Complexity Management - core Element of complex Product Architectures John Deere Live Report Frank Bürschgens Bietigheim-Bissingen, September 2010 John Deere History 1837 – John Deere develops the first self scouring steel plow 1918 – John Deere enters the tractor business 1927 – John Deere sells its first combines 1956 – John Deere „goes abroad“ 1963 – John Deere starts to sell lawn & groundscare products 2 | Complexity Management | September2010 Agriculture and Turf Global Operating Model (GOM) 5 Global External Platforms – A platform consists of a portfolio of ‘like’ product lines Crop Harvesting Turf and Utility Hay and Forage Crop Care Tractors Combines Utility Vehicles Seeding Front-End Equipment Riding Lawn Equipment Self-Propelled Forage Harvesters Large (7000, 8000, 9000) Cane Commercial Mowing Heads Golf Mowing Cotton Walk-Behind Mowers 3 | Complexity Management | September2010 Balers Tillage Application Equipment Medium (6000) Utility (2000, 3000, 4000, 5000) Loaders John Deere Werke Mannheim (D) John Deere‘s largest asset outside North America – 1.5 mil tractors produced since 1921 – Production 2009: 32,100 units – Represents 2/3rds of the German tractor production – Products: 5M/5R/6030-/7030- Series – 70 – 200 hp – 2,900 Employees 4 | Complexity Management | September2010 External and internal megatrends have a significant influence on the JD business External megatrends • Increasing population • Environmental • Diversification of the markets/global markets • New technologies: E-vehicles and mechatronics • Shorter innovation and technology lifecycles • Solutions provider (IMET) Internal megatrends • GOM: • Product lines • Internal + external platforms • .. • Design anywhere build anywhere (DABA): global R&D and productions networks • … 5 | Complexity Management | September2010 Agrar-ManagementSystem (AMS) AutoTrac iTEC Pro ISOBUS JDLink Field Doc Mid-Tractor: Product Architecture Organization Complexity Management Variety and Cost: - Avoidance - Reduction - Managing Evaluation through the whole value chain Strategic component planning Focus of presentation | Complexity Management | September 2010 Product Specification Product requirement Design specification PDP changes Required vs. realized features Product Definition/ Engineering Configuration Generic modular product structure PDP-projects CH Chassis DT D riv e Tra in OS Op era tor S ta tio n HY Hy dra ul ics RI Re ar Imp l. EN E ng in e EA En gi ne A u xil ia ry AA Tr actor gen era l FA Fro nt A xl e FI Fr on t I mpl . RA R ear Ax le Components + configuration Preparation of customer configuration Overview of the status quo and current activities of the complexity management CH Chassis DT Drive Train OS Operator Station HY Hydraulics RI Rear Im pl. EN Eng ine EA Engine Auxiliary AA Tractor general FA Front Axle FI Front Impl. RA Rear Axle • Based on the pilot projects: roll-out of the complexity management • Training of the method and the supporting tool • Application for identified main modules existing “building block” structure 18,00% 16,00% TIC percentage 14,00% 12,00% • Further development of the method: module roadmap for lifecycle variety planning 10,00% 8,00% 6,00% • Complexity cockpit chart 4,00% 2,00% 0,00% 0 20 40 60 80 100 number of ETN (variants) per SFC (Design center view) 7 | Complexity Management | September 2010 120 • Guideline for generic modular product structure (building block) The easy and scalable application of the feature tree is the first step to implement complexity management fast 2. managing complexity/ defining scenarios 1. Application of the feature tree A A Open CM w/ Citrix Define variety drivers B Set-up rules & feature tree C B C Define volume and costs D D Pareto and option analysis E E E Possible scenarios: • Bundling/ packaging • Standardization/ modularization • Interface management • “Roadmapping”/ lifecycle • Substitution of variants • Just in sequence • Variant creation point • … C • Fast application for one person or small group (engineer, marketing) • Flexible application on different structure levels (single part, module, product) à scalable introduction 8 | Complexity Management | September 2010 • Cross functional team • Project specific Different variety impact along the value chain Market planning ProductSpecs and variety planning # variants Waterloo DesignCenter Mannheim DesignCenter interfactory Waterloo factory 9 | Complexity Management | September 2010 Mannheim factory Further integration of Complexity Management CI PDP phase 1 phase 2 Complx. Targets Complexity Mgmt. Feature tree first draft phase 3 optimized feature tree Prod. Specs Multi-project coordination/support/controlling Project Mgmt. First specifications/ feature infos Design Groups Set-up initial, current global Feature Tree Product Planning Set-up/optimize global Feature Tree for „main“Modules Set-up Detail Spec Set-up Tractor ProdSpecs Config. Set-up Configuration 10 | Complexity Management | September 2010 … The application of the feature tree achieves several benefits along the whole value chain • Overview of variety/complexity on different levels (part, module, product) • Common understanding of variety along the value chain • Fast simulation of different optimization scenarios • Fast option analysis • Pareto analysis of the variants à fast identification of “low hanging fruits” • Easy cost comparison of options • Early planning of modules/parts/ products without part numbers • Easy application/ learning of the tool 11 | Complexity Management | September 2010 Complexity Management is a success story for Mannheim „Tue G utes u nd red e d ar über ! “ 12 | Complexity Management | September2010 Thank you very much for your attention! Frank Bürschgens Manager Product Architecture Mid Tractor Platform John Deere Werke Mannheim Zweigniederlassung der Deere & Company John-Deere-Str. 90 • 68163 Mannheim • Germany phone: +49 621 829-5735 mailto: BuerschgensFrank@JohnDeere.com 13 | Complexity Management | September 2010