Lean Product and Process Development Lean Summit India Jose Ferro Bangalore, November 2014 1.

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  • Lean Product and Process Development Lean Summit India Jose Ferro Bangalore, November 2014 1
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  • Most organizations start their lean transformation efforts in manufacturing YES, LOTS TO DO!!! 2
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  • Normally we have results like: Substantial increases of productivity (+30%) and quality (++1.000%) Capacity gains (+50%) Lead time reduction (+50%) increasing market response capability (smaller batches) Reduces needs for space (+50%) Less inventory (+50%) Etc..... 2
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  • But we have a problem! 2 Is this enough ?
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  • Improving the efficiency in the trolley car production will not create the automobile Joseph Schumpeter (1883 - 1950 ) 3
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  • To fully capture the benefits of the lean transformation, we need to rethink the way we develop new products (and the processes that enable them) 4
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  • New products bring improvements in: Sales Cost Profitability Growth Market share and reach Competiveness and business sustainabiliy 6
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  • A little tale: EMBRAER In the 90s it launched a new product using their traditional product development process The product was a huge success An enormous investment Smaller, cost effective, low in consumption for the need of point to point travel, apropriate for smaller cities Right product at the right time!!! Huge demand- 5 x more than anticipated 7
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  • But there was a problem... They couldnt produce it Many delays Costumers unhappy Share holders very nervous Company at bay.... 8
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  • Then, they encountered lean manufacturing and begin changing the company BY IMPROVING MANUFACTURING!! 9
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  • Lean allowed our company to survive Frederico Curado CEO Lean Summit Brasil 2010 10
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  • Not yet to be capable to fully compete with Boeing and Airbus But capable to mantain and solidify its position as n 3 in the very competitive global aerospace business 12
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  • And now Embraer is moving from 11 Traditional Product Development Lean Product Development
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  • Why Embraer wants to change its PD system? They realized that the current system seems to be always: Above the predicted budget Always late Lots of stress Loosely conected with manufacturing and suppliers Damages the economic performance LIKE MANY OTHER COMPANIES 13
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  • A great Product Development System Will produce great products not by luck not depending on geniuses And will drive dramatic cost reduction most of the costs (50-80%) of the operating costs are defined in the design phase 14
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  • Lean Product and Process Development (LPPD) Creates great product sistematically and reduces costs at the same time While developing people knowledge and capabilities Integrating horizontally the company Aligning the whole company (value adding and support functions)around costumer value and needs 15
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  • Main elements: Lean Product and Process Development (LPPD) 16
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  • Elimating PD wastes 17 Hand off (disconnection) Waiting ScatterWishful thinking Wrong tools Knowledge Useless information Communication barriers
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  • Understand costumer needs and expectations Gemba focus (or market research?) Source of information and inspiration Set based/multiple alternatives Strong internal debate Alignment inside the organization One person with a systemic view (Chief Engineer) Conection with Hoshin Kanri to define goals and targets 2
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  • Create flow, pull and cadence Strong Chief engineer manages and coordinates Based on milestones and pulling events Set based engineering Synchonization: decisions at the right time Do we have a takt time? Obeya room and visual management Work load leveling to avoid mura and muri 2
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  • Leadership and structure: strong Chief engineer Deep systems design knowledge Respect Broad reponsability with strategic orientation but small authority over functions Overviewing and aligning strong functions (matrix organization) suppliers > body > engines > transmissions > interior > Undertstand and translate costumer needs to organizational capabilities and deliveries Responsible for ultimate results 2
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  • Develop learning and knowledge Learning at the gemba (go see for yourself) including the costumers Scientific method Coaching Rapid learning cycles deep knowledge standandardization 2
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  • Early on suppliers involvement Suppliers strong commitment Pressuposes a new relationship (purchasing, PD, logistics etc) Long term and trust relationship 2
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  • 18 d delivered more than a half billion dollars in top line growth while simultaneously implementing 30M in cost savings went from 27% programs on time to 90% on time, they reduced cycle time by 70% and increased total throughput and they dramatically reduced waste and executed better launches ddelivered more than a 30% increase in smart phone chip performance on an accelerated schedule an award winning software company that is revolutionizing the software industry. They have grown profitably since inception. Created many award winning products and joy for employees and customers alike. They have become a veritable lean innovation machine s saving an icon with great product Some results Source: Jim Morgan
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  • THANK YOU!! ferro@lean.org.br 2


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