Imagination at work.
Matteo Bellucci, Manager, Manufacturing Processes and Systems Lab
Neil Johnson, Principal Engineer, Manufacturing Processes and Systems Lab
Martha Gardner, Chief Scientist and Global Quality Leader
June 25, 2014
Should Cost - GE Research
Outline
• GE & Global Research
• Managing Cost In Innovation
• Should Cost
• Defining Should Cost
• Our Mission For Cost and Value
• Involvement & Focus Areas
• Tools Validation
• Virtual Teardowns
• Applying Tools
• Summary
GE External
GE
Oil & Gas Power & Water Energy Management
Transportation Healthcare Aviation Home & Business Solutions
GE Capital
GRC = R&D Function Across GE
Founded 1892, 300,000 Employees world wide
$150B Annual Revenue,
GE External
Market-focused R&D The cornerstone of GE’s commitment to technology
• First U.S. industrial lab
• ~2000 scientists/engineers, nearly two-thirds PhDs
• 3,615 U.S. patents filed by GE in 2011
• One of the world’s most diversified industrial
research organizations, providing innovative
technology for all of GE’s businesses
Global Software Center San Ramon, CA
Brazil Technology Center Rio de Janeiro, Brazil
China Technology Center Shanghai, China
India Technology Center Bangalore, India
Global Research Europe Munich, Germany
Global Research Headquarters Niskayuna, NY
AMSTC Ann Arbor, MI
Expanding Presence –
GE External
Corporate Product Cost/Value CoE
Disruptive Product Cost Approach
Tools & Sustainability
Product Teardowns
Cost Entitlement Competitive Assessment Optimization
Cross-functional
Value Engineering Integration
System/sub-system focus
TRIZ tools
Real-time trade-offs
Competitive Info Integration
Common Systems Teardowns Competitors + Matrix
Value Engineering and Trade-off Suite Teardown/Competitive Data Capture
and Sharing Should-cost models, Manufacturing
capability System and Component Trade-Off Tools Yield Transfer functions Comprehensive Total Variable Cost
Continue Momentum Knowledge Sharing
Tool Integration
Expertise/Resources Training
Database
Framework Develop
Maintain
GE External
• Adapted Technology Readiness (TRL) & Manufacturing Readiness Levels and (MRL) Process Developed by NASA & Dept. of Defense
• Plan, manage projects based on the TRL & MRL progression • Evaluates readiness for business transition • Concurrently evaluate cost during the NPI/NTI development process
Managing Cost in Innovation
Evaluating Cost Early in Design Process GE External
Should Cost Process
System Optimization
SWOT Analysis
MaxDiff
Conjoint Analysis
TRIZ
PLMS
S-curve
Core-Products
Product - Surround
Competitive Assessment
Teardown Database
Virtual Teardown
Industry Metric Initiatives
Modularization
Cost Entitlement
Disruptive Cost Work-Outs
New process simulations
Should-cost Models
Design for Manufacturability
Corporate Warehouse
TRIZ + Cost
Market
Function To Value
1 - 2
Product
Cost in Product
per Function
3 - 4
Trade-Offs
Design and
Supply Options
4 - 5
Cost Efficiency
Tracking through
lifecycle
6 - 7
Cost Reduction
Continuous
Improvement
8 - 9
Tools
Assess Product Cost Throughout Dev.
GE External
Should Cost: What and How
What is this Part/Product going to
cost:
• Given a particular Process, Material,
Plant and Capital
• Within a Region
• From a Supplier
• Build a new plant
• Cost saving vs. investment
• Make-buy decisions
• Choice of process, design, technology
How do we define “Should Cost”:
• Entitlement .. Lowest possible cost
• In-house Cost .. Existing, Processes,
Materials, Equipment, Labor…
• Supplier Cost .. What should I pay
• NPI.. Tailor NPI product cost to customers’
demand
Deliver Value in every Market/Region
GE External
GRC Focus Areas • Design tools Integration: push costing analysis upfront to
the drawing board. Integrated cost-design process
• “Templatization” : Templates based on “categories” or
“families” of objects with similar geometries, requirements,
features or constraints
• Automation: develop methodology for batch execution for
iterative costing… scenario evaluation. •
• Synergy: work closely with R&D activities for “feature
recognition” integration with CAD design tools development
• Simplification: improve the interfaces to be more intuitive
and user friendly for specific GE Manufacturing Processes
• Common Materials Database: Establish database with raw
material suppliers and costs accessible to all GE businesses
GE External
Tools / Model Validation Activities
• Comparison of Actual Cost
• Part Geometry & Processes Dependent
• Critical Knowledge of Process and Data
• Creates Awareness, Dialog and Investigation
GE External
Virtual Teardown Activity: Build 3D Geometry from Set of Multiple Views
• Extract Geometric Information from Single / Multiple View of Parts /
Assemblies
• Reconstruct Geometry from photographs
• Assimilate Views from Multiple Disparate Sources
• Transformation of the images from Multiple Perspective Images into
Component & Structural CAD Models
• Accelerate Teardown Analysis
• Perform Competitors Analysis
• From Part Photo Geometric CAD Model Cost Projection
GE External
Applying Tools.. Preliminary Design
GE Built – G-Calc / COMPEAT$TM
Geometry Comparison Cost Estimation Tool, GE Aviation, Energy, O&G
Product Line, Program Development, Finance
Excel Based – Individually Built Bottoms Up Elements
Cycle, Process Yield, Capital Equipment & Labor Resources
Direct Material - Input
Probabilistic Analysis (Crystal Ball)
Excel Rollup
Detailed Design, Value Eng. / Mfg., Sourcing
Boothroyd Dewhurst - DFMA, Concurrent Costing
aPriori
Boothroyd Dewhurst
BDI - DFMA
Product Assembly Process, Teardown, Revers Engineering
Analysis
Sheet Metal Work..
C&I, Ball Products, US Can …
Assembly & Welding Processes..
C&I, Energy, Transportation
Alpha Ceramics Processing..
GE Lighting, GRC, Coorstech, Corning
Assembly & Welding
Processes.. C&I, Energy,
Transportation
Co-Extruded Ni-Cu Rod
Anomet Products (MA)
Beta Ceramic Processing
Ceramic to Metal Bonding, TCB,
Cerametc, Ionotec, Inta Technologies …
Ceramic to Ceramic Bonding,
GEL, GRC Suppliers: Coorstech, Coringin, Cerametc, Ionotec, Inta Technologies…
aPriori
GE External
• No “best” tool Different tools for different applications • Costing requires domain knowledge of process • Accurate, up-to-date Data critical for analysis Difficult to obtain and maintain. • Should Cost Entitlement Dependent on the question and assumptions
• Build a Plant or New Business Rollup all the costs, Variable
and Fixed (Base)
• Change Design or Process Generally comparing to existing..
only looking at Variable (same Basis cost for each) • No “single” answer for “cost” Cost Distribution based on performance, throughput, yield, etc.
Challenges
GE External