Published on February 27, 2014
Engineering Solutions Helping industrial OEMs reduce engineering and design cost, time to market, and improve equipment uptime through smart value redesign and engineering support Gianni Giacomelli Senior Vice President, Genpact Suresh Iyer Vice President, Engineering and Supply Chain, Genpact
A Global Business Process Services Leader: Process Transformation and Outsourcing, Analytics, Technology What we do How we do it We help leaders of some of the largest enterprises transform and run their processes and operations, including the very complex and industry-specific Unbiased, agile combination of process science, related technology and analytics limits upfront costs and enhances future adaptability Right critical mass: • we are large (64,000+ global staff) but our solutions appropriately flexible • our top management is directly involved in our client partnerships Our impact We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected… …by enabling tighter management of costs, risks, regulations, and supporting growth The results: US$22B* of impact for 800+ global clients PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 2
THE CHALLENGE PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 3
Engineering leaders face crucial strategic and operational challenges • PROCESS • ANALYTICS • TECHNOLOGY Addressing new geographies, often with different regulatory and safety standards, leading to dynamic equipment reliability, robustness, and safe-failure specifications Adopting to new and evolving technologies is necessary but costly; new materials and processes can lead to quality and reliability issues • Operational challenges • • Strategic challenges Cost/margin pressure due to high competitive intensity, frequent “design-to-cost” requirements and reducing time to market Lack of in-house capacity to support variable engineering needs and time critical projects e.g. plugging safety issues Sourcing and supply-chain issues e.g. vendor analysis, should costing, negotiations are difficult with frequently changing specifications • © 2014 Copyright Genpact. All Rights Reserved. 4
Challenges > Cost/margin pressure Most cost reduction opportunities lie in the conceptualize and design stages of product lifecycle; not easy to exploit PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 5
Challenges > Lack of in-house capacity Varying design engineering volumes and skill requirements across equipment lifecycle makes operating model difficult Product development cycle and time Peak shaving with flexible resourcing is crucial, helps rationalizing engineering cost Design Engineering Resource Intensity HIGH New Product Development FundMED amental Research 60% Validation, Maintainability & reliability testing engineering engineering 10% 5% Aftermarket service & MRO 10% 15% LOW Launch – 4 Years Launch – 2 Years Launch Year Launch +2 Year Source: Genpact experience PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 6
These issues lead to multiple concerns for industrial OEMs Reduced time to design and deliver Mastering global, complex supply-chain Drastically reduced time to develop new machines due to pressure from competitors, while ensuring that these machines can operate at close to 100 percent uptime • Globalization of product development –adapt and localize; Optimization of development process; Speed to design and deliver; Sustainability • Basis of competition is shifting toward delivering excellence in service and parts management Stress on reliable innovation OEMs are facing an increasing number of new requirements, such as more flexible machines that can be rapidly adapted to new products or formats, as well as for machines that can be easily integrated into existing plants Need for flexible resourcing model Project nature of demand, along with engineering and design intensity due to higher product standards and performance expectations need right-skilled, scalable, and flexible resourcing model; Need lower factor costs or lowcost country locations PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 7
THE SOLUTIONS PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 8
Genpact’s Engineering Solutions help Industrialize the end to end engineering lifecycle Concept Design and Finalization • Business opportunity identification support • Concept design – Digital mock-up – QFD • Preliminary design – Technical risk assessment – Predictive analysis – 3D design modeling • Engineering analysis • Sourcing strategy Detailed Design, Prototype, and Release • Detailed design – BoM, tooling, and mfg. process – Test cases and protocols • Prototype and release – Pilot assessment – Verification and validation support – First article approval, engineering release – Manufacturing release and master data update • Should costing • Supplier approval Sustenance • Reliability engineering • Value engineering • Ongoing sourcing analysis and support • Design changes implementation Technical Documentation • Product documentation • Field data management • Regulatory compliance documentation Engineering Process and IT Optimization • Process diagnostics PROCESS • ANALYTICS • TECHNOLOGY • Process redesign • Engineering IT, e.g., CAD © 2014 Copyright Genpact. All Rights Reserved. 9
e.g. non-core activities in the new product development process can be optimally supported through a flexible model.. Areas that could be optimally addressed through flexible right shoring support Develop digital mock-up for product concept Conduct Quality function deployment (QFD) studies Technical Risk and compliance assessment Design tooling & manufacturing process Develop 3D designs Update Bill Of Materials (BOM) & Product literature Reverse engineer designs of competing products Develop and test prototypes of new product Sourcing & Procurement PROCESS • ANALYTICS • TECHNOLOGY Test pilot batch and analyze findings Release engineering drawings Conduct forecasting & demand planning Supply Chain Product Design Develop digital mock-up of concept design Identify and qualify suppliers Manage Supplier Master data Manage pilot purchase orders process Optimize/manage inventory Conduct shouldCost analysis Develop Sourcing Strategy Qualify new suppliers Negotiate price, terms Negotiate price, terms Manage purchase Order process Manage purchase Order process © 2014 Copyright Genpact. All Rights Reserved. 10
.. and same can be applied to the product redesigning process as well Reverse engineer competing products (if applicable) Conduct Value Engineering for available products Prioritize cost and weight reduction opportunities Develop digital mock-up for redesign Develop and test product prototype Sourcing & Procurement PROCESS • ANALYTICS • TECHNOLOGY Test and analysis pilot batch Re-design tooling & manufacturing process Conduct Risk & Compliance assessment Update Bill Of Materials (BOM) & Product literature Revise 3D design models CAx customization Release engineering drawings Supply Chain Product Re-design Areas that could be optimally addressed through flexible right shoring support Conduct forecasting & demand planning Optimize/manage inventory Implement Change-in-Design Identify and qualify supplier (if required) Update supplier Master data Manage pilot purchase orders Conduct shouldCost analysis Develop Sourcing Strategy Qualify new suppliers Negotiate price, terms Negotiate price, terms Manage purchase Order process Manage purchase Order process © 2014 Copyright Genpact. All Rights Reserved. 11
‘Industrialization’ enabled by Six Sigma and Quality helps in.. Resourcing • • Access to talent pool of right resources to perform the task Rapid ramp up time to align resources Iterations • • Error proofing and improved turn around time for fixes Process testing to identify deviations, reasons and fixes • Lean and Six sigma based approach to constantly improve process performance levels & benchmarks Timeliness • • Robust project management techniques Deliver beyond service level agreements Issue resolution • • Process FMEA to predict weak linkages Workflow approach for technical issue resolutions Initiatives Governance • Ensure approved information goes to downstream processes Building Quality into Product design PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 12
..significant improvements in engineering process and IT Process diagnostics Process redesign Engineering IT As-is end-to-end process study Engineering processes benchmarking ECAD and MCAD library management Spend Assessment and Process Metrics Analysis KPIs and Metrics for engineering processes NC programing, CAD library Management Engineering systems landscape and data infrastructure Strategic alignment, KPIs and Metrics Legacy platform conversion Process transformation strategy and implementation PLM and CAD tools implementation Key metrics: Improved cycle time, Improved response time, Variance to want time, Lead time, Data availability and accuracy Tools/methodology: Genpact SEP methodology for process diagnostics; Leading engineering PLM tools, CAD tools PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 13
CONTACT GENPACT TO EXPLORE THE “ART OF THE POSSIBLE” PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 14
About Genpact Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients. Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability. We have global critical mass – 62,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally. Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years. For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn. PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 15
Thank You Gianni.giacomelli[at]genpact.com Suresh.iyer[at]genpact.com www.genpact.com/home/solutions/industrial-solutions/engineering-services
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