(Microsoft PowerPoint - Danfoss_Projects accross boundaries -S

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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


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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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


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.


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.


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


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








• Top 5 learnings

• Q&A


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


Global project organization 2010


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


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


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

IdeaIdea�. ..

�Line C

�Line B

�Line A

Customer segment

�...

Target area

�Whole-

salers

�OEMs �...Product

lines

�. ..

�Line C

�Line B

�Line A

Customer segment

�...

Target area

�Whole-

salers

�OEMs �...Product

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


Content








• 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


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


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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• 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



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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Content








• Top 5 learnings

• Q&A


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


• Network

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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


• Network – global summit, formal pairing of project managers from different sites


Content








• Top 5 learnings

• Q&A

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Project execution across sitesIllustration

Haiyan

Beijing

ChennaiPune

TallinnGråsten

Brucksal

Rockford


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


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


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

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Questions?

Documents

(Microsoft PowerPoint - Danfoss_Projects accross boundaries -S