An evaluation of the NPD process from a lean evaluation of the NPD process ... New product development is a complex process ... new product development process from a lean perspective.

Download An evaluation of the NPD process from a lean   evaluation of the NPD process ... New product development is a complex process ... new product development process from a lean perspective.

Post on 06-Mar-2018

218 views

Category:

Documents

6 download

TRANSCRIPT

  • An evaluation of the NPD process from a lean perspective

    a master thesis at Oriflame

    Dan Mller and Jonathan Viklander

  • Copyright Dan Mller and Jonathan Viklander

    Department of Industrial Management and Logistics Faculty of Engineering at Lund University ISRN-LUTMDN/TMT--5719SE Printed in Sweden by Media-Tryck, Lund University Lund 2011

  • III

    Abstract

    Title: An evaluation of the NPD process from a lean perspective at Oriflame Cosmetics

    Authors: Dan Mller and Jonathan Viklander

    Supervisors: Everth Larsson at LTH, Anders Fenger-Krog at Oriflame, and Robin Exman at Deloitte Consulting

    New product development is a complex process for bringing new products to the market. While manufacturing is a very repetitive process, the new product development has to be more flexible as the same product is never developed again. Therefore the theory behind lean manufacturing is not applicable in new product development. The purpose of this study is to propose improvements to Oriflames new product development process from a lean perspective. This means that instead of lean manufacturing, a more dynamic development method extracted from Toyota development system is used as a theoretical framework for this thesis. This method is called lean product development.

    From the theoretical base of lean product development a model has been developed to measure the lean maturity level of a companys new product development. This model has been named Lean product development maturity model by the authors and consist of 13 questions (One for each principle of lean product development) that will try to cover the foundation of a lean product development process. Each question has been given 6 statements that cover different levels of maturity for each principle. The model was used by the authors to do a gap analysis on Oriflames new product development process to find out what level it is today and which level Oriflame should aim for in the future. The gap was found to be quite big in almost every principle and further research on how to improve the process to reach higher levels was conducted.

    Oriflames new product development process is formed as a stage and gate process with different stages where activities are performed and gates where decisions should be made whether to go further or not with the development of the product. Oriflame has six different product categories and develops about 400 new products each year. When these products are

  • IV

    being developed, they are divided into different process templates depending on innovation level of the formula and the packaging.

    To get an understanding of the process and its problems, the authors held interviews with process managers and a comprehensive survey, in form of a questionnaire, was sent out to the people working in the process. The survey was created based on the 7 wastes and the 13 principles of lean product development. From this data collection, eleven areas of improvement were found; such as continuous improvement, employee development, and organizational learnings.

    The authors then produced ten solutions to overcome the areas of improvement. Each improvement suggestions impact on the principles was considered to understand the benefit of the improvement. Consideration was also done on how costly in resources (such as time, people and money) it would be to implement. Three groups where made out of the ten solutions, were one group is facilitator for the rest of the solutions, one group contains important solutions and one group contains uncertain solutions. Recommendations are presented in the end of the report for Oriflame to consider.

  • V

    Sammanfattning

    Titel: En utvrdering av NPD processen frn ett lean-perspektiv p Oriflame Cosmetics

    Frfattare: Dan Mller och Jonathan Viklander

    Handledare: Everth Larsson p LTH, Anders Fenger-Krog p Oriflame och Robin Exman p Deloitte Consulting

    Produktutveckling r en komplex process vars syfte r att fra nya produkter till marknaden. Tillverkningsprocesser r ofta mycket repetitiva medan produktutvecklingsprocessen mste vara mer flexibel d tillvgagngssttet oftast blir produktspecifikt. Detta leder till att teorin fr lean produktion inte passar fr produktutveckling. Syftet med denna studie r att fresl frbttringar fr Oriflames produktutvecklingsprocess frn ett lean-perspektiv. Fr att kunna gra detta s uteslts teorin fr lean produktion och istllet anvndes en mer dynamisk utvecklingsmetod, som har sitt ursprung i Toyota development system, som teoretiskt ramverk. Denna metod kallas fr lean produktutveckling.

    Med utgngspunkt i teorin om lean produktutveckling s utvecklades en modell fr att mta mognadsnivn p ett fretags produktutvecklingsprocess. Denna modell kallar frfattarna fr Lean product development maturity model och den bestr av 13 frgor (en fr varje princip inom lean produktutveckling) vilka ska representera grunden fr lean produktutveckling. Varje frga har tilldelats sex stycken pstenden som vart och ett representerar olika niver av mognad fr varje princip. Modellen anvndes av frfattarna fr att genomfra en gap-analys p Oriflames produktutvecklingsprocess. Gapet bestod av vilken niv Oriflame befinner sig p idag och vart de vill n i framtiden. Resultatet blev stora gap inom de flesta principerna vilket ledde till att ytterligare studier genomfrdes fr hur processen ska kunna frbttras s att gapen krymper.

    Oriflames produktutvecklingsprocess r utformad som en stage and gate-process vilket innebr att aktiviteter utfrs under definierade stages och beslut angende huruvida produktutvecklingen ska fortstta eller avslutas tas i gates. Oriflame har sex olika produktkategorier och utvecklar cirka 400 nya produkter varje r. Nr produktutvecklingen startar s delas

  • VI

    produkterna in i mallar beroende p innovationsnivn p frpackningar och formulering.

    Fr att skapa frstelse fr processen och dess problem s hlls intervjuer med Process managers och en omfattande underskning, i form av en enkt, gjordes p de som jobbar i processen. Underskningen var baserad p 7 waste och de 13 principerna fr lean produktutveckling. Frn den data som samlades in identifierades 11 stycken problemomrden vilka till exempel var stndiga frbttringar, personalutveckling och lrande i organisationen.

    Frfattarna anvnde sedan teorin fr att fresl tio stycken frbttringar till problemomrdena. Varje frbttringsfrslags pverkan p principerna kontrollerades vilket gav en indikation p hur stor nyttan av frslaget var. Implementeringskostnaden av varje frbttringsfrslag i form av tid, arbete och pengar togs ocks in fr vervgande. De tio frbttringsfrslagen grupperades utifrn detta in i tre grupper; frslag som krvdes fr att andra frslag skulle vara genomfrbara, viktiga frbttringar frn teorin bakom lean produktveckling och frbttringar som har hgre grad av oskerhet. Rapportens slut bestr av rekommendationer som Oriflame br vervga.

  • VII

    List of figures

    Figure 1.1 Share of total sales per market (Viklander & Mller, 2010).......1

    Figure 1.2 Share of total sales per product group (Mller & Viklander,

    2010) .......................................................................................................................2

    Figure 1.3 Report disposal (Mller & Viklander, 2010) ................................7

    Figure 2.1 Model of the practical approach used in this master thesis

    (Mller & Viklander, 2010) ............................................................................... 21

    Figure 3.1 Different perspectives on NPD (Trott, 2008) ........................... 27

    Figure 3.2 The innovation diamond (Product Development Institute Inc.,

    2010) .................................................................................................................... 28

    Figure 3.3 Stage-Gate model (Cooper, 1998, p. 105) .............................. 30

    Figure 3.4 Toyotas different operations seen as one system (Holmdahl,

    2010, p. 54) .......................................................................................................... 33

    Figure 3.5 4P in Toyota production system (Liker, 2003, p. 36) ............. 36

    Figure 3.6 Millards seven LPD wastes (Millard, 2001) ............................ 45

    Figure 3.7 A model of Toyotas Set based concurrent engineering (Sobek

    II, Ward, & Liker, 1999) ..................................................................................... 49

    Figure 3.8 PDCA model (Wikipedia, the free encyclopedia, 2010). ..... 51

    Figure 3.9 LAMDA model (Kennedy, Harmon, & Minnock, 2008). .... 52

    Figure 3.10 Multiple options help to understand the design space (Liker

    & Morgan, 2006a, p. 284). ................................................................................ 54

    Figure 3.11 Closed-loop Lean Knowledge Management (Kennedy,

    Harmon, & Minnock, 2008) ............................................................................. 61

    Figure 3.12 LPD process as described by Lars Holmdahl (Lean Product

    Development P Svenska, 2010, p. 101) .......................................................... 62

    Figure 3.13 LPDs five phases (Holmdahl, 2010, p. 102) ........................... 62

    Figure 3.14 The knowledge value flow (Holmdahl, 2010, p. 103) ............ 64

    Figure 3.15 Example of process mapping (Mller & Viklander, 2010 from

    Ljungberg & Larsson, 2001) .............................................................................. 69

    file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701826file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701827file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701827file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701828file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701829file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701829

  • VIII

    Figure 3.16 A model on how to manage the process organization as

    Ljungberg & Larsson describes it (Mller & Viklander, 2010 from

    Ljungberg & Larsson, 2001). ............................................................................. 71

    Figure 3.17 The process enterprise maturity models enablers and

    capabilities (Hammer, 2007) ............................................................................ 77

    Figure 3.18 An example from the levels in Hammers PEMM model ....... 78

    Figure 3.19 P&Gs Initiatives Diamond ........................................................ 84

    Figure 3.20 P&Gs SIMPL process ................................................................ 85

    Figure 5.1 Description of color codes used for visualization (Mller &

    Viklander, 2010). ................................................................................................ 91

    Figure 5.2 NPD organization chart (Lerenius, Introduction to NPD

    Process, 2010) ..................................................................................................... 94

    Figure 5.3 Management of the NPD process at Oriflame (Mller &

    Viklander, 2010) ................................................................................................. 97

    Figure 5.4 The stages and gates (Mller & Viklander, 2010 from

    Lerenius, 2010) ................................................................................................... 98

    Figure 5.5 Stages with activities (Mller & Viklander, 2010 from

    Lerenius, 2010) ................................................................................................... 98

    Figure 5.6 The new innovation part of the process (Mller & Viklander,

    2010) ................................................................................................................... 102

    Figure 6.1 Gaps sorted with the largest gap to the left (Mller &

    Viklander, 2010) ............................................................................................... 107

    Figure 6.2 Spider chart - Gap analysis (Mller & Viklander, 2010) ....... 107

    Figure 6.3 The areas of improvements for the NPD process (Mller &

    Viklander, 2010) ............................................................................................... 118

    Figure 7.1 NPD projects with higher innovation level .............................. 127

    Figure 7.2 Management of the NPD process at Oriflame

    (Recommendation) ........................................................................................... 128

    Figure 7.3 Photo of how the visualization could look like, through using a

    board and post-it notes. (Quesada Allue , 2009). ........................................ 129

    Figure 7.4 Visual planning boards (Holmdahl, 2010, p. 129) ................. 130

    Figure 7.5 Idea note Post-it (Mller & Viklander, 2010) ...................... 131

    Figure 7.6 Idea Pick Chart (Mller & Viklander, 2010) ........................... 132

    Figure 7.7 Improvement Board (Mller & Viklander, 2010) ................... 133

    Figure 8.1 Cost vs. benefit of the improvements ....................................... 141

    file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701846file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701846file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701856file:///C:/Users/jonathan.viklander/Dropbox/Examensarbete/10%20-%20Rapport/Report%201.6%20-%20Paper%20print.docx%23_Toc313701856

  • IX

    List of tables

    Table 3.1 The traditional roles of project leaders and group managers. . 56

    Table 3.2 The chief engineer system-roles of project leaders and group

    managers. ............................................................................................................. 57

    Table 5.1 Number of projects divided by level of innovation .................... 93

    Table 5.2 Number of employees divided by category and function ......... 94

    Table 6.1 Today state and problems for principle 1: Establish customer-

    defined value to separate value added from waste ...................................... 104

    Table 6.2 Problems identified from interviews with NPD process

    managers - Part 1 .............................................................................................. 105

    Table 6.3 Problems identified from interviews with NPD process

    managers - Part 2 .............................................................................................. 106

    Table 6.4 List of gaps from the LPD maturity model. Sorted by size of gap

    ...................................................................................................................

Recommended

View more >