MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION STUDENT: VŨ NGỌC THANH TRÚC SKL012871 GRADUATION THESIS INDUSTRIAL MANAGEMENT CONTROLLING NEW
Rationale
Given how rapidly the markets of today are evolving, it is vital for nearly all manufacturers to accelerate the time-to-market of their New Product Introductions (NPI)
A major component of attaining ambitious expansion goals for the organization will be bringing in fresh items and prospects These kinds of goals are essential to the plan
For organizations, NPI is critical because it streamlines the whole product launch process, from engineering and design freeze to production line ramp-up NPI assists firms in reducing expenditures, maximizing resources, and ensuring on-time product delivery to the market by implementing effective, timely processes Internal team members must work closely together to implement effective NPI processes since this enables thorough risk assessments and the early detection of possible problems before they become serious Early involvement of contract manufacturers can also help to facilitate a more seamless transition from development to production by lowering costs and associated risks Businesses can identify and engage with their ideal customer base by utilizing a crucial NPI process This process ensures that the product aligns with market requirements and fulfills customer expectations NPI improves customer satisfaction and brand reputation by emphasizing enhanced product quality, which ultimately leads to increased sales and revenue NPI also plays an important role in material forecasting, ensuring that inventory control and supply chain management are optimized for the manufacturing line By doing this, waste is reduced and businesses are better able to adapt to changes in consumer demand In conclusion, optimizing a product's chances of success and gaining a competitive edge in the current fast-paced market landscape require a well-executed NPI process
East West Industries Vietnam (EWI) is a subsidiary of the US-based East West group EWI manufactures custom industrial, consumer, and retail products for both international and domestic customers with our in-house capabilities including electronic manufacturing services, injection molding, medical device manufacturing, tooling, packaging and assembly The NPI process is one of the most critical for a Contract Manufacturer (CM) as EWI I chose the topic "Controlling New Product Introduction to Mass Production
Project at East West Industries Vietnam: Case study of Wahoo KickR Move product" to gain a comprehensive understanding of the new product development project that can plan and manage any uncertainty that may arise during project phases To propose solutions to issues concerning the EWI Company's NPI using the specific case of Wahoo KickR Move.
Objective
- The thesis covers both of systematizing theory and practice of the process from NPI to MP in a project
- The report describes the current NPI condition of the specific Wahoo KickR Move project at EWI
- The author will also identify the strengths and weaknesses of planning & controlling project, provide some suggestions for improvement
- The report's goal is to give relevant insights and recommendations for improving the quality and effect of Wahoo KickR Move project from NPI to MP
- The study proposes a number of steps to enhance the effectiveness of the project in the NPI phase.
Scope
- Space scope: At East West Industries Vietnam LLC
- Research time: Information and data are updated until March 2024
- Research data: The report uses the company’s updated data in March of 2024 as the foundation for an overall assessment of project management, as well as offering recommendations and solutions to enhance the Company’s controlling process from NPI to
MP by Wahoo KickR Move product project The study is based on information gathered from the web search results.
Research method
The methods utilized in the report include:
- Observation method: Observing how the NPI team performs in the Company's NPI phase of Wahoo KickR Move product project
- Comparison method: Using this method to make comparison between actual and standard of NPI project management at EWI
- Analytical method: Analyzing reports on the Wahoo KickR Move product project management, from NPI to MP
- Information collecting method: Gathering information from papers and reports of the Manufacturing Division in general, and NPI in particular, in order to examine the situation of NPI project management at EWI.
Structure of report
The report is divided into three sections: introduction, content, and conclusion In specifically, the material is an in-depth research subject on the project management process from NPI to MP of Engineering Division in the Company with the specific case of Wahoo KickR Move product There are four chapters in the content:
Chapter 1: Introduction to East West Industries Vietnam Limited Liability
Chapter 3: Analysis and Evaluation of the Implementation of the Wahoo KickR
Move Project from New Product Introduction to Mass Production at East West Industries
Chapter 4: Promised Solutions to Enhance the Effectiveness of Wahoo KickR
Move Project Management Progress from New Product Introduction to Mass Production at EWI
INTRODUCTION TO EAST WEST INDUSTRIES VIETNAM
East West Industries Vietnam Company
1.1.1 Overview about East West Industries Vietnam
East West Industries Vietnam Company's official name is East West Industries Vietnam Limited Liability Company East West Industries (EWI) is a wholly-owned American factory located at Vietnam - Singapore Industrial Park II in Binh Duong Province EWI was founded in 2007 and is part of the East West Manufacturing group of firms, which has substantial sourcing and manufacturing experience in Asia EWI has in- house injection molding, stamping, and electromechanical assembly capabilities to offer fully integrated contract manufacturing to customers in the United States and Europe East West is a Domestic Offshore Manufacturing industry leader with a strong emphasis on quality goods, exceptional customer service, and a culture of continual progress
Address: No 21 Dan Chu Street, VSIP 2, Hoa Phu Ward, Thu Dau Mot City, Binh Duong Province, Viet Nam
Legal representative: Mr Klink Cornelius Hendricus Wilhelmus – General Director
Website: http://ewi.ewmfg.com/
According to information from the Company’s website, EWI’s vision is to make the world a better place – cleaner, safer, healthier and smarter
To deliver high-quality, cost-effective, and creative manufacturing solutions to customers that meet and exceed their expectations Reduced labor costs, reduced tooling costs, fewer quotas and possible tariff treatment, a more stable currency rate, similar freight costs, and supply-chain diversity are all advantages of having a product manufactured in EWI Vietnam EWI provides competitively priced turn-key product development and production capabilities, as well as comprehensive quality control
East West Industries Vietnam's working method is based on five core values:
Quality: Commitment to providing high-quality products and services that meet or exceed customer expectations
Customer service: Dedicated to providing excellent customer service and developing long-term connections with clients
Continuous improvement: Always searching for ways to enhance EWI's processes, products, and performance
Employee engagement: Value all of employees as EWI's greatest assets and foster a culture of teamwork, learning, and growth
Social responsibility: Aim to make the world a better place by promoting environmental, social, and ethical initiatives
1.1.2 The foundation and development process of East West Industries Vietnam
East West Industries Vietnam is a branch unit of the EWM group, which is based in the United States The first factory, located in the VSIP 2 in Binh Duong province, was opened in April 2008 In 2013, EWI expanded by building two additional facilities and launching the first SMT line In 2020, EWI established two additional manufacturing facilities, furthering their commitment to growth and improvement across all production departments Presently, the entire plant spans approximately 45.000 square meters Nearly 20.000 square meters of space are dedicated to the manufacture of electronic – electrical components, injection molds, assembly, tooling, warehouses, and offices EWI currently has a workforce of approximately 1.600 individuals, comprising both foreign and Vietnamese employees A significant number of our staff members have been part of the EWI family since its establishment in 2008, and they have evolved alongside the company over the years EWI is constantly growing through providing services of outstanding value to customers, creating an ideal working environment for employees and supporting the community at orphanages and schools As well as the use of solar energy - an important part of energy consumption For over 15 years, EWI has been dedicated to comprehensive innovation to enhance customer satisfaction
The milestone system for different technological techniques at EWI is as follows:
Injection Molding, Packing and Assembly - started production in 2008
ISO certification - achieved certification in 2012
Electronic Manufacturing Service - started production in 2013
East West Industries has a strong focus on design for manufacturing, quality inspection, supply chain and customer service Responding to domestic and international
7 customers such as: Diversitech, Wellington Drive Technologies, Wahoo Fitness, BK Technologies, etc For the last 15 years, EWI has committed to extensive enhancements aimed at improving customer satisfaction At the time of its inception, in 2008, East West was still a relatively small business investing in the Vietnamese market At that time, Vietnam was still considered a small and young country for foreign businesses But up to now, EWI has grown strongly and looks forward to a bright future and great opportunities will continue to come to EWI EWI will continue to upgrade, ready for continuous development
Figure 1.2 East West Industries Vietnam LLC
Business fields and products line
- EMS: PCBAs, electronic sub-assembly, engineered components, in-line testing
- Injection Molding: Production molds and quick turnaround prototype molds
- Medical Device Manufacturing: Plastics, metal, and electrical/ electronic assemblies and components
- Tooling: Mechanical parts, injection mold spare parts, injection molding tools and blow molding tools
- Assembly: Complex/ performance testing, retail ready packaging, multiple materials
Figure 1.4 Finished goods manufactured for Diversitech
Figure 1.5 Wahoo KickR Bike Shift produced by EWI
EWI Organization Chart
The following is the most recent corporate model as of November 2022:
Source Author's compilation from Human Resources Department
As can be seen from figure 1.7, the Organization Chart of East West Industries Vietnam is divided into two separate categories, one is owned by EWI and the other is owned by EW Because EWI is a subsidiary of East West group, EWI need to report to EWM in finance Besides that, It can be seen that EWI's organizational structure is very complex, with many different branches Therefore, this report will only explain major positions in the company And focusing on Engineering Department which is the key department in the NPI development process, is also the main resource of the project in this report
1.3.1 Functions and tasks of other departments:
General Director: A top executive in charge of all business operations inside their company They are responsible for formulating plans, employing and training personnel, monitoring procedures, managing business relationships, analyzing
11 finances, enforcing regulations, and promoting development They collaborate with senior management to develop long-term strategies and goals that uphold the company's core values and promote overall success
Manufacturing Division: is the component of the organization that is involved in the manufacturing of commodities or products This department take on all product-related tasks such as: operating production equipment and machines, designing and installing the manufacturing process, is in charge of turning raw resources into completed goods The manufacturing division's usual tasks and obligations consist of: Using manufacturing machinery, updating the equipment at the warehouse, putting machine pieces together, completing each manufacturing assignment by the deadline of shift, reporting on faulty equipment or items, monitoring stock levels and reporting product or raw material shortages, managing employees, developing and approving production schedules, etc
Quality Department: is in charge of ensuring that the goods and processes satisfy the requirements of the customers and industry standards They design quality measures, turn customer demands into specifications, implement and review methods for inspecting, testing, and assessing items and manufacturing machines, acquire, consolidate, and summarize data, and deliver reports in close coordination with other departments They also assist auditors and attend meetings and collaborate with stakeholders The quality department creates and prioritizes essential system and process modifications, determines and tracks supplier requirements for raw materials and intermediate products, and ensures compliance with legal requirements and health and safety laws
Supply Chain Department: is in responsibility of ensuring that items and services are delivered from the supplier to the client They are responsible for developing and implementing the company's supply chain strategy, obtaining and delivering goods for distribution and manufacturing, negotiating terms and agreements with vendors, contractors, suppliers, and customers, analyzing and reporting data and KPIs to identify problems, monitoring logistics and inventory, supervising staff,
12 finding cost-effective solutions for supply chain procedures, and ensuring the supply chain functions as intended
Facility Department: is responsible for creating and managing budgets for building technology, employee health and safety, environmental efforts, culture and social support, emergency and disaster mitigation and response, sustainability planning, business continuity planning, real estate management, space management, communications infrastructure, contract management, testing and inspections, and EHS (environment, health, and safety) is also in charge of the cleaning, security, gardening, and parking crews To summarize, the facilities department is responsible for ensuring that the organization's physical infrastructure is properly maintained in order to assist the attainment of the organization's goals
Human Resources Department: is in responsible of monitoring the employee life cycle procedures of hiring, onboarding, training, firing, and recruitment Human resources departments are also in charge of employee benefits, salary, and terminations The primary functions of an HR department include hiring and staffing, development and training, compensation and benefits, employee relations, legal compliance, and company image HR professionals typically like supporting others in their success and have strong interpersonal skills
IT Department: is responsible for various functions that help the company system run smoothly and efficiently They are in charge of managing and maintaining technology for the benefit of a company's technical components Infrastructure maintenance, general system operation, and management of the organization's technological systems are the three key areas of attention for the department The
IT department is responsible for: maintaining an organization's hardware and software systems by updating and configuring software, employee devices, servers, databases, and other IT infrastructure, providing IT administration assistance to both their own divisions and the company as a whole, providing technical support
13 to other employees who need access to the company's computer systems, organizing the firm's website and developing network backup plans
Program Management Department: within a firm, the program management department is in charge of managing several interconnected projects and making sure they are in line with appropriate plans and goals Planning and managing resources, keeping an eye on problems, risks, expenses, and deliverables, and corresponding with sponsors and stakeholders are all under the purview of the program manager The development of the program management plan and the execution of the program strategy are both overseen by the program manager The department's main duties: organizing and overseeing the program's resources, keeping an eye on problems, dangers, expenses, and outputs, interacting with sponsors and stakeholders, overseeing the development of the program strategy and the program management plan, etc The program management division is in charge of making sure that every task contributes to the overall aims and objectives of the business
1.3.2 Functions and tasks of Engineering Department:
Engineering Department is responsible for developing and implementing unique technologies and solutions to improve the production and quality of the company's goods and services They perform nearly all technical tasks during the product development phase, with NPI acting as the team's head throughout the project
There are functions and tasks of departments in Engineering Department:
Mechanical Engineering: plays a critical role in the development and implementation of novel technologies and solutions that improve the production and quality of the company's goods and services Some of the responsibilities include: developing new products and processes, serving as a technology leader and adviser, and so on They undertake DFM tasks for products, research and recommend the most optimal materials and designs for customers Mechanical engineers will be the ones who directly examine under the line during the sample
14 running process to check if there are any hassles impacting the cycle time of the product for improvement
Electronics Engineering: plays a significant role in developing and implementing technologies and solutions to assure the quality of the company's electronic goods Electronics Engineering mostly works on SMT goods in the plant They are responsible for developing, manufacturing, and maintaining electronic goods and systems that use devices and circuits They create electronic systems, do testing and debugging, and so on
Test Engineering: is responsible for ensuring that a system or product satisfies the demands of both the client and the company They collaborate with other departments to develop and execute tests that evaluate the system or product's performance, functionality, design, and quality They generate ideas for enhancing the system or product, as well as organize, execute, record, and report testing procedures (where automation technologies are available) Finally, a test engineer's responsibility is to ensure that a product is both high-quality and meets the needs of the customer
New Product Introduction: is in charge of the whole product development process, from concept to market The process of bringing a product from concept to market To ensure the quality, efficiency, and cost-effectiveness of product development and launch, the NPI department frequently works with related cross- functional team members NPI is recognized as the project's leader Managing, linking, and encouraging necessary teams to collaborate so that the project runs smoothly, and subsequently transferring the project to production for MP execution
Documentations and Systems: is in charge of developing, organizing, and administering the documentation and systems required for the company's operations and compliance It includes frequently asked questions, design options, architectural descriptions, program source code, and requirements documents The
Business Model Canvas of EWI
Figure 1.8 Business Model Canvas of EWI
This above model demonstrates the basic elements of East West Industries Viet
Nam, providing an overall of the business It supports the development of the company's business plan and strategy management
THEORETICAL FRAMEWORK
Overview about EWI New Product Introduction
East West Industries Vietnam LLC is a contract manufacturer (CM), which is a third- party maker of components or products for a business This is a form of outsourcing A corporation will often approach a CM with a design or product and request manufacturing price based on variables such as procedures, personnel, tooling, and material costs Using a CM can provide various advantages, including cost savings, quality, access to advanced expertise, and economies of scale However, there are drawbacks, such as a loss of control, a loss of flexibility and reactivity, and a reduced capacity to regulate quality In order to limited the shortcomings during development and production, CM must have a rigid, effective methodology in place NPI is one of the procedures that determines whether a project will succeed or fail It contributes to ensuring that the new product is of good quality and satisfies client expectations It also aids in the prevention of manufacturing process disturbances, which can result in production delays or even a total halt NPI process consists of multiple processes that identify, develop, and launch a new or enhanced product NPI process should be managed by a dedicated team or individual who has experience with bringing new products to market New Product Introduction Engineer is as project leaders, they are in charge of supervising the progress of connected teams, as well as encouraging and inspiring them and assuring the project's workflow The project will be successful if it runs on time and is moved from Mass Production to the production department with a high yield (>= 80%) At the end of the NPI transfer to MP, the appropriate information, papers, and equipment must be transferred to production Initially check whether the MP is running efficiently or if there are any problems; initially help the production department until the
This report will illustrate in detail the process of controlling Wahoo KickR Move project during the NPI phase at EWI Analyzing and evaluating the success of project before transferring to MP which means Wahoo can confidently release their product to the market
INPUT Customer MWER/ BOD ENGINEERING PURCHASING OUTPUT
Solution solved and re-submit RFQ
Manage project planning & coordinate team
Inspection report and testing record E-F-710-004
Pre-build meeting (NPR hand-off)
Submit PPAP to customer No
Work Instruction for internal calibration/valid ation tool-jig- fixture
- Cg, Cgk, Capability of Measurement Process
Q-F-823-004 Transferring new project from Engineering to Quality
Figure 2.1 Planning of Product Realization
Source Author's compilation from Engineering Department The above flow chart are representative of Planning of product realization at EWI Through this diagram, can visualize a procedure with many difficult steps NPI and related departments will begin taking charge after quotation approved The related department members will be assigned tasks Program Management (PM) department undertake information preparation and create project kick off meetings The individual that contacts and communicates directly with clients will be the PM Deliver information from customer to the relevant project teams Continue discussing about the topic and coming up with a plan Propose a strategy that is both practicable and fits the needs of the customer Come up with the most optimal plan and propose a plan to BOD Following the approval of the strategy, the product development phase will begin Tasks will be distributed to relevant teams And NPI will be the controller and manager, ensuring that the project runs smoothly and efficiently The goal of the project team is to come up with quality products with short lead time (LT) to satisfied customers
First Article Readiness Checklist & KPI
- Corrective and Preventive Action (CAPA)
Pilot Production Report for new project
Introduction to Project Management
A project is a collection of defined tasks, activities, and deliverables that are meticulously performed to achieve a certain goal They are short-term attempts to create value through innovative goods, services, and procedures Before achieving the final objective, each part of a project must pass through the phases of the project lifecycle This lifecycle enables project managers to successfully complete each step of their project It helps them to methodically organize each task and action, guaranteeing that a project is completed successfully Project is a unique undertaking with a beginning and an end; accomplished by people to satisfy set goals, schedule, and quality (Buchaanan and Boddy,
Here are some common characteristics of a project:
Project Life Cycles: is made up of four project stages: Concept, Design,
Cross Functional: A project brings together individuals from various departments and levels of seniority to collaborate over a specific time period
Unique: A specific product or service is developed
Risk and Uncertainty: The project involves both risk and uncertainty A risk-free element simply means that it is not visible on the surface and will be buried beneath
Conflict: Project conflict is a situation in which two or more parties disagree on the best way to attain a goal owing to differences in ideas, needs, and values
Table 2.1 Difference between Project and Functional Work
Life cycles Lasts long from year to year
High risk Stable work, low risk
The table above illustrates the differences between project and functional work Functional work refers to the daily normal activities that occur within an organization These tasks are necessary for the organization's continuing operations but are unrelated to specific projects In contrast, Project management is the process of planning, coordinating, and carrying out specified projects from start to finish within a certain timeline
According to the definition, a project has a clear beginning and end point and must satisfy certain goals In general, these objectives, which are frequently developed as part of the business case and put forth in the project brief, must meet three fundamental criteria:
1 The project must be completed on time
2 The project must be finished within budget
3 The project must fulfill the specified quality criteria
The project triangle (Fig 2.2) represents these criteria graphically Although some organizations use the term 'performance' instead of 'quality', the premise remains the same: the project's operational criteria must be satisfied
There are other official definitions of project management (e.g., BS 6079 and ISO 21,500), however the following definition includes all essential components The planning, monitoring, and control of all aspects of a project and the motivation of all those involved in it, in order to achieve the project objectives within agreed criteria of time, cost, and performance This definition incorporates time, cost, and performance requirements, but emphasizes motivation as the key management factor A successful project requires skilled and motivated participants to get a satisfying conclusion Methods, processes, and techniques, along with general management and people abilities, enable project managers to effectively satisfy schedule and performance/ quality goals Project management is a systematic method to planning and controlling projects It involves applying knowledge, skills, tools, and procedures to fulfill stakeholder demands during project operations
Organizations are increasingly focusing on project management due to several changes in the business environment: Growth of global markets, high quality product and customer satisfaction, increasing complex and technical products, shortened product life cycles, etc.
Schedule planning
Work Breakdown Structure is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables It organizes and defines the total scope of the project Each descending level represents an increasingly detailed definition of the project work The WBS is decomposed into work packages The deliverable orientation of the hierarchy includes both internal and external deliverables (Fahrenkrog et al., 2004)
WBS is a systematical work that breaks the project into smaller tasks with the aim:
To identify all the work of the project that needs to be done
To estimate resources, time, costs and technical requirements systematically
To assign specific responsibilities for each activity
WBS allows for more precise and efficient estimation of project duration and cost
It lets you to define and prioritize the project's important route and activities, allocate and optimize resources and budget, manage changes and risks, and report on the project's progress It also enables to track the actual expenditure against the estimates, implement corrective actions or contingency plans, and communicate performance indicators with Gantt charts, earned value analysis, or dashboards WBS can provide numerous benefits, including improved clarity and quality of project scope definition, improved collaboration and coordination among team members and stakeholders, reduced uncertainty and ambiguity in project estimates, and increased efficiency and effectiveness of project planning and management This is accomplished by defining roles and responsibilities for each work package, giving a more precise and realistic foundation for duration and cost estimates, and allowing the integration and alignment of project scope, schedule, and cost objectives
A duration estimate gives information on how long it will take to finish project activities It is an estimate of how much time a project task will take Duration estimates can be represented in a variety of time units, including hours, days, weeks, and months These estimates are based on expert assessment, historical data, and the task's complexity
It is critical to document all assumptions and supporting evidence used to validate the estimations Information required to estimate the time for each task:
The risks related to task
Activity sequencing in project management entails identifying the sequence in which tasks or activities should be completed in order to fulfill project goals efficiently By
25 carefully scheduling operations, project managers may maintain a seamless workflow, minimize delays, and optimize resource allocation, resulting in improved project schedule management In project management, the order in which activities are completed has a substantial influence on the overall success of a project By organizing operations in a logical and efficient manner, project managers may limit the likelihood of bottlenecks, identify critical paths, and guarantee that project milestones are met Activity sequencing aids in recognizing work relationships, allocating resources, and establishing the project timeframe It helps to manage the project scope, save expenses, and boost overall productivity
Gantt chart is a project management tool that illustrates work performed over time in relation to the time allotted for the activity It usually has two sections: the left side defines a list of tasks, and the right side comprises a timeline with scheduling bars that depict work Gantt Chart can additionally incorporate task start and finish dates, milestones, dependencies between tasks, and assignees
Project managers use Gantt Chart for three main reasons:
Build and manage a comprehensive project: Gantt Chart depict the project's building pieces and divide them into smaller, more manageable tasks The resulting little tasks, as well as dependencies between tasks, assignees, and milestones, are scheduled on the Gantt Chart's timeline
Determine task dependencies: Gantt Chart can be used to maintain track of a project's logistics Gantt Chart dependencies ensure that a new task can begin only after the previous task has been completed
Keep track of a project’s progress: Monitoring the status of projects and make improvements To track the progress of a project, Gantt chart can incorporate release dates, milestones, or other relevant indicators
Benefits of Gantt Chart (Pinto, 2013):
Allowing to update and control
Identifying and assigning resource to tasks
Network diagram is also called CPM (Critical Path Method) or PERT (Project Evaluation and Review Technique)
Developed in 1957, a network diagram was used to show the link between project activities
Initial applied in maintenance projects at DuPont Company
Helps project managers clearly see the relationship of the activities thereby controlling the project schedule better
There are two main types of network diagrams:
Activity on Arrow (AOA): The arrows indicate the activity and their starting and terminating points are represented by the nodes
Activity on Node (AON): The nodes in the graph represent the activities of the project, and the arrows show the relationship with the immediate predecessor
Cost planning
Cost planning is a crucial aspect of project management It entails identifying, planning, and tracking all expenditures incurred during the project's lifespan The major goal is to implement the project as affordably as possible while also assuring effective resource usage Successful cost planning may reduce financial risks and increase project profitability
Here are the key steps to create an effective cost management plan:
Resource planning: In this first stage, the cost manager evaluates the project's scope and specifications to identify the resources required Understanding the resource needs is vital for efficient cost assessment and budgeting
Cost estimation: Evaluate the needed resources and estimate the costs associated with each resource This includes both time-based costs (such as labor) and hard costs (such as materials or equipment)
Budget creation: Create a detailed project budget based on the projected expenditures The budget should cover all components, including labor, supplies, subcontractors, and any other pertinent costs
Cost control: Throughout the project, regularly evaluate and modify expenses to ensure they are in line with the agreed budget Cost control entails identifying areas in which costs exceed expectations and implementing remedial steps
Conceptual Estimate: These estimates have a low degree of accuracy (often ± 25%) and are intended for preliminary screening of potential projects
Feasibility Study: Estimates during feasibility studies are referred to as preliminary or comparative estimates Used to assess project feasibility Accuracy: ± 10%
Definitive Estimate: Also known as detailed estimate, project control estimate, quote, or tender Improved accuracy by ±5%
Figure 2.6 Sources of project cost
Figure 2.11 illustrates sources of project cost It includes: labor, materials, machines or equipment, and other cost:
Labor: are people with the knowledge and skills required to complete the project activities
Materials: any material supplies necessary to complete the project
Machines/ equipment: include all of the equipment required for the project crew to carry out project duties
Other cost: subcontractor, services, etc
Project cost estimating is the process of taking direct, indirect, and other forms of project costs into account and calculating a budget that fulfills the financial commitment required for a successful project To accomplish this, project managers and estimators employ a cost breakdown structure to calculate all project costs Project cost estimation is an important
30 step in the project planning process because it assists project managers in developing a project budget that covers the project costs required to meet the project's goals and objectives as established by executives and project stakeholders
Parameter estimation (regression analysis, learning curve)
Combine Top-Down and Bottom-up
Unable to anticipate input prices
Other reasons (natural disasters, risks)
Quality management plan
Completing a project on schedule and on budget is a significant accomplishment However, in project management, even if accomplish this feat, the win would be void if project outcomes do not fulfill the criteria, not meet quality requirement Project manager must understand how to manage quality and sustain it despite schedule, budget, and resource restrictions, which they will encounter throughout the project's execution Quality management aims to ensure the quality of products and output services of the project Quality control discovers and corrects flaws before providing a product or service to the final user Team members identify quality control measures throughout project preparation Quality control is an iterative process that saves time and resources while producing high- quality products and services
A quality management plan is a critical component for delivering a successful project to stakeholders However, a quality management strategy is useful for more than
31 simply one project Customers demand consistency, and having a plan in place to ensure high-quality production for whatever product or service you're producing will allow you to continuously meet their expectations Quality management is not exclusive to the project team When everyone in the organization understands the plan, efficiency improves While it is critical that everyone participating in the production process follows the quality management plan, familiarity with the plan increases productivity and establishes a shared goal that everyone understands When establishing a quality management plan, you first need to identify the important components These include the project deliverables and project methodology Must also decide on the quality standards that will be used to evaluate your deliveries, as well as the criteria for determining client satisfaction The quality management plan follows these steps:
Plan development of quality management plan
Execute the quality management plan
Control risks planning
Risk management comprises of four distinct steps:
Risk Identification: The process of identifying the precise risk variables that might fairly be predicted to harm your project
Analysis of probability and consiquences: Risk variables are assessed based on their probability and potential impact on the project
Risk mitigation strategies: Efforts made to reduce the impact of project- related risks
Control and document: Building knowledge for future projects based on lessons learnt
Risk management is an essential part of project management It promotes early detection, accurate assessment, and effective risk management to achieve goals and improve organizational performance
Sources of project risk: Technical risk, management risk, commercial risk, external risk
Risk identification techniques: Braimstorming meeting, expert opinion, history
Analysis of probability and consiquences:
ANALYSIS AND EVALUATION OF THE IMPLEMENTATION OF
Introduction to NPI project – Wahoo KickR Move product
The Wahoo KickR Move product project mentioned in the report is a project in the NPI phase at East West Industries Vietnam As previously mentioned, EWI is a contract manufacturing company that receives project contracts to develop and manufacture products as required And Wahoo is one of EWI's customer Wahoo KickR Move was one of the products researched and developed at EWI, at that stage called NPI After the NPI phase is successful, meeting Wahoo's requirements, it will be transfer to mass production and Wahoo will released to the market And this thesis will concentrate on NPI phase of Wahoo KickR Move product project
EWI received project charter from Wahoo, that captures the project scope and requirements of customer Here is some information and requirements of the project:
About product: The KickR Move is an indoor bike trainer that provides a new unique function (swings to front and back)
NPI phase (project) start: December 2022
Production phase start expectation in: August 2023
Figure 3.2 Wahoo KickR Move NPI project team
The above figure shows the project team of Wahoo KickR Move NPI project This project belongs to NPI phase, so it will be managed by NPI team – leader for project In terms of cost management and direct communication with customer will be handled by the
PM team And other departments involved in the Wahoo KickR Move project are: sourcing, quality, SMT, assembly, injection, mechanical engineering, electronic engineering, testing engineering, document control center.
Schedule planning for Wahoo KickR Move NPI project
3.2.1 WBS of Wahoo KickR Move NPI project:
SC Quality SMT Assembly INJ ME EE TE DCC
Figure 3.3 Work Breakdown Structure of Wahoo KickR Move NPI project
The above hierarchy illustrates a systematical work of Wahoo KickR Move project in
NPI phase It provides us with a comprehensive picture of what we need to accomplish during the project The NPI phase will begin once the program manager has kicked off the project
Product design: When the NPI phase begins, product design will be implemented DW/ AW and BOM will be released by customer Customers frequently delay the release of documents This is gating for DFM and PEG process After all documents have been released, the project engineer will proceed to DFM, submit it to the customer, and seek approval from customer
With packaging, EWI will design based on customer request and submit it to customer to get approval After that, EWI will send the design to the vendor for packaging production and will validate when the vendor completes the packaging
Wahoo KickR Move NPI project
Tester PO/ PCBA golden sample received
Material readiness: After receiving project information and BOM, materials will be prepared by Sourcing team Materials require RoHS and CoC certification as required by Wahoo KickR Move is a complex product, thus materials for PCBA or mechanical require a long lead-time (LLT)
Equipment/ Tooling readiness: This stage will include preparing plastic tooling, PCBA tooling, fixture and machinery
- Plastic tooling: ME will submit PEG to Wahoo and get approval After that, plastic tooling will be designed and plastic tooling fabrication finished Gating for plastic tooling LT is customer approval
- PCBA tooling: Customer will release PO to EWI and EE start to proceed to do PCBA tooling Wahoo's delay in releasing the PO will effects the completion time schedule for the PCBA tooling
- Other fixtures/ equipment: Tooling fixtures/ Jig will be prepared by Assembly team ME will investigate and recommend customer to purchase the essential machinery and equipment for the KickR Move product development project
- Tester: After receiving PO and PCBA golden sample from Wahoo, TE will proceed to build FCT, ICT and FRT
Sample build: After getting ready, EWI will start building the sample for the project
- DVT: EWI will build 30 samples to validate the design of Wahoo KickR Move product Applying all testing method on product such as: salt spray test, EOL & life-cycle tests, drop-test for packaging EWI will ship the DVT sample to Wahoo to get approval Frozen changes in product design and materials
- PVT: After success with DVT build, EWI will proceed to PVT to validate a production line PVT has ramp up plan with yield improve And shipping PVT sample to get approval to transfer MP The stage’s goal is transferred to
MP with high yield (>= 80-90%) and must definitely be according to the schedule
MP transfer: NPI project team needs to prepare all the documents to transfer to
Mass Production Review all the issues occurred in NPI phases need to improve in mass production And closing Wahoo KickR Move NPI project
3.2.2 Duration estimation for Wahoo KickR Move NPI project:
Table 3.1 Duration estimation for Wahoo KickR Move NPI project
3.4.1 Tester PO/ PCBA golden sample received 14
The table above represents the duration estimation of Wahoo KickR Move NPI project Duration information of tasks based on standard lead-time data of the Engineering department of EWI NPI Engineer relied on it to plan the initial schedule for this project The data for NPI project standard Lead-time is collected based on information from historical projects and company resources, capacity
3.2.3 Sequence activities for Wahoo KickR Move NPI project:
Table 3.2 Sequence activities for Wahoo KickR Move NPI project
The table above depicts the sequence of tasks in the Wahoo KickR Move NPI project This shows that some vital activities can become risks/ gatings that have a significant impact on the project's LT
3.2.4 Gantt chart of Wahoo KickR Move NPI project:
Figure 3.4 Gantt chart of Wahoo KickR Move NPI project
The figure above is the gantt chart of Wahoo KickR Move NPI project, which shows the project’ tasks over time It can be seen that the project planning duration according to schedule planning is 152 days, calculated on working time (not include national holidays)
Besides, it also shows the PIC of each activity in the project, except for the NPI team because the NPI team at EWI will be in charge of managing the entire progress of the project, balancing the teams in the project team to achieve the best results Two pannel in the Gantt chart show task information:
The left pannel shows name of tasks, duration, scheduled start, scheduled finish,
The righ pannel shows a chart with a baseline and planned Gantt bar for each task, along with a depiction of the tasks Its also illustrates a critical path of project which identify key task can effect to project duration
3.2.5 Network diagram of Wahoo KickR Move NPI project:
Figure 3.5 Network Diagram of Wahoo KickR Move NPI project
Figure 3.5 illustrates network diagram of Wahoo KickR Move NPI project Critical path can be easily seen, highlighted in red.
Cost planning for Wahoo KickR Move NPI project
Wahoo KickR Move NPI project is applying definitive estimate because this is project in NPI phase This project starts after Wahoo approves quotation and PM kick off project
Therefore, EWI needs to do detailed estimate for cost planning to quote for customer For all NPI projects in EWI, EWI will quote the project price and add 20% of the project cost to backup
3.3.1 Estimation cost for Wahoo KickR Move NPI project:
Table 3.3 Estimation cost for Wahoo KickR Move NPI project
Resource Quantity Unit Unit cost ($) Total ($)
Copper coil winding machine 1 Machine 4320 4320
Life-cycle testing machine 2 Machine 2500 5000
Total estimation cost for Wahoo KickR Move NPI project 80000
The above table figures out a total estimation cost for Wahoo KickR Move NPI project The cost of each resource is shown in a table with the quantity and unit price estimated to be used in this project
Figure 3.6 Applied Top-Down estimation technique to project
The above hierarchy shows the cost estimation of Wahoo KickR Move NPI project by top-down estimation technique Because it is difficult to forecast the unit price of resource, this technique was chosen From the use of that technique, it is possible to predict the cost for each stage of the project The graph shows an estimated total cost for the project of
$80.000, of which: Costs in the product design account for 12,2%; cost for material is 12,5%; the highest cost is the cost of preparing equipment/ tooling, accounting for 71,2%; and the rest of the cost is sample build costs, 4,1%
3.3.2 Creating budget for Wahoo KickR Move NPI project:
Table 3.4 Activity-based Wahoo KickR Move NPI project budget
The table above shows the breakdown of project's estimated costs by activity
Table 3.5 Time-phased budget of Wahoo KickR Move NPI Project
Figure 3.7 Time-phased budget of Wahoo KickR Move NPI Project
Quality planning for Wahoo KickR Move NPI project
The below figure shows the quality management planning for Wahoo KickR Move project Through 3 processes:
- Need to get Wahoo approval for all steps: Wahoo is EWI’s customer with Wahoo KickR Move project Therefore, all steps need to be approved by Wahoo
- IP, compliant requirement released by Wahoo: Wahoo needs to issue IPs to EWI for Quality Engineers to follow to evaluate the standard and need to release compliant requirements to follow for required certificates
- Quality standard (material, design, ) released by Wahoo: All quality requirements require Wahoo confirmation, and EWI must review both internally and externally
- Control project by PFD, CP, PFMEA: Analyze the impacts related to the project, thereby giving directions to overcome
Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23
- IQC inspects all incoming materials: Manage quality from the input stage
- Validate internal for packaging, machine, injection molding, PCBA, : EWI will conduct internal validation at all steps, not just when requested by Wahoo
- Send report validation for Wahoo: Dimension result report, checking aids report,
- Quality assurance of production line: IPQC engineer and OQC engineer will inspect product
- Having DVT & PVT phase: Using both validation testing for design and production
- Having life-cycle testing, EOL testing, noise testing to validate sample: Using testing machines to control quality of Wahoo KickR Move product
- Applied salt spray testing, fatigue testing, on product
Figure 3.8 Quality management planning for Wahoo KickR Move NPI project
• Need to get Wahoo approval for all steps
• IP, compliants requirement released by Wahoo
(for material, design, ) released by Wahoo
• IQC inspects all incoming materials
• Validate internal for packaging, machine, injection molding, PCBA,
• Send report validation for Wahoo
• Quality assurance of production line
• Having life-cycle testing, EOL testing, noise testing to validate sample
• Applied salt spray testing, fatigue testing, on product
Control risks planning for Wahoo KickR Move NPI project
Table 3.6 Risk rating assessment for Wahoo KickR Move NPI project
Potential risk Probability Impact Risk factor
High (Rf>0,4), medium (0,1-0,4), low (Rf