IMI Eye - page 8

business improvement
New product development (NPD) is a
key enabler for growth in our five-year
strategy, and within the Precision
Engineering division we have identified
19 crucial development opportunities
for 2016.
These require significant capital
investment and therefore a rigorous NPD
process is essential to ensure we deliver
the best customer solutions as effectively
as possible.
The new process we now use
brings together a cross-functional team at
the start of each project and has four key
milestones aligned to the advanced
product quality planning (APQP) process
which was successfully launched at the
beginning of 2015. NPD sets time, cost
and quality targets which drive project
success, offering the following benefits:
l
Reduced time to market ­– by using a
disciplined product development
process and allowing more work to be
done in parallel
l
Reduced resources used – as NPD
requires greater reusability of designs
and knowledge which, together with our
value management initiatives, leads to
shorter lead times
l
Early verification of the design – using
prototypes to enable our sales teams to
reconfirm the product parameters
identified in our ‘voice of the customer’
work.
It is vital that team members
collaborate so project tasks progress
smoothly and in parallel. This means that
WRITTEN BY
Chris Prince
Global Engineering & NPD Director
IMI Precision Engineering
New product development
before the design is complete, purchasing
negotiations with preferred suppliers can
start and the manufacturing plant can work
with engineering on manufacturing and
assembly processes. Input from sales is
also really important from the start enabling
‘voice of the customer’ to verify the market
demand and price is right.
Standard reporting is essential and
there are three documents within the
NPD process:
l
A Procedures Manual – for the work
plan and financial targets
l
A Matrix – which tracks project
deliverables
l
A Fast Track Report – which manages
project costs against Procedures
Manual targets.
There are 12 NPD projects currently
underway which have acted as a pilot for
the process. Each has a cross-functional
team, executive sponsor and dedicated
project manager ensuring accountability.
All participation meetings identify and
resolve issues quickly and effectively.
Projects are already clearly benefiting
from this cross-functional approach and
strong team work ensures the project
deadlines are also met. From our pilot
projects we’ve seen situations where the
team has also successfully addressed
customer requests for specification
changes, supplier capability issues, and
technical challenges. This degree of
flexibility and responsiveness is only made
possible by our new disciplined and
collaborative approach – and is a key
competitor differentiator.
We’ll keep you updated on our
progress in offering customers GREAT new
products – a true enabler for growth.
WRITTEN BY
Jeff Lumsden
Operations Director
IMI Critical Engineering
Across the IMI Critical Engineering
division, the fourth round of lean
assessments delivered an improvement
of more than 20% with the average
score increasing from 46% to 56%.
The division had started the lean
journey in 2014 with an average lean score
of 26%. Overall, lean techniques delivered
Critical’s target lean assessment score
of 56% in January 2016. This is more
than twice the 26% average score across
IMI Critical that was recorded in the initial
assessment.
With a lean score of 66%, IMI CCI
Korea has re-set the benchmark as the
highest scoring site within IMI Critical
Engineering. The team exceeded its own
internal target and delivered a further 7%
point gain on its previous assessment.
IMI CCI Korea achieved an improvement
rate of 33% in the last two cycles in the
second half of 2015, and very deservedly
leads our sites in lean assessment scores
with many examples of lean improvements.
One of the top priority lean initiatives
is the development and deployment of
Obeya Project Rooms right across the
division to strengthen core capabilities in
project management and operations.
Obeya rooms at IMI CCI RSM, IMI CCI
Korea and IMI CCI Brno went live in the first
half of 2015 and since then an additional
five sites at IMI Remosa, IMI Z&J Germany,
IMI Orton, IMI CCI SriCity and IMI Z&J
Houston have also gone live.
Significant lean
progress across
IMI Critical
Over the past 18 months Group
Treasury has worked to develop and
implement a state-of-the-art treasury
system.
The system enables us to fully
manage the Group’s foreign exchange
exposures, cash movements and inter-
company funding balances through a
single database accessible by both the
individual businesses and the central
treasury team. After piloting in the spring
of 2015, the new system went fully live last
summer and is now being used by about
50 subsidiaries across the globe.
The system was deployed ‘off-the-
shelf’ with full integration into our trading
WRITTEN BY
Richard Garry
Group Treasurer, IMI plc
IMI’s new treasury system improves risk
management and lowers costs
systems, banking platforms and
information systems. This integrated
solution provides a much stronger control
environment by reducing the amount of
manual activity. Subsidiaries can only
instruct the Group Treasury team via
the system, and the system access is
restricted and controlled by secure tokens
and passwords for all users.
Because all information is now held
in a single database, Group Treasury can
now internally offset certain business
exposures, thereby reducing the level of
external hedges required to manage the
residual amounts. This reduces third-party
transactions by up to 75%. Based on the
initial months in operation, it is estimated
that the system will save the company over
£800,000 per annum through reduced
trading expenses.
Additionally, the new system drives
improved compliance to our Treasury
policies by providing monthly visibility of
each company’s hedge position against
its updated currency forecasts. This has
provided a good number of benefits
already but, more crucially, gives us a base
from which to continuously improve.
The new system is just the start of
the lean journey for Group Treasury but
has helped deliver some tremendous
improvements already.
The IMI Newsletter
Issue 4
8
1,2,3,4,5,6,7 9,10,11,12,13,14,15,16,17,18,...24
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