IMPLEMENTATION OF LEAN PRINCIPLES IN NEW PRODUCT DEVELOPMENT ACTIVITIES

Saeed Taheri Nottingham Business School

Contents

Principles of Lean New Product development Lean product development Waste and Value Existing approaches to LPD Research questions Research methodology Research timetable references

Principles of lean

Womack and Jones -2003

1- Specify value

2- Identify the value stream and eliminate waste

3- Make the value flow

4- Let the customer pull the (value) process

5- Pursue perfection

New Product development

Narrow gap between the best performers and the rest in production processes:

Limited improvement possibilities in this areaMorgan & Liker- 2006

Important role of New Product development in defining customer value:

Much bigger impact on cost, quality and manufacturing lead-times than productionHoppmann-2009

The potential for strengthening the competitive advantage is much

higher in NPD than in other parts of the company

New Product development

Clark, fujimoto-1991

A process by which an organization transforms data on market opportunities and technical possibilities into information assets for commercial production

Ulrich- Eppinger- 2012

A set of sequenced activities implemented by a firm in order to develop an idea, design and commercialize a product

Lean Product Development

Lack of a single, accepted definition in research literature Ambiguity in definition of LPD and its differences with traditional NPD.

Overall agreement:

A system of engineering and work organization principles and techniques

First popularized by Toyota

Aim at shorter lead-times, reduced cost, and higher quality than traditional NPDLetens et al.-2011

Lean Product Development

LPD is more than just copying a set of principles or key characteristics Welo-2011

• Techniques

• Tools

• Processes

• Principles

• Culture

• Habits

• Behaviours

• Mentality

Lean Product Development

Fundamental differences between manufacturing and NPD:

The mere translation of lean manufacturing principles into PD settings does not necessarily equate to an effective lean PD process.Leon and Farris- 2011

ObjectiveProduct

PeopleProcess

Waste

Types of activity:

(Type 1) those that add value

(Type 2) those that do not add value but are necessary to enable value production (“necessary waste”)

(Type 3) those that do not add value and are unnecessary (“pure waste”)

Womack and Jones -2003

Waste

Value assessment of aerospace engineering activity(as % of charged hours) Assessment of activity on

aerospace engineering work packages (as % of actual hours) Combined value

assessment of a typical aerospace engineering job (% time)

McManus- 2004

Waste

1- Overproduction

2- Waiting

3- Transportation

4- Inappropriate processing

5- Unnecessary inventory

6- Unnecessary motion

7- Defects

Oppenheim- 2004

Value

Satisfying stakeholder's expectation

Manufacturing department

Recycling and service

End user

Value not limited to the outcome of the eliminating waste

Improving value by knowledge creation, innovation, creativity, competence and skills build-up, development of people, reuse and standardization.Belay-Welo-2013

Easily produce the product

Easy to disassemble and reuse

High functionality and usability

Existing approaches to LPD

Womack et al.- 1990

Major design techniques that differentiate a mass from a lean producer

A powerful project leader with a strong authority Teamwork Early and controlled communication Simultaneous development

Existing approaches to LPD

Karlsson-Ahlstrom- 1996

Elements of LPD

Supplier involvement Cross-functional teams Simultaneous engineering Integration of activities instead of co-ordination Strategic management Block-box engineering

Existing approaches to LPD

Liker-Morgan-2006

The Toyota Product development systema two-and-a-half year in-depth study of Toyota’s product development system

Khan et al. 2011

Core enablers (building blocks) of LPD

Research questions and objectives

Knowledge gap:

Unbalanced view on efficiency and effectiveness in lean implementation in new product development activities.

General Focus research question: How different is Lean implementation for knowledge-intensive and innovative environments such as new product development?

Main objective: To develop a system based on lean principles to improve the efficiency and effectiveness of new product development activities

Research questions and objectives

Research methodology

Research timetable

References

Belay, A.M., and  Welo, T., 2013. Lean Thinking in Product Development: Looking into Front-load Effects Using a System Dynamics Approach.  In: International Workshop of Advanced Manufacturing and Automation, Trondheim, Norway, 27 November 2013.

Clark, K.B., and Fujimoto, T., 1991.  Product development performance: Strategy, organization, and management in the world auto industry. First ed. Boston: Harvard Business School Press.

Hoppmann, J.,  Rebentisch, E.,  Dombrowski, U. and Zahn, T., 2011. A framework for organizing lean product development. EMJ - Engineering Management Journal, 23 (1), 3-15.

Karlsson, C., and Åhlström, P., 1996. The difficult path to lean product development. Journal of Product Innovation Management, 13 (4), 283-295.

Khan, M.S., Al-Ashaab, A., Doultsinou, A., Shehab, E., Ewers, P. and Sulowski, R., 2011. Set-based concurrent engineering process within the LeanPPD environment.  In: 18th ISPE International Conference on Concurrent Engineering, CE 2011, Boston, MA, 4 July 2011 through 8 July 2011. pp. 433-440.

Martínez León, H.C., and Farris, J.A., 2011. Lean Product Development Research: Current State and Future Directions. EMJ - Engineering Management Journal, 23 (1), 29-51.

McManus, H.L., 2013.  Product Development Value Stream Mapping (PDVSM) Manual Release 1.0. Boston, MA: MIT, Lean Aerospace Initiative.

Morgan, J.M., and Liker, J.K., 2006.  The Toyota product development system: integrating people, process, and technology. New York: Productivity Press.

Oppenheim, B.W., 2004. Lean product development flow. Systems Engineering, 7 (4), 352-376.

Ulrich, K.T., and Eppinger, S.D., 2012.  Product design and development. 5th ed. New York: McGraw-Hill.

Welo, T., 2011. On the application of lean principles in Product Development: a commentary on models and practices. International Journal of Product Development, 13 (4), 316-343.

Womack, J.P., and Jones, D.T., 2003.  Lean Thinking: Banish Waste And Create Wealth In Your Corporation. New York: Free Press.

Womack, J.P.,  Jones, D.T. and Roos, D., 1990.  The machine that Changed the World. 1st ed. New York: Simon and Schuster.