lean product design approach reduce the product cost ...lean product design approach reduce the...

Lean Product Design Approach Reduce the Product cost, Speed-to-market and Increase Productivity

O c t o b e r 2 0 1 0

Lean Product Design Approach Reduce the Product cost, Speed-to-market and Increase Productivity | October 2010

© 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

INSTRUCTIONS

This is an automated template for the technical whitepaper

series Enlighten. The following guidelines will help you work at it

effectively to create a market facing output. Once completed

please send it across to [email protected]. We shall get back to

you with the final copy.

Cover Page: Please update only the Title and the Year – Month.

Once you move onto writing the other sections, the same shall

be automatically updated at the header across all the pages.

Table of Contents: Do not make any changes to this page. Any

change if need be to the heading of a page, should be done at

the page itself (in the heading format as used currently). Once

the paper is complete move to the TOC, right click and “update

fields”. The table shall be update automatically.

Highlight Pad : On the left of each page, you will find a Grey

color box which you will need to use for one key point from the

text on the right/ quotation/ statistic etc.

Addition/ Removal of Pages : Writing can be continued, onto

the pages to write additional content. Table of content should be

updated at the end to account for all such modifications.

Final Page: This is uneditable text carrying information about

HCL and ERS.


© 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.

TABLE OF CONTENTS

Abstract ......................................................................................... 4

Abbreviations ................................................................................. 5

Challenges ..................................................................................... 6

Traditional Product Design Vs Lean Product Design ....................... 7

Lean Product Design Approach ...................................................... 8

Opportunities to slash Product Manufacturing Costs During the Product Design Cycle ................................................................... 10

Opportunities for Reducation of Waste in Design .......................... 11

Key Principles of Lean Design ...................................................... 11

Common Issues ........................................................................... 12

Conclusion ................................................................................... 12

Reference .................................................................................... 13

Author Info ................................................................................... 13


© 2010, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reser ved.

4

Abstract

Success in today‟s competative global marketplace requires more

than innovative and creative product designs. To succeed, you must

also beat the competition to market, while controlling development

costs and maintaining high levels of quality.Accomplishing these

goals demands the implementation of efficient and consistent

processes throughout the product development cycle. If you create

fantastic product designs but experience difficulties in

manufacturing, assembly and time to market you cannot achieve the

healthy profit margins, ambitious production schedules, or

consistent product quality that are necessary for your company‟s

success. To succeed in global competitive market, design teams need to be fast, efficient, and highly effective and need focus on

elimination of non-value-added waste in both the process of

development and in the design of the product

Lean product design approach can take you from slow-and-steady to quick-and-agile. Each approach addresses a different aspect of the product development process: the harvesting of initial customer inputs, the planning of a development project, resource allocation and prioritization, time and workflow management, and several practical techniques for improved organization, communication, and execution.One of the best ways to achieve "excellence in product design” is to focus on the elimination of non-value-added waste in both the process of development and in the design of the product.

Techniques such as Just-in-Time (JIT) materials management, pull systems, and batch-size reduction have enabled firms worldwide to achieve unprecedented production efficiencies. Unfortunately, a lean factory can only manufacture what it is given; if a "fat" product is handed off to the factory, all the lean manufacturing in the world won't get all of the waste out.

This is where the methods of lean product design take center stage. Therefore, slashing costs, increase productivity & time-to-market is a great place to begin journey toward Lean product design excellence.



5

Abbreviations

Sl. No. Acronyms Full form

1 JIT Just In Time

2 VOC Voice of Customer

3 CTQ Critical to Quality

4 PLOT Produc line optimization team

5 3P Production Preparation Process

6 SKU Stock keeping Unit

7 BOM Bill of Material

8 QFD Quality function deployment

9 OEM Orignal equipment manufacturer



6

Challenges

In today‟s global competitive market every companies are facing intensive pressure to cut down the product cost, reduce development time and develop Innovative competitive product. To survive in this maelstrom the Lean design approach helps on the elimination of non-value-added waste in both the process of development and in the design of the product.



7

Traditional Product Design Vs Lean Product Design

(Sections for more Solution points)

The basic problem with traditional product development processes is that most of the cost is locked in long before production launch. For example, complex designs cannot be “Leaned out” in production, and being too slow to market can severely impact product profitability. Products that do not reach out to customers in terms of price, performance and benefits do not sell well. In short, designs that arrive at the factory late, with poor production yields, major manufacturing problems, and unresolved engineering problems, undermine the benefits of Lean manufacturing. Lean product design approach focus on the elimination of non-value-added waste in both the process of development and in the design of the product that lead certainly reduce development lead-time, product cost and Increase productivity.



8

Lean Product Design Approach

There are five stages in a product life cycle design, produce, operate, support, and dispose. Among these stages, the design stage is the most critical since it sets the stage for product success or failure in the market place. The reason is that product design has a direct impact on product cost, time- to-market, quality and reliability. Typically, 70% of the cost of a product is fixed at the design stage Following are the specific design activities that help for Lean Product Design. Modular Design: The easiest way to understand modularity is the “Plug and Play” concept. If you want to add more hard drive capacity to your computer, simply plug in a new hard drive module. Platform based Design: Platforms leverage design efforts from one product to many other related products. For example Automobiles have engine platforms, suspension platforms, and more. This allows them to have highly flexible product lines that require less overall engineering and manufacturing effort. Design to fit : This approach makes product designs easier to create in existing production environments, without additional investments in manufacturing, assembly, supply chain and distribution. ( eg. reusing existing equipment, standard item, floor space )



9

Can you design your new product without the need for new production equipment?

Can you build the new product in an existing production line?

Design for performance: Ensure customers required functions are considered in design and product operates at the required specifications. Design for manufacturability: Use minimum number of parts in the product, facilitating error free assembly, use standard components whenever possible and fitting the product design into the process that will be used to product it. Design for testability: How easy the product can be tested and diagnosed in the shortest amount of time while using the lowest cost testing methods. Additionally, designing for testability reduces test program complexity, cuts test time, facilitates troubleshooting, and increases equipment availability. Design for quality: Design for quality means meeting the customer quality expectations. It includes things like selecting right quality material in the first place, reliability and aesthetic. Design for serviceability: Serviceability is best describes as designing product so they are easy to fix, assembly, disassembly and maintenance. Design for compliance: Take care of safety regulatory standard like CE,UL certification. Failing to meet regulatory requirements after the design is complete may add substantial costs and time to a reengineering effort. This kind of reengineering can drastically affect the time to market. Take out Waste: In this Process capability must be studied to ensure that the product can be produced economically. Unexpected rework and scrap reduce profits and disrupt manufacturing flows.



10

Opportunities to slash Product Manufacturing Costs During the Product Design Cycle

The most challenge for designer is the opportunities for product cost reduction occur during the early stages of the development process when the specifics of a design are the least understood. There are numerous opportunities to slash manufacturing cost during the design cycle, including: 1. Reduce Direct Material Cost Common parts, common raw materials, parts-count reduction, design simplification, reduction of scrap and quality defects, elimination of batch processes, Use Cheaper Raw Materials / Parts, Use High-Volume Parts etc. 2. Reduce Direct Labor Cost Design simplification, Design for lean manufacturing and assembly, Matching product tolerances to process capabilities, standardizing processes, Automate Manufacturing Processes Reduce Test / Inspection Requirements etc. 3. Reduce Operational Overhead Minimize impact on factory layout, capture cross-product-line synergies (e.g. a modular design/ mass-customization strategy), improve utilization of shared capital equipment, etc. 4. Minimize Non-Recurring Design Cost Platform design strategies, parts standardization, Reuse Existing Designs / Processes, Eliminate Unnecessary Complexity , Avoid Gold Plating of Designs , Optimize Make vs. Buy ,QFD/voice-of-the-customer, Six-Sigma Methods, Design of Experiment, Value Engineering, Production Preparation (3P) Process, etc. 5. Minimize Product-Specific Capital Investment Production Preparation (3P) Process, matching product tolerances to process capabilities, Optimize Tooling Cost , Avoid Dedicated Equipment ,Value Engineering / design simplification, design for one-piece flow, standardization of parts, etc.



11

Opportunities for Reducation of Waste in Design

The following table shows the percentage of wastes in product design.

Areas of waste reduction Percentage

Designs never used

33-50% Downtime while finding information, waiting for test results etc.

Unnecessary documents and prototypes

Under utilization of design knowledge for example in costly parts

18%

Over design such as features customers don't need 8%

Validating manufacturing errors early in the design process

17%

Poor design for manufacturing, assembly (producing product defects)

15%

Key Principles of Lean Design

Strategic Value: Optimize product values (customer and

company)

Waste Prevention: Minimize wasteful processes

Marketplace Pull: Attempt to predict what values customers truly

need, now and in the future; see emerging trends early, grow by

discovering unmet needs to create disruptive strategy.

Innovation Flow: Need systematic way for all stakeholders to

contribute innovative ideas; seek many solutions simultaneously.

Fast Feedback: You can only improve what you can measure.

Common metrics are schedule, budget, and technical

performance. But, need to measure what is important to

customer; measure for direction first, precision



12

Common Issues

The areas of waste in manufacturing, which are relatively easy to

identify and quantify, can be extrapolated to apply to other product

development processes but in product design very difficult to identify

and quantify the wastes.

Conclusion

The Lean product design approach helps companies with an effective way to begin the Lean journey in product development and engineering in a straightforward and un-intrusive manner which can deliver significant benefits in waste elimination and help in slashing product cost, speed to market and Increase productivity. Benefit

Product development cycle time reduction

Manufacturing cost reduction

Engineering changes reduction

Scrap and rework reduction

Error proof prevention system

Customer satisfaction

Increased Productivity

Reduced risk

Design compatibility with production facilities –Platform

based design



13

Reference

1. Lean Design Solution by Bart Huthwaite 2. The Lean Product Development by Ronald Mascitelli

Author Info

Rajesh Thosar is a Project Manager at HCL Technologies. With graduation in Mechanical Engineering .He has 15+ years of rich experience full product life cycle from concept to manufacturing (C2M), supplier selection ,supplier development, supplier management & SCM. He has worked with OEM and IT engineering service companies and successfully executed various project in automotive, consumer electronics,Telecom, home appliances, heavy construction equipment and Aerospace domains. Currently he is heading NPI team in HCL and supporting to various project NPI activity.

Hello, I’m from HCL’s Engineering and R&D Services. We enable technology led organizations to go to market with innovative products & solutions. We partner with our customers in building world class products & creating the associated solution delivery ecosystem to help build market leadership. Right now, 13000+ of us are developing engineering products, solutions and platforms across Aerospace and Defense, Automotive, Consumer Electronics, Industrial Manufacturing, Medical Devices, Networking & Telecom, Office Automation, Semiconductor, Servers & Storage for our customers.

For more details contact [email protected]

Follow us on twitter http://twitter.com/hclers and our blog http://ers.hclblogs.com/

Visit our website http://www.hcltech.com/engineering-services/

About HCL

About HCL Technologies HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on „transformational outsourcing‟, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of „Employee First‟ which empowers our 64,557 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.7 billion (Rs. 12,565 crores), for the year ended as on 30th June 2010. For more information, please visit www.hcltech.com

About HCL Enterprise

HCL is a $5.3 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 71,000 professionals of diverse nationalities, who operate from 29 countries including over 500 points of presence in India. HCL has partnerships with several leading Global 1000 firms, including leading IT and technology firms. For more information, please

visit www.hcl.com

lean product design approach reduce the product cost ...lean product design approach reduce the...

Documents