"In terms of cost, mass and BoM–CAD alignment, we are miles and miles ahead of any other Programme at this stage, and the difference is we have QR_ running PDM." - UK Director.
Case study: Prototype BoM validation and process support
Prototype builds are the moment of truth as complex engineering programmes transition from design to line. Getting the BoM accurate and keeping it up to date is critical for ensuring part availability and tooling accuracy.
QR_ was selected by a high profile vehicle manufacturer to analyse and identify shortfalls within a prototype BoM and provide process support to unlock a step-change in operational performance.
Case study: Prototype BoM validation and process support
Our client, a multinational vehicle manufacturer, approached us to help eliminate BoM errors and improve inefficient processes leading to costly stalls in production.
Before QR_’s involvement, the client was averaging 75% part availability on MRD for their prototype builds. This led to late vehicle delivery, late vehicle testing, and ultimately, delays to production start. With 57% of in-build changes traced back to BoM errors, it was clear that developing and implementing improved BoM validation processes would be the key to solving these challenges.
1. Challenge
With poor control of change management in the prototype BoM leading to limited validation ahead of material spend, there was little confidence in the BoM and the data fed into it. Consequently, the programme experienced high material costs, with prototype multipliers paying for parts to meet build timing. In addition to these BoM errors and inaccuracies, with no centralised way to raise and review supplier issues, poor supplier engagement regarding prototype build timing and scope also impeded operations. Knowing that the solution lay in BoM excellence to enhance production efficiency, QR_ sought to develop tools and methods that would do just that.
2. Approach
QR_ took a mixed methodology approach to improving processes and developing a robust BoM system. First was the development of tactical BoM validation support. This would create a confirmation event, where the BoM could then be validated with the client’s engineering and testing departments to ensure correct orders. To enhance efficiency further, QR_ developed bespoke tools to automate aspects of BoM validation, introduced new sign-off processes, and additionally developed a toolset to prioritise material cost negotiation based on saving opportunity size.
3. Outcome
QR_'s approach is already showing value for the client, evidenced by every programme achieving >95% part availability compared to ~75% in 2017. Moreover, there has also been a significant reduction in material costs, with the client reporting a 20% reduction in average prototype material spend - the equivalent of $21M in 2018 and 2019 combined. Lastly, as a consequence of the bespoke suite of tools QR_ created to automate BoM validation and improve reporting, the client has greater insight into timing and part availability, leading to better informed, data-enabled decision decision-making.
4. Feedback
"In terms of cost, mass and BoM–CAD alignment, we are miles and miles ahead of any other Programme at this stage, and the difference is we have QR_ running PDM." - UK Director.