Navarre, Lawrence J.

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Kettering University

Kettering UniversityDigital Commons @ Kettering UniversityBusiness Administration Presentations And Conference Materials Business Administration8-3-2016How Lean Product and Process Development CanImprove Your R&D ResultsLawrence J. NavarreKettering University, lnavarre@kettering.eduFollow this and additional works at: https://digitalcommons.kettering.edu/business_administration_conferencePart of the Business CommonsThis Conference Proceeding is brought to you for free and open access by the Business Administration at Digital Commons @ Kettering University. Ithas been accepted for inclusion in Business Administration Presentations And Conference Materials by an authorized administrator of DigitalCommons @ Kettering University. For more information, please contact digitalcommons@kettering.edu.Recommended CitationNavarre, Lawrence J., "How Lean Product and Process Development Can Improve Your R&D Results" (2016). Business AdministrationPresentations And Conference Materials. 1.https://digitalcommons.kettering.edu/business_administration_conference/1Michigan Lean Consortium 2016 Annual ConferenceHow Lean Product and Process Development Can Improve Your R&D ResultsLarry Navarre, LecturerDepartment of Business, Kettering University1Michigan Lean Consortium 2016 Annual ConferenceLean Thinking to LPPD21990Craft ProductionMass ProductionLean Production“Edisonian” InventorsDiscovery“Corporate”R&DControlledProcessLeanDevelopmentLearningMichigan Lean Consortium 2016 Annual ConferenceLPPD and Development Processes3Cooper, R.G., Winning at New Products, 2011Stage-GateSequentialNon-sequentialStructuredUnstructuredSpiral and AgileSkunkworks4 D’sDiscoverDesignDevelopDeploy Lean PDMichigan Lean Consortium 2016 Annual ConferenceLPPD Origin• Toyota Motor Corporation Studies by University of Michigan faculty  Observed that, like Lean Manufacturing, Toyota was doing something dramatically different in product development4Michigan Lean Consortium 2016 Annual ConferenceLPPD Origin• 1980’s-1990’s  Study of why Japanese car companies were successful led to only one company with a difference – Toyota Toyota’s development process performance:• 30% faster using • 50% fewer resources• Award winning products • Steady market share growth In short, better cars faster and cheaper5The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster; Ward, Liker, Cristiano, Sobek; MIT Sloan Management Review, April 15, 1995Michigan Lean Consortium 2016 Annual ConferenceLPPD Origin• Lean Development is very “new” (circa 1995) Original Documented Research• The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster, MIT Sloan Management Review, April 15, 1995; Ward, Liker, Cristiano, Sobek Product Development for the Lean Enterprise• 2003 by Michael Kennedy, NCMS, Ann Arbor, MI o Forward by Dr. Allen Ward• 2008 revised as Ready, Set, Dominate: Implementing Toyota’s…o Forward by Dr. Durward Sobek Lean Design Guidebook• 2004 by Ronald Mascitelli, Technology Perspectives, Inc.• Revised in 2011 as Mastering Lean Product Development The Toyota Product Development System• 2006 by James Morgan and Jeffrey Liker Lean Product and Process Development• 2007/2014 by Allen Ward and Durward Sobek6Michigan Lean Consortium 2016 Annual ConferenceWhat is LPPD?• Lean Product and Process Development The application of Lean principles to the business process of product and service development LPPD is quite different from Lean Manufacturing But the principles of Lean Enterprise are very relevant and applied appropriately LPPD “translates” Lean to Product Development7Michigan Lean Consortium 2016 Annual ConferenceWhat is LPPD?8Navarre, L.;   A Taxonomy of Lean Concepts Supporting Core Principles of Lean, Lean Education Body of Knowledge, Chapter 4, (pending 2016)1996LPPD applies Lean Thinking to the process of developmentMichigan Lean Consortium 2016 Annual ConferenceWhat is LPPD?• The Basic Secret Traditional PD is about following formal process• Formal steps in a sequential order with regular management approvals Lean Development is about Learning• Learning fast how to make good products• Success through the goal of knowledge-based, learning-based development9Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceWhat is “Waste” in NPD?• Eliminating Waste At the core, Lean is eliminating waste Every principle of Lean appears to be a countermeasure against waste Let’s “translate” waste in Lean Enterprise to LPPD10Michigan Lean Consortium 2016 Annual ConferenceWhat is “Waste” in NPD?• Since NPD is mainly information transfer, the source of waste in NPD is Knowledge Waste11Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceWhat is “Waste” in NPD?• Communication Barriers Engineers are physically, socially separated from production Lack methods to turn data into usable knowledge• Poor Tools Traditional product development has few Lean tools LPPD has simple tools to reuse knowledge and schedule work• Useless Information Requiring useless information to “control the process” Best engineers are doing admin, not engineering12Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceWhat is “Waste” in NPD?• Waiting Conventional project management scheduling causes the waste of waiting Leave responsibility to schedule work to the people delivering the knowledge• Testing to Specifications Nothing is learned by validating the spec The job of Testing is to break the product• Discarded Knowledge Most companies file it and forget it Engineers must turn data into usable knowledge for future projects13Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceWhat is “Value” in NPD?• The output of NPD is Usable Knowledge NPD is mainly the development of knowledge, or information But customers don’t pay for knowledge Customers pay for products and services, therefore…14Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceWhat is “Value” in NPD?• Value in NPD is transferring Usable Knowledge into Operational Value Streams An operational value stream is the part of the organization that delivers the product or service Operations is the customer of Development15Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceWhat is “Value” in NPD?“Toyota had it easy… they handed off design to the best process development in the world”Jim Womack, PhD, Professor at MITCo-author of the Machine that Changed the World and Lean ThinkingFounder of Lean Enterprise InstitutePresenting at Lean Product and Process Development Exchange, 9/23/2014Womack’s Insights: The Toyota production system is the creator of Lean Manufacturing, arguably the world’s best manufacturer Most organizations don’t have such a capable production capability, so “Creating Operational Value Streams” is an important part of development16Michigan Lean Consortium 2016 Annual ConferenceThe Fundamental Value-Creating Cycle• LAMDA Look – go see for yourself Ask – get to the root cause Model – use analysis, simulation, prototypes Discuss – with peers, mentors, and developers of interfacing sub-systems Act – test your understanding experimentally17Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Then Look again!  The difference of Lean PD is in focusing on knowledge value “because problems almost always arise because of a gap between what we think we understand and reality” – John ShookMichigan Lean Consortium 2016 Annual ConferenceThe Fundamental Value-Creating Cycle• LAMDA Competitive advantage is derived from discovering new principles specific to your products, and obtainable only from your experience The LAMDA cycle enables knowledge creation Turning data into usable knowledge as stored in Trade-off Curves, Knowledge Briefs, and Design Checklists18Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceThe Fundamental Value-Creating Cycle• LAMDA generates learning which is recorded in Knowledge Briefs and formalized in Design Standard Checklists19Ready, Set, Dominate – Implement Toyota’s Set-Based Learning for Product Development;Michael Kennedy, Kent Harmon, Ed Minnock; 2008Michigan Lean Consortium 2016 Annual ConferenceThe Fundamental Value-Creating Cycle• Integration of Two Value Streams Knowledge Value Stream• Turning data into usable knowledge as stored in Trade-off Curves, Knowledge Briefs, and Design Checklists• Reused from project to project, continuously improved over time Product Value Stream• Using the Knowledge Value Stream as applied to each specific project• Adding more knowledge to the Knowledge Value Stream20Michigan Lean Consortium 2016 Annual ConferenceThe Four Cornerstones of LPPD• Entrepreneurial System Designer A “heavyweight” project leader with strong market and product knowledge is accountable for project success• Cadence, Flow, and Pull Key principles of Lean Manufacturing applied to the management of NPD projects• Teams of Responsible Experts Functional representatives that develop deep expertise through learning and knowledge management• Set-Based Concurrent Engineering (SBCE) Many ideas are evaluated to gain knowledge of design trade-offs before commitment to the final design21Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual Conferencea Pause to Stretch Before ExerciseMichigan Lean Consortium 2016 Annual ConferenceSet-Based Concurrent Engineering• The “Second Paradox” The first paradox was the dramatic difference of Lean Production from Mass Production The second paradox was the dramatic difference in Toyota’s development process from all other automakers Although other aspects of the Toyota development process were logical, the process of SBCE appeared inefficient23The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster; Ward, Liker, Cristiano, Sobek; MIT Sloan Management Review, April 15, 1995Michigan Lean Consortium 2016 Annual ConferenceSet-Based Concurrent EngineeringThe “apparent inefficiency” of SBCE1. Delay Design Decisions2. Multiply Prototypes3. Less Structured Process24The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster; Ward, Liker, Cristiano, Sobek; MIT Sloan Management Review, April 15, 1995Normal Concurrent EngineeringSet-Based Concurrent EngineeringSeek to freeze specifications quicklyDelay design decisions and choose hard specifications late in the processReduce the prototypes needed due to concurrencyMultiply prototypes, to what appears an absurd degreeHighly structured, detailed project processLess structured process focused on meeting milestonesMichigan Lean Consortium 2016 Annual ConferenceThe Traditional Design Process• Rapidly converge to a concept, then test A narrowing process of a wide range of product concepts to a reliably producible product “Design-then-Test”25Ulrich/Eppinger, Product Design and Development, pp.13-14Michigan Lean Consortium 2016 Annual ConferenceSet-Based Concurrent Engineering• Exploring sets of solutions, then slowly converge to a concept A learning process of extensive prototyping “The manager’s job is to prevent people from making decisions too quickly”• Toyota GM of Body Engineering “Test-then-Design”26The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster; Ward, Liker, Cristiano, Sobek; MIT Sloan Management Review, April 15, 1995Michigan Lean Consortium 2016 Annual ConferenceSet-Based Concurrent Engineering27Ready, Set, Dominate – Implement Toyota’s Set-Based Learning for Product Development; Michael Kennedy, Kent Harmon, Ed Minnock; 2008Michigan Lean Consortium 2016 Annual ConferenceSet-Based Concurrent Engineering• Testing solution sets then converging by the milestone deadline for each subsystem28Adapted from: The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster; Ward, Liker, Cristiano, Sobek; MIT Sloan Management Review, April 15, 1995; Figure 3Milestone Schedule from Project Start to LaunchProduct Architecture / System DesignSub-System / Component DesignSub-System / Component DesignManufacturing / Production System DesignMarketing Concept / Project RequirementsMichigan Lean Consortium 2016 Annual ConferenceSet-Based Concurrent Engineering• Why SBCE works A simple example. Picking a meeting time.29The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster; Ward, Liker, Cristiano, Sobek; MIT Sloan Management Review, April 15, 1995Normal Meeting Approach SBCE Meeting ApproachPick a time, invite attendees Collect all available meeting times of participantsOne person can’t make that time, mutually agree to new timeIntersect the set of all meeting times to pick a time when everyone is availableAnother person can’t make new time, reiterate processAlternatively, mandate time and require attendees to change schedules or have a meeting to schedule a meetingMichigan Lean Consortium 2016 Annual ConferenceA Process for SBCE1. Define System2. Define Sets3. Concurrent Engineering4. Converge Slowly5. Define Solution30Assessing Principles of SBCE Using a Design Game, Thesis of Francesc Carbó Roma,Chalmers Institute of Technology, Gothenburg Sweden, Figure 2Michigan Lean Consortium 2016 Annual ConferenceSummary Principles of SBCE1. Evaluate Multiple Alternatives A single design concept is highly risky Invest heavily in prototyping2. Tradeoff Curves Maintain Tradeoff Curves that define relationships of prototype tests3. Solution Convergence Prototype, Test, Learn, Combine, Narrow4. Redundancy Have a backup design for subsystems, typically an existing design31Source:  Product Development for the Lean Enterprise, Michael Kennedy, 2003Michigan Lean Consortium 2016 Annual ConferenceWhat is a Trade-off Curve?• Generalizing knowledge for reuse in current and future projects32Ready, Set, Dominate – Implement Toyota’s Set-Based Learning for Product Development; Michael Kennedy, Kent Harmon, Ed Minnock; 2008Michigan Lean Consortium 2016 Annual ConferenceTrade-off Curve Example33Trade-off Curves and Feasible Regions; Göran Gustafsson, M.Sc., Ph.D.; Chalmers University of Technology, Gothenburg, SwedenIf the mechanical stress in the tank equals the fracture stress σB, we can derive the non-dimensional relationship t/D = (√3/4)·p/σB Michigan Lean Consortium 2016 Annual ConferenceWhat is a Knowledge Brief?• Knowledge Brief a.k.a. “K-Brief” A highly summarized documentation of learning from prototyping and other experimentation Used to communicate solutions sets during SBCE Typically only A3 size (11x17”) An adaptation of the “A3” Problem Solving tool34Michigan Lean Consortium 2016 Annual ConferenceKnowledge Brief Example35Navarre, L., Kettering University, BUSN 304,Intrapreneurship and Innovation Development, SBCE ExerciseElements:• Parameters• Guidelines• Calculations• Trade-off Curves• ExamplesMichigan Lean Consortium 2016 Annual ConferenceTime to ExerciseMichigan Lean Consortium 2016 Annual ConferenceExemplar Practitioners of LPPD• Since the 1990’s realization of LPPD at Toyota, the following companies have adopted the approach:37Company Industry Company IndustryToyota Auto OEM GE Appliance AppliancesDenso Auto Supplier Teledyne Bathos InstrumentsDelphi Auto Supplier Fisher & Paykel AppliancesFord Auto OEM Goodyear TiresNovo Nordisk Medical Devices Pratt & Whitney Aircraft EnginesSteelcase Furniture Harley-Davison MotorcyclesMichigan Lean Consortium 2016 Annual ConferenceChanging Traditional Processes to LeanGoodyear transformed its NPD process to LPPD38Copyright 2014, Goodyear Tire CorporationPresented by Majerus at Lean Product and Process Development Exchange, 9/23/2014Michigan Lean Consortium 2016 Annual ConferenceLeadership by the Chief EngineerFord consolidated PD leadership to the CE39Copyright 2014, Ford Motor CompanyPresented by Pericak, Mustang CE, at Lean Product and Process Development Exchange, 9/23/2014Michigan Lean Consortium 2016 Annual ConferenceUsing Lean Tools in DevelopmentNovo Nordisk uses Visual Management for Organizational Alignment and Senior Management SupportMoss, Fleming; Novo Nordisk; 5 Years with Visual Management, LPPDE 2015 Conference• Escalate Issues• Senior Management Involvement and Support • Senior Management also using VMMichigan Lean Consortium 2016 Annual ConferenceTesting, Learning, Knowledge ReuseDenso radiator performance vs. competitors and goals Note the universal metric “weight / heat rejection” and log scale41Ward, Sobeck; Lean Product and Process Development, Lean Enterprise Institute, 2014Michigan Lean Consortium 2016 Annual ConferenceTesting, Learning, Knowledge ReuseHarley-Davidson uses SBCE42Copyright 2015, Harley-Davidson MotorcyclesPresented by Wilcox at Lean Product and Process Development Exchange, 9/15/2015Michigan Lean Consortium 2016 Annual ConferenceA Learning Organization• Pratt & Whitney Aircraft Engines43Copyright 2014, United Technologies CorporationPresented by Gracis and Cloft at Lean Product and Process Development Exchange, 9/23/2014Michigan Lean Consortium 2016 Annual ConferenceA Lean PD TransformationGE Appliance reorganized to Centers of Excellence44Copyright 2014, General Electric CorporationPresented by Nolan at Lean Product and Process Development Exchange, 9/23/2014Michigan Lean Consortium 2016 Annual ConferenceComments on LPD by Jim Womack“You have hardly got started!”Jim Womack, PhD, Professor at MITCo-author of the Machine that Changed the World and Lean ThinkingFounder of Lean Enterprise InstitutePresenting at Lean Product and Process Development Exchange, 9/23/2014Womack’s Insights: LPD is relatively “new”, few practitioners are doing it Clearly, the leaders in development are doing it LPD is not nearly as visible as Lean Manufacturing, and appears much more difficult Reflection: have the courage to experiment with LPD45Michigan Lean Consortium 2016 Annual ConferenceThank You !Contact:Larry Navarre, lnavarre@kettering.edu46

How Lean Product and Process Development Can Improve Your R&D Results

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How Lean Product and Process Development Can Improve Your R&D Results

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