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True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Reverse EngineeringIntroductory Presentation
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
I. Objectives
II. Process, Background and Preparations
IV. Costing Results
III. Design, Material and Performance Analysis
Agenda
V. Output Recommendations and Next Steps
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Reverse Engineering Mission Statement
Identify product design differences between your company and the
competition to generate ideas for entry into new markets or cost reductions
through design changes of existing and future products to increase profitability
and competitiveness.
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RE Introductory Presentation V1.ppt
Reverse Engineering Approach
Reverse Engineering (RE) is the systematic approach to the acquisition, analysis, costing and documentation of key competitor’s technological innovations with the aim of improving performance, reducing costs of our own products and gaining an understanding of the marketplace.
The RE process attempts to reduce design related costing errors through the involvement of a cross functional team in determining cost advantages and assumes the competitor product and/or components will be produced in our facilityusing our process know-how, suppliers, labor force and equipment.
"Note that all selected systems are assembled in di fferent vehicles that operate on the same roads under the same conditions !"
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RE Introductory Presentation V1.ppt
Cost Reduction Projects
�OEM expectations and requirements currently filled by competitors to help break into new markets
�Thorough understanding of competing technologies
�Transfer all design & process clever ideas to reduce current system costs & to optimize quality, performance & profitability
�Development of a standardized cost-optimized Virtual product
New Market Opportunities
ReverseEngineering
Output
RE Objectives
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RE Introductory Presentation V1.ppt
Overcoming mind sets
“Conviction from mature industries: innovation is n o longer needed...”
Costs may be reduced by a few cents, but it´s not worth the effort!
In a mature industry like ours, there is hardly any room to modify the product!
Product design costs have been minimized for 20 years now, there is nothing to be gained
anymore!
We have the biggest market share, that
means our product’s the best!
We tried that years ago and it didn't work then so
it won't work now!
It won't meet our current customers'
specifications!
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RE Introductory Presentation V1.ppt
Agenda
I. Objectives
II. Process, Background and Preparations
III. Design, Material and Performance Analysis
IV. Costing Results
V. Output Recommendations and Next Steps
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RE Introductory Presentation V1.ppt
Process; Standard Overview
• Product segment analysis
• Market analysis
• MGPP & Technology road maps
• FMEA’s, Control Plans & process flow charts
• Customer Specifications
• Current Projects
• Historical Comp. Analysis
InputPreparation of the project
OutputPreparation Analysis of cost structure
• Establish Major Objectives
• Team set-up and training
• Selection and procurement of products
• Development of a common product structure with sub-modules before comparisons
• Staff extended teams
• Analyze differences from a technical and assembly point of view
• Prepare subsequent costing through detailed understanding of products and their assembly
• Performance & dimensional testing
• Determination of design related costs for each sub-module:
• material costs
• personnel costs
• Capital/tool costs
• Consider competitor product as if produced internally
• Analyze technical differences with focus on costs
• Derive a realistic list of action items
• Obtain commitment for Work packages
• Provide results to all involved people and departments
• Initiate project controlling using tools such as IMPACT
• List potential improvements for own product
• Evaluate related potential savings for all other products in the family
• Initiate Work packages
• Virtual Product
• Design factor for BM - Matrix
• Documentation of results
• Committed action plan with estimation of related savings
Technical analysis
Evaluation of saving potential
Planning of measures
Comparison Competitor 1
Comparison Competitor 2...
Typical Project lasts 4-8 months
Teardown Workshop
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RE Introductory Presentation V1.ppt
“The criterion for comparison is design related COSTS”
Material costs Labor costs Capital & Tooling costs
• Supplier related costs• Component raw material• % Component labor cost• Packaging costs• Allocations• Outside services
(plating,etc.)
• Direct labor difference• Material handling
differences• Effects on line rate• Direct and indirect labor• Based on internal
calculation rates
• Assembly equipment• Differences in
depreciation rates• Component tooling• Based on new
equipment in new plant & infrastructure
The Process
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RE Introductory Presentation V1.ppt
“In order to obtain a thorough understanding of cos t differences, the sub-assemblies & components must be compared rather tha n the complete product”
$0.65
$0.08
$1.15
$1.80
$0.75
$0.92
$0.34
$0.45
TOTAL = $6.14
MA
TE
RIA
LLA
BO
RC
AP
ITA
L &
TO
OLI
NG
EXAMPLE
The Process
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RE Introductory Presentation V1.ppt
Project Team
The Reverse Engineering (RE) Team should be made up of representatives from the following areas;
• RE Team Leader likely from Product Engineering or B usiness Development• Product Engineer with development experience on sel ected products• Process/Manufacturing Engineer with knowledge of ass embly process for
product family• Purchasing Coach for the selected product group• Finance representative• Technicians will be required during the teardown wo rkshop• Reverse Engineering consultant
Additional Team members may be called upon periodically from the following areas;
• Additional Product Engineering support (lab, metrol ogy, etc...)• Quality Engineers/Technicians• Assistance from maintenance or machine shop• External labs (material determination, etc…)
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RE Introductory Presentation V1.ppt
Input Preparation Analysis of cost structure
Technical analysis
Evaluation of saving potential
Planning of measures
Tear Down WorkshopsTear Down Workshops
Team Leader
Product Eng. A
Product Eng. B
Product Eng. C
Purchasing
Members80%
Resource Allocation 1/2
80%
80%
100%
100%
100%
20%
20%
20%
50%
50%
50%
100%40%
100%20%
100%
100% 80%
100%
6 104 8 12 1614
WEEK#
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RE Introductory Presentation V1.ppt
Input Preparation Analysis of cost structure
Technical analysis
Evaluation of saving potential
Planning of measures
Tear Down WorkshopTear Down Workshop
Manuf. Eng. & Tool Eng.
Test Lab
Bus. Devlmt.
Technician
Finance rep.
Members
100%20%
100%40%
100%
100% 100%
100% 75% 150%
100%25%
100%
40%
40%
WEEK#
6 104 8 12 1614
Resource Allocation 2/2
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RE Introductory Presentation V1.ppt
� Workshop Details;
� Purpose is to concentrate the competitor teardown in a short period of time with the
involvement of all team members, note that reference undergoes the exact same process
to level the playing field as much as possible.
� All team members are encouraged to brainstorm any clever idea noticed in the systems
� Performance testing and critical dimensions taken prior to any teardown (a teardown order
to be established by team for each competitor system)
� During teardown, manufacturing engineer and tooling engineer cost out
� Systems are torn down one at a time and the following performed:
• components identified and photographed
• components are measured and weight taken
• grouped together by commodity and prepared for shipment to supplier for directional quotes
• Material identification may be required by supplier or external lab
Tear Down Workshop
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RE Introductory Presentation V1.ppt
• Large room with several tables, chairs, peg boards and phones
• Access to Intranet and Internet connectionsfor at least 3 computers
• Access to both color and B&W printers• Access to current product costing information• Access to test lab, lab measurement equipment
and machine shop• Hand held measurement equipment and hand tools• Weight scale and Microscope• Post it notes, paper, plastic bags, markers, white board and sample containers
“Note that the room must be reserved for duration o f the project”
Reverse Engineering Team Room
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RE Introductory Presentation V1.ppt
Selection Criteria for the Reference Products
� The Reference Products should be;
� In the top 20% of high volume production (not a niche product)
� A basic design without all options and functionality
� For common applications also supplied by major competitors
• High volume mid-range cars and light trucks
� A version through which cost reduction opportunities can easily be transferred to most other versions
� A version between the start and peak of its product life cycle
� A product where all current costing information is available
� Consisting of standard components both made and purchased for
the division
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RE Introductory Presentation V1.ppt
Reference Product
� Door Lock Actuator System Reference Product:� High volume, compact design� Recent development with modern technology� All current costing information available� Relatively high volumes
Reference Product
EXAMPLE
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RE Introductory Presentation V1.ppt
Selection Criteria for the Competitor Products
� The Competitor Products should;� have comparable Features
� be in a comparable Product Segment (ie. Customer base, technical specification, …)
� be a World class product recently introduced
� be technically equal to or superior to Siemens
� be equal to or lower in estimated cost (preliminary)
� be a model in the peak of its product life cycle or a completely new development
� Be of alternative material to compare technical choices in some cases
“Most designs analyzed are between 3 and 5 years ol d relative to current R&D activities at competitors”
"All competitor systems provide the same function i n the vehicle!"
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RE Introductory Presentation V1.ppt
North American Fuel Rail Volumes by Material
02,000,0004,000,0006,000,0008,000,000
10,000,00012,000,00014,000,00016,000,000
Cast A
luminu
m
Extrud
ed A
luminu
mAlum
inum
(oth
er)
Plastic
Steel
Low C
arbo
nSta
inles
s Ste
elUnk
nown
TOTAL
M aterial
2000
Vol
umes
Market Analysis for Selection Process
EXAMPLE
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RE Introductory Presentation V1.ppt
Sales Forecast 2000 ($million)
317
300
226
189
71
4848
39
12724
16
34
41
85
Bosch
Delphi
Siemens
Denso (Toyota)
JECS (Nissan)
Keihen (Honda)
Nippon Injector (Mitsubishi)
Marelli (Fiat)
A isan (Toyota)
Kef ico (Bosch JV)
V isteon (Siemens Clone)
Hitachi
Kemsco (Siemens JV)
Zexel (Leaving Sector)
Sagem
EXAMPLE
Market Analysis for Selection Process
Global Competitor list
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RE Introductory Presentation V1.ppt
Bosch
Delphi
SiemensDenso
JECS
KeihinNippon
Marelli
Aisan
Kefico
Visteon
Hitachi
Kemsco
Zexcel
Sagem
0
5
10
1 10 100
CY2000 Volume
Tec
hnic
al
Inputs Provided by 16 People from both Pisa and Newport News
JVs or Copycats
Market Analysis for Selection Process
EXAMPLE
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Verification Field Trips
Purpose of Field Trips:
• Physically verify the correct system as per database• General layout of system in vehicle• Fastening of system to vehicle• Ease of access to service parts• Obtain schematics from dealers
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RE Introductory Presentation V1.ppt
10 selected 2004 NA
Competitor Products
EXAMPLE
Final Competitor Selection
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RE Introductory Presentation V1.ppt
Final Competitor Selection
VS
Reference Product
EXAMPLE
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RE Introductory Presentation V1.ppt
Air Filter
Fresh air tubeAir Cleaner Lower
Shell
Air Cleaner UpperShell
MAFHousing
Throttle Body
Fresh air intake
Joint/Seal
Clips/screws
Joint/Seal
MAFMisc Brackets
Mis
c. s
enso
rs
Cle
an A
ir tu
be
Mount/Fastener/Isolation
Misc Tubes
Mount/Fastener/Isolation Fresh Air Resonator Clean Air Resonator
Bumpers/Pads/ID
Joint/Seal
Mount/Fastener/Isolation
Joint/Seal
EXAMPLE
Costing Envelope
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RE Introductory Presentation V1.ppt
Specific Design and Costing Assumptions
Actuator System Reverse Engineering
1 Costing based on 500,000 units per year for 5 year program, total 2,500,000 systems2 Variable indirect burden added to labor for assemb ly cost
3Stand alone actuators complete RE, integrated actu ators to be analyzed for clever ideas and level of integration
4Capital amortized 5 years for assembly equipment an d 5 years for component tooling, 5 years for test equipment
5Directional quotes obtained from existing suppliers for purchased components including reference products.
6 8.0% Preventative maintenance on machines included in manufacturing cost
7Greasing stations included in Processes, type of gr ease and locations taken into account, cost of grea se not included
8 90% direct labour efficiency9 42 second cycle time for 500,000 units, 240 days a nd 24 hrs per day
10 Direct labour, overhead and machine costs € 55.43 per hour11 Due to high functional overlaps, difficult to est ablish best in class for functions or components12 Manufacturing labor and capital costs estimated m ainly on component count and complexity of assembly13 Motor costs estimated wrt reference motor, no EMC protection
GENERAL COSTING ASSUMPTION
CONFIDENTIAL DOCUMENT
EXAMPLEX X X
X
$X
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RE Introductory Presentation V1.ppt
Cost Analysis - Process Worksheets
EXAMPLELabor RatesDirect Labor Comp 14.16Assy Test Deka I 13.18Deka IV 14.362000 Economics / 5.5 million per year / 3 shifts pe r day/ 5 days per week
COMPETITOR
Seat/Guide Assy 300 10 0.005
Core Assy 2,000 10 0.036 1.000 82,024 $0.0149Leak Test 200 5 0.007Overmold 1,200 10 0.022 1.000 82,024 $0.0149
Valve Assy 750 10 0.014 1.000 82,024 $0.0149Lift Set 600 10 0.011 0.500 41,012 $0.0075
Sub-Total 4,750 0.090Cleanroom Misc.
Cap/Tool 100 10 0.002Sub-Total 100 0.002
Process Estimates
DELPHICapital Labor
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Fully Developed Roll-up Worksheets
REVERSE ENGINEERING TEAM Product: 10 Hole
Analysis: M. Hornby, D. Hazel, P.Bertini, C. Dwire, D. Revill, S. Ellis, J. Morris, P. Stewart, G. Mor ton Manufacturer:Others: G. Llanenza, S. Zapps Core Team: Phil Kummer, Mike Gauthier Reference Product:
Std-hrsEffic.Time-mach. Time-labor Cost (in $/unit)Name p 1000in %(min.)/unit (min.)/unit Material Dir/Ind Lab Capital Other Total
Sub AssembliesNeedle/Ball/Disc P 0.012 0.027 0.039Armature P 0.201 0.080 0.281Ass. needle-arm 0.027 0.040 0.067Lower Guide 0.000Valve Seat P 0.169 0.110 0.036 0.315Ass. lower guide - valve seat 0.000Non-magnetic Shell P 0.150 0.050 0.017 0.217Valve body Shell 0.000Ass. Non-mag shell to valve body shell 0.000Valve GroupValve Body P 0.250 0.050 0.022 0.322Upper Guide 0.000Lower Screen 0.000Seat O-Ring 0.000Orifice disc 0.002 0.045 0.045 0.092Back up washer/retainer P 0.010 0.010Stopper plate/Crush ring 0.000Assemble Valve GroupMagnetic Power GroupInlet Tube / Core piece P 0.316 0.060 0.025 0.401Coil, bobbin + Terminals P 0.052 0.052
Subassemblies/Components
at3miga5:
$2.2 million for
equipment, 10 year,
5.5 million per year
at3miga5:
Includes heat
treatment at .005 and
.164 for MIM part
quoted by supplier
at3miga5:
Official quote for blank tube
from precision components ass.
In house estimate at .255 +
.0856 for plating
at3miga5:
Slug quote from suppliers
In house estimate was .069
material and .036 for
machining labor
at3miga5:
To be included in
final assembly costs
EXAMPLE
List of Extended Team Members
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RE Introductory Presentation V1.ppt
Agenda
I. Objectives
II. Process, Background and Preparations
III. Design, Material and Performance Analysis
IV. Costing Results
V. Output Recommendations and Next Steps
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RE Introductory Presentation V1.ppt
Design
North American Door Lock System Type
Stand-Alone64%
Integrated36%
“NA market is currently mostly stand-alone whereby the EU market is moving towards Integrated”
EXAMPLE
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RE Introductory Presentation V1.ppt
North American Actuator Type
Linear13%
Rotational87%
EXAMPLE
Design
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RE Introductory Presentation V1.ppt
“Asians OEM's prefer injection molded and North Ame rican OEM's prefer blow molded”
Reservoir Manufacturing Process
Injection molded
55%
Blow molded45%
EXAMPLE
Design
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RE Introductory Presentation V1.ppt
“Reference actuator uses 4 components to achieve th e same function as competitors with 2”
# Total Gears
325%
425%
225%
525%
EXAMPLE
Design
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RE Introductory Presentation V1.ppt
Door Lock System Component Count
0
5
10
15
20
25
30
35
40R
ef. N
CV
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F150
Best in Class
“Range from 15 to 34 components to achieve the same function”
Average
EXAMPLE
Design
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RE Introductory Presentation V1.ppt
Actuator Volume
0
200
400
600
800R
ef. N
CV
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Vol
ume
(cm
3 )
Best in Class
Average
EXAMPLE
Design
“In many cases, the company’s reference product is already best in class”
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RE Introductory Presentation V1.ppt
Reservoir Weight
0
100
200
300
400
500
600
700
800
Ref
eren
ceT
5 Neo
n
Pac
ifica
Exp
lore
r
Acc
ord
Tib
uron
Mal
ibu
RX
8
Priu
s
Max
ima
Am
anti
Wei
ght (
gr) Average
Best in Class
EXAMPLE
Design
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RE Introductory Presentation V1.ppt
Housing and Cover Wall Thickness
0.0
0.5
1.0
1.5
2.0
2.5
3.0R
ef. N
CV
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Thi
ckne
ss (
mm
)
Average
Best in Class
EXAMPLE
Design
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RE Introductory Presentation V1.ppt
Housing/Cover Resin Material
PPSP 30%GF
POM CPA66 30%GF
PBT 10-30%GF
Material
“Reference product uses most expensive material”
EXAMPLE
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RE Introductory Presentation V1.ppt
Agenda
I. Objectives
II. Process, Background and Preparations
III. Design, Material and Performance Analysis
IV. Costing Results
V. Output Recommendations and Next Steps
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RE Introductory Presentation V1.ppt
AFM Benchmarking: Overall Attenuation
1012141618202224262830
Ref
eren
ce
2.7
Str
atus
3.3
Car
avan
528i
330i
E32
0
LS
Vill
ager
Sat
urn
LS
3.2T
L
Ody
ssey
Son
ata
MP
V
Ecl
ipse
Max
ima
Pat
hfin
der
Car
rera
IS30
0
Cam
ry
S80
Tur
bo
Jetta
VR
6
Pas
sat
Vehicle
dB
EXAMPLE
Performance Analysis
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RE Introductory Presentation V1.ppt
Motor Overall Noise Levels
54
56
58
60
62
64
66
68R
ef.
NC
V
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Mot
or N
oise
(dB
a)
Average
Best in Class
EXAMPLE
Performance Analysis
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RE Introductory Presentation V1.ppt
Actuator Force
0
20
40
60
80
100
120
Ref
. N
CV
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
For
ce (
N)
Average
EXAMPLE
Performance Analysis
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RE Introductory Presentation V1.ppt
Actuator Arm Travel
0
5
10
15
20
25
Ref
. N
CV
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Tra
vel (
mm
)
Average
“No standard, customer driven but need to know rang e from 7 to 23 mm”
EXAMPLE
Performance Analysis
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RE Introductory Presentation V1.ppt
Agenda
I. Objectives
II. Process, Background and Preparations
III. Design, Material and Performance Analysis
IV. Costing Results
V. Output Recommendations and Next Steps
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RE Introductory Presentation V1.ppt
Worm Spindle Cost
€ 0.000
€ 0.200
€ 0.400
€ 0.600
€ 0.800
Ref
. NC
V
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Cover Cost
€ 0.00
€ 0.20
€ 0.40
€ 0.60
€ 0.80
€ 1.00
Ref
. NC
V
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Housing Cost
€ 0.000
€ 0.200
€ 0.400
€ 0.600
€ 0.800
Ref
. NC
V
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Costing Analysis: Components
Average
Best in Class
Green integrates bus bars
Best in Class
Average
Green indicates metal worm
Best in Class
Average
Seal Cost
€ 0.000
€ 0.020
€ 0.040
€ 0.060
€ 0.080
€ 0.100
Ref
. NC
V
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Green indicates simple 0-ring
Best in Class
Average
Green integrates bus bars
None
EXAMPLE
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Power Group
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
Cos
t per
Uni
t
Po wer Gro up $0 .714 $0 .9 4 2 $0 .8 9 2 $0 .6 60 $0 .8 4 8 $0 .6 0 7 $0 .873 $0 .9 0 9 $0 .9 9 0
Deka IV
Deka ID
Deka NG 1
A isanB o sch EV 6
B o sch EV 14
Delp hi M M C Sag em
Valve Group
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
Cos
t per
Uni
t
V alve Gro up $0 .70 7 $0 .73 1 $0 .6 75 $0 .4 6 3 $0 .4 78 $0 .3 73 $0 .554 $0 .8 2 7 $0 .4 85
Deka IV
Deka ID
Deka NG 1
A isanB o sch EV 6
B o sch EV 14
Delp hi M M C Sag em
Dynamic Calibration
$0.01
$0.03
$0.05
$0.07
$0.09
$0.11
$0.13
Cos
t per
Uni
t
Dyn. Cal ' n $0.104 $0.071 $0.125 $0.044 $0.046 $0.076 $0.105 $0.058 $0.077
Deka IV Deka ID Deka NG AisanBosc h
EV6Delphi Denso MMC Sagem
Magnetic C ircuit
$0.50
$0.70
$0.90
$1.10
$1.30
$1.50C
ost p
er U
nit
Mag. Circuit $1.018 $1.268 $1.337 $0.971 $1.514 $0.947 $1.487 $1.176
Deka Deka Deka A isan Delphi Dens MMC Sage
Costing Analysis: Sub-Assemblies
EXAMPLE
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RE Introductory Presentation V1.ppt
Total Reservoir Cost
€ 0.00
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
€ 3.50
€ 4.00R
efer
ence
T5 N
eon
Pac
ifica
Exp
lore
r
Acc
ord
Tib
uron
Mal
ibu
RX
8
Priu
s
Max
ima
Am
anti
Green - Injection Molded
Average
“Injection molding cheaper than blowmolding?”
EXAMPLE
Costing Analysis: Sub-Assemblies
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Clutch Function Total Cost
€ 0.00
€ 0.05
€ 0.10
€ 0.15
€ 0.20
€ 0.25
€ 0.30
€ 0.35
€ 0.40
€ 0.45
€ 0.50R
ef. N
CV
Ave
o
MP
V
Acc
ord
RX
8
TL
Civ
ic
F15
0
Best in Class
AverageEXAMPLE
Costing Analysis: Sub-Assemblies
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Costing Analysis: Cost vs Performance
Number of Components vs Cost
Aveo RX8
Accord
TL F150MPV
CivicRef
€ 3.00
€ 5.00
€ 7.00
12 24 36Number of Components
Act
uato
r Tot
al C
ost (
€)
����
����
Trend Line
EXA
MPL
E
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Costing Analysis: Cost vs Performance
Actuator Noise vs Cost
AveoRX8
AccordTL
F150MPV
Civic Ref
€ 3.00
€ 5.00
€ 7.00
50.00 65.00 80.00Actuator Noise (dBA)
Act
uato
r Tot
al C
ost (
€)
����
����
Trend Line
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Actuator Weight vs Cost
Aveo
RX8
Accord
TLF150
MPV
CivicRef
€ 3.00
€ 5.00
€ 7.00
100 150 200Actuator Weight (gr)
Act
uato
r Tot
al C
ost (
€)
����
����Trend Line
Costing Analysis: Cost vs Performance
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Costing Analysis: Overall Results
Total Material Cost per Unit
€ 0.00€ 1.00€ 2.00€ 3.00€ 4.00€ 5.00€ 6.00€ 7.00
Ref
eren
ce
Ven
ture
Land
crui
ser
Car
avan
Ody
ssey
Fre
esta
r
Total Labor Cost per Unit
€ 0.00
€ 1.00
€ 2.00
€ 3.00
€ 4.00
€ 5.00
Ref
eren
ce
Ven
ture
Land
crui
ser
Car
avan
Ody
ssey
Fre
esta
r
Total Capital Cost per Unit
€ 0.00
€ 0.20
€ 0.40
€ 0.60
€ 0.80
€ 1.00
Ref
eren
ce
Ven
ture
Lan
dcr
uise
r
Car
avan
Ody
ssey
Fre
esta
r
Total Tooling Cost per Unit
€ 0.00€ 0.10€ 0.20€ 0.30€ 0.40€ 0.50€ 0.60€ 0.70€ 0.80
Ref
eren
ce
Ven
ture
Land
crui
ser
Car
avan
Ody
ssey
Fre
esta
r
Average
Best in ClassBest in Class
Average
Best in Class
Average
Best in Class
AverageEXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
T O T AL C O S T
$ 0 .0 0$ 0 .5 0$ 1 .0 0$ 1 .5 0$ 2 .0 0$ 2 .5 0$ 3 .0 0$ 3 .5 0$ 4 .0 0$ 4 .5 0$ 5 .0 0
Dek
a IV
Dek
a ID
Dek
a N
G 1
Dek
a N
G 2
Ais
an
Bos
ch E
V6
Bos
ch E
V14
Del
phi
Den
so
MM
C
Sag
em
Cos
t per
Uni
t
Ma te r ia l L a b o r Ca p ita l
Cos
t per
Uni
t
EXAMPLE
PLANNED TARGET
Competitors
Ref
eren
ce
Costing Analysis: Overall Results
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
I. Objectives
II. Process, Background and Preparations
V. Output Recommendations and Next Steps
III. Design, Material and Performance Analysis
IV. Costing Results
Agenda
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Output: Customer Preferences
Aluminum PlasticCarbon
SteelStainless Steel
North AmericaEuropeNote:
BMW
VW
Renault
Opel
Mercedes
Volvo
DaimlerChrysler
Mercedes
Ford
General Motors
PSA
Fiat / Alfa Romeo Fiat / Alfa Romeo
Honda NA
Mitsubishi NA
Nissan NA
Suzuki NA
Toyota NA
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Overmolded seals:• Several systems with overmolded grommets, tube extensions and tube seals
EXAMPLE
Output: Clever Ideas
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
EXAMPLE
Output: Clever Ideas
# Idea Description System1 Gears Hollowed out for light weight, lowest priced material (PP?) Civic2 Housing
Integrated bus bars and connectors for motor and limit switch PP material
Accord
Cover PP material using 1/2 height for housing and cover Accord3 Motor Knurled cheapest solution, lower power wrt to gearing, short shaft F1504 Worm spindle Plastic pressed onto motor knurled shaft Accord5 Connectors Integrated into housing, one piece molding w/ overmolding Accord6 Clutch Motor shaft mounted simple clutch F1507 Clutch Torsional Spring with spiral follower Civic8 Limiter Design incorporates free wheeling with no additional components Camry9 Limit Switch Sliding copper contacts Accord
10 Gear Spindles Off the shelf 3mm steel rods w/o plating MPV11 Gears Integrated clutch and limiter functions to output shaft, POM C material Accord12 Final Assembly Simple assembly with minimum components MPV
Clever Ideas
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Total RE cost savings of Y%
3,4,5 Power group - Internal
1 Inlet tube – Competitor V
Adjusting tube – Competitor Z
7 Spring – Competitor X
9,10 Ball Armature – Competitor W
11 Valve Seat – Competitor X
8 Valve Body - Internal
2 Upper O-ring – Competitor X and Z
13 O-ring - internal
14 Filter - Competitor X
12 Orifice – Competitor Y
# Components reduced by X%
EXAMPLE
Output: Virtual Product
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
X Components, simple assembly, compact design
Y% lower cost than reference, Z% lower cost than best in class
Integrated housing / bus-bars / connectors
Plastic motor spindle
Motor
Integrated main gear / clutch spring / limit
switch
Sliding Contact
O-ring sealArm shaft
Gear Spindle
Output: Virtual Product
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
# Function/Component Description System Cost
1 Housing PP w/ Integrated bus bars, sliding contact for limit switch Accord € 0.608
2 CoverThin walled, change to PP instead of PBT 30%GF US/laser weld Accord € 0.105
3 Clutch Torsional spring with features in main gear Accord € 0.0294 Motor Knurled shaft Johnson, good performance, low noise F150 € 0.5715 Worm Spindle Use POM instead of PA 66 Accord € 0.0476 Main Gear POM C multi-purpose Civic € 0.1047 Limit switch Sliding contact Accord € 0.0228 Gear spindle 3mm diameter steel rod, cut to length MPV € 0.0109 Output shaft Follower type PA 66 Civic € 0.04910 Output lever POM C friction welded to shaft Civic € 0.05111 Shaft Seal Simple of the shelf o-ring Accord € 0.01812 Final Assembly MPV simple assembly adjusted for even simpler design MPV € 0.937
Total Cost € 2.551
Door Lock Actuator System Virtual Product Cost Redu ction Ideas
EXAMPLE
Output: Virtual Product
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Output: Virtual Product
Total Cost per Unit
€ 0.00
€ 1.00
€ 2.00
€ 3.00
€ 4.00
€ 5.00
€ 6.00
€ 7.00R
ef. N
CV
Ave
o
MP
V
Acc
ord
RX
8 TL
Civ
ic
F15
0
Virt
ual
X% reduction in cost over the
reference product
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Output: Virtual Product
Normalized Total System Cost
€ 1.000
€ 1.500
€ 2.000
€ 2.500
€ 3.000
€ 3.500
€ 4.000R
efer
ence
T5
Neo
n
Pac
ifica
Exp
lore
r
Acc
ord
Tibu
ron
Mal
ibu
RX
8
Priu
s
Max
ima
Am
anti
Virt
ual
X% lower cost than Reference
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Output: Existing Systems Work Packages
T5 Reference Analysis
# Function Change Descrip tion Applications Current CostNormalized
T arget Savings
1 O-ring Eliminate 1 o-ring All € 0.03 € 0.00 € 0.030
2 Screen/Filter Replace mouth screen with pump filter A ll € 0.31 € 0.16 € 0.148
3 Filler neckThermo-formed corrugated hose
PE/PP talc filled All € 1.26 € 0.88 € 0.378
4 Reservoir Material change to PP 30% Talc filled All € 0.45 € 0.31 € 0.134
5Pump and Level indicator grommets
Change from EPDM to TPE/Y, assume 20% savings All € 0.18 € 0.14 € 0.036
T5 Reference Analysis 04/05 05/06T OT AL € 2.22 € 1.49 € 0.73 ######### € 152,322.40
Percentage 32% 22% 10% 210,000 210,000
BMW 3 Series
1 Reservoir Material change to PP 30% Talc filled All € 0.00 € 0.000
2Pump and Level indicator grommets Change from EPDM to TPE/Y All € 0.32 € 0.28 € 0.038
BMW 3 Series 04/05 05/06T OT AL € 0.32 € 0.28 € 0.04 € 18,924.00 € 18,924.00Volume 500,000 500,000
System #1
System #2 EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Output: Existing Systems Work Packages
Reverse Engineering Potential Savings SummaryBy Platform
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
00/01 01/02 02/03 03/04
Fiscal Year
Pot
entia
l Sav
ings
($C
dn)
LH
W Car
H Car
Civic
Accord
BR
RS
PL
JR
DR
AN/DNEXAMPLEP
latforms
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
� Work Packages assigned to customer teams
� All Workpackages will be rolled into the company cost saving program once DI & feasibility established
� Knowledge transfer to new programs
� Implementation team will assist customer teams
AN/DN 7
DR 8
JR 3
PL 9
RS 5
BR 4
Accord 1
Civic 4
H Car 4
W Car 6
LH 16
TOTAL 67
Platform Workpackages
Output: Implementation Plan
Num
ber of Workpackages
Platform
s
EXAMPLE
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
EXAMPLE
Title: Title Coach:
Leader
WP#:
N/A
Description: Implementation Stage: DI 1 DI 2 DI 3 DI 4 DI 5
Plan (Mn/Year):
Actual (Mn/Year):
Key Dates, Next Steps, Milestones:
Task Responsible Date Comments
Output: Workpackage Tracking Sheets
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
� Complete feasibility of cost reduction ideas
� Continued development of Virtual Product
� Carry forward Work Packages with management support
� If more competitor products can be obtained, proceed further with RE
� Invite all design engineers and project managers to visit RE room to review results and recommendations
� Invite Customers to RE Room so we can show the level of depth and the knowledge we have on ‘their’ competitors
� Ensure that all new development projects incorporate the Best Ideas and concepts from RE
Next Steps: Ongoing Activities
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
EXAMPLERE Ongoing Activities Annual Costs Assume $60/man-hour & 220 days/year
# Project # sys Timing Leader + NVH Test Purch Tool Manuf Qual P.C.Part time Man-Days $ Cdn Misc. Overall
1 Air Induction 4-6 Ongoing 103 3 3 10 3 4 6 2 134 $64,160 $12,000 $76,160
2 Intake manifolds 1-2 Ongoing 103 2 2 2 1 1 2 1 114 $54,560 $12,0 00 $66,560
3 System Modules 1-2 Ongoing 103 3 3 2 2 4 2 1 120 $57,440 $12,000 $69,440
TOTAL 367 $176,160 $36,000 $212,160
RE Future Projects One Time Costs Misc. Includes parts/fixtures and travel
# Project # sys Timing Leader + NVH Test Purch Tool Manuf Qual P.C.Part time Man-Days $ Cdn Misc. Overall
1 AI Truck/SUV 8-10 9/01-12/01 0 5 5 10 5 7 10 5 47 $22,560 $20,00 0 $42,560
2 AI 4 Cylinder 15-20 10/01-7/01 0 10 10 15 10 13 20 5 83 $39,840 $40,000 $79,840
3 IM 4 Cyliner 11 May/4/01 0 0 0 3 0 0 0 0 3 $1,440 $0 $1,440
TOTAL 133 $63,840 $60,000 $123,840
Total
Total
Next Steps: Future RE Activities
ProductSegments
Other vehiclePlatforms
Investments inHuman resources
Investments inAcquiring competitor
products
$
$
True RE Introductary Presentation 2006© True RE 2006 All Rights reserved
RE Introductory Presentation V1.ppt
Thank you for your time, any questions?