JMAC approach to effective Product and Service Innovation

Our vision of Innovation

� Product and technological innovation is one of the main driver available to companies to keep or increase their market competitiveness.

� Nowadays this is particularly critical for the European companies: to avoid the competition of the low cost countries it is necessary to differentiate with products and services which are more innovative and of superior quality, pursuing at the same time the elimination of all waste present in their processes.

JMAC Europe – Proprietary and Confidential

� The ability to innovate and to manage innovation efficiently has a strong impact on the company’s economic results:

• sales volumes (success / failure of the products on the market)

• margins:

– sales prices (product innovation – premium price)

– direct costs (materials used, manufacturability, product cost and production costs driven by product design)

– indirect costs (variety costs, logistic costs, product life-cycle costs).

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Our mission

Increase company competitiveness by improving their capability to innovate

and manage innovation processes efficiently

Each intervention guided by JMAC has two goals (dual target

tan

gib

le)


Each intervention guided by JMAC has two goals (dual targetapproach):

�Reach the business objectives

�Strengthen the company organization and growth of its people, so that the company can sustain and maintain change autonomously B

usi

ne

ss o

bje

ctiv

es

(ta

ng

ible

)

Organizational objectives (intangible)

“Dual Target” approach

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JMAC approach

� JMAC’s distinctive element is the capacity to understand, togetherwith customers, the innovation constraints and the opportunitiesexisting in the processes of all the company’s stakeholders:customers, in-house resources and suppliers as well.

� We adopt an approach which combines the principles of “Lean Design” to those of “Marketing fact-oriented” design. To usthat means understanding the real needs of the market and translating them into concepts of product or service, whilemaximizing the “value for the final customer” and reducing “the costs for the company” along their entire life cycle: fromdesign, to production, distribution, usage and disposal.


customers, in-house resources and suppliers as well.

� All our consultancy interventions put customer people at the centerof change. In fact our daily activity is inspired by the principle of”Enactment”, i.e. the effort to have their capacity to innovate andmanage innovation come to surface, get enhanced and practicalimplemented.

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Objectives

Increasing revenues/sales

Reducing costs

Increasing the innovation capability

Increasing the innovation management capability


� Identify the most encouraging market / technological trends for business development

� Maximize the value for the customer along the entire product life cycle

� Increase the degree of innovation of products / services

� Maximize the marginality of the existing product portfolio

� Reduce the time-to-market for new products

� Grant for an excellent product quality (compliance with the needs and reliability)

� Respect the target cost of project and product

� Increase efficiency in the engineering departments

� Reduce the product and production/after sales costs affected by the project

� Manage successfully projects in the Engineered or Configured to Order business

Increasing the innovation capability

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Our Reference model: the 3P scheme

Develop

successful

products

Product

Market


Process People

Continuous improvement

Increase

efficiency in

product

development

Activate

individuals and

the organization

Lean Thinking principles

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Listening to the market and planning innovation

Basic knowledge

Product and service

Development

Technological

Contents

- Ecology

- Safety

- Rules

- New behaviors

- ICT

- …

Current needs

Future needsINNOVATION MARKET PULL

“Customers”


Technological

sources

- …

INNOVATION TECHNOLOGY PUSH

� Quality-quantitative analysis of the market: systematical collection of information about current and future needs ofcustomers. The aim is to define or redefine the product/service contents (by market research, customer satisfactionanalyses, ethnographic analyses, focus groups).

� Technological Roadmap / benchmarking: understanding of trends and evaluation of the risks/opportunities, selection ofthe market-products-technology combinations having higher potential, planning and implementation activities.

� Planning and management of product ranges: rationalization of the existing range of products, joint plan of the entirerange of a new line of products, project selection and portfolio management.

Reference methodologies

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Maximizing the value for the customer

Value for the customer =

Usage value of the product/service

Purchase cost of the usage value Sales price + all the costs that the customer has to sustain to benefit of the product / service value

Contribution of the product feature to the customer need



� Experience Design: design new products/services through the ethnographic analyses (direct observation of the behavior ofthe potential customer in his context of use/fruition of the product/service).

� Customer focus: reconsider the way a new product/service is conceived, showing the customer a preview of functional anddesign solutions by the virtual catalogue approach.

� Value analysis / Value engineering: cut the product costs without reducing the value for customers; increase gains byupgrading the features customer gives more importance to. JMAC approach to VA / VE retrieves the fundamental principlesof quality improvement through the Kano model (identification of the needs and product features as basic-performance-exciter) and of the Quality Function Deployment (changing the needs into adequate product and process requirements).

� Quality Excellence: aim to a “zero defects” target through the systematic and rigorous application of the Japanesetechniques of design for quality.


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NEEDS

Customer: Having

personalized products

Product diversification

Resolving the conflict between differentiation and standardization

CONFLICT


Producer: Reach the

objectives of Quality,

Cost and Time

Product standardization

� Variety Reduction Program® : reduce the costs of product (and of process) by combining standardization and efficiencywith the need to satisfy different market needs through a wide range of products.

� Modular development (henshu kaihatsu): develop at the same time the products of a specific range with a modulararchitecture with the aim of preventing useless variety of products, components and processes.


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Effective management of processes and projects

� Changing direction in a downstream phase of the project can be veryexpensive and risky in terms of quality and time-to-market.

� Any criticalities (explicit and /or potential), either related to the newproduct development process or to the product itself, have to bedetected since the very start of the project. Proper Project Managementtechniques can be used, based on the principles of front loading (whichis to anticipate in time the identification and solution of any criticalissues) and feed forward (i.e. to prevent the recurrence of problems byreferring to previous experiences)

Time

“FRONT LOADING”

knowledge

Work load



� Stage & Gate approach: clearly define the phases and check-points ofthe project, the intermediate and the final outputs, the responsibilitiesand the rules of advancement. Whilst keeping the necessary flexibility,the approach prevents the realization of project activities when the inputsfor their execution are not adequately consolidated (risk of rework). Theverification milestones give an orientation to the project team infinalizing on time the activities necessary to overcome the control gate.

� Visible Planning®: improve the project Time, Costs and Quality outputs,by means of visual-type tools for planning and control. The programallows the combination of some typical aspects of the projectmanagement with tools and actions affecting the relational dimension ofthe organization (behavior, making resources responsible, knowledgecapitalization, etc.).


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Eliminate waste in the product development process

� Unclear, not standardized process

� “Not “concurrent” process flows� Unclear inputs

� Correction of errors� Adjustments due to change of

specifications not required by the Customer / market

� Unnecessary reports & information� Useless elaborations� Useless projects� Variety not necessary� Low “carry over” rates

� Knowledge and competence “concentrated”, not widespread

� Relational problems� Few proactive resources� “Foggy” effect

� Unresolved problems� Not managed risks� Postponed decisions

� Report, information, project scripts accumulated and

5. Inventory(Virtual warehouse)

1.Processing(Rules on processes)

7.People(Inadequate behaviour)

2.Correction(Reworks)

4. Waiting

8.Knowledge(Not managed

knowledge)

Type of

waste 3. Over-

Production(useless production)

6.Back Loading(Postpone activities)


� Lean Design: reach excellence in the development processes of new products, transposing the principles of LeanProduction to the design processes.

� Design for Lean Production: the design of a new product considering the production process since the early phase ofConcept Design. This is aimed to achieve the capability to manufacture at the lowest possible cost, gaining a qualityoutput as defined during the project planning and at the date expected for the Start of Production. The methodespecially affects the phase of Production Technology.

� Lean for Project Based Enterprises (Minamoto SekkeiTM and Setsuban Kanri®): specific programs for the productdevelopment and the order management of the engineer-to-order companies.

scripts accumulated and sent with delay � Lack of synchronization

� Incomplete information given to the following process


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Improving the skills and the capabilities of engineers

� For interventions strongly focused on people, specificmethodologies are applied, based on the developmentand improvement of their competences and capabilities.

� A key factor, that our interventions address along the softdimension, involve people communication and behavioralaspects.



� YWT (Did / Understood / Next Steps): make engineers (and other resources involved in the new product developmentprocess) aware of what has been done in a particular phase of the project, of what has been understood and of whateveryone is intending to do in order to achieve one’s individual objectives.

� R&D Kaizen course: training program finalized to increase the capacity to innovate of the R&D personnel and to spreadamongst technicians the attitude of improving continuously the processes and their capabilities. It includes theoreticalsessions, individual and team work exercise to practice. The course ends with a improvement plan focused on one’s R&Dbusiness area.

� Innovation factory: the experiential training of the Kart Factory by JMAC is adopted to build up in designers theawareness of the impact that the design choices have on productive processes. Participants to the training are asked toassemble, on a real production line, real go-karts still not optimized from the project point of view; and to revise theproduct structure under a design-for-assembly viewpoint while reducing the unnecessary product variety. A speciftraining module about FMEA is also available


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Knowledge Integration and Spreading

� The acquisition and mastering of knowledge isfundamental to innovation. It is anytime necessary to fosterthe creation, spreading utilization and reutilization ofprinciples, practices and information for the continuousimprovement of R&D processes.

� This is particularly critical in the contexts where knowledge isconcentrated amongst few people, the same errors arerepeated, one “starts from scratch” to carry out a particularactivity.

Explicit

ImpliedKnowledge

type

Socialization

Spreading

Exp

lan

ati

on

Inte

riorizin

g

The processes of creation of knowledge


� Technical Meeting: structured sessions for the sharing of experiences which cannot be formalized.

� Lesson learned: structured sessions to explain, classify, share the “mistakes” and the “solutions” of a past experience, of aproject.

� OPL (one-point lessons): a tool providing for the simple description in one page of the right way to execute operations, ofthe standards,…on a specific topic, be that technical or managerial. All the OPLs combined (on paper or computer support)become progressively the company knowledge base which can be formalized.

Reference methodologies Knowledge ownership

Individual Company

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Achievements and Industries we have experience with

A sample reference of results achieved by some of our projects:

� Average contribution to the turnover by the new products (+30 ~ 50%)

� Time-to-market ( – 20 ~ 40%)

� Target cost (difference between actual cost and target cost at the start of production < 5%)

� Product quality (– 60% on the internal non conformities, – 20% in the warranty costs due to reliability problems of the

products)

� Engineering efficiency (– 20 ~ 40% rework and unexpected/ unplanned activities in design )

� Product costs (– 10 ~ 25%)

� Delivery of made-to-order products (100% of products delivered on-time, no more extra-charges due to delays)


Sectors of the most significant experiences:

� Domestic appliances

� Electric / electronic components and devices

� Components for the automotive and similar sectors

� Machine tools

� Construction Equipment

� Industrial automation components

� Oil & Gas

� Gifts, household and fashion goods

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Contacts

HEADQUARTER:

JMA Consultants Inc. Tokyo 105-8534 Japan4 Fl., Shuwa Daini Shibakoen 3-chome Building3-22-1, Toranomon, Minato-ku� +81 3 3434.7331 � +81 3 3434.6430� www.jmac.co.jp

JMAC Europe S.p.A.20123 Milano – Italia Via Fieno, 1

� +39 02 72138318 � +39 02 8053784� [email protected]� www.jmaceurope.com

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