$ saved using APQP - Can anyone share with me a success story?

[Roger Eastin]

Can anyone share with me a success story using an APQP approach with emphasis on $ saved? I have a management team that has philosophically bought an APQP approach, but is having trouble staying away from the temptation of "shotgunning" projects(I am assuming that the APQP approach is compared to the "shotgun" project management approach!)

[Kevin Mader]

Roger,

I work for an organization that has been using a design program (it mirrors Fords design program) which was what the APQP is, to my knowledge, based upon. When I joined the organization, it was the first time I had seen the FMEA process being performed. Systems, Process, and Design FMEAs are performed ritually. Have I a specific dollar amount? Not really, but I can say that often times the FMEA process, and the associated verification and validation, has spared this organization several costly tooling design changes late in the program. Above that, what did we save in the cost of a dissatisfied customer? What did we gain by discovering something missing or wrong early in the Customer's eyes. We don't catch all of our opportunities, but the process really does help. Combined with the other aspects of the design model, virtually anyone involved with design process will see how the program has saved. Design Review periodically through the program is a real check and balance and keeps the program focus and closer to a time plan. Hope this helps.

[Howard Atkins]

I heared a story today that in the late 1970's there was a scare as with the 2K bug because in those days the computers worked on one digit. There were problems, I am sure some of you remember this better than I.
If they had performed FMEA then on the process and used APQP techniques to solve the problem then the 2k bug would not be here.

[Roger Eastin]

I appreciate the replies, but if anyone has some dollars that have been saved using an APQP approach, I would appreciate hearing them. I do agree with Deming that most "lost" costs are unknown and unknowable, such as lost customer satisfaction. However, in our indicator-based industry, it would be helpful to hear a story or two of how APQP helped the bottom line.

APQP = concurrent engineering

IEEE Spectrum, July 1991 "special report on concurrent engineering (CE)"

John Deere & co used CE to cut 30 % off the cost of developing new construction equipment and 60 % off development time

Hewlett-packard decided to improve the quality of its products by 1000 percent in 5 years -- and succeeded! For example, on one product the devgelopment team for an oscilloscope developed the product from idea to finished product in 1/3 the time it took to develop similar products.

AT & T adopted CE and reduced the time it took to develop a new switching system by 50 %.

Institute for defense analysis (Wenner et al 1988) benefits of Ce included:

40 -60 percent reduction in developpment time
30-40 percent reduction in development costs
50 percent reduction in engineering changes
75 percent reduction in rework and scrap

There are other metrics similar to this in "Concurrent engineering effectiveness" by Mitchell Fleischer and Jeffery Liker. I highly recommend it!

[Roger Eastin]

Thanks. Now we're talking! Who published the book on Concurrent Engineering?

[Howard Atkins]

Has any one got any figures now?

[Marc]

Looks like what we so often find - Few people can really break out costs and savings.