lean innovation
TRANSCRIPT
© WZL/Fraunhofer IPT
Lean InnovationImplications of Lean Management for Automotive Innovation
Virtual Powertrain Creation Munich, 23 October 2008
Seite 2© WZL/Fraunhofer IPT
Lean Thinking and innovation management – a fundamental contradiction?
11 Profit
17 +/ -
24 Loss
Ideas Projects Products Market Profits
€11
Source: Prof. Gassmann, HSG
1.919 176 52369
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“More input = more output” – is increasing innovativeness that easy?
n=86 producing companiesSource: Annual reports and publications of companies from time period 2003-2007
0
2
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6
8
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-10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
Average growth in sales p.a. 2003-2006 [%]
Ave
rage
R&
D s
pend
ing
p.a.
2003
-200
6 [%
from
sal
es]
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“Champions” generate much more sales growth per ‘R&D-dollar’ than the average of their competitors
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-10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
Average growth in sales p.a. 2003-2006 [%]n=86 producing companiesSource: Annual reports and publications of companies from time period 2003-2007
Ave
rage
R&
D s
pend
ing
p.a.
2003
-200
6 [%
from
sal
es]
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10 Lean Innovation Principles
StrukturierenSynchronisieren
Adap
tiere
n
Lean Innovation
Structure EarlySynchronise Easily
Adap
t Sec
urel
y
Product ArchitectureTechnology- and Function Model
Product Line OptimisationFeature Clusters
Value SystemTarget Hierarchy
Design SetsDesign Space Management
Capacity PlanningBalancing Model
SynchronizationRhythm
PerfectionRobustness Model
Process OptimizationValue Stream Mapping
DerivationRelease Management
MotivationProduct Identity
Seite 6© WZL/Fraunhofer IPT
10 Lean Innovation Principles
Product ArchitectureTechnology- and Function Model
Product Line OptimisationFeature Clusters
Value SystemTarget Hierarchy
Design SetsDesign Space Management
Capacity PlanningBalancing Model
SynchronizationRhythm
PerfectionRobustness Model
Process OptimizationValue Stream Mapping
DerivationRelease Management Strukturieren
Synchronisieren
Adap
tiere
n
MotivationProduct Identity
Structure EarlySynchronise Easily
Adap
t Sec
urel
y
Lean Innovation
Seite 7© WZL/Fraunhofer IPT
Vague objectives and unclear product specifications hold the largest efficiency improvement potential in innovation management
Challenges of operative and strategic innovation management
Technical problems
Employee- and resource-related problems
Interface problems
n = 253
Ø14,8
Ø21,5
Vague project objectives
Motivational problems and deficits
Missing resources (skills and manpower)
Unexpected technological challenges
Collaborational difficultiesDeficits in project management
Open legal questions
Problems with external partners
Difficulties in market access
Late definition of services to accompany the product
Difficulties with new technologies
Intransparent and changing specifications
Deficits in merging existing competencies and know-how
Source: Fokus Innovation, Prof. Bullinger, 2006
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0 2 4 6 8 10 12 14 16 18 20 22 24 26
Average improvement potential of development lead time [%]
Shar
e of
com
pani
es[%
]
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Value system at Apple: Operating and handling comfort are priority #1 and rank as top objectives!
Source pictures: Apple, 2008
How effective prioritize your requirement specifications product values from customer perspective?
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Transparent value system and consistent target hierarchy = Basis for exploiting the market potential
Easy transparency of target hierarchy
Transparency of customer values
“Translation” of values for all project team members
Consistent prioritization of project objectives
Exploitation of market potential
Over fulfilment
Under fulfilment
Value System
Target Hierarchy
Underengineering:Poor market chances,
imitations, market withdrawal
Overengineering:Too high costs Legend
Expectation
Offer
Seite 10© WZL/Fraunhofer IPT
The Apple iPod “skimmed the market potential” fully!
„There‘s no chance that the iPhone is going to get any significant market share.No chance.“Steve BallmerCEO Microsoft
30 April 200730 April 2007Steve Ballmer in
USA Today
29 29 JuneJune 20072007 Market launch Apple iPhone
JulyJuly –– September 2007September 2007Smartphone market
shares USA for Q III 2007
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Similar trend in 2009: For the new Golf VI, Volkswagen promotes its „Wertigkeit“ above all else!
Seite 12© WZL/Fraunhofer IPT
10 Lean Innovation Principles
Product ArchitectureTechnology- and Function Model
Product Line OptimisationFeature Clusters
Value SystemTarget Hierarchy
Design SetsDesign Space Management
Capacity PlanningBalancing Model
SynchronizationRhythm
PerfectionRobustness Model
Process OptimizationValue Stream Mapping
DerivationRelease Management Strukturieren
Synchronisieren
Adap
tiere
n
Lean Innovation
MotivationProduct Identity
Structure EarlySynchronise Easily
Adap
t Sec
urel
y
Seite 13© WZL/Fraunhofer IPT
real
wor
ld
SolutionTarget hierarchy
!
The key task in product development is the development and successful assessment of alternative solutions
Problem space
abst
ract
wor
ld
Different requirements
define the “problem space”
Alternativesolutions within design space
Design space
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Selection solutions too early in the process often leads to late iterations and extended project milestones
No systematic exploitation of degrees of freedom
1
Late expansion of design space =significant shift of milestones
3
Too early selection of solution alternatives
2
Qua
ntity
of a
ltern
ativ
e so
lutio
ns
t
Legend
Design space
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The pro-active management of the design space helps to plan creative tasks
Early planning of the design space1
Integration of design space management in milestone reviews
2
Capturing of knowledge aboutde-selected solutions
3
t
Legend
Design space
Qua
ntity
of a
ltern
ativ
e so
lutio
ns
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Suspension of Mercedes-Benz W201: Example for intuitive design space management
1) Source: AutoBild, August 2007Source pictures: Mercedes-Benz, 2008
Strategic access of new market segment
Clear positioning: Differentiation through unique driving comfort for this vehicle class
Assessment of 8 rear axle baseline concepts with 77 physical variants between 1978 and 1980
Result: New five-link rear suspension (“Raumlenker- Hinterachse”)
Breakthrough innovation used up to today
Five-link rear suspension today
“More comfort combined with an almost perfect handling performance were not available in this vehicle class!”1)
Mercedes-Benz W201 (“190”): Introduction of five-link rear suspension (“Raumlenker- Hinterachse”)
Seite 17© WZL/Fraunhofer IPT
10 Lean Innovation Principles
Product ArchitectureTechnology- and Function Model
Product Line OptimisationFeature Clusters
Value SystemTarget Hierarchy
Design SetsDesign Space Management
Capacity PlanningBalancing Model
SynchronizationRhythm
PerfectionRobustness Model
Process OptimizationValue Stream Mapping
DerivationRelease Management Strukturieren
Synchronisieren
Adap
tiere
n
Lean Innovation
MotivationProduct Identity
Structure EarlySynchronise Easily
Adap
t Sec
urel
y
Seite 18© WZL/Fraunhofer IPT
Find out more about >>Lean Innovation<< at…
© WZL/Fraunhofer IPT
Thank youMichael Lenders
Department Manager Innovation Management
Laboratory for Machine Tools and Production Engineering WZL
RWTH Aachen University
Tel +49 – (0) 241 – 80 27436
Email [email protected]