Automotive Electronics: New Product Introduction

The Company Dilemma

Our client, a Euro 5 billion division of a major European corporation, is a manufacturer of state-of-the-art electronic ABS braking and vehicle control systems.

Prior to engaging Thomas Group, the company’s engineering lead-time was increasing, competition was threatening to take market share, and engineering costs were rising faster than revenue.

Critical issues included:

  • Create and install a Time-to-market process that incorporated work package-based projects and optimal resource planning
  • Remove the culture barrier that allowed lack of accountability
  • Establish strategic partnerships with customers to limit short-term running changes to engineering specs
  • Design and implement a project prioritization and starts control process that would rationalize projects in the pipeline and commitments made
  • Develop and implement a project costing and pricing system

Thomas Group Strategy and Solution

Thomas Group was engaged in a company-wide program; the key objectives of which were to:

  • Create and install a Time-to-market process that incorporated work package-based projects and optimal resource planning
  • Remove the culture barrier that allowed lack of accountability
  • Establish strategic partnerships with customers to limit short-term running changes to engineering specs
  • Design and implement a project prioritization and starts control process that would rationalize projects in the pipeline and commitments made
  • Develop and implement a project costing and pricing system

Establishing a permanent Time-to-market (TTM) process was driven by Thomas Group’s rigorous Total Cycle Time® (TCT®) methodology.

The first step was to conduct an in-depth analysis and to create an architecture that would be used to guide the program. Client training was followed by establishing a top management business improvement teamthat directed program actions and granted empowerment.

A cross functional team, led by the client and facilitated by Thomas Group Resultants®, was formed to drive creation of the TTM process and to establish project management discipline through the use of work packages. The team mappedthe processes and identified high-leverage process improvement barriers. Fast action barrier removal teamswere formed torapidly eliminate these problems and remove associated substitute processes.

Key barriers included:

  • A culture of optionalism and a lack of accountability
  • Inadequate resource management processes
  • No project prioritization or starts control
  • Poor project management and cost control
  • An inadequate customer communications process
  •  A lack of limit or control on commitments to customers

Developing a work package library and structure enabled the company to plan resources, schedule completion of work across projects, meet deadlines, establish cost parameters, accelerate project completion, and improve first pass yield.

Implementing a formal project management process around an SAP project management tool led to an ability to create work breakdown structures to support projects. It also provided the ability to establish and perform formal periodic project reviews, focus on project solving, accelerate project completion, and assign skills where needed.

Forming joint customer and engineering product teams resulted in greater clarity in initial specifications, a reduction and control of running changes and faster response to requests for quotation. Establishing formal starts control benefited the organization in terms of focusing resources by project priority, prioritization of down-stream activities and higher productivity.

The Bottom-line Results

  • Engineering productivity improvement was at 80% of target (with the program still running)
  • On-time delivery of work packages improved by 50%
  • First pass yield of work packages improved by 25%
  • Total projects in the pipeline reduced by 25%

What the Clients Said

“Thomas Group is unlike any other consultant…you get things done.”
“You have shown us how to drive change.”
“Your discipline and systematic approach have really paid off.”
“You partner with us and really get to know what is going on.”
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