Automotive Vehicle Program Management Executive Decision-Making - Increasing Capacity Throughput and Other High Performance Results.
Introduction- Results Oriented Decision-Making on Complex Vehicle Programs
The vehicle transportation industry has some of the most complex vehicle program launch complexity in US Industry. In automotive for example, OEM, Tier One, and Tier Two companies,
- Many times Product Development life cycles are described [Read more........Managing the Product Development Process Using Stage Gate Process Whitepaper] without the inclusion of manufacturing engineering and product launch phases that include all "make" and "buy" subcontracted tool & die services.
- These vehicle product launches is where all the CapEx monies are spent.
- Vehicle launches are on a major investment scale and are a dominant part of an automotive OEM's [and their Tier Ones' and Tier Twos'] success.
- These vehicle launches are completely driven by the success of the enterprise in spending millions of dollars of CapEx monies where "in process" management decision making controls are essential.
- These CapEx monies are spent on the design and build of tools, dies, molds, and special machines where integration of resources [man hours] and schedules [time] is a key component for Executive management decision-making.
- Yet the OEM's and their supply base for the most part do not have a timely, results oriented approach to getting the right information to the Executives in order to make results oriented decisions that will produce high performance results on these complex vehicle programs. This condition presents large High Performance areas of opportunities.
There are five key elements of Vehicle Program control information Executives at all levels of the OEM and the Supply Chain required making results oriented decisions that affect the program before it is completed:
1) Actual schedule performance measured against a frozen timeline where:
- Forecasted schedules are accurate enough to predict unfavorable milestones and finishes.
- Both internal projects and subcontracted services are included.
- Schedule performance can be rolled up or drilled down for multiple levels of management decision making.
- In process unfavorable schedule performance is available to Executives' review and decision making process in adequate time to impact the end result.
2) Knowing your program cost in progress which can be prioritized with man hours, subcontracting internal work and outside design and build of tools, dies, molds, and special machines. Read more about elimination of redundant planning-tracking-controlling PME [Program Management Effectiveness] Whitepaper
3) When man hour and subcontracted services are integrated with schedules [read more... Integrating Project Schedule Resources Whitepaper] where forecast of timeline milestones and finishes are accurate and man hour capacity loading are in place, there are amazing high performance results:
- 95% on time program milestone delivery performance and 15% to 20% reductions in average project lead time.
- Reductions of both project task wait [queue] times and over allocations of the same, limited resources due to multiple project tasks competing for their time.
- Major reductions in premium overtime costs due to troubled project selection, critical path recovery actions, selective overtime assignments, and subcontracting internal resources by the right amount and when they are over allocated.
- Resulting organization capacity and through put increases resulting in less or no bricks and mortar capital and no human investments for capacity purposes and a one-time cash flow reduction due to associated work in process reductions [more with less].
- Rolled up troubled performance projects, project specific critical path exception management with project remaining duration sufficient for Executive recovery actions.
4) Manage multiple programs and projects competing for the same limited resources in many locations allowing management of global enterprise using most advanced PPM [Program, Project Management] technology commercially available. Read more......