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            Paul G. Russell, CPP/Fellow
            Packaging Process Manager
             Hewlett-Packard Company
                    March 2002

• Process used to collect information

• Analysis

• Transferring into action
      Where packaging has influences in the customer experience

                              repurchase & recommend

                     use &                             awareness &
                     grow                              consideration

                        first 30 days        select & buy         Brand Image
                                                                  & Promise
Disposal or return
                                                            Communicates Solutions
    Unpacking & OOBE
            Getting it home                        Specifications
                     Packaging Cross Functional Interaction

Materials Engineering                  Marketing                   Manufacturing Engineering
Supplier Packaging                     Graphics Standards          Material Handling
     Receiving                             Customer Perception   Electrostatic Discharge (ESD)
     Material Handling                     Legal Requirements    Process Flow
Outbound Product Packaging                  Language Issues            Manufacturability

     Technical Specification/Design                                    Reliability

Price leverage                                                          Manufacturing Costs

                                                                   OEM Contract Mfg.. Relationship
                                                                   Post Mfg. Support (conflict resolution)

Quality Assurance                                                   Distribution/Logistics
Environmental Test Standards             Packaging                  Process
    Product/Packaging Design                                       Shipping Costs
                                                                    Regulatory Compliance

 R&D                                     Suppliers                     Sales & Service
 Product Design                         Managing Relationships        Customer Satisfaction
      Mechanical Stability                                                Warranty/D.O.A.

      Reliability                                                         Environmental Concerns

      Logistical Considerations

      Design for Mfg.
                                     What is benchmarking
                                  • It is a process of identifying, sharing,
                                    and using knowledge and best
                                    practices. It focuses on how to
                                    improve any given business process
                                    by exploiting top-notch approaches
Performance             Process     rather than merely measuring the
                                    best performance.

                                  • It is a combination of competitive
                                    intelligence and looking at best in
          Strategic                 class
                                        •Helping to know yourself so you
                                        can judge others
                                        •Helping you to know your
                                        domain so you can determine an
      Strategy Development
       Project Prioritization
       Maintain Leadership
                    Performance Benchmarking
Competitive Analysis Program (CAP) – direct comparison of product to product
•   Process
    • HP provides information and samples (if possible), 3rd Party conducts
    • Share results with participating site and post results to program web site
•   Elements Captured
    • Component and Total Cost Analysis
    • Comparisons (% Package Cost/Street Price)
    • Physical properties
    • Graphics - Printing process used, # of colors, # of languages, Symbols used
    • Materials (box, cushion, thermoform, & other)
    • Attributes - environmental, ergonomics, out-of-box experience, localization, etc
    • Forensics Photographs
    Competitive Analysis Program (CAP)
               Process Flow
Pkg samples
                  form and
                               Competitive                 Enough           samples
  HP Division                   Analysis                   info and                       Competitors
                                Program                    samples                         products

                          Publish individual
                         report to HP Division

                                                          Document &
Load to HP web                                            Photograph                       Analysis

                    Return all provided samples

               HP responsibility                 3rd party responsibility

                                                                        Performance Benchmarking
Performance Benchmarking
 CAP Summary Example

                           Performance Benchmarking
CAP - Forensics Photograph Website

                                Performance Benchmarking
                                Critical Focus Areas
•   Product Selection
     •   Get agreement on how products will be selected for comparison (industrial design, price point,
         features, etc.)
•   Determining Quotable Volumes
     •   Using generic on-going monthly volumes for costing (5K, 10K, 25K)
           – Use "threshold volume" for generic numbers. This assumes in a competitive environment companies are
             all using technologies and processes that are cost effective at threshold volumes.
           – Map to your typical volume runs.

•   Highly People Dependent
     •   Use product line representatives to determine what products (yours and the competition)
         should be benchmarked and volumes to quote. Poor upfront data leads to poor results.
     •   Check information obtained via 3rd party with internal engineers to validate assumptions and
•   Sourcing Products
     •   Develop clear budget expectations upfront for buying competitors products. Using a “buy &
         return” method is difficult and can exceed regional sourcing capabilities.
     •   Leverage internal competitive test labs – they may already have what you want
     •   Purchase products quickly, once products are identified, as they have a tendency to roll to the
         next generation

                                                                                  Performance Benchmarking
       Process Benchmarking
      using a survey instrument

We used a questionnaire that
addressed 4 major categories:
  • Procurement processes
  • Packaging processes and interactions
  • Marketing approach and customer
  • Environmental focus
For each area, subcategories of
interest include:
  • Structure
  • Process
  • Metrics
  • Future (Packaging only)
  • Customer values (Marketing only)
  • E-commerce and total buy
    (Procurement only)
Who we looked at

                   Process Benchmarking
            Critical Focus Areas in
           using a Survey Instrument

    • Selecting right players and getting
      them to participate can be difficult
       • Use of a 3rd Party is critical
       • Pre-established relationships are
         helpful (conferences and seminar)
    • Develop the right questions

       • Spend about half of your total project
         time designing/optimizing the
    • Sell the benefits/value to participants
       • Give them examples of what they’ll
         get for their effort (report)
       • Make them part of a team
       • Provide frequent updates
    • Get you hands on the raw data
       • Allows drill down and complete
         understanding of the details
       • Provides opportunity to validate 3rd
         party analysis

                          Process Benchmarking
    Strategic Benchmarking
      through interviewing

• Know your strategic opportunities
• Identify companies, outside our
  sector, which are best in class in
  those areas
• Engage companies
    • Why them and your intent
    • Non-disclosure agreements
    • Reciprocal
• Agree on process and amount of
• Conduct interviews and document
• Compile into recommended lists of
  projects or process modifications
                               Critical Focus Areas

                   Interviewing In Teams Of Two
                    • Each Interviewer takes a different role
                    • Each is tracking and recording different types
                      of information on different levels
                    • Each can offer help when the other gets
                    • Having two interviewers is indispensable for
                      reconstructing and interpreting later in the
                      synthesis process
                   Good information is:
                    • Specific attributes which are important to you
                    • Useful for creating a clear understanding
                    • Focused on key drivers for your business
                    • Captures key issues/challenges
                    • Identifies what isn’t known by the interviewee
                    • Adds value in both directions
“Two people are    Ask permission to follow up and/or
   80% more        come back
   effective in
information than
 by one person
                                          Strategic Benchmarking
                 • For each approach
                  (Performance, Process, Strategic)
  Raw Data
                    • Bring in a fresh person
                        • review first draft findings
                        • distill it down to the key areas
Processed Data      • Team works with the new person
                        • explain the unique elements
                          of the raw information and
                          first draft analysis
                    • Key activities during this phase
  Knowledge           include:
                        • Analyzing trends
                        • Identifying best practices
                        • Determining opportunities
                    • Team identifies critical few
Understanding         opportunistic strategies
          Pulling it all together
Used HP change management process
• Developed a list of opportunistic
   • Tactical projects mapped into
• Identified key stakeholders to own each
   • Internal packaging council (control
   • Get their input and use their language
• Gain acceptance and buy off
• Use council meetings to track progress
  and keep everyone on the same page.
• Develop/modify reward structure to drive
  the right behaviors.
Benefits I hope came across:
• Exposure to our benchmarking
• How we identify key opportunities
• How we transfer this knowledge into
  actionable strategies and projects
Thank You
Any questions?