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  • I’d like to summarize this portion of the presentation with a concept I like to refer to as the process improvement pitfall. The goal here is to further illustrate the power in viewing process improvement from the perspective of the value stream. If you look at a typical value stream, data indicates that nearly 97 percent of the total time is associated with non-value-added activities – and only 3 percent is associated with adding value for the customer. And this is where the pitfall lies. Historically speaking, process improvement teams have tended to evaluate processes by focusing on only those actions where something is “being done” to the product – essentially the 3 percent portion of the value stream - and virtually ignore the non-value-added activities like transportation, queue time, and so on that represent the 97 percent portion of the value stream. Consequently, most teams tend to focus on a very small portion of the value stream and miss the larger opportunity to make significant improvement.
  • Transcript

    • 1. Lean & Six Sigma Design Lean Enterprise Series
    • 2. Outline
      • Lean Design
        • Key Principles of Lean Design
        • Characteristics of the Toyota Product Development System
        • The Impact of Variation
        • Waste in Product Development
        • Optimal Lean Design Team
        • Cycle Time Issues
        • Product Cost Issues
        • Quality Issues
      • Design for Manufacturing
      • Design for Six Sigma
        • Goals
        • Tools
        • Process
      • Design and ISO 9001:2000 (Section by section discussion)
    • 3. Lean Design & Six Sigma Phase 2 Concept Phase 1 Pre-concept Phase 3 Product Definition Phase 4 Detailed Design Phase 5 Integration & Test Validation Phase 6 Production & Operation CUSTOMER C T Q ’ S B U S I N E S S C T Q ’ S T E C H N I C A L C T Q ’ S T E C H N I C A L R E Q U I R E M E N T S L I S T Manufacturing Process Control Design for Six Sigma Product Development Process Lean Design Supplier Rationalization Quality Improvement Cycle Time and Cost Improvement
    • 4. Key Lean Design Concepts
      • Design to Cost
        • The team has a cost target to meet with the design
        • Cost targets often assigned to subassemblies and processes
        • Constant monitoring of product cost by Purchasing and Manufacturing
        • Tradeoff decisions are made on design vs. cost on an ongoing basis
        • Design to Cost also used to select and manage suppliers
        • Suppliers are expected to meet cost goals, but are also expected to make a profit
    • 5. Toyota System
      • Focus on business performance
      • Value customers’ opinion
      • Standardized development milestones
      • Prioritize and Reuse
      • Functional teams
      • Set-based concurrent engineering
      • Supplier involvement
      • Chief engineer system
      Product Development
    • 6. Waste in Product Development Waste Category Example Implication Defective Products Excessive Inventories Excessive Motion Excessive Processing Transportation Waiting Over Production
      • excessive engineering changes
      • requirements change impact design
      • moving info from one person/group to another
      • projects  desired future business
      • work-in-process exceeds capacity
      • partially done work
      • working w/ incomplete requirements
      • not using standard parts and subs
      • extra software features
      • drawing or code errors
      • work does not match customer needs
      • unnecessary items specified
      • too many approvals required
      • too much “paperwork”
      • excessive approvals and controls
      • process monuments
      • task switching on multiple projects
      • workload  capacity
      • excessive multi-tasking
      • delays due to reviews/approvals/testing deployment/staffing/workload
      • project sits for next ‘event’
      • not cost effective
      • inefficiencies built-in
      • queue time, work-arounds
      • batch processing, no flow
      • ineffective use of skills
      • no decision rules
      • drives rework and inflexibility
      • barriers to adding value
      • capacity consumed by rework
      • long lead-time, rework
      • investment not realized
      • queue time drives lead-time
      • no re-use of knowledge
      • drives supply chain variation
      • excessive changes, scrap
      • rework, scrap, warranty
    • 7. Cycle Time Issues Excessive Product Development Cycle Time 11 Months on Average Why ? Rework Loops From Detailed Design Starting Before Product Reqs. Are Defined Detailed Design Takes Too Long Requirements Capture & Lockdown Takes Too Long Why ? Why ? No Process for Requirements Capture Lack Reqs. Lockdown Discipline Lack Similar to Product Capabilities Capable Resources not Available Redesign Rather than Reuse Capable Products Supplier Selection Time Delay (6 weeks) Long Lead Time Parts Procurement Delay (12weeks) Why ? Why ?
    • 8. Design for Six Sigma
      • Resource Efficient – LEAN
      • Capable of very high yields regardless of volume
      • Not affected by process variation; Robust
      • Lead to a “flawless launch”
        • Meets Performance Targets (Quality)
        • Meets Delivery Targets (On Time)
        • Meets Financial Targets (Target Cost)