design for innovation in manufacturing (dfim)

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved Presenter: Richard Platt [Formerly] Intel - Global Innovation PM & Senior Instructor for Innovation Methods [Currently] The Strategy + Innovation Group LLC – Principal DFIM (Design For Innovation in Manufacturing™) & “Innovation Agility” Methods Next Generation Best Practices in New Product Development

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Design For Innovation in Manufacturing (DFIM) and Innovation Agility Overview

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Page 1: Design For Innovation in Manufacturing (DFIM)

The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

11

Presenter:Richard Platt

[Formerly] Intel - Global Innovation PM & Senior Instructor for Innovation Methods[Currently] The Strategy + Innovation Group LLC – Principal

DFIM™

(Design For Innovation in Manufacturing™) &

“Innovation Agility”™

Methods

Next Generation Best Practices in

New Product Development

Page 2: Design For Innovation in Manufacturing (DFIM)

The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Agenda OverviewIssues: The Data and Why

The Solution: Renewal NOT Revolution

A Modified Framework for Action

Case Study: Application

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

The Cost of NOT Managing Variation

Product Life Cycle

$Engineering

Change Notification [in $1000’s]

Drawing

Design

Ve

rifica

tion

Prot

otyp

e

Prod

uctio

n

Field

Reca

ll

Exponential Cost Growth

Proactive Vs Reactive

11

1010

100100

Source: Confidential

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Project Efficiency vs. Effectiveness

Want to be Here

Page 5: Design For Innovation in Manufacturing (DFIM)

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Designed inQuality

Problems70-80%

ManufacturingDefects 20-30%

The Engineering Functions Have the Biggest Opportunity To Reduce Quality Problems and Achieve the Lowest Costs

Through the Application of DFSS

Relative Cost and/or Difficulty to Correct a Problem

Concept Design Prototyping Production

Rel

ativ

e C

ost

Most Problems Are Designed In

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

30%

15%

50%

5%

5%5%Overhead

Labor

Material

Design

70%

20%

CostInfluence

ActualCost

DFSS Leverage In Product Design

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

What Methods Enable an Increase in Speed and Growth?

New Product Development (NPD) investments should impact:

Speed to marketProfitability

Accelerating NPDStudy of 233 Manufacturing firms9 different NPD Acceleration approaches

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Pioneers have emphasis on either speed or profitability, NPD teams must choose their approach carefully if pioneering

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2

-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1

Speed Beta

Prof

itabi

lity

Bet

a

SCI LUI AST DFA TRE SST XFC VOC SOS

Bureaucratic structures can’t get speed

Matrixed groups help but still won’t overcome internal politics

which slows speed

Listening to the customer / user is both speedy and more profitable

No structure for innovation, reduced

profitability

Anything that increases speed

is goodness

Increase speed of supplier responseBureaucratic structures

can’t get speed

The Missed Opportunity

Key Results: Pioneers and Market Creators

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

How These Tools Compress Costs or Shorten Innovation Cycles

CE: Concurrent Engineering, tears down the wall between design and manufacturing, enabling effective communication, even if the design team is external to the manufacturing group

DFM/A: Product and Process cost reductions

Lean: Process cost reductions

Six Sigma / DFSS: Focus on the right problems to solve, design in more value to the customer, statistical design employed for more predictable quality, performance and reliability

Systematic Innovation Methods / TRIZ: Solves the tough problems, the contradictions that no one else has solved, leaping up the S-curve or across to another s-curve altogether

Rapid Prototyping: Check your hypothesis’ / concept during NPI, and sort out via testing and Lead User Involvement

Lead User Involvement: Initial feedback on early product performance

Customer Emphasis (VOC / MOC): Know this information and you setup your testing during the NPI phase to proactively address potential opportunities

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Limits of Continuous Improvement Methods as Core Competencies

Commoditization of Product and Services is a constant downward pressure in most businesses

Continued High Risk when your company and your competitors have stable, repeatable and reliable mfg processes

Lowest Cost to produce is still an issue, margins at risk

New product features / functionality needed to maintain profitability, which may be outside of current mfg envelope

Differentiation between different company’s products by being a customer facing advocate in design

Effective and typical strategy, BUT NOT a long term competitive advantage, assuming most competitors do the same, or just copy your features

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Increasing product performance and lower cost to produce# of innovations

TimeLow

High

DemandDriven

CostDriven

Product Innovation curve

Process Innovation curve

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Getting In Front of Your Competitors# of

innovations

TimeLow

HighDemandDriven Cost

Driven

Product Innovation curve

Process Innovation curve

Pulling-In the development of the Process Innovation curve to coincide with the Product Innovation Curve increases margin sooner, TTP, shortens TTM, and lowers product cost with greater performance, reliability, and functionality than competitors products or processes that don’t use this methodology

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

The Big Unspoken Issue for Corporate Managers

Risk and Uncertainty Still ReignCost RiskMarket Adoption / Acceptance RiskTechnology RiskManufacturing RiskDesign RiskTest RiskIntegration RiskRisk De Jour……

CONCLUSION: Decision Making MUST be driven to the lowest level, and held accountable for managing the risk and uncertainty

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Impact of Corp. InfrastructureCorporate Infrastructure the Impact on Speed, Effectiveness &

Efficiency is degraded, since it:Slows Down Speed of decision makingBuilds in Inefficiencies hamper significant process improvementsLowers the Effectiveness of Innovation management

Corporation’s Typically are NOT setup to Integrate or Effectively Exploit Innovation Opportunities

Even profitable ideas don’t make the cutPolitical element enters into decision making (away from data driven decision making – not focused on ROI of current resources)Inadequate / Insufficient / No resourcing or Training Momentum and Speed of implementation slowed or stoppedSiloed efforts (not-holistic)

RESULT: Few new Strategies to enable corporation into new markets and profitability, bureaucracy rules, if the top people, or the processes used in the middle are allowed to prevail in maintaining the “status quo”

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Risks and Issues SummarizedVariation between Design intent, the limitations of manufacturing process envelope and the actual result (output = quality and reliability) is an exponential cost over timeIndividual Project Effectiveness and Efficiency is a balancing act, that directly impacts speed and profitabilityProblems that show up in the field are ‘designed in’ and the cost contribution is exponential in impactContinuous Improvement Methods provide benefit, assuming effective cultural integration / use (Pioneer vs. Market Creator)Continuous Improvement Methods lose competitive value over timeCoinciding Product and Process Innovation Life Cycles is still “Undiscovered Country”Risk and Uncertainty still reigns, continuous improvement or innovation methods DO NOT fundamentally address this significant gapCorporate infrastructures and it’s intrinsic decision making, negatively impacts selection of innovative concepts, starving beneficial projects of needing funding

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Are You Overwhelmed Yet?

If You Aren’t, Then…

YOU ARE NOT PAYING ATTENTION

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Sane Responses to the Economic and Competitive Challenges

Invest in cutting-edge product, capabilities, and technology initiatives that enhance market share and market cap.

Deliver products that consistently meet customer, regulatory, and environmental demands

Translate intellectual property into revenue generating products quickly.

Monetization of patents is the key metric for measuring return on innovation.

The Usual Response; “Yeah But…How?”

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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What is Needed Is….Business and Engineering Processes needs a Renewal NOT a Revolution- build on strengths that are (for most anyway)

This is not about cultural change that many make the mistake on, it is about augmenting the product and process engineering teams with what they already know.

Current Economic conditions dictate need for an agility framework to overcome the tradeoff of speed, efficiency, accuracy and effectiveness tying in only the necessary methods of Lean, TQM, 6 Sigma, Systematic Innovation Methods, and any other relevant methods that achieve near term results.

Deployed in a fashion that does not overwhelm the receiving organization. Not a complete Lean, 6 Sigma, or Systematic Innovation deployment but a phased-in approach

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Risks and Issues AddressedReturn on Assets (ROA) management of current BU staff, resources and processes used to achieve results is a MUST do. (ROI of what you have now)Agile Innovation™ methods streamline the NPI process, “debugging” design and manufacturing issues. Combining Lean, TQM, 6-sigma and systematic-innovation methods breaks the tradeoff between Project effectiveness and efficiency Problems showing up in the field are better addressed real time when using stage gate After Action Reviews w/ team members during NPI phases, creating solutions to gaps in the rapid proto-typing phase and regression analysis testingVirtual Prototyping Tools MUST be used to “test” limits of the manufacturing envelope and then drive manufacturing and design engineering work as neededContinuous Improvement Methods MUST be applied intelligently based on the type of volume and variability of your business. Rapid Prototyping of new concepts is a MUST do in the virtual space + involving Lead Users (LUI) getting critical feedback to improve product before market release. Managing Risk and Uncertainty MUST be managed at the point of occurrence, at the engineering level; rapid proto-typing in the virtual space, and communication feedback loops by key team members is required for effective managementBU management, 1-2 layers above design and manufacturing teams are REQUIRED to be involved in the strategic play of the team, (maximizing resource utilization)Review and accountability at the BU level of projects and programs, then feeds Corporate goals and directives. BU management provides “air cover”, not “duck and cover”

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Manufacturing: Cost Center or “Competitive Weapon”?

Common viewpoint of Manufacturing is that it is cost center, however…

Both Dell and Intel have demonstrated the advantage of “manufacturing and design excellence” as a “competitive weapon”. [author’s experience]

In the case of BMW turning manufacturing into a profit center. [author’s research]

Specifically it has been repeatedly demonstrated that using DFM/A tools are used as Rapid Prototyping tools, enabling manufacturing and design to work effectively, shortening the time to market and lowering product risk and uncertainty. [author’s experience]

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Implicit Guidance & Control

Know what to do

Act

And be able to do it

Unfolding Interaction

With Environment

Action (Test)

Feedback

Decide

Decision (Hypothesis)

Feed Forward

Feed Forward

Feedback

While learning from the

experience

The O-O-D-A “Loop” An Agility Framework

Observe Orient

Feed

ForwardObservations

Unfolding Circumstances

Outside Information

Unfolding Interaction

With Environment

Quickly understand

what’s going on

Implicit Guidance & Control

Cultural Traditions

Genetic Heritage

New Information Previous

Experience

Analyses & Synthesis

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Tying It Together - Observe

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The Strategy + Innovation Group LLC | Author: Richard Platt

OODA 

Phase OODA aspectDFSS or Lean 

Tool Key PurposeDFSS or Lean 

Phasekey concepts taught or level of 

depth

Observe Unfolding 

Circumstances

Environmental 

Scan & Takt Time 

/ Cycle time

Check external 

environments, 

likely demand

Concept 

Development & 

Set‐Up

Measure competing alternatives, 

watch for changes.  What is the 

necessary cycle time to keep up with 

demand? Concepts only…

Outside 

Information

Measurement 

Systems & 

Process 

Capability 

Analysis

Separate real 

signal data from 

Measurement 

Error .  Are we 

capable of hitting 

the targets?

Concept 

Development

Measurement error vs

reality, 

sample size, probability theory.  

Variation, mean versus Targets.  Z‐

Score, Cpk

Outside 

Information SWOT Analysis Competitive 

AnalysisConcept 

Development

Align strengths with opportunities, 

Mitigate weaknesses aligned to 

threats

Implicit Guidance 

and ControlSPC & Control 

/Reaction Plans

Actions planned 

when key metric 

exceeds action 

limits.. Test for 

acceptable 

variation

Control Phase common vs

special cause, choose 

right reaction!

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Tying It Together - Orient

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The Strategy + Innovation Group LLC | Author: Richard Platt

OODA Phase OODA aspect DFSS or Lean Tool Key PurposeDFSS or Lean 

Phase key concepts taught or level of depth

Orient Analysis/Synthesis DFMA & 5S

Analyze key product 

or service for 

complexity and 

reduce it.  Orient 

work areas

Design/Analyze

Simplify to key value propositions, list 

them always! Create ordered & 

appropriate work areas, only what is 

needed

Analysis DFMEA

Analyze potential 

product/service risks 

and plan course of 

action

Design/Analyze id & prioritize risks, work to reduce/ 

eliminate causes, effects (by redesign)

Analysis Reliability AnalysisAnalyze long term 

conformance 

potentialDesign/Analyze

This is a determination of robustness 

looking for a competitive edge over 

alternatives (competition)

SynthesisRegression & 

ANOVA Model 

Building

Update expand 

model between 

continuous & 

discrete variables

Design/Analyze

Y=f(x) power of knowledge, taught only 

at a concept level, most engineers know 

this already.  batch to batch variability, 

quick ID of special cause batches

Synthesis DOE & Reliability 

Model Building

Model 

Building/Testing, 

Model long term 

conformance

Design/Analyze

Just teach concepts of Sequential DOE, 

RSM DOE to find optimums or sweet 

spots in the processes / products…

quick 

finds for operating and destruct limits

Synthesis Critical Parameter 

MgmtStore and categorize 

system relationships Design/Analyze Introduction and show them Cockpit by 

Cognition software

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Tying It Together - Decide

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The Strategy + Innovation Group LLC | Author: Richard Platt

OODA 

Phase OODA aspect

DFSS or 

Lean Tool Key Purpose

DFSS or Lean 

Phase

key concepts taught or 

level of depth

Decide Hypothesis 

Test

SPC & 

Confidence 

Intervals

Range of 

acceptable 

variation

Design/Analyze

common vs

special 

cause, choose right 

reaction!  probability 

theory, 67% vs

95% vs

99.7%

Hypothesis 

Test

Hypothesis 

Testing ‐

Tools 

(ANOVA, 

Regression, 

Chi‐Square)

Are Means 

equal ?  Is 

slope non‐

zero between 

two 

variables? 

Are Discrete 

variables 

independent?

Design/Analyze

Tests of significance, 

probability of being 

right when deciding.  

Probablistic

Decision 

Making.

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Tying It Together - Act

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The Strategy + Innovation Group LLC | Author: Richard Platt

OODA 

Phase OODA aspect

DFSS or Lean 

Tool Key Purpose

DFSS or Lean 

Phase

key concepts taught or level of 

depth

Act ImplementCell design & 

Monument 

Management

Re‐Set for 

maximum value Improve

Cell Designs, pods, efficient supply 

lines, re‐supply, dealing with 

unmovable items

Implement Standard Work 

& Kan Ban 

Set‐up & Pull 

value as needed Improve Limits wasted inventory, WIP, etc

Implement SMED & OEE

Shrink 

changeover 

downtimes & 

Optimize Uptime

Improve

Mass customization isn't possible 

without these tools.  The more 

flexible you want to be, the more 

changeovers you need…

Keeping 

production machinery at 

maximum or needed uptimes

Action/Test

DOE, Robust 

Design, 

Reliability 

Testing

Test for input‐

output 

Relationships, 

Durability, Long 

Term Durability

Optimize/Verify

In detail but only if they need it.  

Many companies have in‐house 

DOE courses, tied to rel. Model 

Building, find operating and 

destruct limits relative to 

competition

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Key Points:

When you’re doing OODA “loops” right, accuracy and speed improve together; they don’t trade off.

A primary function of management is to build an organization that gets better and better at these things.

Key Points:

When you’re doing OODA “loops” right, accuracy and speed improve together; they don’t trade off.

A primary function of management is to build an organization that gets better and better at these things.

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

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Design For Innovation in Manufacturing (DFIM) Case Study:

Integrated System Level Solution: Embedded Silicon within a Rigid Heat-pipe Core

Technology

Richard Platt[Former] SAL (Server Architecture Lab)

Technology Development Program Manager For Server Board & System’s Technology

All Logo’s and Trademarks are the property of their respective owners

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

DFIM Case Study ExampleBackground and TrendsA Practical Method for Designing For Innovation in

Manufacturing (DFIM)Step 1: Issues, Contradictions & Principles

Use DMASI or Template (available w/ proceedings)

Step 2: ”Game Changing” Concept Selection Rapid Proto-Typing Tools Validating Concepts

Step 3: S-Curve & TESE Crossing the Chasm and Moving Up the S-Curve

Step 4: Trends of Evolution AnalysisComparing Competing Engineering Systems

Step 5: Patent Strength AnalysisDetermining Next Steps in development

Step 6: Patent Level AnalysisDetermine the Level of contribution to the State of the Art

Summary Conclusion and Q & A

OurFocusToday

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

The Law of Ideality in Action

1/1,000,000 the size; 1/10,000,000 the weight1/1,000,000 the cost10,000,000 X the performance and reliability

10,000x the performance of a $1M mainframe in a

$1K desktop in 45 years

Clear Functionality Clear Functionality and Performance and Performance increasesincreases

Courtesy of Intel

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Computational Power

Courtesy of Hans Moravec

“Moore’s Law”

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Moore’s Law & the Law of IdealityS-Curves are located at every process change & successive generation (from 200mm to 300mm

wafers, from 1.0u to 0.8u, and so on)MIPSMIPS

Pentium® ProProcessor

Pentium® IIProcessor

Pentium® IIIProcessor

Pentium® 4Processor

Intel386TM DX Microprocessor

Intel486TM DX CPU Microprocessor

1

10

100

1000

10000

1985 1989 1993 1995 1997 1999 2001

MIPS

$/MIPS$/MIPS

0.01

0.1

1

10

100

$/MIPS

Silicon Technology

1.5µ

1.0µ0.8µ

0.6µ

0.4µ0.25µ

0.18µ0.13µ

Pentium®

Processor

Courtesy of Intel

“Moore’s Law” correlates to the ‘Law of Ideality’ in TRIZ; Law of Ideality = All engineering systems, evolve over time, providing greater performance, functionality and benefit at lower cost and have less

detrimental or negative aspects as a part of their design and manufacture.

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

The Way of Innovation

Step 1: Identify Your Gaps and Solve

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Technology Trend Drivers#1 TREND: The Increasing # of I/O in Intel

Architecture; according to “Moore’s Law” which states that the # of transistors doubles on silicon devices every 18-24 months.

This trend is driving the need for a enabling technologies to be developed for the individual device, (i.e. wafer level), as well as at the component level, board level and system levels to address the scaling challenges.

INVENTIVE SOLUTION NEEDED TO ADDRESS:Increasing complexity & decrease in size vs. Thermal management and Manufacturability

(I): Device Complexity vs. (W): Use of energy by stationary ObjectAnd(I): Area of Stationary Object vs. (W): Object Generated Harmful

Factors

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Technology Trends Driving the Market#2 TREND: With the increase in the # of I/O in IA; there are

greater demands for more power for supporting the devices, especially in the Server and Desktop product spaces (inventor’s background), as well as in the mobile and networking product spaces.INVENTIVE SOLUTION NEEDED TO ADDRESS:

Increase in speed vs. Increased need to dissipate thermal energy(I): Speed vs. (W): Temperature

Increase in thermal energy dissipation vs. small volumetric area.(I): Use of energy by a Stationary Object vs. (W): Area of Stationary Object

#3 TREND: With the increase in the # of I/O in IA; the pitch of I/O balls both from die-to-package and package-to-board is shrinkingINVENTIVE SOLUTION NEEDED TO ADDRESS:

Decrease in size vs. Manufacturability(I): Area of Stationary Object vs. (W): Manufacturing Precision or Ease of

Manufacture(I): Quantity of a substance vs. (W): Ease of Manufacture or Manufacturing

Precision

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Getting Over the LimitationsStep 1: Contradictions and Principles = Solutions Do the one thing that

other typical companies can’t do, solve the contradictions, generate concepts, and then rapid prototype the concepts in the virtual space

Systematic Innovation – http://www.systematic-innovation.com/

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Step 1: 1st Set of Contradictions Defined

All Logo’s and Trademarks are the property of their respective ownersMatrix+® Software | www.systematic-innovation.com

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Step 1: 1st Set of Principles Suggested

All Logo’s and Trademarks are the property of their respective ownersMatrix+® Software | www.systematic-innovation.com

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Step 1(cont.) : 2nd Set of Contradictions Defined

All Logo’s and Trademarks are the property of their respective ownersMatrix+® Software | www.systematic-innovation.com

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Step 1(cont.) : 2nd Set of Principles Suggested

All Logo’s and Trademarks are the property of their respective ownersMatrix+® Software | www.systematic-innovation.com

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Step 1(cont.): 3rd Set of Contradictions Defined

All Logo’s and Trademarks are the property of their respective ownersMatrix+® Software | www.systematic-innovation.com

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Step 1(cont.) : 3rd Set of Principles Suggested

All Logo’s and Trademarks are the property of their respective ownersMatrix+® Software | www.systematic-innovation.com

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

略法The Way of Strategy

Step 2: “Game Changing” Concept Selection

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The Strategy + Innovation Group LLC | Author: Richard Platt | All Rights Reserved

Companies Use DFM&A to Achieve 4 Main Goals:

1. Improve their products while reducing cost. Simplifying their products, improve quality, reduce manufacturing and assembly costs, and quantify improvements.

2. Increase competitive advantage. They study competitive products, determine quality and quantify manufacturing and assembly difficulties, and create superior products.

3. Hold suppliers accountable. They use DFMA as a “should-cost” tool to predict costs, analyze and discuss supplier bids, and hold outside suppliers to best practices.

4. Utilize their DFM / A tools as Virtual Rapid-Prototyping Tools. By taking a slightly more aggressive angle on these tools they challenge their own notions of what works, what doesn’t, and where the design actually breaks the mfg / design envelope.

CRITICAL Note: You can redefine the capabilities of a mfg envelope. But you can only properly evaluate the envelope’s capability by purposefully and consciously breaking the DFM & A rules.

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The Value Add of a VPT (Virtual Proto-Typing) Tool

"Customers often ask ‘what value does a re-work have for me’, ‘what costs can it save me to follow the findings of your analysis’

Three different categories:1. Critical - Impacts product reliability/cost significantly2. Recommended - Impacts product cost 3. Design Improvement - Impacts product efficiency / documentation

issues

In this way the customer knows exactly what an improvement or change can help him to achieve"

Source: http://www.evertiq.com/news/14609

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Profitability of DFM/ADFM/A manages the mismatch between

design and mfg process envelope, lowering overall product cost

Proof of DFM/A: (source: Boothroyd Dewhurst Inc)

+100 case studies, actual results of DFMA methods and software. Taken in composite, these show how companies have used DFMA to achieve:

Labor costs cut by 42%Parts reduced by 54%Assembly time cut by 60%Product development cycle time reduced by 45%Cost reduced by 50%

Whitepaper on DFM/A case study benefits, click here

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Electronics Manufacturing VPT (Virtual Proto-typing Tool)

Flextronics uses Valor® as a BKM in managing the designs that they get from their customers

Even Flextronics calls it Virtual Rapid Proto-Typing See Article:

http://www.evertiq.com/news/14609

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The Key to VPT with Valor®

Important to get the Valor Parts Library, it is the strongest part of the Rapid Proto-Typing (RPT) tool kit provided

It’s an option, thus costs more, but the overall value you get, when using the methods outlined here far outweighs the costs from an ROI standpoint

http://www.valor.com/en/Products/CAM%20-%20Assembly%20(Trilogy).aspx

Valor’s has 2 tools known as Trilogy®, and Enterprise 3000 software suites

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Silicon Device (Processor)

Thermal conductive Adhesive/Grease

Rigid Core– Al ?

Cu thermal transfer plate

Conductive Adhesive

MLB: Multi-Layer Board

Silicon Device (Processor)

Silver filled Resin or Epoxy

Embedded Thermal Heat-pipe

Silicon device

Double-Sided Silicon Devices-In-Board (DSSDIB) – Embedded processors (current component designs

using gold bumps or gold wire) in PCBA’sw/ rigid cores

µ-Via (4-6mil buried & blind)

Bump contact pads

Intel Patent Holder: Richard PlattTechnology Development Program Manager

Std Via (10mil drill/ 13mil fin)

Standard trace for routing on outer layer

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Rigid Core2 Plates A & B > Aligned with Pins > R.C. Through Holes Drilled or molded

> Heat Pipe Cavity > Retainer Rails > Silicon Device cavities

Through Holes Drilled intoRigid Core

Alignment Pins

Silicon Cavity

Heat Pipe Cavity Note: NOT TO SCALE -- R.C. Thickness TBDCutaway Drawing Set—Not a manufacturing Flow!

Retainer Rails

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Embedded ComponentsCu Thermal Plate > Silver Epoxy > Silicon Device

Silicon Device(Gold Bumped)

Cu Thermal

Silver Epoxy

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High Density Interconnect Printed Circuit Board (HDI PCB)

PCB Constructed > PCB mounted to respective half of Rigid Core via alignmentPins and PCB registration holes

Note: Surface Mount Components Only (includes I/O Connectors)

Bare HDI Foil PCB mounts toRigid Core

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Final AssemblyAll Components are S.M.T. > Heat Pipe & Condenser > Side A/B Joined

S.M. I/O Connectors

Side A/B Join(Registration Apparatus TBD)

S.M. Connectors w/Attachment into R.C.

Heat Pipe / Condenser Assembled into core

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Final Assembled Unit

Total Solution space = 70% Mfg & Assy process technologies + 30% product technology

PCBA and thermal solution are an integrated packageEnhanced electrical performanceEfficient thermal solutionIncreased reliabilityLow ProfileLowest Total Cost product

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The Way of Innovation

Step 3 and 4: System Evolution and

NEXT step Analysis

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Innovators

Early adopters

Early majority

Late majority

Laggards

Chasm Crossing?

From the Book “Crossing the Chasm” by Jeffrey Moore

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Step 3: Advanced TRIZ Methods Used for Selecting the Best Strategies

S-curve analysis helps to identify an idea’s potential and to match it with business objectives and available resources

S-curve analysis allows one to understand what to do with a good idea –it gives recommendations for its strategic development

S-curve analysis and Trends of Engineering System Evolution allow one to compare alternative ideas and to choose which one is better for the current environment and resources (analysis of the supersystem)

Trends of Evolutions allows to compare alternative ideas and see what their strong and weak sides are

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System Dynamics

Measured or Main Parameter of Value

Time

Current system

Target

Fundamental Limit of Capability

Getting to the Target Requires a Change to the Eng. System

Solve a contradictionUse another meansEvolve to other trend stages

Altered system

Good

Poor

The overriding importance of Evolutionary S-curves

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60

1st Stage of the S-Curve: Indicators and Recommendations

IndicatorsNew system, not yet on marketComponents from other systems, rather than custom componentsIntegrates with super-system elements. The new system must change/adapt to the super-systemConsumes resources not intended for itNumber and magnitude of system modifications increase and then decrease almost to zero (like Darwin's Law – only the strongest systems win)System integrates with leading alternative systems

RecommendationsOne should work with existing infrastructure and resourcesIt makes sense to integrate the ES with systems that are leading at the momentMain efforts should be concentrated on identifying and eliminating bottlenecks that prevent the system from entering the marketA forecast for supersystem development is required for systems that are in the 1st stage of evolutionProfound changes in system composition and its components (up to switching to another principle of operation) are allowed It makes sense to develop the system with the intention of using it in one specific field - where the ratio of its advantages and disadvantages that are the most acceptableIt is necessary to analyze physical and super-system limitations of development with the aim of finding out the degree of promise of an ES

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General Structure of the TESE

Trend of Transition to the

Supersystem

Trend of Increasing Ideality

Trend of Increasing Degree of Trimming

Trend of Optimization

of Flows

Trend of S-curve evolution

Trend of Increasing Coordination

Trend of Increasing Controllability

Trend of Increasing Dynamicity

Trend of Uneven Development of

System Components

Trend of Increasing Completeness of

System Components

Trend of Elimination of Human

Involvement

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Risk Assessment of Technology EffortTechnology Evaluation

Criteria Metric Multiplier Ranking Notes / Comments

Ease of Manufacturability

Specialty Manufacturing Process Yes = 1; No = 10 1 1

need to bring in New Processes, such as HDI-PCB capability, rigid core technology w/ integrated heat pipes, all SMT solutions for connectors would need to be developed. (I have new IP I am generating for that.)

Materials stage: lab, prototype, development or production?

lab = 1, prototype = 3, development = 5, production = 7 1 1

would need to develop a prototype line 1st in house to get the capability up and determine what the costs and issues would be to develop into a HVM line.

Is material specialty or commodity? specialty = 5, commodity =

10 1 10

HDI is standard technology readily available today. Aluminum rigid core can be done outside --outsourced in the short term.

Practical (least amount of effort for gain achieved)

Comaparitive against one project versus another. Multiplier of other metrics w/in the technology evaluation criteria 1 1

Do not personnaly know of any other approach that attempts a higher level of integration with the exception of Sun and IBM as comparitive systems

known vendor - sole supplierVendor known yes = 10, no = 5. Sole supplier = 5, multiple suppliers = 10 1 10

Grohmann Engineering

licensing or legal issues

Intel IP Y = 10; N = 1. Have to x-license from someone else = 5 Ability to x-license to others = 10 1 20

IDF's already submitted last year

cost POR cost = 5, more than POR cost = 1, less than POR cost = 10 1 10

Total system cost would be lower and enables a more efficient thermal x-fer mechanism than what is used today. No need to entertain refrigeration as a solution

availability of engineering know-how (internal /external / none availale) internal = 10, external = 5,

none available = 0 1 5

Grohmann Engineering, Fraunhofer Insititute and others have seen this and believe that it is a viable approach with the manufacturing capabilities that exist today.

integration w/ VFY = 10, No = 5 1 10

This would have to be a path pursued for a FOF model

R&D resources available (internal/external/none available)

internal = 10, external = 5, none available = 0 1 0

Extremely controversial approach, and requires an new perspective on architecture and business model

Is it disruptive technology? (Will this provide signifcant competitive advantage/compelling value add to feature set)

Characteristics of Disruptive Technology are: simpler, cheaper & lower perfoming. Yes = 1; No = 0, Generally promise lower margins, not higher profits. Yes = 1; No = 0, Intel's main customer's can't use the technology and don't want it Yes = 1; No = 0, 5 X 5 25

IDF submitted Yes = 10; No = 1 1 10

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Step 4: Current S-O-A of PCBA Technology

Current State – Of the – Art for PCBA Technology

EvPot+® Software | www.systematic-innovation.com All Logo’s and Trademarks are the property of their respective owners

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Step 4: New S-O-A of PCBA Technology

New State – Of the – Art for PCBA Technology

EvPot+® Software | www.systematic-innovation.com All Logo’s and Trademarks are the property of their respective owners

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Trend Interaction Effects – Key Rule

1

2

3

4

5

6

7

8

9

101

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

Sub A Sub B Sub C Sub D etc

System X

Customer ExpectationSegmentation

Controllability

Dimensionality

Human Involvement

RhythmActionDynamization

MBP(Sim)

MBP(Var)

Winner-Takes-All

Sense

Knowledge

Evolving thesystem at thehighest level…

…may require something to ‘get worse’at a lower hierarchical levelSource: Darrell Mann

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Step 4:Side By Side Comparison

Current State – Of the – Art for PCBA Technology New State – Of the – Art for PCBA Technology

Showing significant value add using proposed technologyThere are clearly more Innovation Trends utilized in the new technology (EvoPot+ Rating: 40% Old vs. 70% New)Visual representation aids managers, engineers and end users in decision making by showing the value-add from a mfg process standpoint, & by extension potential quality impact issues, product performance and robustness

EvPot+® Software | www.systematic-innovation.com All Logo’s and Trademarks are the property of their respective owners

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Conclusions and Results on DFIM™ and Innovation Agility™

(Systematic Innovation Methods Applied in Design and Manufacturing)

Systematic Innovation methods continue to be successfully applied in the manufacturing and process industry

Samsung claims $1B in savings and benefitsIntel results (2002 – 2006) est. $62M - $212M in manufacturing cost savings and benefits

Process improvements that DFM/A (and other tools) integrated with Innovation methods provides theGreatest Unrealized High ROI opportunities for minimizing risk and uncertainty and helping to attain / sustain true competitive advantage

CAI (Computer Aided Innovation) Tools alone DO NOT address the myriad issues of Risk, Uncertainty, or Resource Management challenges of NPI and market acceptance or adoption

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Author’s BiosRichard Platt: His previous role was as Intel’s Global Innovation Program Manager and the

Senior Instructor for Innovation Methods. He worked for Intel for 10 years in the Design, Operations, Manufacturing, R&D, Technology Development and IT organizations of Intel. While at Intel he was awarded an Intel Manufacturing Excellence Award, and 5 Intel Divisional Recognition Awards, achieving certification as a TRIZ Expert®, a TEN3 Business Coach and as a Innovation Master® . He’s currently the Principal for The Strategy + Innovation Group LLC, a Corporate Privateering company, focusing on aiding SME’s (Small & Medium sized Enterprises), and selected OEM’s using his organization’s competencies in Innovation Management, Intellectual Property development, Change Agency and conducting Market Insurgencies.

Joe Ficalora: is currently the principal of Joe Ficalora & Associates, serving DFSS and Lean Six Sigma client needs around the globe. He serves as deployment advisor, instructor and DFSS Master Black Belt at key clients including Medtronics, Fairchild Semiconductor, Boston Scientific, 3M, Osram-Sylvania, Tyco Electronics, and J & J. Mr. Ficalora was a partner/owner at SBTI, serving on the Board of Directors for SBTI, Inc., SBTI International, LLC, and Chairman of the Board for SBTI-China, their most successful global partner in growth and return on investment. His prior role was Architect and Program Manager for the Master Black Belt Program, the most profitable service offering for 10 years. He managed instructor coordination, program and course design, and was also responsible for personal mentoring and development for each Master Black Belt

Dr. Sergei Ikovenko: Is one of leading consultants and project facilitators in innovation technology of design. He has conducted more than 700 courses on innovation and TRIZ (Theory for Inventive Problem Solving) topics for Fortune 500 companies worldwide. Dr. Ikovenko was the primary instructor to deliver corporate TRIZ training programs at Procter & Gamble (about 1,500 engineers trained during 3 years), Mitsubishi Research Institute (300 engineers), Samsung (300 engineers), Intel (200 people) and other companies. He is a primary Innovation instructor of Siemens Innovation Tool Academy, General Electric Global Research and TRIZ Innovation Initiative of Hyundai Motor.

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Who We Are: The Strategy + Innovation Group LLC

www.sig-hq.comSole Proprietorship: A confederation of Innovation and Strategy

Specialists, with expertise in Semiconductor and Electronics assemblies, systems, processes, technology and physical architecture

Established: September 2006 – Present

A Corporate Privateering company specializing in Innovation Management and Strategy

Strategy + Innovation Group, LLC (S+I G) works with partner organizations in business and government to establish, execute, and sustain programs involving innovation, intellectual property, rapid proto-typing, process improvement, and organizational change via Change Agents.

S+IG leads identification and selection of innovation projects and opportunities within and without the client organization to drive both short and long term business and innovation objectives that result in the materialization of real ROI.

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Specific Services Include:Innovation Infrastructure Development: Corporate and Industrial Innovation as a core

competency is built, cultivated and sustained not hired or bought.Innovation Instructor “train the trainer” training Innovation Methods Instruction, Coaching and MentoringInnovation Pipeline and Systems DevelopmentKey operational indicators for improving success; “It’s not Failure, it’s Rapid Proto-Typing”Processes and procedures for Innovation and Intellectual Property DevelopmentPerformance management systems

“Change Agency”: Think “Under Cover Boss” who isn’t the boss, but the bosses personal undercover investigator and advisor who does the same thing.

Change Agent Training: (Executive coaching, training and leadership development, 1:1 and Team based)M&A support: (investigation of issues, challenges, obstacles and barriers)Key Human-resource Investigation: (managing the internal iceberg of resistance to corporate change initiatives) Workforce optimization; (Skill analysis, retention and development of both informal and formal leadership A-list key players for transition in growth or contraction- Development of Corp. Samurai mind set)Mediation and Dispute Resolutions (Investigation, Analysis and Advice of root cause issues to assist teams when and where conflict is seen and unseen )

Corporate Privateering Operations for Hire: Guns for Hire in High-Tech, next generation alternative to “Red and Blue Ocean” Strategies

Options and Opportunities ONLY discussed with clients on a Need-To-Know basis

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Thank You For Your Time

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ReferencesF. Langerak & E.J. Hultnick – IEEE Tr. Engg Mgmt, Feb. 2005A. Griffin – J. Proc. Innov. Manage., vol. 14, no. 6, 1997b

Contributing Authors:Joe Ficalora - Joe Ficalora & Associates Dr. Sergei Ikovenko - GEN3 Partners

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Additional Steps and Reference Material

Appendix

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Summary OF The Issues of NPD

Variation must be managed successfullyWaste must be removed in design and continually in productionMust balance each project to optimize efficiency and effectivenessYou cannot succeed in product or process without innovationSuccessful Product Innovation hits the targets, requiring VOC, LUINot every tool works in every situationSuccess in Markets require speed in decisions & knowledge

Apply the Right toolsTo the Right ProjectsAt the Right Time…

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Tying It Together: ObserveOODA Phase OODA aspect DFSS or Lean Tool Key Purpose

ObserveUnfolding 

Circumstances Environmental Scan

Check external 

environments

Outside InformationMeasurement 

Systems Analysis

Separate 

Measurement Error 

from real signal data

Outside Information SWOT Analysis Competitive Analysis

Outside InformationBaseline analysis, 

VSM ID Waste !

Outside Information Time/Motion Study ID Waste !

Unfolding Interaction 

with Environment

Control /Reaction 

Plans

Actions planned when 

key metric exceeds 

action limits

Implicit Guidance and 

Control

Control /Reaction 

Plans

Actions planned when 

key metric exceeds 

action limits

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Tying It Together: Orient

Orient Analysis DFMAAnalyze key product or service for 

complexity and reduce it

Analysis DFMEAAnalyze potential product/service 

risks and plan course of action

Analysis Reliability AnalysisAnalyze long term conformance 

potential

Analysis Spaghetti maps analyze transport/travel waste

Takt Time / Cycle time Supply vs

demand times

Synthesis Regression Model BuildingUpdate expand model between 

variables

Synthesis ANOVA Model BuildingUpdate discrete model between 

variables

Synthesis DOE Model Building/Testing

Synthesis Reliability Model Building Model long term conformanceSynthesis 5S Orient work areas

Synthesis Critical Parameter MgmtStore and categorize system 

relationships

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Tying It Together: Decide

Decide Hypothesis Test Confidence Intervals Range of acceptable variation

Hypothesis Test SPC Range of acceptable variation

Hypothesis TestHypothesis Test ‐

Means 

ANOVA Are Means equal ?

Hypothesis TestHypothesis Test ‐

Slope 

RegessionIs slope non‐zero between two 

variables?

Hypothesis Test Hypothesis Test ‐

Chi SquareAre Discrete variables 

independent

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Tying It Together: Act

Act implement Cell design Re‐Set for maximum valueimplement Kan Ban Pull value as neededimplement Monument managing Production Mgmt

implement SMEDshrink changeover 

downtimes

implement OEE optimum uptime

Action/Test DOETest for input‐output 

Relationships

Action/Test Robust Design

Determine Durability 

outside expected 

environments

Action/Test Reliability Testing Test long term durability

Action/Test SPCTest for acceptable 

variation

Action/Test Capability AssessmentValidate performance to 

expected requirements

ALL ALLMeasurement Systems 

Analysis

screen validate incoming 

info for validity

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Technology Evaluation Criteria Metric Multiplier Ranking Notes / Comments

Unit Cost Impact

No cost benefit to BOM, process, test, silicon or platform costs = 1 Potential cost reduction to BOM, process, test, silicon or platform costs = 5 Clear cost benefit to BOM, process, test, silicon or platform costs = 10 1 10

Implication to Business Model

Technology dramtically changes the way Intel does business or introduces more business risk = 1 Manageable risks and changes to business model = 5 Technology leverage or improves business model or represetns low / mitigateable business risk =10 1 1

Return on Investment

Technology does not demonstrate a return on investment = 1 Technology demonstrates a potential return on investment = 5 Technology demonstrates a clear return on investment = 10

Unknown. Would need a full in depth finance analyst to investigate this. No resources currently allocated to support

Reasonable business risk

Yes = 10; No = 1 1 10

Yes, since you would develop this in-house and only select one of your customersw to work with on this to develop the prototypes to prove out the business model and the technology. Business model now moves to entire PCB being delivered to OEM, end-user,

Applicability

Technology is limited to 1 or 2 products and/or market segments = 1 ; Technology can be applied across market segments but is limited to either cpu or non cpu.= 5 Technology can be applied across market segments and cpu and non cpu.= 10 1 10

Scaleability

Technology is limited to 1 generation = 1 ; Technology can be applied across multiple generations but limited segments = 5 ; Technology can be applied across multiple generations and segments = 10 1 10

I/P control

Intel has very little control of I/P = 1 Intel will share technology I/P with supplier = 5 Intel owns I/P = 10 1 10

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Technology maturity/ Time to development

Technology will take 3 to 5 years to develop = 1 Technology will take 2 to 4 years to develop = 5 Technology will take 1 to 3 years to develop = 10 1 1

Potential benefit

Technology will have limited benefit and is really an extension of existing technology =1 Technology will provide performance or cost benefit = 5 Technology will provide performance and cost benefit = 10 1 10

Risk

Technology may have significant reliable issues. Will require significant effort and >4 years develop = 1 Technology may have some reliable issues. Will require moderate effort and 2 to 4 years to develop = 5 Technology may has no apparent reliable 1 1

52

Technology Evaluation Criteria Metric Multiplier Ranking Notes / Comments

Risk Assessment of Technology Effort

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Steps 5 and 6 For Strength & Value

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Patent Strength Analysis - ValuingBackward Citations

Central Patent

Forward Citations

Paten t

Pub. Date

Inventor Assignee Title Patent Title

43273991982-04 Sasaki et al. Nippon

Telegraph & Telephone Public Corp.

Heat pipe cooling arrangement for integrated circuit chips

6292366 7294529 Method for embedding a component in a base

46316361986-12 Andrews Harris

Corporationdensity packaging technique for electronic systems

Printed circuit

board with embedded integrated

circuit

7286359 Use of thermally conductive vias to extract heat from microelectronic chips and method of manufacturing

4734315 1988-03 Spence- Bate

Space-Bate; Joyce Florence

Low power circuitry components

7176382 Electrical circuit board and method for making the same

4739443 1988-04 Singhdeo Olin Corporation

Thermally conductive module

7165321 Method for manufacturing printed wiring board with embedded electric device

4774630 1988-09 Reisman et al.

Microelectro nics Center of North Carolina

Apparatus for mounting a semiconductor chip and making electrical connections thereto

6991966 Method for embedding a component in a base and forming a contact

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Backward CitationsCentral Patent

Forward Citations

Patent Pub. Date

Inventor Assignee Title Paten t

Title

5199165 1993-04 Crawford et al.

Hewlett- Packard Company

Heat pipe-electrical interconnect integration method for chip modules

6292366 6788537 Heat pipe circuit board

5306866 1994-04 Gruber et al.

International Business Machines Corporation

Module for electronic package

Printed circuit board with embedded

integrated circuit

6680441 Printed wiring board with embedded electric device and method for manufacturing printed wiring board with embedded electric device

5355942 1994-10. Conte Sun Microsystems, Inc.

Cooling multi-chip modules using embedded heat pipes

6490159 Electrical circuit board and method for making the same

5793611 1998-08 Nakazato et al.

Hitachi, Ltd. Cooling device with thermally separated electronic parts on a monolithic substrate

Patent Strength Analysis - Valuing

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Levels Of InventionLevel 1 - Standard

Solutions that are obtained by methods well known within a specialty in an industry, this isn’t really an invention

Level 2 - ImprovementImprovement of an existing system, usually with some complicationSolution methods are obtained from the same industry

Level 3 - Invention inside the paradigmEssential improvement to an existing systemSolution methods are obtained from other fields or industries

Level 4 - Invention outside the paradigmCreating a new generation of a systemSolution methods are obtained from science, not technology

Level 5 - DiscoveryPioneer invention of an essentially new system.Usually based on a major discovery or new science (Kaplan, 1996)

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Indicators of the 2nd StageThe number of patents begins to grow rapidly

The level of patents declines constantly Profitability of the system goes up

t

t

t

t

# ofInventions

Profit

Efficiency

Level ofInvention

12

3

4

How The Value and Strength Are Measured

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Design for Six Sigma (DFSS)World Class Design

Product Life cycles are shrinkingObsolescence occurring more quicklyProduct and Development Management Association (PDMA):–Reducing NPD cycle time is crucial–Different methodologies used with varied success

Speed is not the only thing !Impact both Speed and Profitability?–Which methods?–Best combinations?

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Lean & Six SigmaLean

Waste EliminationFlow + SMEDCustomer PULL5S + Standard Work

RAPID VALUE DELIVERY

Six SigmaDefect / Variation ReductionScrap / Rework EliminationProcess OptimizationProcess Control

PREDICTABLE PERFORMANCE

LEAN + SIX SIGMA:Efficiency & Effectiveness

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Supplier Communication & Metrics

Measurable and SpecificOn Time Delivery at 95% or greaterDefective Material no greater than 1%Productivity improvement 6% year over yearQuote Response in 2 business days

ConsistentOne Standard Can differ - by organization goal (OEM, etc)

CommunicatedVisible to Suppliers and the organization

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Low Hi

Hi

Variability

Vol

um

eBurgers

TV Sets

Chemicals

Watches

Hand Tools

Bicycles

Toasters

ICs

AutomobilesConsumer Electronics

Toys

Golf Clubs

FashionAircraft

Aerospace/Defense

Source: Blair R. Williams - Manufacturing for Survival: the how to guide for practitioners and managers

Demand Profiles

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Two Systems of Inventory ControlPush Pull

Demand is anticipated / forecasted, orders launched, sometimes weeks or months

ahead of delivery date.

Cross functional team designs a material plan which will accommodate today’s demand (No anticipation)

Inflexible Flexible

Shop order launch (then wait) No Order (ready now)

Low Inventory Turns 3-10 High Inventory Turns 20-10

Accuracy (Unpredictable) Accuracy (Predictable)

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Volume & Variability

What control system

(Push or Pull is needed)?

How should the business

system support this?

What is going to be the

best physical layout?

Where should the

improvement effort

begin?

Which Lean Six Sigma

tools are most important?

High

High

Variability

Vol

um

e

Repetitive Flow

Rate-Based Scheduling

Hybrid Control

PULL System

MRP, MRPII

Discrete Job - Order

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Just In Time*Design Process FlowTotal Quality Management Stable ScheduleKanban Pull SystemWork with SuppliersReduce InventoryImprove Product Design

* HP Boise Plant approach to reduce their response times

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Production SchedulingManage your Bottlenecks instead of vice-versa

Especially critical in Testing and validationSystem only paces at the bottleneck pace

Pull not pushCreate pull with customer for takt timeTakt time must be > bottleneck cycle time

Demand smoothingCustomer schedule sharing

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Inventory Metric

Inventory Turns or Inventory Turnover Ratio:– It is the number of times inventory turns during a

one year period. Generally is calculated by the following formulas:

TURNS = Annual SalesAverage Inventory Value

or

TURNS = Cost of Goods SoldAverage Inventory Value

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The 9 Approaches

Supplier Involvement (SCI)Lead User Involvement (LUI)Acceleration of activities and tasks (AST) Reduction of parts and components (DFA)Training and Rewarding Employees (TRE)Implementation of support Systems and Structures (SST)Stimulating Cross-Functional Cooperation (XFC)Customer Emphasis (VOC)Simplification of organizational structure (SOS)