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LEAN PRODUCT-PROCESS 
INNOVATION: MORE THAN TOOLS 
By Jim Morgan and Jeff Liker 
August 2014
More and more companies are 
engaged in creating new working 
patterns in product creation that 
engage people and functions across 
the organization. 
Every organization should have 
strong routines for effective 
innovation to keep moving forward! 
It’s not so complex, but it is a 
challenge to introduce new 
behavior routines into a 
team or organization. 
2
Notice... Your core product or service is the one 
thing your entire organization has in common. 
Delivering a new product or service and creating 
a better value stream involves every function in 
the organization. 
Focusing on the value you add for your customer 
is a way to align and engage any enterprise. 
3 
A Unique Opportunity
Delivering the right Product 
or Service = Growth 
Plus 60 – 70% of operating costs 
are determined in the design 
phase of a product & process 
Lean Product-Process Development is about 
creating great products and reducing cost 
4
VALUE ENGINEERING 
VISUAL Management 
Knowledge Database 
Error 
PROOFING 
DETAILS 
ASSEMBLY 
So Many Tools??? 
Value Stream Mapping 
Obeya (big room) 
Standard Architecture 
5
Time 
Leveled 
Processing 
6 
Creating Flow in Product Development 
PEOPLE 
PROCESS TOOLS 
A sustainable system
But it’s People Who Turn Lifeless Tools 
into Innovation 
“We could talk about Toyota’s engineering process and TPS 
and all these different systems. But just talking about them is 
not going to necessarily make another company better. It is 
rooted much deeper in the culture in things like obeya, the Chief 
Engineer system, kaizen, etc. It is the totality of it working 
together in the culture established across many years that make 
it all work.” 
Uchiyamada, 
First Chief Engineer, Toyota Prius 
7 
PEOPLE 
PROCESS TOOLS
8 
Born It’s Learned 
OK... HOW? 
Design 
Thinking
9 
VIDEO - A Way the Brain Learns 
(2 minutes) 
https://www.youtube.com/watch?v=ELpfYCZa87g
We’re striving for a 
Learning Organization 
HABITS 
Knowledge 
(What, Why) 
Skills 
(How) 
Desire 
(Want) 
HABITS 
10
The Lone Inventor with one Brilliant Idea 
is a Myth 
“Genius is one percent inspiration, ninety-nine percent perspiration.” 
• Challenge: A working electric Light bulb 
• Hypotheses: 3000 different filaments 
• Tested every version 
• 2 successes/3000 
11
It is Many Ideas that Through 
Experimentation Turn into One Winner! 
Experimenting our 
way forward 
12 
Increasing Knowledge
What do you See? 
Isolated Individuals or Collaboration? 
• Introduction
Innovation Does Not Have to be Chaotic 
Work Authorization Board: 
The Daily Visual Work Schedule - Simplicity & Clarity! 
• Time actual completion of each card vs. planned 
Menlo Innovations, LLC • Red, green, yellow 
The joy of getting things done! 
14
Join Your Colleagues 
to Learn More 
Join us on September 23-24 at the Lean 
Product and Process Exchange – to learn 
more about creating LPPD routines! 
http://www.lppde.org/conferences/2013-NA-ConferenceSite/ 
September 23-24, Raleigh, NC 
15

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Innovation: An Odyssey in Learning

  • 1. LEAN PRODUCT-PROCESS INNOVATION: MORE THAN TOOLS By Jim Morgan and Jeff Liker August 2014
  • 2. More and more companies are engaged in creating new working patterns in product creation that engage people and functions across the organization. Every organization should have strong routines for effective innovation to keep moving forward! It’s not so complex, but it is a challenge to introduce new behavior routines into a team or organization. 2
  • 3. Notice... Your core product or service is the one thing your entire organization has in common. Delivering a new product or service and creating a better value stream involves every function in the organization. Focusing on the value you add for your customer is a way to align and engage any enterprise. 3 A Unique Opportunity
  • 4. Delivering the right Product or Service = Growth Plus 60 – 70% of operating costs are determined in the design phase of a product & process Lean Product-Process Development is about creating great products and reducing cost 4
  • 5. VALUE ENGINEERING VISUAL Management Knowledge Database Error PROOFING DETAILS ASSEMBLY So Many Tools??? Value Stream Mapping Obeya (big room) Standard Architecture 5
  • 6. Time Leveled Processing 6 Creating Flow in Product Development PEOPLE PROCESS TOOLS A sustainable system
  • 7. But it’s People Who Turn Lifeless Tools into Innovation “We could talk about Toyota’s engineering process and TPS and all these different systems. But just talking about them is not going to necessarily make another company better. It is rooted much deeper in the culture in things like obeya, the Chief Engineer system, kaizen, etc. It is the totality of it working together in the culture established across many years that make it all work.” Uchiyamada, First Chief Engineer, Toyota Prius 7 PEOPLE PROCESS TOOLS
  • 8. 8 Born It’s Learned OK... HOW? Design Thinking
  • 9. 9 VIDEO - A Way the Brain Learns (2 minutes) https://www.youtube.com/watch?v=ELpfYCZa87g
  • 10. We’re striving for a Learning Organization HABITS Knowledge (What, Why) Skills (How) Desire (Want) HABITS 10
  • 11. The Lone Inventor with one Brilliant Idea is a Myth “Genius is one percent inspiration, ninety-nine percent perspiration.” • Challenge: A working electric Light bulb • Hypotheses: 3000 different filaments • Tested every version • 2 successes/3000 11
  • 12. It is Many Ideas that Through Experimentation Turn into One Winner! Experimenting our way forward 12 Increasing Knowledge
  • 13. What do you See? Isolated Individuals or Collaboration? • Introduction
  • 14. Innovation Does Not Have to be Chaotic Work Authorization Board: The Daily Visual Work Schedule - Simplicity & Clarity! • Time actual completion of each card vs. planned Menlo Innovations, LLC • Red, green, yellow The joy of getting things done! 14
  • 15. Join Your Colleagues to Learn More Join us on September 23-24 at the Lean Product and Process Exchange – to learn more about creating LPPD routines! http://www.lppde.org/conferences/2013-NA-ConferenceSite/ September 23-24, Raleigh, NC 15