The document discusses challenges with new product development and how lean principles can help address them. It provides examples of product development failures from Samsung, Coca-Cola, and Titanic due to issues like poor planning, lack of risk assessment, and not considering safety. Tesla is shown as successfully applying lean with different models at various volumes and prices. Key lean concepts discussed include simultaneous engineering, chief engineers, and visual management boards (Oobeya). Goodyear Tire is highlighted as improving on-time delivery from 27% to 90% and cycle time from 100 to 30 days by applying lean through matrix organization and other methods.

2. Lean New Product & Process
Development

3. 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

4. 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?

5. Production Hell at Tesla - 2017

6. Who Does New Product & Process
Development Better?

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

8. Value Innovation
Eliminate
Reduce
Create
Raise
Process &
Material Cost
Buyer Value

9. Toyota Since Then..
Sum of Profits for Automakers 2004 - 2018
Source: Toyota Way, Jeffry Liker

10. 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

11. 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
.

12. Key Measures of Lean Product Development
Project Performance
Usable Knowledge
1
2

13. 1. Project Performance
• x% product revenues in year two from
new product
• 0 Market Misses
• Development Leadtime and Cost
reduction
• Overall Profitability

14. 2. Usable Knowledge

15. 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)

16. Key Challenges in Product
Development

17. 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

18. 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

19. Key Concepts
Simultaneous
Engineering
Chief
Engineer
Oobeya

20. Simultaneous engineering

21. 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 ?

22. 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

23. Front Loading
Plan Design Prototype Integration Mass Production
Issues and
Resource
Utilization
Lean Organization Conventional Organization

24. Simultaneous Engineering - Example
Experiments
• Different materials
• Different sizes
• Different places
Multiple
Alternatives

25. 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?

26. Combination of Innovation Concepts
This is Just a Glimpse
of What is Possible.

27. Chief Engineer & Matrix
Structure
“Conventional project leaders are satisfying top management while Chief Engineers satisfy
Customers”

28. 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

29. Responsibilities of a Chief Engineer
Profitability
System
Architecture
Project Planning &
Timing
Negotiation for
Resources
Achieve consensus
with design team
Initial Market
Campaign

30. Oobeya Concept

31. 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.

32. Oobeya Room Example
Source: Toyota Engineering Corporation

33. Oobeya Room

34. 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

35. Weekly Plan

36. Real Case Study

37. 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

38. 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%

39. 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

40. Application of Lean NPD
Source: Lean Process and Product Development

41. 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

42. 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

43. 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.

44. 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

45. 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

46. Airline
Agriculture
Food & Beverage
IT & Software
Apparel Textile
Textile
Education
Public Programs
Apparel
Our Versatility
Tobacco

47. 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.