Introduction to Lean Product and Process to to Lean Product and Process Development LeanPPD Consortium 1

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  • Introduction to Lean Product and Process Development

    LeanPPD Consortium



  • 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


  • How to live (or survive)?

    Next Ricardos competitive advantages

    Keynesian policies

    Schumpeterian strategies

    Lean approaches


  • 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


  • 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


    Source: &

  • 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 thats focused on your customers 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



  • But isnt 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


  • Lean Enterprise,2009



  • While the world is changing





  • ...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!


  • The time variable

    Reduced TTM

    Today 40% 60%Design and DevelopmentProduction

    30 - 40%

    15% 85%Yesterday


  • The time-space variable


    Product Manager



  • Then: Lean Thinking itself might be improved

    Lean Thinking

    Lean Manufacturing(Shopfloor)

    Lean Enterprise(management)

    Lean Product (and Process) Development XDefinition exists

    Value Stream Mapping(VSM)

    Definition exists Value Stream Mapping


    New ideaDedicated tools not exist

    No VSM

    XEliminates Waste

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

    Models available

    Eliminates WasteCreates Value

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

    No full models availableEngineering based

    Models available Technical & Engineering


    Models available Management based


  • 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)


  • 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.



    System Design

    Detail Design



  • Lean PD literature


  • Toyota Lean PD System


  • 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


    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

    customers 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


  • Value in Product Development

    Value Added

    Design and testing


    Wasted time


    Wasted time

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

    Non Value Added, but needed



    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)


  • 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)


  • 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


    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


  • 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 kno