December 2013

TE World Class Engineering Strategy

 FOUR WAYS TO ACHIEVE ABOVE-MARKET
GROWTH

Price Increases Increase Market Share

• Opposite of customer • Difficult in mature markets
expectations in electronics • Incremental & next
• Opportunity for competition generation products

Mergers & Acquisitions Transformational Offerings

• Opportunistic • Products
• Integration risk • Markets
• Business models
• Minimize cannibalization

TE’s Engineering Contributes to Market Share and Transformational

 ENGINEERING’S CONTRIBUTION TO GROWTH
THROUGH NEW PRODUCT REALIZATION
Achieved through effective balanced
portfolio management in three key areas:
- Derivatives – leverage Franchises to quickly
deliver customer-specific changes and
deepen relationships
- Short-term
- Defends and/or increases market share

- Franchises – maximize return on

engineering platforming investments with
core products that have long-term, broad
market appeal (e.g. Whisper)
- Mid-term
- Grows market share

- Transformational – expand offerings with

The TE “Sausage Factory”
products new to TE and/or the world that
become Franchises
- Long-term
- Transformational
 WORLD CLASS NEW PRODUCT REALIZATION
REQUIRES ALL FUNCTIONS
Be the best in the world:
- Find the best projects to support
IT the growth strategy and maximize
SALES our ROI
MANUFACTURING
FINANCE - Employ innovative tools,
QUALITY technologies, materials, talent, and
teamwork to become faster and
New Product more productive

Realization - Align work anywhere possible to

improve efficiency to be the fastest
OPERATIONS PRODUCT in this competitive world
MANAGEMENT
ENGINEERING - Ensure that new products are
released on time at costs to
PROJECT MANAGEMENT increase our profitability

World class engineering is one important contributor

 TE WORLD CLASS ENGINEERING STRATEGIES

Maximize overall productivity

through comprehensively
integrating and executing key
DIGITAL engineering strategies:
LEANPD ENGINEERING
& OPERATIONS • Streamlined, integrated,
collaborative, gated processes
from design to operations
• Digital design, engineering,
tooling, manufacturing
• Engineering rigor and sharing of
ENGINEERING
EXCELLENCE best practices
• Cultivation of a culture of
WORLD CLASS continuous improvement
ENGINEERING

World class engineering is required for operational excellence

 TE WORLD CLASS ENGINEERING STRATEGIES

LEANPD V2 – Phase 1: An evolved,

agile framework of best practices,
processes, toolboxes, IT systems, and
DIGITAL communities to maximize productivity to
LEANPD ENGINEERING do the right projects right
& OPERATIONS
DIGITAL ENGINEERING &
OPERATIONS: Transforming from a 2D
to a 3D model- and content-based
paperless environment for product
design; process design and tooling; and
manufacturing operations
ENGINEERING
EXCELLENCE ENGINEERING EXCELLENCE:
Improving the functional execution of
product development by driving rigor and
WORLD CLASS sharing best practices
ENGINEERING
 LEANPD V2 OBJECTIVES

• Focus on streamlining processes and

systems while increasing
project/portfolio management
STREAMLINING capabilities, development execution,
and project visibility

• Perform risk mitigation to proactively

slow down to speed up to achieve
RISK predictable “right first time” results
MITIGATION TEAM SPORT

• Cross-functional business process as

a Team Sport

LEANPD V2 –
Phase 1
 LEANPD EVOLUTION
100

90
PH2
V2

V2 PH2
80

V2 PHASE 2
70

V2 PHASE 2
V2 PH1

V2 PHASE 2

V2 PHASE 2
% ACHIEVED

60
50
PH1
50
V2

40 40
40
LEANPD V1

LEANPD V1
LEANPD V1

30
20
20
10

V1
10 5

V1

V1
0
Development Portfolio Requirements Resource Growth Strategy & Digital Engr. &
Execution Management Management Management Intgr. Roadmaps Ops

0I II IIIIV

STREAMLINING

NOTE: NORMALIZED FOR ALL BUs

 LEANPD EVOLUTION

LEANPD V2 WHY LEANPD V2?

• Dramatically increases engineering productivity when
GOVERNANCE

PMT combined with Digital Design & Manufacturing and

Engineering Excellence
• Progresses varying degrees of maturity among
governance and projectized roles
PAC • Reallocates manpower savings to work on
transformational projects
• Better aligns with TEOA

PMO WHAT’S NEW IN V2 Phase 1?

PROJECTIZED

• Streamlines, simplifies, and scales systems and processes

• Adds a risk component to project classification
CTL • Improves performance scoring to drive the growth
strategy
• Expanding activity planning to support Core Team
Leader/PM execution
TECHNICAL
TEAM • Institutionalize the Project Management Office

STREAMLINING
 LEANPD EVOLUTION

SIMPLICITY + PRODUCTIVITY = GROWTH

V2 Phase 3
2016 • Open Network Capability
• Ecosystem Development
• Digital IT integration

• Portfolio Management
V2 Phase 2 • Advanced Roadmapping
2015
• Growth Strategy Deployment
• Resource Management
• Requirements Management

LEANPD V2 • Streamlined Process & IT System

• Star Level Alignment
Phase 1 • Adaptive / Flexible Development Capability
2014
• Risk Component added to Current Project Classification
• More relevant KPI / Metrics
• Enhanced Project Management

• Common IT System
LEANPD V1 • Common Stage Gate Process with Deliverables by Gate
2009 to present • Common Nomenclature
• Global Project Visibility
STREAMLINING
 RISK MITIGATION: “Slow Down to Speed Up”

Upstream Rigor ‘Right First Time’

DEFINITION CONCEPT DESIGN VALIDATION INDUSTRIALIZE PRODUCTION

G0 G1 G2 G3 G4 G5 G6

Proactive - Analytical Predictable – Analysis

DEVELOPMENT EXECUTION

• Simulation • Test to Fail

• Design of Experiments • Advanced Mfr. Techniques
• Prototyping, 3D Printing • Safe Launch
• Peer / Risk Reviews • Capability Analysis
• DFM / DFA • DFM / DFA

RISK
MITIGATION
 CROSS-FUNCTIONAL “TEAM SPORT”

BENEFITS
Supplier
• Leverage existing Product Development
Supply Chain
Management
Sales and Operations
Model* to optimally scale and execute
Sourcing Planning (S&OP) to cross-functional involvement
Industrial
Marketing
appropriate for the assigned level of
Pricing
Procurement
complexity
Sales Mgmt
Cost Accounting
Application Eng
• Mobilize and empower Core Teams
Product Mgmt Finance
Business and disciplines to pursue product
Business Core Team
Development Leader development excellence
Project Operations
Quality Manager Manufact-
Testing &
Reliability
uring Industrial Eng • Integrate, synchronize, and measure
Quality Eng all functions including Project
Engineering Process Eng Management, Development Excellence,
Quality
Assurance Manufacturing Portfolio Management, and Finance
Eng
Packaging
Development Eng
Legal-patent CAD-design • Establish a productive system where
Product Eng
Research everyone is accountable and “needs to
show up”
TEAM
SPORT
* This Product Development Model has been in place since LEANPD V1 in 2009.
We will improve the efficiency of this model in LEANPD V2.
 LEANPD V2 OBJECTIVES

• Focus on streamlining processes and

systems while increasing
project/portfolio management
STREAMLINING capabilities, development execution,
and project visibility

• Perform risk mitigation to proactively

slow down to speed up to achieve
RISK predictable “right first time” results
MITIGATION TEAM SPORT

• Cross-functional business process as

a Team Sport

LEANPD V2 –
Phase 1
 TE WORLD CLASS ENGINEERING STRATEGIES

DIGITAL
LEANPD ENGINEERING
& OPERATIONS
DIGITAL ENGINEERING &
OPERATIONS: Transforming from a 2D
to a 3D model- and content-based
paperless environment for product
design; process design and tooling; and
manufacturing operations
ENGINEERING
EXCELLENCE

WORLD CLASS
ENGINEERING
 TE DIGITAL ADVANTAGE

TE DIGITAL ENTERPRISE FRAMEWORK

PROCESS
Digital Digital
Workplace Customer
Experience
“Digital

TECHNOLOGY
PEOPLE

Content
Digital
Trust Everywhere”
• Intelligent Design
• Design Automation
Digital • Systems Integration
• Seamless, two-way information sharing and flow
Digital Engineering from design to tooling to operations
Assets • 3D parametric model-based world, 2D on-demand
& Ops • Creation and digital delivery of paperless non-
model content
CULTURE • Digital operations

Digital Eng. & Ops

 DIGITAL ENGINEERING & OPERATIONS

Digital Product Digital Process Digital Paperless 3D in Product

Design Design & Tooling Factory Marketing
• Automatic creation of • Automatic creation • Paperless factory • Searchable design data
Smart 3D Models • Simpler re-use and • Non-model content linked to product
• Intelligent Design modularity delivered and information
• Design Automation • Consistent inclusion of consumed in digital • Richer configuration
• Simple re-use, and design guidelines formats tools that are simpler to
simulation • Link tool and design • Real time visibility into create
• Putting non-model changes quality data • Web based access to
content into digital • Automatic tool • Integration of vendors all the design benefits of
format verification into quality systems a product
• Integration with Analysis • Tool simulation possible • Better control of what
tools • 3D tooling inspection goes where
• Use of 3D printing • Paperless assembly
technologies to create
functional prototypes

Transition to new, integrated tools and systems to manage/reuse of DIGITAL CONTENT &
ASSETS (3D Models, Tooling & PMI Data, Animations & Multi-media Content, etc…
 TE WORLD CLASS ENGINEERING STRATEGIES

DIGITAL
LEANPD ENGINEERING
& OPERATIONS

ENGINEERING
EXCELLENCE ENGINEERING EXCELLENCE:
Improving the functional execution of
product development by driving rigor and
WORLD CLASS sharing best practices
ENGINEERING
 ENGINEERING EXCELLENCE

• RISK MITIGATION
• Peer Reviews
• Design of Experiments (DoE)
• Simulation
• Advanced Prototyping

• CRITICAL PARAMETER MANAGEMENT

• Safe Launch
• Capability Analysis
• Statistical Performance Evaluations
• Measurement Systems Analysis (MSA)

• COLLABORATION TOOLS
• TEchNet intranet engineering portal
• Centers of Excellence (CoE)

• BEST PRACTICE SHARING

• BILL OF PROCESS
 TE WORLD CLASS ENGINEERING EVOLUTION

Be the best in the world

DIGITAL by doing the right projects
LEANPD ENGINEERING
& OPERATIONS …right.

ENGINEERING
EXCELLENCE

WORLD CLASS
ENGINEERING
MISC
LEANPD EFFECTIVENESS STATUS

NOTE: NORMALISED FOR ALL BU’S

100

V2
V2
90

V2P2

V2P2

V2P2
80

LEANPD V2

LEANPD V2 PHASE 2
70

LEANPD V2

LEANPD V2 PHASE 1
LEANPD V2
60

50

40

30

20

10

0
Optimum Project Development Portfolio Requirements Resource Integrated
Selection Execution Management Management Management Roadmaps

page 21
LEANPD STORY PROBLEM SOLUTION TOOLS
 LEANPD V1 (2009 -- present): A governance
TEOA-E Capabilities model for NPD projects driving the project
selection and investment to do the right projects

0 I II III IV

Portfolio
Development Requirements Engineering
Management
Execution Management Excellence

Resource Growth Strategy

Digital
Management & Integrated Project
Engineering &
Roadmaps Management
Operations

Star Ratings
A consistent way to measure and track improvements across sites

March 2012
 RISK MITIGATION

• Peer Reviews
– Highest impact and highest risk projects routinely reviewed
– Involve discipline leaders from all BU’s
– Share expertise and various approaches cross industry
– Leverage TE Technology Group on key challenges
– Brainstorming to identify alternate concepts
• Design of Experiments
– Link major processing parameters to performance
– Reduce product and process variation
– Optimize performance and consistency
– Use knowledge to Control the Processes
• Simulation
– Evaluation a multitude of design options quickly
– Elimination of many prototype iterations
– Improved Failure Mechanism understanding
– Reduced Time to Market
– Recent phenomenal advances in techniques
• Advanced Prototyping
– Customer confirmation early/ before capital commitment
– Uncover previously unknown failure modes
– Evaluate product early in the prescribed environment
– Utilize rapid prototyping techniques
• Additive 3D printing
• Laser cutting
• Chemical etching
• Stereolithograhy
 CRITICAL PARAMETER MANAGEMENT

• SAFE LAUNCH/ Capability Analysis

– Prove out run rate and quality during Industrialize Phase
– Document short run and long run capability during Industrialize Phase
– Ensure statistical equivalence when starting up at production site
– Manages the transition of processes to production

• Statistical Performance Evaluations

– Monte Carlo Simulations based on experience
– Leverage true populations from similar pre-existing processes

• Measurement System Analysis

– Eliminate escapes
– Eliminate scrapping good product
– Prove out measurement capability in Industrialize Phase
 BILL OF PROCESS

Bill of Process

• Helps to roll design changes into manufacturing processes

• Documents the process steps and attributes for each

• Places each sub-process under change management

• Documented run rates and quality output levels

• Traceability of excursions
 TE ENGINEERING EXCELLENCE EVOLUTION

STAGEGATE PROCESS:
• PAC governance structure
• Development Pipeline optimization
• Standard development process
DIGITAL DEVELOPMENT EXCELLENCE:
LEANPD V1 DESIGN &
• A global engineering community sharing and
MANUFACTURING
implementing best practices
LEANPD V2 • Elimination of functional gaps that exist globally
in our execution
• Productivity with focused technical ownership
DIGITAL DESIGN & MANUFACTURING:
• 3D driven development & manufacturing
• Improved development speed and accuracy,
flexibility, and yield
ENGINEERING
• High mix/low volume manufacturing model
EXCELLENCE
LEANPD V2:
• Streamlined systems and processes
WORLD CLASS • Project Management excellence
ENGINEERING • Cross-functional development excellence
 LEANPD V2 PROGRAM FOCUS
Project Risk Assessment
Streamlining Management & Mitigation
Simplifying Establishment Improved
processes and of a global functional
systems to project approach and
match project management execution of
community &
demand toolbox product
…aligns work efforts
development
…promotes cross-
to project risks and functional, …seamlessly
LEANPD V2 challenges; projectized behavior integrates the digital
streamlines data and to drive continuous advantage into the
processes to increase development in development process;
efficiencies; enhances Core Teams; drives a rigor of best
customer experience achieve
practices through
and increases product predictability by
getting it “right first peer reviews, centers
development speed of excellence, etc.
time;” establish a
PMO to manage within the Global
and optimize Engineering
projects, then Community
globally share best FOCUS
PM practices
 THE ‘Sausage Factory’

OUTPUT
INPUT
MARKET CONFIDENCE
STRATEGY
BUSINESS

PMT
SOURCING CONFIDENCE
PAC
GOVERNANCE
G0 G1 G2 G3 G4 G5

DEFINITION CONCEPT DESIGN PILOT ROLL OUT

PORTFOLIO
STRATEGY

PMO
PERFORMANCE CONFIDENCE

CORE TEAM
MANUFACTURING CONFIDENCE
EXECUTION

PEER SIMULATION MBD DOE

REVIEWS