Lean new product and process development
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The document outlines a free workshop series focused on value innovation through lean new product and process development, delivered by the Center for Enterprise Excellence Solutions (ICEES). It highlights the importance of effective product development, showcases successful case studies like Lexus and Goodyear, and introduces concepts such as simultaneous engineering and the Oobeya management approach. The workshop aims to improve profitability and efficiency in product development while reducing risks and enhancing team collaboration.
Lean new product and process development
- 1. 6/6/2021 1 Value Innovation Through Lean New Product & Process Development Free Workshop Series Our Team Innovation Center for Enterprise Excellence Solutions (ICEES) is a process innovation solutions provider specializes on Lean (Toyota Production System), Six Sigma and Total Productive Maintenance (TPM) concepts. We deliver knowledge and solutions with our expert team that collectively possess 150+ years of hands-on experience in enterprise transformation. About ICEES VISION “Enabling potential by pioneering transformation for the good of individuals and enterprises” LAPITHA GUNASINGHE ASANKA HENEGEDARA Director 20 Years of experience in Lean Six Sigma Director 10 Years of experience in Lean and TPM KATSUO SAKURAI Advisor Former Chief Engineer at Toyota with 40 years of experience SUJEEWA WAIDYATHILAKA Trainer & Consultant 23 Yeas of experience in Job Instruction Training INDIKE JAYALAL Trainer & Consultant 20+ Yeas of experience in lean TL GL structure and Quality Circles YUKO YABE Advisor Consultant at Boeing SASANKA ABHAYAWICKRAMA People Side of Lean & Change Management 10+ Years of experience as Lean HR Professional NAWAF MUBARAK Non-Executive Director Business Owner & Entrepreneur
- 2. 6/6/2021 2 TOYOTA ENGINEERING CORPORATION Our Partners http://toyota-engineering.co.jp/english/link/ Global Innovation Institute AUTHORIZED TRAINING PARTNER GLOBAL INNOVATION INSTITUTE X.0 Concepts INDUSTRY 4.0 PARTNER Airline Agriculture Food & Beverage IT & Software Apparel Textile Textile Education Public Programs Apparel Our Versatility Tobacco
- 3. 6/6/2021 3 About Facilitators Toshio Horikiri President – Toyota Engineering Corporation Kartsuo Sakurai Sensei on New Product Development Yuko Yabe- Consultant - Boening John Shook – President Lean Enterprise Institute Shimitzu San Toyota Engineering Corporation Matsumoto San TPM Consultant Tony Chamblin Lean Problem Solving Crit Fisher Built In Quality Concept Koichi Kai Gemba Kaizen Expert Taki San Toyota Manufacturing Corporation – Japan | USA Cevdet Ozdogon Lean Enterprise Institute B Sharma Lean Consultant ASANKA HENEGEDARA Director – ICEES Global TPS Instructor |Lean Six Sigma Blackbelt | MBA(PIM)|BSc Eng (UoM)| ACMA| CGMA Experienced in Lean Transformation in Airlines, Textile, Porcelain, Hospital and Food industries in Sri Lanka & Bangladesh. Former lean change agent at MAS Holdings who led multiple initiatives at cooperate and divisional level. LAPITHA GUNASINGHE Director – ICEES Global TPS Instructor | Lean Six Sigma Blackbelt| MBA (ICFAI)| Dip in Industrial Eng (IMS)| )| Dip in Manufacturing Worked as the Vice President – Lean Enterprise of inQube Global (Pvt) Ltd. Lapitha has engaged in lean transformation activities in his career in Hong Kong, Vietnam, Cambodia, Bangladesh and the Maldives. Value Innovation Through Lean New Product & Process Development
- 4. 6/6/2021 4 Why New Product Development ?
- 5. 6/6/2021 5 Reality of New Product Introduction Failure Rate of 75% Samsung Galaxy Note 7 The company said that errors both in design and manufacturing affected batteries by two different manufacturers. Cost $5.3 Bn & huge damage to the reputation New Coke - 1985 While New Coke fared well enough in nationwide taste tests before launching in 1985, it turned out those were misleading. Coke abandoned the product after a few weeks and went back to its old formula. RMS Titanic - 1912 Sunk on same voyage. 1514 Lives Lost. Delayed Trials & Bad Planning. Rushing into meeting Launch deadlines without fully assessing risks involved. Not enough attention to safety factors such as Number of Lifeboats. Trying to meet deadlines by risking Iceberg heavy seas Tesla Roadster Low Volume High Performance High Priced Tesla Model S & X Mid Volume High Performance Mid Range Priced Tesla Model 3 High Volume High Performance Affordably Priced What Happened to Tesla?
- 6. 6/6/2021 6 Production Hell at Tesla - 2017 Who Does New Product & Process Development Better?
- 7. 6/6/2021 7 The Lexus Story • The Lexus project started in 1983 and launched in 1989 • Produced 450+ prototypes and 1 million miles test runs • Become the #1 luxury car in USA in 1993 A pleasant ride Great high-speed Low fuel consumption Fast & smooth ride Light weight Super quite cabin Great aerodynamics Elegant styling Functional interior Warm cabin Great stability at high speeds Low friction YET YET YET YET YET YET YET YET YET YET YET YET Value Innovation Eliminate Reduce Create Raise Process & Material Cost Buyer Value
- 8. 6/6/2021 8 Toyota Since Then.. Sum of Profits for Automakers 2004 - 2018 Source: Toyota Way, Jeffry Liker Toyota Management System Marketing Concept Marketing Design Toyota Marketing & Sales System Sales, After sales and CRM TMS TMS (Toyota Management System) TDS (Toyota Development System) Total TPS (Total Toyota Production System) TMSS (Toyota Marketing & Sales System) Design Engineering Product Concept Toyota Development System Production TPS Production Concept Production Design Total Toyota Production System New Set of Tools Tested & Proven
- 9. 6/6/2021 9 Features of Lean New Product Development • Development process has two customers. External customers and internal operation divisions • Consistently creates PROFITABLE value streams • It creates two kinds of value. Manufacturing Systems & Usable Knowledge . Key Measures of Lean Product Development Project Performance Usable Knowledge 1 2
- 10. 6/6/2021 10 1. Project Performance • x% product revenues in year two from new product • 0 Market Misses • Development Leadtime and Cost reduction • Overall Profitability 2. Usable Knowledge
- 11. 6/6/2021 11 2. Usable Knowledge Knowledge about customers, suppliers, environment etc (Integration Learning) Knowledge on innovating a new product or service (Innovation Learning) Knowledge about smooth integration (Feasibility Learning) Key Challenges in Product Development
- 12. 6/6/2021 12 Key Issues Related to Product Development Not understanding the customers Rushed deadlines Bad planning Lack of risk assessment Factory Integration Issues Market misses Supplier & Raw material issues Scatter Wastes in Development Environment Distracts the flow of knowledge Barriers to communication Poor Tools Separate knowledge, responsibility, actions and feedback Waiting Scatter Hand off Useless Information Wishful Thinking Rely on assumptions, not on facts Testing to Specification Discarded Knowledge
- 13. 6/6/2021 13 Key Concepts Simultaneous Engineering Chief Engineer Oobeya Simultaneous engineering
- 14. 6/6/2021 14 Conventional Sequential Development Process Design Requirement Brainstorm & Finalization Design Prototype Trial Process Design Equipment Design Bulk Production Trial Decisions are taken with previous state of art (Wishful thinking) Test one concept at a time – slow learning Other development wastes – scatter, hands-off Specs are designed in the beginning Is there a problem ? Simultaneous Engineering Design Requirement Brainstorm & Finalization Design sub systems Trial Process Design Equipment Design Bulk Production Trial Design Requirement Brainstorm & Finalization Design sub systems Trial Process Design Equipment Design Bulk Production Trial Lead Time Reduction Conventional Simultaneous Engineering
- 15. 6/6/2021 15 Front Loading Plan Design Prototype Integration Mass Production Issues and Resource Utilization Lean Organization Conventional Organization Simultaneous Engineering - Example Experiments • Different materials • Different sizes • Different places Multiple Alternatives
- 16. 6/6/2021 16 Lean Startup Thinking Village Laundry Service - India Dhobis take long time to wash cloths Will they steal cloths? People want cloths ironed Retuned within 4 hours Will they steal cloths? Combination of Innovation Concepts This is Just a Glimpse of What is Possible.
- 17. 6/6/2021 17 Chief Engineer & Matrix Structure “Conventional project leaders are satisfying top management while Chief Engineers satisfy Customers” Chief Engineer To align the project flow and the knowledge flow from concept to customer. Body Engine Chassis Electronic Testing Sales Chief Engineer 1 - Corolla Chief Engineer 2 - Premio Vertical organization to Horizontal origination
- 18. 6/6/2021 18 Responsibilities of a Chief Engineer Profitability System Architecture Project Planning & Timing Negotiation for Resources Achieve consensus with design team Initial Market Campaign Oobeya Concept
- 19. 6/6/2021 19 Oobeya Room Oobeya is a large project management room where a cross functional team convene to carry out simultaneous activities on new product development in order to improve lead time and improve the flow of new products to the market. Oobeya Room Example Source: Toyota Engineering Corporation
- 20. 6/6/2021 20 Oobeya Room Should we continue the Lean New Product Development Virtual Masterclass? Masterclass Content 3 Hours per Day 4 Days Time Duration 9,10,11,12 June 2021 Planned Days
- 21. 6/6/2021 21 Weekly Plan Real Case Study
- 22. 6/6/2021 22 Goodyear Tire & Rubber Company - 2012 • In 2005 • New developments were not profitable • On Time Delivery = 27% • Cycle time/ Lead time = 100 days • Number of new products = 600 • In 2010 • Profitable new development • On Time Delivery = 90% • Cycle time/ Lead time = 30 • Number of new products = 1800 Company Profile : Revenue $ 22 B, 42 Factories, 22 Countries, 1800 new products annually Problems with Development • Market opportunity was expired when they are delivered to the customers • Work was taking place in an isolated work departments • Gate wise efficiency was monitored but not related to overall efficiency • Frequent adhoc prioritization of work, creating lot of waiting time • Large queues of work in progress • Frustrated engineers gravitated towards highest priority (Fire fighting) • All looked busy but nobody saw the end to end results • Engineers had their own way of working procedures • Many problems were solved multiple times, often after the product was launched • “Heros” appointed to get delyed projects back on track, yet the OTD was 27%
- 23. 6/6/2021 23 Application of Lean NPD • Implemented matrix organization aligning tire engineering and material development • “Project Managers (Name for CE)” appointed for prioritized SKUs with end to end responsibility • Developed standards for process flow • Identified the bottle neck as “Proto Typing” through process Yamazumi • Focused improvement of prototype through kaizen initiatives. • Developed plant and development capacity optimization system • Kanban system to create a pull between engineering and computer modeling Application of Lean NPD Source: Lean Process and Product Development
- 24. 6/6/2021 24 Application of Lean NPD • Introduced “Late-start mode” – Work on iteration as late as possible to accommodate changes. Simultaneous Engineering Engineering Tool Designer Engineering Tool Designing Before After Information Information Purchasing Goodyear Tire & Rubber Company - 2012 • In 2005 • New developments were not profitable • On Time Delivery = 27% • Cycle time/ Lead time = 100 days • Number of new products = 600 • In 2010 • Profitable new development • On Time Delivery = 90% • Cycle time/ Lead time = 30 • Number of new products = 1800
- 25. 6/6/2021 25 Profit & Culture Unlock Program (PCUP) 👉 it is focused on achieving an agreed financial saving (verified by your financial team) 👉 Payments to be made after achieving the agreed milestones and targets. 👉 A dedicated lean coach to train, coach and guide your teams on Lean Techniques 👉 Involve everyone in the organization to drive projects 👉 Recognizable lean culture boost within first year.