Post on 17-Jan-2016
description
Knowledge Based Product & Process Development:
An Executive Overview
Presented to-CTMA Symposium
April 18, 2005Michael Gnam
Lean Product Development Initiative (LPDI)
04/21/23 Page 2
Industry Need
New Product Development lead times have been significantly reduced in recent years through CE and IPPD methodologies and the use of product design software.
Lately, though, the pace of improvement has slowed. Best-in-class (auto) Domestic Lead Time-38 Months Toyota Lead Time-18 Months and Decreasing Needed: Great Leap Forward
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Background
Project Participants:
GM/Delphi - Champion Cincinnati Milacron Sandia National Laboratories Ortech Raytheon (TI DSEG) UT/Automotive (now Lear) Dr. Allen Ward (U of M)
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Background
After initial research by the team, it became obvious that emulating other best practice pdp processes was not the answer.
Reason: Many of our team members had already done that-benchmarked it to death
Further research indicated that we needed to go to the paradigm level to find the answer
Result: Study paradigms, not processes
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Why Study Toyota?
FASTER: half the time of US competitors– Ipsum minivan: 15 months, styling approval to full
production.– Standard is now 18 months; may be aiming at one year.– One hour response to suggestion by tool builder.
BETTER: Consistently highest quality ratings.– A car in top 3 of every category (four of them #1) in
2003 Consumer Reports reliability ratings.– Lexus again #1 in JD Powers quality survey.
– “Toyota’s not just good. It’s always the best.” —1995 Harbour
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Why Study Toyota? (cont.)
CHEAPER: at least 4X the engineering productivity of US competitors
– ~ 150 product engineers per car program at peak not dedicated; ideal is two projects per engineer vs. 600 total at Chrysler for almost twice as long
– Sales per employee 2 to 4 times those of Chrysler (with similar vertical integration).
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Why Study Toyota? (cont.)
“Toyota makes lots of money and is overtaking GM to lead the world’s car industry.”
Target: 15% of global car market Market capitalization: worth 3x the American
big 3 combined Productivity grown 7x in last 25 years, Detroit
3.5x
» The Economist, January 29, 2005
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Why Study Toyota? (cont.)
Net profit (latest year, in $B)– Profit Margin(%)
– Toyota 11.0 6.7– Nissan 6.8 6.8– Honda 4.2 5.7– GM 3.9 1.9– Ford 3.8 2.4– D/Chrysler 0.5 0.3
Source: The Economist, January 29, 2005
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The Toyota Paradox
• No requirement to co-locate teams or dedicate engineers
• Does not establish early design specifications• Delay, as long as possible, freezing the design• No “design factory” process — no hand-offs• Simple process, few “tools” — no reliance on QFD,
FMEA, PERT, DFM• No Six Sigma corporate strategy• No standard development process – or an initiative
to create one• Lots of prototypes – lots of parallel designs
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Product development excellence is based on compliance to company standards
– Quality indices– Functional performance indices– Detailed processes
A STRUCTURAL PERSPECTIVE
Conversely, typical U.S. Companies
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The “Structural” Assumption
Compliance to rigorous design process / quality standards will yield great products on time
Wrong!
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Issues: Current Product Development System
Value-added productivity is 20 – 40% Project management has become too
administrative Design reviews are focused on tasks, not results Minimal learning between projects Design engineers have little design experience Planning and control systems are not
maintainable Design process loop-backs are systemic
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The Nature of Product Development
Product development is an iterative, uncertain process: plans are results dependent
Learned knowledge during any operation is the only value added intellectual inventory
Activities based strictly on compliance will invariably create reams of non-value added information
–wasted effort–informational clutter–costly maintenance
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What if
All the knowledge gained throughout the design process, what works and what doesn’t work, could be captured and consistently applied for all future projects
That is the power of the Toyota development system
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Lean Product Development
Is not a re-application of the principles of Lean Manufacturing!!
It is complementary to Lean Mfg principles and to DFSS principles
Product Development requires innovation and the open minded application of profound knowledge.
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The Essence of Lean Development is the effective management of knowledge– Encouraging– Creating– Acquiring– Controlling– Sharing– Applying– Leveraging
Toyota is only an example of excellence
Lean Product Development
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The Toyota Development System
Creating and leveraging knowledge to create an ongoing stream of great profitable products
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The Toyota Paradigms
Leadership– Expertise based
Solution Exploration– Point based– Set based
Planning & Control– Task based (stage gate)– Responsibility based
Personnel Foundation
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CE integrates everything, is totally responsible
StylingVehicle Evaluation
Body
Chassis
Power Train
R & D Customer
Manufacturing Chief Engineer
•product plan•concept•design architecture•targets and specifications
•schedule•budget•drawing approval
Top management
judged on corporate objectives: profit, share, learning
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Leadership by expertise
Technical expertise: Minimum 20 years experience as engineer– Deep grasp of engineering fundamentals
(communication with any engineer)– Assignment(s) outside original area of
expertise (ability to adapt and learn quickly) System design skills and attitudes; strong personalities
– Assignment(s) as assistant chief engineer (integration experience)
– “Push very hard — but know when to stop”– Pinball — reward is to do it again
Communication skills and knowing the company
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The Exploration Paradigms: point-
based vs set-based
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Point-based design: design as iterative improvement of point
solutions
generate concepts
synthesize analyze
improve
pick one
+ ++ +
+
More costly region
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Set-based design
picture by Toyota GM of body engineering
3. Innovate and optimize without risk by controlled narrowing of redundant solutions.
4. Dominate markets and reduce costs through market and conceptual robustness.
1. Explore cheaply by mapping design sub-spaces.
2. Integrate by intersecting minimum constraints.
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Planning and control paradigms
Task based Responsibility based
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Task-based Plans Decompose
Centralized planning.– written by staff– standard– high detail
Built around tasks: begin and end at information hand-off points
A Push System
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Responsibility-based Plans Integrate
Responsibility streams and integrating gates– clear, “whatever it takes” responsibility for subsystems– gates bring everyone together– everyone starts when they must to meet the gates,
seeks information as needed– known acceptable variation for each gate
Finance
Mktg.
Styling Body Eng.
Production Eng.
Concept Clays P1
A Pull System
reso
urce
s
time
Process designed with the product.
– written by team leader– simple– subordinates fill in the
details
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Knowledge paradigms
– Model oriented
– Learning oriented
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No change without measurable benefits. Computer modeling is the key.
– finite element models by engineers who don’t know beam equations.
– process improvements through analytical prototypes “to be created.”
– expert systems will allow continued rapid rotations of inexperienced engineers and managers.
Decisions based on accounting and marketing data, even though we know it’s wrong.
US: complex models as oracles
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Toyota: Tools or models as simple servants
Data informs, not substitutes for human judgment.
“ The chief engineer [not marketing or accounting models] decided not to paint the Corolla bumper.” — A CE
“Good intuitive sense is crucial... [and] is something we need to foster. Marketing data leads to designs that are too conservative.”
—Exec VP of R&D
Everyone is constantly sketching relationships, problems, and solutions. TOC’s, A-3’s
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Engineering “Checksheets”
Toyota’s manufacturing engineers maintain design standards.
– Part by part, tool by tool.– Describe current manufacturing
capability.– Contain solutions to past problems.– Working-level engineers update
regularly.– Everyone can access them.
Every project begins with the design standard.
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Trade Off Curves: The Power of Visible Knowledge
Tradeoff curves are the visual representation of basic product and process physics and economics
They are the Toyota’s engineer’s primary tool to
Understand Communicate and negotiate
between specialties and functions Train new engineers Record knowledge Negotiate and communicate
between customer and supplier Conduct design reviews Communicate between developers
and managers Design quality into the product
Back pressure
Nois
e level
Exhaust system family
Safe region
Infeasible
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Personnel Management Paradigms
– Boss based– Market based– Qualification based– System based
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Results-oriented personnel management
In the job long enough to acquire real expertise, acquire a reputation for results
Managers competent to judge engineering work Evaluated based on reputation by a council of senior
managers Deliberate effort to ignore appearances, where schooled
in what Non-value added is anything that doesn’t directly please
customers (such as reporting)
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Developing engineer/managers at Toyota
min. 5 years in one specialty. min. 5 years in related specialty. assist. manager (5 years) in similar
specialty (player/coach for five engineers)
manager (5 years) in similar specialty (player/coach 5 assistant managers)
5-10 yrs5 yrs
depth
breadth
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Foundation Paradigms
Advocacy
“Other people control my life”
persuasion is the most important skill
Goals, programs, “taking care of people”
Hands-on Entrepreneurship
“I control my life”
Hands-on creation is the most important skill
“Yankee know-how”
“Rugged Individualism”
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Can Culture Change?
Advocacy Hands-On
Causal Attributes Characteristics Who leads industry Financiers, Marketeers “Engineers”
What solves problems
Government Technology
How to pick solutions Argue Try them out
What to trust Procedures, education Judgment, experience
What to reward Advocacy, plans, potential, ____ correctness, contacts
Results
What’s an engineer White collar specialist nerd Hands-on system-designer hero
Industrial performance
Low High
Before WWII
After WWII
US SoftwareUS Japan
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PDP Project Findings
Difference is in their set of Paradigms Counterintuitive to our thinking
– Delay, as long as possible, making decisions
– More and more prototypes, both real and virtual
– Pursue sets of solutions, not answers Analogous to JIT in late 70’s 58 Paradigms catalogued & discussed
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PDP Excerpts
Top Toyota Engineer (equiv to CTO) spends 90 % of his time solving technical problems.
Ford engineers suggested 3-4 layers down before any technical problem solving done
Toyota Chief Engineer feels he is a people person--Mentoring
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PDP Excerpts
Beware of:– GM- Aim, Aim, Aim!!– Plans to produce plans– High level people very busy but doing
nothing of value to customer– Compliance for the sake of compliance– Deviation from simplicity– Ambiguous phraseology
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PDP Excerpts
Structure Based– People selected &
promoted based on perceived potential (fasttracking)
– People selected & promoted based on presentation skills
– People selected & promoted based on promises and plans
Knowledge Based– People selected &
promoted based on knowledge, wisdom, and experience
– People selected & promoted based on results
– People selected & promoted based on teaching and mentoring skills
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PDP Excerpts-Knowledge Hierarchy
Perceptions-Our first impressions Data-Stored in a base Facts-What is really happening Information-Collection of focused data &
facts Knowledge-Proper application of useful
information Wisdom-Providing the best solutions
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PDP Excerpts—Action Verbs
Structure Based– Organize– Check– Monitor– Approve– Support– Plan – Plan to Plan– Ensure Compliance– Oversee
Knowledge Based– Perform– Do– Design– Create– Solve– Teach– Mentor
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2-4X increase in development productivity 2-3X decrease in development cycle time 2-4X decrease in development cost 2-5X increase in innovation 2-5X decrease in development risk
The Gain Potential
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Knowledge-based Product
Development
TheImplementationPerspective
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The Change Process
Focus initially on one product family – or a subset Assign clear knowledge / change ownership Complete progression to set based within year Expand to other product families as comfortable Modify corporate infrastructure elements as you go
Principles of Learning Based Development
Capture Knowledge
Design by Knowledge
Set basedDevelopment
Leadership Alignment
Expand to other product areas
Focus on one product family
1 2
3
4
5
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How We Can Help – A Series of Kickoff Workshops
1. a. Executive Overview b. Leadership Alignment
One Day Workshop Follow up as required
Leadership understands principles and commits to becoming a knowledge based organizationAssessment and planning next stages
2. Learning based Development Workshop
Two day workshop Details of entire process Aligns customer processes
The workgroup understands the whole, is aligned to the leadership vision, and owns the change process
3. Knowledge Stream Mapping Two day workshop Build database model Follow up as required
The development personnel understands the alignment and importance of physics based knowledge mapped to customer needs and design decisions
4. Knowledge based Design Kickoff workshop to establish process concept Teams engaged to work the details
Robust knowledge becomes an integral part of the traditional point based design process
5. Set Based Design Kickoff workshop to establish process concept Teams engaged to work the details
Process is expanded to include set based design
Activity Plan Outcome
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Assessing the Risk of Change
The potential is huge– 4X productivity gain– Extensive cross project learning– Company wide knowledge and experience – Increased innovation– Time-to-market decrease– Consistency in development performance
The risk is minimal - any progress toward a learning environment is positive
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Knowledge Based Product Development Paradigms:
Questions ? Comments ?
For additional information contact Mike Gnam at NCMS– mikeg@ncms.org– 734-995-4971– http://lpdi@ncms.org