wrong word – instead of profit it’s mapped to cost. Engineering is praised for increased profits (higher function generates higher profits) and manufacturing is responsible for cost – those are the rules.
With double profits, reduced time to market, and improved product function, the name shouldn’t matter. But if you must know, its name is Design for Manufacturing and Assembly (DFMA), though I prefer to call it the secret sauce that doubles profits, reduces time to market, and improves product function.
Improve the US economy, one company at a time.
I think we can turn around the US economy, one company at a time. Here’s how:
To start, we must make a couple commitments to ourselves. 1. We will do what it takes to manufacture products in the US because it’s right for the country. 2. We will be more profitable because of it.
Next, we will set up a meeting with our engineering community, and we will tell them about the two commitments. (We will wear earplugs because the cheering will be overwhelming.) Then, we will throw down the gauntlet; we will tell them that, going forward, it’s no longer acceptable to design products as before, that going forward the mantra is: half the cost, half the parts, half the time. Then we will describe the plan.
On the next new product we will define cost, part count, and assembly time goals 50% less that the existing product; we will train the team on DFMA; we will tear apart the existing product and use the toolset; we will learn where the cost is (so we can design it out); we will learn where the parts are (so we can design them out); we will learn where the assembly time is (so we can design it out).
On the next new product we will front load the engineering work; we will spend the needed time to do the up-front thinking; we will analyze; we will examine; we will weigh options; we will understand our designs. This time we will not just talk about the right work, this time we will do it.
On the next new product we will use our design reviews to hold ourselves accountable to the 50% reductions, to the investment in DFMA tools, to the training plan, to the front-loaded engineering work, to our commitment to our profitability and our country.
On the next new product we will celebrate the success of improved product functionality, improved product robustness, a tighter, more predictable supply chain, increased sales, increased profits, and increased US manufacturing jobs.
On the next new product we will do what it takes to manufacture products in the US because it’s the right thing for the country, and we will be more profitable because of it.
If you’d like some help improving the US economy one company at a time, send me an email (mike@shipulski.com), and I’ll help you put a plan together.
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p.s. I’m holding a half-day workshop on how to implement systematic cost savings through product design on June 13 in Providence RI as part of the International Forum on DFMA — here’s the link. I hope to see you there.
I can name that tune in three notes.
More with more doesn’t cut it anymore, just not good enough.
The behavior we’re looking for can be nicely described by the old TV game show Name That Tune, where two contestants competed to guess the name of a song with the fewest notes. They were read a clue that described a song, and ratcheted down the notes needed to guess it. Here’s the nugget: they challenged themselves to do more with less, they were excited to do more with less, they were rewarded when they did more with less. The smartest, most knowledgeable contestants needed fewer notes. Let me say that again – the best contestants used the fewest notes.
In product design, the number of notes is analogous to part count, but the similarities end there. Those that use the fewest are not considered our best or our most knowledgeable, they’re not rewarded for their work, and our organizations don’t create excitement or a sense of challenge around using the fewest.
For other work, the number of notes is analogous to complexity. Acknowledge those that use the fewest, because their impact ripples through your company, and makes all your work easier.
Pull the product lever, now.
If you’re reading this you’ve probably survived the great recession. You had to do some radical stuff, but you pulled it off. You cut to the bone as demand fell off, but you managed to shed staff and capacity and kept your company alive. Congratulations. Amazing work. But now the hard part: increased demand!
Customers are ordering, and they want product now. You’re bringing on capacity, re-hiring, and re-training, and taking waste out of your processes with lean and even extending lean to your supply chain and logistics. You’re pulling the levers as hard as you can, but you know it won’t be enough. What you need is another lever, a big, powerful, magical lever to make everything better. You need to pull the product lever.
So, you’re telling me to look at my product as a way to meet increased demand? Yes. To get more products out of few factories? Yes. To make more products with a short staff? Yes. To reduce supply chain complexity? Yes. Pull the product lever, pull it hard, and pull it now.
But meeting increased demand is a manufacturing/supply chain problem, right? No. What about flogging suppliers for unreasonably short lead times? No. What about quickly bringing on unproven suppliers? No. What about bringing on a totally new factory by next week? No. What about using folks of the street to make the product? No. Pull the product lever, pull hard, and pull it now.
Dust off the value stream map of your supply chain and identify the three longest lead times, and design them out of your product. Dust off your routings and identify the three largest labor times, and design them out of our product. Dust off your BOMs and identify the three highest cost parts, and design them out of your product. Pull the product lever. Then, identify the next three, and pull it again. Then repeat. Pull it hard, and pull it now.
Meeting increased demand will be challenging, but your customers and stockholders deserve your best. So, pull hard on all your levers, and pull them now.
Missing Element of Lean – Assembly Magazine article
With its strong focus on waste reduction of processes, lean has been a savior for those who’ve made it out of the great recession. But what’s next? I argue the next level of savings will come from adding a product focus to lean’s well-developed process focus. For the complete Assembly Magazine article (one page), click here.
Mike Shipulski