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About WMEP
Wisconsin Manufacturing Extension Partnership
WMEP state and federal funding depends on the quantified impact and ROI each client reports Last year $130 million in impact was reported by the small and mid-sized manufacturers we served In the past five years, nearly $1 billion in impact and more than 4,800 new or retained jobs have been reported by WMEP clients as a result of successful project work
WMEP Provides a Wide Range of Services Under Each of These Six Attributes
Advanced Talent Management: Mid-level Leadership Development & Skills Certification Customer Focused Innovation: Existing or New Product Growth & Marketing Needs Systemic Continuous Improvement: Lean Initiatives, Quality, and Problem-solving Processes Extended Enterprise Management: Developing Suppliers & Partners for Long-term Growth Sustainable Product and Process Development: Profitable Conservation of Energy & Resources Global Engagement: International Growth & Exporting Opportunities
Production Cost
Lean Product Design Design for Manufacture Toyota 3P Process Value Engineering Design for Six Sigma
Time-to-Market
Lean Product Development Slashing Time-to-Market and Improving Resource Utilization is the Focus of this Workshop
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= = = = = = =
Profits generated per hour of design time Efficient utilization of designers / developers Faster time-to-market More projects completed per unit time Higher profits for your firm More customers satisfied more of the time More fun for designers who are freed from wasteful, boring activities.
Our enemy is wasted time Lean Product Development provides both the mindset and the tools to fight back!
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Typical Project
$$$$$$$$
Lean Project
$ = Profits = Resources
Project Duration 20% 60% Reduction in Design Cycle Times >50% Improvement in Resource Utilization 10 % 50% Increase in Gross Margins >30% Gain in Product Design Capacity Dramatic Improvement in Schedule Predictability
* Based on reported results from firms spanning several industries, 1999 - 2009
Copyright 2009 Technology Perspectives
Profit?
Non-ValueAdded Work
Error Loops Unnecessary Steps Poor Handoffs Undefined Roles Low Value Meetings Lack of Information Missed Target Costs Excessive Multitasking Lack of Prioritization Constant Interruptions
Value-Added Work
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Market Matures
Time
New Competitors Enter Market Commoditization of Product Many Equivalent Substitutes
Obsolescence or Replacement
Profits
Obsolescence or Replacement
Unit Sales
12
80
60
40
20
13
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Firm No. 1 2 3 4 5 6 7 8 9 10
Description Major Aerospace Firm Major Aerospace Firm Factory Controls and Sensors Auto Parts Manufacturer Aerospace Supplier High Technology Hardware Sporting Goods Manufacturer Division of Insurance Firm Solar Energy Systems Farm Equipment Manufacturer Industry Averages
Approx. No. of Employees 100,000 80,000 10,000 7,000 4,000 1,500 400 250 150 130
Hours of Value 1.2 1.1 1.5 1.5 1.8 1.0 2.4 1.4 2.3 3.0 1.7
Hours of Enablers 4.0 4.3 5.0 3.9 3.4 4.5 2.0 2.8 2.5 1.5 3.4
Hours of Waste 2.8 2.6 1.5 2.6 2.8 2.5 3.6 3.8 3.2 3.5 2.9 17
Common Sense is something that you already know... once someone points it out to you. - Ron Mascitelli
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Agenda
Part 1 - Introduction to Lean Product Development Part 2 How to Implement a Lean Development Process Part 3 Defining Market Requirements Part 4 - Managing Cost During the Design Phase Part 5 - Tools for Rapid Project Execution
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Core IPT
Extended IPT
Consultants Sales / Service Customer Quality Purchasing Suppliers
IPT Infrastructure
Senior Management Finance Human Resources Information Technology Facilities Administrative
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Commercialization
Marketing
Engineering
Manufacturing
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Prototyping
Redesign
Eng. Change
Eng. Change
The Phase / Gate process can be used as a transition stage from over-the-wall development, but it is not an end in itself!
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TOO MANY GATE REVIEWS TOO MANY PROCESS-MANDATED ACTIVITIES PROCESS DRAINS TIME FROM VALUE CREATION PROCESS IS DIFFICULT TO SCALE DOWN PHASES / GATES DISTORT THE CRITICAL PATH In short, phase / gate is heavy on command and control, but doesnt provide an efficient way to design and develop a new product!
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Project work never stopsunless the project is cancelled. The process has a light touch on working-level team members. Exception management is used for status reporting. Requirements changes are carefully screened for net value. Arbitrary gates, reviews, documents, approvals, etc. are minimized. The critical path of the project is enabled and prioritized. Risks are managed proactively and aggressively. Process is scaleable to the type of product under development.
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Start
Basic Project Plan Milestone Schedule Risk Mgmt. Plan Mitigation Actions
Design Review
Prod. Readiness
Floating Events
VoC Workshop Innovative ProblemSolving
Make Money!
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Highly efficient collaborative events drive value-creation, rather than vague phases. Quick-Start LPD does not distort the critical path of a project the Events will naturally align with the critical path. The focus is on the actual work of product design, rather than administrative gate reviews, arbitrary deliverables, etc. The command and control part of phase / gate is covered through visual tools and exception management.
You can either embed Quick-Start Events into your existing phase / gate processor just use Quick-Start by itself as a stand-alone development process!
Copyright 2009 Technology Perspectives
Agenda
Part 1 - Introduction to Lean Product Development Part 2 How to Implement a Lean Development Process Part 3 Defining Market Requirements Part 4 - Managing Cost During the Design Phase Part 5 - Tools for Rapid Project Execution
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Highly Differentiated
Manageable Risk
Great Product
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Focus Groups Alpha Customers Customer Surveys Iterative Prototyping Indwelling Internal Surrogates Probe-and-Learn Polling the Sales Force
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A Lean Starting Point for Any Project The Market Requirements Brief
1. Product Designation: ____________________________________________________ 2. What specific customer problem(s) does the product solve? _______________________________________________________________ 3. Who are the target customers? _______________________________________________________________ 4. Most Likely Sales Volumes: Year 1 = _________ Year 2 = __________ Year 3 = ___________ 5. Target Market Price: __________________ (dollars per unit) 6. Target Manufacturing Cost: __________________ (dollars per unit) 7. Target Market Entry Date: __________________ 8. Overt Benefits / Key Attributes: i. _____________________________________________________________ ii. _____________________________________________________________ 9. Critical Physical Characteristics: i. (Example: Weight) ii. (Example: Dimensions) 10. Critical Performance Requirements: i. ________________________________________________ ii. ________________________________________________ 11. Critical Features: i. ________________________________________________ ii. ________________________________________________ 12. Other Critical Requirements or Constraints: i. ________________________________________________ ii. ________________________________________________
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Objective To transform voice-of-the-customer (market) data Into a prioritized list of product design requirements that maximize customer value, market acceptance, and profits. Key Outputs Market Positioning Statement Top Five Customer Benefits / Key Differentiators Prioritized List of Features & Performance Levels Action Assignments to Execute the Above
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15
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40
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Key Diff. #3
Key Diff. #4
Key Diff. #5
The Top Five Key Differentiators are the five greatest opportunities for your product to succeed in the marketplace in the customers own language!
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4.3 200 HP Engine 400 HP Twin Engines Split Hull Design Carbon Fiber Hull Nitrous Oxide Injectors 3-color Gel-Coat Finish Optional Scuba Deck Automated Tow Rope Feed Custom Storage for Gear Fish-Finder Sonar 2 5 -1 3 5 0 -1 0 0 0
5.0 2 5 -3 3 5 0 -2 0 0 0
6.0 0 0 1 0 0 5 -2 0 -1 0
Appearance
5.0 0 0 2 0 0 0 5 0 3 0
-10.8 X
Priority Ranking
X 46
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The Final Step: Setting Clear Priorities for Product Features / Performance Levels
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Beginning of Project
Must Haves
Should Haves
Could Haves
50
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Comments
4/27/09
Joe P.
5/1/09
5/8/09
Med.
Complete
Cedrick M.
5/1/09
High
Need Resources!!
Joline Q.
5/5/09
Med.
Harry P.
5/10/09
Low
Dave N.
5/10/09
Low
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Agenda
Part 1 - Introduction to Lean Product Development Part 2 How to Implement a Lean Development Process Part 3 Defining Market Requirements Part 4 - Managing Cost During the Design Phase Part 5 - Tools for Rapid Project Execution
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Process Design 10 : 1
Manufacturing 1:1
High-Value Product
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80
60
40
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There Are Five Cost Knobs that Designers Can Use to Control Costs
Cost Knob Direct Labor Possible Opportunities for Design Team Simplify product assembly Automate manual operations Reduce test and inspection requirements Use lower cost materials Use high-volume materials Reduce scrap and wastage Simplify initial factory set-up Reduce the number and variety of parts used Reduce material handling and storage Reuse existing design elements Purchase commercial-off-the-shelf components Accelerate the design process Design product for existing processes / equip. Select processes with low tooling costs. Reduce product tolerances
Copyright 2009 Technology Perspectives
Direct Material
Indirect Overhead
Design Costs
Capital Equipment
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The Twenty Cost Levers Four Levers For Each Cost Knob
Simplify Processes
Reduce Scrap
Eliminate Parts
Eliminate Batches
Outsource Processes
Design Reuse
Reduce WIP
I
C
Automate Processes
II
D C D
High-Vol. Parts
III
C
Optimize Tooling
IV
D C D
Optimize Make/Buy
V
C
Reduce Handling
D
Reduce Consumables
Direct Labor
Direct Materials
Assignable Capital
Design Costs
Factory Overhead
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Critical-to-Cost:
Any design- or process-related factor that has high potential impact on the new products unit production cost.
Critical-to-Quality:
Any design- or process-related factor that may have high impact on yield, defects, rework, customer returns, assembly time, etc.
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Ease of Improvement ( E )
How easy would it be to improve an identified cost or quality opportunity?
Impact ( I )
How much impact could that improvement have on the cost / quality of the new product?
Use a subjective 1-to-5 scale to rank each factor, where higher scores imply greater impact and greater applicability.
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Agenda
Part 1 - Introduction to Lean Product Development Part 2 How to Implement a Lean Development Process Part 3 Defining Market Requirements Part 4 - Managing Cost During the Design Phase Part 5 - Tools for Rapid Project Execution
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Stand-up meetings, combined with visual project board allow for optimized team communication and efficiency. Visual board can be made available to team members at other locations by either using a webcam, or by posting a digital picture of the board on the intranet.
Stand-up Meeting
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Key Milestone
Cost Status
Schedule Status
Tech. Status
Comments
Fabricate Prototype
G G R G Y G G
G Y R R Y G G
G Y Y G G G G
Complete
Prototype Testing
Oliver Twist
4/5/09
Prototype Validated
Tiny Tim
3/14/09
Production Tooling
Charles Darney
4/24/09
Supplier Issues
Sydney Carton
4/20/09
Resources Unavailable
Lucy Mannette
5/17/09
Charles Dickens
6/14/2009
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Action Item
Due Date
Comments
Jane M.
4/27/09
High
Parts missing
Joe P.
5/1/09
5/8/09
Med
Complete
Cedrick M.
5/1/09
High
Need Resources!!
Joline Q.
5/5/09
Med
Harry P.
5/10/09
Low
Dave N.
5/10/09
Low
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Mon
Week 1 Wed
Fri
Mon
Week 2 Wed
Fri
Med. Priority
27
20
16
12
Plan
0 0 1 2 3
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Project Timeline
Fri
Cost Status
Schedule Status
Tech. Status
Comments
Fabricate Prototype
Complete
Week 2
Wed
Prototype Testing
Oliver Twist
4/5/09
Prototype Validated
Tiny Tim
3/14/09
Production Tooling
Charles Darney
4/24/09
Supplier Issues
Sydney Carton
4/20/09
Resources Unavailable
Lucy Mannette
5/17/09
Charles Dickens
6/14/2009
Open Issues
Comments
Due Date
Out
Out
Issue / Problem Owner Date
4/27/09
Parts missing
Joe P.
5/1/09
5/8/09
Complete
Cedrick M.
5/1/09
Need Resources!!
Joline Q.
5/5/09
Harry P.
5/10/09
Dave N.
5/10/09
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Project Coordination Using Team Stand-Up Meetings How to coordinate a project team
Application
Coordinate team with a 15 minute stand-up meeting Establishes a work plan for each team member All other topics are deferred to separate meetings, if needed.
Coordination
Lunch
Benefits
Establishes an urgent beat for project execution Enables immediate course correction and resource reallocation Avoids time batch effects caused by slow feedback 83
Team Schedule
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Low
Low
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Creates a shared language among team members Allows for real-time reallocation of resources Enables a focus on valuecreating activities Establishes a clear work plan for each day Provides a mechanism for cultural change Builds team identity and emotional commitment
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Monthly Sustaining activities Long-term strategic projects Weekly Major projects with low schedule pressure 3 per Week Typical projects with high schedule pressure Daily Crunch times within a schedule-critical project Twice Daily Emergencies, fire-fighting, last few days prior to launch Recommended for Most Projects!
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Lunch
Benefits
Significant increase in valuecreating time per day. Avoids waste due to turbulence. Enables team members to plan their time and meet schedule milestones. Daily Work Schedule
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Define legitimate emergencies other interruptions can and should wait until project time is over!
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Knowledge-Based Development
Learning Cycle Event(s) Design Review & Freeze Event(s) Visual Workflow Management Process 3P Event Production 3P Event
Design 3P Event
References
Anderson, D. M., 1997, Agile Product Development for Mass Customization, Irwin Professional. Barnes, T., 1996, Kaizen Strategies for Successful Leadership, Financial Times Publishing. Bicheno, J., 2004, The New Lean Toolbox , PICSIE Press. Boothroyd, G., Dewhurst, P., and W. Knight, 1994, Product Design for Manufacture and Assembly, 2nd Edition, Marcel Dekker, Inc. Bralla, J. G., 1996, Design for Excellence, McGraw-Hill, Inc. Bralla, J. G., 1999, Design for Manufacturability Handbook, McGraw-Hill, Inc. Christensen, C. M., 1997, The Innovators Dilemma, Harvard Business School Press. Christensen, C. M. and M. E. Raynor, The Innovators Solution, Harvard Business School Press. Clark, K. B. and S. C. Wheelwright, 1993, Managing New Product and Process Development, The Free Press. Cooper, R. G., 1995, When Lean Enterprises Collide, Harvard Business School Press. Cooper, R. and R. Slagmulder, 1997, Target Costing and Value Engineering, Productivity Press. Cusumano, M. A. and K. Nobeoka, 1998, Thinking Beyond Lean, The Free Press. Dimancescu, D., Hines, P., and N. Rich, 1997, The Lean Enterprise, American Management Association. Erhorn, C. and J. Stark, 1994, Competing by Design, Oliver Wright Publications, Inc. Goldratt, E. M., 1997, Critical Chain, North River Press. Henderson, B. A. and J. L. Larco, 1999, Lean Transformation, The Oaklea Press. Ichida, T., 1996, Product Design Review, Productivity Press. Imai, M., 1997, Gemba Kaizen, McGraw Hill, Inc. Kennedy, M. N., 2003, Product Development for the Lean Enterprise, The Oaklea Press.
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References (continued)
Laraia, A. C., Moody, P. E. and R. W. Hall, 1999, The Kaizen Blitz, John Wiley & Sons. Leach, L. P., 2000, Critical Chain Project Management, Artech House. Liker, J. K., 1998, Becoming Lean, Productivity Press. Liker, J. K., 2004, The Toyota Way, McGraw-Hill. Mascitelli, R., 2002, Building a Project-Driven Enterprise: How to Slash Waste and Boost Profits through Lean Project Management, Technology Perspectives. Mascitelli, R., 2004, The Lean Design Guidebook: Everything Your Product Development Team Needs to Slash Manufacturing Cost, Technology Perspectives. Mascitelli, R., 2009, The Lean Product Development Guidebook: Everything Your Design Team Needs to Increase Efficiency and Slash Time-to-Market, Technology Perspectives. McConnell, S., 1996, Rapid Development, Microsoft Press. McGrath, M. E., 2004, Next Generation Product Development, McGraw-Hill. Poppendieck, M., 2003, Lean Software Development, Addison Wesley. Reinertsen, D. G., 1997, Managing the Design Factory, The Free Press. Rother, M. and J. Shook, 1999, Learning to See, The Lean Enterprise Institute. Smith, P. G. and D. G. Reinertsen, 1998, Developing Products in Half the Time,2nd Edition Van Nostrand Reinhold. Suri, R., 1998. Quick Response Manufacturing, Productivity Press. Tufte, E. R., 1983, The Visual Display of Quantitative Information, Graphics Press. Womak, J. P. and D. T. Jones, 1996, Lean Thinking, Simon & Schuster. 97
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