Technological Innovation
Within the frame work of the series the “small production system” we have a look at the supporting processes. As usual we keep it short and to the point.
Definition
Technological innovation describes a systematic approach to securing competitiveness through new or further developed processes in production, including production-related support areas.
The targets:
Each cost center plans and implements innovation and technology projects for sustainable earnings improvement. Improvements in terms of costs, product quality and delivery capability are measurable.
Solutions from technology projects have been incorporated into product developments.
Synergy from technology projects is used organization-wide. Procedures to compensate for know-how transfer are applied.
Technological leadership in core and key technologies and the associated process chains has been achieved. This leads to a positive image with customers.
Discussions with customers and suppliers (internal and external) are held regularly.
Key elements:
Technology projects
Technology budget / costs
Ideas and solutions
Strategy
Project Management
Teamwork
Organization
Influence on product development
Climate of innovation / corporate culture
Dealing with know-how
Image
Benchmark
KPI
Innovation ratio
Rank in comparison with other companies
Innovations- and Technology projects – Level of fulfillment
Level 1
Sporadic technology development projects are taking place. Only solutions for individual technological problems.
Level 2
Planning and implementation of projects not comprehensive and only in the short term. Project costs are only partially and not integral anchored in operational planning.
Level 3
Target agreements on the number of projects to be completed per area of responsibility (e.g. 1 major project, 5 small projects). Systematic implementation of innovative projects in the support processes. Organizational prerequisites for recording project costs and calculable effects have been created.
Level 4
Project costs and calculable effects are entered in the installed tracking tool. Or: Percentages of the necessary savings from innovation and technology projects are entered in the operational planning.
Level 5
Systematic planning of innovation and technology projects with anchoring in operational planning (3 years). Realization of holistic, process-oriented solutions.
Funding of innovation and technology projects
Level 1
No budget planning, no cost transparency.
Level 2
Budget available for individual projects.
Level 3
System of internal financing has been established and is mainly applied.
Level 4
Development of external sources of financing systematically followed.
Level 5
Internal and external financing for projects has been developed and is being used.
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Location strategy
Level 1
Individual strategies for individual optimization are sporadically recognizable. High production depth. High number of variants, high complexity costs e.g. inventories, logistics and so on. Know-how carriers individually available, no synergy regarding know-how application.
Level 2
Core technologies are defined. Individual observations underway. Unbundling of complexity through allocation to products / locations. Knowledge is available both in central offices and decentralized. Central offices organize knowledge transfer.
Level 3
Key technologies / pacemaker technologies are defined. Overall consideration of guard rails (investment strategy, employment and qualification concept) has been carried out. Rules are defined for the selection and definition of technology partners in the context of simultaneous engineering (both for in-house production and for external procurement). Creation of manufacturing networks where economically reasonable. Working groups exchange expertise.
Level 4
Consistent application of key technologies / pacemaker technologies. Consistent application of the guard rails. Investigation / determination of production locations / production networks on a platform basis for new developments. The basis for this are defined criteria such as availability of technologies, production know-how, currency influences, logistics, existing infrastructure, social and political influences. If you have a global organization: Exchange of expertise takes place in English
Level 5
All business processes are oriented towards organization wide strategic goals. Technological leadership in core and key technologies and the associated process chains has been achieved. Worldwide application and use of existing knowledge.
Project Management
Level 1
No continuous structure available
Level 2
Planning of costs, resources, milestones for individual projects is partially executed.
Level 3
Standards for project management and controlling are used. Internal and external coordination by a central office. Project decision by technology committee.
Level 4
Coordination/networking of the thematically related projects are site-related, innovation audits are implemented by the management.
Level 5
Individual projects are coordinated with the overall project landscape worldwide. Project decisions are made by the Technology Committee and Steering Committee. Production engineering in the organization.
Influence on product development
Level 1
No systematic Simultaneous Engineering.
Level 2
Simultaneous Engineering takes place on concrete tasks value analysis projects are carried out. Preliminary technological developments do not take place.
Level 3
Joint development of product and production system begins. Preliminary technological developments take place and flow into new products.
Level 4
Comprehensive joint development of product and production system is standard.
Level 5
The product development process has been halved in time (e.g. through platform developments and rapid prototyping with a target value of 2 years). Solutions from innovation and technology projects have been incorporated into product developments.
