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Kamarulzaman Darus PJN
       Director of Manufacturing
       NAM




                                                                    Design
                                                             Excellence for
       kzamandarus@nam.com.my
       +6012-277-2059

                                                             Manufacturing
Graduated in B.Sc. Mechanical Engineering from



                                                             Sustainability
Leeds University, UK.
Had been in the Automotive Manufacturing
Business for more than 25 years.
Had been responsible in key areas of Production
and Planning, Manufacturing Engineering, Plant
Engineering, Product Research and Development.
Currently, the Director of Manufacturing –
responsible in all aspects of Manufacturing for
Naza Automotive Manufacturing.


                                   NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                           Page 1
                                   [Company No.: 591026-M]
MALAYSIA’S INDUSTRIALIZATION MASTER PLAN

Industrial Master Plan (IMP)                                   Industrial Master Plan 2
        1986 - 1995                                                     (IMP2)
Three broad objectives:
                                                                    1996 - 2005
                                                               Moving beyond
• Ensure rapid expansion of
  the economy through                                          manufacturing operations
  acceleration of                                              to include :
  manufacturing sector
                                                           •   Indigenous R&D and
  growth
                                                               technology
• Promote efficient and                                    •   Design Capabilities
  optimum utilization of                                   •   Integrated supporting
  natural resources through
                                                               industries
  value-added
  manufacturing activities                                 •   International marketing
                                                           •   Development of own Brand
• Lay foundation for the                                   •   World class, world scale
  development of indigenous
  technological capabilities
      “MANUFACTURING”                                            “MANUFACTURING ++”

We are now in the midst of IMP-3, which is basically a continuation of IMP-2 but focusing more on
        state-of-the-art technology and research such as nano- and bio-technology etc.

                                 NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                                              Page 2
                                 [Company No.: 591026-M]
INDUSTRY CAPABILITIES TRANSFORMATION

               MANUFACTURING                                               DESIGN & ENGINEERING
                                                                                                           VIRTUAL PRODUCT
                                                                                                                                  VPDM
                                                                                                           DESIGN & MANUFACTURING
                                                                                                   MILEAGE ACCUMULATION MACD
                                                                                                   CHASSIS DYNAMOMETER
        Local Vendors Development
                                                                                        Climatic Chamber, Engine Test Cells)

                                                                                    CMSS (4-Poster, Kinematics Rig,
                                                                                          (4-
                                                                                    Crash Sled, Components Tests Laboratory)
                                                                          PROTOTYPING - Rapid Prototyping (SLA, LOM) ,
                                                                          Prototyping Centre
                                                                          CADDS (Computer-Aided Design System) CAD (EUCLID,
                                                                                  (Computer-
       Note:                                                              CATIA ® ), CAE, CAM
       Major Tests and Validations would still be
                                                                STYLING, MODELING & ERGONOMICS
       Conducted in Tests Centers such as at
       Millbrook, Idiada, Crashlab etc.                         SHTT (Semi-High Speed Test Track), Emission and
                                                                      (Semi-
                                                                Noise Laboratory (Semi-Anechoic Chamber)
                                                                                 (Semi-
                                                   CASTING and MACHINING

                                          DIES DESIGN & MANUFACTURING

                                ENGINE ASSEMBLY

                                JIGS DESIGN & MANUFACTURING

                      STAMPING & DIES MAINTENANCE

   CAR ASSEMBLY OPERATIONS
   1       2     3    4    5     6    7     8       9       10        11     12    13   14    15    16    17    18    19       20   21
                                                NAZA AUTOMOTIVE MANUFACTURING SDN BHD
1986                                                                                                                                2007   Page 3
                                                [Company No.: 591026-M]
INDUSTRY DIFFERENTIATORS
                                                                     • Product Life Cycle
 •Platform Engineering                •Short Lead Time from            halved
 •Modular Engineering                 Ordering to Delivery           • SE/CE Teams
                                                                     • CAS/CAD/CAE; VR

                                                                          Reduced
                                                                           Reduced
  Product Variety                              Marketing                  Product
   Product Variety                             Marketing                   Product
                                                                          Lifecycle
                                                                           Lifecycle
                    INTEGRATED BY THE NPI SYSTEM
                     INTEGRATED BY THE NPI SYSTEM
                                            Market &
                                            Market &
                                           Consumer
                                           Consumer
                         DESIGNED FOR THE MARKET
                         DESIGNED FOR THE MARKET
   Lower Volume                             ““Real-Time”
                                             Real-Time”
    Lower Volume                                                         Automation
                                                                          Automation
    Wider Range                               Logistics
     Wider Range                               Logistics

  • Flexible
                                      •EDI, JIT
    Manufacturing                                                        CAD / CAM / CIM
                                      •Configurable BOM
    System (FMS)

      KEY: DESIGN STRATEGY: KNOW-HOW & TOOLS DEPLOYMENT INTO THE VALUE CHAIN
       KEY: DESIGN STRATEGY: KNOW-HOW & TOOLS DEPLOYMENT INTO THE VALUE CHAIN
                             NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                             [Company No.: 591026-M]                                        Page 4
VALUE CHAIN


                                                                                TOOLING:
   COMMON                                                                    STAMPING DIES,
                                    TESTING
   PLATFORM                                                                 PLASTIC MOULDS
                                       &
                  PLATFORM                                               DESIGN & DEVELOPMENT
                                  VALIDATIONS
                 ENGINEERING




                                                             STAMPING           BODY WELDING
                                                                                AND ASSEMBLY
      STYLING                PRODUCT
       DESIGN              ENGINEERING


              INTEGRATED AND DIFFERENTIATED BY PAINTING
              TECHNOLOGY (DESIGN & ENGINEERING)
                                        FINAL ASSEMBLY




                                                PRODUCT
                LOGISTICS &
                                                                                                  VENDORS
                DISTRIBUTION
                                                                                                COMPONENT
                                                              MARKET                            DEVELOPMENT
                                                             (SALES &                            and SUPPLY
                                                            MARKETING)                               &
                                                                               POWERTRAIN
                                                                                                 EQUIPMENT
                                                                                DESIGN &
                                                                                                  SUPPLIERS
                                                                              MANUFACTURING




                                         NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                         [Company No.: 591026-M]                                              Page 5
INDUSTRY LEVEL OF CAPABILITIES

 SUSTAINABLE MANUFACTURER ….. ECONOMIES OF SCALE ~ MINIMUM 30K/MODEL/ YEAR

                 GLOBAL                                     QUALITY                       PRODUCTION         ORGANISA-
                                                                                                             ORGANISA-
                                                                          QUALITY
CONSUMER         MARKET        BRANDING                     PRODUCT                         SYSTEM             TION
                                                                         COMPONENT
     Loyal      Consolidated    •“Own” Car                  •Low Cost                       •“Flexible”     •Knowledgeable
•Strong Brand    •Global &                                                •Competitive
                               •“Own” Brand                 •Desirable                      •‘0’ Defect       •Up-to-date
                                                                                                               Up- to-
 •Delighted       Regional                                               •Global Source
                                                           •Up-to-Date
                                                            Up- to-                         •‘0’ Stock        Information
                  Network

                                                           COMPLETE
 MAKE TO                                                                                                      ADVANCED
                                                             SUITE
                               FULL RANGE                                   VENDOR         FLEXIBLE
CUSTOMERS’       GLOBAL                                                                                     MANAGEMENT
                                                           OF DESIGN
                                 MODEL                                   PARTNERSHIP      PRODUCTION
CONFIGURED      MARKETING                                                                                   •Empowerment
                                                             TOOLS
                                 DESIGN                                   (1st TIERING)   SCHEDULING
  ORDERS                                                                                                        •Teams
                                                          & FACILITIES
                                                        (INCLUDING VR)
                  GLOBAL                                                                     SOUND
                                                                                                               TIMELY,
   MAKE         PRESENCE                                                                    MATERIAL
                                                                                                              ACCURATE,
    TO                          ‘IN-HOUSE’
                                 IN-                     DEEP DESIGN      INTEGRATED
                 •Selected                                                                  PROCESS
                                                                                                                 AND
   ORDER                          DESIGN                 COMPETENCE      SUPPLY CHAIN
                  Markets                                                                     FLOW
                                                                                                             INTEGRATED
                 •Strong in                                                                  •JIT, CC
                                                                                                            INFORMATION
                  ASEAN                                                                     •KANBAN

                MULTI PLANT                                                                                    SOUND
  ASSEMBLE                                                                                     GOOD
                OPERATIONS        BASIC                    CROSS          MATERIAL                            PROCESS
      TO                                                                                   PRODUCTION
                   •Own        MODIFICATION              FUNCTIONAL         COST                            and CONTROL
DISTRIBUTORS’                                                                                 SYSTEM
                 •Contract       DESIGN                 DESIGN TEAMS     MANAGEMENT                           •Financial
   ORDERS                                                                                 •Process design
                   •CKD                                                                                          •HR



 ASSEMBLE                                               BASIC DESIGN                        SIMPLE
                 DOMESTIC        PARTNER                                   VENDOR                              BASIC
    TO                                                     TOOLS                          PRODUCTION
                DOMINANCE         DESIGN                                 DEVELOPMENT                        FUNDAMENTAL
  STOCK                                                 AND FACILITIES                      SYSTEM


                                      NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                      [Company No.: 591026-M]                                                      Page 6
CAPABILITY DEVELOPMENT


                                                                                                    IP
                                                                             Value Chain
                                                                                               S)
High Technology                                                                                          High Employment
                                                                         e
                                                                                             D
                                                                      siv
High Knowledge Application                                                               N
                                                                    es
                                                                                    FU
                                                                 gr
                                                               ro                 T
                                                           P
                                                                             EN                                 1:10 = 100,000
                                                                           M                     OWN
                                                                         US
                                                                J                              PRODUCT
                                                              AD                                DESIGN
                                                            L
                                                     RIA                 RnD CENTRE
                                                   T
                                              US                              &
                          e
                     iv                   D
                  ss
                                      (IN                                ENGINE MFG
                e
           gr                       F
        Re                     IA                                                                               1:6 = 40,000
                                          PLATFORM
                                             MFG
                                                                                               R&D Centre,
                                                                                             Product Design,
                          Assemble
                                                                                              Powertrain &
                           Localize
High                                                                                             Tooling
                             60%
Labor                                                                                        Manufacturing .    1:1 = 600
         CKD


                                                                                                     25 years
                                               NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                               [Company No.: 591026-M]                                                      Page 7
PRODUCT DEVELOPMENT ELEMENTS

                EFFECTIVE                                                  DESIRED
               INITIATIVES                                               DELIVERABLES
                                                                                           MARKET
  BOARD
            Project     Process
      Management        Engineering
                                                                             Cost
   Vehicle
               Simultaneous                                                           Design
                                                                Weight
                                    Plant
   Design,
   Engineering Engineering          Set-Up
   &
   Development
                                                                Quality             Performance
       Engineering      Machinery,
                                                                           Delivery
        Simulation      Equipment
        & Analysis      & Facilities




                              TOTALLY INTEGRATED                                          PRODUCTS
MANAGEMENT
                                IMPLEMENTATION
                                 NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                 [Company No.: 591026-M]                                          Page 8
ADVANCED VIRTUAL ENGINEERING


                                        Design

                                 Safety
                   Structural
      Style
                                                                                          ST
                                 Control
                  Performance
   Presentation

                                                                                       CO
                                               Dynamic
                          Formability
         Assembly
                                                                                   &
                                             Performance
                          Possibility
                                                                               G
         Possibility
                                                                             IN
                                                                       TIM
                                                                    NT
                    Quality
                                                                  E
                    Control
                                                            PM
                                                          O                                          3D CAD
                                                        EL                                           Modeling
                                                      V
                                                    DE                                           Crash
                                                                               Durability
                                                               Virtual
                                           G                                                   Simulation
                                                                               Analysis
                                         IN
                                                                  Reality
                                       C                                                                     Vehicle
                                  DU
                                                                                           Metal
                                                                                                            Dynamics
                                RE
                                                                        Digital           Forming
                                                                                                            Analysis
                                                                                          Analysis
                                                                       Mock Up


                                                                               Tolerance
                                                                                Analysis




                                        NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                        [Company No.: 591026-M]                                                    Page 9
CONCURRENT ENGINEERING


                        To shorten the development time and reduce the cost of late
                       design changes through early involvement of all stakeholders
                                               during development


                                                The desired

                                          CAE
No of design change




                                    Mule vehicle
                                                                      The historic
                                     Alias styling
                                  Verification model
                                     Formability
                                         DMU                                    More cost for design change
                                                                                and market warranty




                      Planning   Styling     Proto                     Pilot                       Prod.

                                                                                     S.O.P
                                            NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                            [Company No.: 591026-M]                                           Page 10
COST CONTROL & BENCHMARKING

           PAST                                                    Present

                                                                    Estimated
                                                                     Estimated
            Design
             Design                                                sales price
                                                                    sales price


                                                                   Target cost
        Parts develop.                                              Target cost
         Parts develop.
                                                                      set up
          Purchasing                                                   set up
           Purchasing


                                                                   DTC
        Manufacturing
        Manufacturing                                         Design To target
                                                                   Cost

         Cost totaling
          Cost totaling
                                                                   BTC
                                                            Buy To design Cost
         Sales price
          Sales price
                                                              SE, GE of parts
       Cost reduction by
                                                              development,
        design change
                                                               purchasing,
         - Investment
                                                           manufacturing, vendors
          - Lead time
                Loss
                           NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                           [Company No.: 591026-M]                                  Page 11
DESIGN VALIDATION

                                                                     Concept                                       Product
                                                                   Verification                                  Validation
                                                                  Vehicle Initial Tuning                        Install & Instruction
                                                                   - Hard Points                                Quality Control
                                                                   - Specification & etc.                       Productivity
                                                                  Abuse Test
                                                                  Structural Durability Test
                                                                  Proto Spec. set-up



  Design Library     Concept study                    Component &                          Prototype              Production
 Benchmarking        Initial Design                   Pretest Develop                       Develop                Preparation



                                                                                     Design Verification
                   Concept Develop
                    Target Study                                                      Vehicle Fine Tuning
                    Lay-out & Package                                                 Production Spec. set-up
                    Dynamic Simulation                                                Durability Test
                    Performance Analysis                                              Cost & Weight Control
                    FEM Analysis
                     LS-Dyna Abaqus

                                Pam-Crash

                    Auto Form
                                Nastran
                                      ADAMS
                    Mark II



                                        NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                        [Company No.: 591026-M]                                                                         Page 12
PRODUCT DEVELOPMENT SYSTEM – Computer-Aided Automotive
Development (CADDS)
  PRODUCT PLANNING                                                                 STYLING                                                              PROTOTYPE
Package                                                        Sketching                                      Animation &                       Digital
                     Ergonomic              Concept                                        3D                                                                         1:1 Clay
 Layout                                                            &                                             Design                        Mock-up
                       Study                Design                                       Modeling                                                                     1:1 BIW
Drawing                                                        Rendering                                      Presentation                       DMU
     Computer Aided                                          Computer Aided Industrial Design                                                         Rapid Prototyping
     Ergonomic Study
                                                                          ALIAS                                                                Maestro - SLA/LOM - Slice-
    CATIA / Safeworks                                     Paint; Auto Studio; Eclipse Composer                                                      LOM -Magic RP
   Parts               Reverse                                                                                                                      5-Axis Milling Machine,
                                                                  CATIA - Class ‘A’ Surfacing
 Digitising           Engineer-                                                                                                                            Digitising
& Modeling               ing
                                             Suppliers / Vendor-
                                                         Vendor-
                                                                                          Powertrain
    Product Analysis &
                                              Modules/Systems
        Learning
            CATIA
                                                                                                                                                 Homologation & Testing
                                                Engineering Design

            Layout           Parts Design         Assembly              Harness Design                Interference                                      Component
                                                                                                                                             NVH                         Emission
                                                                                                                                                         Material
            Drawing            Drawing             Design                  & Layout                     Checking
                                                                                                                                                         Endurance




                                                                                                                                REDESIGN
                                                                                                                                            * R&H
                                                Computer-aided Design
                                                Computer-                                                                                                                 Crash
                                                                                                                                                        Performance
                                                      CATIA                                                                                   Emission, Performance & Safety
                                                                                                         Electrical                         Anaechoic Chamber, Strength & Material
                                                                           Computational
    Structural              Crash-worthiness                                                           Electronics &
                                                        NVH                                                                                       Laboratories, Sled Test Rig
                                                                           Fluid Dynamics
 Analysis (Linear)          & Occupant Safety                                                          EM Analysis
                                                                                                                                                     SHSTT (Test Track),
                                                                                                                                                Simulation Road Surface Track
                              Computer Aided Engineering and Virtual Testing
                                                                                                                                               4-Poster Driving Simulation Rig,
  MSC-PATRAN                      MSC-NASTRAN                     ADAMS                           LS-DYNA 3D                                 Kinematics Rig, Engine Dynamometer

                                                                             Manufacturing
                                                                                                                          Robot                   Robot               Assembly Line
 Process                 Dies           Stamping              NC Tape                Assembly Jig
                                                                                                                       Programming              Simulation             Simulation
 Planning               Design          Simulation           Generation              Inspection Jig

                                                                                                                          Computer Aided Assembly/Robotic Simulation
                              Computer Aided Manufacturing

                                                                                                                                           ROBCAD, WITNESS
                      AUTOCAD, CAD/CAM-CATIA/CADAM
                                                         NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                         [Company No.: 591026-M]                                                                                             Page 13
PRODUCT DEVELOPMENT SYSTEM – NPI Integrating Activities
Model
                                                    • • Cross Functional Teams
                                                         Cross Functional Teams
                                                    • • Team Leadership
                                                         Team Leadership
                                                    • • Team Development (Education &
                              PEOPLE                     Team Development (Education &
                               PEOPLE                   Training)
                                                         Training)
                                                    • • Reward and Recognition Systems
                                                         Reward and Recognition Systems
                                                    • • Co-Location
        “SOFT” NPI                                       Co-Location
         “SOFT” NPI
        ACTIVITIES
         ACTIVITIES
                                                            Project Management
                                                    •
                                                             Project Management
                                                      •
                                                            Formal NPI Procedures
                                                    •
                                                             Formal NPI Procedures
                                                      •
                           PROCESS                          Customer-Supplier Integration
                            PROCESS                 •
                                                             Customer-Supplier Integration
                                                      •
                                                            Formal Team Briefings
                                                    •
                                                             Formal Team Briefings
                                                      •
                                                            Organization Re-Design
                                                    •
                                                             Organization Re-Design
                                                      •
  NEW PRODUCT
   NEW PRODUCT
  DEVELOPMENT
   DEVELOPMENT
    STRATEGY
     STRATEGY
                                                       Computer/Networks (Common
                                                    •
                                                        Computer/Networks (Common
                                                        •
                                                       Database)
                                                        Database)
                         TOOLS &                    • Computer-Aided Design (CAD)
                          TOOLS &                    • Computer-Aided Design (CAD)
                                                    • Computer-Aided Engineering (CAE)
                       TECHNIQUES                    • Computer-Aided Engineering (CAE)
                        TECHNIQUES                  • Computer-Aided Simulation (CAS)
                                                     • Computer-Aided Simulation (CAS)
        “HARD” NPI
         “HARD” NPI
        ACTIVITIES
         ACTIVITIES                                 • Quality Function Deployment (QFD)
                                                     • Quality Function Deployment (QFD)
                                                    • Design of Experiments (Taguchi)
                                                     • Design of Experiments (Taguchi)
                           FORMAL                   • Design for Manufacturing / Assembly
                            FORMAL                   • Design for Manufacturing / Assembly
                                                       (DFM/DFA)
                           METHODS                      (DFM/DFA)
                           METHODS                  • Failure Mode & Effect Analysis (FMEA)
                                                     • Failure Mode & Effect Analysis (FMEA)

                      NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                                             Page 14
                      [Company No.: 591026-M]
PRODUCT DEVELOPMENT
                                                                                               GATEWAYS
                                                                MILESTONES
SYSTEM – NPI Process
                                                                                                                  PHASE
        11-STEP PROCESS                                             KEY CONTENTS                                  PHASE
        11-STEP PROCESS                                             KEY CONTENTS
          INITIAL SCREENING          IDEA CREATION     PROJECT OBJECTIVES  PRE-LIMINARY BUDGETING     “QUICK &
1          INITIAL SCREENING           IDEA CREATION    PROJECT OBJECTIVES  PRE-LIMINARY BUDGETING




                                                                                                                     PHASE 00
                                                                                                       “QUICK &
                                               DIRTY” BUSINESS CASE   SUCCESS CRITERIA  “GO / NO GO”
    1           KICK-OFF
                KICK-                           DIRTY” BUSINESS CASE   SUCCESS CRITERIA  “GO / NO GO”
                  KICK-OFF




                                                                                                                      PHASE
                                               TEAM FORMATION    RESOURCE & BUDGET ALLOCATION    ROLES &
2          PROJECT INITIATION                   TEAM FORMATION    RESOURCE & BUDGET ALLOCATION    ROLES &
    2       PROJECT INITIATION                 RESPONSIBILITIES  VOC (VOICE OF CUSTOMER”  SPECIFICATIONS
                                                RESPONSIBILITIES  VOC (VOICE OF CUSTOMER”  SPECIFICATIONS

                                  MARKET & SEGMENT ANALYSIS   COMPETITOR / COMPETITIVE ANALYSIS  PRODUCT
3          PROJECT DIRECTION




                                                                                                                     PHASE 11
                                   MARKET & SEGMENT ANALYSIS   COMPETITOR / COMPETITIVE ANALYSIS  PRODUCT
    3       PROJECT DIRECTION      & PRICE POSITIONING  MARKETING & SALES ANALYSIS  RISK EVALUATION ROI




                                                                                                                      PHASE
                                    & PRICE POSITIONING  MARKETING & SALES ANALYSIS  RISK EVALUATION ROI
                                          VOC & MARKET FINALIZATION   PRODUCT SPECIFICATION FINALIZATION
                                           VOC & MARKET FINALIZATION   PRODUCT SPECIFICATION FINALIZATION
4         PROJECT (MODEL) FIX             TECHNOLOGY FINALIZATION    QUALITY FINALIZATION  MANUFACTURING
    4      PROJECT (MODEL) FIX             TECHNOLOGY FINALIZATION    QUALITY FINALIZATION  MANUFACTURING
                                                               INVESTMENT & RESOURCE FINALIZATION
                                                 FINALIZATION
                                                                 INVESTMENT & RESOURCE FINALIZATION
                                                  FINALIZATION

                                          DEVELOPMENT KICK-OFF   COLLABORATIVE INITIATIVES IN-HOUSE +
5          PROJECT APPROVAL                 DEVELOPMENT KICK-OFF  COLLABORATIVE INITIATIVES IN-HOUSE +
    5       PROJECT APPROVAL         SUPPLIERS/VENDORS + CONSULTANTS and BUSINESS / FINANCIAL/RISKS SIGN-OFF
                                      SUPPLIERS/VENDORS + CONSULTANTS and BUSINESS / FINANCIAL/RISKS SIGN-OFF

            PROJECT DESIGN
6            PROJECT DESIGN                         DESIGN SIGN-OFF  DESIGN QUALITY CONFIRMATION (DQCM)
    6          APPROVAL                              DESIGN SIGN-OFF  DESIGN QUALITY CONFIRMATION (DQCM)
                APPROVAL




                                                                                                                     PHASE 22
                                                                                                                      PHASE
             PROJECT FINAL            ENGINEERING SIGN-OFF  PRODUCT VALIDATION (TESTING, HOMOLOGATION) v.s.
7             PROJECT FINAL            ENGINEERING SIGN-OFF  PRODUCT VALIDATION (TESTING, HOMOLOGATION) v.s.
    7          APPROVAL                                         SEPCIFICATIONS
                APPROVAL                                         SEPCIFICATIONS

            PRE-PRODUCTION
            PRE-                        PRE-PRODUCTION TRIALS AND VALIDATION   PROCESS, QUALITY, RELIABILITY,
8            PRE-PRODUCTION              PRE-PRODUCTION TRIALS AND VALIDATION   PROCESS, QUALITY, RELIABILITY,
    8          APPROVAL                             SUPPLY CHAIN & LOGISTICS (PRE-PRODUCTION)
                APPROVAL                             SUPPLY CHAIN & LOGISTICS (PRE-PRODUCTION)


9        PRODUCTION APPROVAL                   MANUFACTURING SIGN-OFF  PRODUCTION QUALITY CONFIRMATION
    9     PRODUCTION APPROVAL                   MANUFACTURING SIGN-OFF  PRODUCTION QUALITY CONFIRMATION




                                                                                                                     PHASE 33
                                                           MARKETING SIGN-OFF
10         LAUNCH APPROVAL                                                     MARKET LAUNCH




                                                                                                                      PHASE
                                                            MARKETING SIGN-OFF
 10         LAUNCH APPROVAL                                                     MARKET LAUNCH


                                                     ENGINEERING & TECHNICAL PCR/PCO  LESSONS LEARNT
                                   PROJECT CLOSURES
11         PROJECT CLOSURE                            ENGINEERING & TECHNICAL PCR/PCO  LESSONS LEARNT
                                    PROJECT CLOSURES
 11         PROJECT CLOSURE                               KNOWLEDGE CAPTURING
                                                           KNOWLEDGE CAPTURING

                                 NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                                                                  Page 15
                                 [Company No.: 591026-M]
PRODUCT DEVELOPMENT SYSTEM – NPI Process – Relationship
with Product’s Complexities

                                    COMPLEX PRODUCTS
                                     COMPLEX PRODUCTS
    STRUCTURAL COMPLEXITY
                                               WITH                                  S
                                                WITH                              IE
                                                                                IT
                                      CLEARLY DEFINED
                                                                             IV
                                        CLEARLY DEFINED
                                                                          CT
                                             MARKET                                      COMPLEX PRODUCTS
                                              MARKET                                       COMPLEX PRODUCTS
                                                                        A
                                                                      N
                                         REQUIREMENTS                                               WITH
                                          REQUIREMENTS TIO                                            WITH
                                                                                          DIFFICULT TO DEFINE
                                                                A                          DIFFICULT TO DEFINE
                                                              R
                                                           EG                                     MARKET
                                                          T                                        MARKET
                                                       IN                                    REQUIREMENTS
                                                     R                                        REQUIREMENTS
                                                  FO
                                                D
                                             EE                                                                    S
                                           N                                                                    ES
                                        NG                                                                    C
                                                                                                            RO
                                     SI                                                                   P
                                   A
                                RE                                                                      P
                                                                                                     TE
                              C
                                                                                                  -S
                            IN        SIMPLE PRODUCTS
                                                                                                11
                                        SIMPLE PRODUCTS
                                               WITH                                           R
                                                WITH                                       FO
                                      CLEARLY DEFINED                                    E
                                        CLEARLY DEFINED                                C
                                                                                   EN
                                             MARKET
                                              MARKET                             U
                                                                              FL
                                         REQUIREMENTS                                      SIMPLE PRODUCTS
                                          REQUIREMENTS                                      SIMPLE PRODUCTS
                                                                           IN
                                                                                             WITH DIFFICULT
                                                                        G                     WITH DIFFICULT
                                                                     IN
                                                                    S                            TO DEFINE
                                                                 EA                               TO DEFINE
                                                               R                                  MARKET
                                                             C                                     MARKET
                                                           IN                                REQUIREMENTS
                                                                                              REQUIREMENTS

                                             FUNCTIONAL COMPLEXITY
                                                        NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                                                                       Page 16
                                                        [Company No.: 591026-M]
PRODUCT DEVELOPMENT SYSTEM – NPI Process – Programme
and Follow-Up
             27 27 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10                                             9      8     7     6     5      4    3       2     1    0
                                              Model fix                                                                                                            SOP
 PROJECT α



                                                Styling                          Major freeze
                                                               Mule                                   Off tool
                                                                                                     Prototype
                                                                Detail design
                                                                                       Production tooling                                          Pilot
                                                                                                                    M/T Ship V/M
                                                                       3M                                      14 M


                   Concept        Concept               Concept
                                                                                                                                                   Production
                                                                               Final
                                                                                                     FOLLOW-UP and
                   Initiation     Direction             Approval
                                                                                                                                                   Approval
                                                                              Approval
                  PRODUCT         STYLING               MODEL                                      COUNTERMEASURES                                   PQCM
                                                                              DQCM
                  PROPOSAL       APPROVAL                 FIX
                                                                              Marketing                                                              Sales &
                     Market      Volume-Price                                                Pet Name, Brochures, Launching Program, 7
                                                     Focus Group
      MARKET                                                                    Plan                                                               Launch Plan
                    Research     Justification                                                               Manuals
                                  Teardown &         Development                                                                                     Product
    PRODUCT          USPs                                                       CVDS           Project Progress Follow-Up and Tracking
                                   B/Marking          Schedule                                                                                       Variants
 INVESTMENT &     Total Cost &     BOM Cost           BOM & Inv.             BOM & Inv.               Project Feasibility Tracking                 OMV & OTR
     COST         Investment        Target             Review                 Tracking                   (BOM & Investment)
                    Styling       Packaging &         Surfacing &             Colors &       Interior and Exterior Colors, Material, Texture
     STYLING                                                                                                                                            -
                    Concept       Ergonomics             DMU                 Accessories               Follow-up and Finalization
                                                     SE, DFMEA &                                                                                    PCR / PCO
      DESIGN      D&E Overview   DCS & Layout                                P-Drawings              C.L. Tracking and Validation
                                                        PFMEA                                                                                        Cut-off
                                                                                              Timely Feedback to Design, Manufacturing
 PROTOTYPING           -         Mule Car Plan          Mule Car              Mule Car                                                                  -
                                                                                                       Engineering and Quality
   TESTING &      Homologation       Design             Mule Car             Test Results                                                          Durability &
                                                                                              Timely Feedback to Design, Manufacturing
  VALIDATION         Plan        Validation Plan         Test                & Validation                                                           Reliability
                                                                                                       Engineering and Quality
                  New, Mod. or     Sourcing            Appoint &             Final Supply                                                          PPAP & PSW
                                                                                              Vendors / Suppliers Preparation Progress
PROCUREMENT
                    C/Over         Strategy           Cost Review                Cost                                                                 PSA
                                                                                                             Follow-up
 PRODUCTION                        Location &                                  Process                                                                Final
                                                                                              Contractors / Tools Suppliers Preparation
                       -                             Process Plan
 PREPARATION                         Layout                                   Validation                                                             Process
                                                                                                 Progress Follow-up, Line Training
                                                         Quality               Process           • Validate Vendors Quality Systems                 Build-up
     QUALITY           -             GD&T
                                                        Planning               Control           • Validate In-House Quality Process                Quality

                                                   NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                   [Company No.: 591026-M]                                                                                        Page 17
PRODUCT DEVELOPMENT SYSTEM – NPI Process –
Manufacturing Engineering Initiatives
             27 27 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10                                             9     8    7    6     5       4    3      2    1    0
                                                                                                                                                                  SOP
                                            Model fix
 PROJECT α



                                                 Styling                         Major freeze
                                                                Mule                                   Off tool
                                                                                                      Prototype
                                                                 Detail design
                                                                                        Production tooling                                       Pilot
                                                                                                                   M/T Ship V/M
                                                                        3M                                    14 M


                   Concept           Concept             Concept
                                                                                                                                                 Production
                                                                                Final
                                                                                                      FOLLOW-UP and
                   Initiation        Direction           Approval
                                                                                                                                                 Approval
                                                                               Approval
                  PRODUCT            STYLING             MODEL                                      COUNTERMEASURES                                PQCM
                                                                               DQCM
                  PROPOSAL          APPROVAL               FIX

                                 Product Location
                                                                                                                               Line Preparation
                       1         Approval (including
                                                                                                                               Completion
                                 Investment)
   CRITICAL
                                   Production Layout                                                   M-Car Production
 MILESTONES                     2 Finalization                                                         Phased-out
 INITIATIVES
     FOR
                                                                              Equipment and Facilities Relocation (including
PRODUCTION
                                    Appointment of                                         for Spare Parts)
PREPARATION
     FOR                            Contractor and Tooling
                                3
   Project α                        (Dies and Jigs) Suppliers                   Line Modification, Construction, Installation, Testing and
   (Platform                                                                                           Validation
  Carry-Over)
                                                                      SE (Simultaneous
                                      Appointment of
                                4
 PROJECT TO                                                       Engineering) for DFMEA &
                                      Local Vendors
 BE ABLE TO                                                                PFMEA
BE LAUNCHED
BY 18 MONTHS                                                       Quality Planning (GD7T,
                                      Product and
                                5
AFTER MODEL                                                       Fit & Finish, Appearance,
                                      Process Quality             BIW, Warranty, Reliability)
     FIX
                                    Market &
                                                                      Lessons Learnt and
                                6   Production Quality                   Improvement
                                    Feedback
                                                    NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                    [Company No.: 591026-M]                                                                                   Page 18
TYPICAL PROJECT –DEVELOPMENT MAN-HOUR and
INVESTMENT

                  Rendering


                               Body Design
• Benchmarking
                 Clay Modeling • Chassis                                   • Noise Test
• Market                                                                                                                • Gurun Alam
                               • Equipment                                 • Vibration Test
  Research                                                                                                               Plant
                               • Electrical                                • Crash Test
                                                                                                                        • Bertam Plant
                               • CAE                                       • Homologation
   PRODUCT                                                                                    PRODUCTION
                   STYLING      ENGINEERING             PROTOTYPE              TESTING                       LOGISTIC      ASSEMBLY
   PLANING                                                                                    PREPARATION

                                   ENGINE


                                 Engine Design


                                  Machining


                                   Casting


 PRODUCT          STYLING        ENGINEER-            PROTOTYPE               TESTING          PROD.        LOGISTIC    ASSEMBLY
 PLANNING                          ING                                                         PREP.

    MAN
                                                   Average ~ +/- 1.0 Million Man-hour
    HOUR

    6%             10 %            25 %                     9%                14 %             19 %          11 %          6%

                                                            Average ~ RM 500 ++ Million
    COST

    1%              2%             22 %                    11 %                6%              51 %          5%            2%

                                                 NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                 [Company No.: 591026-M]                                                       Page 19
PROGRESS MONITORING and DECISION MAKING

            Require ‘top down’ and ‘bottom up’ process.

   MECHANISM                 THE MANAGEMENT TEAM (MCM, PDC)

  • Monthly Product /                              PROVIDE STRATEGIC INTENT
    Project Committee
    Review Meeting.                                   PROVIDE GUIDANCE
  • Management
    Committee                              DECISION      MONITORING &
    Meeting                                MAKING          CONTROL

                                         PROBLEM            IMPLEMEN-
                                        ESCALATION            TATION
  • Weekly
    Meeting
                         PROBLEM RESOLUTION
  • Status Reports
  • Daily Meeting
                        PROBLEM IDENTIFICATION

                                      THE PROJECT TEAM MEMBERS
                         NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                              Page 20
                         [Company No.: 591026-M]
COMMON CAUSE OF FAILURES


               Supplier manpower not consistent                   4

                  Insufficient measurable outputs                          11

                        Supplier under resources                           12

                     Supplier skills oversretched                           13

                       Overall poor management                                   17

                     Mismanagement of progress                                        20

                        Costs getting out of hand                                           26

           Inadequate coordination of resources                                                  29

                         Milestone not being met                                                      34

                                No quality Control                                                    35
   Lack of Planning of scheduling, resources and
                                                                                                           39
                     activities
   Bad Communication between relevant parties                                                                                  57

                                                                                                                         %
                                                              0       10         20           30           40      50           60

                                                                                       Source : The Bull Survey (IT Project)

                                    NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                                                                                           Page 21
                                    [Company No.: 591026-M]
LESSONS LEARNT




     Care about everything and dwell on nothing.
   •
     Don’t wait to be told to do something.
   •
     Develop a keen understanding of human nature.
   •
     Learn the who, when and how to rely on others.
   •
     Consider technology, people and business when
   •
     making decisions.
   • Learn how to make decisions with ambiguous,
     imperfect or incomplete information.
   • Never stop developing your social skills.
   • Appreciate the value of being politically savvy.



                    NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                                            Page 22
                    [Company No.: 591026-M]
THANK YOU
                                     FOR
                          YOUR ATTENTION


NAZA AUTOMOTIVE MANUFACTURING SDN BHD
                                        Page 23
[Company No.: 591026-M]

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Seminar Presentation Design Excellence For Manufacturing Sustainability V1

  • 1. Kamarulzaman Darus PJN Director of Manufacturing NAM Design Excellence for kzamandarus@nam.com.my +6012-277-2059 Manufacturing Graduated in B.Sc. Mechanical Engineering from Sustainability Leeds University, UK. Had been in the Automotive Manufacturing Business for more than 25 years. Had been responsible in key areas of Production and Planning, Manufacturing Engineering, Plant Engineering, Product Research and Development. Currently, the Director of Manufacturing – responsible in all aspects of Manufacturing for Naza Automotive Manufacturing. NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 1 [Company No.: 591026-M]
  • 2. MALAYSIA’S INDUSTRIALIZATION MASTER PLAN Industrial Master Plan (IMP) Industrial Master Plan 2 1986 - 1995 (IMP2) Three broad objectives: 1996 - 2005 Moving beyond • Ensure rapid expansion of the economy through manufacturing operations acceleration of to include : manufacturing sector • Indigenous R&D and growth technology • Promote efficient and • Design Capabilities optimum utilization of • Integrated supporting natural resources through industries value-added manufacturing activities • International marketing • Development of own Brand • Lay foundation for the • World class, world scale development of indigenous technological capabilities “MANUFACTURING” “MANUFACTURING ++” We are now in the midst of IMP-3, which is basically a continuation of IMP-2 but focusing more on state-of-the-art technology and research such as nano- and bio-technology etc. NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 2 [Company No.: 591026-M]
  • 3. INDUSTRY CAPABILITIES TRANSFORMATION MANUFACTURING DESIGN & ENGINEERING VIRTUAL PRODUCT VPDM DESIGN & MANUFACTURING MILEAGE ACCUMULATION MACD CHASSIS DYNAMOMETER Local Vendors Development Climatic Chamber, Engine Test Cells) CMSS (4-Poster, Kinematics Rig, (4- Crash Sled, Components Tests Laboratory) PROTOTYPING - Rapid Prototyping (SLA, LOM) , Prototyping Centre CADDS (Computer-Aided Design System) CAD (EUCLID, (Computer- Note: CATIA ® ), CAE, CAM Major Tests and Validations would still be STYLING, MODELING & ERGONOMICS Conducted in Tests Centers such as at Millbrook, Idiada, Crashlab etc. SHTT (Semi-High Speed Test Track), Emission and (Semi- Noise Laboratory (Semi-Anechoic Chamber) (Semi- CASTING and MACHINING DIES DESIGN & MANUFACTURING ENGINE ASSEMBLY JIGS DESIGN & MANUFACTURING STAMPING & DIES MAINTENANCE CAR ASSEMBLY OPERATIONS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NAZA AUTOMOTIVE MANUFACTURING SDN BHD 1986 2007 Page 3 [Company No.: 591026-M]
  • 4. INDUSTRY DIFFERENTIATORS • Product Life Cycle •Platform Engineering •Short Lead Time from halved •Modular Engineering Ordering to Delivery • SE/CE Teams • CAS/CAD/CAE; VR Reduced Reduced Product Variety Marketing Product Product Variety Marketing Product Lifecycle Lifecycle INTEGRATED BY THE NPI SYSTEM INTEGRATED BY THE NPI SYSTEM Market & Market & Consumer Consumer DESIGNED FOR THE MARKET DESIGNED FOR THE MARKET Lower Volume ““Real-Time” Real-Time” Lower Volume Automation Automation Wider Range Logistics Wider Range Logistics • Flexible •EDI, JIT Manufacturing CAD / CAM / CIM •Configurable BOM System (FMS) KEY: DESIGN STRATEGY: KNOW-HOW & TOOLS DEPLOYMENT INTO THE VALUE CHAIN KEY: DESIGN STRATEGY: KNOW-HOW & TOOLS DEPLOYMENT INTO THE VALUE CHAIN NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 4
  • 5. VALUE CHAIN TOOLING: COMMON STAMPING DIES, TESTING PLATFORM PLASTIC MOULDS & PLATFORM DESIGN & DEVELOPMENT VALIDATIONS ENGINEERING STAMPING BODY WELDING AND ASSEMBLY STYLING PRODUCT DESIGN ENGINEERING INTEGRATED AND DIFFERENTIATED BY PAINTING TECHNOLOGY (DESIGN & ENGINEERING) FINAL ASSEMBLY PRODUCT LOGISTICS & VENDORS DISTRIBUTION COMPONENT MARKET DEVELOPMENT (SALES & and SUPPLY MARKETING) & POWERTRAIN EQUIPMENT DESIGN & SUPPLIERS MANUFACTURING NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 5
  • 6. INDUSTRY LEVEL OF CAPABILITIES SUSTAINABLE MANUFACTURER ….. ECONOMIES OF SCALE ~ MINIMUM 30K/MODEL/ YEAR GLOBAL QUALITY PRODUCTION ORGANISA- ORGANISA- QUALITY CONSUMER MARKET BRANDING PRODUCT SYSTEM TION COMPONENT Loyal Consolidated •“Own” Car •Low Cost •“Flexible” •Knowledgeable •Strong Brand •Global & •Competitive •“Own” Brand •Desirable •‘0’ Defect •Up-to-date Up- to- •Delighted Regional •Global Source •Up-to-Date Up- to- •‘0’ Stock Information Network COMPLETE MAKE TO ADVANCED SUITE FULL RANGE VENDOR FLEXIBLE CUSTOMERS’ GLOBAL MANAGEMENT OF DESIGN MODEL PARTNERSHIP PRODUCTION CONFIGURED MARKETING •Empowerment TOOLS DESIGN (1st TIERING) SCHEDULING ORDERS •Teams & FACILITIES (INCLUDING VR) GLOBAL SOUND TIMELY, MAKE PRESENCE MATERIAL ACCURATE, TO ‘IN-HOUSE’ IN- DEEP DESIGN INTEGRATED •Selected PROCESS AND ORDER DESIGN COMPETENCE SUPPLY CHAIN Markets FLOW INTEGRATED •Strong in •JIT, CC INFORMATION ASEAN •KANBAN MULTI PLANT SOUND ASSEMBLE GOOD OPERATIONS BASIC CROSS MATERIAL PROCESS TO PRODUCTION •Own MODIFICATION FUNCTIONAL COST and CONTROL DISTRIBUTORS’ SYSTEM •Contract DESIGN DESIGN TEAMS MANAGEMENT •Financial ORDERS •Process design •CKD •HR ASSEMBLE BASIC DESIGN SIMPLE DOMESTIC PARTNER VENDOR BASIC TO TOOLS PRODUCTION DOMINANCE DESIGN DEVELOPMENT FUNDAMENTAL STOCK AND FACILITIES SYSTEM NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 6
  • 7. CAPABILITY DEVELOPMENT IP Value Chain S) High Technology High Employment e D siv High Knowledge Application N es FU gr ro T P EN 1:10 = 100,000 M OWN US J PRODUCT AD DESIGN L RIA RnD CENTRE T US & e iv D ss (IN ENGINE MFG e gr F Re IA 1:6 = 40,000 PLATFORM MFG R&D Centre, Product Design, Assemble Powertrain & Localize High Tooling 60% Labor Manufacturing . 1:1 = 600 CKD 25 years NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 7
  • 8. PRODUCT DEVELOPMENT ELEMENTS EFFECTIVE DESIRED INITIATIVES DELIVERABLES MARKET BOARD Project Process Management Engineering Cost Vehicle Simultaneous Design Weight Plant Design, Engineering Engineering Set-Up & Development Quality Performance Engineering Machinery, Delivery Simulation Equipment & Analysis & Facilities TOTALLY INTEGRATED PRODUCTS MANAGEMENT IMPLEMENTATION NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 8
  • 9. ADVANCED VIRTUAL ENGINEERING Design Safety Structural Style ST Control Performance Presentation CO Dynamic Formability Assembly & Performance Possibility G Possibility IN TIM NT Quality E Control PM O 3D CAD EL Modeling V DE Crash Durability Virtual G Simulation Analysis IN Reality C Vehicle DU Metal Dynamics RE Digital Forming Analysis Analysis Mock Up Tolerance Analysis NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 9
  • 10. CONCURRENT ENGINEERING To shorten the development time and reduce the cost of late design changes through early involvement of all stakeholders during development The desired CAE No of design change Mule vehicle The historic Alias styling Verification model Formability DMU More cost for design change and market warranty Planning Styling Proto Pilot Prod. S.O.P NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 10
  • 11. COST CONTROL & BENCHMARKING PAST Present Estimated Estimated Design Design sales price sales price Target cost Parts develop. Target cost Parts develop. set up Purchasing set up Purchasing DTC Manufacturing Manufacturing Design To target Cost Cost totaling Cost totaling BTC Buy To design Cost Sales price Sales price SE, GE of parts Cost reduction by development, design change purchasing, - Investment manufacturing, vendors - Lead time Loss NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 11
  • 12. DESIGN VALIDATION Concept Product Verification Validation Vehicle Initial Tuning Install & Instruction - Hard Points Quality Control - Specification & etc. Productivity Abuse Test Structural Durability Test Proto Spec. set-up Design Library Concept study Component & Prototype Production Benchmarking Initial Design Pretest Develop Develop Preparation Design Verification Concept Develop Target Study Vehicle Fine Tuning Lay-out & Package Production Spec. set-up Dynamic Simulation Durability Test Performance Analysis Cost & Weight Control FEM Analysis LS-Dyna Abaqus Pam-Crash Auto Form Nastran ADAMS Mark II NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 12
  • 13. PRODUCT DEVELOPMENT SYSTEM – Computer-Aided Automotive Development (CADDS) PRODUCT PLANNING STYLING PROTOTYPE Package Sketching Animation & Digital Ergonomic Concept 3D 1:1 Clay Layout & Design Mock-up Study Design Modeling 1:1 BIW Drawing Rendering Presentation DMU Computer Aided Computer Aided Industrial Design Rapid Prototyping Ergonomic Study ALIAS Maestro - SLA/LOM - Slice- CATIA / Safeworks Paint; Auto Studio; Eclipse Composer LOM -Magic RP Parts Reverse 5-Axis Milling Machine, CATIA - Class ‘A’ Surfacing Digitising Engineer- Digitising & Modeling ing Suppliers / Vendor- Vendor- Powertrain Product Analysis & Modules/Systems Learning CATIA Homologation & Testing Engineering Design Layout Parts Design Assembly Harness Design Interference Component NVH Emission Material Drawing Drawing Design & Layout Checking Endurance REDESIGN * R&H Computer-aided Design Computer- Crash Performance CATIA Emission, Performance & Safety Electrical Anaechoic Chamber, Strength & Material Computational Structural Crash-worthiness Electronics & NVH Laboratories, Sled Test Rig Fluid Dynamics Analysis (Linear) & Occupant Safety EM Analysis SHSTT (Test Track), Simulation Road Surface Track Computer Aided Engineering and Virtual Testing 4-Poster Driving Simulation Rig, MSC-PATRAN MSC-NASTRAN ADAMS LS-DYNA 3D Kinematics Rig, Engine Dynamometer Manufacturing Robot Robot Assembly Line Process Dies Stamping NC Tape Assembly Jig Programming Simulation Simulation Planning Design Simulation Generation Inspection Jig Computer Aided Assembly/Robotic Simulation Computer Aided Manufacturing ROBCAD, WITNESS AUTOCAD, CAD/CAM-CATIA/CADAM NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 13
  • 14. PRODUCT DEVELOPMENT SYSTEM – NPI Integrating Activities Model • • Cross Functional Teams Cross Functional Teams • • Team Leadership Team Leadership • • Team Development (Education & PEOPLE Team Development (Education & PEOPLE Training) Training) • • Reward and Recognition Systems Reward and Recognition Systems • • Co-Location “SOFT” NPI Co-Location “SOFT” NPI ACTIVITIES ACTIVITIES Project Management • Project Management • Formal NPI Procedures • Formal NPI Procedures • PROCESS Customer-Supplier Integration PROCESS • Customer-Supplier Integration • Formal Team Briefings • Formal Team Briefings • Organization Re-Design • Organization Re-Design • NEW PRODUCT NEW PRODUCT DEVELOPMENT DEVELOPMENT STRATEGY STRATEGY Computer/Networks (Common • Computer/Networks (Common • Database) Database) TOOLS & • Computer-Aided Design (CAD) TOOLS & • Computer-Aided Design (CAD) • Computer-Aided Engineering (CAE) TECHNIQUES • Computer-Aided Engineering (CAE) TECHNIQUES • Computer-Aided Simulation (CAS) • Computer-Aided Simulation (CAS) “HARD” NPI “HARD” NPI ACTIVITIES ACTIVITIES • Quality Function Deployment (QFD) • Quality Function Deployment (QFD) • Design of Experiments (Taguchi) • Design of Experiments (Taguchi) FORMAL • Design for Manufacturing / Assembly FORMAL • Design for Manufacturing / Assembly (DFM/DFA) METHODS (DFM/DFA) METHODS • Failure Mode & Effect Analysis (FMEA) • Failure Mode & Effect Analysis (FMEA) NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 14 [Company No.: 591026-M]
  • 15. PRODUCT DEVELOPMENT GATEWAYS MILESTONES SYSTEM – NPI Process PHASE 11-STEP PROCESS KEY CONTENTS PHASE 11-STEP PROCESS KEY CONTENTS INITIAL SCREENING IDEA CREATION PROJECT OBJECTIVES PRE-LIMINARY BUDGETING “QUICK & 1 INITIAL SCREENING IDEA CREATION PROJECT OBJECTIVES PRE-LIMINARY BUDGETING PHASE 00 “QUICK & DIRTY” BUSINESS CASE SUCCESS CRITERIA “GO / NO GO” 1 KICK-OFF KICK- DIRTY” BUSINESS CASE SUCCESS CRITERIA “GO / NO GO” KICK-OFF PHASE TEAM FORMATION RESOURCE & BUDGET ALLOCATION ROLES & 2 PROJECT INITIATION TEAM FORMATION RESOURCE & BUDGET ALLOCATION ROLES & 2 PROJECT INITIATION RESPONSIBILITIES VOC (VOICE OF CUSTOMER” SPECIFICATIONS RESPONSIBILITIES VOC (VOICE OF CUSTOMER” SPECIFICATIONS MARKET & SEGMENT ANALYSIS COMPETITOR / COMPETITIVE ANALYSIS PRODUCT 3 PROJECT DIRECTION PHASE 11 MARKET & SEGMENT ANALYSIS COMPETITOR / COMPETITIVE ANALYSIS PRODUCT 3 PROJECT DIRECTION & PRICE POSITIONING MARKETING & SALES ANALYSIS RISK EVALUATION ROI PHASE & PRICE POSITIONING MARKETING & SALES ANALYSIS RISK EVALUATION ROI VOC & MARKET FINALIZATION PRODUCT SPECIFICATION FINALIZATION VOC & MARKET FINALIZATION PRODUCT SPECIFICATION FINALIZATION 4 PROJECT (MODEL) FIX TECHNOLOGY FINALIZATION QUALITY FINALIZATION MANUFACTURING 4 PROJECT (MODEL) FIX TECHNOLOGY FINALIZATION QUALITY FINALIZATION MANUFACTURING INVESTMENT & RESOURCE FINALIZATION FINALIZATION INVESTMENT & RESOURCE FINALIZATION FINALIZATION DEVELOPMENT KICK-OFF COLLABORATIVE INITIATIVES IN-HOUSE + 5 PROJECT APPROVAL DEVELOPMENT KICK-OFF COLLABORATIVE INITIATIVES IN-HOUSE + 5 PROJECT APPROVAL SUPPLIERS/VENDORS + CONSULTANTS and BUSINESS / FINANCIAL/RISKS SIGN-OFF SUPPLIERS/VENDORS + CONSULTANTS and BUSINESS / FINANCIAL/RISKS SIGN-OFF PROJECT DESIGN 6 PROJECT DESIGN DESIGN SIGN-OFF DESIGN QUALITY CONFIRMATION (DQCM) 6 APPROVAL DESIGN SIGN-OFF DESIGN QUALITY CONFIRMATION (DQCM) APPROVAL PHASE 22 PHASE PROJECT FINAL ENGINEERING SIGN-OFF PRODUCT VALIDATION (TESTING, HOMOLOGATION) v.s. 7 PROJECT FINAL ENGINEERING SIGN-OFF PRODUCT VALIDATION (TESTING, HOMOLOGATION) v.s. 7 APPROVAL SEPCIFICATIONS APPROVAL SEPCIFICATIONS PRE-PRODUCTION PRE- PRE-PRODUCTION TRIALS AND VALIDATION PROCESS, QUALITY, RELIABILITY, 8 PRE-PRODUCTION PRE-PRODUCTION TRIALS AND VALIDATION PROCESS, QUALITY, RELIABILITY, 8 APPROVAL SUPPLY CHAIN & LOGISTICS (PRE-PRODUCTION) APPROVAL SUPPLY CHAIN & LOGISTICS (PRE-PRODUCTION) 9 PRODUCTION APPROVAL MANUFACTURING SIGN-OFF PRODUCTION QUALITY CONFIRMATION 9 PRODUCTION APPROVAL MANUFACTURING SIGN-OFF PRODUCTION QUALITY CONFIRMATION PHASE 33 MARKETING SIGN-OFF 10 LAUNCH APPROVAL MARKET LAUNCH PHASE MARKETING SIGN-OFF 10 LAUNCH APPROVAL MARKET LAUNCH ENGINEERING & TECHNICAL PCR/PCO LESSONS LEARNT PROJECT CLOSURES 11 PROJECT CLOSURE ENGINEERING & TECHNICAL PCR/PCO LESSONS LEARNT PROJECT CLOSURES 11 PROJECT CLOSURE KNOWLEDGE CAPTURING KNOWLEDGE CAPTURING NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 15 [Company No.: 591026-M]
  • 16. PRODUCT DEVELOPMENT SYSTEM – NPI Process – Relationship with Product’s Complexities COMPLEX PRODUCTS COMPLEX PRODUCTS STRUCTURAL COMPLEXITY WITH S WITH IE IT CLEARLY DEFINED IV CLEARLY DEFINED CT MARKET COMPLEX PRODUCTS MARKET COMPLEX PRODUCTS A N REQUIREMENTS WITH REQUIREMENTS TIO WITH DIFFICULT TO DEFINE A DIFFICULT TO DEFINE R EG MARKET T MARKET IN REQUIREMENTS R REQUIREMENTS FO D EE S N ES NG C RO SI P A RE P TE C -S IN SIMPLE PRODUCTS 11 SIMPLE PRODUCTS WITH R WITH FO CLEARLY DEFINED E CLEARLY DEFINED C EN MARKET MARKET U FL REQUIREMENTS SIMPLE PRODUCTS REQUIREMENTS SIMPLE PRODUCTS IN WITH DIFFICULT G WITH DIFFICULT IN S TO DEFINE EA TO DEFINE R MARKET C MARKET IN REQUIREMENTS REQUIREMENTS FUNCTIONAL COMPLEXITY NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 16 [Company No.: 591026-M]
  • 17. PRODUCT DEVELOPMENT SYSTEM – NPI Process – Programme and Follow-Up 27 27 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Model fix SOP PROJECT α Styling Major freeze Mule Off tool Prototype Detail design Production tooling Pilot M/T Ship V/M 3M 14 M Concept Concept Concept Production Final FOLLOW-UP and Initiation Direction Approval Approval Approval PRODUCT STYLING MODEL COUNTERMEASURES PQCM DQCM PROPOSAL APPROVAL FIX Marketing Sales & Market Volume-Price Pet Name, Brochures, Launching Program, 7 Focus Group MARKET Plan Launch Plan Research Justification Manuals Teardown & Development Product PRODUCT USPs CVDS Project Progress Follow-Up and Tracking B/Marking Schedule Variants INVESTMENT & Total Cost & BOM Cost BOM & Inv. BOM & Inv. Project Feasibility Tracking OMV & OTR COST Investment Target Review Tracking (BOM & Investment) Styling Packaging & Surfacing & Colors & Interior and Exterior Colors, Material, Texture STYLING - Concept Ergonomics DMU Accessories Follow-up and Finalization SE, DFMEA & PCR / PCO DESIGN D&E Overview DCS & Layout P-Drawings C.L. Tracking and Validation PFMEA Cut-off Timely Feedback to Design, Manufacturing PROTOTYPING - Mule Car Plan Mule Car Mule Car - Engineering and Quality TESTING & Homologation Design Mule Car Test Results Durability & Timely Feedback to Design, Manufacturing VALIDATION Plan Validation Plan Test & Validation Reliability Engineering and Quality New, Mod. or Sourcing Appoint & Final Supply PPAP & PSW Vendors / Suppliers Preparation Progress PROCUREMENT C/Over Strategy Cost Review Cost PSA Follow-up PRODUCTION Location & Process Final Contractors / Tools Suppliers Preparation - Process Plan PREPARATION Layout Validation Process Progress Follow-up, Line Training Quality Process • Validate Vendors Quality Systems Build-up QUALITY - GD&T Planning Control • Validate In-House Quality Process Quality NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 17
  • 18. PRODUCT DEVELOPMENT SYSTEM – NPI Process – Manufacturing Engineering Initiatives 27 27 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 SOP Model fix PROJECT α Styling Major freeze Mule Off tool Prototype Detail design Production tooling Pilot M/T Ship V/M 3M 14 M Concept Concept Concept Production Final FOLLOW-UP and Initiation Direction Approval Approval Approval PRODUCT STYLING MODEL COUNTERMEASURES PQCM DQCM PROPOSAL APPROVAL FIX Product Location Line Preparation 1 Approval (including Completion Investment) CRITICAL Production Layout M-Car Production MILESTONES 2 Finalization Phased-out INITIATIVES FOR Equipment and Facilities Relocation (including PRODUCTION Appointment of for Spare Parts) PREPARATION FOR Contractor and Tooling 3 Project α (Dies and Jigs) Suppliers Line Modification, Construction, Installation, Testing and (Platform Validation Carry-Over) SE (Simultaneous Appointment of 4 PROJECT TO Engineering) for DFMEA & Local Vendors BE ABLE TO PFMEA BE LAUNCHED BY 18 MONTHS Quality Planning (GD7T, Product and 5 AFTER MODEL Fit & Finish, Appearance, Process Quality BIW, Warranty, Reliability) FIX Market & Lessons Learnt and 6 Production Quality Improvement Feedback NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 18
  • 19. TYPICAL PROJECT –DEVELOPMENT MAN-HOUR and INVESTMENT Rendering Body Design • Benchmarking Clay Modeling • Chassis • Noise Test • Market • Gurun Alam • Equipment • Vibration Test Research Plant • Electrical • Crash Test • Bertam Plant • CAE • Homologation PRODUCT PRODUCTION STYLING ENGINEERING PROTOTYPE TESTING LOGISTIC ASSEMBLY PLANING PREPARATION ENGINE Engine Design Machining Casting PRODUCT STYLING ENGINEER- PROTOTYPE TESTING PROD. LOGISTIC ASSEMBLY PLANNING ING PREP. MAN Average ~ +/- 1.0 Million Man-hour HOUR 6% 10 % 25 % 9% 14 % 19 % 11 % 6% Average ~ RM 500 ++ Million COST 1% 2% 22 % 11 % 6% 51 % 5% 2% NAZA AUTOMOTIVE MANUFACTURING SDN BHD [Company No.: 591026-M] Page 19
  • 20. PROGRESS MONITORING and DECISION MAKING Require ‘top down’ and ‘bottom up’ process. MECHANISM THE MANAGEMENT TEAM (MCM, PDC) • Monthly Product / PROVIDE STRATEGIC INTENT Project Committee Review Meeting. PROVIDE GUIDANCE • Management Committee DECISION MONITORING & Meeting MAKING CONTROL PROBLEM IMPLEMEN- ESCALATION TATION • Weekly Meeting PROBLEM RESOLUTION • Status Reports • Daily Meeting PROBLEM IDENTIFICATION THE PROJECT TEAM MEMBERS NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 20 [Company No.: 591026-M]
  • 21. COMMON CAUSE OF FAILURES Supplier manpower not consistent 4 Insufficient measurable outputs 11 Supplier under resources 12 Supplier skills oversretched 13 Overall poor management 17 Mismanagement of progress 20 Costs getting out of hand 26 Inadequate coordination of resources 29 Milestone not being met 34 No quality Control 35 Lack of Planning of scheduling, resources and 39 activities Bad Communication between relevant parties 57 % 0 10 20 30 40 50 60 Source : The Bull Survey (IT Project) NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 21 [Company No.: 591026-M]
  • 22. LESSONS LEARNT Care about everything and dwell on nothing. • Don’t wait to be told to do something. • Develop a keen understanding of human nature. • Learn the who, when and how to rely on others. • Consider technology, people and business when • making decisions. • Learn how to make decisions with ambiguous, imperfect or incomplete information. • Never stop developing your social skills. • Appreciate the value of being politically savvy. NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 22 [Company No.: 591026-M]
  • 23. THANK YOU FOR YOUR ATTENTION NAZA AUTOMOTIVE MANUFACTURING SDN BHD Page 23 [Company No.: 591026-M]