Products Innovation through Processes Innovation




                   "Doing Business in times of crisis"
                   miniCamp at BolognaIN – April 20th, 2009

                   Claudia Miani
My experience

    Executive Consultant in Management & Engineering
    15 years in multinational corporate’ and small
    companies’ R&D, operating on mech engineering,
    telecommunications and biomedical markets, been at
    last the Development Director of a major international
    medical company
    Development of a wide range of products: automatic
    machines for packaging, plastic components,
    telecommunications equipment, medical devices and
    equipment
    Wise mix of technical/scientific competences and
    curiosity, with strong passion for coaching and
    growing people. Motivation and long-deep experience.
    Technical and managerial Advisor to lead companies
    in improving their Innovation and New Product
    Development awareness and in adapting their
    products’ range to the "new market“ needs
    Organization Development (structure and processes)
    to improve interaction between R&D and the other
    departments
090420   CMiani                    Copyright© 2009 CM Consulenze Manageriali   2
How Innovation is defined

         Innovation is a discontinuity in knowledge and know-how that could
         generates a significant productivity increase either doing more
         things with the same resources (development), or doing the same
         things with fewer resources (sustainability). It becomes systemic
         when the productivity increase generates sustainable expansion in the
         broadest sense: extended (for all) and persistent (over time).


         According to the OCSE (Organization for Economic Cooperation and
         Development), "Innovation is the ability to manage knowledge in order
         to generate competitive advantage through the production of new
         goods, processes and organizational systems."




090420    CMiani                Copyright© 2009 CM Consulenze Manageriali        3
Innovation in business

The company, an End-To-End process to be "innovated" in all its component

                                                                           Select a process,
                                                                           define the vision,
                                                                               implement it,
                                                                     learn from experience,
                                                                       extend the concepts
                                                                  throughout the company!

                                                                           ... With the only one
                                                                      objective: increasing the
                                                                         company profitability!

                                            think BIG start small, scale fast
                                                  BIG,

090420   CMiani           Copyright© 2009 CM Consulenze Manageriali                            4
Products Innovation with new Design Processes

         Make new Products
            Medium-long term products strategy with relative RoadMap
            Modular Product Architecture (MAP)
            Product Variants and use of Product Data Management

         Make current products with new Production Systems
            Concurrent Engineering for “Product + Process "
            Lean Production together with Lean Development
            High-tech Manufacturing Engineering, with high automated production

         Updating current products with new Services
            Customer oriented Sale, Pre & Post Sales
            Spare Parts, Maintenance, Repairing

         Update the current products with new Costs
            Design To Cost
            Lean Production and Lean Thinking

090420    CMiani                  Copyright© 2009 CM Consulenze Manageriali       5
Processes Innovation: Human Resource Management

 The staff is the biggest "asset" in our companies
 The keys to success are: Having the best one and handling it the best
         Personnel Selection and Career Path
            LinkedIn, Video CV, Virtual Fair
            Performance culture and meritocracy
            Internal Job Posting and Job Rotation

         Resource Management and Training
            Lesson learned
            E-learning, webinar and funded courses
            International training to increase professional and cultural exchange
            Innovative and creative Team Building

         Compenban
            Tools for participation in saving business costs
            Campaigns for energy saving and environmental protection
            Discount cards and corporate conventions

090420    CMiani                   Copyright© 2009 CM Consulenze Manageriali        6
Processes Innovation: Projects Management

     Define the team with clear roles and responsibilities - with innovative
     approach
     Define the unequivocal design requirements - with innovative processes
     Define all the interfaces and verify the correctness

 Essentials:
   Project Documentation
           Registration of all the crucial steps, calculations, decisions, references,
           piece of information
     Risk Management
           To highlight unknown/possible problems, which may arise during the
           planned activities
     Concurrent Design
           Activities of multi-design that take place simultaneously
     Lesson learned for continuous improvement (Kaizen)

090420   CMiani                    Copyright© 2009 CM Consulenze Manageriali             7
Avoid projects failure

 1. Incomplete / unclear requirements               13.1%
 2. Little involvement                              12.4%
                                                                        16% success
 3. Lack of Resources                               10.6%               31% partial
                                                                        53% failure
 4. No support from management                      9.3%
 5. Late specification changes                      8.7%
 6. Lack / insufficient planning                    8.1%
 7. False expectations from achievement and performance 9.9%

 8. Abandoned Project                               7.5%                                      s
                                                                                           ure
                                                                                     f ail
                                                                                    e or ons
                                                                                 th f
                                                                              of ere reas
                                                                            e
                                                                        N on w ical
                                                                                  n
                                                                              ch
  Sources: Standish Group                                                   te
090420   CMiani             Copyright© 2009 CM Consulenze Manageriali                             8
Processes Innovation: Production Resources Management

         Lean Production
         Six-sigma
         TOC
         TRIZ


         In fact, the most recent theory of the Improved Production Processes
         states that the optimal process is a "wise" mix of Lean, Six Sigma and
         Theory of Constraints, which has to identify and capitalize our
         company financial levers




090420    CMiani                 Copyright© 2009 CM Consulenze Manageriali        9
Processes Innovation: Products’ Service Management                                    (1)

         Pre Sales
           Direct contact with customers to understand what they perceive as “value”
           and to reposition our products on "that" value

         Spare Parts
           Replaceable Unit in the design process (to reduce WIP)
           Standardized products (to facilitate distribution chains and reuse - WIP)

         Manual (is part of the product or service?)
           Written in a flexible way (products changes are easily up-to-gradable)
           Possibility to be used in a flexible and innovative way
           Same language in all contexts (Language Sharing)

         Repairing
           How many/which components (only high value comps, all or a defined mix?)
           What is the “real value” that our customer perceive and for what he’s
           available to pay?


090420    CMiani                   Copyright© 2009 CM Consulenze Manageriali             10
Processes Innovation: Products’ Service Management                                  (2)

         Maintenance
             MTBF evaluation and proper predictive Maintenance
             Repeatable and high quality Maintenance processes
             "Portable Maintenance book” on multi-media tools
         Sales
             Customer orientation, demand analysis, consumer needs evaluation
             Demand creation, "pulling" the market form the bottom
         Logistic/Distribution
             Total integration with suppliers and sales/distribution
             Transportation "On Time In Full" managed with integrated and innovative SW
         Customer Support
             Integrated, direct line to the end-user
             Multi-media communications
             Cases recording and traceability
             What is the “real value” that our customer perceive and for what he’s
             available to pay?
090420     CMiani                   Copyright© 2009 CM Consulenze Manageriali          11
Processes Innovation : Financial Resources Management

         Determine the "Trade-offs”
         Model the business structure in order to monitor it effectively and to
         make predictions that enable more objective decisions
         Always have an indicators dashboard to monitor all processes


                                 Create Baseline Model



   Model Expense            Model Cost               Model Performance             Model
     Overrun                 Overrun                     Shortfall             Schedule Delay



                   Determine Total Profit Impact of Missing Objective


090420    CMiani                   Copyright© 2009 CM Consulenze Manageriali                12

Products Innovation Through Processes Innovation

  • 1.
    Products Innovation throughProcesses Innovation "Doing Business in times of crisis" miniCamp at BolognaIN – April 20th, 2009 Claudia Miani
  • 2.
    My experience Executive Consultant in Management & Engineering 15 years in multinational corporate’ and small companies’ R&D, operating on mech engineering, telecommunications and biomedical markets, been at last the Development Director of a major international medical company Development of a wide range of products: automatic machines for packaging, plastic components, telecommunications equipment, medical devices and equipment Wise mix of technical/scientific competences and curiosity, with strong passion for coaching and growing people. Motivation and long-deep experience. Technical and managerial Advisor to lead companies in improving their Innovation and New Product Development awareness and in adapting their products’ range to the "new market“ needs Organization Development (structure and processes) to improve interaction between R&D and the other departments 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 2
  • 3.
    How Innovation isdefined Innovation is a discontinuity in knowledge and know-how that could generates a significant productivity increase either doing more things with the same resources (development), or doing the same things with fewer resources (sustainability). It becomes systemic when the productivity increase generates sustainable expansion in the broadest sense: extended (for all) and persistent (over time). According to the OCSE (Organization for Economic Cooperation and Development), "Innovation is the ability to manage knowledge in order to generate competitive advantage through the production of new goods, processes and organizational systems." 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 3
  • 4.
    Innovation in business Thecompany, an End-To-End process to be "innovated" in all its component Select a process, define the vision, implement it, learn from experience, extend the concepts throughout the company! ... With the only one objective: increasing the company profitability! think BIG start small, scale fast BIG, 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 4
  • 5.
    Products Innovation withnew Design Processes Make new Products Medium-long term products strategy with relative RoadMap Modular Product Architecture (MAP) Product Variants and use of Product Data Management Make current products with new Production Systems Concurrent Engineering for “Product + Process " Lean Production together with Lean Development High-tech Manufacturing Engineering, with high automated production Updating current products with new Services Customer oriented Sale, Pre & Post Sales Spare Parts, Maintenance, Repairing Update the current products with new Costs Design To Cost Lean Production and Lean Thinking 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 5
  • 6.
    Processes Innovation: HumanResource Management The staff is the biggest "asset" in our companies The keys to success are: Having the best one and handling it the best Personnel Selection and Career Path LinkedIn, Video CV, Virtual Fair Performance culture and meritocracy Internal Job Posting and Job Rotation Resource Management and Training Lesson learned E-learning, webinar and funded courses International training to increase professional and cultural exchange Innovative and creative Team Building Compenban Tools for participation in saving business costs Campaigns for energy saving and environmental protection Discount cards and corporate conventions 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 6
  • 7.
    Processes Innovation: ProjectsManagement Define the team with clear roles and responsibilities - with innovative approach Define the unequivocal design requirements - with innovative processes Define all the interfaces and verify the correctness Essentials: Project Documentation Registration of all the crucial steps, calculations, decisions, references, piece of information Risk Management To highlight unknown/possible problems, which may arise during the planned activities Concurrent Design Activities of multi-design that take place simultaneously Lesson learned for continuous improvement (Kaizen) 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 7
  • 8.
    Avoid projects failure 1. Incomplete / unclear requirements 13.1% 2. Little involvement 12.4% 16% success 3. Lack of Resources 10.6% 31% partial 53% failure 4. No support from management 9.3% 5. Late specification changes 8.7% 6. Lack / insufficient planning 8.1% 7. False expectations from achievement and performance 9.9% 8. Abandoned Project 7.5% s ure f ail e or ons th f of ere reas e N on w ical n ch Sources: Standish Group te 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 8
  • 9.
    Processes Innovation: ProductionResources Management Lean Production Six-sigma TOC TRIZ In fact, the most recent theory of the Improved Production Processes states that the optimal process is a "wise" mix of Lean, Six Sigma and Theory of Constraints, which has to identify and capitalize our company financial levers 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 9
  • 10.
    Processes Innovation: Products’Service Management (1) Pre Sales Direct contact with customers to understand what they perceive as “value” and to reposition our products on "that" value Spare Parts Replaceable Unit in the design process (to reduce WIP) Standardized products (to facilitate distribution chains and reuse - WIP) Manual (is part of the product or service?) Written in a flexible way (products changes are easily up-to-gradable) Possibility to be used in a flexible and innovative way Same language in all contexts (Language Sharing) Repairing How many/which components (only high value comps, all or a defined mix?) What is the “real value” that our customer perceive and for what he’s available to pay? 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 10
  • 11.
    Processes Innovation: Products’Service Management (2) Maintenance MTBF evaluation and proper predictive Maintenance Repeatable and high quality Maintenance processes "Portable Maintenance book” on multi-media tools Sales Customer orientation, demand analysis, consumer needs evaluation Demand creation, "pulling" the market form the bottom Logistic/Distribution Total integration with suppliers and sales/distribution Transportation "On Time In Full" managed with integrated and innovative SW Customer Support Integrated, direct line to the end-user Multi-media communications Cases recording and traceability What is the “real value” that our customer perceive and for what he’s available to pay? 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 11
  • 12.
    Processes Innovation :Financial Resources Management Determine the "Trade-offs” Model the business structure in order to monitor it effectively and to make predictions that enable more objective decisions Always have an indicators dashboard to monitor all processes Create Baseline Model Model Expense Model Cost Model Performance Model Overrun Overrun Shortfall Schedule Delay Determine Total Profit Impact of Missing Objective 090420 CMiani Copyright© 2009 CM Consulenze Manageriali 12