Text Box: New Customer Programs Opportunity Characterizing new programs as the life blood of a company's business is not an overstatement. As products reach the maturity of their life cycle, new ones must take their place just to retain current market status. So it is no mystery that successful companies do this well. They handle the vagaries of customer expectations, technological advancements, resource management and the capital intensiveness of these initiatives. Challenges and Solutions Developing and launching new programs presents challenges in every aspect of a company's organization. With the prospect of a long-term commitment to the customer and ultimate program results, all the pieces must mesh for a successful program outcome. We've highlighted some of the prime challenges. The uncertainties in multiple aspects of the program make the initiative a high stakes venture. The developmental aspects of a new programs coupled with perhaps a new customer relationship and final product uncertainties place considerable strain on an organization’s resources. To some these circumstances are threats to the program. We see this as opportunity management. Managing opportunity requires the identification of all deliverables that are required for the success of the program. Decomposition of the deliverables makes them manageable and subsequent plans assure that each component of the total opportunity is properly supported. Time to market or supply date to the customer is critical and non-negotiable. When isn't delivery critical to program success. But meeting this demand can lead to a program spiraling out of control and becoming a financial drain on the business. Meeting the classic time demand while maintaining control of the program starts with a structured management process. And a structured process requires formal initiation of the program. This establishes a foundation on which to proceed and a method to identify threats that can arise and undermine the success of the program. The multidisciplinary demands of comprehensive new programs are a resource drain on the organization and are not being adequately addressed. The scope of new programs can be staggering to organizations lacking adequate processes and resources. Successful program management starts with the sales process and extends through routine production. Attempted shortcuts intended to compensate for resource or process deficiencies are inevitable sources of trouble. That is why our approach emphasizes a fully integrated scope with the necessary resources to address all program deliverables. There is constant pressure on cost reduction from the market and the customer. No sooner has production approval been achieved than the inevitable competitive pressures of the marketplace begin to assert themselves. And meeting those demands through shrinking margins is not a sustainable approach. So productivity improvements are essential. We establish the groundwork as part of the original program plan. With a robust manufacturing infrastructure and the proper organizational culture, the stage is set for continuous improvement opportunities. Services Bringing new programs from concept to a final product that meets the expectations of the customer can be a daunting undertaking. Our services can help reduce the high drama and crisis environment that often arises during the course of these initiatives. Key elements are: A management approach in which the primary objective is to meet the client’s expectations. Verification that the business plan adequately justifies the program investment and the viability of the final product. A formalized planning methodology that is tailored to the to the needs of the program and requires stakeholder input and approval. Application of a comprehensive risk assessment of all program deliverables with the objective of maximizing the areas of opportunity and eliminating the threats to the program objectives. An auditing phase to assure that the program objectives achieved at the final product launch are sustainable. Maintaining rigorous change control measures to prevent the addition of product features or functionality that add cost and are outside the intended scope. Process engineering expertise that spans the range of experience from new technology and process development through production equipment and support systems. Benefits To Working With Us Our approach emphasizes a structured but integrated process. That means that all contributors and potential influences on the program are identified to assure that these factors are channeled to program success and don’t turn into program threats. Our independence enables the separation of project activities that support new program development from ongoing operational activities. And we provide a means of keeping internal resources focused. Experience has shown that using common resources for project and operational activities leads to excessive workloads and compromised outcomes. With the health of the company’s business inextricably linked to new program results, we see the success of new programs as highly dependent on project leadership. Having over 50 years of experience in manufacturing operations, process engineering, and project management coupled with a commitment to meeting client expectations, enables us to provide that leadership. Industries Served Aerospace Automotive Agricultural and Construction Equipment Consumer Products Industrial and Commercial Equipment Plastics Case Study: New Business Award for Plastic Molding Facility Problem / Situation: The production facility had been awarded significant additional business from an existing customer. The business was being transferred from another organization so the program tooling was already in operation. However, political constraints prevented observing the existing operation. The required facility expansion was managed internally and had been largely completed but was not production ready. Completion of the facility had to be coordinated with current production activity on some of the existing equipment. The new production line was to be capable of running 24 x 5 and at an unscheduled downtime rate of 5%, a 30% reduction over the rest of the plant. The budget had essentially been exhausted and customer demands required that production be flowing as soon as possible. Solution / Approach: Despite the pressure to begin manufacturing product, a structured approach with mutually agreed upon objectives was pursued and adopted. A new program plan was developed that identified the high level deliverables and target objectives for schedule. This included a detailed risk assessment used to guide not only the facility development but to guide further customer interaction. Objectives were established for safety (zero injuries and lost time due to project activities) and rework of project activities (zero task rework). Apogee Management Group provided significant process engineering input on the production equipment. Due to the absence of budget support, tight cost control was required and rigorous performance reporting was instituted that kept upper management apprised of project progress, actual costs and estimates to complete. Results / Outcomes: The project was completed in line with the technical and performance objectives (24 x 5 operation and 5% unscheduled downtime) although funding was terminated which reduced the scope of intended activities that would assure sustainability of these objectives. The production facility was brought to full capacity and has reported no downtime due to failures of any components, hydraulic systems or bugs in the control systems software. There were no lost time incidents or accidents with only minimal task rework.

opportunity management specialists

Apogee Management Group

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