Growing the Lean Community An LAI Plenary Conference
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1 Growing the Lean Community An LAI Plenary Conference Lean Product Development! Definitions and Concepts! April 10, 2001! Presented By:! Hugh McManus, MIT! Ed Harmon, NGC! Research Sponsored By LAI!
2 Lean Product Development Conceptually, value stream thinking is a key tool to understanding product development! Can we use classic (Lean Thinking, Leaning to See) lean techniques in Product Development?! How?!! PD is a creative process - lean doesn t apply! What is the value of staring out the window?! What is the value of a design option not chosen?! 2 - PDMcManus Massachusetts Institute of Technology!
3 Design Processes and Procedures! Aspects of Lean Projects Best Value Product Best Value Process Best Project Management Concentrate here on the processes involved in design! They are done repeatedly! Often the pacemaker (bottleneck)! Phases of Product Development From Ulrich & Eppinger, Product Design and Development Concept Development System-Level Design Detail Design Testing and Refinement Production Ramp-Up 3 - PDMcManus Massachusetts Institute of Technology!
4 Most (Aerospace) PD is process Invention is 1% inspiration and 99% perspiration -!!!!!!!TA Edison! pure waste! inspiration! value added! necessary waste! 40% of PD effort pure waste, 29% necessary waste (workshop opinion survey)! 30% of PD charged time setup and waiting (aero and auto industry survey )! Product development is 1% inspiration, 30% perspiration, and 69% frustration - HL McManus! 4 - PDMcManus Massachusetts Institute of Technology!
5 Classic Lean Value from the customer s perspective! Value Stream mapping and analysis! Eliminate waste! Flow and Pull! Perfection and People! PD has some unique aspects in each case! Solutions (at least partial) known! 5 - PDMcManus Massachusetts Institute of Technology!
6 ! Market Development! Profit! Product Development! Acquirer! End User!! Manufacture!! Deployment & Support! Value Enterprise! Value! Product Development serves the End User Indirectly- makes defining Customer Value non-trivial!! Other stakeholders make demands on PD! 6 - PDMcManus Massachusetts Institute of Technology!
7 Complexity of PD Value Constraining Requirements - Value-added actions (with respect to [w.r.t] regulatory requirements) - Minimum required time spent ensuring that OSHA, EEO, and other regulatory requirements are met. Product (Primary) Value Stream - Value-added actions (w.r.t. the Product) - Contribution to product definition (form and function) - Contribution to manufacturing process definition. - Contribution to risk reduction - Non Value-added actions (w.r.t. the Product) - Contribution to rework - Contribution to enhancement (is it a customer requirement?) - Contribution to efficiency - Contribution to technology Human Resource (Secondary) Value Stream - Value-added actions (w.r.t the Employee) - Employee satisfaction - Employee training - Employee hiring - Employee benefits Facilities/Equipment (Secondary) Value Stream - Value-added actions (w.r.t Facilities/Equipment) - Acquiring better equipment - Workplace organization Financial Resources (Secondary) Value Stream - Value-added actions (w.r.t Financial Resources) - Generating financial statements for investors - Paying employees - Acquisition 7 - PDMcManus Massachusetts Institute of Technology! Keeping & motivating employees Improving & Maintaining Facilities & Equipment Generating cash flow and contributing to competitive position Enhancing competitive position Being permitted to operate Classic Lean says attack this and other benefits will follow! Be aware of, but not distracted by, other values!
8 Defining Value in PD Slack (1998) - elements of Customer Value, needs of other stakeholders, and interactions! Complexities of global definition of value! Chase et al. - local definition PD processes contribute value via:! Functional performance of end product! Definition of processes to deliver product! Form of final output (build-to-package )! Reduction of risks and uncertainties! 8 - PDMcManus Massachusetts Institute of Technology!
9 Value Stream Mapping Womack: the flows are invisible! They are flows of information, not material! Complex, non-linear, and iterative flows! Sometimes this is bad: simplify and straighten! Others, necessary: facilitate! Informal exchanges versus procedures!! Millard will speak on value stream mapping tools! 9 - PDMcManus Massachusetts Institute of Technology!
10 Lean tools for eliminating waste Office/technical processes! Information flows! Reinterpret classic lean tools in this context! 7 Wastes! 5 S! Load Leveling! Single-minute die exchange! 10 - PDMcManus Massachusetts Institute of Technology!
11 Info-Wastes Reinterpret the seven wastes in an information context! Dramatically different interpretations, consequences, and solutions, e.g.:! 1 Over-production! Easy and cheap/free to duplicate and distribute information, but! Handling, sorting, filing unwanted information is a waste (think about your inbox )! 11 - PDMcManus Massachusetts Institute of Technology!
12 The Seven Info-Wastes 1 Over-production! 2 Inventory! Handling of duplicated information! Creation of unnecessary data and information! Information over-dissemination! Pushing, not pulling, data! Lack of control! Too much in information! Complicated retrieval! Outdated information, obsolete information! 3 Transportation! Information incompatibility! Software incompatibility! Communications failure! Security issues! 4 Unnecessary Movement! Unnecessary Handoffs! Lack of direct access! 5 Waiting! Reformatting! Late delivery of information! Delivery too early (leads to rework)! 6 Defective Products! Haste! 7 Processing! Lack of reviews, tests, verifications! Requirement is for information or knowledge and data is delivered! Unnecessary serial production! Excessive/custom formatting! Too many iterations! 12 - PDMcManus Massachusetts Institute of Technology!
13 Alternate definitions Over Production! Too much detail! Unnecessary Information! Redundant Development (Reuse not practiced)! Transportation! Information/Software incompatibility! Communications failure! Not standards based! Multiple sources! Incompatible destinations requiring multiple transport! Waiting! Information created too early! Late delivery of information! Unavailable information! Quality suspect! Inventory! Too much information! Incomplete content! Poor configuration management! Unnecessary Movement! Information User not Connected to sources, requiring manual intervention! Information Pushed to Wrong People! Processing! Unnecessary serial processing! Lack of needed information! Poor/Bad decisions affecting future! Excessive/Custom processing! Not processed per process! Too many iterations/cycles! Unnecessary data conversion! Excessive verification! No transformation instructions! Decision criteria unclear! Working with wrong level of detail! Propagation of bad decisions! Processing of defective information! Multiple tasking when not required! Defective Product! Quality lacking or suspect! Conversion error! Wrong level of information, i.e., need information/ knowledge, received data! Incomplete information! Ambiguous information! Inaccurate information! Tolerance exceeded! Poor configuration management! 13 - PDMcManus Massachusetts Institute of Technology!
14 Hand-offs! Useless information! Discarded knowledge! Wishful thinking! Testing to spec.! Ward s nine Wastes Waiting! Ignored expertise! Scatter! Wrong tool! PD may have unique wastes! Nothing sacred about the seven! 14 - PDMcManus Massachusetts Institute of Technology!
15 5 S (Straighten, Sort, Shine ) Take the time to produce a productive work environment for you! NOT about mandatory housekeeping rules! Applies directly to your cube! Applies directly to your e-desktop: sort, filter, script..! Mailbox! Files! Web! 15 - PDMcManus Massachusetts Institute of Technology!
16 SMED, Load Leveling Single Minute Exchange of Dies (vs. days) revolutionized Toyota production system! A great deal of engineering work is set-up!!! Meeting! Analyze! Interpret! Safe?! Refine! Set-up!! Validate! Collect info! Model! Revolutionize this! 16 - PDMcManus Massachusetts Institute of Technology!
17 Flow and Pull Flow achieved when PD processes move and communicate without errors or waiting! 62% of tasks idle at any given time (detailed member company study)! 50-90% task idle time found in Kaizen-type events! task idle! task active! Pull achieved when PD can be completed inside the customer s decision cycle time! We have a long way to go...! 17 - PDMcManus Massachusetts Institute of Technology!
18 Perfection and People Strive for perfection, NOT improvement or competitor benchmarks! A neglected lean principle: Use the capabilities and knowledge of the people doing the tasks! Engineers hate to be told what to do! Engineers are perfectionists! Turn a barrier into an enabler! 18 - PDMcManus Massachusetts Institute of Technology!
19 Summary Classic lean can apply to PD processes! Especially to (but not limited to) repeated design processes! Value defined! Value stream tools exist! Lean tools apply with some interpretation! Participation and control by people in the process is a key enabler! Change incremental, but strive for perfection! 19 - PDMcManus Massachusetts Institute of Technology!
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