Lean Product Development

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Lean Product Development

  1. 1. Lean Product Development Dr. Nathan Soderborg Design for Six Sigma Master Black Belt North America Product Development Ford Motor Company WCBF Design for Six Sigma Conference Las Vegas, Nevada February 10, 2008© Nathan Soderborg, 2008. All rights reserved. Background
  2. 2. Presentation Outline Introduction to Lean Production Allowing the Customer to “Pull” Value from PD Pull for improving existing products Pull for creating new products & features Viewing PD as a Factory Knowledge job shop Types of waste in the factory Many principles & Learning to See Waste in PD methods could be discussed! Detecting Defects Design Review Will focus on 2-3 key FMEA ideas with examples. Lean Metrics How DFSS aligns with Lean PD 2© Nathan Soderborg, 2009. All rights reserved.
  3. 3. Lean Production Lean The elimination of waste with the goal that all steps in a process add value from the customer’s perspective Lean Thinking (Womack & Jones) Correctly specify value so you are providing what the customer actually wants Identify the value stream for each product family and remove the wasted steps that dont create value but do create muda (waste) Make the remaining value-creating steps flow continuously to drastically shorten throughput times Allow the customer to pull value from your rapid-response value streams as needed (rather than pushing products toward the customer on the basis of forecasts) Never relax until you reach perfection, which is the delivery of pure value instantaneously with zero muda 3© Nathan Soderborg, 2009. All rights reserved.
  4. 4. Pull Systems Lean Principle: “Allow the customer to pull value from rapid-response value streams as needed” “Pull” in lean production means To produce or process an item only when the customer needs and requests it Lean manufacturers design their operations to respond to the ever-changing requirements of customers Such operations avoid the traditional batch-and-queue system many manufacturers must rely on Pull systems Should be convenient and easy to use React to needs—dont anticipate them 4© Nathan Soderborg, 2009. All rights reserved.
  5. 5. Example: Pull in a Manufacturing Process A light bulb is set up on a pole at an assembly line; when lit, it is the signal (kanban) to the producing station to wheel a cart of components to the line A full cart is dropped off at the assembly line and an empty cart is wheeled back to the producing station— the empty cart is the signal that authorizes the producers to make more parts Finished components from the last operation at the producing station are placed directly on the cart— if there is no cart there is no production The process eliminates double handling Parts are placed on the cart as produced Parts are taken off the cart during the first operation at the assembly line and put directly into an assembly 5© Nathan Soderborg, 2009. All rights reserved.
  6. 6. Lean Product Development: Customer PullRecently in the news… “When ____ arrived six months ago, he found ____s quality operations bogged down with drawn-out decision making and interdepartmental finger-pointing. “If there was a problem with an air conditioning system, for example, the engineering department might suggest the plant didnt put oil in the unit, while the plant might say the unit was improperly designed. Weeks of back- and-forth e-mails would ensue, "and meanwhile, the customer is out there saying, Im hot,‚" ____ said. “____ scrapped the old system, created standard definitions of quality, and established the view that customer satisfaction starts with a potential customers perception of a brand and continues though vehicle ownership and repurchase. “He launched dedicated interdepartmental teams to address problems in minutes over conference tables, not weeks over e-mail.” —Detroit News, April 14, 2008 6© Nathan Soderborg, 2009. All rights reserved.
  7. 7. Example: Current Product Improvement Pull “Every warranty claim received by a dealer is sent to the plant where the vehicle is built and the issue is ‘mapped back’ to the work station where it might have originated.” Ford’s Drive One campaign: answers for employees to FAQs on Quality Customer Pull Project Portfolio Customer Dealer fixes Information is Plant groups Issues with brings vehicle issues and sent to plant issues and highest to dealer for records immediately for shares with frequency are service information review engineering next up projects© Nathan Soderborg, 2009. All rights reserved. More Detail 7
  8. 8. Product Creation Pull—Enhancing QFD & VOC Six Sigma is all about data, but getting data requires time and data can be incomplete Often reveals only Voice of Customer-what can be articulated What about Actions, Emotions, Culture of Customer…? Lean Product Creation should pull insight from the customer’s world to the PD team as fast as possible– avoid the time lag for field results, large surveys, etc. Insight: deep, emotional understanding of the customer —not just what they like and don’t like, but why Goes beyond the data to help explain the data Asks "What emotional need is so strong, it will cause the customer to act?" “An insight is worth a thousand market surveys” —Rechtin and Maier 8© Nathan Soderborg, 2009. All rights reserved.
  9. 9. Methods of Acquiring Insight Active Observation Immersion: live the life of the other person, go where they go Events: e.g., hold clinics with customer/product interaction Passive Observation Watch customers in context, i.e., in their daily routines Identify what irritates, satisfies, challenges, excites Surveys & Interviews Ask open-ended, thought provoking questions Listen actively Introspection Study the customer, culture, environment Imagine living the life of the customer 9© Nathan Soderborg, 2009. All rights reserved.
  10. 10. Example: Auto Industry Insights 4th door Minivans Assembly Line Intermittent Windshield Cup Holders Wipers Connectivity 10© Nathan Soderborg, 2009. All rights reserved.
  11. 11. Lean Product Development: View PD as a Factory “In an engineering process, raw material consists of information—customer needs, past product characteristics, competitive product data, engineering principles, and other inputs are transformed through the product development process into the complete engineering of a product that will be built by manufacturing.” (p.17) “[A] lean PD system is a knowledge work job shop, which a company can continuously improve by using adapted tools used in repetitive manufacturing processes to eliminate waste and synchronize cross-functional activities.” (p.20) —Morgan and Liker 11© Nathan Soderborg, 2009. All rights reserved.
  12. 12. Seven Types of Waste (Ohno) Overproduction (production ahead of demand) Transportation (moving products that is not actually required to perform the processing) Waiting (waiting for the next production step) Inventory (all components, work-in-progress and finished product not being processed) Motion (people or equipment moving or walking more than is required to perform the processing) Over Processing (due to poor tool or product design creating activity) Defects (the effort involved in inspecting for and fixing defects) —See Womack & Jones p. 352 12© Nathan Soderborg, 2009. All rights reserved.
  13. 13. Seven Types of Waste (Ohno) PD Waste Overproduction Extra studies & analyses, (production ahead of demand) unnecessary prototypes Transportation (moving products that is not actually Information sharing: ineffective required to perform the processing) handoffs, too wide a distribution Waiting Delays: for tests & results, (waiting for the next production step) approvals, inputs from interfaces Inventory (all components, work-in-progress and Redundant, disconnected data finished product not being processed) systems, unsynchronized work Motion (people, equipment moving or walking more Seeking approvals from more than required to perform the processing) than those accountable Over Processing (due to poor tool or product design creating Presentation processing, un- activity) needed analysis detail/prediction Defects Test failures and response, (the effort involved in inspecting for and warranty costs and response fixing defects) —See Womack & Jones p. 352 13© Nathan Soderborg, 2009. All rights reserved.
  14. 14. Lean Product Development: Seeing Waste Visual management is a key element of lean systems Quick communication of information about a process or facility using visual aids “Learning to See” waste in the process (Rother & Shook) In PD, visual aids are not necessarily posted on the office wall, instead they are attention-getting elements of the process Events that bring items to a team’s attention Documents that drive critical questions and provide institutional memory Metrics that highlight waste 14© Nathan Soderborg, 2009. All rights reserved.
  15. 15. Example: Seeing Defects or Failure Modes During reliability seminars at Ford, Dr. Tim Davis (Henry Ford Technical Fellow) opened with a description of PD as a “Failure Mode Factory” Many in attendance did not want to accept this description… However, because people and systems are not perfect and they operate with incomplete knowledge, failure modes are an inevitable PD outcome Failure Modes can originate at any process point: poor understanding of customer, wrong system characterization, wrong analysis or optimization, bad test assumptions, etc. So it is critical to institute ways to detect (see) them as quickly as possible—before getting to the customer, ideally before escaping to the next process step 15© Nathan Soderborg, 2009. All rights reserved.
  16. 16. Example: Seeing Failure Modes (events) Toyota’s Design Review Based on Failure Mode (DRBFM) Thoroughly discuss design plans to discover undetected problems and formulate countermeasures to solve those problems one by one “Pay close attention to intentional and incidental changes in new development items.” “Promote discussions based on FMEA and FTA results.” —Shimizu, Imagawa, Noguchi, SAE 2003- 01-2877 16© Nathan Soderborg, 2009. All rights reserved.
  17. 17. Example: Seeing Failure Modes (documents) Failure Modes and Effects Analysis (FMEA) provides a single, unified framework for seeing failure modes during the PD process Let the columns of the FMEA… When viewed as a backbone Organize work for a product/project team for the engineering effort, Point to the right tools & methods FMEA becomes a lean Set the agenda for design reviews organization tool to replace process overlays that can multiply out of control Voice of Project Deliverables Customer Item/ Potential Potential Current Recommended Actions S. Class Mechanism O. D. RPN (Counter Measures) Function Failure Mode Effect Design Ctrls. Program Specific Institutional Product History FMEA 17© Nathan Soderborg, 2009. All rights reserved.
  18. 18. Example: Seeing Failure Modes (metrics) In addition to field performance metrics (lagging indicators), put improved metrics INTO and ON the PD process INTO: Failure Mode Detection More & better design standards, based on science and experience (Good standards eliminate need for most kinds of analysis) More & better computer simulations that mimic physical tests (Good simulations eliminate physical tests and high associated costs) ON: Process Health Number of late part changes (after design freeze) Percent of parts in bill of material first time through without revision 18© Nathan Soderborg, 2009. All rights reserved.
  19. 19. Lean Product Development: DFSS Alignment Lean Connection Key Concepts of DFSS Project-based framework Even out work flow, attack priorities and bottlenecks Data-based decision making Reduce waiting time for informed culture decisions Science & statistics-based Reduce rework due to mistaken engineering or incomplete analyses Elements Define: Demonstrate Connection Allow customers to pull value from the product to Customer Characterize: Develop Transfer Speed design analysis and see failure modes faster Functions, Predictive Models Optimize: Achieve System Level Reduce occurrence and severity of failure modes Robustness Optimization Verify: Demonstrate reliability Prevent customer defects, learn how to improve tests 19© Nathan Soderborg, 2009. All rights reserved.
  20. 20. Potential DFSS Project Deliverables Increase Detection Move Detection Make Designs More Capability Capability Earlier Reliable/Robust Develop/improve a Move a detection event Implement a new, robust customer-correlated from a system to concept metric, target subsystem or component Institute product-specific Create a new detection level design improvements, event or standard Replace a hardware test e.g., optimize for Develop/improve a by a virtual simulation robustness transfer function (model) Replace a test or Institute generic robust to discover failure modes simulation event with a design guidelines analytically design standard Institute updated Add/intensify noise Key Insight: A DFSS procedures and error- content in a test or proofing to prevent project is a job in the PD simulation to better excite mistakes failure modes “knowledge work job shop.” Improve design to reduce Improve detection Estimating the value of DFSS severity of a failure mode measurement projects in monetary value can system/gage RR be difficult and waste time. The Institute technical training real deliverable is knowledge that makes PD more lean. 20© Nathan Soderborg, 2009. All rights reserved.
  21. 21. REFERENCES Tim Davis, “Science, engineering, and statistics,” Applied Stochastic Models in Business and Industry, Vol. 22, Issue 5-6, pp. 401-430, 2006. James M. Morgan and Jeffrey K. Liker, The Toyota Product Development System: Integrating People, Process and Technology, Productivity Press, 2006. Eberhard Rechtin and Mark Maier, The Art of Systems Architecting, CRC Press, 1997. Mike Rother and John Shook, Learning to See: Value Stream Mapping to Add Value and Eliminate MUDA, Lean Enterprise Institute, 1999. Hirokazu Shimizu, Toshiyuki Imagawa, Hiroshi Noguchi, Reliability Problem Prevention Method for Automotive Components—Development of GD3 Activity and DRBFM (Design Review Based on Failure Mode), JSAE 20037158, SAE 2003-01-2877. James P. Womack and Daniel T. Jones, Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Simon and Schuster, 2003. 21© Nathan Soderborg, 2009. All rights reserved.
  22. 22. Appendix© Nathan Soderborg, 2008. All rights reserved.
  23. 23. Toyota Product Development System (Morgan & Liker) Process Establish customer-defined value to separate value-added from waste Front-load the product development process to explore thoroughly alternative solutions while there is maximum design space Create a level product development process flow Utilize rigorous standardization to reduce variation, and create flexibility and predictable outcomes Skilled People Develop a chief engineer system to integrate development from start to finish Organize to balance functional expertise and cross-functional integration Develop towering competence in all engineers Fully integrate suppliers into the PD system Build in learning and continuous improvement Build a culture to support excellence and relentless improvement Tools & Technology Adapt technologies to fit your people and process Align your organization through simple visual communication Use powerful tools for standardization and organizational learning 23© Nathan Soderborg, 2009. All rights reserved.

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