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Questions from the Tokyo 2007 DCOR Class

 
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Joined: 08 Aug 2006
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PostPosted: Fri Jul 20, 2007 10:42 pm    Post subject: Questions from the Tokyo 2007 DCOR Class Reply with quote

This is the summary of the questions posted by the DCOR class in Tokyo:
  1. Total Design Chain Cost; What is included in total design chain Cost? Do you agree that costs for quality and costs for failure should be included in design chain costs? What other costs should be included in total design chain Costs?

  2. We believe that specific metrics for quality management should be included in "Design Chain Reliability" metrics, do you agree?

  3. Do you think intellectual property can be numerically measured?

  4. Design chain flexibility; 'Product Design Change Cycle Time' is the level 1 metric for 'Design Chain Flexibility', but it is defined as the change after design has been released to operations. Don't you agree there should be a better 'Design Chain Flexibility' level 1 metric, which measures the flexibility before design is released to operations, to measure design requirement changes before the design is released to operations?


Last edited by Guest on Sat Jul 21, 2007 5:11 am; edited 1 time in total
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Caspar Hunsche
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Joined: 17 Oct 2005
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PostPosted: Sat Jul 21, 2007 4:03 am    Post subject: 1. Total Design Chain Cost Reply with quote

Quote:
Total Design Chain Cost; What is included in total design chain Cost? Do you agree that costs for quality and costs for failure should be included in design chain costs? What other costs should be included in total design chain Costs?

Total design chain cost incorporates all cost associated with the creation of the design for a product, service or process (Cost of Research + Cost of Design + Cost of Integrate) and the cost of the corrective actions of design problems (Cost of Amend).

The type of cost included in total design chain cost are:
  • Personnel cost; wages, benefits
  • Cost of samples, knowledge acquisition, and cost of disposition
  • Cost of maintaining laboratories and proto-typing tools and equipment
  • Cost of related IT systems (CAD, CAE)
The cost of failure is a definition that may need to be expanded upon. The cost of failure could be seen as the cost to repair failing products and product recalls. This is an area that has not been explicitly been included nor excluded in the DCOR reference model. The SCC (supply chain council) will need to address this question properly in the next release of the DCOR model.
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Caspar Hunsche
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Caspar Hunsche
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Joined: 17 Oct 2005
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Location: Houston, TX

PostPosted: Sat Jul 21, 2007 5:08 am    Post subject: 2. Quality management metrics? Reply with quote

Quote:
We believe that specific metrics for quality management should be included in "Design Chain Reliability" metrics, do you agree?


My question is 'what is quality management'? The reliability metrics focus on the performance of the design chain processes: on-time, complete, without errors. Those are considered quality aspects. Another set of quality metrics I expect to see are:
  • Number of ECOs/ECNs per product
  • Number of ECOs/ECNs per period
  • Amend cycle time
  • Cost of Amend
  • Warranty cost
In short I think there still is some opportunity to tune the metrics in the DCOR model.

ECOs/ECNs = Engineering Change Orders/Notices
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Caspar Hunsche
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Caspar Hunsche
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PostPosted: Sat Jul 21, 2007 5:21 am    Post subject: 3. Measuring Intellectual Property Reply with quote

Quote:
Do you think intellectual property can be numerically measured?

Absolutely. HP for example calculates the number of patents per employee, number of patents current, and number of patents created. These metrics are published periodically, HP considers innovation of strategic importance.

These metrics fall in the Asset Management performance attribute grouping.
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Caspar Hunsche
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PostPosted: Sat Jul 21, 2007 5:45 am    Post subject: 4. Flexibility metrics Reply with quote

Quote:
Design chain flexibility; 'Product Design Change Cycle Time' is the level 1 metric for 'Design Chain Flexibility', but it is defined as the change after design has been released to operations. Don't you agree there should be a better 'Design Chain Flexibility' level 1 metric, which measures the flexibility before design is released to operations, to measure design requirement changes before the design is released to operations?

I agree that design chain flexibility could use a better metric. The DCOR team reviewed the option to make Upside or downside flexibility the level 1 metric. The problem is that like with supply chain flexibility this is difficult to measure. The DCOR team considered measurability an important requirement in selecting metrics and thus decided to select the Amend related product design change cycle time.

For your design chain scorecard you can of course always select design chain upside or downside flexibility.
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