Benefit of the Engineering Change Management (ECM) (based on VDA )

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Benefit of the Engineering

Change Management (ECM)

(based on VDA 4965-1)

ProSTEP iViP Symposium; April 25, 2006 Nora Sonntag

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Agenda

UNITY AG at a Glance

Initial situation, purpose & approach

As-Is Analysis

Effect of ECM

Comparison with ECM

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UNITY AG at a Glance

Foundation on October 1st, 1995 Turnover of UNITY AG FY 04/05: 11.351 Mio. € 105 employees Capital stock: 600,000 € Consulting Fields:

Innovation & Product Development

IT Management & Cost Reduction

Output Optimization & Controlling

Locations:

Paderborn (Headquarter)

Stuttgart, Hamburg, Munich

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Agenda

As-Is Analysis

Effect of ECM

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VDA-Recommendation 4965-1 Engineering Change Management (ECM) designed by the ProSTEP iViP workgroup „ECM“

(Published through VDA 2005, December 1st)

The defined interaction scenarios and the defined data model are confirmed by two pilot projects of the workgroup

Commitment of one OEM to implement the ECM standard

So far lack of argumentation regarding the benefit of ECM

Initial situation

Receipt of ECR

Creation of

ECR Commenting on ECR Approval of ECR

Technical Analysis of ECR Specification and Decision on Change Identification of Potential for Change Development of alternative Solutions Engineering Implementation of Change Manufacturing Implementation of Change E C M E C R 1 11 1 2222 3333 4444 5555 1 1 1 1 2222 3333 4444 5555

Engineering Change Request (ECR)

M3.1 M3.2 M3.3 M3.4 M4

M3

M1 M2 M3 M4 M5 M6

M1 Change idea

Change potential identified M2

Potential solution identified M3

Decision for ECR M3.1 ECR created M3.2 ECR detailed M3.3 ECR commented M3.4 ECR decided M4 ECR released M5

Manufacturing change released M6

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Identification of the benefit of ECM

by defining key figures of the change management process

and comparing an analyzed As-Is process with the To-Be ECR process.

Focus of this approach has to be the ECR process since the published

VDA-Recommendation 4965-1 so far only describes Engineering Change Request (ECR). The wording will still be ECM.

Purpose of this presentation

Receipt of ECR

Creation of

Technical Analysis of ECR 1 1 1 1 2222 3333 4444 5555

M3.1 M3.2 M3.3 M3.4 M4

M3

Receipt of ECR

Creation of

Technical Analysis of ECR 1 1 1 1 2222 3333 4444 5555

M3.1

M3.1 M3.2M3.2 M3.3M3.3 M3.4M3.4 M4M4

M3 M3

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Approach

Analysis and comparison of change management with and without ECM.

1. As-Is Analysis of processes without ECM based on reference projects

a) Process to define a combined change management

between two partners

b) Process for the exchange of change information

2. Comparison of As-Is with ECM

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Agenda

As-Is Analysis

Effect of ECM

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Initial situation

Partnership: OEM together with system-/ module supplier

Both partners have an established change management process

Both partners have their own change management tool

Objective

Definition of a combined change management process

The following aspects have to be defined for both partners

Who will be “playing” which role

Which milestones and timelines will be set in the process

Which information has to be available at which milestone

Initiation of change

Commenting

on change (technical & costs)

Decision on change Realization of change ? ? ? Change management system Coordinator ? Participant ? ? ? ? ? ? ?

As-Is Analysis of processes without ECM

1/4

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5 Support during pilot time

J

28 Sum Information of defined process in the involved divisions

Definition of data exchange format Compilation of field mapping Definition of the information that has to be exchanged

Definition of the necessary roles in the combined change management

Definition of combined milestones

Analysis of each local change management process Definition of the needed change management scope Analysis of combined engineering partnership

Activity 1 I 1 H 1 G 3 F 5 E 5 D 2 C 2 B 3 A Capacity in MD / partner Nr. 5 Support during pilot time

J

Analysis of each local change management process Definition of the needed change management scope Analysis of combined engineering partnership

Activity 1 I 1 H 1 G 3 F 5 E 5 D 2 C 2 B 3 A Capacity in MD / partner Nr.

As-Is Analysis of processes without ECM

2/4

Required capacity per partner to reach defined objective

Analyzed capacity in person days (PD) without regarding project management

activities

The process to define a combined change management between two engineering partners without ECM needs a first time invest of 28 PD.

…

28 Sum

5 Definition of the necessary roles in the

combined change management E

Activity 5 D Capacity in PD/partner Nr. Without ECM 0 5 10 15 20 25 30 35 A B C D E F G H I J Activity C a p a c it y

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As-Is Analysis of processes without ECM

3/4

Initial situation of the implemented change management process

Exchange of change information per E-Mail

No automatic transfer of the exchanged data into the local change management

tools

This process for the exchange of change information enables the two partners to live a combined change management. At the same time it shows a number of manual interfaces which have to be analyzed.

management system Coordinator Participant Initiation of change Decision on change Realization of change Commenting

Commenting on change Realization of change Decision on change Commenting

on change (technical & costs) Initiation of change Change management system Change management system

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Regarding the process, one work step will at least take place one time for each partner per “phase”

Initiation

Technical description

Commenting on costs

As-Is Analysis of processes without ECM

4/4

Capacity for the preparation of information is approximately 0,25 PD* per work step

Manual arrangement of original information

Partner specific arrangement of change information management system Coordinator Participant Initiation of change Decision on change Realization of change Commenting

Commenting on change Realization of change Decision on change Commenting

on change (technical & costs) Initiation of change Change management system Change management system

The process for the exchange of change information generates a constant need of 0,75 PD per change for each partner.

Partic i-pant Coo

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Needed capacity for the change management of 200 parts: 3,5 person years!

Intermediate result

1. The process to define a combined change management

between two engineering partners needs a first time invest of 28 PD.

28 PD per partnership per partner

2. The process for the exchange of change information generates a

constant need of 0,75 PD per change for each partner.

0,75 PD per change for each partner

Example:

Scope of supply: 200 parts

Average number of changes per part per lifecycle: 5

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Agenda

As-Is Analysis

Effect of ECM

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Effect of ECM

ECM defines

Roles of participants

Milestones

Content to exchange

Data exchange format

ECM therefore affects

The needed capacity for the definition of roles, milestones and change information

The constantly needed capacity during the process by a standardized communication and automatic interfaces

Change management system Coordinator ? Participant ? ? Initiation of change Commenting

Decision on change Realization of change ? ? ? ? ? ? ? ? Participant Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Receipt of ECR Technical Analysis of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Change management system

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Agenda

As-Is Analysis

Effect of ECM

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5 ggf. erhöhter Aufwand durch Pilotphase

J

18 Summe Information der betroffenen Bereiche über abgestimmten Prozess

Definition des Austauschformats Aufstellung eines Feldmappings Definition of the information that has to be exchanged

Analysis of each local change management system Definition of the needed change management scope Analysis of combined engineering partnership Activity 1 I 0 H 0 G 3 F 1 E 1 D 2 C 2 B 3 A Capacity in PD /partner Nr. 5 ggf. erhöhter Aufwand durch Pilotphase

J

18 Summe Information der betroffenen Bereiche über abgestimmten Prozess

Definition des Austauschformats Aufstellung eines Feldmappings Definition of the information that has to be exchanged

Analysis of each local change management system Definition of the needed change management scope Analysis of combined engineering partnership Activity 1 I 0 H 0 G 3 F 1 E 1 D 2 C 2 B 3 A Capacity in PD /partner Nr. 5 Support during pilot time J

Definition of the necessary roles in the combined change management Definition of combined milestones Analysis of each local change management process Definition of the needed change management scope Analysis of combined engineering partnership Activity 1 I 1 H 1 G 3 F 5 E 5 D 2 C 2 B 3 A Capacity in MD / partner Nr. 5 Support during pilot time J

Definition of the necessary roles in the combined change management Definition of combined milestones Analysis of each local change management process Definition of the needed change management scope Analysis of combined engineering partnership Activity 1 I 1 H 1 G 3 F 5 E 5 D 2 C 2 B 3 A Capacity in MD / partner Nr. … … 28 Sum 5 Definition of the necessary roles in the

combined Change Management E

Definition of combined milestones Activity 5 D Capacity in PD/partner Nr. … … 28 Sum 5 Definition of the necessary roles in the

combined Change Management E

Definition of combined milestones Activity 5 D Capacity in PD/partner Nr.

Each partner saves 10 PD per definition of a combined change management process by the use of ECM.

To-Be Analysis of processes with ECM

1/2

Required capacity for each partner to reach defined objective

Analyzed capacity in person days (PD)

without regarding project management activities

…

18 Sum

1 Definition of necessary roles in the combined change management

E

Activity 1 D Capacity in MD/partner Nr. A _B C _D E _F G _H I _J 0 5 10 15 20 25 capacity activity

Comparison: Definition with / without ECM

Activity C a p a c it y Without With

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Change management system Change management system Coordinator Participant Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Receipt of ECR Technical Analysis of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Change management system Participant Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Receipt of ECR Technical Analysis of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Change management system Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Receipt of ECR Technical Analysis of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Receipt of ECR Technical Analysis of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Technical Analysis of ECR Receipt of ECR Creation of ECR Technical Analysis of ECR Commenting on ECR Approval of ECR Change management system Change management system

The shown capacity of 3,5 person years for a change management of 200 parts gets completely reduced to 0 with the use of ECM.

To-Be Analysis of processes with ECM

2/2

Through the standardized communication and the automatic interfaces of ECM,

the needed capacity of 0,75 PD does not apply.

Partici-pant

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Through the high potential of ECM regarding needed capacity per change, the first time investment is already profitable after 140 changes.

By integrating more partners the effect occurs even sooner.

Summarized costs

To identify the benefit of ECM it is necessary to calculate the analyzed person days with a rate of 300 €.

*34.600 € 0 €

Investment for ECM implementation

0 € 0,75 PD x 300 € = 225 €

Investment per change

18 PD x 300 € = 5.400 € 28 PD x 300 € = 8.400 €

Investment to define combined change management

With ECM Without ECM ECM 0 140 8.400 € 40.000 € Integration Partner 1 without ECM

Total investment with Partner 1 Invest in €

Number of changes 123

16.800 €

45.400 € Total investment with Partner 1 + 2

Integration Partner 2 without ECM

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Agenda

As-Is Analysis

Effect of ECM

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Conclusion

This presentation showed

The integration process for a combined change management generates high expenses

In case of a manual data exchange, there is a high investment for each preparation of data during the change process

The implementation of ECM requires first time investment costs

With the calculated example ECM shows a benefit already after 140 changes

Engineering partners can be integrated faster into the change management process

This presentation did not show, that ECM offers further advantages through

Higher data quality

Reduction of wrong decisions

Higher transparency

Shortened process time

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Thank you for your

attention!

Paderborn Lindberghring 1 33142 Bueren Phone +49 2955 743-0 Fax +49 2955 743-299 Munich Amalienstraße 15 80333 Munich Phone +49 89 28675671 Fax +49 89 28702715 Stuttgart Wankelstraße 3 70563 Stuttgart Phone +49 711 686890-30 Fax +49 711 686890-59 UNITY Schweiz AG Neugasse 10 8812 Horgen, Switzerland Phone +41 44 220 10 00 Fax +41 44 220 10 10 Hamburg Ruhrstraße 11 22761 Hamburg Phone +49 40 600988-0 Fax +49 40 600988-29 UNITY Egypt Ltd. 159, 26th July Street Zamalek, Cairo, Egypt

Phone +20 2 3333-694

Fax +20 2 3333-661

[email protected] www.unity.de