Syn Lean and Agile Innovation 1 © The Delos Partnership 2005 Lean and Agile Applying the ideas to...

Syn Lean and Agile Innovation

1 © The Delos Partnership 2005

Lean and AgileLean and Agile

Applying the ideas to the Design side



The Delos ModelThe Delos Model

VisionVision

StrategyStrategy

PrioritisationPrioritisation

InnovationInnovationDemandDemand

SupportSupport

SupplySupply



Impact of Innovation and Impact of Innovation and DesignDesign

T & P has a significant potential on an organisation’s Lean and Agility potential

• Complexity of product and process

• Cost

• Speed of design capability

• Customer responsiveness



Value Proposition - DesignValue Proposition - Design

StrategyStrategy

Sales and Marketing

Operations/

Supply Chain

Design/

Development

Operational Operational ExcellenceExcellence

Products that are functional and low cost

Products that can easily be made

Products that do not take long to develop

Customer Customer SolutionsSolutions

Products that meet the customers precise need

Products that have lots of variation

Intimate involvement of customer in design

Product Product LeadershipLeadership

Thinking out of the box

High and leading edge Technology

Novel designs with new materials and processes



Integrated Business Plan

Integration of InnovationIntegration of Innovation

Innovation Supply Chain



Variety is compoundVariety is compound

Tablet Family

BottleBottle CapCap LabelLabel CaseCase LeafletLeaflet

5 7 10 4 5

= _______variants ?



Pack Size

Can Height& Size

Actual Gravity Brew Analysis

Core High Gravity Brews

Variety Funnel - BrewingVariety Funnel - Brewing



Glass Process Bulb Form Tube Form Coil Fit

6 6 6 400

Variety funnel Television Variety funnel Television TubesTubes



5001505030

SalesUnit

Label Pack Formulation

Variety Funnel - Variety Funnel - AgrochemicalsAgrochemicals

Possible options = 30 X 50 X 150 = ???



Lean and Agile DesignLean and Agile Design

Lean Design – fewer parts; less variety• Reduce the number of labels• Make the cap always into a pourer• Reduce the number of pack variantsAgile Design – Build in uniqueness late into

process• Bulk packed product; labelled locally• Label added in Warehouse• Adjuvant sold separately for customer to mix



Mass customisationMass customisation

- Hewlett Packard - deskjet printers: power supply module, power cords & manual

mfg D.C.

Factory localisation

D.C.mfg

Distribution Centre localisation



Mass customisationMass customisation

- Hewlett Packard - deskjet printers: power supply module, power cords & manual

AI F&P.

Factory localisation

F&PAI

Distribution Centre localisation



Product rationalisationProduct rationalisation

Where should the future product focus be?Which products are losing the company

money?

cumulativeunit

productcontribution

100%

products ranked in order of contribution



Japanese approachJapanese approach

• 20 % of Products account for 200 % of the profit

• It is the remaining 80 % which account for the -100 % !!!!

• Therefore focus on the 20 % which add 80 % of the value to the customers or redesign the product!



Lambda Lead AI complexity - Actual 2003

-5

0

5

10

15

20

25

30

35

-5 0 5 10 15 20 25 30 35

# NSUs

# C

ou

ntr

ies

Gross Profit $ Complexity $

Karate 2.5 EC

Karate 5 EC

Icon 10 WP

Karate 10 CS FP

Karate 2.5 CS NFP

Karate 2.5 WGKarate 5 CS NFP

Karate 5 CS

Demand 10 CS

Warrior

K 25 CS

Icon 10 WP



2004 BUD Formulation Description - Lambda range UC Form. Sourcing Tons AI Budget Br DATE Budget GP Budget % Sales %Cum. % Margin %Cum.Code Type site 100% in 1000 $ in 1000 $ GP % Sales of total Margin

1 93% of KARATE ZEON 10 CS FP 1004551 CS Seneffe 50 55'159 50'823 92 22% 22% 26% 26%2 total Margin WARRIOR T 1008398 CS ST.Gab. 92 37'193 30'934 83 15% 36% 16% 42%

3 KARATE 2.5 EC 1003647 EC AEV 48 13'193 2006-8 7'044 53 5% 41% 4% 46%4 Above KARATE ZEON 25CS 1004278 CS Seneffe 57 12'273 2006-08 7'827 64 5% 46% 4% 50%5 hurdle rate KARATE 25CS (RED DOT) 1008421 CS ST.Gab. 68 11'985 9'064 76 5% 51% 5% 55%6 5 M$ KARATE 5 EC 106225 EC AEV 59 11'964 6'110 51 5% 55% 3% 58%7 ICON / DEMAND 10 CS 1008640 CS Seneffe 16 11'940 9'519 80 5% 60% 5% 63%8 17 Products KARATE ZEON 2.5CS NFP 1004552 CS Seneffe 21 10'458 2006-08 7'180 69 4% 64% 4% 67%9 KARATE ZEON 5CS NFP 1004539 CS Seneffe 58 10'406 7'232 69 4% 68% 4% 71%

10 KARATE 2.5 WG 1003685 WG STI 11 10'160 2'007 7'211 71 4% 72% 4% 74%11 KARATE ZEON 5 CS FP 1004538 CS Seneffe 20 8'982 6'717 75 4% 76% 3% 78%12 IMPASSE BARRIER FILM 146483 MISC USA Toll NS 8'973 5'075 57 4% 79% 3% 80%13 ICON 10 WP 1004498 WP Paulinia 7 7'992 2'006 5'136 64 3% 82% 3% 83%14 KARATE 50 CS 155036 CS Paulinia 30 7'407 4'786 65 3% 85% 2% 86%15 KARATE 5 WG 1003686 WG STI 9 7'025 5'944 85 3% 88% 3% 89%16 LAMBDA CYHALOTHRIN TECH 1008304 AI Hudersfield 9 5'672 4'942 87 2% 90% 3% 91%17 KARATE K 1003682 EC AEV 2 4'962 2'006 2'538 51 2% 92% 1% 93%

18 Below ICON / DEMAND 2.5 CS 1008641 CS Seneffe 5 4'669 2'963 63 2% 94% 2% 94%19 hurdle rate KARATE 5 EC 1008219 EC AEV 5 4'445 2'005 3'840 86 2% 96% 2% 96%20 5M$ KUNG FU 2.5 EW 166052 EW Nantong 12 3'281 2'275 69 1% 97% 1% 97%21 PP321 1004661 AI Hudersfield NS 1'683 1'353 80 1% 98% 1% 97%22 Below CYHALON-WP KG BULK 1005329 WP Japan Toll NS 1'288 2'008 1'159 90 1% 98% 1% 98%23 hurdle rate KARATE K/PIRIM K 1003642 EC AEV NS 1'013 2'006 670 66 0% 99% 0.35% 97%24 2.5 M$ JURENG 147750 EC Iksan NS 879 2006 513 58 0% 99% 0.27% 97%25 JUREONG 117186 WP Iksan NS 625 2'006 477 76 0% 99% 0.25% 98%26 12 Products KARATE 2 ULV 1004485 ULV AEV NS 580 280 48 0% 99% 0.15% 98%27 PP321 TC 40% (RED) 1004513 EC AEV NS 450 2'004 274 61 0% 100% 0.14% 98%28 KARATE 7% 150761 EC MISC NS 301 2'003 250 83 0% 100% 0.13% 98%29 KARATE 5 EC FR 1003687 EC AEV NS 283 2'004 218 77 0% 100% 0.11% 98%30 KARATE DIMETHOATE 140801 EC Luxan NS 228 2'004 137 60 0% 100% 0.07% 98%31 KARATE 0.8 ULV 1003657 ULV AEV NS 75 2'003 2 3 0% 100% 0.00% 98%32 ICON 10 WP 1003679 WP Gummidipoo NS 26 2'006 19 75 0% 100% 0.01% 98%

LAMBDA-CYHALOTHRIN 255'570 192'514 75



Design impactDesign impact

• Lean and Agile Design should look to build in :– Commonality of components to minimise

product differentiation– Uniqueness as late as possible into the

manufacturing/distribution process– Product/components that are easily

available in short lead times



Lean and Agile needs Lean and Agile needs integrationintegration

Sales and Marketing

Supply Chain and Operations

Development



WorkshopWorkshop

What changes could be made to the What changes could be made to the design [s] of the current product range design [s] of the current product range

[s] which would simplify the offer to [s] which would simplify the offer to customers without taking anyway any of customers without taking anyway any of

the value proposition to them ?the value proposition to them ?

What changes could be made to the What changes could be made to the design [s] of the current product range design [s] of the current product range

[s] which would simplify the offer to [s] which would simplify the offer to customers without taking anyway any of customers without taking anyway any of

the value proposition to them ?the value proposition to them ?

Syn Lean and Agile Innovation 1 © The Delos Partnership 2005 Lean and Agile Applying the ideas to...

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Transcript of Syn Lean and Agile Innovation 1 © The Delos Partnership 2005 Lean and Agile Applying the ideas to...