lean design - literature survey

Lean through product Lean through product life cyclelife cycle

From Lean Manufacturing to Lean Development

Agenda

1. Origin and Limits of Lean Thinking

2. Lean Product Development Introduction

3. Lean’s Five Principles in Product Development

4. Keys of success and Metrics

5. Lean Product Development Limits

6. Conclusion

Origin and Limits of Lean Thinking

Ford demonstrated the need to concentrate on activities that are added value to the customer and to eliminate the others

The origin of Lean lies in the Japanese response to the oil crisis of 1973 (Schonberger, Nine hidden lessons in simplicity)

Womack and Jones, “Lean Thinking”, see that it can also be applied to great effect outside manufacturing operations.

Origin and Limits of Lean Thinking

Criticisms are raised regarding the universal applicability of Lean Thinking outside manufacturing:

Womack & Jones selective use of data (Wells and Rawlinson, 1994)

“Lean Thinking” being heavily biased towards manufacturing environments (Haque et al, 2000)

Lean Product Development IntroHugh MacManus (2005) findings :

60-80% of the product (by value) is outsourced to suppliers

40% of engineers effort was described as pure waste, and only 30% as value added

Engineering work packages were tracked, being inactive 60% of the time

Lean Product Development Intro

When “Lean Thinking” in 1996 the research was very limited in the field of Lean NPI (James-Moore, 1996).

There are very few examples of published lean product development research literature from Europe (Haque et al, 2000)


Concurrent engineering / Stage Gate:

Multifunctional system that consists of parallel activities, carried out by people from different areas (Cooper and Kleinschmidt, 1993)


Set based concurrent engineering

Toyota begin by broadly considering sets of possible solutions and gradually narrow the set of possibilities to converge on a final solution (Clark and Fujimoto, 1989). This process is named set based concurrent engineering (Sobek et al, 1999)

Lean’s Five Principle in Product

DevelopmentFive principles from Haque and Moore

Specify value

Identify the value stream and eliminate waste

Make the value flow

Let the customers pull the process

Pursue perfection

Lean’s Five Principle in Product

DevelopmentFive principles are applicable with two modifications (Haque and James Moore - 2004):

Perspective of value was changed as some type of waste can enhance value. Toyota have identified that NPI processes need waste to enhance value and not restrain creativity (Set based concurrent engineering)

Seven waste were reworked

Value

A capacity to provide to a customer at the right time at an appropriate price as defined in each case by the customer

Chase (2000) present five models that identify value in PD process

Naveen Gautam et al (2008) present a mathematical model for perceived value and a step by step methodology to capture the optimised design changes with cost implication

Value

Cloke proposed that new ideas should be pulled out from new or leading customers needs

Lean lacks in innovation (Economist, 1996)

Toyota did not need to be an innovator (Womack and Jones, 1996)

11 products development wastes

1. Hands off: Transferring product or process from one responsible party to another

2. External Quality Enforcement: Meaningless data collection and associated performance requirement

3. Waiting : for data, answers, decisions, review events, capacity availability


4. High process variations : minimise and contains variability in process

5. System over utilisation

6. Ineffective communication

7. Large batch size released

8. Unsynchronized concurrent processes


9. Transaction waste : Time and effort arranging for the work to be done

10.Re-invention waste : re-inventing processes, solutions, methods, and product that already exist

11.Lack of system discipline : poorly understood roles and responsibilities, low accountabilities, missing schedules and even incompetence

Flow

Smith and Reinersten identified the application of JIT in the product development process

Reinersten introduce the term DIP (design in process) inventory. DIP cost are much larger than WIP-costs

Mikulina identified that demand flow manufacturing can be applied to product development in the areas of relation with suppliers

Mikulina states that rework and time can be saved by having the PD engineers work only when needed

Key of success and metrics

Queue management

Inventory of product development is invisible

Inventory does accumulate in engineering queues

Everything that has been learned in managing queues in factory is useful in design process


Batch size reduction

Batch size reduction is valuable in product development

Stage gate process is the enemy of flow


Cadence

An obvious solution is to conduct reviews at fixed time, so review dates are predictable

Rapid local adjustment

Waste elimination


Hindering and Supporting factors (Karlsson and Ahlstrom - 1996):

Hindering factors:

Focus on the R&D department in development creates difficulties in achieving cross-functional integration

Simultaneous engineering is paradoxical to the individual engineers

Co-ordination of the Lean project creates a time consuming meeting activity


Hindering factors:

Request for detailed design specifications disturb the visionary-led projects

Ambitious to maintain a flexible relationship with suppliers coupled with a demand for known cost, obstructs a black box engineering relationship


Supporting factors:

Lean buffers in schedule

Close co-operation with a qualified customer

Competence of individual engineers

Top management commitment and support

Regular gathering with management representatives from different functions


NPI effectiveness index

Compliance to customer requirements

Schedule performance

Cost performance

Inappropriate design changes

Information inventory efficiency (Design reuse, New features)

Engineering throughput

Lean product development limitsProduct development is a reactive process by its nature (Kennedy, 2003)

The design teams naturally react to what is learnt in the previous stage

Goldratt states that critical tasks must be protected by putting just enough buffer when Karlsson et al remove buffers to reveal hidden problems and help-provoke their solutions

Lean product development limitsMacManus (2005)

The value stream consists of information and knowledge, not easy to track

The pull is rarely a simple customer demand that can be used to calculate takt time

Perfection is even harder to reach, as simply doing process very fast and perfectly with minimal resource is not the final goal

Lean product development limitsThe limitations of the Lean principles lie in single-project management that cause wasteful designs and products (Cusumano and Nobeoka, 1998)

Reinersten et al (2005) note that NPI is a non repetitive, non sequential, unbounded activity that produces information

Many local improvements (kaizen) is not the way to improve the entire business (Theory of constraints - Goldratt 1997)

Conclusion

The definition of lean is drifting out of waste elimination to value creation

Lean can be applied to product design

Value of PD process need to be defined precisely

Toyota apply Set Based Concurrent Engineering

Requires strong leadership of chief engineer with responsibility for the total project

Lean requires organisation-wide changes in systems practices and behaviour (Karlsson and Ahlstrom)

Conclusion

Some authors believe that good leading practices do not derive from Lean Principles and that Lean is necessary within NPI but nor sufficient and highlight the need

Brainstorming

The applicability of “Lean Design” in the service industrie

The definition of “value”

...

Appendices

Lean Product Development IntroKarlsson and Ahlstrom (1996):

Supplier involvement (including black box engineering)

Simultaneous engineering

Cross-functional teams

Integration of the teams rather than co-ordination

Heavyweight team structure

Strategic management of the whole project via visions and objectives

Specify Values

Chase (2000) present five models that identify value in PD process

Economic Value Added Function (after-tax operating income minus the weighted-cost of capital employed)

Customer value Model (Slack) incorporating factors such as risk and time

Design Structure Matrix (Steward, 1981, Eppinger et al, 1994)

Risk Value Method

Deyst method, mathematically rigourous integration of the browning' DSM modelling and the more recent Risk Value Method

Lean Principles (Oppenheim 2004)

Define value

Identification of LPDF stake-holders

Formulation of value deliverable

Define value stream

Availability of large comfortable “War room” suitable for VSM for the program duration

Consensus of the core team on the program schedule

Consensus of the core team on the final value stream map parsed into short takt period

Make the work flow

Discipline of completing robust work within each takt period

Availability of dynamically allocated resources as agreed during VSM

Efficient mitigation of uncertainties


Pull

Every task “owner” knows who is the internal customer

Every owner understand the deliverables scope, format, and functionality needed by the customer

In case of disagreement between the task owner and internal customer, negotiations should end with mutual compromise without compromising the LPDF value proposition


Pursuit of perfection

Implementation of effective LPDF leadership

Effective training prior to the value stream mapping

LPDF progress according to the VSM schedule

Effective and flexible handling of VSM adjustment


lean design - literature survey

Business

lean development

lean manufacturing

origin of lean

lean lacks

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value flow

limits of lean thinking

perceived value