Accelerating Innovation · •First-mover benefits •Tap new technology •Agile capability •Faster learning and process improvements •Capitalize quickly on cost savings •Better

Accelerating Innovation Norbert Majerus

Lean Frontiers Webinar – Nov. 2017

If I had only one thing to focus on, it would be SPEED

Fast is better than slow…

Competitive advantage

Faster Learning, better risk

management

Better cash flow

Collaterals of efficiency

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• First-mover benefits

• Tap new technology

• Agile capability

• Faster learning and process improvements

• Capitalize quickly on cost savings

• Better cash flow and faster return on investment (ROI)

• Motivated and engaged engineers

• …………

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Fast is better than slowThe faster you flow, the lower the cost (Brian Maskell L/F San Antonio 2016)

After safety, quality, and delivery, focus on improving the speed of your process.

Fast is Better Than Slow

Modeling and knowledge reuse

Rapid learning cycles / MVP

Quick prototypes and very fast but comprehensive testing

LEAN Horizontal Project management

Overlapping activities

Concurrent work

Flow and Pull

Visual management

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Manage incoming work

Eliminate waste

Schedule to Capacity

Single piece flow or CONWIP

Level work with (70% of) capacity

Standard work / flexible capacity

Matrix / Project Management

Bottleneck management

Late start

Colocation

TCP : Technology Creation Process

Phase CProof ofConcept

Phase BConceptScoping

Phase DDetailed

Assessment

GateB

GateC

GateD

GateA

ICP: Innovation Creation Process (Global)

(Global)

(Regional)

Product Leadership Strategy

Transition Phase

5

PCP Roadmap

Goodyear TWO Processes

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TCP : Technology Creation Process

Phase CProof ofConcept

Phase BConceptScoping

Phase DDetailed

Assessment

GateB

GateC

GateD

GateA

ICP: Innovation Creation Process (Global)

(Global)

(Regional)

Product Leadership Strategy

Transition Phase

6

PCP Roadmap

Goodyear TWO Processes

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Regardless of the PHASE

• Collaboration

• Concurrent Work

• Mange Work in Small Pieces

Win at the Intersection

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InnovationExcellence

“Great products meeting consumer

needs”

Sales & MktgExcellence

“Consumer-centricdriven pull”

Operational Excellence

“Right tires, rightplace, right cost”

Collaborate and align to win at the intersection

Goodyear R&D Process

Value Stream Collaboration

• All functions engaged from the beginning

• Targets set JOINTLY – but they evolve

• CONCURRENT development

• Functional and personal agenda take a back seat to the value for the customer and the growth of the company

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Tetris Principle

Short Cycles to- Learn faster- Schedule easier- Manage the risk better

Short Cycles - Are easier to schedule- Allow better risk management- Create knowledge faster

Goodyear Iteration Process

Goodyear Iteration Process

TCP : Technology Creation Process

Phase CProof ofConcept

Phase BConceptScoping

Phase DDetailed

Assessment

GateB

GateC

GateD

GateA

ICP: Innovation Creation Process (Global)

(Global)

(Regional)

Product Leadership Strategy

Transition Phase

16

PCP Roadmap

Goodyear TWO Processes

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Execution

• Fast, Predictable (on time)

• Lean Principles• The cost of time

• Eliminate Waste

• Visual Management

• Schedule to capacity (70% of it)

• Single piece flow

• Overlapping Activities

• Late Start

• Pull/kanban

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Winning With Innovation

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The Cost of Time/Delay

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Performance

Development Cost

Time

Cost to the BUSINESS

Time

No product

Missing Feature

Additional resources

Goodyear Fuelmax

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Waste

21

TransportationInventory

Motion

Waiting

Overproduction

Overprocessing

Defects

Underutilization

1,500+ new SKU’s globally every year1,000+ Projects at one time4,000 learning cycles/year30 min business meeting every 2 weeks

Visual Planning

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Visual Planning TO CAPACITY

75-80% lineBuffer

75% of weekly plant capacity:

4 prototype sets per week

Schedule product development processes at 70 % –80% utilization or lower.

More Traffic Analogies

5:00 AM 5:00 PM

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Utilization and Cycle Time

• As utilization approaches 100%, cycle time rises rapidly.*

• High variability in arrival time and/or processing time magnifies this effect.

Strategies to reduce the utilization impact:

• Flexible capacity – matrix organization / outsourcing

• Make queues visible• Schedule at less than 100%• Level work between functions

*The basic relationship:

CT = Average Processing Time * (Utilization Ratio / (1-Utilization Ratio)).Search “Kingman’s formula” and related for more information.

Little’s Law

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Th

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Multitasking • Exercising, listening to music and talking or cooking and talking on the cell

phone could be considered doing two or more things at the same time!

• Doing two projects at the same time is not as easy – normally one is being worked on, the other one waits.

• This multi-task game may be a little like trying to handle too many projects at the same time…

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Stop and Go• A lot of people who think they multitask are actually only working on one

task at the same time – all other tasks wait.

• This leads to “stop-and-go.”

• Doing a task in “stop-and-go” mode adds extra time due to “restart delays.”

• A good analogy is traffic:• Red lights

• Stop Signs

• Roundabouts

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Tire Build

Tire Build

Design

MoldEng.

Mold Mfg.

Construction Modeling

Tire Testing

Concurrent Engineering

Materials Development

Single Piece Flow Focus Resources and Eliminate WaitTimes

Design

MoldEng.

Mold Mfg.

Construction Modeling

Tire Testing

Materials Development

Prepare

Prepare

Prepare

Prepare

Prepare

Prepare

Prepare

ITERATION

KICKOFF

MEETING

Kickoff Meeting SharedInformation / Up-FrontPreparation

Teamwork / Parallel Engineering

Downstream Activities arePlanned / Scheduled

Late Start

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Late Start

• Dealing with perishable information

• Manage changes

• Lock in designs as late as possible

• Dealing with engineers (Parkinson Principle)

• Investment

• WIP or inventory

• Latest technology and opportunities

Every iteration is started as late as possible but with

enough time to finish, including a small buffer to account

for variability

Push and Pull

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Work Authorization - Kanban

TCP : Technology Creation Process

Phase CProof ofConcept

Phase BConceptScoping

Phase DDetailed

Assessment

GateB

GateC

GateD

GateA

ICP: Innovation Creation Process (Global)

(Global)

(Regional)

Product Leadership Strategy

Transition Phase

35

PCP Roadmap

Goodyear TWO Processes

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The Fashion Model

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Innovation Cycle

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DIVERGE CONVERGE

TEST

LEARN

BUILD

Name functionor work to do

TO DO IN PROGRESS DONE

Time Period

Goal, deliverable ….

Quick Learning Cycles - SCRUM

• Easier to schedule - Use time limit if no logical break

• Team/customer/stakeholders set/reset goals for every cycle

• Easier to manage risk – allocate money in small batches

• Frequent pivot/reflection and decision points

• Logical sequence – go/no go

• Teams self organizing, sometimes self directing

• Faster learning

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Google Venture

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Decision Tree Scheduling

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Most critical assumption to be verified orMost critical question to be answered

Quickest and simplestExperimentStudyModel…

Continue Freeze

Minimum Viable Products

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Knowledge Reuse and Modeling• Use knowledge to build good computer modeling or

“predictive” tools

• Test to validate/improve the models

• Allows quick set based and DOE’s

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Tires for Chevy “VOLT” (electric) were developed virtually with a vehicle model supplied by GM – no tire/car built before “approval”

Tires and vehicle were developed concurrently

TCP : Technology Creation Process

Phase CProof ofConcept

Phase BConceptScoping

Phase DDetailed

Assessment

GateB

GateC

GateD

GateA

ICP: Innovation Creation Process (Global)

(Global)

(Regional)

Product Leadership Strategy

Transition Phase

42

PCP Roadmap

Goodyear TWO Processes

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Contact

• 330 801 3184