Lean Development and Management 2012 Learning Group

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1 EIRMA/ Lean Development and Management 2012 Learning Group 10 & 11 September 2012 Hotel Villa Modigliani, Paris, France Summary Learn about practically introducing and using Lean Development in R&D. Ever since Toyota's first lean approaches, companies have been looking at the value of introducing lean principles in R&D. "Lean" is not about cost cutting but about intelligent product development and thus enhancing productivity. This is achieved by reducing waste, streamlining engineering, creating an end-to-end customer and business perspective, and thus ensuring customer perspective with each step of R&D. "Lean" is not trivial, and many companies struggle and fail to achieve tangible results. Nevertheless it is an important success factor in today s economic climate: Knowing what matters and doing it. This seminar will address Lean Development principles and their implementation, such as focus on the value stream, using the market perspective, thinking long-term, and working in teams. It will provide many hands-on examples how companies address it to optimize their R&D. Learning Group We will work in a workshop format to look how to practically implement Lean and how to mitigate the risks in such a change process. The seminar will provide experiences to participants, as well as traps and tips, complementing their knowledge and competences in lean development and management. The useful case studies will offer opportunities to underpin the learning with practical interactive examples and by doing. Issues addressed < The Learning Group will focus on "lean" principles and practical insights from R&D in different industries < Experiences and strategies in implementing lean development < Is Lean applicable to all industries? < How to translate Lean principles to a specific environment? < How robust is this in a time of crisis? < How does a company like Toyota approach crises? < What are the implications for your customers? < How to manage the culture change when moving to Lean? Target Audience R&D Managers, Product Managers or Advanced Development Managers who are interested in better integrating lean principles in their organisation Learning Group Leader Dr Christof Ebert, Managing Director at Vector Consulting Services. Formerly global Director R&D at Alcatel. Guest editor on Lean Development at IEEE. Innovation Processes Business strategy Key themes Intellectual Asset Management 8 Online registration before 30 August 2012 on EIRMA website: People and Knowledge Public frameworks

2 LEAN DEVELOPMENT AND MANAGEMENT There are good reasons for EIRMA to revisit the usage of lean principles in R&D. While we see lean practices such as eliminating waste or improving interfaces and workflows being, we are still in the early phases of truly understanding what is lean in R&D. The intangible nature of R&D, the developers as knowledge workers and the difficulty in defining flow make the application of lean principles and practices difficult. But the need is there across industries. Lean conferences are born, Lean books are being sold and many R&D organizations are keenly adopting them in use. This Learning Group will emphasize lean thinking and how it influences R&D, and have relevance to the success and performance of R&D organizations and projects. We are interested to learn from industry experiences, what principles deliver which value and how it is introduced in order to best manage the change. Participants are primarily interested in R&D, rather than interested in manufacturing theories. OVERVIEW Lean Development is a product development paradigm with an end-to-end focus on creating value for the customer, eliminating waste, optimizing value streams, empowering people and continuously improve (see figure below). Lean thinking has penetrated many industries. It was first used in manufacturing with the clear goal to empower teams, reduce waste, optimize work streams and above all keep market and customer needs always as the primary decision-driver. The demand for intelligent cost savings over the past years has made all industries looking to these methods. Although claims were that lean principles from manufacturing can not apply to a creative engineering and design discipline, many studies had proved the simple wisdom that similar to production, we benefit from empowered and motivated teams, we can learn from previous defects, we can emphasize on repeatable processes and we can build from high quality components. Moving from craft to production, many R&D organizations are now set for transforming to customer-centric and serviceoriented development. This means in today competitive markets both reducing life-cycle cost and increasing efficiency and effectiveness by eliminating waste and adding value. It is about developing capability to be flexible and adaptive to changes. Continuously improve Create value for the customer Empower people Eliminate waste Optimize value streams Entire business processes are based on lean principles with ebay as a prominent example as investigated by Business Week. With the worldwide economic crisis in 2009 many companies across industries started looking to lean principles to get their R&D organizations more efficient. More recently the same companies back again in business find themselves looking to lean to compensate for increasing lacks of sufficient engineers. In a 2010 survey of Forrester, 35% of surveyed organizations described their primary development method as based on agile and lean principles. Forrester had interviewed development managers of companies such as HP, IBM and Microsoft and found they all adopt these practices in order to be more flexible, closer and faster to service customer and market needs. Yet only 39% of the

3 organizations surveyed consider their lean implementation as mature as Forrester found in a related survey questioning the nature of adoption. There is a dark side to this fast move towards lean development as we face in our own experience. Too often we face that the hype is exaggerated and lean principles are only superficially introduced, such as a specific method without exactly knowing what to expect and where the limits are. Companies and eager managers take lean in an unreflected way, just pushing for doing less in the same time, while scarifying quality needs, such as maintainability or security. And we should be aware that some lean principles just don t fit to creative and innovative R&D organizations. Flow and queuing theory for instance is not at all practical for normal business. The five core principles of lean management (i.e. customer focus, reduce of waste, empowered teams, efficient workstreams and continuous improvement) had been coined long ago. But we still lack a coherent set of features applicable to lean development. While for instance some people reduce Lean to results (e.g., less waste) others would look primarily to a single method (e.g. apply value stream analysis or empower teams). It is thus our goal to also share the content to better align on what we consider Lean within R&D organizations, and what the necessary methods are. This one and a half day seminar will focus on key elements of lean development and management, and how to successfully use lean principles in R&D. It will address the following issues: < Lean principles and practical insights from R&D in different industries, focusing on various experiences and strategies in implementing lean development by sharing practical case studies < Is Lean applicable to all industries? < How to translate Lean principles to a specific environment? < How robust is this in a time of crisis? < How does a company like Toyota approach crises? < What are the implications for your customers? < How to manage the culture change when moving to Lean? The Learning Group offers a well-balanced programme of tutoring, case studies and mutual learning in interactive sessions and discussions on Lean Development and Management.

4 PROGRAMME Monday, 10 September :00 onwards Registration and lunch 13:30 14:00 Welcome & Introduction Dr Christof Ebert Learning Group Leader, Managing Director, Vector Introduction to the purpose and programme of Learning Group 14:00 14:30 Introduction of participants 14:30 16:30 General introduction Principles, purpose and practice of Lean Development. Lean Development implementation in R&D organizations, such as focus on the value stream, using the market perspective, thinking long-term, and working in teams. It will provide many hands-on examples how companies address Lean Development to optimize their R&D Dr Christof Ebert Learning Group Leader 16:30 17:00 Coffee Break 17:00 18:30 Lean Development & Management in practice An interactive guided tour through experiences and innovations related to lean management. What are the specific contents and experiences to apply lean principles in R&D? How to lay out and implement Lean development in a R&D organization? How to benefit from Lean principles? How to reduce waste in a R&D setting, such as product development? What can we learn from companies that already successfully thrive on Lean Development? Which are the used techniques for managing a lean R&D organization? This session will build on experiences of all attendees and requires interaction plus sharing of own experiences. Dr Christof Ebert Learning Group Leader 19:30 onwards Apéritif and Dinner Opportunities for discussions will continue until and during dinner in a nearby restaurant.

5 PROGRAMME Tuesday, 11 September :30 09:30 Interactive Discussion Opportunities for participants to discuss questions related to preceding sessions. Participants can present issues and problems they have encountered related to adopting lean development. 09:30 09:45 Introduction to Case Studies: Lean in Practice Target is to share experiences from transformations towards Lean principles in R&D organizations. Example of topics being addressed: What are the practical success factors for Lean R&D? How to measure the benefits and progress of Lean R&D? How to make sure we are in-line with corporate strategy? How to align strategic changes towards Lean Development with immediate operational needs? How to make sure the various functions cooperate to make the transition effective? What are the benefits of Lean Development vis-à-vis other innovation and productivity concepts? Dr Christof Ebert Learning Group Leader 09:45 12:30 Interactive Case Studies from different industries based on participants experience 12:30 14:00 Lunch 14:00 16:30 Presentation of cases studies results by participants and open questions 16:30 17:00 Potential next steps and wrapping up

6 PRACTICAL ARRANGEMENTS Venue & Accommodation Hotel Villa Modigliani 13, rue Delambre Paris Tel: +33 (0) EIRMA will book accommodation as required on behalf of participants. The rate for a single room is 145, breakfast and service included, to be paid directly to the hotel. Transportation By Public Transport: From Roissy CDG airport: Take RER B to station Denfert-Rochereau (45 minutes). Change to metro line 6 (direction Etoile). Exit station Edgar Quinet (about 3 minute journey). From Orly: Take OrlyBus to Denfert-Rochereau. Change to metro line 6 (direction Etoile). Exit station Edgar Quinet. From Gare du Nord: Take metro line 4 direction Porte d'orleans. Exit at Vavin Closest Metro Stations: Edgar Quinet (line 6) and Vavin (line 4) By Taxi: From Roissy, approximately 45 minutes, 55 euros From Orly, approximately 30 minutes, 40 euros Registration Please register as soon as possible but certainly before 30 August 2012 The online registration form is available on the EIRMA Website The meeting registration fee of 950 covers the cost of meeting facilities, gettogether dinner and lunches. Payments We prefer payment by bank transfers but can also accept credit card (Visa, MasterCard or American Express) and cheques provided this is at no cost to the Association. All participants will receive confirmation letters and an invoice or receipt as appropriate. Cancellations Please give as much notice as possible if you are obliged to cancel. We will refund the registration fee for cancellations received 72 hours before the meeting. Unfortunately we have no control over the hotel s cancellation policy and you may be required to make full payment for cancelled rooms that remain unused. Names may be substituted at any time without charge.

7 REGISTRATION FORM Lean Development and Management: 2012 Learning Group 10 & 11 September 2012, Hotel Villa Modigliani, France 8 Online registration available on EIRMA Website: However, if you have no or limited access to internet, you may return the form below before 30 August 2012 by to cternest eirma.asso.fr Title: q Prof. q Dr. q Mr. q Ms. First Name:..... Last Name:..... Position:... Company:.. Department:... Address: ZipCode:. City: Country: Tel:.. Cell: Assistant s . I will q / will not q attend the EIRMA Learning Group on 10 and 11 September 2012 I will q / will not q require hotel accommodation for the night of 10 th September 2012 (See Practical arrangements ) Event's fee: 950 The meeting registration fee covers the cost of meeting facilities, refreshments, dinner and lunches. To be paid by Card (Eurocard, master, Visa, Amex), Cheque or Bank Transfer. Mode of Payment qcard (Eurocard, master, Visa, Amex) Card Number: I I I I I I I I I I I I I I I I I I I I Exp. Date: / Security Code: I I I qcheque qbank Transfer Account N Crédit Industriel et Commercial - 34, avenue Marceau - F Paris Code Banque Code guichet Clé 46 - Domiciliation Paris Marceau IBAN: FR BIC: CMCIFRPP EIRMA, as an association, is not subject to VAT *** For any further information please contact: Ms. Carine Ternest, EIRMA Operations Team cternest eirma.asso.fr

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