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1. EPE CONSULTANTS - 12, rue de l’Isly - 75008 PARIS
Tel : 01 40 27 19 14 - Fax : 04 72 28 06 23 - Internet : www.arolys.com
MISSIONS & TOOLS
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They may be punctually presented on the occasion of an exchange within a company potentially interested with our services. !
They will never be used by consultants or trainers neither be reproduced completely or partly by anyone
without prior and formal agreement of Arolys.

2. Page
CONTENTS
2
Arolys Overview
Vocation, Missions and Expertise
Competitive Design and Innovation
Potentials, Tools and Principles
Rational Diversity
Potentials, Principles and Effective levers

3. Page
AROLYS OVERVIEW
3 » » »

4. Page
THE KEY OF YOUR COMPETITIVENESS
4
Competitive Design
Adequacy between product and needs
Product cost reduction
Rationalized ranges
Simplified ranges of products
Indirect costs reduction
Innovation
Customer value
Innovative simplicity
Let’s reinvent your product competitiveness !
thanks to simple, direct and fast methods
for high, concrete and sustainable savings.
Product competitiveness is the key of companies future
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5. Page
AROLYS MISSIONS
5
INNOVATION
Customer Value, Design to Value, Innovative simplicity
Innovation and customer value are at the heart of current and future
competitiveness.
COMPETITIVE DESIGN
Design to Cost, Redesign, Value Analysis
Cost reduction and adequacy to needs are key points for the product
competitiveness.
RATIONAL DIVERSITY
Diversity costs, Ranges simplification, Standardization
Rationalized product ranges are source of enhanced profitability and better
answer to the needs.
Our quick diagnosis detect the main potentials of competitiveness.
Our concepts researches materialize innovative solutions and radical savings.
FUNCTIONAL ANALYSIS
BENCHMARKING
VALUE ANALYSIS
CREATIVITY
CONCEPTS EVALUATION
RISK ANALYSIS
DIVERSITY COSTS SCALE
PRODUCTS’ REAL
PROFITABILITIES
RATIONALIZATION OF
COMMERCIAL AND
TECHNICAL DIVERSITIES
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6. Page
AROLYS EXPERTISE
6
An expertise and major industrial references in various sectors :
Aeronautics and Space
Cost reduction of A380 modules (Hispano-Suiza), cost optimization on composites new technologies for civil aeronautics
(Snecma Propulsion Solide), …
Agricultural Equipment
Design to Value and diversity costs on a complete tractors range, combines, planter ... (AGCO - Massey Ferguson - Valtra), …
Military
Vehicles and radar systems optimization, Design of antijamming systems (Thales), …
Railway
Redesign of AGC systems (Bombardier Transport), fittings optimization of a new locomotive (Alstom), …
Automotive
Design to Cost of the 307 (PSA), redesign of functions in a manufacturer-supplier partnership (Sogedac), …
Nuclear technology
Optimization of an Uranium purifying installation (Areva), …
All sectors
Design and Redesign to cost of several products and electronic, electromechanical, mechanical, hydraulic equipments, …
In addition, Arolys have a strong international experience with several missions leaded in Germany (Itron), in United States
(AGCO) and in Finland (Valtra).
The simplicity and pragmatism of our missions get support of participants to stimulate a
sustainable change in the company.
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7. Page
COMPETITIVE DESIGN
AND
INNOVATION
7 » » »

8. Page
POTENTIALS ABOUT DIRECT COSTS
8
Costs of products are often penalized by specification choices and solutions that do not fit the
just need.
Simple methods help to highlight really sooner those potentials to drive efficiently the
competitive design.
According to the drawing of Mr Yves Dubreil, Director of Renault innovation and Project manager of the Twingo.
*
* Beautiful, sophisticated technique
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9. Page
FUNCTIONAL ANALYSIS
FUNCTIONS
PERFORMANCE
CRITERIA
Functions are those expected from the various customers and environments.
Performance criteria summarize the essential requirements :
Value,
Origin,
Flexibility,
Quantity.
The Functional Analysis draws up a synthetic table of the diversity of key needs and the possible
weaknesses of current products (internal or competition).
9
F1
F2
F4
F3
1 2 3 4 5
F1
xxx xxx xxx xxx 1 X XXX
xxx xxx xxx 2 XXX
xxx xxx xxx 0 X XXX
xxx xxx xxx 1 X XXX
xxx xxx xxx 2 XX
xxx xxx xxx 0 XXX
F2
xxx xxx xxx xxx 0 X XXX
xxx xxx xxx 1 XXX
xxx xxx xxx 0 X XXX
F3
xxx xxx xxx xxx 0 X XXX
xxx xxx xxx 2 X XXX
xxx xxx xxx 0 XXX
Response to
need of
current product
Function Value Flexibility QuantityOriginCriteria
The Functional Analysis defines the just need by forgetting habits of conception and existing solutions :
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10. Page
VALUE ANALYSIS
The Value Analysis identifies costs that do not provide any service in order to reduce costs
without altering the response to needs.
10
Just Necessary costs by functions
Excessive cost
regarding the
services rendered
Detection of priority areas of improvement
Value Analysis : correlation of costs and functions
CostsCosts
The Value Analysis distinguishes «Just Necessary» costs from «Not Required» cost potentials :
Sub-assemblies Cost F1 F2 ... F10 Not Required
...
TOTAL ...
3
1
2
Just Necessary
Not Required
32
Sub-assembliesFunctions
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11. Page
CREATIVITY
11
The Creativity opens efficiently the way to innovation using all the technological opportunities
thanks to a segmented and targeted research.
Check the
adequacy
with need
Focus the research properly
Look for all possible
solutions
(Brainstorming, ...)
Select the
best solutions
The Creativity explores the range of possible solutions relying effectively on the diagnosis that precedes
it : unsatisfied needs, potential optimizations...
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12. Page
CONCEPTS EVALUATION
12
The Concepts Evaluation spots strengths, weaknesses and major unknowns in order to select
the best compromises.
The Concepts Evaluation characterizes rapidly the solutions in front of a list of criteria synthesizing the
requirements :
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13. Page
!
A multidisciplinary team
from the conception
!
!
!
!
!
!
!
Validation of the need
Choice of the concept to develop :
Balance between costs and risks
PRINCIPAL OF A COMPETITIVE DESIGN
13
The competitive design must «get to the heart of the matter» to operate the best choices with full
knowledge of the needs, costs and risks.
CONCEPTION
DEVELOPMENT
INDUSTRIALIZATION
PRODUCTION
DISTRIBUTION
!
!
!
!
!
!
Project control
!
!
!
Risks Management
Simple performance indicators and targeted project reviews
Development of the project
R&D
Industrialization
Marketing Purchasing
Production
The competitive design approach brings together a multidisciplinary team early in the project thanks to
rapid and simple tools :
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14. Page
Innovation, at the crossroad of a triple requirement :
Identification of the real customer value.
The innovative simplicity of products and ranges.
The exploration of all economical and technological opportunities.
Beyond creativity methods and usual exploration of new technologies, it’s the association of
those three levers that promote efficiently innovation within the company.
INNOVATION
14
INNOVATION
Radical
Simplification
Technological
Opportunities
Customer Value
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15. Page
THE iPOD EXAMPLE
15
Radical innovation often springs from the comprehension of the real customer value.
iPOD APPLE
Content : 1 000 songs
Download : 1 entire CD in 5 to 10 seconds
Reduced size
Innovative design
High ease of use
10h of autonomy
Nowadays, the iPod still holds 70% of the digital music player world market and opens
to Apple the doors of music industry.
FIRST DIGITAL MUSIC PLAYERS :
with Flash Memory Content : 12 songs
with Hard Drive Content : Thousands of songs
Extremely low speed download
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16. Page
THE TWO PERIODS OF INNOVATION
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Two phases are favorable to innovating projects :
The exploratory phase is favorable to strong and breakthrough innovations.
The application phase intend to concretize innovation.
Rather than through pharaonic projects, it is thanks to successful breakthrough projects that
innovation take shape in company culture.
Technological
exploration
Expérimentation
Prototyping
Reflection on
fondamental
needs
EXPLORATORY PHASE APPLICATION PHASE
LAUNCH
DECISION
!
OF AN APPLICATION
PROJET
Specifications
Concepts
and solutions
Evaluations
Commercialization
OwnershipFeedback
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17. Page
INNOVATION APPROACH AND TOOLS
17
!
!
The diagnosis enlighten the inadequacies of the current offer and the need of customer value.
The creativity relies efficiently on the relevant diagnosis.
Structured approaches and simple tools are strong innovation vehicles within the company.
INNOVATION
Functional Analysis
Benchmarking
Value Analysis
Concepts evaluation
Risk Analysis
Simplification
Radicale
Opportunités
Technologiques
Valeur Client
New ConceptCreativity
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18. Page
RATIONAL DIVERSITY
18 » » »

19. Page
0
50
100
POTENTIALS ABOUT INDIRECT COSTS
19
Turnover pareto of a family of industrial products
Cumulative%oftheturnover
98% of the
turnover
50% of the
turnover
MAJOR
FLOWS
2% of the
turnover
10% of
the
variants
50% of the variants
MINOR
FLOWS
50% of the variants
Variants
Ranges profitability is generally weakened by a lot of variants sold at very low volumes :
Resources of the company are used up to conceive and produce products in reality
unprofitable.
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20. Page
DIVERSITY : SOURCE OF TENSION
20
Within the company, diversity is source of antagonisms, between visions that are market
oriented and those close to industrial reality.
Without assessment of these diversity costs, no rational approach is possible.
Unstandardization Standardization
Diversity
choice
MARKETING
!
Pressure to references
proliferation
TECHNIQUE
!
Pressure to references
elimination
CUSTOMER
ASPIRATIONS
INDUSTRIAL
CONSTRAINTS
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21. Page
a b c d - - - t u v w x -
Diversity
overcosts
Standardization
overcosts
MAJOR FLOWS & MINOR FLOWS
21
Two kinds of wastes may be observed about diversity :
Excess of standardization on expensive and recurring products
Excess of diversity on a lot of products at low volumes.
Major flows
!
Don’t we cover too many levels of needs with
a single product ?
!
=> UNSTANDARDIZATION
of some high volumes references
Minor flows
!
Don’t we produce too many items at low
volumes ?
!
=> STANDARDIZATION
of numerous references at low volumes
Variants
Cumulative
turnover
0
50
100
» » »

22. Page
IDENTIFICATION
OF DIVERSITY HIDDEN COSTS
22
A scale synthesizes the costs generated
by the diversity of references in different sectors of the company :
A simple scale allows to quantify the hidden costs of diversity, in creation as in current life.
Initial costs :
Current life costs : Manufacture
Current life costs : Related services
Design and Development,
Methods & Industrialization,
Purchasing,
Marketing & Sales,
Investments,
...
Batch changes,
Wastes & Losses,
Decreased yields,
Purchasing, transport and logistic overcosts
...
Scheduling,
Launching,
Planning,
Missing parts control,
Delays,
...
» » »

23. Page
REAL PROFITABILITY OF REFERENCES
23
Real profitabilities are recalculated taking into account the diversity hidden costs :
The scale of diversity costs reveals the products real profitability.
References References
Visible profitabilities
Margins according to usual calculation of spread
indirect costs
Real profitabilities
Real margins including the scale of diversity
costs
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24. Page
TECHNICAL DIVERSITYCOMMERCIAL DIVERSITY
DIVERSITY EFFECTIVE LEVERS
24
Products diversity : better tiering of ranges, flows massification, minor flows products grouping,
incentive rating…
Components diversity : modular design, standardization trade-off thanks to the scale of diversity costs.
Process diversity : dedicated means of production, delayed differentiation, specific treatment of flows.
Customer needs diversity must be answered thanks to a rationalized commercial and technical
diversity.
Diversity of
Customer needs
Diversity
of
Finished products
Diversity of
Components
Diversity of
Process
» » »

25. Page
CONCRETE EXAMPLE N°1 :
STEVE JOBS BACK AT APPLE IN 1997
25
Simplifying Apple’s product line ultimately helped to resuscitate the company, leading to one of
the most successful financial decades of any company in U.S. business history.
«When we got to the company one year ago, there were fifteen product platforms and a
zillion variants of each one.
How are we going to recommend these products to others when we don’t know what
products to recommend to our friends ?»
One year after he came back, Steve Jobs had cut Apple’s total product offerings from 350
to 10.
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26. Page
CONCRETE EXAMPLE N°2 :
NOKIA & APPLE
26
At the beginning of 2011, the Nokia phones
range sold in France included 140
references
The Apple phones range for its part included 3 very
similar models but very innovative
(more than 200 patents)
» » »

27. Page
CONCRETE EXAMPLE N°2 :
NOKIA & APPLE
27
Percentage of profit for the first 8 mobile phones manufacturers
Source : asymco.com
With an extremely simple but exceptionally innovative range, Apple has revolutionized the mobile
phone market.
» » »

28. Page
OUR REFERENCES
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View our clients testimonials on www.arolys.com !