The $1 Million Story at Endress+Hauser: Our Way To Success With Design For Manufacturing

Whatever you are doing, anytime in time, Switzerland-based Endress + Hauser neighbors.

Whether you are consuming or consuming, turning the light on, or taking a tablet, you are surrounded by things made with commercial procedure engineering. That is Endress+ Hauser’’ s organisation.


The business is a leading international supplier of procedure and lab measurement innovation, automation services, and services. With over 14,000 workers worldwide, Endress+ Hauser assists its consumers run their procedure applications and plants securely, dependably, effectively, and in an environmentally friendly method.

.Guaranteeing a fantastic consumer experience.

The household service Endress+ Hauser is a trustworthy worldwide partner for its consumers worldwide. The majority of its profits are reinvested in the business’’ s company activities, improving its international network, and permitting it to develop brand-new item developments.

Company-owned sales centers and devoted sales associates bring its proficiency to clients in the worldwide market. They keep an eye on regional sales, services, and engineering.

Its 5 production centers are understanding centers for their particular fields of activity. These entities are accountable for advancement, marketing and research study, and production. Endress+ Hauser makes in all significant financial and geographical areas. That permits the business to rapidly and flexibly provide its consumers any place they lie worldwide.

With the assistance of its field gadgets, clients obtain important understanding from their procedures. They determine physical criteria such as circulation, pressure, level, and temperature level. And they evaluate specifications such as pH worths, oxygen material, turbidity, and so on or figure out density, concentration, or structure of compounds.

.Circulation measurement: Endress+ Hauser Flow offers flow-measuring gadgets that determine liquids, gases, and steam in both big and little amounts.Level and pressure measurement: Endress+ Hauser Level+ Pressure provides a substantial choice of measurement concepts for the constant measurement of levels, densities, and user interfaces along with level-limit detection. The business likewise supplies high-performance gadgets for determining procedure pressure, differential pressure, fill level, and circulation. In addition, inventory-management options assist clients quickly monitor stocks around the globe.Liquid analysis: Endress+ Hauser Liquid Analysis provides an extensive portfolio for all criteria in liquid analysis. Advanced optical innovations are utilized in the gas analyzers along with the Raman analyzers.Temperature level measurement: Endress+ Hauser Temperature + System Products offer a complete series of temperature-measurement innovation, consisting of modular and compact thermometers, thermowells, measurement inserts, temperature level transmitters, and devices. System item and information supervisors supply energy to measurement gadgets and safeguard them from power rises.

In the town of Maulburg in Southern Germany lies the biggest item center in the Endress+ Hauser Group, Endress+ Hauser Level+ Pressure.

With more than 2,400 partners, this department offers items and services from 9 places throughout all locations. In the locations of level and pressure measurement and inventory-management services, the business uses a substantial range of configurable measurement transmitters –– as much as 33 million variations of each particular line of product –– with a preparation of no less than 2 to 5 days.

The SAP Digital Supply Chain marketing group just recently had the opportunity to go over how brand-new item advancement operates at the business. The following is what Dr. Volker Frey, technique specialist at Endress + Hauser, informed us.

.Allowing the very best expense position for all brand-new items at a tactical target.

Q: How did Endress + Hauser construct its business technique?

A: In 2016, we launched our brand-new method ““ 2020 +” which includes 10 significant tactical fields. To be competitive in the long run, we required to enhance our product-related expense position. That’’ s why we chose to concentrate on expense decrease.

Besides the concentrate on effective and robust production procedures, we began to focus on the advancement of cost-optimized items. The objective was to establish items that are simple to put together, based upon expense and price-optimized parts.

It was quite clear that style for production and assembly (DfMA) was the favored tool to satisfy the objective. Throughout a mindful choice procedure of tools, techniques, and consulting companies, we wound up with a group of 3 possible providers. We took a seat with each of them to discuss their methods, software application, and assistance and evaluated their abilities in a pilot task.

The provider that stood apart without a doubt was BDI Consulting and its European arm, AMC. Together, we established our application strategy, application structure, and organizational setup.

.A holistic technique to item advancement.

Q: How about the significance of modification management, company, and interactions?

A: Endress+ Hauser chose one accountable planner who meant the execution of the DfMA method, drove interactions throughout the business, described advantages and arranged trainings and workshops, and looked after the software application purchase.

Furthermore, there were 4 DfMA mediators chosen together with 8 Design for Manufacturing experts.

Throughout 2017, we went through a well-scheduled training program for the mediators along with the DfMA experts and carried out numerous DfMA workshops together with AMC’s assistance.

Our significant interaction was that our focus was NOT about costing or layoffs, however to enhance our item expenses through enhanced and sustainable style, leveraging a business group within our advancement company.

Coming from a practical view, with single professionals associated with the brand-new item advancement procedure (NPDP) procedure, we promoted a holistic view of the item throughout the DfMA procedure.

In addition, we aimed to bring the understanding of various individuals into a brand-new item.

And we wished to challenge the item style from all disciplines of the value-generation procedure up until the very first mock-ups and styles were launched for purchase or production.

In that very first stage, we embraced BDI’s proposed approach for workshops. Beginning with a pick-up workshop where we created the expense standard in addition to the item structure throughout disassembly of the very first style, we likewise created originalities throughout reassembly and enhanced the concepts along the minimum parts requirements.

To examine the advantages of concurrent originalities that were created throughout disassembly and reassembly, we chose to choose an approach established by our seeking advice from partner, which is called “the delta assessment.”

We went on examining the expense advantage of each originality produced in contrast to the fundamental style method we began with. An Excel spreadsheet assisted us compare each brand-new option to other concepts and with regard to the initial style in a traceable and transparent way. This not just resulted in conclusions however likewise provided us the alternative to file and shop excellent concepts for additional reuse in future advancement jobs.

.The early riser captures the most significant worm.

Q: What was the outcome of these workshops?

A: In mix with a completely created execution strategy, a steady organizational setup of crucial gamers, and a great interactions strategy, we acquired great success throughout the very first year of execution of DfMA in our company.

We did 4 DfMA workshops in the very first year, where we leapt onto currently running tasks and enhanced the style of the item according to the guidelines of DfMA. We had good success, however the genuine advancement came when we began our DfMA workshops in the extremely preliminary stage of an advancement job. Here, we had far more liberty of concepts and had the ability to affect the task much more, which wound up with a much greater quantity of cost savings.

Based on this experience, we made a DfMA workshop necessary for each job. It will be begun at an extremely early stage and is carefully linked to the main task release.

.Software application services support item lifecycle management (PLM).

Q: What software application services did you present to support the brand-new item advancement procedure within PLM?

A: Our business has a SAP method, and we are utilizing its software application services broadly. We likewise work carefully with SAP professionals in numerous locations. In addition, we co-innovate with SAP and supply input and feedback to assist the business establish brand-new software application services. Among the programs is called SAP Continuous Influence, another SAP Customer Connection.

‘‘ The direct impact empowers users and assists them establish essential enhancements for their jobs. This likewise assists SAP, because that avoids advancements from being missed out on by users. It is just by teaming up that you can make enhancements.

We are utilizing the SAP Product Lifecycle Management (SAP PLM) and the SAP Engineering Control Center (SAP ECTR) options.

.$ 1 million minimized item advancement expense every year.

Q: How would you rank your success (in figures and realities)?

A: This task straight adds to the tactical objectives of our business. Throughout the very first 2 years of DfMA at Endress+ Hauser, we made fantastic development both in the outcomes and in numerous staff members’ state of minds:

.3 DfMA expense assessments.6 DfMA workshops.26 DfMA assessment workshops.121 various individuals in our business.583 concepts created.$ 1,070,679 (United States) each year cost-saving capacity.

Even more crucial than the bare figures of success, which summarize to more than $1 million a year in expense decreases of our brand-new items, we had the ability to:

.Enormously increase the expense openness of our items and awareness of our individuals.Create a good understanding of advancement, production, procurement, marketing, and service.Lower advancement preparation.Put together in a more ergonomic method.Boost quality and procedure stability in production.

Today, after 2 years of DfMA task experience, leaders actively ask for DfMAs for each brand-new item advancement. Workers from throughout the business volunteer to take part in these DfMA workshops.

Meanwhile, not just the Product Center Maulburg runs DfMA workshops, however other business in the Endress+ Hauser Group have actually begun to carry out the approach.

We are aiming to gather the success of DfMA throughout the next couple of years, as quickly as all our brand-new cost-optimized items go into the market. Today, we currently have actually an approximated advantage of more than $1 million annually and with each brand-new DfMA workshop, we constantly include more cost savings.

The technique is likewise supported by the E+H group leading management, and we won the E+H Process Innovation Award in 2018, which is a huge honor for the group and for our partners. We want to thank all.

Thank you, Dr. Frey, for this fascinating interview and your insights.

Find out more about how to enhance your style procedures, have a look at the IDC report ““ Design as a Critical Element of Digital Supply Chain .””


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