Introduction to Lean Product and Process Development LeanPPD Consortium l d www.leanppd.eu 1
LeanPPD Project & Consortium
• EU funded project• 4 year (Feb 09 – Feb• 4 year (Feb 09 Feb
13)• 7,8 ML€ budget7,8 ML€ budget• 12 European partners• www.leanppd.euwww.leanppd.eu
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How to live (or survive)?
• Next Ricardo’s competitive advantages…
• Keynesian policies…
• Schumpeterian strategies…
• Lean approaches…
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Lean? Where? When?
• Japan– 1945, economic post-
war crisiswar crisis– 1965, market
liberalizationliberalization– 1970ies, petroleum
crisis & gas emission regulation
– 1990ies, local financial crisiscrisis
– 2008, global financial crisis
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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
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Source: www.takt.com & www.lean.org
Lean is…
A i d f hi ki i h• A mindset, or way of thinking, with a commitment to achieve a totally waste-free operation that’s focused on your customer’s success
• It is achieved by simplifying and continuously improving allcontinuously improving all processes and relationships in an environment of trust, respect and full employee involvementemployee involvement
• It is about people, simplicity, flow, visibility, partnerships and true value as perceived by the customer
Source: David Hogg, High Performance Solutions, 2008Lean means economical,
thin, more value with less work
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work
But isn’t it about production?
L P d i d i i idl f h• Lean Production cuts costs and inventories rapidly to free cash, which is critical in a slow economy
It also supports• It also supports growth by improving
d i i dproductivity and quality, reducing lead times and freeing huge amounts of resourcesesou ces
Source: Principles of Lean Thinking, 2004
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...maybe we are missing something?
P d t i h d• Product is changed– 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 Design and Development (PD) is more and more complexg p ( ) p
– Design stage impacts whole product lifecycle– 80% of manufacturing cost determined in design stage
Time available for PD is decreasing– 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!
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The “time” variable
Reduced TTM
Today 40% 60%Design and DevelopmentProduction
30 - 40%
15% 85%Yesterday
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Then: Lean Thinking itself might be improved
Lean Thinking
Lean Manufacturing(Shopfloor)
Lean Enterprise(management)
Lean Product (and Process) Development√ X√Definition exists
Value Stream Mapping(VSM)
Definition exists Value Stream Mapping
(VSM)
New ideaDedicated tools not exist
No VSM
√ X√Eliminates Waste
Tools exist (e.g. JIT, Kaizen, Jidoka)
Models available
Eliminates WasteCreates Value
Tools exist (e.g. 5’M)Models available
No full models availableEngineering based
Models available Technical & Engineering
based
Models available Management based
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Lean Thinking in Product Design & Development
• Lean principles in Product Development– Lean objective is to identify Value and Non-Value
Add d A ti iti (VAA) i d t li i t NAdded Activities (VAA), in order to eliminate Non-Value Added (NVA)VAA in Product Development is any activity that– VAA in Product Development is any activity that would result in customer requirements being met (or exceeded)met (or exceeded)
– Engineering decisions in product development must be based on proven knowledge and experiencep g p
– Failure to apply proven knowledge and experience could result in product and process redesign (NVA)
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Taking care of the fact that...
Whil f i i i i i l b d i i• While manufacturing is a repetitive transactional-based activity, which might concretize the decision taken by others
• Product Design and Development is a recursive and reiterative oduct es g a d e e op e t s a ecu s e a d e te at eintellectual activity, where designers and engineers might find solutions for given problems
Design and Development mean defining analyzing testing– Design and Development mean defining, analyzing, testing, comparing, choosing, specifying, documenting, etc.
Concept
Requirements
System Design
Detail Design
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Specs
Toyota Lean PD System
5. Develop a Chief Engineer System to Integrate Development from Start
11. Adapt Technology to Fit your People and Processg
to Finish6. Organize to Balance Functional
Expertise and Cross-functional Integration
and Process12. Align your Organization through
Simple, Visual Communication13. Use Powerful Tools for Standardization
and Organizational Learning7. Develop Towering Technical
Competence in all Engineers8. Fully Integrate Suppliers into the
Product Development System
and Organizational Learning
9. Build in Learning and Continuous Improvement
10. Build a Culture to Support Excellence and Relentless
1. Establish Customer-Defined Value to Separate Value-Added from
ImprovementSource: Morgan & Liker, 2006
1. Establish Customer Defined Value to Separate 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
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3. Create a Leveled Product Development Process Flow4. Utilize Rigorous Standardization to Reduce Variation, and Create
Flexibility and Predictable Outcomes
P1: Establish customer-defined value to separatevalue-added from waste
• Main objectives of LeanR W t ( t d ti )– Remove Waste (cost reduction)
– 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• Value Added Activity– Any activity that transforms or shapes raw material or information to
meet customer requirements
l dd d• Non-Value Added Activity– Any activity that takes time, resources, or space but does not add value
to the product itself
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Value in Product Development
Value Added
Design and testing
10%
Wasted time
30%
Wasted time
Search for dataWaitinf for dataData translationWrong data 60%Wrong dataData coding
Non Value Added, but needed
Specification
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SpecificationCoordinationSource: PLM Alliance, 2007
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
d i )poor design)– Rework / Defects (inspecting, repairing, redesigning)
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Waste in Product Development
• Two major types– Waste associated with the process of Product
D l t it lf ( k l dDevelopment itself (e.g. knowledge, communication, and resource)
– Waste created by poor engineering that results in low levels of product or process performance thenlow levels of product or process performance, then embodied in the same product design (e.g. complex design, poor manufacturing processes compatibility, g , p g p p y,and custom parts)
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Waste in Product Development
Strategy Wastes
Over ProductionToo many products
Over ProductionToo many projectsInappropriate processingW j t
Over / I i t
Wrong projectsFailure to identify and manage design riskTechnology acquired but not usedInappropriate
Processing
Technology acquired but not usedPoor make versus buy decisions resulting in inability to deliverP l t d t di f t dPoor long-term understanding of customer needsLack of focus
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Waste in Product Development
Organizational WastesWrong organization
Poor process focus and visibilityRoles not clearorganization
structureRoles not clearPoor team arrangements (including geography)
Inappropriate Poor training and skills developmentpp pindividuals Inappropriate behavior
Lack of resourcesLack of appropriate number of correct human resources
Lack of resourcesPoor technology take up
Untapped human Poor utilization of peoplePoor representation of different function on Integrated pp
potentialp g
Project TeamsLack of continuity (of people)
Inappropriate Poor process managementInappropriate processes
Poor process managementLack of process knowledge capability
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Waste in Product Development
Operational WastesOperational Wastes
Over
Over specification - over designedFailing to optimise design
Engineering / Production
Too much and wrong timing for detailToo much detail and unnecessary infoRedundant development (re use not practised)Redundant development (re-use not practised)Information created too earlyLate in delivery
Waiting Waiting to process informationWaiting for information (e.g. inability to deliver prototypes quickly and correctly)prototypes quickly and correctly)Unavailable or of suspect quality
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Waste in Product Development
Operational WastesOperational WastesMultiple sources and transport needsCommunications failure and non-conformanceLack of standardisation of processesLack of use of standard parts and / or lack of commonality
Transportation
commonalityLack of common prioritisationInformation formats - Lack of common/compatible standardsInformation systems – Incompatibility, leading to manual transfer waste and conversion wastemanual transfer waste, and conversion wastePoor interface control or management of design data among departments
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Waste in Product Development
Operational WastesOperational Wastes
Inventory
Unnecessary details and too much informationIncomplete content
InventoryPoor configuration managementPoor parts codification Information pushed to wrong people
Motion
Information pushed to wrong peopleUnnecessary manual intervention due to poor system connectivityToo many data interfaces
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Waste in Product Development
Operational WastesOperational WastesUnnecessary development activitiesUnnecessary serial processingOut of sequence working (due to poor integration)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
Over /
Excessive verificationOver authorisationPoor/ bad decisions affecting future
Inappropriate Processing
Excess /custom processingToo many or too little iterations / cyclesWorking with wrong/incomplete informationProcessing of defective informationProcessing of defective informationInformation created / passed too early/lateData acquired then not usedUnnecessary data conversionsUnnecessary data conversionsPoor parts re-use Over or inappropriate tolerancingUse of inappropriate technology 28
Waste in Product Development
Operational WastesOperational WastesQuality lacking or suspectConversion errorWrong levelIncomplete, ambiguous, inaccurate designTolerance exceeded
Reworks / f
Failure to understand and capture requirementsPoor design for X - manufacture, assembly, cost, reliability, and supply
Defective Poor process outputs (poor specification , unclear requirements)Poor configuration managementP l iPoor planningPoor supplier identificationUse of immature technologyInappropriate use of toolsLack of knowledge capture and reuse
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Something that might be considered from the early
stages…
Cumulated Incurredcosts
Cumulatedcosts
Acruedcosts
Design Production Distribution & Use
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Something that might be considered from the early
stages…
Opportunities incostreductions
Change costsDoing it better
first is convenient!
Concezione Product Design Process Production Use
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odu gand
Development
oDevelopment
odu o U
Concurrent Engineering
• Integrated product development approach– Emphasis on the response to customer expectations by
producing better cheaper and faster productsproducing better, cheaper and faster products– Multi-disciplinary teams
• Sharing and exchanging required knowledge and information g g g q gin such manner that decision-making proceeds with emphasis on simultaneous consideration during the design stage of all other product life cycle aspectsof all other product life cycle aspects– As well as performing parallel activities– The individual team member is responsible throughout allThe individual team member is responsible throughout all
the project for the product development
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Concurrent Engineering
Product EngineerEngineer
Logistic
Manufacturing
Purchase
gEngineer
Marketing
FinanceConcurrent
Product l
Production
Development
Services Engineer
Customer
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Services EngineerSupplier
Set Based Concurrent Engineering
• SBCE is the core of Toyota Product Development System (TPDS)D i ti i t ti SBCE b i• Design participants practice SBCE by reasoning, developing, and communicating about sets of solutions in parallel and relatively independentlysolutions in parallel and relatively independently– As the design progresses, they gradually narrow the sets of
solutions based on additional information from d l i i l i d ff d hdevelopment, testing, simulation, trade-off, customer and other participant sets until they agree on one solution
– It is product development in a knowledge based t s p oduct de e op e t a o edge basedenvironment
• Defined by Allen C. Ward (1960-2004)
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Set Based Concurrent Engineering
(A) “Point-Based” Concurrent Engineering (B) “Set-Based” Concurrent Engineering
Set ofFeed back
Re-Selection
(A) Point Based Concurrent Engineering
Set of Design
(B) Set-Based Concurrent Engineering
Set of Design
Final Design
Evaluate against trade-off curves
Eliminate infeasible solutions Detail the designDetail the design
Combine in different ways
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Main elements of SBCE
C id b d lt ti d d ll• Consider broad alternatives and gradually narrowing them, till the optimal choice and selection
• Chief Engineers• Cross-functional team• Team communication• Working culture• Knowledge generation and re-use
Selection of set of solutions and– Selection of set of solutions and encouragement to perform several simulations, develop several prototypes and test them –leading to generation of valuable knowledge
– This knowledge is captured formally for its re-use in future projects
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SBCE Concept design level
Chief Engineer Vision : (vehicle concept design in a written document)
ef e
ngin
eer
Body Eng Chassis Eng etc
Chi
e
Stylists Develop Around 12 Artistic Concepts in 2-D
Chief Engineer: Approve the New Vehicle Concept(sketch and specification) After considering requirements
(e.g. passengers ergonomics, marketing, etc).
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SBCE System design level
Stylist:6-10 Concepts and 1/5 Scale-Clay Prototypes
engi
neer
Planning Studies of:-•Typical cross sections
•Joint definition•Preliminary parts layoutBody Eng: Kentouzeu
Chi
ef e
ManufacturingEvaluations •Preliminary parts layout
•Wire harness •Crash analysis
•Etc
Body Eng: KentouzeudrawingsInput
Evaluations
Narrow Set of Design to 2-3 Concepts for 1:1 Scale-Clay Prototypes
T t bli t
Design EngEvaluations
CAD
Toyota public event
One final Body Eng:CAD Drawing
One final design Concept
Body Eng: Kentouzeudrawings
V hi l
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Vehicle Development
UnitsFeedback & Approval Body Structures Design Plan:
kozokeikaku (K4)
SBCE Detail design level
gine
er
Body structures design plan: (K4)
Chi
ef e
n
Detail design(body panels &structural components)
Drawings sent to die Eng
(body panels &structural components)
Stamping Soft-Tool dies produced
Fit & function are adjusted
Hard-Tool dies Produced into
a screwBody
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Final designFull vehicle: Build&
Test
ody
ICT for SBCE
Collaborative Product Development and Management - CPDM
EDM PDM PLM Collaborative desktop
Authoring tools - CAx
RP/RM - CAMCAPP
CAD 2D
RP/RM - CAM
CAD 3D
DMU VRCAE VRCAE
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ICT for SBCE
‘85‘70 ‘95 ‘00
Drawing based Feature based Process based Knowledge basedDrawing based Feature based Process based Knowledge based
P t i dParametric and solid modelling
CAD 3DCAD/CAM/CAPP
IntegrationVirtual Prototypes
Knowledge based
engineeringCAD 2DDesk
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Source: Adapted from an of IBM, 2002
ICT for SBCE
CAM RPCAMCAECAPP Process Design,
Engineering and Planning
CAD
RPRM
RTRC
Physical Model
ModelGeneration
RC
Digitalmodel Visualization
DMUCAS VR
VPVirtual Model
REDrawing
CADDigitalization
Source: Adpated from an idea of the Kaemart Group
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P3: Create a leveled product development process flow
A L PD i K l d W k J b Sh hi h• A Lean PD system is a Knowledge Work Job Shop, which a company can continuously improve by using adapted tools used in repetitive manufacturing processes to eliminate waste and synchronize cross-functional activities
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Value stream mapping in PD
product flow
=information flow Lead time=30.1 days
Processing time=11.6 hours
Product developmentT Project manager Customer
=product flow
Team oject a age
Product
Parts supplier Parts shipments
oduct
shipments
Requirements Product definition BOM Hardware Testing &RequirementsDefinition
Product definitionand layout
BOM definition Assembly
Build
Testing &validation
1.1 hours
3.5 days
2.4 days
16.3 days
6 9 hours
9.7 days
0 8 hours
0.6 days
0 4 hours1.1 hours 2.4 days 6.9 hours 0.8 hours 0.4 hours
Source: Fiore, 200546
Value network analysis
V l N t k Di d• Value Network Diagram and Social Network Analysis – Ellipses represents roles– Colours of links indicate
frequency of communication– Links are labelled and given a
single arrow head to showsingle arrow head to show nature and direction of the value transfer
– QuestionsQuestions• Who do you communicate
with? How often?• What do you send/share y /
and to whom? What do you need and from whom?
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Value network analysis
R l f l i / i• Roles as agents of value creation / consumption– Flow Objects can be tangible or intangible and can include wisdom,
knowledge, information and physical objects– Flow Objects may be customer deliverable either to next in value chain
or ultimate end customer– Value can be created from intangibles and it may be negotiable throughValue can be created from intangibles and it may be negotiable through
an exchange mechanism
• Assess health of network by subjective measure or by comparison with industry benchmarkswith industry benchmarks– Coherent logic and reciprocity– Asset utilisation– Healthy balance of tangibles and intangibles– Are there dead-links, missing links?– Are exchanges fair?Are exchanges fair?
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Source: Allee, 2008
P4: Utilize rigorous standardization to reduce
variation & create flexibility• A Lean PD system creates higher-level system
flexibility by standardizing lower-level tasksy y g– Design standardization: common architecture,
modularity, and reusable or shared componentsy p– Process standardization: standardize tasks and
work instructions, from design till manufacturing processes
– Engineering skill set standardization: the right t ffi d l i t fl ibl dstaffing and program planning guarantee flexible and
skilled engineers
Ad ti f l d th d l i• Adoption of rules and methodologies
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Design methologies and rules
• TRIZ e Problem solving tecniques• Quality Function Deployment• Value Analysis and Engineering• Design to Cost and Target Cost Management• Design for X and Design to Cost• Modular design e Platform design• Design of Experiment, Robust Design, Process Capability• Clustering and Group Technology• Variery Reduction Program• Risk analysis, FMEA e FMECA• Lifecycle Analysis, Engineeering and Assessment
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P5: Develop a Chief Engineer system to integrate
development
• Chief Engineer is responsible f d t ll thfor and can tell you the exact status of any given projectproject– The Chief Engineer is not just a
project manager but a leader d h i land technical systems
integrators, he/she is the glue of the PD process
– It is to this individual that difficult decisions are brought for resolutionfor resolution
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P6: Organize to balance functional expertise and
cross-functional integration
• Integrated traditional silos th h th Chi f E ithrough the Chief Engineer
• Module development TeamsTeams
• Using obeya (“big room”) system to enhance cross-system to enhance crossfunctional integration
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P7: Develop towering technical competence in all
engineers
• Technical excellence – Rigorous hiring process – Career path for technical
skillsskills• Principle of genshi
genbutsu (actual partgenbutsu (actual part, actual place): get your hands dirty and go directly to see for yourself how the work is getting done and what the problems arewhat the problems are
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P8: Fully integrate suppliers into the PD System
• Involve suppliers from the earliest stages in concept development ofconcept development of a product – Presourcing g
arrangements – Guest engineers
• Suppliers are valued for their technical expertise in addition to theirin addition to their parts-making capability
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LeanPPD Contributions
• Identify the added value activities in PD through surveying and analyzing industrial best practicesD l t l f PD V l M i d L• Develop tools for PD Value Mapping and Lean Assessment
• Develop an approach for knowledge acquisition re use• Develop an approach for knowledge acquisition, re-use and creation to enable a Knowledge Based Engineering (KBE) system to enable a leanEngineering (KBE) system to enable a lean development process and lean product designs
• Propose a route map for the incorporation of the Lean p p pPD into organizations
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LeanPPD Assessment( l d C )(Tool Under Construction)
1. Focus on Customer Value and Value Stream Mapping (VSM)
Select Key Performance Indicators Qualitative (measured through a survey)
Quantitative (fact based)
Qualitative (measured through a survey)
Quantitative (fact based)
Level of customer participation in the development of productsIs value stream mapping technique used accurately in PDPercentage of products that used inputs from the customerPercent of Lead time reduction after using the VSM technique
1 N i i i d i h d d l h
1. Level of customer participation in the development of productsFill Qualitative Key Performance Indicators
1 2 3 4 5
1 – No customer participation during the product development phase2 – Customers are only consulted at Alpha and Beta Testing3 – Customers are consulted before starting the and at testing phase4 – Customers provide feedback in an informal way5 - Customers are involved in every step of the product development
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LeanPPD KBE( l l d)(Tool To Be Developed)
Design session
Feedback area
Geometric
Engineering applications
Design session
Input area
Geometric representation area
F tFeatures
Information management applications
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