2014 – Year of Discovery……..#automotive

This year has been an extremely exciting & challenging one for me personally. In January 2014 I signed a 12 month contract with Tata Technologies as Lead Engineer in Exterior Trim developing & bringing to production Jaguar Land Rovers’s Freelander replacement the new ‘Discovery Sport’.

In January I was based in TTL’s Coventry office but spent a lot of time at JLR’s Browns Lane plant in the West Midlands, historical home of Jaguar Cars & now utilised as a Pilot Plant for small scale production.

Walking into Browns Lane was a great experience personally as I met many old friends from JLR having worked on the Range Rover Sport Programme. Although it is a large organization employing many thousands its amazing how many people you get to know working on a project for 18 months.

The pilot build is known as VP build & this stage of the process is very much a learning process. Some trim parts are still not ‘off tool’ & its all about capturing issues via the Automated Issues Management system. This AIMs system is used to track issues & ensure the proper fix is put in place before closure. It provides visibility to Senior Management & its administration is one of the Lead Engineer’s key tasks along with developing engineering solutions & working with key suppliers to ensure timely delivery of quality parts. Most issues require a PACN (to support financial justification) & a Engineering Release to implement the change. As most Engineers are responsible for numerous parts time is rapidly eroded before its time for the next build – Hard Tool Functional Build (HTFB)

This build took place at JLR’s Halewood plant where the Discovery Sport is to be mass produced & which was to be my base for the next 8 months.

Halewood is a large plant which covers several square miles & employs over 8,000 people.  Most of the Product Coaches & Line Engineers were involved in the Browns Lane builds so there were many familiar faces at Halewood as well as plenty new ones. Halewood is one of JLR’s centres of excellence & the Engineering knowledge here is second to none.

Over the next 8 months we embarked on a number of builds increasing in numbers & complexity. This is a very stressful period for all & the nearer Volume Launch approaches the pressure piles on.

It was with a mixture of relief & a great sense of achievement  when Volume Launch in December was achieved and cars began rolling off the production line at a rate of one every 40 seconds !!

It is important to recognise the economic importance of this model; Tata have invested hundreds of millions of pounds in this venture which has created several thousand jobs at Halewood & employed hundreds of thousands in the wider supply chain. With JLR’s commitment to source 60% of parts within a 40 mile radius the importance to the Regional Economy cannot be underestimated.

To play a small part in this great venture & to help take the Discovery Sport from initial concept to volume production brings a great sense of pride & achievement.
chris@amberhill.biz

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Time IS Money………….

Right First TimeThere are loads of books offering advice on Time Management, some useful & some trite like ‘we all have 24 hours in a day’ which is great if you also have a host of assistants to do the menial chores whilst you sit back & contemplate. Most of us don’t have that luxury with busy lives & demanding bosses, we often struggle to manage our own time effectively  completing tasks quickly but not necessarily  efficiently.

How often do you have to go back & correct something you did in a rush ? Thinking you were being efficient only to waste more future time putting it right. Very soon we can end up chasing our own tails like deranged dogs.

One way to improve our use of time is to think of it like money. The more effort put into completing a task ‘right first time’ is like putting savings in a high interest account. You expend a little more effort immediately but don’t have to return to it later to correct errors. This frees up more ‘future time’. The alternative is like spending on a credit card. You want it now & end up paying ‘through the nose’ later.

Get it ‘right first time’ consistently & over time you will spend more time contemplating & less chasing your tail.

chris@amberhill.biz

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Jaguar Land Rover goes from strength to strength #innovation

evoque2This week Jaguar Land Rover released the following press statement:-

‘JLR creates 250 new jobs as Halewood is confirmed as the home of the new Discovery Sport
The Land Rover Discovery Sport has been confirmed as the latest model to be produced at Jaguar Land Rover’s Halewood plant. The additional jobs announced to support Jaguar Land Rover’s newest model will see the Halewood workforce reach 4,750 – more than treble the number employed there in 2010. The Halewood plant has benefited from a £200 million investment to support introduction of the first member of the all-new Land Rover Discovery family, taking the total amount invested in Halewood over the last four years to almost £500 million.’
 
So why are JLR doing so well when volume manufacturers like General Motors Vauxhall and other Marques are struggling:-
 
1) JLR are taking advantage of a global rise in premium SUV’s driven, to a large extent, by the Chinese market.
 
2) Their customers are relatively well off & have higher disposable income.
 
3) They have targeted the export market, with over 80% of sales destined for overseas.
 
4) Their Quality standards are superior, the attention to detail is exceptional .
 
5) They have an excellent engineering pedigree with a stable workforce with many, many years experience. There is no other company in the World knows as much about four wheel drive systems as Land Rover.
 
6) Jaguar Land Rover has a flexible business model & employs many talented & experienced engineering contractors. 
 
7) They use a proven stage gate development process (described in an earlier post)
 
8) They have enjoyed massive Capital Investment from Tata investing over 2.75 billion pounds in 2014. Not bad for an organisation which was on its knees before the Tata takeover.
AMBERHILL-LOGO-THUMB

#Lean empowerment……

TPS

At the heart of the Toyota Production System (sometimes referrred to as #Lean Production System) is the principle of ‘Jidoka’.

 According to Toyota “Jidoka means that a machine safely stops when the normal processing is completed. It also means that, should a quality / equipment problem arise, the machine detects the problem on its own and stops, preventing defective products from being produced. As a result, only products satisfying quality standards will be passed on to the following processes on the production line.”

But there is more to #Lean than this. The key component is the empowerment of the Operator to stop the process immediately a defect or potentialy defective process is discovered without referring the issue upward. The Operator can stop the production process without fear of retribution and is empowered to do so. This is a great responsibility and one which is not granted lightly, the Operator must be fully trained and the Organisation steeped in the culture of #Lean & #Kaizen (continuous improvement)

Granting  this autonomy is absolutely key to the success of the TPS philosophy & unleashes immense forces of creativity & quality improvement. 

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10 tips to minimize cost at the Design stage….

Bizplan03All companies need to be mindful of costs & for those producing products this is best done at the Design stage. Here are some suggestions:-

 

  • Before beginning the design a Product Specification is essential, this needs to have been agreed at Senior Management level.
  • The product design needs to meet the spec and no more.
  • The material choice is critical, why make it out of gold if steel will do.
  • Use minimum thickness, as long as the design meets the spec.
  • Reduce the number of components as much as possible.
  • Re-use existing design components wherever possible – this gives Purchasing negotiating strength over suppliers and reduces inventory.
  • Consider Manufacturing by minimizing the number of process steps in manufacture.
  • Hold regular Design reviews & involve other parts of the Organization.
  • Build a prototype to test the design.
  • If possible test the Design using Computer Aided Modelling.

If you need help minimizing cost at the Design stage feel free to get in touch.
chris@projectsguru.co.uk

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Are you listening to the Voice Of the Customer?….#business, #innovation

One of the most difficult choices in New Product Development is in deciding what products to develop !

Lot’s of us watch “Dragons Den” on TV and it’s pretty obvious some of the budding entrepreneurs believe they have a great idea but have never even considered asking their customers or potential customers what they think.

To avoid wasting millions of dollars on products no one wants it is essential to listen to the Voice Of the Customer. (VOC)

Companies involved in New Product Development & Innovation need to establish effective methods to capture VOC.

This can take many different forms such as surveys, telephone conversations, face to face interviews, feedback forms, Social Media strategies etc etc etc

Whichever mix is used the information then has to be filtered and sorted to identify priorities for New Product Development. To do this effectively it is essential to have a multi-functional team involved to get a number of perspectives.

If you are involved in Innovation you need to capture the VOC.

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#Auto output drives toward production record

The UK automotive industry is set to break its all time production record of 1.92 million cars (set in 1970!!) in 2015. These figures are from the Society of Motor Manufacturers & Traders.

This success is hard won and it has been a long upward climb to return to the heights of the 1970’s. It is hard to believe that UK auto manufacturing then represented approximately a 10% world share. Now it is just over 2%.

A heck of a lot of ground was lost following the 1973 oil crisis and the gradual decline of British Leyland.

Success now depends on innovative Product Design. Take a look at Jaguar Land Rover’s Evoque (see above) which has sold over 100,000 units in it’s first year and has led to 24/7 manufacture at the Halewood plant.

Another great example is BMW’s mini which is turned out at it’s expanded Oxford plant.

Manufacturing in the UK Automotive industry has been revolutionized since the sad days of the 1970’s, much of this led by Nissan in the North East with  the adoption of Japanese manufacturing techniques such as LEAN & JIT.

If we can capitalize on current success the UK Automotive industry has a terrific future.

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Great #design brings great results….#engineering

quashqai Recently released results from Nissan the Japanese automotive manufacturer illustrate how good product design leads to improved financial returns.

Nissan’s Net Profit was up a whopping 7% at 341.43 billion Yen and Turnover was also up 7.2% at 341.43 billion Yen.

This was largely based on sales of the distinctive Quashqai SUV in Europe.

Quashqai’s design team was  headed up by Stephane Schwartz who conceived the distinctive ‘bone line’ styling whilst thinking about Lean & Athletic images at his home in London. Nissan’s European design studio was put to work on the Quashqai at its base in Paddington London and the results are reflected in Nissan’s financial performance despite a strong Yen.

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What recession ??? #pmot #entrepreneur

This week Jaguar Land Rover announced a multi – billion pound investment program which will generate over one thousand new jobs in the West Midlands – a fantastic example of how a company can thrive in a recession when it focuses on producing a quality product range which exceeds customer expectations.

Here is just a short list of some major companies which not only started in a recession (or even a depression) but went on to grow into some of the biggest and most successful companies in he world today.

growthGeneral Electric – 1873

Disney – 1924

Hewlett Packard – 1939

Burger King – 1957

Microsoft – 1975

So here are some thoughts on growth in the current recession:-

  • Business Case – if the business case is sound and has been rigorously reviewed – forget the recession. Have the courage to invest in your convictions.
  • Ignore the herd – just because the majority of companies are acting like rabbits caught in the headlights doesn’t mean that yours has to.
  • Crush Competitors – that’s right, take the opportunity to mop up your timid competitors markets.
  • Eliminate waste – apply LEAN principles to maintain the competitive edge.
  • Ensure Quality – apply 6 Sigma t0 minimize defects & maximise yields.
  • Employ Interims – If you are cautious about taking on full time employees make use of highly qualified contractors available at short notice to meet your immediate business needs.

Fortune favours the brave !

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Lost opportunity cost…..#pmot…#in

Bizplan03

In the last post we discussed risk aversion. One of the pitfalls of being too risk averse is lost opportunity cost.

In New Product Development Project Managers constantly balance time to market with product quality, resource management, project costs & a host of other competing factors.

In an effort to develop the perfect product with maximum process capability and meeting 100% customer satisfaction the real cost of lost opportunity is often missed.

Consider a product which on release will generate, on average,  $100,000 profit a month for 12 months. If the product release is delayed by 1 month the lost opportunity cost can be estimated as $100,000. What should be  emphasised is that this amount will NEVER be recovered. If the product lifecycle is estimated as being 12 months depending on the competition then releasing the product 1 month late reduces the lifecycle to 11 months.

If that lost $100,000 was invested at a compound rate of 5% per year over ten years it would be worth $163,000 !

So here are some tips to minimize lost opportunity cost:-

1) Invest in the project at the front end, providing ample resource and support.

2) Fix the product spec before the end of the design phase.

3) 100% perfection is great but 95% is normally good enough for most customers.

4) Make it easy for engineers by setting SMART (Specific, Measurable, Aggressive, Realistic, Timely) targets.

5) Publicise Project Milestone targets.

6) Communicate Lost Opportunity Costs.

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