Introduction to Lean Product and Process …

1 Introduction to lean Product and Process development LeanPPD Consortium l d 1. LeanPPD Project &. Consortium EU funded project 4 year (Feb 09 Feb 13). 7,8 ML budget 12 European partners 2. How to live (or survive)? Next Ricardo's competitive advantages . Keynesian policies . Schumpeterian strategies . lean approaches . 3. lean ? Where? When? Japan 1945, economic post- war crisis 1965, market liberalization 1970ies, petroleum crisis & gas emission regulation 1990ies, local financial crisis 2008, global financial crisis 4. A proud history of improvements Henry Ford (1863 1943) Shigeo Shingo (1909 1990). Kiichiro Toyoda (1894 1952) Jeffrey K. Liker Taichi Ohno (1912 1990). James P. Womack & Daniel Jones Source: &. 5. lean is . A mindset, i d or way off thinking, hi ki with iha commitment to achieve a totally waste-free operation that's focused on your customer's success It is achieved by simplifying and continuously improving all processes and relationships in an environment of trust, respect and full employee involvement It is about people, simplicity, flow, visibility, partnerships and true value as perceived by the customer lean means economical, Source: David Hogg, High Performance Solutions, 2008.

2 Thin, more value with less work 6. But isn't it about production? lean L Production P d i cuts costs and d inventories i i rapidly idl to free f cash, h which is critical in a slow economy It also supports growth by improving productivity d i i and d quality, reducing lead times and freeing huge amounts of resources esou ces Source: Principles of lean Thinking, 2004. 7. lean Enterprise Source: , 2009. 8. While the world is changing . MASS CUSTOMIZATION. REDUCED TIME TO MARKET. GLOBALIZATION. 9..maybe we are missing something? Product P d t iis changed h d Customer and market demands for value creation incorporating sustainability, cultural aspects and customisation Production of affordable & sustainable (social, economic, environment). products requires effective lean design and engineering Product Designg and development p ((PD)) is more and more complex p Design stage impacts whole Product lifecycle 80% of manufacturing cost determined in design stage Time available for PD is decreasing Complex-design products not easy to make lean in production stage (causing waste & non-value added activities).

3 There is much more opportunities for competitive advantage in PD than anywhere else! 10. The time variable Reduced TTM. Design and development Today 40% 60% Production 30 - 40%. Yesterday 15% 85%. 11. The time-space variable Suppliers Product Manager Co-designers 12. Then: lean Thinking itself might be improved lean Thinking . lean Manufacturing lean Enterprise lean Product (and X. (Shopfloor) (management) Process ) development Definition exists Definition exists New idea Value Stream Mapping Value Stream Mapping Dedicated tools not exist (VSM) (VSM) No VSM. Eliminates Waste Eliminates Waste No full models available Tools exist ( JIT, Kaizen, Creates Value Engineering based Jidoka) Tools exist ( 5'M). Models available Models available Technical & Engineering Management based based 13. lean Thinking in Product Design & development lean principles in Product development lean objective is to identify Value and Non-Value Add d A.

4 Added Activities ti iti (VAA), (VAA) ini order d tot eliminate li i t Non- N. Value Added (NVA). VAA in Product development is any activity that would result in customer requirements being met (or exceeded). Engineering decisions in Product development must be based on p proven knowledge g and experience p Failure to apply proven knowledge and experience could result in Product and Process redesign (NVA). 14. Taking care of the fact Whil While manufacturing f i isi a repetitive i i transactional-based i l b d activity, i i which might concretize the decision taken by others Product oduct Design es g aandd development e e op e t iss a recursive ecu s e and a d reiterative e te at e intellectual activity, where designers and engineers might find solutions for given problems Design and development mean defining, defining analyzing analyzing, testing testing, comparing, choosing, specifying, documenting, etc.

5 Requirements Concept System Design Detail Design Specs 15. lean PD literature 16. Toyota lean PD System 17. Toyota lean PD System 5. Develop a Chief Engineer System to 11. Adapt Technology to Fit your People Integrate g development from Start and Process to Finish 12. Align your Organization through 6. Organize to Balance Functional Simple, Visual Communication Expertise and Cross-functional 13. Use Powerful Tools for Standardization Integration and Organizational Learning 7. Develop Towering Technical Competence in all Engineers 8. Fully Integrate Suppliers into the Product development System 9. Build in Learning and Continuous Improvement 10. Build a Culture to Support Excellence and Relentless Improvement Source: Morgan & Liker, 2006. 1. Establish Customer Customer-Defined Defined Value to Separate Value-Added Value Added from Waste 2. Front-Load the PD Process to Explore Thoroughly Alternative Solutions while there is Maximum Design Space 3.

6 Create a Leveled Product development Process Flow 4. Utilize Rigorous Standardization to Reduce Variation, and Create Flexibility and Predictable Outcomes 18. P1: Establish customer- defined value to separate value-added from waste Main objectives of lean R. Remove Waste W t (cost ( t reduction). d ti ). Maximise Value (meet/exceed customer requirements). Waste Any activity that takes time and money but does not add value from the customer's perspective Value Added Activity Any activity that transforms or shapes raw material or information to meet customer requirements Non-Value l Added dd d Activity Any activity that takes time, resources, or space but does not add value to the Product itself 19. Value in Product development Value Added Design and testing 10%. Wasted time Search for data Waitinf for data Data translation 30%. Wrong data Data coding 60%. Non Value Added, but needed Specification Source: PLM Alliance, 2007 Coordination 20.

7 Waste in manufacturing Seven types of waste Over Production (without demand). Waiting (for next step of production). Transportation (un-required movement of products). Inventory (components, WIP, finished Product not being processed). Motion (un-required movement of people/equipment). Over Processing (creates extra activity as result of poor design). d i ). Rework / Defects (inspecting, repairing, redesigning). 21. Waste in Product development Two major types Waste associated with the Process of Product D. development l t itself it lf ( ( knowledge, k l d communication, and resource). Waste created by poor engineering that results in low levels of Product or Process performance, performance then embodied in the same Product design ( complex design, g , poor p manufacturingg processes p compatibility, p y, and custom parts). 22. Waste in Product development Strategy Wastes Too many products Over Production Too many projects Inappropriate processing W.

8 Wrong projects j t Failure to identify and manage design risk Over /. Technology acquired but not used I. Inappropriate i t Processing Poor make versus buy decisions resulting in inability to deliver P. Poor llong-term t understanding d t di off customer t needs d Lack of focus 23. Waste in Product development Organizational Wastes Wrong Poor Process focus and visibility organization Roles not clear structure Poor team arrangements (including geography). Inappropriate pp p Poor training and skills development individuals Inappropriate behavior Lack of appropriate number of correct human resources Lack of resources Poor technology take up Poor utilization of people Untapped pp human Poor representation p of different function on Integrated g potential Project Teams Lack of continuity (of people). Inappropriate Poor Process management processes Lack of Process knowledge capability 24. Waste in Product development Operational Wastes Over specification - over designed Over Failing to optimise design Engineering / Too much and wrong timing for detail Production Too much detail and unnecessary info Redundant development (re (re-use use not practised).)

9 Information created too early Late in delivery Waiting to Process information Waiting Waiting for information ( inability to deliver prototypes quickly and correctly). Unavailable or of suspect quality 25. Waste in Product development Operational Wastes Multiple sources and transport needs Communications failure and non-conformance Lack of standardisation of processes Lack of use of standard parts and / or lack of commonality Lack of common prioritisation Transportation Information formats - Lack of common/compatible standards Information systems Incompatibility, leading to manual transfer waste, waste and conversion waste Poor interface control or management of design data among departments 26. Waste in Product development Operational Wastes Unnecessary details and too much information Incomplete content Inventory Poor configuration management Poor parts codification Information pushed to wrong people Unnecessary manual intervention due to poor Motion system connectivity Too many data interfaces 27.

10 Waste in Product development Operational Wastes Unnecessary development activities Unnecessary serial processing Out of sequence working (due to poor integration). Inappropriate changes (changes not customer driven or not of benefit to business). Re-work due to changing priorities or requirements Excessive verification Over authorisation Over / Poor/ bad decisions affecting future Inappropriate Excess /custom processing Too many or too little iterations / cycles Processing Working with wrong/incomplete information Processing of defective information Information created / passed too early/late Data acquired then not used Unnecessary data conversions Poor parts re-use Over or inappropriate tolerancing Use of inappropriate technology 28. Waste in Product development Operational Wastes Quality lacking or suspect Conversion error Wrong level Incomplete, ambiguous, inaccurate design Tolerance exceeded Failure to understand and capture requirements Poor design for X - manufacture, assembly, cost, reliability, Reworks / and supply Defective f Poor Process outputs (poor specification , unclear requirements).