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Søren Ejnar Nielsen - Danfoss
1 | Global Project Office - Property of Danfoss Power Electronics
Projects Across BoundariesDanfoss Power Electronics
Søren Ejnar Nielsen, Senior Director, Global Project OfficeOctober 2014
2 | Global Project Office - Property of Danfoss Power Electronics
Søren Ejnar NielsenSenior Director, Global Project Office
Certified IPMA level A
29 years’ experience with Danfoss Power Electronics,
8 years as head of Global Project Office
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Søren Ejnar Nielsen - Danfoss
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Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)
• Project model development and deployment across sites
• Project managers • Change in profile
• Navigate in a global organization
• Project execution across sites• Learnings and observations
• Top 5 learnings
• Q&A
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Power Electronics – one of Danfoss’ core businesses
Power ElectronicsStandard VLT® DrivesCustomised Drives
Power modules Inverters for Solar & Wind
Refrigeration & A/C Controls
• Mechanical Controls• Electronic Controls
• Supermarket Service• Micro Channel Heat Exchangers
CommercialCompressors • Commercial Compressors
• Variable Speed Platforms • Turbocor
Heating Solutions
• Residential Heating• Electronic Heating Systems• Hydronic Balancing Controls• Burner Components
• Heat Pumps• Heat Recovery Ventilation
District Energy• District Energy Controls• District Energy Stations
• Plate Heat Exchangers
Power Solutions • Mobile hydraulics, electro-hydraulics and full-electric solutions
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Our business is power electronics
… high-quality energy-efficient solutions that save energy and optimize processes
Drives
Solar Inverters Power Modules
21milliontons of CO2 are saved annually
through the solar powered electricity systems that are installed worldwide.
37milliontons of CO2 are saved every year
by the 4 million VLT®variable speed drives installed worldwide from Danfoss.
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Our customers operate within a wide range of industries
• Heating, Ventilation and Air Conditioning
• Food & Beverage
• Water
• Industry (e.g. chemical, textile, material handling and mining, cranes)
• Automotive
• Solar and wind energy
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VLT® Drives electronic motor control
• A frequency converter controls electric motors so they only run at the speed necessary to obtain the desired effect
• Electronic motor control can typically save half the energy in pump and fan applications
• Today, only 8% of all electric motors globally are frequency controlled
• Products
• Frequency converters
• Soft starters
• Accessories
37milliontons of CO2 are saved every year
by the 4 million VLT®variable speed drives installed worldwide from Danfoss.
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Customised power stacks
• The power stack is a high quality power electrical assembly which ensures the maximum efficiency from power conversion systems
• Compact and lightweight design with ShowerPower® cooling technology
• Modular and scalable design to meet your needs
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Customised power modules
• A power module is an electronic switch used in power conversion and motion control applications
• Cutting edge technology designed to meet customer requirements
TS16949standard
meets strict Automotive Industry requirements
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Global presence
Danfoss Power Electronic centers
• China (Haiyan)
• Denmark (Nordborg and Graasten)
• USA (Loves Park and Milwaukee)
• Germany (Flensburg, Offenbach and Karlsruhe)
Worldwide sales and service
• 50 Danfoss sales and service companies
• More than 200 partner companies, distributors, agents and service shops
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Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)
• Project model development and deployment across sites
• Project managers • Change in profile
• Navigate in a global organization
• Project execution across sites• Learnings and observations
• Top 5 learnings
• Q&A
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Variable Speed Drives, R&D & S/C footprint
Haiyan
Beijing
ChennaiPune
TallinnGråsten
Brucksal
Rockford
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Danfoss Variable Speed Drives- Global R&D
Global R&D
Global Project Office
R&D Design CenterChina
R&D Design Center North America
R&D Design CenterEurope
Technology & Innovation
Personal Assistant
R&D Design Center India
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Global project organization 2010
Global Project Office
Soren Ejnar Nielsen
Local Project Management Office
Project Portfolio Reporting
Resource Management
Processes
R&D Processes
Denmark
USA
Consilium
AdminProject committee
DK
Line
Matrix
Project
US
CN
US R&D
CN R&D
DK R&D
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Global project organization 2014
Global Project Office
Soren Ejnar Nielsen
Local Project Management Office
Project Portfolio Management
Soren Ejnar Nielsen
OutsourcingResource
ManagementProcesses
DK Program 1
DK program 2
DK program 3
US program
CN program
IN program
Global Project Excellence Office
Denmark
China
USA
India
Denmark
India
Consilium
Special
AdminProject committee
DK
Line
Matrix
Project
US+CN+IN
US R&D
CN R&D
DK R&D
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Project organization
IPD (Integrated Product Development)
• Co-location• Virtual co-location
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Project model and responsibility
Includes:
Innovation Strategy,
Customer Understanding,
Technology Management,
Ideation Process,
Portfolio Management,
Project Planning
Includes:
Effective
launch
to customer
Value Delivered
Includes:
Project Definition, Project Implementation, Market Launch and Ramp Up, Minor
Product Adaptations
Activities are executed according to a scalable Deliverable Plan and follow the
defined Product Development processes.
Idea
Idea
Idea
Idea
Idea
Idea
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�Line B
�Line A
Customer segment
�...
Target area
�Whole-
salers
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lines
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Customer segment
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Target area
�Whole-
salers
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lines
Detailed Design &
Production PreparationM0
Front End Project Execution
New Portfolio
New
Portfolio
M1M3 M5
Verification, Production
Preparation & Launch Execution
Specification &
Concept Design
Ramp-up
Running
Production
M7
Cash
M6
At each gate
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Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)
• Project model development and deployment across sites
• Project managers • Change in profile
• Navigate in a global organization
• Project execution across sites• Learnings and observations
• Top 5 learnings
• Q&A
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Processes
• Danfoss Business Systems
• Programs DPP, DSP, FPP, PDP
• PDP - Product Development Program
• Across divisions:
• Same milestone definitions
• Same overall processes (customer involvement, launch etc.)
• Same audits
• All managers from CEO level and down are trained and certified in the model
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Processes – our journey
Process project
• Objectives• Remove non-value added complexity and waste from the Product Development Process
• Create a lean scalable project process that can be applied to projects of different size, risk levels and platforms
• Can be implemented at all PE development locations
• Increase efficiency for “paper work” tasks
• M0-M1 → max 16 working weeks
• M1-Release → max 12 calendar months
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Danfoss Power Electronic process
• The PE standard allows for scaling the procedures and deliverables to match the project complexity and size and it describes:
• The Project Milestone Plan
• The structure of governance for the Integrated Product Development
• Roles and responsibilities within projects
• Milestone documents and approval
• The generic activity overview shows main Integrated Product Development activities with links to processes and templates allowing for efficient project planning.
• The project milestone deliverables process supports governance and product quality assurance
Weeks -6 -5 -4 -3 -2 -1 M0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 M1
PROJECT MANAGEMENT
PRODUCT
DEVELOPMENT
MARKETING
SUPPLY CHAIN
Capture detailed engineeri ng requirements. Write and revi ew Requi rement Specification (RS)Req. S pec.
Prouct Cl inics ( Create mock-up and test it at customer workshops )
DFMEA workshop (On selected parts of the design)
Perform stakeholder analysi s. Write Stakeholder Anal ysi s & Communicati ons Plan
Stakeh. + comm. plan
Capture customer requirements. Write, review and approve Basic Specification (GS)Basic
S pec.
Bui ld Val ue Proposition part of Target G roup Gross Profi t overvi ew (Target GGP) , and update commerci al part of Business Case
Update Busi ness CaseBusiness Case
Bui ld Variable Cost part of Target Group Gross Profit overview (Target GGP)
Variable
Cost targe t
Devel op and review Gl obal Market Introduction Pl an to M1 level GMI P lan
Develop and review F iel d Test scope and strategyFie ld
Te st P lan
High Level Concept Workshop
Lean Voice of the Customer Review
Workshop
Defi ne quality goals
Quali ty workshop
Part 1
Ressource pl anning and approvement
Ressource sheet
Risk & Uncertai nty workshop
Risk & uncert. Log
Projec t planning
workshop
Schedule M1-M6 +
M1-M3
Quality workshop
Part 2
Quality
pl an
Project learnings
workshop
Proje ct
learnings
3P workshop
Lean Voice of the Customer Workshop
(LVoC)
Kick-off
workshop
Col lec t i nformation and buil d Market Fac t Pac kMarket
Fac t Pack
Perform Customer WorkshopsPlan c ustomer invol vement for Customer Workshops
Develop and revi ew Proucti on Conc ept, wri te Produc ti on Requirement Speci fi cation (PRS)
Prouction Req. S pec.
(PRS )
Develop and revi ew Sourcing Pl anSourcing plan
Col lect / write Suppl y Chai n mi lestone
reccommendati on
S / C Mile stone
Reccom.
Col lect / write Sales & Marketing / Product
Management milestone reccommendation
S&M / PM Mile stone Reccom.
Col lect / write Product Development milestone reccommendation
PD Mile stone Reccom.
Review and update Business CaseBusiness Case
Ressourc e planni ng and approvementRessource
shee t
Plan M0-M1 including workshop scal abil ity
High le vel pl an M0-M1
Develop Product Test Rational e. W ri te and review high level Product Test Plan (PTP)Prodcut
Test Pl an
Develop and review product concept design, Write and revi ew System Product Design Specification (System PDS)System PDS
Concept BOM
Update Executi on Fact Pack including project leader mi lestone rec ommendation
E xecuti on f act pa ck
Evaluate Target Group G ross Profit and perform c orrecting ac ti ons (Target GGP)
Targe t GGP
Collect milestone recommendations from R&D,
S&M, S/C
Col lec t i nformation and buil d Executi on Fact Pack indludi ng project l eader milestone recommendation
E xecuti on F act Pack
Perform project complex ity assessment
Complexity assessment
Develop Service Concept Strategy
Service Concept Strategy
Generic activity list for each phaseWork-
streamsDeliverable Deliverable Deliverable Deliverable Deliverable Deliverable
1 Bus iness Case 1 Updated Bus ines s Cas e 1 Updated business c ase 3 Request for Q- re leas e 1 U pda ted Business Case Business Cas e upda ted
2 Projec t Fac t Pack 2 Top Ris ks & rela ted mitigat ion plan 2 Updated top r isks & re la ted mitiga tion plan 3 2 U pda ted top r isks & rela ted mitigat ion plan Closed Risk p lan
2 Projec t comp lexity Asses sment 2 Ag reed Resource Plan (M1-M6) 2 Agreed Ress ource Plan (M3-M6) 2 Agreed Ressource Plan (M5-M6) Closed projec t in Cons ilium
2 Agreed Resource Plan / team set ting (M0-M1) 1 Commit ted cos t/inv estmen t budget (M1-M6) 1 Cost /investmen t budget update (M3-M6) 1 C ost/ inves tment budge t upda te (M5-M6) Closed CAPEX release plan
1 Projec t De liverables 2 Commit ted Schedu le (M1-M6) 2 Commit ted Schedu le (M3-M6) 2 C ommitt ed Schedule (M5-M6) Closed Quality p lan
1 Projec t milestone recommendation 2 Commit ted Det ailed Schedu le (M1-M3) 2 Commit ted Det ailed Schedu le (M3-M5) 2 U pda ted Quality t arget s and main ac tions Closed handover plan
2 2 Qua lity ta rgets and main actions 2 Updated Q uality targe ts and ma in actions 2 U pda ted main stak eho lde r and communic ation p lan Closed Sample cer tifica tes
2 3 Ma in st akeholders & related c ommunica tion 3 Updated main stakeholde r and commun ication p lan 3 U pda ted team ro les and responsib ilit ies Pro ject Learn ings/ev alua tion
2 2 Team ro les and responsib ilities update 2 Updated team roles and respons ib ilities 3 Fina l Handover Plan Closed /ag reed c ons essions
2 2 Project Lea rnings 2 Prelimina ry agreement on handove r 2 Project Learnings/evaluation Milestone recommendat ion
2 2 Projec t D eliverables Project Lea rnings/ evaluation 2 Projec t De liverables
2 Projec t mi les tone recommendati on 1 Projec t D eliverables Projec t mil estone recommendation
Projec t mi les tone recommendati on
2
1
1 Milest one recommenda tion 2 Miles tone Recommendat ion 1 Miles tone Recommendat ion 3 Milestone Rec ommendation 2 Milest one Recommendation Milestone Recommenda tion
1 Market Fact Pack 1 Updated va lue proposition , Sales Volumes, Pr ices 2 Updated va lue proposition , Sales Volumes, Pr ices Field Test Eva lua tion (VLT D rives) 2 U pda ted value p roposition , Sales Volumes, Pr ices Updat ed value proposition, Sa les Vo lumes , Prices
2 3 Cust omer workshop held 2 Loc al In troduction Plans (L IP) Service manual is ready G MI sta tus repor t Follow up on LIP implementa tion and s ales
2 Signed G S 3 Fie ldtest p lan (VLT Dr ives) Tec hnica l literat ure is ready Marke t commun ication roll-out sta rted Review o f in fo pack age
Marke t approach and introduction 3 Train ing p lan Awarenss t ran ing de livered Va lue selling roll-out s tar ted Product manage r appoin ted fo r M6+
Fie ld test, scope & s tra tegy (VLT Drives) 2 Typecode and p roduct matr ix in EasyDMS Pre-in troduction by Product Manager and Marke ting Training roll-out star ted
Se rvic e concept stra tegy Pr icing and Product Hierachy Traning p lan ready f or ro ll-ou t
Updated va lue proposition Techn ical litt eratu re 1st dra ft Market Communic aiton Plan ready fo r roll-out
Va riant economy ca lcula tion Updated Market Fact Pack Dr ives can be con figu red in con figu ra tor , acces sor ies
Va lue selling foundat ion GMI plan update and st atus VLT s hop is ready with product s and p rices
Techn ical lite ra ture s tra tegy Va lue selling a rgument s high level App roval o f G S fulf illment report
Tran ing stra tegy Sales fo recas t upda ted
Assembly and disassembly workshop
2
3 Milest one recommenda tion 3 Baselined Requirement Spec ificat ion 3 Deta iled des ign des crip tion Product Approval 3 Product Approva l Finalis ed PS
2 3 Concep t/archit ectu re descrip tion 3 Product documen tation (proto type leve l) Product documenta tion (Pilo t lev el) 3 Product Specif ication (PS) Updat ed product documenta tion
3 Concep t strategies, dependenc ies and constraints 3 Bill o f Mat eria l (BO M) Field Test Eva lua tion (DSI) 3 Product doc ument ation (1. s er ies level) De fect eva lua tion repor t
3 Concep t BOM & Var iab le Cost Targe t 3 Working Pro tot ype 3 Milest one recommenda tion Milestone recommendation
1 Product Test R ationale 1 Environmen tal assessmen t 3
3 Fie ld test, scope & s tra tegy (D SI ) 3 Updated / det ailed product t est plan 2
2 Miles tone Recommendat ion 3 Fie ldtest p lan (DSI)
2 R&D as sess ment / milestone rec ommendation
3
3 Milest one recommenda tion 3 Miles tone recommenda tion 3 Miles tone recommenda tion 3 Milest one recommenda tion Milestone recommendation
3 Captu red requirement s 2 Updated Captu red requ irements 3 Handove r procedure requirements 3 C apacity handshake Close SCRS
2 Strategy 2 Updated Strategy 3 3 H andove rdocument f or equipmen t Pro ject to Ope ra tions handove r document
Concep t 2 Design and specifica tion 2 Site ac cep tance t ests Follow up on forecast and compare with BC
Q ua lit y leve l and iss ues on predesso r/s imilar p roduct s Qua lity ta rgets Updated Q uality targe ts Samp le ce rtif icate sta tus O verall qualit y eva lua tion and quality plan upda te IFG handover
CAPEX estimat es/release Updated CAPEX Handove r read iness evalua tion (running product ion) U pda ted CAPEX Close budget and ressource account s
VC est ima tes Updated VC U pda ted VC Failure and po ten tials follow up (ITT)
Plan f or proto types (mix, quant it y, size ) Plan f or pilot s (mix, quant it y, size ) Approved 1. ser ies Clear quest update
Plan f or HAWA, accessor ies and sparepa rts Clean up obs olete pa rt no's introduced by pro ject
Plan f or loca l/global Q -release
Plan f or ramp up /down
Plan f or Suppor t training and equipmen t
M6M3
Sales &
M arketing /
Product
M anagement
Supply Chain
M5M1M0
Project
M anagement
PD
(HW, SW, CE,
Test)
Q Release
PE project milestone deliverables
501G0401PE project organization and New Product
Development
PE standard
Process descriptions
22 | Global Project Office - Property of Danfoss Power Electronics
Deployment in a global organization
• Ran pilots (2010)
• Based on the standard and the milestone delivery plan we:
• Trained all the project team members
• Used all the new methods and tools
• Reviewed the pilots
• Corrected and updated the material
• Went live full scale (2011)
• All new projects had to follow the new model
• Introduced local process managers and facilitators
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Deployment in a global organization
• Full operation 2014
• All projects are executing according to the processes and model
• Audits are taking place – approximately same score on each site
• Only minor adjustments are being discussed
• Focus is on the ”soft” competences
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Deployment in a global organization
Training
• Language in China – written material
Cookbook – script
• Culture, differences between Europe, the USA, India and China
Rigid – the non-negotiable
• What is a must and what can be adjusted to fit the local culture?
Maturity in the organization
• Who decides – line managers or project managers?
• To train the line management deep enough
Local responsibility of the processes
• The devil is in the detail – need to empower local process managers
• To have local facilitators to support project managers
What did we learn
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Søren Ejnar Nielsen - Danfoss
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Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)
• Project model development and deployment across sites
• Project managers • Change in profile
• Navigate in a global organization
• Project execution across sites• Learnings and observations
• Top 5 learnings
• Q&A
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Project manager rolein a global project setup
Change in profile
• From developing a product to delivering on a business case
• Leading from a distance
• Leading Others, Leading Leaders in different time zones and cultures or project maturity
• Virtual meetings, issues with:
• Time zones, IT support etc.
• Leading in a mix of internal and external (outsourced) responsibility
• Navigate in a global organization
• Network
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Søren Ejnar Nielsen - Danfoss
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Project manager rolein a global project setup – what are we doing
Change in profile
• From developing a product to delivering on a business caseAdd support from controlling, training
• Leading from a distance
• Face-to-face kick-off
• Core team training
• Clear roles and responsibilities
• Same processes
• Leading in a mix of internal and external (outsourced) responsibility
• Navigate in a global organization
• Network – global summit, formal pairing of project managers from different sites
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Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)
• Project model development and deployment across sites
• Project managers • Change in profile
• Navigate in a global organization
• Project execution across sites• Learnings and observations
• Top 5 learnings
• Q&A
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Søren Ejnar Nielsen - Danfoss
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Project execution across sitesIllustration
Haiyan
Beijing
ChennaiPune
TallinnGråsten
Brucksal
Rockford
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Project execution across sites
Typical elements to discuss
• Decision making
• Project management role
• Line management role
• Project organization and related complexity
• Roles & responsibilities
• Communication
• Monitoring progress
• Cultural awareness
• Team collaboration – across sites
• Team commitment and team spirit
• Planning
• Workshop participation
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Project execution across sites“project level”
• Locally responsible ”local project lead”
• Need to have several on-site meetings and extra leadership resources to build the relations and to create the team spirit (to omit ”them” and “us”)
• Different time zones:
• Communication:
• Few hours for live communication, emails take time
• Spoken language
• Meetings and minutes
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Project execution across sites“project level”
• Detailed project complexity assessment and staff accordingly
• Different urgency (priorities) across the sites
• Agreed roles & responsibilities between the teams in different sites
• High level plan with well defined integration points
• Workshop – how to execute and what to be ”aware of”
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Project execution across sites“governance level”
• Locally responsible ”local PMO manager”
• Clear and agreed escalation path
• Close cooperation on management level in all sites
• Cultural training (for the whole team) and at all sites involved
• Communication – different needs
• Different competence levels = different needs for review and support – toxic assumptions
• “Them” and “us”
• Outsourcing model
• KPI definitions
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Top 5 learnings
•Need a local ”project lead”
• Staff according to complexity
•Common processes deployed (balancing rigid and local adjustments)
•Understand the consequences of different levels of project execution maturity (matrix organization)
•Communication is key
• Prioritize face-to-face meetings in the startup phase