Assure 97 - What Drives our ECAD Strategy? A Programme of Change

# 1 19/11/97 N.Whitehall

What Drives our ECAD Strategy ?

Neil Whitehall

Electronics Process Manager

GEC Marconi Avionics

Radar Systems Division

[email protected]


What Drives our ECAD Strategy ?

1. Intuition ?

2. The ECAD Marketplace ?

3. What can you do to focus your intuition ?

4. What elements of your ECAD Vendor’s Strategy should be built into your own company’s design process ?

5. How do you answer Q3 without relying completely on intuition ?


Alternatives to ‘Intuition Alone’

What could add the necessary focus ?• Theory of Constraints (TOC).• Just In Time (JIT).• Quality Optimisation.• Concurrent Engineering (CE).• SEI Capability Maturity Model (CMM).• Benchmarking.• Phases of Development.


Theory of Constraints (TOC)


TOC

The history of science is divided into three phases of increasing maturity of approach.• Phase 1 : Classification (Ancient Greeks)• Phase 2 : Correlation (Ptolemy)• Phase 3 : Effect-Cause-Effect (Newton)

TOC uses this three phase approach as the basis of all problem solving activities.


TOC

Goldratt’s work adds a 5 stage focusing technique.• Step 1 : Identify the System’s Constraint(s).• Step 2 : Decide how to exploit the System’s

Constraint(s).• Step 3 : Subordinate everything else to the above

decision.• Step 4 : Elevate the System’s Constraint(s).• Step 5 : If, in the previous steps, a constraint has been

broken, go back to Step 1.• NB : Don’t allow inertia to cause a System Constraint.


TOC

What is a constraint ?• An obstacle that prevents the company from achieving it’s

goal.

What is the goal of the company ?• To make more money, now and in the future.

How do we get nearer to our goal ?• Any step that simultaneously ....

• Increases Throughput (Rate of Sales)• Unlimited, except by the market.

• Decreases Cost of Inventory• Limited by Zero, Eventually nothing left to minimise.

• Decreases Cost of Material• Limited by Zero, Eventually nothing left to minimise.


TOC

Examples of Constraints ?

How do you identify the constraints ?• Find a “Level 1 Effect”.

What is a “Level 1 Effect” ?• At a “High level” within organisation it attracts Visibility.• Linked to throughput at a business/divisional level.

How do you relate Level 1 Effects to Constraints within the Design Process ?• Start at the output of the process.• Back-trace using the 5 step focusing technique.• Link underlying problems causing “Level 1 Effect” to the

(possible) constraint within the Design Process.


TOC

THE GOAL : TO MAKE MONEY

Bottom line measurements ...

NET PROFIT(Absolute)

RETURN ON INVESTMENT

(Relative)

CASH FLOW(Survival)

ACTIONS

What is the bridge ?


TOC

THE DIRECT IMPACT : OPERATIONAL MEASUREMENTS AND THE BOTTOM LINE

NET PROFIT RETURN ONINVESTMENT

CASH FLOW

THROUGHPUT INVENTORYOPERATINGEXPENSE


TOC

THE COMPETITIVE EDGE IMPACT : OPERATIONAL MEASURES LINKED TO ACTIONS THROUGH THE BRIDGE.

NET PROFIT RETURN ONINVESTMENT

CASH FLOW

THROUGHPUT(FUTURE)

OPERATINGEXPENSEINVENTORY

COMPETITIVE EDGE


TOC

Supported by the Avraham Goldratt Institute.• http://www.goldratt.com # TOC.• http://www.rogo.com/cac # ’Crazy About Constraints’.• tel : (01628) 74468 # Courses and Book Orders.

Texts• ‘The Theory of Constraints’ (TOC)

• ISBN 0-88427-085-8• ‘The Goal (Introduction/Manufacturing)

• ISBN 0-88427-061-0• ‘It’s Not Luck’ (Supply Chain Management)

• ISBN 0-566-07637• Speak to Analogy about ‘Flexible Access’ and ‘Open Access’

• ‘The Race’ (Manufacturing)• ISBN 0-88427-062-9

• ‘Critical Chain’ (Project Management)• ISBN 0-88427-153-6


JIT


JIT

MONTHS

HIGHINVENTORY

Engineeringchange one monthafter start of order

MONTHS

LOWINVENTORY

Improved product willbe available only

several months after engineering change.

Improved product willbe available in less

than two weeks.

HIGH VERSUS LOW INVENTORY SYSTEMS :ENGINEERING CHANGES


JIT

HIGH INVENTORY LOW INVENTORY

HIGH VERSUS LOW INVENTORY SYSTEMS :DUE DATE PERFORMANCE.

Production starts based on a guess. Weoscillate between excess finished goods inventory and missed due dates.

Production starts based on goodknowledge. Due date performance >> 90%

FORECAST VALIDITY

% %


JIT

The Role of Reduced Inventory in Establishing a Competitive Edge.• Product

• Quality• Features (Engineering)

• Price• Higher Margins• Lower Investment per Unit

• Responsiveness• Due Date Performance• Shorter Quoted Lead Times


Framework for Synchronised Manufacturing

Design Engineering

MRP

CDMPDM

Manufacturing

Procurement

PDM = Product Data ManagementMRP = Materials Requirements PlanningCDM = Component Data Management


JIT

CompletionDate

FB

FB

FB

FB

FBProjectBufferDE

DE

DE

DE

DE

Critical Chain

Critical Path

FB Feeding Buffer

DE Design Engineer


Quality Optimisation



Six Sigma.• Focuses on notional ‘Defects’ rather than Product Dependability.• Why choose ‘Six’ ? Why not 3, 4, 5.5, 6.1 or 7 ?• How does ‘Six’ relate to real product dependability.• What would rigid adherence to ‘Six’ cost ?

Quality Optimisation• What do failures do to ‘Time Buffers’ in Production ?• How do you ensure that the most cost effective solution is

designed in ?

An excellent reference ...• ‘Optimising Quality in Electronics Assembly’• James Allen Smith & Frank Whitehall.• McGraw Hill, 1997.• ISBN 0-07-059229-2.



Yield predictionYield prediction Yield maximisationYield maximisation Design centeringDesign centering

yield=100%Phase 2

yield < 100%Phase 1

robustPhase 3

CPK=!MAX



Cpl LSL

3

Cpu USL

3Cpk min Cpl,Cpk

LSL USL

safetymargin

¤ The Process Capability Ratio

measures the robustness of a

design

¤ A Cpk of 1 is equal to a yield of

100%

¤ The higher the Cpk, the more

reliable the product will operate in

the field.



Apply Pareto Analysis ?

5% 10% 15% 20% 25% 30% 35%

Soldering Failures

Component Failures

Parametric Yield Loss

Build Errors

Catastrophic Design Errors

PERCENT OF TOTOAL FAILURES

Attributed to ...


Concurrent Engineering (CE)



Concurrent Engineering (CE)• Definition #1 : Cultural Focus.

• “defined as the earliest possible integration of the overall company’s knowledge, resources, and experience in design, development, marketing, manufacturing, and sales into creating successful new products, with high quality and low cost, while meeting customer expectations.”

• Sammy G. Shina.• Concurrent Engineering and Design for

Manufacture of Electronic Products, 1991.• ISBN 0-442-00616-0.



Concurrent Engineering (CE)• Definition #2 : Logistical Focus.

• “Get the right data, To the Right Place, At the Right Time, In the Right Format”.

• Don Carter & Barbara Stillwell Baker.• ‘Concurrent Engineering - The Product

Development Environment for the 1990s’.• Volume 1 & 2 : ISBN 0-201-56349-5.

Can data be managed in the same way as inventory in production ?

Can people be disciplined enough to change their own working cultures ?



Carter’s book introduces the concept of a layered approach to the support of the process of Concurrent Engineering.• Layer 1 : Inter-operable Network

Computing.• Layer 2a : Inter-operable Tools.• Layer 2b : Inter-operable Tasks.• Layer 3 : Product Data Management.• Layer 4 : Workflow Management &

Metrics.• Layer 5 : Decision Support.


SEI Capability Maturity Model



People Process Technology

Capability

Product/Service

Quality

Combine todefine

In turn defines



OrganisationalFactors

BusinessFactors

SE-CMM

Organisation’s Engineering

ProcessDevelopment

=+

* Size* Structure* Culture* Roles

* Strategic Focus* Market Pull Vs Technology Push* Contract Vs Market Driven* Technology/ Method Support

* Focus Area (Domains)

* Capability * Support

Guidance * Design of Process

* Development of Process * Validation & Verification of Process



SE-CMM

DOMAIN PORTION CAPABILITY PORTION

Result of an appraisal is a capabilitylevel profile establishing organisationalsystems engineering process capabilityin each process area.

**

**

**

*

**

Continuously Improving

Quantitatively Controlled

Well Defined

Planned and Tracked

Performed

InitialCapability Levels

Organisation

Project

EngineeringProcess Area Categories

Process AreasCommon Features

Base PracticesGeneric Practices

Generic Practices

*

*

*

1 to n

1 to n

1 to n

1 to n

1 to nBase Practices

Capability LevelPA

123.N

0 1 2 3 4 5

AppraisalResult


SEI CMM ‘Staircase’ of Improvement

0

1

2

3

4

5

NOTPERFORMED

PERFORMEDINFORMALLY

Base Practice Performed

PLANNED &TRACKED

Commitmentto Planning

DisciplinedTracking &Verifying ofPerformance

WELL-DEFINED

Standard ProcessDefined

Standard ProcessTailored

Defined Processis Performed

QUANTITATIVELYCONTROLLED

Measurable QualityGoals Defined

Linkage betweenProcess Capabilityand Established Goals

Objective managementof performance

CONTINUOUSLYIMPROVING

Quantitative ProcessEffectiveness isEstablished

ContinuouslyImproving ProcessEffectiveness


Benchmarking


Benchmarking Process


BenchmarkMetrics

BenchmarkPractices

Benchmark Gapa) How Muchb) Wherec) When

How To Close Gapa) Improved Knowledgeb) Improved Practicesc) Improved Processes

Management Commitment

Organisation & Communication

Employee Participation

Superior Performance


Projecting the Benchmark Gap

Time Now Endpoint(Years)

PerformanceMetricUnderMeasurement

(Product orProcessRelated)

IndustryPractices

BenchmarkGap

SuperiorPerformance

?


Benchmarking Steps

1. Identify what is to be benchmarked.2. Identify Comparative Companies.3. Determine Data Collection Method and Collect Data.

4. Determine Current Performance Gap.5. Project Future Performance Levels.

6. Communicate benchmark findings and gain acceptance.7. Establish Functional Goals.

8. Develop Action Plans.9. Implement Specific Actions and Monitor Progress.10. Recalibrate Benchmarks.

* Leadership Position Attained.* Practices Fully Integrated Into Process.

Planning

Analysis

Integration

Action

Maturity


A Benchmarking Appraisal

-40 -30 -20 -10 0 10 20

Design Process ControlTechnologyFacilitiesElectronic Design TeamElectronic Design ProcessProject Design ProcessTrouble ReportsInterfaces To/From the TeamStandardsCustomer RequirementsProject ManagementElectronic Design DataComponent Engineering


A Correlation Between Divisions

-20 -15 -10 -5 0 5 10

Customer Requirements

Technology

Design Process Control

Component Engineering

Project Design Process

Interfaces To/From Team

Electronic Design Data

Electronic Design Process

Electronic Design Team

Facilities

Standards

Trouble Reports

Project Management


A Benchmarking Trend Analysis

0

20

40

60

80Project Management

Customer Requirements

Project Design Process

Component Engineering

Electronic Design Data

Electronic Design Team

Electronic Design Process Interfaces to/from Team

Facilities

Technology

Standards

Trouble Reports

Design Process Control

1997

1996

Best in Class

Aerospace Average


Benchmarking & Planning

BenchmarkingInvestigations

BenchmarkPartnerVisits


Planning Analysis Integration Action Maturity

Long RangePlans

AnnualPlans &Budgets

Time

Mid YearStart Year End Year

Special Benchmarking Study

BenchmarkMetrics &Practices Recalibrate


Phases of Development


Phases of Development

Phase 1 Phase 2 Phase 3 Phase 4

Focus Delivery &ProcessPlanning

Quality &ProcessControl

Cost &ProcessImprovement

Variety &SystemIntegration

Culture

Structure

Leader/Follower

Functional Matrix

Participatory Empowering

Product Team Project Team

Innovative

CMMLevel 4

‘Managed’

CMMLevel 2

‘Repeatable’

CMMLevel 3

‘Defined’

CMMLevel 1‘Initial’

CMMLevel 5

‘Optimised’


A Simplistic ‘Recipe’ Approach


13 CMMProcessAreas

ProcessSupport :

Carter’sLayers

CMMLevel 4

‘Managed’

CMMLevel 2

‘Repeatable’

CMMLevel 3

‘Defined’


CMMLevel 5

‘Optimised’

People

Technology

QualityOptimisation


Questions and Answers.

Assure 97 - What Drives our ECAD Strategy? A Programme of Change

Design

Transcript of Assure 97 - What Drives our ECAD Strategy? A Programme of Change