Lean/Toyota Product Development Dr. Jörgen Furuhjelm Jorgen.Furuhjelm@saabgroup.com 2009-03-31 INTERN SAAB AEROSYSTEMS
Lean/Toyota Product Development Items for today: Some terminology Lean vs. Toyota Product Development Why look at Toyota? What is significant for Toyota s Product Development? What are the general differences between Toyota s and western companies product development?
Start-up: Lean/Toyota Definitions Lean Production is the Western style model for explaining Toyota Production System (TPS) Lean Production is well practiced, well documented and well understood. Lean Development or Lean Product Development is the Western style model for explaining Toyota Product Development Lean Development is hardly at all practiced, only a few books exists and is poorly understood.
Why look att Toyota (1)? Annual sales 1996-2007 10 000 000 9 000 000 8 000 000 7 000 000 6 000 000 5 000 000 4 000 000 3 000 000 GM Ford Toyota Chrystler VW 2 000 000 1 000 000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Antal Profit/Loss 2007 GM-lost 40 Billion US$ TOYOTA-profited 15 Billion US$ Källa: History Of Auto Production DriverSense.com - Kevin Fleming
Why look at Toyota (2)?
Why look at Toyota (3)?
Why look at Toyota (sum-up)? Good profit & steady growth rate (over decades) Triumph of Lean/Toyota Production System Openness significant research (Soebeck) Improved imagine 1: From dull to innovative (Prius) Improved imagine 2: From dull to luxurious (Lexus) Highly ranked in Quality/Customer satisfaction Toyota must have a superior product development!
Toyota vs. Western product development
Western style Product Development: Focus on the process
Toyota vs. Western PD Customer focus WESTERN COMPANIES Market department Gut feeling Centralized knowledge Extensive Market Specs. (Demands/wishes) Chief engineer small staff Comprehensive data collection Common knowledge Chief Engineer s Concept
Toyota vs. Western PD Project Management WESTERN COMPANIES Project Manager Market Manager (cont. resp.) Chief engineer (cont. resp.) Matrix organization with Line Managers with technical responsibility Matrix organization with Line Managers with technical responsibility
Toyota vs. Western PD Building knowledge WESTERN COMPANIES Significant difficulties: Low value No standard formats Higher staff turn-over Long traditions: High value Extensive checklists A3 report (training) Hansei = Reflection events Kohai/Sempai Introduction programs PDCA Design then test (for verification) Test (to build knowledge) then design
Toyota vs. Western PD Frontloading WESTERN COMPANIES Concept phase: - Unstructured ( fuzzy front-end ) - Key people tied up in (delayed) other projects Point-based development Hand-off from Market Dpt. to Project Management Kentou (concept phase) - Structured process (of demand breakdown, competitor tear-down, broad concept feedback using checklists) - Committed key people Set based (component) development risk reduction Chief Engineer leads Market Study Concept Detailed design Testing Production Preparation L/O
Toyota vs. Western PD The Toyota paradox: set-based is cheaper Unproven Proven WESTERN COMPANIES Unproven Proven
Toyota vs. Western PD Communication in product development WESTERN COMPANIES All sorts some standards Visualization (Boards on walls) Obeya (Great Room) A3 reports (proposal, status report, information, problemsolution) Genchi Genbutsu
Toyota vs. Western PD Even and steady flow WESTERN COMPANIES Careful planning But, a bumpy ride with plenty of loops Careful planning (local level) Adherence to plans Frequent follow-ups Escalation of problems (PDCA)
Sum up Lean is a never-ending journey of waste elimination to eliminate waste and to press on value-adding activities through the means of continuous improvements and efficient knowledge transfer Focus on flow and not only delivery Focus on knowledge and not only delivery