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LEAN Product Development
       Implementation


                   Itzhak Ben-Levy - LEAN Expert
                        itzhak@benlevy.co.il
                          www.benlevy.co.il



                           August 2012
Itzhak Ben-Levy LEAN Expert ©                      1
The Traditional way
              It is                        Too many parts
           expensive     Nobody gave me
                         The target cost




                   I cant assemble it

                        The requirements
                          were changed
Itzhak Ben-Levy LEAN Expert ©                               2
The Development Problems
    • Long development cycle times

    • Many redevelopment cycles

    • High development costs

    • Long production cycle times

    • High production costs

Itzhak Ben-Levy LEAN Expert ©        3
LEAN
LEAN Manufacturing




           LEAN Product Development




Itzhak Ben-Levy LEAN Expert ©         4
The main Principles Of
           Lean Product Development
   • Establish customer-defined value
   • Front-load the product development
     process
   • Create a level product development
     information flow
   • Organize to balance functional expertise
     and cross-functional integration
   • Align your project through simple visual
     communication
Itzhak Ben-Levy LEAN Expert ©                   5
LPD workshop




Itzhak Ben-Levy LEAN Expert ©       6
Outcome of LPD workshop
 Reducing development production lead time and cost by:

   • Templates for capturing new data and information
   • A focus on value creating activities
   • New insights into the development process
   • Real time reallocation and synchronization of
      activities
   • Team identity and emotional commitment
   • Common language among team members
   • To do list identifying new corrective actions

Itzhak Ben-Levy LEAN Expert ©                             7
Itzhak Ben-Levy LEAN Expert ©   8
Value to the customer

    • Solving customer Problems

    • Exploiting Opportunities

    • The product should Look good

    • The Customer should Feel good

     9
Itzhak Ben-Levy LEAN Expert ©         9
QFD shorten cycle time by:
  1.        Understanding value to the customer
  2.        Exploiting customer needs
  3.        Deriving and consolidation of the
            requirements from customer needs
  4.        Prioritizing requirements
  5.        Allocating requirements to the project
            team


       10
Itzhak Ben-Levy LEAN Expert ©                        10
NPI - New Product Introduction
        IPT                                                           METHODOLOGIES
 (Integrated Product
                         IPT Leader - Project Manager
        Team)             System Engineering                   QFD
                          Logistics                           REUSE
                          Production Engineering              DFMA
                          Contracting                   PROCESS MAPPING
                          Customer
   PHASE                                                        DTC
                          Strategic Suppliers
                          Finance                           MAKE-BUY             GATE
                          Planning                       RISKS MITIGATION
                          Customer Service


         ARO                        Design Readiness                           DRR

                                                              MANAGEMENT PLAN
                                               RISKS           PRODUCTION &
           SPEC REQUIREMENTS
            CONFIGURATION DEVELOPMENT POLICY TECHNOLOGIES DEVELOPMENT
                              PROTOTYPE        PROGRAM       PURCHASING
            PERFORMANCE
                              MATERIAL        RESOURCES       TIME TABLES
            ARCHITECTURE
            ENVIRONMENT      COMPONENTS       MANPOWER      ORGANIZATION CHART
                              REUSE            INFRASTRUCTURE BUDGET PLAN
                                                              
            TESTS
                              MAKE-BUY        TARGET COSTS  CUSTOMER
            QUALITY
            ILS              SUB CONTRACTORS  DEVELOPMENT REQUIREMENTS
                                                PRODUCTION    CUSTOMER DELIVERIES
            MAINTAINABILITY
                                                LCC           PRODUCT TESTS
  OUTPUTS                                                      DEVELOPMENT TOOLS


Itzhak Ben-Levy LEAN Expert ©                                                            11
LPD Gates

    1.    SRR – SYSTEM REQUIREMENT REVIEW
    2.    DRR – DESIGN READINESS REVIEW
    3.    PDR – PELIMINARY DESIGN REVIEW.
    4.    CDR –CRITICAL DESIGN REVIEW.
    5.    TRR– TESTS READINESS REVIEW
    6.    TRDR– TEST RESULT DESIGN REVIEW
    7.    PRR– PRODUCTION READINESS REVIEW
    8.    FAI – FIRST ARTICLE INSPECTION
Itzhak Ben-Levy LEAN Expert ©                12
DTC

  PRICE - PROFIT = COST
    Determined
      by the
    competitors
                        Determined     Determined
                          by the      to the project
                         corporate      manager
Itzhak Ben-Levy LEAN Expert ©                          13
How the engineer now how
                ?to design

    Sub
 contracting                                      riveting



         casting                               welding


                         forging   machining


          The cost target determined it
Itzhak Ben-Levy LEAN Expert ©                                14
Reduce requirements
                    And cost
  Requirements
     (QFD)
                                    challenge
                     Accept all
   Important




                      Consider to    delete
    Not                 delete                       Implementation
  important                                                Cost
                                                High      (DTC)
               Low
Itzhak Ben-Levy LEAN Expert ©                                     15
Suppliers
                costs reduction
     Supplier                           Engineering

                  Costs drivers


                            Requirements
                              Priorities



Cost Reduction                  Requirements Reduction
Itzhak Ben-Levy LEAN Expert ©                         16

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Lean product development implementation

  • 1. LEAN Product Development Implementation Itzhak Ben-Levy - LEAN Expert itzhak@benlevy.co.il www.benlevy.co.il August 2012 Itzhak Ben-Levy LEAN Expert © 1
  • 2. The Traditional way It is Too many parts expensive Nobody gave me The target cost I cant assemble it The requirements were changed Itzhak Ben-Levy LEAN Expert © 2
  • 3. The Development Problems • Long development cycle times • Many redevelopment cycles • High development costs • Long production cycle times • High production costs Itzhak Ben-Levy LEAN Expert © 3
  • 4. LEAN LEAN Manufacturing LEAN Product Development Itzhak Ben-Levy LEAN Expert © 4
  • 5. The main Principles Of Lean Product Development • Establish customer-defined value • Front-load the product development process • Create a level product development information flow • Organize to balance functional expertise and cross-functional integration • Align your project through simple visual communication Itzhak Ben-Levy LEAN Expert © 5
  • 6. LPD workshop Itzhak Ben-Levy LEAN Expert © 6
  • 7. Outcome of LPD workshop Reducing development production lead time and cost by: • Templates for capturing new data and information • A focus on value creating activities • New insights into the development process • Real time reallocation and synchronization of activities • Team identity and emotional commitment • Common language among team members • To do list identifying new corrective actions Itzhak Ben-Levy LEAN Expert © 7
  • 8. Itzhak Ben-Levy LEAN Expert © 8
  • 9. Value to the customer • Solving customer Problems • Exploiting Opportunities • The product should Look good • The Customer should Feel good 9 Itzhak Ben-Levy LEAN Expert © 9
  • 10. QFD shorten cycle time by: 1. Understanding value to the customer 2. Exploiting customer needs 3. Deriving and consolidation of the requirements from customer needs 4. Prioritizing requirements 5. Allocating requirements to the project team 10 Itzhak Ben-Levy LEAN Expert © 10
  • 11. NPI - New Product Introduction IPT METHODOLOGIES (Integrated Product IPT Leader - Project Manager Team)  System Engineering QFD  Logistics REUSE  Production Engineering DFMA  Contracting PROCESS MAPPING  Customer PHASE DTC  Strategic Suppliers  Finance MAKE-BUY GATE  Planning RISKS MITIGATION  Customer Service ARO Design Readiness DRR MANAGEMENT PLAN RISKS  PRODUCTION & SPEC REQUIREMENTS  CONFIGURATION DEVELOPMENT POLICY TECHNOLOGIES DEVELOPMENT  PROTOTYPE  PROGRAM  PURCHASING  PERFORMANCE  MATERIAL RESOURCES  TIME TABLES  ARCHITECTURE  ENVIRONMENT  COMPONENTS  MANPOWER  ORGANIZATION CHART  REUSE  INFRASTRUCTURE BUDGET PLAN   TESTS  MAKE-BUY TARGET COSTS  CUSTOMER  QUALITY  ILS  SUB CONTRACTORS  DEVELOPMENT REQUIREMENTS  PRODUCTION  CUSTOMER DELIVERIES  MAINTAINABILITY  LCC  PRODUCT TESTS OUTPUTS  DEVELOPMENT TOOLS Itzhak Ben-Levy LEAN Expert © 11
  • 12. LPD Gates 1. SRR – SYSTEM REQUIREMENT REVIEW 2. DRR – DESIGN READINESS REVIEW 3. PDR – PELIMINARY DESIGN REVIEW. 4. CDR –CRITICAL DESIGN REVIEW. 5. TRR– TESTS READINESS REVIEW 6. TRDR– TEST RESULT DESIGN REVIEW 7. PRR– PRODUCTION READINESS REVIEW 8. FAI – FIRST ARTICLE INSPECTION Itzhak Ben-Levy LEAN Expert © 12
  • 13. DTC PRICE - PROFIT = COST Determined by the competitors Determined Determined by the to the project corporate manager Itzhak Ben-Levy LEAN Expert © 13
  • 14. How the engineer now how ?to design Sub contracting riveting casting welding forging machining The cost target determined it Itzhak Ben-Levy LEAN Expert © 14
  • 15. Reduce requirements And cost Requirements (QFD) challenge Accept all Important Consider to delete Not delete Implementation important Cost High (DTC) Low Itzhak Ben-Levy LEAN Expert © 15
  • 16. Suppliers costs reduction Supplier Engineering Costs drivers Requirements Priorities Cost Reduction Requirements Reduction Itzhak Ben-Levy LEAN Expert © 16