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1 Introduction to execution strategy and case study for R&D Process Innovation Woocheol Jeong, Soyoung Moon Abstract The corporate research and development has a primary role of developing new products, and its capability and potential is one of the most crucial factors in estimating a company s future value. However, today s R&D processes are impacted by inadequacy and inefficiency in supporting systems, short product life cycle, global operations and outsourcing strategy, and the reduced product costs. As a result, a three-phased execution strategy for R&D process innovation is introduced to establish a master plan for a new R&D model. From an IT point of view, PLM (Product Lifecycle Management) is one of the total business solutions in product development. It s not a system, but a strategic business approach that collaboratively manages products from concept to end of life. PLM functions and capabilities are usually used as a reference in redesigning of new R&D processes. BPA and 5DP (design parameters) tools are introduced to establish R&D master plan and to redesign processes effectively. The Business Process Assessment (BPA) tool that was presented in PI 6 Sigma from Samsung SDS Consulting Division is the methodology used to objectively extract business process issues. Another principle tool provided in PI 6 Sigma is the 5DP (design parameters) analysis for process redesign. This article also provides a case study for R&D process innovation, and discusses how process assessment and PMM (Process Maturity Model) can be applied in business processes. Lastly, it explains process redesign by 5DP method. Keywords: R&D process innovation, PI (Process Innovation), PLM (Product Lifecycle Management), PI6sgma, Process Assessment, BPA (Business Process Assessment), Process Redesign, 5DP (Design Parameters) 83

2 D., R&D.,,,,,.. (Hammer) (Johansson),, (Davenport) (Manganeli) (Omar A. El Sawy) Output. (Process Innovation),, [1]., [2]. 84

3 (Fundamental Rethinking) (Radical Redesign) (), (Dramatic Improvement) 20. SQC(Statistical Quality Control) TQM(Total Quality Management) 6. 85

4 94 98 PI ERP. SDI POSCO 98, 99 ERP. [ 2] (PI) (IT) IT PI. PI Enabler Business Oriented Process Innovation (BOPI) Solution Global Best Practice Solution Oriented Process Innovation (SOPI) [3] [1]. 86

5 R&D..,.,. Master Plan. PI,.,,,... [5]. McKinsey Core Process Redesign, (BCG) Time-base Competition [6]. 87

6 [ 3]. / Master Plan, To-Be. Implementation. Master Plan PI Implementation. Master Plan Master Plan PI. GE (Time to Market) R&D. R&D. R&D?,?.. R&D.,,. GE., R&D. 4.,,. 6~ GM 4.,,.,.. GM 4 88

7 ... (Routine).,,. Staff,..,,.... Enabler IT PLM (Product Lifecycle Management). PLM, R&D. PLM (Product Lifecycle Management) Strategic Business Approach, People, Processes, Business Systems, Information Enterprise., (ERP), PLM. PLM Management Process Operation Process. Management Process Portfolio Management, Program Management, Project Management, Operation Process Product Concept Design Market Assessment Concept Development Product Design After Market Support [ 4]. Life-cycle PLM Project Management Program Management 9 [ 5]. 89

8 SAMSUNG SDS Consulting Review, No.1, 2007 [그림 4. PLM 개념 정의] Source: AMR Research [그림 5. PLM 주요 Function] Product Mix Management Cost & Demand Targets Problem/Warranty Management Field Maintenance Supplier Management Program Management Product Sales Product Management Process Development Product Development Part/BOM Engineering Specification Mgmt. Source: 삼성SDS 전자/제조컨설팅실 내부자료 90 Resource & Risk Mgmt. Six Sigma & Schedule Customer Supplier Component/Assembly Process Planning Tool Design Business Metrics Product Support Competitive Sourcing Supplier Collaboration Supplier Design Reuse, Failure, & Forecast Accuracy Evaluation Portfolio Management Customer Opportunity Mgmt. Configure to Order Requirement Mgmt. Product Planning

9 PLM PDM 90 Web cpdm Life-cycle CPC, Life-cycle PLM. PDM cpdm CPC PLM ~ ~ Engineering Data Engineering Data Engineering Data Engineering Data Revision History Revision History Revision History Revision History Web Based Collaboration PDM : Product Data Management cpdm : Collaborative Product Data Management CPC : Collaborative Product Commerce PLM : Product Lifecycle Management ERP : Enterprise Resource Planning SCM : Supply Chain Management CRM : Customer Relationship Management Web Based Collaboration External Internet Exchange ERP/SCM/CRM Integration Web Based Collaboration External Internet Exchange ERP/SCM/CRM Interface Full Product Lifecycle PLM 9.6% ,000, R&D,,,,.. / / / PLM, PDM/PLM Upgrade., / PLM. [8] [ 7&8] PLM Magic Quadrant Chart UGS PTC, SAP ERP CRM. PLM Solution Industry Dassault/IBM UGS //, MatrixOne PTC, SAP 91

10 . 92

11 PLM Gartner Group PLM Hype Cycle [ 9]., Hype Cycle. Hype Cycle 5. Technology Trigger :. Peak of Inflated Expectations : /., Trough of Disillusionment : /,, Slope of Enlightenment : / Plateau of Productivity : /, Tool PLM Hype Cycle Label and Artwork Compliance, System Engineering Software Product Cost Management. Hype Cycle Industry,. 93

12 (1), (2), (3)., Supply Chain, Outsourcing. PLM, Design for Six Sigma & Virtual Prototyping,. / /. SCM/MES DFM (Design for Manufacturability). BPA SDS PI 6 (Define),. BPA PI 6 Define, CTQ. [ 2] BPA Tool. BPA Tool PCF, PMM, BP, PCF PMM Framework. BPA Tool PMM [ 10] Poor, Basic, Effective, Best Practice, Emerging 5 Level Framework. Framework,.,. 94

13 Continuously Improving Level 5 Process Emerging Predictable Process Level 4 Consistent Best Practice Process Organizational Control Level 3 Process Effective Process Process Measurement Discipline Level 2 Basic Process Definition Level 1 Poor Basic Process Management Ad hoc 95

14 BPA PCF. PCF, APQC (American Productivity & Quality Center,, Benchmarking. PCF [ 11] Operating Process Management and Support Services 12 Functional Area Design Marketing Deliver Manage Vision and Products and Products Customer Strategy and Services Sales (B2C) and Services Service 6.0 Manage Human Capital 7.0 Manage IT and Knowledge 8.0 Manage Financial Resources 9.0 Manage Property 10.0 Manage Health and Safety 11.0 Manage External Relationships 12.0 Manage Improve and Change R&D A, BPA. PCF PMM, PI 5DP(Design Parameter Analysis) Process, Rule& Policy, Performance Measure, Role & Responsibility, System - BPA Process, 4 - Rule& Policy, Performance Measure, Role & Responsibility, System-. 96

15 , R&D BPA, A, PCF 12 Functional Area PLM Business Process Conceive, Design, Realize, Service. A [ 3.] PCF Functional PLM Operating Process. PLM Conceive, PCF Functional Area 1.0 Develop Vision & Strategy, A, /,. PLM Design Realize PCF 2.0 Design Product & Services,,,. PLM Service PCF 3.0 Marketing and Sales, 4.0 Deliver Products & Services, 5.0 Manage Customer Service, A /,,,,,. A PLM, 97

16 PCF Functional Area 8.0 Financial Resources 11.0 Manage External Relationships A. PI 5 DP - Rule& Policy, Performance Measure, Role & Responsibility, System A PI BPA Framework. Process,,, / 14 /40 5 /10 [ 12] A PI BPA Framework. Process 4DP () / Performance Measure (VOC) Sourcing Rule & Policy / System IT / / / Claim Role & Responsibility Communication Spec. Risk Order / BPA Framework. PMM 5 Level 5,. 2,, [1]. Michael Hammer 98

17 Redesign PI.,. A, BPA, 5DP A. 5 DP Process, Rule & Policy, Role & Responsibility, Performance Measure, System 5 99

18 , 5 Cross-Function, R&D. [ 13] PI Process Process Activity, Rule & Policy, Role & Responsibility R&R, System Performance Measure KPI. R&D..,. R&D..,.. PI (Process Innovation). BPR (Business Process Reengineering),. Enabler. BOPI SOPI.. /., Global Operation Outsourcing [9]. R&D.,. Top-Down R&D. 100

19 101

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