Lean Product Development

Tom Villiers

Companies have embraced lean concepts and supply chain systems in order to drive down product costs and improve supply chain performance. Lean thinking concentrates on eliminating waste in the three value streams of concept to production launch, raw materials to finished product, and customer order to delivery. We have found that much of the unnecessary waste in manufacturing, logistics, and administrative processes is actually induced by poor designs committed to during the product development process – the concept to production launch value stream.

The Impact of Poor Designs

The Institute for Lean Design characterizes the waste resulting from poor designs as “evil ings” – excessive training, inspecting, and verifying. The challenge for an effective concept to production launch value stream is to design products that can be manufactured and assembled correctly the first time they move into production.

My definition of a poor design is where the product is overly complex and could easily be assembled incorrectly. A product with a poor design will require overly detailed work instructions, extensive operator training, and often have many inspection points to insure that the production process is tightly controlled. Product engineers do not purposely develop poor designs. Instead, the traditional product development process is not tightly linked to internal customers such as manufacturing or outside customers such as contract manufacturers.

A Solution through Collaboration

The solution is to leverage multi-disciplined and collaborative new product development teams at the concept stage for any new product. These teams should have representation from all the major disciplines within the extended value stream. Active participation from customers, marketing, sales, supply chain management, manufacturing, purchasing, and suppliers will drive the following lean behaviors:

·        Maximize the use of common materials, parts, and platforms

·        Minimize the investment in product specific capital equipment and tooling

·        Leverage design simplification and standardized processes

·        Improve the utilization of shared capital equipment and modular designs

·        Support a mass customization strategy

·        Reduce quality defects, rework, scrap, and engineering changes

·        Minimize field service failures and reduce costs of maintenance and repair

Success at Boeing

Many high performance organizations have adopted lean principles to develop higher quality products at a lower cost and do it in half the time that was required only a few years ago. For example, Boeing adopted lean product development concepts in the design of three major assemblies for the C-17 Globemaster III Airlifter:

1.      The new horizontal stabilizer has 90% fewer parts, is 20% lighter, requires 70% fewer tools, and costs 50% less to produce.

2.      The redesigned main landing gear pod has 45% fewer parts and can be installed in 80% less time with 90% fewer defects.

3.      The cargo door jamb assembly was redesigned to require 600 fewer assembly hours, eliminate four crane moves, and remove five critical path span days.

Summary

Much of the waste in manufacturing, logistics, and administrative processes is actually induced by poor designs committed to during the product development process. Applying lean principles to the concept to production launch value stream has led to products with fewer parts, higher quality, lower overall costs, reduced number of engineering changes, ease of manufacturability, and reduced overall field support costs. The net result is higher customer satisfaction and more profitability for organizations that embrace lean product development concepts.

To learn more about lean product development, contact Tom Villiers at: tvilliers@emailta.com