Philips Sonicare Reduces R&D Costs by 30% with Agile PLM CHALLENGES / OPPORTUNITIES Increasing product diversity and supply chain complexity Bill of M
{"Image DocumentName": "Philips Sonicare Reduces R&D Costs by 30% with Agile PLM", "Image ImageDescription": "COMPANY OVERVIEW. Philips Oral Healthcare has become one of the most successful businesses in Royal Philips Electronics, one of the world s biggest electronics companies and Europe s largest. Industry: Consumer Goods. CUSTOMER PERSPECTIVE. Our inventory performance over the last year since we really started using Agile has gone up almost 100% in terms of inventory turns. Mark Johnson, Vice President, Supply Chain Operations. CHALLENGES / OPPORTUNITIES. Increasing product diversity and supply chain complexity. Bill of Materials increased 350% New Product Programs increased 4x. Number of suppliers doubled. Overcome inefficiencies in product development and life cycle management that slowed products to market. Create formal support for marketing claims that differentiates Sonicare from competition. RESULTS. Complete product record from concept to end of life within Agile. Reduced manufacturing and R&D costs by 30% Improved inventory performance - Inventory turns increased 100% in a year after implementation. Cycle times, change control, raw material releases now accurately measured and reduced to hours. Research documentation associated with marketing claims now within product record. Royal Philips Electronics group revenues approximately  36 billion. 159,000 employees in 60 countries. Five product divisions: Medical Systems, Lighting, Semiconductors, Consumer Electronics, and Domestic Appliances. Oral Healthcare (POHC) is a business unit in Domestic Appliances. Maker of the Philips Sonicare brand power toothbrush. Over 15 million users. Brand most recommended by U.S. dental professionals. Major markets include Japan, UK, Germany. Approx 600 employees. Key drivers of the Philips Sonicare Brand: Speed to market, innovation, focus. Why was Agile implemented? Increasing product diversity and supply chain complexity. Quality system compliance. Drive to greater efficiencies in product development and life cycle management. Initial implementation in Implemented across 7 locations. Headquarters in Snoqualmie, Washington. Manufacturing/distribution in China, Washington State and Illinois. Development in Washington State, Austria, and The Netherlands. Solution: Deployed Agile Product Collaboration to manage product development, speed products to market, capture innovative investments faster, and focus on measurable results. Results: Complete product record from concept to end of life within Agile. Manufacturing and R&D costs reduced by 30% Improved inventory performance - Inventory turns increased 100% in a year after implementation. Cycle times, change control, raw material releases now accurately measured and reduced to hours. Research documentation associated with marketing claims now within product record. SOLUTION. Implemented Agile Product Lifecycle Management. Agile Product Collaboration to manage product development, speed products to market, capture innovative investments faster, and focus on measurable results.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}