Introduction to Lean Product and Process Development

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).

2 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.

3 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).

4 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). 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%.

5 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.

6 lean Thinking in Product Design & Development lean principles in Product Development lean objective is to identify Value and Non-Value Add d A. 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).

7 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. Requirements Concept System Design Detail Design Specs 15.

8 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.

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. 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.

10 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%.