Sales can’t update the customer on launch status. Engineering spends more time updating Gantt charts than they do actually engineering stuff. Quality can’t find the documentation. Purchasing has no idea when the supplier status is. Sound familiar? What this means is: • Products are late • Quality is unacceptable • Resources are wasted • Problems are repeated What we have found is that Project Management is done with the wrong tools and/or people • Resources are over-scheduled • Issues are not resolved • True costs are unknown / inaccurate What we have found with Project Management Software • Tools are cumbersome, force detailed information that is unknown • People resort back to XLS • Management cannot support the team and resort to firefighting issues Learn about an approach to APQP and a SaaS technology that allows you to implement APQP the right way and engage your people and suppliers to improve communication, and launch higher quality products faster and on-time and under budget.

1. © Copyright John Cachat
APQP Bumming You Out?
Executive Briefing
John M. Cachat
Scott A. Gray

2. © Copyright John Cachat
Housekeeping
Phones are muted
Use the question
block for questions Copy of presentation
available upon request

3. © Copyright John Cachat
About John M. Cachat
• Driving Business Performance
– Helping companies align their business and technology
– Focus on people, process, and then the technology
– Subject matter expert on business process management
– On-going research into next generation of technology for enterprise
systems
• 28 years experience in enterprise systems
– USAF Research Project (1985)
– Founder of enterprise quality software company (1988)
– Chair of ASQ technical committee on computerizing quality (1992)
• Trusted advisor to global organizations, government agencies,
and professional groups
http://www.linkedin.com/in/johncachat

4. © Copyright John Cachat
About Your Presenter – Scott A. Gray
www.linkedin.com/pub/scott-gray/4/37a/27
• Sr. Program Manager, Quality Deployment at
Automotive Industry Action Group
– Passion for APQP as means to launch new products faster
with lower warranty costs
• Experienced Global Quality Leader
– Eaton Corporation, Sr. V.P. Corporate Quality
– Freudenberg-NOK, VP Quality
– Borg Warner Automotive, Quality Director
• Automotive Industry Leader
– AIAG, Chairman, Board of Directors
– Chair of Quality Steering Committee

5. © Copyright John Cachat
Thought for the Day
“If companies used APQP as a strategic
business process, they could decrease cost of
poor quality and warranty costs and thereby
increase profits, often a factor of 2x to 4x."
Scott A. Gray
5

6. © Copyright John Cachat
Ford Reviews Vehicle Launch Procedures
6
http://asq.org/qualitynews/qnt/execute/displaySetup?newsID=15940&WT.dcsvid=OTM3ODY1MTQ3NAS2&WT.mc_id=EM1110259

7. © Copyright John Cachat
Today’s Discussion
• APQP – The Problem
• APQP Managed Services – The Solution
• Next Steps
• Q & A

8. © Copyright John Cachat
APQP – The Business Problem
• Products are late
• Quality is unacceptable
• Resources are wasted
• Problems are repeated

9. © Copyright John Cachat
APQP – The Organizational Problem
• APQP is a Quality or Engineering thing, and not a
strategic business process
• Product Launch Managers are reduced to clerks
updating start and end dates that are never met
and that nobody cares about
• Project Management is done with the wrong
tools and/or people
– Resources are over-scheduled
– Issues are not resolved
– True costs are unknown / inaccurate

10. © Copyright John Cachat
Project Management Defined
• Projects are temporary undertakings with a specific
objective that are accomplished by the organized
application of appropriate resources.
• Project management encompasses techniques to:
– Propose
– Plan
– Implement
– Manage
– Evaluate projects
– Combined with leadership to manage people

11. © Copyright John Cachat
APQP Project Management Defined
Advanced Product Quality
Planning (APQP) is a structured
process, establishing and
defining the steps and
requirements necessary to
ensure that a new and/or
changed product and process
satisfy the expectations of the
customer and the needs of your
company.

12. © Copyright John Cachat
APQP - The Challenge
The project challenge in
every organization is to
structure and manage the
components of people,
material resources,
information, time, and
money to deliver a result
that meets the
requirements of the
customer

13. © Copyright John Cachat
APQP Best Practices
• A shared cross-functional business process
• Organizational clarity of responsibilities, authority,
and accountabilities for the project and the process
• Integrated master plan and integrated master
schedule
• Robust risk, issues, and opportunities management
• Comprehensive change management
Successful launch of new products is key to creating a
premier customer quality experience.

14. © Copyright John Cachat
APQP Best Practices
• A thorough and constructive phase review
process
• Clear/consistent communication of project
status with all stakeholders
• Concurrent engineering designed into the
process
• Inclusive supply chain management
• Supports learning organization culture
Successful launch of new products is key to creating a
premier customer quality experience.

15. © Copyright John Cachat
Successful APQP Project Teams
• Organize them to
achieve timely and
effective
communication,
coordination, and
decision making.
• Communication
– Both vertically and
horizontally
– Both push and pull

16. © Copyright John Cachat
Successful APQP Project Teams
• Coordination
– Thousands of activities, many are interdependent
– Complexity of program and supply chain increases
need
• Decision Making
– Empower the team leader and core team to make
the right decisions on a timely basis
– Robust phase reviews enable management to
remove barriers, support direction, and keep
projects aligned to business priorities

17. © Copyright John Cachat
Get in the game – this is not practice!
• Lack a sense of urgency
• Pretend tomorrow will never come
• Assume others will bail them out
• Ignore warning signs
17
Many of the problems
encountered during a product
launch are from people, the
roles they are required to play,
political issues, and comfort
zones.

18. © Copyright John Cachat
APQP – The Solution – What if….
• Supports a comprehensive APQP business process
• Enable robust project evaluation and project planning
prior to kick-off
• Provide multi-level work breakdown structure to ensure
visibility of time and resource constraints
• Builds risk management into each phase of the project
• Ensures resources with right skills are available at the right
time
• Brings lessons learned into future project planning
• Quality assurance is extended to all design activities
• Managed Services – off load of the administrative tasks

19. © Copyright John Cachat
Roles & Responsibilities
Executive Team
Guidance
Consulting Partner
Specialist Knowledge
Strategy
&
Direction
The Role of the Program Management Office (PMO)
Governance
Define program & project
delivery framework
Challenge
Challenge delivery
strategies & assumptions
Support
Provide / obtain support to
the project delivery teams
where necessary
Reporting
Management progress &
project status reporting
The Role of the Project Manager
Project Setup
Ensure projects are
setup correctly
Governance
Ensure projects are
executed following
best practice guidelines
Execution
Financial, Resource, Risk,
Issue and Delivery, Change
Management
Reporting
Project progress and
status Reporting

20. © Copyright John Cachat
What currently happens…
Executive Team
Guidance
Consulting Partner
Specialist Knowledge
Strategy
&
Direction
Executive Team
Search X / RescueX
Consulting Partner
Clerical X / Repair Work X
Project Managers – Management Challenges
Planning
Detailed Project Plans
Resource Scheduling
Procurement
Risk, Issues, Change
Risk Mitigation &
Issue Resolution,
Change Management
Progress Tracking
Timesheet, Expense and
Delivery & Budget
Management
Reporting
Project Status Reporting
Stakeholder Management
Program Management Office
Project Setup
Governance
Support
Reporting

21. © Copyright John Cachat
Lessons Learned
Probability of Success = 95% Money, People, Delivery and Benefits
Executive Team
Guidance
Consulting Partner
Specialist Knowledge
Strategy
&
Direction
When and Where Appropriate!
The Business Layer
Visibility
Central Library of all
Project & Program Data
Resource Management
Demand & Supply
Model
Other Costs
Other Project Costs
By Cost Type
Delivery
Delivery & Benefit
Management
Detailed Layer
Planning
Detailed Project Plans
Resource Scheduling
Procurement
Risk, Issues, Change
Risk Mitigation &
Issue Resolution,
Change Management
Progress Tracking
Timesheet, Expense and
Delivery & Budget
Management
Reporting
Project Status Reporting
Stakeholder Management
Lessons Learned… based on decades of experience…
1. Focus on the BUSINESS OBJECTIVES that drive the PROJECT & PROGRAM DELIVERY
process.
2. Avoid taking on unnecessary and impossible challenges. Recognize that project
managers are different and that they have different styles. This is a people issue and
not a tool issue!

22. © Copyright John Cachat

23. © Copyright John Cachat
KeyedInProjects APQP Solution
• The KeyedInProjects APQP Solution is a pre-
configured baseline project/program
management framework designed specifically
to support automotive APQP programs
• APQP Project configuration includes work
breakdown structure, phase gate review
approach, project and process performance
dashboards and 35 example checklists,
worksheets, forms

24. © Copyright John Cachat
KeyedInProjects APQP Solution
• Easily customized from baseline template to align
with your new product development / APQP
process, your organization, and your customer
specific requirements
• Provides functionality for the individual team
member, project team leaders, functional
department heads, business leaders, and
executives
• Capitalizes on systemic approach to APQP projects.

25. © Copyright John Cachat
KeyedInProjects APQP Template
• Rapid deployment through SaaS model
• Designed to support an Enterprise Program
Management Office (EPMO) framework, it is
scalable from plant to corporate, and across
all functions in the company
• Managed Services offering enables you to
offload part of the project administration
workload and focus on product development
and launch

26. © Copyright John Cachat
APQP Dashboard / Analytics Model
Executive Level Business Level
Program / Project
Level
Dashboard
Approach
GYR Indicators for Key
Project Metrics and
APQP Process Metrics
GYR Indicators for project
metrics and for Business
Portfolio impact on APQP
Process Metrics
GYR Indicators for all
project metrics
APQP Process
Performance
Cycle Time and First Pass
Yield for all projects
combined
CT & FPY for Business
Portfolio, Achievement of
committed CT and FPY
improvements
Process Compliance
Flags
Project Performance
On Time Projects
Financial Results,
Customer Satisfaction
Product Line Profitability,
Project Financial Metrics
On-Time
Performance to Spec
Project Costs
Program Issue
Escalation Triggers
To Phase Gate Council
Members
To Functional Managers
and Business Staff
To Project Manager and
Team
Drill-Down
Capabilities
To Business and Project
Name Level
To Phase /Task Level
within projects
All project related
tasks, activities, and
deliverables.

27. © Copyright John Cachat
APQP Dashboard

28. © Copyright John Cachat
APQP SaaS Solution

29. © Copyright John Cachat
APQP Solution – Task List

30. © Copyright John Cachat
APQP Solution - Resource List
If you do not have a single, global resource list, you will schedule people for
315% of their capacity

31. © Copyright John Cachat
APQP – Real World Conversations
• A portfolio of four active APQP projects, two launching
simultaneously. Engineering, manufacturing, and supplier
“opportunities” have to be managed. There are also a
number of new employees in key project management,
engineering, and supply chain positions
• Mid-sized Tier 2 supplier in the automotive industry.
• As a result of stellar performance on previous launches, the
T1’s are asking BSC to step up to become a supplier of new
products.

32. © Copyright John Cachat
Key Takeaways
ABILITY TO PRIORITIZE, SELECT
AND EXECUTE PROJECTS
SELL MORE, DO BETTER,
MAKE MORE
MANAGED SERVICES
(YOU FOCUS ON PROJECT LAUNCH)

33. © Copyright John Cachat
About Us
John Cachat
jmc@peproso.com
Contact
Proven expertise in business
information systems
Rapid Solution
Development™ process
Services
Assess Current Status
Develop Short and Long
Term Plans
Develop Specific Solutions
to Your Problems
Assist in ROI Analysis

34. © Copyright John Cachat
APQP Bumming You Out?
&
Contact:
John Cachat
jmc@peproso.com
Copy of Presentation
&
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