POWERING PRODUCT DEVELOPMENT AT THE GOODYEAR TIRE & RUBBER COMPANY. NORBERT MAJERUS Foreword by James Morgan and Durward Sobek
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1 LEAN-DRiVEN INNOVATION POWERING PRODUCT DEVELOPMENT AT THE GOODYEAR TIRE & RUBBER COMPANY NORBERT MAJERUS Foreword by James Morgan and Durward Sobek CRC Press Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an informa business A PRODUCTIVITY PRESS BOOK
2 Contents Foreword Acknowledgments Author Introduction xiii xvii xxi xxiii 1 Goodyear Today: Lean Product Development 1 Goodyear Results from Lean Product Development 1 Lean R&D Helps Develop Profitable Value Streams 10 This Lean "Stuff" Really Works 13 Goodyear's Brief History of Lean Product Development 14 Lean Is a Lot of Work 22 Lean Principles 25 Notes 27 2 Success to Survival to a Foundation for Lean 29 The Golden Age of Tire Technology 29 Early Building Blocks for Lean 36 Early Project Management and Project Teams 36 "Real" Project Teams 37 Knowledge Management 38 Why Knowledge Management? 40 Knowledge Assessment before Experiment 42 Knowledge in a Usable Form Modeling and Design Tools 43 Sharing/Not Sharing Knowledge 47 Knowledge versus Capability 48 Capturing Knowledge Using Hansei 48 Preserving Knowledge 50 Encouraging the Use of Knowledge 51 vii
3 viii Contents Use of Product Standards 58 Knowledge Management Office 60 Stage Gates and the Product Creation Process 61 Technology Creation Process 67 ICP and BMI 69 New Business Objectives 74 Tire Modeling 74 Renewed Focus on Customer 76 TQC 76 ISO 78 Six Sigma and Design for Six Sigma 78 Notes 79 3 The Beginning of a Lean Process 81 The First Kaikaku Eroding Profits at Goodyear 81 Change Management 84 Changes for the Worse 96 Policemen, Ambulances, and the Downward Spiral 99 Outside Help Does Not Help Out Enough 101 Matrix and Project Management 103 New Approach to R&D Project Management 105 Sponsor 107 Project Charter 107 Project Goals 108 Risk Management 109 Lean Firsts at Goodyear 110 Crusaders, a White Knight, and a Map 111 Our First Value-Stream Map 113 Lean 101 Training 120 Herbie Gets Help 126 The First Lean Process 128 Face to Face with Functional Optimization 133 Notes Finding and Removing Waste from Product Development 139 Focus on the Customer 139 What Do Customers Value? 144 External Customers 146 Internal Customers 150 Creating R&D Value 152
4 Contents ix Value and Waste 154 Waste Not, Want Not 159 Muda, Muri, and Mura 179 Waste Removal Gets Underway at Goodyear 182 Notes Making New-Product Value Flow 189 Break Down Large Projects into Quick Learning Cycles 189 Early Attempts at Visual Flanning 195 Finding Our Bottleneck Herbie Meets Herbie 196 The Kaikaku We Needed 200 Exploring Pull and Flow Concepts 206 From Rope to Kanban 206 From Variable Demand to Leveled Operation 213 Cadence/Takt 215 Standard Work and Flexible Resources 220 Cycle Time and Little's Law 224 Multitasking 229 Late Start 232 The Turning Point 235 R&D Lean Process Metrics 235 On-Time Delivery and the Law of Utilization 236 The Critical Path 242 Overlapping Activities 244 Other Lean R&D Tools That Help Flow and Speed 247 The Hidden Factory 249 Fast Is Better than Slow 254 Create a Kaikaku 257 Pit Crew Tries to Accelerate Speed 259 Notes Lean and Innovation 265 Dispelling Lean Innovation Myths 265 Discovery of Lean Tools in the Innovation Creation Process 271 It Takes More than One Process 275 Execution Phase 277 Kentou Phase 278 Create Capacity and Resources for Innovation 281 Fund the Innovation Space 283 Manage Innovation Talent and Serial Innovators 284
5 x Contents Add Room for Failure 289 Standardize Innovation 290 Manage Incoming Work 290 Manage Work Entering the Product Creation Process 296 Cost of Delay (COD) 297 Manage Work Coming into Technology Creation Process 299 Assess Incoming Work into TCP 301 Manage the Innovation Process 311 Observe the Customer 311 Manage the Design Space 312 Keep All Options Open as Long as Possible 315 Concurrent Engineering 317 Set-Based Experiments versus Iterations 320 Quick Learning Cycles, Serum, and Sprints 323 Avoid Lean Innovation Killers 328 Not Making Good Use of Standards 329 Limited Tolerance for Good Variability 330 Lack of Tolerance and Empowerment 330 Counterproductive Metrics and Targets 331 Cutting Corners Does Not Increase Speed 334 More Innovation than Ever Before 334 Goodyear Innovation Awards 335 Notes Operating the Lean Product Development Factory 339 From Lean Initiative to Lean Function 339 Get the Process Right and Results Will Follow 342 Lean Support Accounting for Value 344 Responsibility for Quality 345 The End of the Herbie Story Managing Purpose, Process, and People 348 Lean Purpose 348 Hoshin Kanri 348 Developing Customer Value and Capability 353 Global Goodyear 355 Global Innovation Centers 356 Global Product Platforms 357 One Goodyear 359 Lean Process 360
6 Contents xi Start with What You Can See 360 Make Visible What You Cannot See to Detect Process Problems 363 Visual Flanning 367 Metrics 371 Collaterals 378 Managing Variability 380 No Problem Is Big Problem 383 Find Problems 383 Fix Problems 385 Lean People 393 Engineers 393 Project Managers (aka "Chief Engineers" at Toyota) 398 Teams of Empowered Experts 401 Lean Management and Leadership 407 Huddles 410 Design Reviews 411 Gemba Walks 412 Respect 415 Accountability 417 Leader Standard Work 417 Humble Servant 419 Champions 419 Support 420 Skills 421 Trainer and Educator 421 Courage, Perseverance, and Patience 421 Lean Suppliers 423 After Taking Care of the Business, It Is OK to Be Selfish 424 Lean Expectations and Endurance 427 Notes Lean Never Ends 435 Lean Courage 435 Get Started 438 Notes 441 Index 443
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