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Introduction to Lean Product and Process Development LeanPPD Consortium l d www.leanppd.eu 1

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Introduction to Lean Product and Process Development

LeanPPD Consortium

l dwww.leanppd.eu

1

LeanPPD Project & Consortium

• EU funded project• 4 year (Feb 09 – Feb• 4 year (Feb 09 Feb

13)• 7,8 ML€ budget7,8 ML€ budget• 12 European partners• www.leanppd.euwww.leanppd.eu

2

How to live (or survive)?

• Next Ricardo’s competitive advantages…

• Keynesian policies…

• Schumpeterian strategies…

• Lean approaches…

3

Lean? Where? When?

• Japan– 1945, economic post-

war crisiswar crisis– 1965, market

liberalizationliberalization– 1970ies, petroleum

crisis & gas emission regulation

– 1990ies, local financial crisiscrisis

– 2008, global financial crisis

4

A proud history of improvements

Henry Ford (1863 – 1943) Shigeo Shingo (1909 – 1990)

Kiichiro Toyoda (1894 – 1952) Jeffrey K. Liker

Taichi Ohno (1912 – 1990)

James P. Womack & Daniel Jones

5

Source: www.takt.com & www.lean.org

Lean is…

A i d f hi ki i h• A mindset, or way of thinking, with a commitment to achieve a totally waste-free operation that’s focused on your customer’s success

• It is achieved by simplifying and continuously improving allcontinuously improving all processes and relationships in an environment of trust, respect and full employee involvementemployee involvement

• It is about people, simplicity, flow, visibility, partnerships and true value as perceived by the customer

Source: David Hogg, High Performance Solutions, 2008Lean means economical,

thin, more value with less work

6

work

But isn’t it about production?

L P d i d i i idl f h• Lean Production cuts costs and inventories rapidly to free cash, which is critical in a slow economy

It also supports• It also supports growth by improving

d i i dproductivity and quality, reducing lead times and freeing huge amounts of resourcesesou ces

Source: Principles of Lean Thinking, 2004

7

Lean Enterprise

Source: xrtraining.com, 2009

8

2009

While the world is changing…

MASS CUSTOMIZATION

REDUCED TIME TO MARKET

GLOBALIZATION

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...maybe we are missing something?

P d t i h d• Product is changed– Customer and market demands for value creation incorporating

sustainability, cultural aspects and customisation– Production of affordable & sustainable (social, economic, environment)

products requires effective lean design and engineering• Product Design and Development (PD) is more and more complexg p ( ) p

– Design stage impacts whole product lifecycle– 80% of manufacturing cost determined in design stage

Time available for PD is decreasing– Time available for PD is decreasing– Complex-design products not easy to make lean in production stage

(causing waste & non-value added activities)

• There is much more opportunities for competitive advantage in PD than anywhere else!

10

The “time” variable

Reduced TTM

Today 40% 60%Design and DevelopmentProduction

30 - 40%

15% 85%Yesterday

11

The “time-space” variable

Suppliers

Product Manager

Co-designers

12

Then: Lean Thinking itself might be improved

Lean Thinking

Lean Manufacturing(Shopfloor)

Lean Enterprise(management)

Lean Product (and Process) Development√ X√Definition exists

Value Stream Mapping(VSM)

Definition exists Value Stream Mapping

(VSM)

New ideaDedicated tools not exist

No VSM

√ X√Eliminates Waste

Tools exist (e.g. JIT, Kaizen, Jidoka)

Models available

Eliminates WasteCreates Value

Tools exist (e.g. 5’M)Models available

No full models availableEngineering based

Models available Technical & Engineering

based

Models available Management based

13

Lean Thinking in Product Design & Development

• Lean principles in Product Development– Lean objective is to identify Value and Non-Value

Add d A ti iti (VAA) i d t li i t NAdded Activities (VAA), in order to eliminate Non-Value Added (NVA)VAA in Product Development is any activity that– VAA in Product Development is any activity that would result in customer requirements being met (or exceeded)met (or exceeded)

– Engineering decisions in product development must be based on proven knowledge and experiencep g p

– Failure to apply proven knowledge and experience could result in product and process redesign (NVA)

14

Taking care of the fact that...

Whil f i i i i i l b d i i• While manufacturing is a repetitive transactional-based activity, which might concretize the decision taken by others

• Product Design and Development is a recursive and reiterative oduct es g a d e e op e t s a ecu s e a d e te at eintellectual activity, where designers and engineers might find solutions for given problems

Design and Development mean defining analyzing testing– Design and Development mean defining, analyzing, testing, comparing, choosing, specifying, documenting, etc.

Concept

Requirements

System Design

Detail Design

15

Specs

Lean PD literature

16

Toyota Lean PD System

17

Toyota Lean PD System

5. Develop a Chief Engineer System to Integrate Development from Start

11. Adapt Technology to Fit your People and Processg

to Finish6. Organize to Balance Functional

Expertise and Cross-functional Integration

and Process12. Align your Organization through

Simple, Visual Communication13. Use Powerful Tools for Standardization

and Organizational Learning7. Develop Towering Technical

Competence in all Engineers8. Fully Integrate Suppliers into the

Product Development System

and Organizational Learning

9. Build in Learning and Continuous Improvement

10. Build a Culture to Support Excellence and Relentless

1. Establish Customer-Defined Value to Separate Value-Added from

ImprovementSource: Morgan & Liker, 2006

1. Establish Customer Defined Value to Separate Value Added from Waste

2. Front-Load the PD Process to Explore Thoroughly Alternative Solutions while there is Maximum Design Space

3. Create a Leveled Product Development Process Flow

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3. Create a Leveled Product Development Process Flow4. Utilize Rigorous Standardization to Reduce Variation, and Create

Flexibility and Predictable Outcomes

P1: Establish customer-defined value to separatevalue-added from waste

• Main objectives of LeanR W t ( t d ti )– Remove Waste (cost reduction)

– Maximise Value (meet/exceed customer requirements)

• Waste – Any activity that takes time and money but does not add value from the

customer’s perspective

• Value Added Activity• Value Added Activity– Any activity that transforms or shapes raw material or information to

meet customer requirements

l dd d• Non-Value Added Activity– Any activity that takes time, resources, or space but does not add value

to the product itself

19

Value in Product Development

Value Added

Design and testing

10%

Wasted time

30%

Wasted time

Search for dataWaitinf for dataData translationWrong data 60%Wrong dataData coding

Non Value Added, but needed

Specification

20

SpecificationCoordinationSource: PLM Alliance, 2007

Waste in manufacturing

• Seven types of waste– Over Production (without demand)– Waiting (for next step of production)– Transportation (un-required movement of products)– Inventory (components, WIP, finished product not

being processed)– Motion (un-required movement of people/equipment)– Over Processing (creates extra activity as result of

d i )poor design)– Rework / Defects (inspecting, repairing, redesigning)

21

Waste in Product Development

• Two major types– Waste associated with the process of Product

D l t it lf ( k l dDevelopment itself (e.g. knowledge, communication, and resource)

– Waste created by poor engineering that results in low levels of product or process performance thenlow levels of product or process performance, then embodied in the same product design (e.g. complex design, poor manufacturing processes compatibility, g , p g p p y,and custom parts)

22

Waste in Product Development

Strategy Wastes

Over ProductionToo many products

Over ProductionToo many projectsInappropriate processingW j t

Over / I i t

Wrong projectsFailure to identify and manage design riskTechnology acquired but not usedInappropriate

Processing

Technology acquired but not usedPoor make versus buy decisions resulting in inability to deliverP l t d t di f t dPoor long-term understanding of customer needsLack of focus

23

Waste in Product Development

Organizational WastesWrong organization

Poor process focus and visibilityRoles not clearorganization

structureRoles not clearPoor team arrangements (including geography)

Inappropriate Poor training and skills developmentpp pindividuals Inappropriate behavior

Lack of resourcesLack of appropriate number of correct human resources

Lack of resourcesPoor technology take up

Untapped human Poor utilization of peoplePoor representation of different function on Integrated pp

potentialp g

Project TeamsLack of continuity (of people)

Inappropriate Poor process managementInappropriate processes

Poor process managementLack of process knowledge capability

24

Waste in Product Development

Operational WastesOperational Wastes

Over

Over specification - over designedFailing to optimise design

Engineering / Production

Too much and wrong timing for detailToo much detail and unnecessary infoRedundant development (re use not practised)Redundant development (re-use not practised)Information created too earlyLate in delivery

Waiting Waiting to process informationWaiting for information (e.g. inability to deliver prototypes quickly and correctly)prototypes quickly and correctly)Unavailable or of suspect quality

25

Waste in Product Development

Operational WastesOperational WastesMultiple sources and transport needsCommunications failure and non-conformanceLack of standardisation of processesLack of use of standard parts and / or lack of commonality

Transportation

commonalityLack of common prioritisationInformation formats - Lack of common/compatible standardsInformation systems – Incompatibility, leading to manual transfer waste and conversion wastemanual transfer waste, and conversion wastePoor interface control or management of design data among departments

26

Waste in Product Development

Operational WastesOperational Wastes

Inventory

Unnecessary details and too much informationIncomplete content

InventoryPoor configuration managementPoor parts codification Information pushed to wrong people

Motion

Information pushed to wrong peopleUnnecessary manual intervention due to poor system connectivityToo many data interfaces

27

Waste in Product Development

Operational WastesOperational WastesUnnecessary development activitiesUnnecessary serial processingOut of sequence working (due to poor integration)Out of sequence working (due to poor integration)Inappropriate changes (changes not customer driven or not of benefit to business)Re-work due to changing priorities or requirements

Over /

Excessive verificationOver authorisationPoor/ bad decisions affecting future

Inappropriate Processing

Excess /custom processingToo many or too little iterations / cyclesWorking with wrong/incomplete informationProcessing of defective informationProcessing of defective informationInformation created / passed too early/lateData acquired then not usedUnnecessary data conversionsUnnecessary data conversionsPoor parts re-use Over or inappropriate tolerancingUse of inappropriate technology 28

Waste in Product Development

Operational WastesOperational WastesQuality lacking or suspectConversion errorWrong levelIncomplete, ambiguous, inaccurate designTolerance exceeded

Reworks / f

Failure to understand and capture requirementsPoor design for X - manufacture, assembly, cost, reliability, and supply

Defective Poor process outputs (poor specification , unclear requirements)Poor configuration managementP l iPoor planningPoor supplier identificationUse of immature technologyInappropriate use of toolsLack of knowledge capture and reuse

29

P2: Front-load the PD process to explore alternatives thoroughly

30

Something that might be considered from the early

stages…

Cumulated Incurredcosts

Cumulatedcosts

Acruedcosts

Design Production Distribution & Use

31

Something that might be considered from the early

stages…

Opportunities incostreductions

Change costsDoing it better

first is convenient!

Concezione Product Design Process Production Use

32

odu gand

Development

oDevelopment

odu o U

Concurrent Engineering

• Integrated product development approach– Emphasis on the response to customer expectations by

producing better cheaper and faster productsproducing better, cheaper and faster products– Multi-disciplinary teams

• Sharing and exchanging required knowledge and information g g g q gin such manner that decision-making proceeds with emphasis on simultaneous consideration during the design stage of all other product life cycle aspectsof all other product life cycle aspects– As well as performing parallel activities– The individual team member is responsible throughout allThe individual team member is responsible throughout all

the project for the product development

33

Concurrent Engineering

Product EngineerEngineer

Logistic

Manufacturing

Purchase

gEngineer

Marketing

FinanceConcurrent

Product l

Production

Development

Services Engineer

Customer

34

Services EngineerSupplier

Set Based Concurrent Engineering

• SBCE is the core of Toyota Product Development System (TPDS)D i ti i t ti SBCE b i• Design participants practice SBCE by reasoning, developing, and communicating about sets of solutions in parallel and relatively independentlysolutions in parallel and relatively independently– As the design progresses, they gradually narrow the sets of

solutions based on additional information from d l i i l i d ff d hdevelopment, testing, simulation, trade-off, customer and other participant sets until they agree on one solution

– It is product development in a knowledge based t s p oduct de e op e t a o edge basedenvironment

• Defined by Allen C. Ward (1960-2004)

35

Set Based Concurrent Engineering

(A) “Point-Based” Concurrent Engineering (B) “Set-Based” Concurrent Engineering

Set ofFeed back

Re-Selection

(A) Point Based Concurrent Engineering

Set of Design

(B) Set-Based Concurrent Engineering

Set of Design

Final Design

Evaluate against trade-off curves

Eliminate infeasible solutions Detail the designDetail the design

Combine in different ways

36

Main elements of SBCE

C id b d lt ti d d ll• Consider broad alternatives and gradually narrowing them, till the optimal choice and selection

• Chief Engineers• Cross-functional team• Team communication• Working culture• Knowledge generation and re-use

Selection of set of solutions and– Selection of set of solutions and encouragement to perform several simulations, develop several prototypes and test them –leading to generation of valuable knowledge

– This knowledge is captured formally for its re-use in future projects

37

SBCE Concept design level

Chief Engineer Vision : (vehicle concept design in a written document)

ef e

ngin

eer

Body Eng Chassis Eng etc

Chi

e

Stylists Develop Around 12 Artistic Concepts in 2-D

Chief Engineer: Approve the New Vehicle Concept(sketch and specification) After considering requirements

(e.g. passengers ergonomics, marketing, etc).

38

SBCE System design level

Stylist:6-10 Concepts and 1/5 Scale-Clay Prototypes

engi

neer

Planning Studies of:-•Typical cross sections

•Joint definition•Preliminary parts layoutBody Eng: Kentouzeu

Chi

ef e

ManufacturingEvaluations •Preliminary parts layout

•Wire harness •Crash analysis

•Etc

Body Eng: KentouzeudrawingsInput

Evaluations

Narrow Set of Design to 2-3 Concepts for 1:1 Scale-Clay Prototypes

T t bli t

Design EngEvaluations

CAD

Toyota public event

One final Body Eng:CAD Drawing

One final design Concept

Body Eng: Kentouzeudrawings

V hi l

39

Vehicle Development

UnitsFeedback & Approval Body Structures Design Plan:

kozokeikaku (K4)

SBCE Detail design level

gine

er

Body structures design plan: (K4)

Chi

ef e

n

Detail design(body panels &structural components)

Drawings sent to die Eng

(body panels &structural components)

Stamping Soft-Tool dies produced

Fit & function are adjusted

Hard-Tool dies Produced into

a screwBody

40

Final designFull vehicle: Build&

Test

ody

ICT for SBCE

Collaborative Product Development and Management - CPDM

EDM PDM PLM Collaborative desktop

Authoring tools - CAx

RP/RM - CAMCAPP

CAD 2D

RP/RM - CAM

CAD 3D

DMU VRCAE VRCAE

41

ICT for SBCE

‘85‘70 ‘95 ‘00

Drawing based Feature based Process based Knowledge basedDrawing based Feature based Process based Knowledge based

P t i dParametric and solid modelling

CAD 3DCAD/CAM/CAPP

IntegrationVirtual Prototypes

Knowledge based

engineeringCAD 2DDesk

42

Source: Adapted from an of IBM, 2002

ICT for SBCE

CAM RPCAMCAECAPP Process Design,

Engineering and Planning

CAD

RPRM

RTRC

Physical Model

ModelGeneration

RC

Digitalmodel Visualization

DMUCAS VR

VPVirtual Model

REDrawing

CADDigitalization

Source: Adpated from an idea of the Kaemart Group

43

P3: Create a leveled product development process flow

A L PD i K l d W k J b Sh hi h• A Lean PD system is a Knowledge Work Job Shop, which a company can continuously improve by using adapted tools used in repetitive manufacturing processes to eliminate waste and synchronize cross-functional activities

44

Value stream mapping

Source: http://office.microsoft.com/en-us/visio/HA101130241033.aspx

45

Value stream mapping in PD

product flow

=information flow Lead time=30.1 days

Processing time=11.6 hours

Product developmentT Project manager Customer

=product flow

Team oject a age

Product

Parts supplier Parts shipments

oduct

shipments

Requirements Product definition BOM Hardware Testing &RequirementsDefinition

Product definitionand layout

BOM definition Assembly

Build

Testing &validation

1.1 hours

3.5 days

2.4 days

16.3 days

6 9 hours

9.7 days

0 8 hours

0.6 days

0 4 hours1.1 hours 2.4 days 6.9 hours 0.8 hours 0.4 hours

Source: Fiore, 200546

Value network analysis

V l N t k Di d• Value Network Diagram and Social Network Analysis – Ellipses represents roles– Colours of links indicate

frequency of communication– Links are labelled and given a

single arrow head to showsingle arrow head to show nature and direction of the value transfer

– QuestionsQuestions• Who do you communicate

with? How often?• What do you send/share y /

and to whom? What do you need and from whom?

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Value network analysis

R l f l i / i• Roles as agents of value creation / consumption– Flow Objects can be tangible or intangible and can include wisdom,

knowledge, information and physical objects– Flow Objects may be customer deliverable either to next in value chain

or ultimate end customer– Value can be created from intangibles and it may be negotiable throughValue can be created from intangibles and it may be negotiable through

an exchange mechanism

• Assess health of network by subjective measure or by comparison with industry benchmarkswith industry benchmarks– Coherent logic and reciprocity– Asset utilisation– Healthy balance of tangibles and intangibles– Are there dead-links, missing links?– Are exchanges fair?Are exchanges fair?

48

Source: Allee, 2008

P4: Utilize rigorous standardization to reduce

variation & create flexibility• A Lean PD system creates higher-level system

flexibility by standardizing lower-level tasksy y g– Design standardization: common architecture,

modularity, and reusable or shared componentsy p– Process standardization: standardize tasks and

work instructions, from design till manufacturing processes

– Engineering skill set standardization: the right t ffi d l i t fl ibl dstaffing and program planning guarantee flexible and

skilled engineers

Ad ti f l d th d l i• Adoption of rules and methodologies

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Design methologies and rules

• TRIZ e Problem solving tecniques• Quality Function Deployment• Value Analysis and Engineering• Design to Cost and Target Cost Management• Design for X and Design to Cost• Modular design e Platform design• Design of Experiment, Robust Design, Process Capability• Clustering and Group Technology• Variery Reduction Program• Risk analysis, FMEA e FMECA• Lifecycle Analysis, Engineeering and Assessment

50

Design for X

51Source: Ulrich and Eppinger, 2006

P5: Develop a Chief Engineer system to integrate

development

• Chief Engineer is responsible f d t ll thfor and can tell you the exact status of any given projectproject– The Chief Engineer is not just a

project manager but a leader d h i land technical systems

integrators, he/she is the glue of the PD process

– It is to this individual that difficult decisions are brought for resolutionfor resolution

52

P6: Organize to balance functional expertise and

cross-functional integration

• Integrated traditional silos th h th Chi f E ithrough the Chief Engineer

• Module development TeamsTeams

• Using obeya (“big room”) system to enhance cross-system to enhance crossfunctional integration

53

P7: Develop towering technical competence in all

engineers

• Technical excellence – Rigorous hiring process – Career path for technical

skillsskills• Principle of genshi

genbutsu (actual partgenbutsu (actual part, actual place): get your hands dirty and go directly to see for yourself how the work is getting done and what the problems arewhat the problems are

54

P8: Fully integrate suppliers into the PD System

• Involve suppliers from the earliest stages in concept development ofconcept development of a product – Presourcing g

arrangements – Guest engineers

• Suppliers are valued for their technical expertise in addition to theirin addition to their parts-making capability

55

P9: Build in learning and continuous improvement

56

P10: Build a culture to support excellence and relentless improvement

57

P11: Adapt technology to fit your people and process

58

P12: Align your organization through simple, visual

communication

59

A3 sheets

60

Source: Morgan & Liker, 2006

P13: Use powerful tools for standardization and

organizational learning

61

LeanPPD Contributions

• Identify the added value activities in PD through surveying and analyzing industrial best practicesD l t l f PD V l M i d L• Develop tools for PD Value Mapping and Lean Assessment

• Develop an approach for knowledge acquisition re use• Develop an approach for knowledge acquisition, re-use and creation to enable a Knowledge Based Engineering (KBE) system to enable a leanEngineering (KBE) system to enable a lean development process and lean product designs

• Propose a route map for the incorporation of the Lean p p pPD into organizations

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63

64

LeanPPD Value Mapping( l d C )(Tool Under Construction)

65

LeanPPD Assessment(O Q )(Open Questionnaire)

66

LeanPPD Assessment( l d C )(Tool Under Construction)

1. Focus on Customer Value and Value Stream Mapping (VSM)

Select Key Performance Indicators Qualitative (measured through a survey)

Quantitative (fact based)

Qualitative (measured through a survey)

Quantitative (fact based)

Level of customer participation in the development of productsIs value stream mapping technique used accurately in PDPercentage of products that used inputs from the customerPercent of Lead time reduction after using the VSM technique

1 N i i i d i h d d l h

1. Level of customer participation in the development of productsFill Qualitative Key Performance Indicators

1 2 3 4 5

1 – No customer participation during the product development phase2 – Customers are only consulted at Alpha and Beta Testing3 – Customers are consulted before starting the and at testing phase4 – Customers provide feedback in an informal way5 - Customers are involved in every step of the product development

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LeanPPD KBE( l l d)(Tool To Be Developed)

Design session

Feedback area

Geometric

Engineering applications

Design session

Input area

Geometric representation area

F tFeatures

Information management applications

68

Thanks for your attention!

The LeanPPD consortium

Any questions?y q

LeanPPD Consortium

www.leanppd.eu

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