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Lean Product Development
                            Workshop

                                    Prepared and presented by –

                                        Ron Mascitelli, PMP
                                             President
                                      Technology Perspectives

                                                                  Phone: (818) 366-7488
Copyright 2009 –                                                  E-mail: techper@att.net
Technology Perspectives
                                                                                      1
                                                                  WEB: www.Design-for-Lean.com
All Rights Reserved                                               Version 1.09L Revised – 6.25.09




                                          Agenda




                          “Visioning” a Lean Product Development Process



                          Practical Learning –

                                  The Market Requirements Event

                                  Visual Workflow Management




                                                                                      2
                                                                               Copyright 2009 -
The Three Dimensions of Excellence in
            Product Design and Development


                                                                 Lean Product Design –
                                                                 • Design for Manufacture
                                                                 • Toyota “3P” Process




                              Production Cost
Lean Innovation –
                                                                 • Value Engineering
• Rapid Innovation
• Scenario                                                       • Design for Six Sigma
    Brainstorming
• Set-Based Design
                         e
                        ric

                                                Time-to-Market
                        P
                     et
                   rk
                 Ma




                                                                  Lean Product Development –
                                                                   Slashing Time-to-Market and
                                                                 Improving Resource Utilization
                                                                  is the Focus of this Workshop

                                                                                           3
                                                                                   Copyright 2008 -




           What is Lean Product Development?


       It’s all about “productivity” -


                              =       Profits generated per hour of design time
                              =       Efficient utilization of designers / developers
                              =       Faster time-to-market
                              =       More projects completed per unit time
                              =       Higher profits for your firm
                              =       More customers satisfied more of the time
                              =       More fun for designers who are freed from
                                               wasteful, boring activities.


                    Our enemy is wasted time…
            Lean Product Development provides both the
                 mindset and the tools to fight back!
                                                                                           4
                                                                                   Copyright 2009 -
Why Tolerate Waste?


                                                      Error Loops
               Profit?                                Unnecessary Steps
                                                      Poor Handoffs
                                                      Undefined Roles
                                                      Low Value Meetings
                Non-Value-
                  Added                               Lack of Information
Revenue




                  Work                                Missed Target Costs
                                                      Excessive Multitasking
                                                      Lack of Prioritization
                                                      Constant Interruptions

          Value-Added
             Work                     Wasted Time May Represent Your
                                     Biggest Product Development Cost!


                                                                        Copyright 2008 -




                            “Top Ten” Sources of
                         Product Development Waste

                   Chaotic work environment – constant interruptions

                   Lack of available resources – resource bottlenecks

                   Lack of clear prioritization of projects / tasks

                   Poor communication across functional barriers

                   Poorly defined product requirements

                   Disruptive changes to product requirements

                   Lack of early consideration of manufacturability

                   Over-designing, analysis paralysis, gold-plating

                   Too many @!%&* meetings

                   E-mail overload – the “e-mail avalanche”
                                                                                6
                                                                        Copyright 2009 -
Identifying Non-Value-Added Waste


      “A design / development activity is value-added if it transforms
       a new product design (or the essential deliverables needed
             to commercialize it) such that either the product’s
       profit margin and / or market share are positively impacted.”



    Based on this (strict) definition of value, we can divide the activities
of any development project into three categories:

   Value               = Value-added (essential) tasks

   Type 1 (Enabler)    = Non-value-added (NVA) but currently necessary

   Type 2 (Waste)      = NVA and not necessary

                                                                           7
                                                                    Copyright 2008 -




           Waste Elimination Through Lean Methods

       Current State –

           Value         Type 1 Enablers           Type 2 Waste




        Lean “Future State” –




    Our goal is to eliminate Type 2 wherever possible, and minimize
        the waste in Type 1’s through the use of Lean Methods.
                                                                           8
                                                                   Copyright 2009 -
The “Over-the-Wall” Development Process

          “Over-the-Wall” is a leftover of commodity mass
  production and is the enemy of speed and innovation...


    Revised Specifications           Engineering Change Orders

       Failed Prototype             Unacceptable Unit Cost

             New Specs                     “Finished” Design


                                                                             Launch




Marketing                    Engineering                       Manufacturing

                                                                              9
                                                                       Copyright 2009 -




      The “Phase / Gate” Development Process

         The “Phase / Gate” product development process was
developed for NASA and DOD “megaprojects” to reduce technical
risk and coordinate vast numbers of sub-contractors...

        Gate 1            Gate 2           Gate 3          Gate 4

 Concept/
 Planning        Design        Prototyping     Execution          Verification




              Redesign              Eng. Change       Eng. Change



The Phase / Gate process can be used as a transition stage from
   “over-the-wall” development, but it is not an end in itself!

                                                                            10
                                                                       Copyright 2009 -
Potential Sources of Waste in a “Typical”
             Phase / Gate Process


           TOO MANY GATE REVIEWS


           TOO MANY PROCESS-MANDATED ACTIVITIES


           PROCESS DRAINS TIME FROM VALUE CREATION


           PROCESS IS DIFFICULT TO SCALE DOWN


           PHASES / GATES DISTORT THE CRITICAL PATH


 In short, phase / gate is heavy on command and control,
     but doesn’t define an efficient way to design and
                  develop a new product!
                                                          Copyright 2008 -




   Attributes of a Lean Development Process


    Focus of process is on transformation of information, not
           on artificial structure and heavy-handed governance.

    An event-driven approach simplifies collaboration and
           enables design optimization.

    Emphasis on proactively managing risks to schedule, cost,
          performance, and quality.

    Can be scaled to any size project, from a one or two person
            “team” to a major development effort.

    Simple, often visual tools are used to capture learning, track
            progress, set priorities, and solve problems.

         A process based on the philosophy that
information and learning must “flow without interruption”.
                                                               12
                                                          Copyright 2009 -
Overview of a Lean
                       Product Development Process
                                                                                      Optional
                                                                                      Decision
                   Market Rqmts.                     Planning / Risk                   Points
                    Market Position                 Basic Project Plan
     Start           Segmentation          D        Milestone Schedule      D
                   Prioritized Rqmts.                Risk Mgmt. Plan
                  Prioritized Features               Mitigation Actions

                              Lean Workflow Management


 3P/Cost Reduc.                    Design Review                    Prod. Readiness
  Production Plan                    Prototype Data                    Factory Layout
  Purchasing Plan         D         Design Validation       D           Supply Chain
 Value Engineering                   Cost Validation                  Test / Inspection
Innov. Brainstorming                 Design Freeze                      Launch Plan


Milestone                      “Floating” Events
“Events”                                                             Make Money!
                                               Innovative
                             VoC
                                                Problem-
                           Workshop                                                         13
                                                 Solving                              Copyright 2009 -




                A Practical, Common-Sense Approach
                          to Slashing Waste


            “Common Sense is genius dressed in its working clothes.”
                                            - Ralph Waldo Emerson

            “Common Sense is something that you already know...
                  once someone points it out to you.”
                                 - Ron Mascitelli




                                                  =
                                                                                            14
                                                                                     Copyright 2009 -
Agenda




       “Visioning” a Lean Product Development Process



       Practical Learning –

               The Market Requirements Event

               Visual Workflow Management




                                                                  15
                                                             Copyright 2009 -




                 What Constitutes a
          Great New Product Opportunity?



               Highly                  Manageable
           Differentiated                 Risk



  Aligned                                          Leverages
 with Core                    Great
                                                  Manufacturing
Competencies                 Product               Capability



             Supports                    High Net
          Firm’s Strategic             Present Value
             Direction                     (NPV)


                                                                  16
                                                             Copyright 2009 -
Product Requirements Must be Driven by
                             How Customers Perceive Value

                                                       Categories of Product Value                     Relative
                    Product Examples                                                                  Market Price
                                         Performance      Esteem       Scarcity      Retained Value
Paper Clip
Gold Tie Clasp
Tap Water
Imported Bottled Water
Decorative Wall Poster
Original Oil Painting
Tickets to Local Movie Theater
Tickets to See Bruce Springsteen
Magnetic Compass
Portable GPS Locator
Generic Office Software
Fully Customized Office Software
Digital Alarm Clock
Swiss Grandfather Clock
                                                                                                Copyright 2008 -




                      Overshoot or Undershoot of Customer Needs
                                    Creates Waste



                                                              Region of Optimized
                                                                 Profit Margin
    Profit Margin




                                   Missed Value                Performance /
                                   Opportunities             Feature Overshoot

                              Cost of Performance or Added Features
                                                                                                       18
                                                                                                 Copyright 2009 -
A Lean Starting Point for Any Project –
               The Market Requirements Brief

1. Product Designation: ____________________________________________________
2. What specific customer problem(s) does the product solve?
              _______________________________________________________________
3. Who are the target customers?
              _______________________________________________________________
4. “Most Likely” Sales Volumes:
              Year 1 = _________ Year 2 = __________ Year 3 = ___________
5. Target Market Price:               __________________ (dollars per unit)
6. Target Manufacturing Cost:         __________________ (dollars per unit)
7. Target Market Entry Date:          __________________
8. Overt Benefits / Key Attributes:
              i. _____________________________________________________________     A one-page
              ii. _____________________________________________________________      concise
9. Critical Physical Characteristics:                                              summary!
              i. (Example: Weight)
              ii. (Example: Dimensions)
10. Critical Performance Requirements:
              i. ________________________________________________
              ii. ________________________________________________

11. Critical Features:
              i. ________________________________________________
              ii. ________________________________________________
12. Other Critical Requirements or Constraints:
              i. ________________________________________________
              ii. ________________________________________________
                                                                                         19
                                                                                   Copyright 2009 -




                The Market Requirements Event



           Objective –
                       To transform voice-of-the-customer (market) data
           Into a prioritized list of product design requirements that
           maximize customer value, market acceptance, and profits.


           Key Outputs –
                       Market Positioning Statement
                       Top Five Customer Benefits / Key Differentiators
                       Prioritized List of Features & Performance Levels
                       Action Assignments to Execute the Above



                                                                                         20
                                                                                  Copyright 2009 -
Preparation for
                                           The Market Requirements Event


                                      Initial Product Concepts
                                      Customer Survey / Interview Data
                                      Info. on Competitors’ Products                             = Essential Inputs
                                      Customer Satisfaction Data                                 = Valuable Inputs
                                      Warrantee / Return Data
                                      Target Cost / Price
                                      Manufacturing Constraints
                                      Target Customer Group / Segment
                                      Projected Capital Requirements
                                      Assessment of Technical Risks
                                      Assessment of Market Risks
                                      Strategic Goals for New Product

                                                                                                                        21
                                                                                                                   Copyright 2009 -




                                              Recommended Participants for
                                              The Market Requirements Event

                                                                                  LPD "Events"
                                                    Market      Planning / Risk     3P / Cost    Design Review &      Production
                        Functional Role          Requirements     Mitigation        Reduction         Freeze          Readiness
                   Team Leader
                   Core Team Members
                   Functional Supervisors
                   Functional Managers
                   Marketing Manager
                   Production Supervisor
                   Production Manager
                   Line Operators
                   Procurement
                   Supply-Chain
                   Quality Engineering
                   Cost Accounting
                   Mfg. / Process Engineers
                   Strategic Suppliers
                   Sales Representatives
                   Test Engineering
                   Packaging Designer
                   Lean Champions                                                                                       22
Copyright 2009 -
Typical Agenda for the
                       Market Requirements Event

8:00 – 9:00                      Overview of Available Customer Data
9:00 – 12:00                     Part 1 – Define a Market Position
                                          - Market Positioning Statement
                                          - Identify the “Top Five” Benefits
1:00 – 3:30                      Part 2 – Prioritize Requirements & Features
                                          - Round 1 Lean VoC (High Level)
                                          - Compare Outputs to Mkt. Position
                                          - Round 2 Lean VoC (Refine)
3:30 – 4:00                      Define Prioritized List of Features / Rqmts.
4:00 – 4:30                      Update Master Action List for Concept Design
4:30 – 5:00                      Management Outbriefing

     One day is the minimum that should be allowed for
  the Market Requirements Event – two or more days may
         be needed for large or complex projects!                           23
                                                                       Copyright 2009 -




       What Does “Market Positioning” Mean?

             A product’s “position” in the market is its unique
   combination of performance / features, price, and quality.
   Ideally, that position is large and well-defined enough to
   provide a robust business case.
                                                       Competitors’ Products
          Quality




                                            Your
                                           Product
                                                          Price
              Pe
                    rfo
                       rm
                         an
                           ce
                           /F
                                ea
                                  tu




                                                                            24
                                    re




                                                                       Copyright 2009 -
                                       s
The Market Positioning Statement

         A market positioning statement (aka, “value proposition”)
is a one or two sentence phrase that captures the who, what, and
why of your new product.

        WHO is the intended target market for the product?

        WHAT are the benefits that the new product provides?

        WHY would a customer buy your product over others?


Example:        “The new Model XYZ Speedboat represents a
             breakthrough in performance, appearance, and
             sport technology, that targets youthful, affluent,
             waterskiing and scuba-diving enthusiasts. With
             nearly twice the acceleration, a lightweight all-
             carbon-fiber hull, and a three-color gel-coat finish
             the Model XYZ is as fast as it is eye-catching.”        25
                                                                Copyright 2009 -




   What are the “Top Five” Key Differentiators?

         Our goal for this Event is to translate customer needs
into prioritized design requirements for your new product.

                           Key Diff. #1


                           Key Diff. #2


  Customer                                             Prioritized
   Needs                   Key Diff. #3                  Design
                                                      Requirements

                           Key Diff. #4


                           Key Diff. #5



          The “Top Five” Key Differentiators are the five
        greatest opportunities for your product to succeed           26
      in the marketplace – in the customers’ own language!      Copyright 2009 -
A Tool to Identify the
                                        “Top Five” Key Differentiators

                                                               Degree to which market
                                           Relevance          needs are totally satisfied  Differentiation
                        Possible key        to buying          (N = Percent Satisfied)      Opportunity
                       differentiators       decision                                               R
                    (customer benefits)    ( R=1 to 3 ) Your Current Competitor Competitor D =
                                                          Product     Product A Product B        Max. N




                                            3 = High          Best estimates based on     Top five scores
                       Brainstorm on        2 = Med.              market data and                 27
                                                                                             are your
Copyright 2009 -           these!           1 = Low             team’s knowledge            “Top Five”




                            Worked Example for a Speedboat Product


                                                               Degree to Which Market
                                           Relevance          Needs are Totally Satisfied  Differentiation
                        Possible Key       to Buying            (N = Percent Satisfied)     Opportunity
                       Differentiators       Decision                                               R
                     (Customer Benefits)   ( R=1 to 3 ) Your Current Competitor Competitor D =
                                                          Product     Product A Product B        Max. N

                   High Top Speed              3           50%         60%         70%            4.3 *
                   Rapid Acceleration          2           20%         30%         40%            5.0 *
                   High Towing Capacity        2           80%         90%         90%            2.2
                   Gas Mileage                 1           40%         50%         30%            2.0
                   Appearance                  3           50%         40%         50%            6.0 *
                   Safety                      2           90%         90%         80%            2.2
                   Supports Scuba Diving       1           10%         20%         20%            5.0 *
                   Supports Waterskiing        3           30%         20%         40%            7.5 *


                            * These are the “Top Five” Key Differentiators for this product. 28
                                                                                             Copyright 2009 -
Harnessing the “Voice-of-the-Customer (VoC)”


                                                 First we enter the Top Five Differentiators in the appropriate
                                                          locations (see next slide for a template).

                                                 These benefits are “weighted” by their potential to
                                                        differentiate the new product (the “D* score”).

                                                 Next we list possible features, functions, or performance
                                                         levels that the design team believes address
                                                         the Top Five Differentiators.

                                                 Finally, we score each feature / function on a -5 to +5 scale,
                                                          based on its impact on each of Key Differentiators.

                                                 The cumulative weighted score across each row represents
                                                        that feature / function’s priority in the new product
                                                        design.
                                                                                                                                               29
                                                                                                                              Copyright 2009 -




                                                                The Lean VoC Tool

                                                                          “Top Five” Key Differentiators
                                                                                                                            Priority Ranking
                                                                                                           Weighted Score
                                                                                                            Cumulative




                                               Weighting Factors
                                         for “Top Five” Differentiators
                                                   ( D score)
that Could Deliver Key Differentiators
Possible Features / Performance Levels




                                                                                                                                               30
                                                                                                                              Copyright 2009 -
Worked Example Using the Lean VoC Tool

                                                                      “Top Five” Key Differentiators




                                                                                        Rapid Acceleration




                                                                                                                                                              Priority Ranking
                                                                                                                                             Weighted Score
                                                                       High Top Speed




                                                                                                                           Supports Scuba



                                                                                                                                               Cumulative
                                                For a




                                                                                                                                            Waterskiing
                                                                                                              Appearance
                                              Speedboat




                                                                                                                                            Supports
                                               Product
that Could Deliver Key Differentiators
Possible Features / Performance Levels




                                                                       4.3              5.0                  6.0           5.0                7.5
                                         200 HP Engine                   2              2                    0             0                  3      41.1        X
                                         400 HP Twin Engines             5              5                    0             0                  5      69.0            1
                                         Split Hull Design               -1             -3                   1             2                  -1     -10.8 X
                                         Carbon Fiber Hull               3              3                    0             0                  2      42.9        3
                                         Nitrous Oxide Injectors         5              5                    0             0                  1      54.0        2
                                         3-color Gel-Coat Finish         0              0                    5             0                  0      30.0        5
                                         Optional Scuba Deck             -1             -2                   -2            5                  2      13.7        7
                                         Automated Tow Rope Feed         0              0                    0             0                  5      37.5        4
                                         Custom Storage for Gear         0              0                    -1            3                  2      24.0        6
                                         Fish-Finder Sonar               0              0                    0             0                  0      0.0         X 31
                                                                                                                                                              Copyright 2009 -




                                              Do You Need to Match the Competition?


                                           In addition to differentiating your product from competitors,
                                                    you may need to match one or more attributes of
                                                    their products to ensure parity in non-differentiating
                                                    aspects of your new product.

                                           The goal is to avoid a “negative” that might dissatisfy a customer
                                                   and cause you to lose market share or pricing power.

                                           Examples include:
                                                      Achieving the same approvals, certifications, etc.
                                                              as your top competitors.
                                                      Meeting industry standards for interfaces, outputs, etc.
                                                      Updating technologies to avoid giving an edge to
                                                             your competition.
                                                      Matching your top competitor’s basic features or
                                                             performance levels.                    Copyright                                                                    2009 -
The Final Step: Setting Clear Priorities
  for Product Features / Performance Levels




                                                                 33
                                                           Copyright 2009 -




               Applications of
      Must / Should / Could Prioritization


Prioritization of
                                        Prioritization of Key
Optional Product
                                        Performance Targets
    Features




                       Must / Should /
                     Could Prioritization




 Prioritization of                       Establishment of
Product Versions,                     M/S/C levels for Testing,
    Sizes, etc.                         Quality, Defects, etc.
                                                                 34
                                                          Copyright 2009 -
Cost / Schedule Problems Can Be Solved by
                   Trimming “Could-Haves”

                             If Project Schedule Slips
     Beginning of Project           or Cost Grow


                                                     Highest priority
Must
                                                     requirements or
Haves
                                                 features are front-end
                                                     loaded to allow
                                                     scope flexibility
Should                                            at the end of project.
Haves


Could
Haves                                                 Scope reduced
                                                   to meet target cost
                                                 or time-to-market goals
                                                                    35
                                                             Copyright 2009 -




         Identifying Must / Should / Could Priorities


                     Highest scoring features / performance levels
                             from Lean VoC, plus…
                     Key requirements that ensure parity with
                             competitors’ products.

                     Middle scoring features / performance levels
                             from Lean VoC, plus…
                     Key requirements that increase the product’s
                             strategic fit or commonality with other
                             products from your firm.

                     Lower scoring features / performance levels
                            from Lean VoC, plus…
                     Relatively high risk “innovations” that might
                              delight the customer, but are unproven
                              or optional.                       36
                                                             Copyright 2009 -
Prioritized Requirements for Our Worked Example

                                         Engineering Requirements Brief
                                                        Value or                            Priority
           Key Requirement
                                                       Description                     Must Should Could
     Power Plant                         400 HP Twin Gasoline Engines                      X
     Carburetion                         Nitrous Oxide Fuel Injection                      X
     Hull Material                       3-Layer Carbon Fiber Composite                    X
     Navigation *                        Next Generation Global GPS                        X
     Communications *                    XYZ S-to-S Radio with Beacon                      X
     Certifications *                    UL Certification on all Electronics               X
     Length *                            20 ft. < Length < 24 ft.                          X
     Towing System                       Automated Feed, Constant Tension                           X
     Hull Finish                         3-color Catalyzed Gel Coat                                 X
     Drive Train *                       Common with Model SB15                                     X
     Spar Structure *                    Common with Model SB32                                     X
     Trailer *                           Standard Model T24                                         X
     Storage                             Customized for Scuba / Skiing                                             X
     Optional Equip.           Optional / Removable Scuba Deck                                                   X
       * Additional requirements driven by need for parity with competition or                                 37
                                                                                                        Copyright 2009 -
                 to achieve internal commonality and cost reduction.




                           Critical Output:
           The “Master Action List” Maintains Team Focus

                 The “Master Action List” is created, maintained and
          updated throughout the project to track long-term actions and
          manage “unplanned work”.
                                         Responsible    Planned       Actual      Priority
  Event Actions / Risk Mitigation
                                            Team       Completion   Completion     (High,             Comments
             Actions                                      Date         Date
                                           Member                                Med., Low)


Assemble Prototype Kits in Advance         Jane M.      4/27/09                     High       Some parts are still missing


Get Feedback on Draft Test Plan             Joe P.       5/1/09       5/8/09        Med.                Complete


Run Alternative Circuit Simulations       Cedrick M.     5/1/09                     High           Need Resources!!


Make Reservations with Key Suppliers       Joline Q.     5/5/09                     Med.


Give Customer Early Perf. Feedback         Harry P.     5/10/09                     Low


Verify Availability of Lab Technicians     Dave N.      5/10/09                     Low



                                                                                                               38
                                                                                                        Copyright 2009 -
Agenda




                         “Visioning” a Lean Product Development Process



                         Practical Learning –

                                 The Market Requirements Event

                                 Visual Workflow Management




                                                                                39
                                                                           Copyright 2009 -




                                An Integrated System for
                                 Workflow Management



                   Stand-up meetings, combined
                    with visual project board
                     allow for optimized team
                     communication and
                     efficiency.

                   Visual board can be                  Stand-up Meeting
                     made available to team
                     members at other
                     locations by either using
                     a webcam, or by posting
                     a digital picture of the
                     board on the intranet.


                                                       Visual Project Board     40
Copyright 2009 -
                                                         (Obeya “Light”)
Element #1 –
                               The Management Status Tool


                                             Planned     Actual
                         Responsible                                 Cost    Schedule   Tech.
   Key Milestone                            Completion Completion                                    Comments
                        Team Member                                 Status    Status    Status
                                               Date       Date

 Fabricate Prototype    David Copperfield     6/7/09     6/7/09       G         G         G            Complete


  Prototype Testing       Oliver Twist        4/5/09                  G         Y         Y         First Test Failed


 Prototype Validated        Tiny Tim          3/14/09                 R         R         Y      May Require Rework


 Production Tooling      Charles Darney       4/24/09                 G         R         G         Supplier Issues


 Test Plan Complete      Sydney Carton        4/20/09                 Y         Y         G      Resources Unavailable


Final Drawing Release    Lucy Mannette        5/17/09                 G         G         G

Fabricate Qual Units    Charles Dickens      6/14/2009                G         G         G

                                                                                                        41
                                                                                                 Copyright 2009 -




                        An A3-Based Management Status
                                  Template




                                                                                                  Copyright 2009 -
Substitute for Management Status Tool:
                  The Multi-Project “Cadence” Tool

  Project      Kickoff                                 Milestone Number                                   Completion Date
Designation     Date          1        2           3        4      5          6         7          8      Plan     Est. Actual

                                                          10/1/08
Project 1       1/2/09                                                R                                  1/2/10        6/5/10
                                                         11/20/08
                                     9/24/08
Project 2       3/5/09                             Y                                                     3/5/11        3/5/11
                                                               Plan
                                     10/5/08
                                                                            7/1/08
Project 3       2/5/08                                                                  R                10/5/09       5/13/10
                           11/1/08                                         9/20/08
                                                           Actual
Project 4       5/2/09                  G                                                                8/19/10       8/19/10
                          11/1/08
                                                                                     10/1/08
Other?          10/3/07                                                                            Y     5/13/09       5/13/09
                                                                                     11/20/08


    Key         1.   Engineering Spec Complete                        5.   Critical Design Review / Approval
Milestone       2.   Conceptual Design Review / Approval              6.   Long Lead Items Ordered
Definitions:    3.   Prototype Performance Validated                  7.   Qualification Testing Complete / Approv.
                4.   Drawing Pkg. Rev. 0 Released                     8.   Release to Production
                                                                                                          Copyright 2008 -




                                       Element #2 –
                                  Team Master Action List


                                     Responsible                          Completion
         Action Item                                      Due Date                                       Comments
                                     Team Member                            Date         Priority


Create prototype parts kit              Jane M.            4/27/09                          High        Parts missing



Draft test plan out for review          Joe P.              5/1/09          5/8/09          Med           Complete



Complete circuit simulation           Cedrick M.            5/1/09                          High       Need Resources!!



Order injection-mold tooling           Joline Q.            5/5/09                          Med



Meet with key supplier                  Harry P.           5/10/09                          Low



Prepare for customer meeting            Dave N.            5/10/09                          Low

                                                                                                                  44
                                                                                                          Copyright 2009 -
Center Section of Visual Board:
                                            The “Wall Gantt”


                     Horizontal axis represents days
                       of the week or weeks of the
                       month

                     Vertical axis represents team
                       members available for project
                       work (including extended team)

                     Actions are placed at junction
                       between responsible team
                       member and due date

                     Colored “pull cards” can be used
                       to identify required actions,
                       with color used to indicate
                       priority or type of activity
                                                                                          45
                                                                                   Copyright 2009 -




                                     A “Wall Gantt” Template for a
                                            Single Project

                       2-week                Week 1                       Week 2
                   Team     Window
                      Member          Mon      Wed          Fri     Mon    Wed             Fri

                       Tom

                       Dick                                                  Out


                       Harry                     Out


                       Jane                                         Out      Out


                       Sally

                       Mary

                                            High Priority           Low Priority
                                                                    Team member                46
Copyright 2003 -
                                            Med. Priority     Out   unavailable
A “Wall Gantt” Template for a
                                                            Mix of Medium / Small Projects

                                          2-week                       Week 1                               Week 2
                                      Team     Window
                                         Member                Mon       Wed             Fri          Mon    Wed             Fri

                                               Tom

                                               Dick

                                               Harry

                                               Jane

                                               Sally

                                               Mary

                                                           Project 1                     Project 3               Small Projects
                                                                                                                                 47
Copyright 2003 -
                                                           Project 2                     Project 4




                                                                      Element #3 –
                                                                   The Project Timeline

                                                            “Major Milestones” include all five Events,
                                                       plus any customer / company mandated milestones.
                                      24

                                                                                     Actual Time to Completion
                                      20

                                                                               Scheduled Time to Completion
               Cum Duration (weeks)




                                      16


                                      12                               Schedule
                                                                       Variance

                                      8
                                                                                             Actual
                                                                                  Plan
                                      4


                                      0
                                           0           1          2        3             4            5     6         7
                                                                                                                            48
                                                                           Value Milestone Number                    Copyright 2009 -
Element #4 –
     Parking Lot for Issues / Problems


The final quadrant in your project board should provide
         space for unplanned issues or problems.

This section should be accessible 24/7 to team members
        so they can capture issues as they occur.

Issues that are identified will be dispositioned at the next
        team stand-up meeting.

         Issue / Problem                Owner           Date




                                                               49
                                                        Copyright 2009 -




Example of a Single-Project Visual Board
         (aka, “Obeya Light”)




                                                               50
                                                         Copyright 2009 -
Example of a Multi-Project Visual Board
                                                    (aka, “Obeya Light”)




                                                                      Project Cadence Board                                                                Multi-Project Wall Gantt
                                                                                                                                                                                                51
                                                                                                                                                                                       Copyright 2009 -




                                                          The “Visual Project Board” is a Living
                                                               Workflow Management Tool


        Management Status                                                                                                          Two-Week Action Plan                       Project Timeline
                                             Planned     Actual
                         Responsible                                   Cost    Schedule   Tech.
   Key Milestone                            Completion Completion                                      Comments
                        Team Member                                   Status    Status    Status
                                               Date       Date

 Fabricate Prototype    David Copperfield      6/7/09     6/7/09                                         Complete                         Week 1               Week 2
  Prototype Testing       Oliver Twist         4/5/09                                                 First Test Failed
                                                                                                                                    Mon    Wed     Fri   Mon     Wed    Fri
 Prototype Validated        Tiny Tim           3/14/09                                             May Require Rework




                                                                                                                           Tom
 Production Tooling      Charles Darney        4/24/09                                                Supplier Issues


 Test Plan Complete      Sydney Carton         4/20/09                                             Resources Unavailable


Final Drawing Release    Lucy Mannette         5/17/09


Fabricate Qual Units    Charles Dickens       6/14/2009

                                                                                                                           Dick                                 Out


                                                                                                                           Harry           Out
       Master Action List                                                                                                                                                       Open Issues
    Near-Term Action Item
                                          Responsible
                                                          Due Date
                                                                        Completion M / S / C
                                                                                                      Comments
                                                                                                                           Jane                          Out    Out
                                         Team Member                      Date     Priority
                                                                                                                                                                              Issue / Problem    Owner    Date
Create prototype parts kit                   Jane M.        4/27/09                       M          Parts missing


Draft test plan out for review               Joe P.          5/1/09        5/8/09         S            Complete
                                                                                                                           Sally
Complete circuit simulation                 Cedrick M.       5/1/09                       M        Need Resources!!


Order injection-mold tooling                Joline Q.        5/5/09                       M


Meet with key supplier                       Harry P.       5/10/09                       C                                Mary
Prepare for customer meeting                 Dave N.        5/10/09                       S




                                                                                                                                                                                                52
                                                                                                                                                                                       Copyright 2009 -
Project Coordination Using
                                                       Team Stand-Up Meetings

                                     How to coordinate a project team –
                                     Application –                                                           Coordination

                                               Coordinate team with a 15 minute
                                                        “stand-up” meeting
                                               Establishes a work plan for each
                                                        team member
                                               All other topics are deferred to                                Lunch
                                                        separate meetings, if needed.

                                     Benefits –
                                               Establishes an urgent “beat” for
                                                       project execution
                                               Enables immediate course correction                            Team
                                                       and resource reallocation                             Schedule
                                               Avoids “time batch” effects caused
                                                       by slow feedback                                                    53
                                                                                                                    Copyright 2009 -




                                                 Advantages of Team Coordination
                                                      by Stand-up Meetings

                                            Weekly Coordination                               More Frequent Coordination
                        100                                                      100
                   Relative




                                                                           Relative
                                                                            Effort
                    Effort




                             0                                                       0
                                       5       4     3     2      1                            1        1     1      1      1
                                           Work Days Before Meeting                                Work Days Before Meeting
                       High                                                     High
                                                                        Magnitude of Errors
               Magnitude of Errors




                                                                            and Waste
                   and Waste




                                                                                                                           54
Copyright 2009 -        Low                 Time Between Meetings                Low                Time Between Meetings
Powerful Benefits of
             Stand-Up Coordination Meetings




 Creates a shared language
   among team members
 Allows for real-time reallocation
    of resources
 Enables a focus on value-
   creating activities
 Establishes a clear work plan
   for each day
 Provides a mechanism for
   cultural change
 Builds team identity and
   emotional commitment
                                                                     55
                                                            Copyright 2009 -




         How to Conduct a Stand-up Meeting


1. Should be held either at starting time, or just before
     lunch hour.

2. Should last for no more than 1 minute times the number
     of attendees (15 minutes MAXIMUM duration at first…
     the team can always agree to a longer duration later).

3. Entire team should attend – off-site people can call in on
     a speaker phone – overseas people can be connected
     through a designated “liaison.”

4. The meeting leader (anyone) should ask three simple
     questions:
        • What progress have you made since the last meeting?
        • How will you work toward your next key milestone?
        • What do you need from others to meet this goal?

                                                                     56
                                                                Copyright 2009 -
Overcoming Obstacles to Stand-up Meetings


                 At first, use a kitchen timer to ensure that
                 your meetings won’t run longer than 15 minutes.



 A speaker phone can be used to include
 team members that are geographically dispersed.



                 Keep attendance limited to those team members
                 who actually create deliverables and perform actions.



 Include “extended team” members only when their
 activity level on the project is high.

                                                                           57
                                                                      Copyright 2009 -




              Frequency of Stand-up Meetings
                Depends on Project Urgency



Monthly
              Sustaining activities – Long-term strategic projects
Weekly
              Major projects with low schedule pressure
3 per Week                                                    Recommended for
                                                               Most Projects!
              Typical projects with high schedule pressure
Daily
              “Crunch times” within a schedule-critical project
Twice Daily
              Emergencies, fire-fighting, last few days prior to launch



                                                                           58
                                                                      Copyright 2009 -
Time-Slicing Techniques Can Clear
               Time for Focused Project Work

Application –
       Formal meetings and low-priority
         interruptions are deferred to              “Project Time”
         late morning and PM.                        for Focused
                                                     Project Work
       Phone is set to voice mail, and no
         e-mail activity.
       Several hours in the AM are allocated
         for focused project work requiring            Lunch
         high level of concentration.
Benefits –
       Significant increase in value-
          creating time per day.
       Avoids waste due to turbulence.                Daily Work
                                                      Schedule
       Enables team members to plan
         their time and meet schedule
         milestones.                                        Copyright 2008 -




         Some “Project Time” Implementation
                    Suggestions


    Establish a standard block of time each day that is set aside for
       focused project work, say 8:00 – 10:00 AM.

    Create a “study area” at your facility that can be reserved by
       workers who require short periods of high concentration.

    Consider a structured program that allows team members to
       work at home during periods in which they are performing
       schedule-critical work.

    Issue a “project-time guideline” to all employees (see next slide)

    Use a “red flag” or other creative method for communicating
       when team members are doing high-concentration work.

    Use a “door log” to allow visitors to leave notes or ask
       questions without interrupting employee’s concentration.
                                                            Copyright 2008 -
An Example of a
                          “Project Time” Guideline

Objective
To provide project team members with a dedicated block of time that will
  allow them to focus on project specific deliverables without interruption.

When
Monday – Friday from 8:00 -10:00 am (for example)

Guidelines
• Project time will be blocked on Microsoft Outlook calendars.
• No team level meetings are to be scheduled during this time.
• Participants will not be required to attend staff or functional level meetings during this time.
• Time is not intended to catch up on emails.
• Minimal phone interruptions – set phone to voice mail.
• No drop-in interruptions, unless it is an emergency. (see below)
• Closed door or Do Not Disturb flag will indicate a person is busy and should not be interrupted.
• Extended team members will be included at their functional manager’s discretion.

Emergencies
• Critical documents requiring signature
• Questions relating to time-critical production-support issues
• Issues that, if delayed, will cause a delay to a project milestone or the project schedule

                                                                                       Copyright 2008 -




                                 References

Anderson, D. M., 1997, Agile Product Development for Mass Customization, Irwin Professional.
Barnes, T., 1996, Kaizen Strategies for Successful Leadership, Financial Times Publishing.
Bicheno, J., 2004, The New Lean Toolbox , PICSIE Press.
Boothroyd, G., Dewhurst, P., and W. Knight, 1994, Product Design for Manufacture and Assembly,
      2nd Edition, Marcel Dekker, Inc.
Bralla, J. G., 1996, Design for Excellence, McGraw-Hill, Inc.
Bralla, J. G., 1999, Design for Manufacturability Handbook, McGraw-Hill, Inc.
Christensen, C. M., 1997, The Innovator’s Dilemma, Harvard Business School Press.
Christensen, C. M. and M. E. Raynor, The Innovator’s Solution, Harvard Business School Press.
Clark, K. B. and S. C. Wheelwright, 1993, Managing New Product and Process Development,
      The Free Press.
Cooper, R. G., 1995, When Lean Enterprises Collide, Harvard Business School Press.
Cooper, R. and R. Slagmulder, 1997, Target Costing and Value Engineering, Productivity Press.
Cusumano, M. A. and K. Nobeoka, 1998, Thinking Beyond Lean, The Free Press.
Dimancescu, D., Hines, P., and N. Rich, 1997, The Lean Enterprise, American Management
      Association.
Erhorn, C. and J. Stark, 1994, Competing by Design, Oliver Wright Publications, Inc.
Goldratt, E. M., 1997, Critical Chain, North River Press.
Henderson, B. A. and J. L. Larco, 1999, Lean Transformation, The Oaklea Press.
Ichida, T., 1996, Product Design Review, Productivity Press.
Imai, M., 1997, Gemba Kaizen, McGraw Hill, Inc.                                               62
                                                                                       Copyright 2009 -
Kennedy, M. N., 2003, Product Development for the Lean Enterprise, The Oaklea Press.
References (continued)

  Laraia, A. C., Moody, P. E. and R. W. Hall, 1999, The Kaizen Blitz, John Wiley & Sons.
  Leach, L. P., 2000, Critical Chain Project Management, Artech House.
  Liker, J. K., 1998, Becoming Lean, Productivity Press.
  Liker, J. K., 2004, The Toyota Way, McGraw-Hill.
  Mascitelli, R., 2002, Building a Project-Driven Enterprise: How to Slash Waste and Boost Profits
               through Lean Project Management, .
  McConnell, S., 1996, Rapid Development, Microsoft Press.
  McGrath, M. E., 2004, Next Generation Product Development, McGraw-Hill.
  Poppendieck, M., 2003, Lean Software Development, Addison Wesley.
  Project Management Institute, 1996, The Project Management Body of Knowledge (PMBOK) Guide,
               The Project Management Institute.
  Reinertsen, D. G., 1997, Managing the Design Factory, The Free Press.
  Rother, M. and J. Shook, 1999, Learning to See, The Lean Enterprise Institute.
  Smith, P. G. and D. G. Reinertsen, 1998, Developing Products in Half the Time,2nd Edition
               Van Nostrand Reinhold.
  Suri, R., 1998. Quick Response Manufacturing, Productivity Press.
  Tufte, E. R., 1983, The Visual Display of Quantitative Information, Graphics Press.
  Womak, J. P. and D. T. Jones, 1996, Lean Thinking, Simon & Schuster.
                                                                                             63
                                                                                      Copyright 2009 -




                 Biography of Ron Mascitelli, PMP

Ron Mascitelli, PMP (Project Management Professional, Masters
Degree Solid State Physics, University of California, Los Angeles)
is the Founder and President of Technology Perspectives . Ron is
a recognized leader in the development of advanced product devel-
opment methods. He presents his workshops and seminars
internationally, and has created company-specific lean product
development improvement programs for a number of leading firms,
 including Boeing, Intel, Boston Scientific, Adidas, Lockheed-Martin,
Parker Hannifin, Anderson Windows, New Balance Athletic Shoes,
Goodrich Aerospace, Hughes Electronics, and Rockwell Automation.

     Ron served as both Senior Scientist and Director of R&D for Hughes Electronics and the
Santa Barbara Research Center. His industry experience includes management of advanced
projects for the Department of Defense, the Defense Advanced Research Projects Agency
(DARPA), Lawrence Livermore Laboratory, NASA, and the Department of Energy.

     Since founding in 1994, Ron Mascitelli has worked with over eighty companies to
improve their product development performance and product-line profitability. In addition, he
has published more than twenty papers and technical articles in major journals and trade
publications, and is a contributing author for IEEE’s Technology Management Handbook. He is
the author of four critically acclaimed books, including the recently published The Lean
Product Development Guidebook. Ron currently lives with his wife and their numerous pets in
Northridge, CA.
                                                                                      64

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Lean Product Development by Ron Mascitelli

  • 1. Lean Product Development Workshop Prepared and presented by – Ron Mascitelli, PMP President Technology Perspectives Phone: (818) 366-7488 Copyright 2009 – E-mail: techper@att.net Technology Perspectives 1 WEB: www.Design-for-Lean.com All Rights Reserved Version 1.09L Revised – 6.25.09 Agenda “Visioning” a Lean Product Development Process Practical Learning – The Market Requirements Event Visual Workflow Management 2 Copyright 2009 -
  • 2. The Three Dimensions of Excellence in Product Design and Development Lean Product Design – • Design for Manufacture • Toyota “3P” Process Production Cost Lean Innovation – • Value Engineering • Rapid Innovation • Scenario • Design for Six Sigma Brainstorming • Set-Based Design e ric Time-to-Market P et rk Ma Lean Product Development – Slashing Time-to-Market and Improving Resource Utilization is the Focus of this Workshop 3 Copyright 2008 - What is Lean Product Development? It’s all about “productivity” - = Profits generated per hour of design time = Efficient utilization of designers / developers = Faster time-to-market = More projects completed per unit time = Higher profits for your firm = More customers satisfied more of the time = More fun for designers who are freed from wasteful, boring activities. Our enemy is wasted time… Lean Product Development provides both the mindset and the tools to fight back! 4 Copyright 2009 -
  • 3. Why Tolerate Waste? Error Loops Profit? Unnecessary Steps Poor Handoffs Undefined Roles Low Value Meetings Non-Value- Added Lack of Information Revenue Work Missed Target Costs Excessive Multitasking Lack of Prioritization Constant Interruptions Value-Added Work Wasted Time May Represent Your Biggest Product Development Cost! Copyright 2008 - “Top Ten” Sources of Product Development Waste Chaotic work environment – constant interruptions Lack of available resources – resource bottlenecks Lack of clear prioritization of projects / tasks Poor communication across functional barriers Poorly defined product requirements Disruptive changes to product requirements Lack of early consideration of manufacturability Over-designing, analysis paralysis, gold-plating Too many @!%&* meetings E-mail overload – the “e-mail avalanche” 6 Copyright 2009 -
  • 4. Identifying Non-Value-Added Waste “A design / development activity is value-added if it transforms a new product design (or the essential deliverables needed to commercialize it) such that either the product’s profit margin and / or market share are positively impacted.” Based on this (strict) definition of value, we can divide the activities of any development project into three categories: Value = Value-added (essential) tasks Type 1 (Enabler) = Non-value-added (NVA) but currently necessary Type 2 (Waste) = NVA and not necessary 7 Copyright 2008 - Waste Elimination Through Lean Methods Current State – Value Type 1 Enablers Type 2 Waste Lean “Future State” – Our goal is to eliminate Type 2 wherever possible, and minimize the waste in Type 1’s through the use of Lean Methods. 8 Copyright 2009 -
  • 5. The “Over-the-Wall” Development Process “Over-the-Wall” is a leftover of commodity mass production and is the enemy of speed and innovation... Revised Specifications Engineering Change Orders Failed Prototype Unacceptable Unit Cost New Specs “Finished” Design Launch Marketing Engineering Manufacturing 9 Copyright 2009 - The “Phase / Gate” Development Process The “Phase / Gate” product development process was developed for NASA and DOD “megaprojects” to reduce technical risk and coordinate vast numbers of sub-contractors... Gate 1 Gate 2 Gate 3 Gate 4 Concept/ Planning Design Prototyping Execution Verification Redesign Eng. Change Eng. Change The Phase / Gate process can be used as a transition stage from “over-the-wall” development, but it is not an end in itself! 10 Copyright 2009 -
  • 6. Potential Sources of Waste in a “Typical” Phase / Gate Process TOO MANY GATE REVIEWS TOO MANY PROCESS-MANDATED ACTIVITIES PROCESS DRAINS TIME FROM VALUE CREATION PROCESS IS DIFFICULT TO SCALE DOWN PHASES / GATES DISTORT THE CRITICAL PATH In short, phase / gate is heavy on command and control, but doesn’t define an efficient way to design and develop a new product! Copyright 2008 - Attributes of a Lean Development Process Focus of process is on transformation of information, not on artificial structure and heavy-handed governance. An event-driven approach simplifies collaboration and enables design optimization. Emphasis on proactively managing risks to schedule, cost, performance, and quality. Can be scaled to any size project, from a one or two person “team” to a major development effort. Simple, often visual tools are used to capture learning, track progress, set priorities, and solve problems. A process based on the philosophy that information and learning must “flow without interruption”. 12 Copyright 2009 -
  • 7. Overview of a Lean Product Development Process Optional Decision Market Rqmts. Planning / Risk Points Market Position Basic Project Plan Start Segmentation D Milestone Schedule D Prioritized Rqmts. Risk Mgmt. Plan Prioritized Features Mitigation Actions Lean Workflow Management 3P/Cost Reduc. Design Review Prod. Readiness Production Plan Prototype Data Factory Layout Purchasing Plan D Design Validation D Supply Chain Value Engineering Cost Validation Test / Inspection Innov. Brainstorming Design Freeze Launch Plan Milestone “Floating” Events “Events” Make Money! Innovative VoC Problem- Workshop 13 Solving Copyright 2009 - A Practical, Common-Sense Approach to Slashing Waste “Common Sense is genius dressed in its working clothes.” - Ralph Waldo Emerson “Common Sense is something that you already know... once someone points it out to you.” - Ron Mascitelli = 14 Copyright 2009 -
  • 8. Agenda “Visioning” a Lean Product Development Process Practical Learning – The Market Requirements Event Visual Workflow Management 15 Copyright 2009 - What Constitutes a Great New Product Opportunity? Highly Manageable Differentiated Risk Aligned Leverages with Core Great Manufacturing Competencies Product Capability Supports High Net Firm’s Strategic Present Value Direction (NPV) 16 Copyright 2009 -
  • 9. Product Requirements Must be Driven by How Customers Perceive Value Categories of Product Value Relative Product Examples Market Price Performance Esteem Scarcity Retained Value Paper Clip Gold Tie Clasp Tap Water Imported Bottled Water Decorative Wall Poster Original Oil Painting Tickets to Local Movie Theater Tickets to See Bruce Springsteen Magnetic Compass Portable GPS Locator Generic Office Software Fully Customized Office Software Digital Alarm Clock Swiss Grandfather Clock Copyright 2008 - Overshoot or Undershoot of Customer Needs Creates Waste Region of Optimized Profit Margin Profit Margin Missed Value Performance / Opportunities Feature Overshoot Cost of Performance or Added Features 18 Copyright 2009 -
  • 10. A Lean Starting Point for Any Project – The Market Requirements Brief 1. Product Designation: ____________________________________________________ 2. What specific customer problem(s) does the product solve? _______________________________________________________________ 3. Who are the target customers? _______________________________________________________________ 4. “Most Likely” Sales Volumes: Year 1 = _________ Year 2 = __________ Year 3 = ___________ 5. Target Market Price: __________________ (dollars per unit) 6. Target Manufacturing Cost: __________________ (dollars per unit) 7. Target Market Entry Date: __________________ 8. Overt Benefits / Key Attributes: i. _____________________________________________________________ A one-page ii. _____________________________________________________________ concise 9. Critical Physical Characteristics: summary! i. (Example: Weight) ii. (Example: Dimensions) 10. Critical Performance Requirements: i. ________________________________________________ ii. ________________________________________________ 11. Critical Features: i. ________________________________________________ ii. ________________________________________________ 12. Other Critical Requirements or Constraints: i. ________________________________________________ ii. ________________________________________________ 19 Copyright 2009 - The Market Requirements Event Objective – To transform voice-of-the-customer (market) data Into a prioritized list of product design requirements that maximize customer value, market acceptance, and profits. Key Outputs – Market Positioning Statement Top Five Customer Benefits / Key Differentiators Prioritized List of Features & Performance Levels Action Assignments to Execute the Above 20 Copyright 2009 -
  • 11. Preparation for The Market Requirements Event Initial Product Concepts Customer Survey / Interview Data Info. on Competitors’ Products = Essential Inputs Customer Satisfaction Data = Valuable Inputs Warrantee / Return Data Target Cost / Price Manufacturing Constraints Target Customer Group / Segment Projected Capital Requirements Assessment of Technical Risks Assessment of Market Risks Strategic Goals for New Product 21 Copyright 2009 - Recommended Participants for The Market Requirements Event LPD "Events" Market Planning / Risk 3P / Cost Design Review & Production Functional Role Requirements Mitigation Reduction Freeze Readiness Team Leader Core Team Members Functional Supervisors Functional Managers Marketing Manager Production Supervisor Production Manager Line Operators Procurement Supply-Chain Quality Engineering Cost Accounting Mfg. / Process Engineers Strategic Suppliers Sales Representatives Test Engineering Packaging Designer Lean Champions 22 Copyright 2009 -
  • 12. Typical Agenda for the Market Requirements Event 8:00 – 9:00 Overview of Available Customer Data 9:00 – 12:00 Part 1 – Define a Market Position - Market Positioning Statement - Identify the “Top Five” Benefits 1:00 – 3:30 Part 2 – Prioritize Requirements & Features - Round 1 Lean VoC (High Level) - Compare Outputs to Mkt. Position - Round 2 Lean VoC (Refine) 3:30 – 4:00 Define Prioritized List of Features / Rqmts. 4:00 – 4:30 Update Master Action List for Concept Design 4:30 – 5:00 Management Outbriefing One day is the minimum that should be allowed for the Market Requirements Event – two or more days may be needed for large or complex projects! 23 Copyright 2009 - What Does “Market Positioning” Mean? A product’s “position” in the market is its unique combination of performance / features, price, and quality. Ideally, that position is large and well-defined enough to provide a robust business case. Competitors’ Products Quality Your Product Price Pe rfo rm an ce /F ea tu 24 re Copyright 2009 - s
  • 13. The Market Positioning Statement A market positioning statement (aka, “value proposition”) is a one or two sentence phrase that captures the who, what, and why of your new product. WHO is the intended target market for the product? WHAT are the benefits that the new product provides? WHY would a customer buy your product over others? Example: “The new Model XYZ Speedboat represents a breakthrough in performance, appearance, and sport technology, that targets youthful, affluent, waterskiing and scuba-diving enthusiasts. With nearly twice the acceleration, a lightweight all- carbon-fiber hull, and a three-color gel-coat finish the Model XYZ is as fast as it is eye-catching.” 25 Copyright 2009 - What are the “Top Five” Key Differentiators? Our goal for this Event is to translate customer needs into prioritized design requirements for your new product. Key Diff. #1 Key Diff. #2 Customer Prioritized Needs Key Diff. #3 Design Requirements Key Diff. #4 Key Diff. #5 The “Top Five” Key Differentiators are the five greatest opportunities for your product to succeed 26 in the marketplace – in the customers’ own language! Copyright 2009 -
  • 14. A Tool to Identify the “Top Five” Key Differentiators Degree to which market Relevance needs are totally satisfied Differentiation Possible key to buying (N = Percent Satisfied) Opportunity differentiators decision R (customer benefits) ( R=1 to 3 ) Your Current Competitor Competitor D = Product Product A Product B Max. N 3 = High Best estimates based on Top five scores Brainstorm on 2 = Med. market data and 27 are your Copyright 2009 - these! 1 = Low team’s knowledge “Top Five” Worked Example for a Speedboat Product Degree to Which Market Relevance Needs are Totally Satisfied Differentiation Possible Key to Buying (N = Percent Satisfied) Opportunity Differentiators Decision R (Customer Benefits) ( R=1 to 3 ) Your Current Competitor Competitor D = Product Product A Product B Max. N High Top Speed 3 50% 60% 70% 4.3 * Rapid Acceleration 2 20% 30% 40% 5.0 * High Towing Capacity 2 80% 90% 90% 2.2 Gas Mileage 1 40% 50% 30% 2.0 Appearance 3 50% 40% 50% 6.0 * Safety 2 90% 90% 80% 2.2 Supports Scuba Diving 1 10% 20% 20% 5.0 * Supports Waterskiing 3 30% 20% 40% 7.5 * * These are the “Top Five” Key Differentiators for this product. 28 Copyright 2009 -
  • 15. Harnessing the “Voice-of-the-Customer (VoC)” First we enter the Top Five Differentiators in the appropriate locations (see next slide for a template). These benefits are “weighted” by their potential to differentiate the new product (the “D* score”). Next we list possible features, functions, or performance levels that the design team believes address the Top Five Differentiators. Finally, we score each feature / function on a -5 to +5 scale, based on its impact on each of Key Differentiators. The cumulative weighted score across each row represents that feature / function’s priority in the new product design. 29 Copyright 2009 - The Lean VoC Tool “Top Five” Key Differentiators Priority Ranking Weighted Score Cumulative Weighting Factors for “Top Five” Differentiators ( D score) that Could Deliver Key Differentiators Possible Features / Performance Levels 30 Copyright 2009 -
  • 16. Worked Example Using the Lean VoC Tool “Top Five” Key Differentiators Rapid Acceleration Priority Ranking Weighted Score High Top Speed Supports Scuba Cumulative For a Waterskiing Appearance Speedboat Supports Product that Could Deliver Key Differentiators Possible Features / Performance Levels 4.3 5.0 6.0 5.0 7.5 200 HP Engine 2 2 0 0 3 41.1 X 400 HP Twin Engines 5 5 0 0 5 69.0 1 Split Hull Design -1 -3 1 2 -1 -10.8 X Carbon Fiber Hull 3 3 0 0 2 42.9 3 Nitrous Oxide Injectors 5 5 0 0 1 54.0 2 3-color Gel-Coat Finish 0 0 5 0 0 30.0 5 Optional Scuba Deck -1 -2 -2 5 2 13.7 7 Automated Tow Rope Feed 0 0 0 0 5 37.5 4 Custom Storage for Gear 0 0 -1 3 2 24.0 6 Fish-Finder Sonar 0 0 0 0 0 0.0 X 31 Copyright 2009 - Do You Need to Match the Competition? In addition to differentiating your product from competitors, you may need to match one or more attributes of their products to ensure parity in non-differentiating aspects of your new product. The goal is to avoid a “negative” that might dissatisfy a customer and cause you to lose market share or pricing power. Examples include: Achieving the same approvals, certifications, etc. as your top competitors. Meeting industry standards for interfaces, outputs, etc. Updating technologies to avoid giving an edge to your competition. Matching your top competitor’s basic features or performance levels. Copyright 2009 -
  • 17. The Final Step: Setting Clear Priorities for Product Features / Performance Levels 33 Copyright 2009 - Applications of Must / Should / Could Prioritization Prioritization of Prioritization of Key Optional Product Performance Targets Features Must / Should / Could Prioritization Prioritization of Establishment of Product Versions, M/S/C levels for Testing, Sizes, etc. Quality, Defects, etc. 34 Copyright 2009 -
  • 18. Cost / Schedule Problems Can Be Solved by Trimming “Could-Haves” If Project Schedule Slips Beginning of Project or Cost Grow Highest priority Must requirements or Haves features are front-end loaded to allow scope flexibility Should at the end of project. Haves Could Haves Scope reduced to meet target cost or time-to-market goals 35 Copyright 2009 - Identifying Must / Should / Could Priorities Highest scoring features / performance levels from Lean VoC, plus… Key requirements that ensure parity with competitors’ products. Middle scoring features / performance levels from Lean VoC, plus… Key requirements that increase the product’s strategic fit or commonality with other products from your firm. Lower scoring features / performance levels from Lean VoC, plus… Relatively high risk “innovations” that might delight the customer, but are unproven or optional. 36 Copyright 2009 -
  • 19. Prioritized Requirements for Our Worked Example Engineering Requirements Brief Value or Priority Key Requirement Description Must Should Could Power Plant 400 HP Twin Gasoline Engines X Carburetion Nitrous Oxide Fuel Injection X Hull Material 3-Layer Carbon Fiber Composite X Navigation * Next Generation Global GPS X Communications * XYZ S-to-S Radio with Beacon X Certifications * UL Certification on all Electronics X Length * 20 ft. < Length < 24 ft. X Towing System Automated Feed, Constant Tension X Hull Finish 3-color Catalyzed Gel Coat X Drive Train * Common with Model SB15 X Spar Structure * Common with Model SB32 X Trailer * Standard Model T24 X Storage Customized for Scuba / Skiing X Optional Equip. Optional / Removable Scuba Deck X * Additional requirements driven by need for parity with competition or 37 Copyright 2009 - to achieve internal commonality and cost reduction. Critical Output: The “Master Action List” Maintains Team Focus The “Master Action List” is created, maintained and updated throughout the project to track long-term actions and manage “unplanned work”. Responsible Planned Actual Priority Event Actions / Risk Mitigation Team Completion Completion (High, Comments Actions Date Date Member Med., Low) Assemble Prototype Kits in Advance Jane M. 4/27/09 High Some parts are still missing Get Feedback on Draft Test Plan Joe P. 5/1/09 5/8/09 Med. Complete Run Alternative Circuit Simulations Cedrick M. 5/1/09 High Need Resources!! Make Reservations with Key Suppliers Joline Q. 5/5/09 Med. Give Customer Early Perf. Feedback Harry P. 5/10/09 Low Verify Availability of Lab Technicians Dave N. 5/10/09 Low 38 Copyright 2009 -
  • 20. Agenda “Visioning” a Lean Product Development Process Practical Learning – The Market Requirements Event Visual Workflow Management 39 Copyright 2009 - An Integrated System for Workflow Management Stand-up meetings, combined with visual project board allow for optimized team communication and efficiency. Visual board can be Stand-up Meeting made available to team members at other locations by either using a webcam, or by posting a digital picture of the board on the intranet. Visual Project Board 40 Copyright 2009 - (Obeya “Light”)
  • 21. Element #1 – The Management Status Tool Planned Actual Responsible Cost Schedule Tech. Key Milestone Completion Completion Comments Team Member Status Status Status Date Date Fabricate Prototype David Copperfield 6/7/09 6/7/09 G G G Complete Prototype Testing Oliver Twist 4/5/09 G Y Y First Test Failed Prototype Validated Tiny Tim 3/14/09 R R Y May Require Rework Production Tooling Charles Darney 4/24/09 G R G Supplier Issues Test Plan Complete Sydney Carton 4/20/09 Y Y G Resources Unavailable Final Drawing Release Lucy Mannette 5/17/09 G G G Fabricate Qual Units Charles Dickens 6/14/2009 G G G 41 Copyright 2009 - An A3-Based Management Status Template Copyright 2009 -
  • 22. Substitute for Management Status Tool: The Multi-Project “Cadence” Tool Project Kickoff Milestone Number Completion Date Designation Date 1 2 3 4 5 6 7 8 Plan Est. Actual 10/1/08 Project 1 1/2/09 R 1/2/10 6/5/10 11/20/08 9/24/08 Project 2 3/5/09 Y 3/5/11 3/5/11 Plan 10/5/08 7/1/08 Project 3 2/5/08 R 10/5/09 5/13/10 11/1/08 9/20/08 Actual Project 4 5/2/09 G 8/19/10 8/19/10 11/1/08 10/1/08 Other? 10/3/07 Y 5/13/09 5/13/09 11/20/08 Key 1. Engineering Spec Complete 5. Critical Design Review / Approval Milestone 2. Conceptual Design Review / Approval 6. Long Lead Items Ordered Definitions: 3. Prototype Performance Validated 7. Qualification Testing Complete / Approv. 4. Drawing Pkg. Rev. 0 Released 8. Release to Production Copyright 2008 - Element #2 – Team Master Action List Responsible Completion Action Item Due Date Comments Team Member Date Priority Create prototype parts kit Jane M. 4/27/09 High Parts missing Draft test plan out for review Joe P. 5/1/09 5/8/09 Med Complete Complete circuit simulation Cedrick M. 5/1/09 High Need Resources!! Order injection-mold tooling Joline Q. 5/5/09 Med Meet with key supplier Harry P. 5/10/09 Low Prepare for customer meeting Dave N. 5/10/09 Low 44 Copyright 2009 -
  • 23. Center Section of Visual Board: The “Wall Gantt” Horizontal axis represents days of the week or weeks of the month Vertical axis represents team members available for project work (including extended team) Actions are placed at junction between responsible team member and due date Colored “pull cards” can be used to identify required actions, with color used to indicate priority or type of activity 45 Copyright 2009 - A “Wall Gantt” Template for a Single Project 2-week Week 1 Week 2 Team Window Member Mon Wed Fri Mon Wed Fri Tom Dick Out Harry Out Jane Out Out Sally Mary High Priority Low Priority Team member 46 Copyright 2003 - Med. Priority Out unavailable
  • 24. A “Wall Gantt” Template for a Mix of Medium / Small Projects 2-week Week 1 Week 2 Team Window Member Mon Wed Fri Mon Wed Fri Tom Dick Harry Jane Sally Mary Project 1 Project 3 Small Projects 47 Copyright 2003 - Project 2 Project 4 Element #3 – The Project Timeline “Major Milestones” include all five Events, plus any customer / company mandated milestones. 24 Actual Time to Completion 20 Scheduled Time to Completion Cum Duration (weeks) 16 12 Schedule Variance 8 Actual Plan 4 0 0 1 2 3 4 5 6 7 48 Value Milestone Number Copyright 2009 -
  • 25. Element #4 – Parking Lot for Issues / Problems The final quadrant in your project board should provide space for unplanned issues or problems. This section should be accessible 24/7 to team members so they can capture issues as they occur. Issues that are identified will be dispositioned at the next team stand-up meeting. Issue / Problem Owner Date 49 Copyright 2009 - Example of a Single-Project Visual Board (aka, “Obeya Light”) 50 Copyright 2009 -
  • 26. Example of a Multi-Project Visual Board (aka, “Obeya Light”) Project Cadence Board Multi-Project Wall Gantt 51 Copyright 2009 - The “Visual Project Board” is a Living Workflow Management Tool Management Status Two-Week Action Plan Project Timeline Planned Actual Responsible Cost Schedule Tech. Key Milestone Completion Completion Comments Team Member Status Status Status Date Date Fabricate Prototype David Copperfield 6/7/09 6/7/09 Complete Week 1 Week 2 Prototype Testing Oliver Twist 4/5/09 First Test Failed Mon Wed Fri Mon Wed Fri Prototype Validated Tiny Tim 3/14/09 May Require Rework Tom Production Tooling Charles Darney 4/24/09 Supplier Issues Test Plan Complete Sydney Carton 4/20/09 Resources Unavailable Final Drawing Release Lucy Mannette 5/17/09 Fabricate Qual Units Charles Dickens 6/14/2009 Dick Out Harry Out Master Action List Open Issues Near-Term Action Item Responsible Due Date Completion M / S / C Comments Jane Out Out Team Member Date Priority Issue / Problem Owner Date Create prototype parts kit Jane M. 4/27/09 M Parts missing Draft test plan out for review Joe P. 5/1/09 5/8/09 S Complete Sally Complete circuit simulation Cedrick M. 5/1/09 M Need Resources!! Order injection-mold tooling Joline Q. 5/5/09 M Meet with key supplier Harry P. 5/10/09 C Mary Prepare for customer meeting Dave N. 5/10/09 S 52 Copyright 2009 -
  • 27. Project Coordination Using Team Stand-Up Meetings How to coordinate a project team – Application – Coordination Coordinate team with a 15 minute “stand-up” meeting Establishes a work plan for each team member All other topics are deferred to Lunch separate meetings, if needed. Benefits – Establishes an urgent “beat” for project execution Enables immediate course correction Team and resource reallocation Schedule Avoids “time batch” effects caused by slow feedback 53 Copyright 2009 - Advantages of Team Coordination by Stand-up Meetings Weekly Coordination More Frequent Coordination 100 100 Relative Relative Effort Effort 0 0 5 4 3 2 1 1 1 1 1 1 Work Days Before Meeting Work Days Before Meeting High High Magnitude of Errors Magnitude of Errors and Waste and Waste 54 Copyright 2009 - Low Time Between Meetings Low Time Between Meetings
  • 28. Powerful Benefits of Stand-Up Coordination Meetings Creates a shared language among team members Allows for real-time reallocation of resources Enables a focus on value- creating activities Establishes a clear work plan for each day Provides a mechanism for cultural change Builds team identity and emotional commitment 55 Copyright 2009 - How to Conduct a Stand-up Meeting 1. Should be held either at starting time, or just before lunch hour. 2. Should last for no more than 1 minute times the number of attendees (15 minutes MAXIMUM duration at first… the team can always agree to a longer duration later). 3. Entire team should attend – off-site people can call in on a speaker phone – overseas people can be connected through a designated “liaison.” 4. The meeting leader (anyone) should ask three simple questions: • What progress have you made since the last meeting? • How will you work toward your next key milestone? • What do you need from others to meet this goal? 56 Copyright 2009 -
  • 29. Overcoming Obstacles to Stand-up Meetings At first, use a kitchen timer to ensure that your meetings won’t run longer than 15 minutes. A speaker phone can be used to include team members that are geographically dispersed. Keep attendance limited to those team members who actually create deliverables and perform actions. Include “extended team” members only when their activity level on the project is high. 57 Copyright 2009 - Frequency of Stand-up Meetings Depends on Project Urgency Monthly Sustaining activities – Long-term strategic projects Weekly Major projects with low schedule pressure 3 per Week Recommended for Most Projects! Typical projects with high schedule pressure Daily “Crunch times” within a schedule-critical project Twice Daily Emergencies, fire-fighting, last few days prior to launch 58 Copyright 2009 -
  • 30. Time-Slicing Techniques Can Clear Time for Focused Project Work Application – Formal meetings and low-priority interruptions are deferred to “Project Time” late morning and PM. for Focused Project Work Phone is set to voice mail, and no e-mail activity. Several hours in the AM are allocated for focused project work requiring Lunch high level of concentration. Benefits – Significant increase in value- creating time per day. Avoids waste due to turbulence. Daily Work Schedule Enables team members to plan their time and meet schedule milestones. Copyright 2008 - Some “Project Time” Implementation Suggestions Establish a standard block of time each day that is set aside for focused project work, say 8:00 – 10:00 AM. Create a “study area” at your facility that can be reserved by workers who require short periods of high concentration. Consider a structured program that allows team members to work at home during periods in which they are performing schedule-critical work. Issue a “project-time guideline” to all employees (see next slide) Use a “red flag” or other creative method for communicating when team members are doing high-concentration work. Use a “door log” to allow visitors to leave notes or ask questions without interrupting employee’s concentration. Copyright 2008 -
  • 31. An Example of a “Project Time” Guideline Objective To provide project team members with a dedicated block of time that will allow them to focus on project specific deliverables without interruption. When Monday – Friday from 8:00 -10:00 am (for example) Guidelines • Project time will be blocked on Microsoft Outlook calendars. • No team level meetings are to be scheduled during this time. • Participants will not be required to attend staff or functional level meetings during this time. • Time is not intended to catch up on emails. • Minimal phone interruptions – set phone to voice mail. • No drop-in interruptions, unless it is an emergency. (see below) • Closed door or Do Not Disturb flag will indicate a person is busy and should not be interrupted. • Extended team members will be included at their functional manager’s discretion. Emergencies • Critical documents requiring signature • Questions relating to time-critical production-support issues • Issues that, if delayed, will cause a delay to a project milestone or the project schedule Copyright 2008 - References Anderson, D. M., 1997, Agile Product Development for Mass Customization, Irwin Professional. Barnes, T., 1996, Kaizen Strategies for Successful Leadership, Financial Times Publishing. Bicheno, J., 2004, The New Lean Toolbox , PICSIE Press. Boothroyd, G., Dewhurst, P., and W. Knight, 1994, Product Design for Manufacture and Assembly, 2nd Edition, Marcel Dekker, Inc. Bralla, J. G., 1996, Design for Excellence, McGraw-Hill, Inc. Bralla, J. G., 1999, Design for Manufacturability Handbook, McGraw-Hill, Inc. Christensen, C. M., 1997, The Innovator’s Dilemma, Harvard Business School Press. Christensen, C. M. and M. E. Raynor, The Innovator’s Solution, Harvard Business School Press. Clark, K. B. and S. C. Wheelwright, 1993, Managing New Product and Process Development, The Free Press. Cooper, R. G., 1995, When Lean Enterprises Collide, Harvard Business School Press. Cooper, R. and R. Slagmulder, 1997, Target Costing and Value Engineering, Productivity Press. Cusumano, M. A. and K. Nobeoka, 1998, Thinking Beyond Lean, The Free Press. Dimancescu, D., Hines, P., and N. Rich, 1997, The Lean Enterprise, American Management Association. Erhorn, C. and J. Stark, 1994, Competing by Design, Oliver Wright Publications, Inc. Goldratt, E. M., 1997, Critical Chain, North River Press. Henderson, B. A. and J. L. Larco, 1999, Lean Transformation, The Oaklea Press. Ichida, T., 1996, Product Design Review, Productivity Press. Imai, M., 1997, Gemba Kaizen, McGraw Hill, Inc. 62 Copyright 2009 - Kennedy, M. N., 2003, Product Development for the Lean Enterprise, The Oaklea Press.
  • 32. References (continued) Laraia, A. C., Moody, P. E. and R. W. Hall, 1999, The Kaizen Blitz, John Wiley & Sons. Leach, L. P., 2000, Critical Chain Project Management, Artech House. Liker, J. K., 1998, Becoming Lean, Productivity Press. Liker, J. K., 2004, The Toyota Way, McGraw-Hill. Mascitelli, R., 2002, Building a Project-Driven Enterprise: How to Slash Waste and Boost Profits through Lean Project Management, . McConnell, S., 1996, Rapid Development, Microsoft Press. McGrath, M. E., 2004, Next Generation Product Development, McGraw-Hill. Poppendieck, M., 2003, Lean Software Development, Addison Wesley. Project Management Institute, 1996, The Project Management Body of Knowledge (PMBOK) Guide, The Project Management Institute. Reinertsen, D. G., 1997, Managing the Design Factory, The Free Press. Rother, M. and J. Shook, 1999, Learning to See, The Lean Enterprise Institute. Smith, P. G. and D. G. Reinertsen, 1998, Developing Products in Half the Time,2nd Edition Van Nostrand Reinhold. Suri, R., 1998. Quick Response Manufacturing, Productivity Press. Tufte, E. R., 1983, The Visual Display of Quantitative Information, Graphics Press. Womak, J. P. and D. T. Jones, 1996, Lean Thinking, Simon & Schuster. 63 Copyright 2009 - Biography of Ron Mascitelli, PMP Ron Mascitelli, PMP (Project Management Professional, Masters Degree Solid State Physics, University of California, Los Angeles) is the Founder and President of Technology Perspectives . Ron is a recognized leader in the development of advanced product devel- opment methods. He presents his workshops and seminars internationally, and has created company-specific lean product development improvement programs for a number of leading firms, including Boeing, Intel, Boston Scientific, Adidas, Lockheed-Martin, Parker Hannifin, Anderson Windows, New Balance Athletic Shoes, Goodrich Aerospace, Hughes Electronics, and Rockwell Automation. Ron served as both Senior Scientist and Director of R&D for Hughes Electronics and the Santa Barbara Research Center. His industry experience includes management of advanced projects for the Department of Defense, the Defense Advanced Research Projects Agency (DARPA), Lawrence Livermore Laboratory, NASA, and the Department of Energy. Since founding in 1994, Ron Mascitelli has worked with over eighty companies to improve their product development performance and product-line profitability. In addition, he has published more than twenty papers and technical articles in major journals and trade publications, and is a contributing author for IEEE’s Technology Management Handbook. He is the author of four critically acclaimed books, including the recently published The Lean Product Development Guidebook. Ron currently lives with his wife and their numerous pets in Northridge, CA. 64