Transcript Lean Summit India

Lean Product and Process
Development
Lean Summit India
Jose Ferro
Bangalore, November 2014
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Most organizations start their lean
transformation efforts in
manufacturing
YES, LOTS TO DO!!!
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Normally we have results like:
• Substantial increases of productivity (+30%)
and quality (++1.000%)
• Capacity gains (+50%)
• Lead time reduction (+50%) increasing
market response capability (smaller batches)
• Reduces needs for space (+50%)
• Less inventory (+50%)
• Etc.....
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But we have a problem!
Is this enough ?
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“Improving the efficiency in the
trolley car production will not
create the automobile”
Joseph Schumpeter (1883 - 1950 )
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To fully capture the benefits of the lean
transformation, we need to rethink the
way we develop new products
(and the processes that enable them)
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New products bring improvements in:
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Sales
Cost
Profitability
Growth
Market share and reach
Competiveness and business sustainabiliy
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A little tale: EMBRAER
• In the 90s it launched a new product using their traditional
product development process
• The product was a huge success
– An enormous investment
– Smaller, cost effective, low in consumption for the need of point to
point travel, apropriate for smaller cities
– Right product at the right time!!!
– Huge demand- 5 x more than anticipated
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But there was a problem...
• They couldn´t produce it
– Many delays
– Costumers unhappy
– Share holders very nervous
Company at bay ....
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Then, they encountered lean
manufacturing and begin changing
the company
BY IMPROVING MANUFACTURING!!
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“Lean allowed our company
to survive”
Frederico Curado
CEO
Lean Summit Brasil 2010
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Not yet to be capable to fully
compete with Boeing and Airbus
But capable to mantain and solidify its position
as nº 3 in the very competitive global
aerospace business
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And now Embraer is moving from
Traditional
Product
Development
Lean
Product
Development
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Why Embraer wants to change its PD
system?
• They realized that the current system seems to
be always:
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–
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Above the predicted budget
Always late
Lots of stress
Loosely conected with manufacturing and suppliers
Damages the economic performance
LIKE MANY OTHER COMPANIES
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A great Product Development System
• Will produce great products
– not by luck
– not depending on geniuses
• And will drive dramatic cost reduction
– most of the costs (50-80%) of the operating costs
are defined in the design phase
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Lean Product and Process
Development (LPPD)
• Creates great product sistematically and
reduces costs at the same time
• While developing people knowledge and
capabilities
• Integrating horizontally the company
• Aligning the whole company (value adding
and support functions)around costumer
value and needs
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Main elements: Lean Product and
Process Development (LPPD)
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Elimating PD wastes
Hand off (disconnection)
Useless information
Waiting
Communication barriers
Scatter
Wishful thinking
Knowledge
Wrong tools
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Understand costumer needs and
expectations
– Gemba focus (or market research?)
• Source of information and inspiration
– Set based/multiple alternatives
– Strong internal debate
– Alignment inside the organization
– One person with a systemic view (Chief Engineer)
– Conection with Hoshin Kanri to define goals and
targets
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Create flow, pull and cadence
• Strong Chief engineer manages and coordinates
– Based on milestones and pulling events
• Set based engineering
• Synchonization: decisions at the right time
• Do we have a takt time?
• Obeya room and visual management
• Work load leveling to avoid mura
and muri
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Leadership and structure: strong Chief
engineer
– Deep systems design knowledge
– Respect
– Broad reponsability with strategic orientation but
small authority over functions
– Overviewing and aligning strong functions (matrix
organization)
suppliers > body > engines > transmissions > interior >
– Undertstand and translate costumer needs to
organizational capabilities and deliveries
– Responsible for ultimate results
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Develop learning and knowledge
• Learning at the gemba (“go see for yourself”)
– including the costumers
• Scientific method
• Coaching
• Rapid learning cycles
– deep knowledge
– standandardization
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Early on suppliers involvement
• Suppliers strong commitment
– Pressuposes a new relationship (purchasing, PD,
logistics etc)
– Long term and trust relationship
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Some results
Source: Jim Morgan
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d delivered more than a half billion dollars in top line growth while
simultaneously implementing 30M in cost savings
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went from 27% programs on time to 90% on time, they reduced cycle time
by 70% and increased total throughput and they dramatically reduced waste and
executed better launches
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ddelivered more than a 30% increase in smart phone chip performance on an
accelerated schedule
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an award winning software company that is revolutionizing the software
industry. They have grown profitably since inception. Created many award winning
products and joy for employees and customers alike. They have become a veritable lean
innovation machine
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s saving an icon with great product
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THANK YOU!!
[email protected]
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