Superfactory ® Lean Enterprise Series Lean & Six Sigma Design

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)

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)

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

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

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

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

Focus on business performance

Value customers’ opinion

Standardized development milestones

Prioritize and Reuse

Functional teams

Set-based concurrent engineering

Supplier involvement

Chief engineer system

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

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

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 ?

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) Design for Six Sigma Goals

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)