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Mantra for Process Excellence
Sathish Nataraj Sundararajan
Manager
Daimler India Commercial Vehicles Pvt Ltd

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Mantra for Process Excellence
Process Excellence for New Age Project Management
Author: Sathish Nataraj SCo-Author 1: Prabal Ralhan Co-Author 2: Chandramohan S
Daimler India Commercial Vehicles Daimler India Commercial Vehicles Daimler India Commercial Vehicles
sathish.nataraj@daimler.com prabal.ralhan@daimler.com chandramohan.s@daimler.com
Mob: +91 98943 20144 Mob: +91 96000 65673 Mob: +91 87544 85639

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Table of Contents
Page
1. Titleand Abstract……………………………………………………………………………………3
2. Project Management practices in Corporate World………………………………………………3
3. Project Management Objectives…………………………………………………………………...4
4. Advanced Product Quality Planning……………………………………………………………….4
4.1 Plan and Define……………………………………………………………………………………5
4.2 Product Design and Development……………………………………………………………….5
4.3 Process Design and Development………………………………………………………………5
4.4 Product and Process Validation………………………………………………………………….5
4.5 Feedback, Assessment and Corrective Action…………………………………………………5
5. Process Customization……………………………………………………………………………...5
6. Target Cost Matching……………………………………………………………………………….6
7. Target Cost Approach Curve……………………………………………………………………….6
8. Point of No Return…………………………………………………………………………………..7
9. ABC Analysis………………………………………………………………………………………...8
10. Characteristic Management………………………………………………………………………...8
11. Lessons Learnt………………………………………………………………………………………9
12. Conclusion……………………………………………………………………………………………10

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1. Title: Process Excellence for New Age Project Management
Theme: Mantra for Process Excellence
Keywords: ABC Planning, APQP, Target Cost, PONR
Abstract
Project Management is a systematic approach of tools and processes for successfully implementing the
organization’s goals and objectives. It adopts continuous breakthrough improvement and preventive
controlling. Process Brilliance approach looks an organization holistically with all stakeholders controlling
the execution of the project. Traditional processes of running the business takes a higher lead time.
Compliant Process Customization provides a better reduction in time without compromising the quality
and efficiency. This paper demonstrates the improved processes that realize the management motives
with reduced lead time. Processes defined include Target Cost Approach Curve, Target Cost Setting
through Cost Matching, ABC Planning, Point of No Return and Characteristic management. These
processes have shown reckonable improvements in the organizational evolution.
2. Project Management practices in Corporate World
Project management emphases on specific results (deliverables), time and (schedule), means (money,
people, etc.), a series of techniques and procedures that has evolved to aid people efficientlymanage
these accomplishments.Recently, New Project Management techniques (e.g., for creating cross-functional
programmes,managing common resources, and line-up project portfolios), the widespread use of
computers and the growing sophistication and availability of project management software tools have all
augmented the effectiveness of a procedure for addressing a variety of project problems.
Influential competitive pressures tomanage and reduce product life cycle time are increasing, as is the
globalization of many markets and theappreciation of projects as a crucial link between the strategic
areas of the organization and the pre-emptive workbeing performed by distinct functions. Accordingly,
industries as mixed as automobile manufacturing, computer manufacturing,pharmaceuticals,consulting
services, photography and natural resource management have belligerentlyimplemented project
management. These industries, and a countless of others, are using projectmanagement as a method to
create the future, by better considering both customer requirements andsolutions to meet them

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3. Project Management Objectives
3.1 Ensure Projects are completed within Budget and Scheduled Plan
3.2 Provide Quality Solutions vis-à-vis, Minimum Errors, Effectiveness and New Ideas.
3.3 Continuous Process Improvement via Collaboration
3.4 Govern individual time and stress pressure.
4. Advanced Product Quality Planning
Product Quality Planning is an organized method of defining and creating the steps necessary to ensure
that a product gratifies the customer. APQP (Advanced Product Quality Planning) involves 75% up front
planning and 25% execution through implementation, to determine customer satisfaction and continuous
improvement. Though, APQP is generally associated with the automotive industry, the quality planning
processes in APQP can be appropriate within all trades. APQP enables communication between the
vendor and the patron to clarify requirements that decipher into more detailed requirements.
Five Sections of APQP:
Plan and
Define
Product
Des ign &
Development
Proces s
Des ign &
Development
Feedback &
Corrective
Action Project
Product &
Proces s
Val idation
Management
Figure 4.1, Cyclic Process of Planning

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4.1 Plan and Define
Most crucial phase of the project is the Planning phase. It involves establishing the objectives and
processes mandatory to deliver results in harmony with the expected output. By Defining output
expectations, the fullness and accuracy of the specification is also a portion of the pursued
improvement.
4.2 Product Design and Development
Project outcomes are achieved through a good product. Designing a product that suits end
customers’ expectation of usage, budget and appearance (all factors), it is comfortable for a project to
be successful without much sting.
4.3 Process Design and Development
A well outlined process for making the designed product is what we actually materialize in project.
Designing the process requires immense Engineering knowledge of manufacturing, machining and
aided operations to achieve the quality, cost and time targets.
4.4 Product and Process Validation
Product and Process that were designed and developed have to be validated to ensure robustness
and longstanding sustainability. This can be achieved by treating all failure mechanisms. Failure
Mode Effect Analysis tool helps in identifying the risks involved
4.5 Feedback, Assessment and Corrective Action
It is necessary in a project in taking expert feedback at various levels of planning and implementation.
These assessments make sure that the project is on the right path for implementation. Corrective
actions after facing issues help in preventing the same bugs repeating again in future.
5 Process Customization
Companies have their own processes and systems to carry out its business activities. Many such
processes are not easy to execute and time consuming. Processes can be customized according to the
need of the internal customer. For example, in our company, we cannot transfer parts from Assembly
plant to R&D plant, as parts moved will be excisable. Instead of transferring parts for our build, process
was customized in such a way that, the sub-assemblies are moved from Assembly plant with approval
from all stakeholders.

7. It can be achieved by making the sub-assemblies with child parts. Excise duty can be paid to that sub-assembly
part. Advantage of this customized process is that, it saves 40% in transferring time for inter -
plant movement. Complexity involved is less as the sub-assemblies are easily captured in Bill of Material.
Cost calculation for excise value is simple as all are contracted parts.
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Process Excellence for Project Management
6 Target Cost Matching
Target Cost for the project is achieved in the beginning stage of the project. In Automotive Industry,
Target Cost is set for the whole vehicle. From that, it flows down to system level and then to part level.
This is called Top-Down Target Cost. It gives a rough picture of the Expected Actuals of the spending.
Further process is Bottom-up Costing, wherein Cost of individual parts are calculated and populated to
know the system level cost and then the whole vehicle cost.
Figure 6.1, Target Cost Matching
This kind of approach clearly shows where the mismatch in cost is. It is easier to know which system has
the inappropriate cost and known as Target Cost Matching. In industry, it involves the cross -functional
members’ interaction from Finance, Cost Planning, Project and Procurement teams. These works can be
executed in form of a workshop. Based on the output of this workshop, the funding of the project can be
optimized.
7 Target Cost Approach Curve
For any new project in an organization, the target cost approach curve tool provides an easy method to
keep track on the target cost of the complete project. For each and every project phase, target cost can
be compared with the Expected Actuals for that particular phase, with the actual budget available. This
helps in altering the Funding requirements of the project.Figure 7.1 shows three zones of the cost gap.
Red Zone is the one we need to focus to reduce the cost where the cost gap is high. Yellow is medium
risk to the project and can be prioritized second. Green zone, we can ignore as the cost is secured.

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8 Point of No Return
Figure 7.1, Target Cost Approach Curve
PONR is an efficient tool in estimating the cut-off time for activities involved in execution of the project. In
project, each and every task has a deadline. In order to calculate the time required for the task, it is
necessary to come from the reverse. We fix the final milestone of the project and calculate the time
required for every activity from end to start. Figure 8.1 shows the Point of No Return for Interior parts vis-à-
vis, Bumper, Windshield, Head lamp and Rear Window Slide able. The PoNR cut-off time is shown in
Thunder symbol based on lead time to develop the part, having the project milestone fixed. This helps in
tracking the project closely to avoid any critical issues on implementation.
Figure 8.1, PoNR for Interior Parts

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9 ABC Analysis
ABC Analysis process aids in knowing us to focus on the core elements of the project. It says 75% of the
cost is incurred by 5% of the parts which are in the A level. 10% of the cost is incurred by 15% of the
parts which are in B level. Rest 85% of the parts form the C level parts which contributes 10% of the cost.
This pushes us to prioritize the focus on the A and B level with more accuracy in tracking.
10 Characteristic Management
Figure 9.1, ABC Analysis for Automotive Project
Product characteristics defined based on Customer, Internal & Legal requirements to ensure the
strategic market position, requirements from the customer’s point of view are to be observed as well
as internal guidelines & legal requirements. The Characteristics management considers all these
defined requirements as characteristics criteria with highest priority on key buying criteria. All target
values are finalized and status of values are recorded & evaluated in the characteristics management

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INTERNAL
GUIDELINES:
• Conceptual
flexibility
• Complexity
• Daimler standards
11 Lessons Learnt
CUSTOMER
REQUIREMENTS:
Product relevant buying criteria
 Fuel efficiency
 Payload
 Reliability
 Comfort
LEGAL
REQUIREMENT
 Emission: BS-IV
 Noise: NVH
levels
 Safety: SUPD,
RUPD
Figure 10.1, Characteristic Management
When a project reaches Start of Production, it has full maturity of what a product is expected. This has
been achieved in various feedback loops in design, process, production and at various phases. Some
Lessons Learnt from the completed projects is stated below.
 When two projects are running on different timeline but on part commonization concept, timeline
of earlier project has to be considered to complete all the relevantactivities for both the projects.
 Cross functional cost reduction work shop should be encouraged where in peoplefrom different
functions and also handling different systems can participate and provide valuable and perhaps
innovative cost reduction solutions for the project.
 Common forum should be set up so that interfacial issues related to system teamhandling
different systems can be addressed and resolved

11.  Packaging information to be clearly communicated to supplier and ensure completeadherence
from supplier end to avoid receipt of wrong parts and avoid rework onvehicles later during
production
 Design solutions arising out of validation results or improvements should becomprehensively
discussed with all stake holders e.g. Projects, quality, purchasing,Supplier management and ME
so that best solution from quality, cost and time canbe arrived at final impletation
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12 Conclusion
Through the use of the above mentioned tools, it is possible to enhance the responsibilities of Project
management which is Planning, Steering and Reporting. Tools like PoNR, ABC Analysis and Target Cost
Matching are useful in the Planning phase. Characteristic Management, target Cost Approach Curve and
Timeline reporting are used in Steering and Reporting phase. The use of these tools brings structure to
Project Management. Making such tools standard in a company also brings in transparency in the
system.