Fælles projekteksekvering - hvad får det til at lykkes? - Carsten Høst, Danfoss

1 | Global Project Excellence Office - Property of Danfoss Power Electronics

Projects Execution - ’One Company – One Way’Danfoss Power Electronics

Carsten Baun Høst - Director, Global Project Excellence OfficeMay 2015

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Carsten Baun HøstDirector, Global Project Excellence Office

Certified IPMA level B

11 years’ experience with Danfoss Power Electronics,5 years as head of Global Project Excellence Office

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Content

• Introduction• Danfoss Power Electronics

• Background information• Development footprint, organization and project organization

• One common development model• Corporate DBS (Danfoss Business Systems)• Project model development and deployment across sites

• Project managers• Change in profile• Navigate in a global organization

• Project execution across sites• Learnings and observations• Top 5 learnings

• Q&A

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Power Electronics– one of Danfoss’ core businesses

Power Electronics Standard VLT® DrivesCustomised Drives

Power modulesInverters for Solar & Wind

Refrigeration &A/C Controls

• Mechanical Controls• Electronic Controls

• Supermarket Service• Micro Channel Heat

Exchangers

CommercialCompressors • Commercial Compressors • Variable Speed Platforms

• Turbocor

Heating Solutions

• Residential Heating• Electronic Heating Systems• Hydronic Balancing Controls• Burner Components

• Heat Pumps• Heat Recovery Ventilation

District Energy • District Energy Controls• District Energy Stations • Plate Heat Exchangers

Power Solutions • Mobile hydraulics, electro-hydraulics and full-electric solutions

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Our business is power electronics

… high-quality energy-efficientsolutions that save energyand optimize processes

Drives

Solar Inverters Power Modules

21milliontons of CO2 aresaved annuallythrough the solarpowered electricitysystems that areinstalled worldwide.

37milliontons of CO2 aresaved every yearby the 4 million VLT®

variable speed drivesinstalled worldwide fromDanfoss.

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Our customers operate within a wide range ofindustries

• Heating, Ventilation and Air Conditioning• Food & Beverage• Water• Industry (e.g. chemical, textile, material

handling and mining, cranes)• Automotive• Solar and wind energy

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VLT® Drives electronic motor control

• A frequency converter controls electricmotors so they only run at the speednecessary to obtain the desired effect

• Electronic motor control can typically savehalf the energy in pump and fanapplications

• Today, only 8% of all electric motorsglobally are frequency controlled

• Products• Frequency converters• Soft starters• Accessories

37milliontons of CO2 aresaved every yearby the 4 million VLT®

variable speed drivesinstalled worldwide fromDanfoss.

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Customised power stacks

• The power stack is a high quality powerelectrical assembly which ensures themaximum efficiency from powerconversion systems

• Compact and lightweight design withShowerPower® cooling technology

• Modular and scalable design to meet yourneeds

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Customised power modules

• A power module is an electronic switchused in power conversion and motioncontrol applications

• Cutting edge technology designed to meetcustomer requirements

TS16949standard

meets strict AutomotiveIndustry requirements

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Global presence

Danfoss Power Electronic NPD centers• China (Beijing and Haiyan)• Denmark (Nordborg and Graasten)• USA (Loves Park and Milwaukee)• India (Chennai)• Germany (Flensburg, Bruchsal)• Vaasa (Finland)

Worldwide sales and service• 50 Danfoss sales and service companies• More than 200 partner companies,

distributors, agents and service shops

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Content






• Q&A

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Danfoss Power Electronics, R&D & S/C footprint

Haiyan

Beijing

ChennaiPune

TallinnGråsten

Bruchsal

MilwaukeeLoves Park

Vaasa

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Danfoss Power ElectronicsGlobal R&D

Global R&D

Global Project Office

R&D Design CenterChina

R&D Design CenterNorth America

R&D Design CenterEurope

Technology & Innovation

Personal Assistant

R&D Design CenterIndia

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Global project organization 2010Global Project Office

Soren Ejnar Nielsen

Local ProjectManagement Office

Project PortfolioReporting

ResourceManagement

Processes

R&D Processes

Denmark

USA

Consilium

AdminProject committee

DK

Line

Matrix

Project

US

US R&DCN R&D

DK R&D

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Global project organization 2015Global Project Office

Soren Ejnar Nielsen

Local ProjectManagement Office

Project PortfolioManagementSoren Ejnar

Nielsen

Outsourcing ResourceManagementProcesses

Carsten Baun Høst

DK Program 1

DK program 2

DK program 3

US program

CN program

IN program

Global ProjectExcellence Office Denmark

China

USA

India

Denmark

India

Consilium

Special

AdminProject committee

DK

Line

Matrix

Project

US+CN+IN

US R&DCN R&D

DK R&D

Finland FIN

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Project organization

IPD(Integrated ProductDevelopment)

• Co-location• Virtual co-location

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Project model and responsibility

Includes:Innovation Strategy,

Customer Understanding,Technology Management,

Ideation Process,Portfolio Management,

Project Planning

Includes:Effectivelaunch

to customerValue Delivered

Includes:Project Definition, Project Implementation, Market Launch and Ramp Up, MinorProduct AdaptationsActivities are executed according to a scalable Deliverable Plan and follow thedefined Product Development processes.

Idea

Idea

Idea

Idea

Idea

Idea

IdeaIdea. ..

Line C

Line B

Line A

Customersegment

...Target

area

Whole-

salersOE

Ms ...Productlines

. ..

Line C

Line B

Line A

Customersegment

...Target

area

Whole-

salersOE

Ms ...Productlines

Detailed Design &Production Preparation

M0

Front End Project Execution

New Portfolio

NewPortfolio

M1M3 M5

Verification, ProductionPreparation & Launch Execution

Specification &Concept Design

Ramp-up

RunningProduction

M7

Cash

M6

At each gate

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Content






• Q&A

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Processes – our journey

Process project

• Objectives• Remove non-value added complexity

and waste from the ProductDevelopment Process

• Create a lean scalable projectexecution process that can be appliedto projects of different size, risklevels and platforms

• Can be implemented at all PEdevelopment locations

• Increase efficiency for “paper work”tasks

• M0-M1 max 16 working weeks• M1-Release max 12 calendar

months

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Danfoss Power Electronic process

• The PE standard allows for scaling the procedures and deliverables to match the projectcomplexity and size and it describes:• The Project Milestone Plan• The structure of governance for the Integrated Product Development• Roles and responsibilities within projects• Milestone documents and approval

• The generic activity overview shows main Integrated Product Development activitieswith links to processes and templates allowing for efficient project planning.

• The project milestone deliverables matrix supports governance and product qualityassurance

Weeks -6 -5 -4 -3 -2 -1 M0 1 2 3 4 5 6 7 8 9 1 0 11 12 13 14 1 5 16 M1

PRO

JEC

T M

AN

AG

EMEN

TPR

OD

UC

TD

EVEL

OPM

EN

TM

ARK

ETIN

GS

UP

PLY

CH

AIN

Ca pture deta ile d e nginee ri ng re quire ments. Write a nd re vi ew Re qui reme nt Spe cifica tion ( RS)Req.S pe c.

Prouct Cl inics ( Cre ate mock-up and te st it at custome r workshops )

DF MEA workshop ( On se lecte d pa rts of the de sign)

Pe rform sta ke hol der ana lysi s. Write Stakeholder Anal ysi s & Communica ti ons Pla nStake h.+ comm.plan

Ca pture customer requireme nts. Write, re vie w and approv e Ba sic Spe cifica tion ( GS)BasicS pe c.

Bui ld Val ue Proposition pa rt of Ta rge t G roup Gross Profi t ov ervi ew (Target GG P) , and upda te commerci al pa rt of Busine ssCase

U pda te Busi ness CaseBusinessCase

Bui ld Varia ble Cost pa rt of Ta rge t Group Gross Profit ov erv iew (Targe t GG P)

VariableCosttarge t

D ev el op a nd rev ie w Gl oba l Ma rket Introduction Pl an to M1 le ve l GMI P lan

D ev elop and rev iew F iel d Test scope a nd strate gyFie ldTe st P lan

Hi gh L ev elConce ptWorkshop

Le an Voice ofthe CustomerRev ie wWorkshop

De fi ne qua lity goa lsQ uali tyworkshopPa rt 1

Re ssource pl anning anda pprov eme nt

Ressourcesheet

Risk &Uncertai ntyworkshop

Risk &uncert.Log

Projec tpla nningworkshop

ScheduleM1- M6 +M1- M3

Qua lityworkshopPart 2

Qualitypl an

Proj ectle arningsworkshop

Proje ctlearnings

3P workshop

Le an Voice ofthe CustomerWorkshop(L VoC)

Kick-offworkshop

Col lec t i nforma tion a nd buil d Ma rke t F ac t Pac kMarketFac t Pack

Pe rform Customer WorkshopsPla n c ustomer invol ve ment for Customer Workshops

De ve lop a nd re vi ew Proucti on Conc ept, wri te Produc ti on Requireme nt Speci fi cation (PRS)ProuctionRe q. S pe c.(P RS )

De ve lop and re vi ew Sourcing Pl anSourcingplan

Col lect / write Suppl y Chai n mi lestonereccomme nda ti on

S / CMile stoneReccom.

Col lect / write Sa les & Ma rke ting / ProductManage ment mile stone re ccommendation

S &M / PMMile stoneReccom.

Col lect / write Product De ve lopmentmile stone re ccommendation

P DMile stoneReccom.

Rev iew and upda te Business Ca seBusinessCase

Ressourc e pla nni ng a nd a pprove mentRessourceshee t

Plan M0-M1 including workshop scal abil ityHigh le velpl anM0-M1

De ve lop Product Test Rational e. W ri te and rev ie w high le ve l Product Test Pla n ( PTP)ProdcutTest Pl an

D ev elop and rev ie w product conce pt de sign, Write a nd re vi ew Sy ste m Product D esign Spe cifica tion ( Sy stem PDS)Syste mPDS

Conce ptBOM

Update E xe cuti on F act Pack including proje ctle ader mi lestone rec omme nda tion

E xecuti onf act pa ck

E va luate Target Group G ross Profit a nd perform c orrecting ac ti ons ( Ta rge tGG P)

Targe tGGP

Colle ct mile stonere comme nda tions from R& D,S&M, S/C

Col lec t i nforma tion a nd buil d E xe cuti on F act Pack indludi ng proje ct l ea de rmile stone recommendation

E xecuti onF act Pack

Perform proj ectcomplex ityasse ssme nt

Complexityassessment

De ve lop S erv ice Conce pt S tra te gyServiceConceptStrategy

Generic activity list for each phaseWork-streams

Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable1 Bus iness Case 1 Updated Bus ines s Cas e 1 Updated business c ase 3 Request for Q- re leas e 1 U pda ted Business Case Business Cas e upda ted2 Projec t Fac t Pack 2 Top Ris ks & rela ted mitigat ion plan 2 Updated top r isks & re la ted mitiga tion plan 3 2 U pda ted top r isks & rela ted mitigat ion plan Closed Risk p lan2 Projec t comp lexity Asses sment 2 Agreed Resource Plan (M1-M6) 2 Agreed Ress ource Plan (M3-M6) 2 Agreed Ressource Plan (M5-M6) Closed projec t in Cons ilium2 Agreed Resource Plan / team set ting (M0-M1) 1 Commit ted cos t/inv estmen t budget (M1-M6) 1 Cost /investmen t budget update (M3-M6) 1 C ost/ inves tment budge t upda te (M5-M6) Closed CAPEX release plan1 Projec t De liverables 2 Commit ted Schedu le (M1-M6) 2 Commit ted Schedu le (M3-M6) 2 C ommitt ed Schedule (M5-M6) Closed Quality p lan1 Projec t milestone recommendation 2 Commit ted Det ailed Schedu le (M1-M3) 2 Commit ted Det ailed Schedu le (M3-M5) 2 U pda ted Qu ality t arget s and main ac tions Closed handover plan2 2 Qua lity ta rgets and main actions 2 Updated Q uality targe ts and ma in actions 2 U pda ted main stak eho lde r and communic ation p lan Closed Sample cer tifica tes2 3 Ma in st akeholders & related c ommunica tion 3 Updated main stakeholde r and commun ication p lan 3 U pda ted team ro les and responsib ilit ies Pro ject Learn ings/ev alua tion2 2 Team ro les and responsib ilities update 2 Updated team roles and respons ib ilities 3 Fina l Handover Plan Closed /ag reed c ons essions2 2 Project Lea rnings 2 Prelimina ry agreement on handove r 2 Project Learnings/evaluation Milestone recommendat ion2 2 Projec t D eliverables Project Lea rnings/ evaluation 2 Projec t De liverables

2 Projec t mi les tone recommendati on 1 Projec t D eliverables Projec t mil estone recommendationProjec t mi les tone recommendati on

2

11 Milest one recommenda tion 2 Miles tone Recommendat ion 1 Miles tone Recommendat ion 3 Milestone Rec ommendation 2 Milest one Recommendation Milestone Recommenda tion

1 Market Fact Pack 1 Updated va lue proposition , Sales Volumes, Pr ices 2 Updated va lue proposition , Sales Volumes, Pr ices Field Test Eva lua tion (VLT D rives) 2 U pda ted value p roposition , Sales Volumes, Pr ices Updat ed value proposition, Sa les Vo lumes , Prices

2 3 Cust omer workshop held 2 Loc al In troduction Plans (L IP) Service manual is ready G MI sta tus repor t Follow up on LIP implementa tion and s ales

2 Signed G S 3 Fie ldtest p lan (VLT Dr ives) Tec hnica l literat ure is ready Marke t co mmun ication roll-out sta rted Review o f in fo pack ageMarke t approach and intr oduction 3 Train ing p lan Awarenss t ran ing de livered Va lue selling roll-out s tar ted Product manage r appoin ted fo r M6+Fie ld test, scope & s tra tegy (VLT Drive s) 2 Typecode and p roduct matr ix in EasyDMS Pre-in troduction by Product Manager and Marke ting Training roll-out star tedSe rvic e concept stra tegy Pr icing and Product Hierachy Traning p lan ready f or ro ll- ou tUpdated va lue proposition Techn ical litt eratu re 1st dra ft Market Communic aiton Plan ready fo r roll-outVa riant economy ca lcula tion Updated Market Fact Pack Dr ives can be con figu red in con figu ra tor , a cces sor iesVa lue selling foundat ion GMI plan update and st atus VLT s hop is ready with product s and p ricesTechn ical lite ra ture s tra tegy Va lue selling a rgument s high level App roval o f G S fulf illment reportTran ing stra tegy Sales fo recas t upda ted

Assembly and disassembly workshop

2

3 Milest one recommenda tion 3 Baselined Requirement Spec ificat ion 3 Deta iled des ign des crip tion Product Approval 3 Product Approva l Finalis ed PS2 3 Concep t/archit ectu re descrip tion 3 Product documen tation (proto type leve l) Product documenta tion (Pilo t lev el) 3 Product Specif ication (PS) Updat ed product documenta tion

3 Concep t strategies, dependenc ies and constraints 3 Bill o f Mat eria l (BO M) Field Test Eva lua tion (DSI) 3 Product doc ument ation (1. s er ies level) De fect eva lua tion repor t3 Concep t BOM & Var iab le Cost Targe t 3 Working Pro tot ype 3 Milest one recommenda tion Milestone recommendation1 Product Test R ationale 1 Environmen tal assessmen t 33 Fie ld test, scope & s tra tegy (D SI ) 3 Updated / det ailed product t est plan 22 Miles tone Recommendat ion 3 Fie ldtest p lan (DSI)

2 R&D as sess ment / milestone rec ommendation

33 Milest one recommenda tion 3 Miles tone recommenda tion 3 Miles tone recommenda tion 3 Milest one recommenda tion Milestone recommendation3 Captu red requirement s 2 Updated Captu red requ irements 3 Handove r procedure requirements 3 C apacity handshake Close SCRS2 Strategy 2 Updated Strategy 3 3 H andove rdocument f or equipmen t Pro ject to Ope ra tions handove r document

Concep t 2 Design and specifica tion 2 Site ac cep tance t ests Follow up on forecast and compare with BCQ ua lit y leve l and iss ues on predesso r/s imilar p roduct s Qua lity ta rgets Updated Q uality targe ts Samp le ce rtif icate sta tus O verall qualit y eva lua tion and quality plan upda te IFG h andover

CAPEX estimat es/release Updated CAPEX Handove r read iness evalua tion (running product ion) U pda ted CAPEX Close budget and ressource account sVC est ima tes Updated VC U pda ted VC Failure and po ten tials follow up (ITT)Plan f or proto types (mix, quant it y, size ) Plan f or pilot s (mix, quant it y, size ) Approved 1. ser ies Clear quest update

Plan f or HAWA, accessor ies and sparepa rts Clean up obs olete pa rt no's introduced by pro jectPlan f or loca l/global Q -releasePlan f or ramp up /downPlan f or Suppor t training and equipmen t

M6M3

Sales &M arketing /ProductM anagement

Supply Chain

M5M1M0

ProjectM anagement

PD(HW, SW, CE,Test)

Q Release

PE project milestone deliverables

501G0401PE project

organizationand NewProduct

Development

PE standard

Process descriptions

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Processes

• Danfoss Business Systems• Programs DPP, DSP, FPP, PDP

• PDP - Product Development Program• Across divisions:

• Same Principles & milestone definitions• Same overall processes – establishing a

robust framework for project execution:• value proposition (specifications)• customer involvement• concepts (product, supply chain etc.)• launch strategies & plans

• Annual audits – focusing on Principles• All managers from CEO level and down

are trained and certified in the model

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22 | Danfoss Business System

Good practice is fundamental to consistenthigh performancePerformance

Practices

Set targets

Use common tools &processes based on

best practices

Follow up

Buildcapabilities

The PDP audit measure’s practice rather than project performance……because good practice is fundamental to consistent high performance

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Deployment in a global organization

• Pilots (2010)• Based on the standard and the milestone

delivery plan we:• Trained all the project team members• Used all the new methods and tools• Reviewed the pilots• Corrected and updated the material

• Live full scale (2011)• All new projects had to follow the new

model• Local Navigators (facilitators)

introduced

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Deployment in a global organization

• Full operation 2015• All projects are executing according to

the processes and model• All projects have a Navigator assigned• Audits are taking place – approximately

same score on each site• Only minor adjustments are being

discussed• Focus is on the ”soft” competences – to

drive performance

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Content






• Q&A

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Project manager rolein a global project setup

Our challenges -> Change in profile• From developing a product to delivering

on a business case

• Leading from a distance• Leading Others, Leading Leaders in

different time zones and cultures orproject maturity

• Virtual meetings, issues with:• Time zones, IT support etc.

• Leading in a mix of internal and external(outsourced) responsibility

• Navigate in a global organization• Network

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Project manager rolein a global project setup – what are we doing

Our challenges -> Change in profile• From developing a product to delivering on

a business case• Business model understanding - training

and support from controlling• Leading from a distance

• Face-to-face kick-off• Core team training• Clear roles and responsibilities• Same processes

• Leading in a mix of internal and external(outsourced) responsibility

• Navigate in a global organization• Network – global summit, formal pairing

of project managers from different sites

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Content






• Q&A

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Project execution across sitesIllustration

Haiyan

Beijing

ChennaiPune

TallinnGråsten

Brucksal

Rockford

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Project execution across sites

Typical elements to discuss – Learning’s• Decision making

• Project management role• Line management role

• Project organization and related complexity• Roles & responsibilities• Communication• Cultural awareness• Team collaboration – across sites• Team commitment and team spirit• Planning• Workshop participation• Monitoring progress• Managing Change

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Project execution across sites“project level”

• Cross functional events to drive alignment &progress (time-boxed’

• Detailed project complexity assessment ->planning & staffing accordingly

• Different urgency (priorities) across the sites

• Agreed roles & responsibilities between the teamson different sites

• High level plan with well defined integration points

• Local responsibility - ”local project lead”• On-site/’face-to-face’ meetings and extra

leadership resources to build relationships - tocreate the team spirit (avoiding ”them” and “us”)

• Time zones challenges - plan for communication &collaboration

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Project execution across sites“governance level”

• Local responsible PMO manager• Clear and agreed escalation path• Close cooperation on management level

across all sites• A Steering Committee with a clear

mandate• Cultural training (for the whole team)

and at all sites involved• Communication – different needs• Different competence levels = different

needs for review and support – toxicassumptions

• “Them” and “us”• Outsourcing model• KPI definitions

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Top learnings

Common processes / understanding- Creating a common process framework requires dedicated/full time resources- Process Navigator as a role – acknowledging the value of professional facilitation and

awareness of need for local/cultural adjustment

Project Manager role and competences- Must have real influence and responsibility (accountability)- Need for constant competence development to meet the challenges of a global setup- Understanding business development is essential

Project Execution- Addressing project execution complexity is a MUST- Understand consequences of different levels of organizational project execution maturity- Prioritize face-to-face meetings in the startup phase- Need for local lead/responsibility (accountability)

Solid governance- Escalation paths must be clear - Quick decision making is key

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Fælles projekteksekvering - hvad får det til at lykkes? - Carsten Høst, Danfoss

Leadership & Management

Transcript of Fælles projekteksekvering - hvad får det til at lykkes? - Carsten Høst, Danfoss