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Lean Engineering Product Development Professor Debbie Nightingale September 25, 2002

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Page 1: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

Lean Engineering Product Development

Professor Debbie NightingaleSeptember 25, 2002

Page 2: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

2Deborah Nightingale, MIT © 2002

Lean Engineering Learning Points

Lean applies to engineeringEngineering requires a processDifferent from manufacturing

Lean engineering process eliminates waste and improves cycle time

Make sequential processes flow seamlesslyManaging iteration to avoid unplanned rework

Efficient and standard process enables better engineeringIntegrated Product and Process development (IPPD) is critical for lean enterprise

Page 3: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

3Deborah Nightingale, MIT © 2002

Process is Important in Engineering

For this discussion, “Engineering” is defined as preliminary and detailed design and analysis, process design, and validation and verification

Concept Development

System-Level Design

Detail Design

Testing and Refinement

Production Ramp-Up

From Ulrich & Eppinger, Product Design and Development, 1995

Phases of Product Development Most relevant to processes in these phases

Page 4: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

4Deborah Nightingale, MIT © 2002

Lean Engineering Requires a Process

Engineering processes often poorly defined, loosely followed(LAI Case Studies)

40% of design effort “pure waste” 29% “necessary waste”(LAI Workshop Survey)

30% of design charged time “setup and waiting” (Aero and Auto Industry Survey )

Pure Waste

Value Added

Necessary Waste

Inspiration

“Invention is 1% inspiration and 99% perspiration” - TA Edison

“Product development is 1% inspiration, 30% perspiration, and 69% frustration” - HL McManus

Page 5: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

5Deborah Nightingale, MIT © 2002

Application of Lean to Engineering -Traditional Womack and Jones

Understand Process

Eliminate Waste Radical Change

Precisely specify value by specific productIdentify the value stream for each productMake value flow without interruptionsLet the customer pull value from the producerPursue perfection

Page 6: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

6Deborah Nightingale, MIT © 2002

Process enables innovation and cuts cycle time

Process repeatable without errors

Perfection

Driven by needs of enterprise

Driven by Takt time Customer pull

Iterations often beneficial

Iterations are wasteMake process flow

Information & knowledge

Parts and material

Identify Value Stream

Harder to see, emergent goals

Visible at each step, defined goal

Define ValueEngineeringManufacturing

Engineering & Manufacturing Have Similarities and Differences

Source: Lean Aerospace Initiative

Page 7: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

7Deborah Nightingale, MIT © 2002

Engineering Value is Emergent

Adapted From Chase, “Value Creation in the Product Development Process”, 2001.

Time

Valu

e

Risk Info

Activities accumulate information, eliminate risk, use resources

ValueRealized

ProcessOutcome

Page 8: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

8Deborah Nightingale, MIT © 2002

Program Phase

% o

f Pro

gram

s Ove

r Cos

t

From Hoult et al., “Cost Awareness in Design: The Role of Data Commonality”, 1995.

No DatabaseCommonality

Some

Best Practice

Engineering Requires the Seamless Flow of Information and Knowledge

0

5

10

15

20

25

30

35

R&D ConceptDef.

ConceptAsses

Prelim.Design

DetailDesign

Fab&test SalesO&S

Information can be an IT problem - solutions exist, but are not easyKnowledge is a people problem -requires communication - this is hard!

Page 9: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

9Deborah Nightingale, MIT © 2002

Communication Key to Flow and Pull

Flow cannot be achieved until engineering processes move and communicate without errors or waiting

62% of tasks idle at any given time(detailed member company study)50-90% task idle time found in Kaizen-type events (case studies)

Task ActiveTask

Idle

Pull achieved when engineering cycle times are as fast or faster than the customer’s need or decision cycle

Page 10: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

10Deborah Nightingale, MIT © 2002

CategoryCategory % Reduction% ReductionCycle-TimeProcess StepsNumber of HandoffsTravel Distance

75%40%75%90%

Scope: Class II , ECP Supplemental, Production Improvements, and Make-It-Work Changes Initiated by Production RequestsValue stream simplified, made sequential/concurrentSingle-piece flow implemented in co-located “Engineering cell”Priority access to resources

849 BTP packages from 7/7/99 to 1/17/00

Source: Hugh McManus, Product Development Focus Team LAI - MIT

Co-Location Improves Integration

Page 11: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

11Deborah Nightingale, MIT © 2002

The Seven Info-Wastes

Unnecessary serial production; Excessive/custom formatting; Too many iterations

7. Processing

Haste; Lack of reviews, tests, verifications;Need for information or knowledge,data delivered

6. Defective Products

Late delivery of information;Delivery too early (leads to rework)

5. Waiting

Lack of direct access;Reformatting4. Unnecessary Movement

Information incompatibility; Software incompatibility; Communications failure; Security issues

3. Transportation

Lack of control; Too much in information;Complicated retrieval; Outdated, obsolete information

2. Inventory

Creation of unnecessary data and information;Information over-dissemination; Pushing, not pulling, data

1. Over-production

Source: Lean Aerospace Initiative

Page 12: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

12Deborah Nightingale, MIT © 2002

Making Processes Flow

SystemRequirements

Choose PreliminaryConfiguration

1

ET: 8/50 daysHIP: 60/457 hrsCT: 50 hrsC: $4500V: 33

Perform AeroAnalysis

3

ET: 7/50 daysHIP: 42/457 hrsCT: 39 hrsC: $1075V: 20

Create Ext & MechDrawings

2

ET: 3/50 daysHIP: 15/457 hrsCT: 12 hrsC: $475V: 17

DetermineStructural Rqmts

5

ET: 3/50 daysHIP: 21/457 hrsCT: 18 hrsC: $675V: 8

Create StructuralConfiguration

4

ET: 5/50 daysHIP: 25/457 hrsCT: 22 hrsC: $950V: 13

Perform LoadsAnalysis

8

ET: 7/50 daysHIP: 41/457 hrsCT: 37 hrsC: $1525V: 25

Perform Stability &Control Analysis

7

ET: 8/50 daysHIP: 50/457 hrsCT: 45 hrsC: $4100V: 18

Perform WeightAnalysis

6

ET: 4/50 daysHIP: 23/457 hrsCT: 20 hrsC: $1325V: 19

CreateManufacturing Plan

11

ET: 12/50 daysHIP: 79/457 hrsCT: 59 hrsC: $2225V: 34

Perform SS&LAnalysis

10

ET: 5/50 daysHIP: 43/457 hrsCT: 38 hrsC: $2975V: 38

Develop FiniteElement Model

9

ET: 4/50 daysHIP: 21/457 hrsCT: 19 hrsC: $1350V: 22

Develop DesignReport/ Pres .

12

ET: 4/50 daysHIP: 37/457 hrsCT: 30 hrsC: $2225V: 35

Mgt

Rev

iew

, For

mat

ting

Form

attin

g

Mfg

Rev

iew

Eng

Rev

iew

Mgt

Rev

iew

major value tasks

From Millard, “Product Development Value Stream Analysis and Mapping”, 2001

Value Stream Mapping and Analysis required for understandingProcess mapping and Design Structure Matrix methods most powerful for process improvementProcess mapping customized for PD developed

Page 13: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

13Deborah Nightingale, MIT © 2002

Results: Engineering Release Process

Reduced Cycle time by 73%Reduced Rework of Released Engr. from 66% to <3% Reduced Number of Signatures 63%

Traditional Lean

Cycle Time

Std Dev

Tim

e

Value stream mapped and bottlenecks found

Process rearranged for sequential flow

Waiting and delays removed

Source: Lean Aerospace Initiative

Page 14: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

14Deborah Nightingale, MIT © 2002

Complexity may Require Iteration

Engineering release process prior state

New Requirement

Schedule

Review

PR’s

Write EDA

Basic Layout

FAMSCO

Write PS

Assign Task

Detailed Layout

Layout from Config

STRESS

Assy Drawing

Detail Drawing

CHECKBOARD RELEASECENTERSIGNOFF

NEAR

DCCInvestigate

C/A Board

C/A

Page 15: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

15Deborah Nightingale, MIT © 2002

Complex Engineering Processes Require Efficient Iterations AND Flow

Understand how iterations reduce risk and/or handle emergent knowledge Don’t set up iterations that have large time lags that can cause unnecessary reworkWithin an iteration and between iterations make information flow efficientlyAnswer may be faster and more efficient iterations, not necessarily fewer ones

Page 16: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

16Deborah Nightingale, MIT © 2002

ManageIteration

SequentialProcess

Discovery

Emergentknowledge

Complexprocess

Rote work

Heldknowledge

Simpleprocess

Choose Approach

Balance Factors

Make Simple Processes Sequential;Manage Iteration of Complex Ones

Page 17: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

17Deborah Nightingale, MIT © 2002

Key Learnings

Engineering process is importantEfficiently execute “the fundamentals”Remove waste and improve cycle time

Iterations are not necessarily waste When needed (and managed) add knowledge effectively and avoid unnecessary rework

Good process is key to effective engineering so LEAN APPLIES!

Page 18: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

18Deborah Nightingale, MIT © 2002

Integrated Product and Process Development (IPPD)

A management technique that simultaneously integrates all essential acquisition activities through the use of multidisciplinary teams to optimize the

design, manufacturing, and supportability of processes.

Page 19: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

19Deborah Nightingale, MIT © 2002

Integrated Product and Process Development (IPPD)

IPPD facilitates meeting cost and performance objectives from product concept through production, including field support.

One of the key tenets is multidisciplinary teamwork through IPTs.

Page 20: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

Conceptualization and Design

Test and Production Sustainment

Cost o

f Cha

nge

High High

Low Low

Num

ber o

f Des

ign

Cha

nges

Dol

lars

TraditionalIPPD

Traditional vs IPPD Approach

Deborah Nightingale, MIT © 2002

Page 21: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

21Deborah Nightingale, MIT © 2002

IPPD Key Tenets

Customer Focus

Concurrent Development of Products and Processes

Early and Continuous Life Cycle Planning

Maximize Flexibility for Optimization and Use of Contractor Approaches

Encourage Robust Design and Improved Process Capability

Page 22: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

22Deborah Nightingale, MIT © 2002

IPPD Key Tenets

Event-Driven Scheduling

Multidisciplinary Teamwork

Empowerment

Seamless Management Tools

Proactive Identification and Management of Risk

Page 23: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

23Deborah Nightingale, MIT © 2002

Benefits of IPPDReduced overall time for product delivery.

Reduced system (product) cost.

Reduced risk.

Improved quality.

Improved response to customer needs.

Page 24: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

24Deborah Nightingale, MIT © 2002

Integrated Product Team

Build successful programs

Identify and resolve issues

Make sound, timely decisions

Working together to:TEAM

TeamLeader

FUNCTIONALREPS

* Program Mgmt* Engineering* Manufacturing* Logistics* Test & Eval•Contracting•Suppliers* User(All APPROPRIATE Areas)

Page 25: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

25Deborah Nightingale, MIT © 2002

Multi-Program Enterprise Impacts

Research examples where time/cost delays due to infrastructure issues beyond the specific program

Access and availability of enterprise resourcesSpace system testing example

Use of commonality to support operations not just design

Page 26: Lean Engineering Product Development · Lean Engineering Learning Points Lean applies to engineering Engineering requires a process Different from manufacturing Lean engineering process

26Deborah Nightingale, MIT © 2002

Analysis of Spacecraft Test Discrepancies

Over 23,000 discrepancies from over 20 programs, encompassing over 225 spacecraft

0

5

10

15

20

25

30

35

Employee-Operator

Design Material Equipment Software No Anomaly Unknown OtherRoot Cause Category

CommunicationsMissions

OtherMissions

Mean Confidence In terval •Median

On a per spacecraft basis almost 50% of discrepancies are causedby workforce and equipment issues common to many programs

Source: LAI Product Development Team