Lean Innovation: How to increase R&D productivity

Size: px

Start display at page:

Download "Lean Innovation: How to increase R&D productivity"

Dana Lawson
6 years ago
Views:

1 Lean Innovation: How to increase R&D productivity Dr. Stephan Krumm Davos, January 19 th, 2013 Dieser Bericht ist ausschließlich für Mitarbeiter des Klienten bestimmt. Die Verteilung, Zitierung und Vervielfältigung auch auszugsweise zum Zwecke der Weitergabe an Dritte ist nur mit vorheriger schriftlicher Zustimmung der Autoren gestattet. Die hier zusammengefassten Texte und Grafiken wurden von den Autoren im Rahmen einer Präsentation eingesetzt; sie stellen keine vollständige Dokumentation der Veranstaltung dar.

2 Content 1 Why do we need Lean Innovation? 2 The 12 Lean Innovation Principles Seite 1

3 Beware! More R&D Budget Is Not Always Better! - Automotive - Machine and Plant Equipment - Other Industries - Biotech and Pharmaceuticals 25 R&D Budget [% of Revenue] Operative Results [% of Revenue] n = 695 companies reference data: 2007 EU Industrial R&D Investment Scoreboard of the European Commission, October 2007 Ann.: Listing of all European companies with op. result -10%<x<20% in 2006 and with R&D-expenditures >3,25 Mio. and R&D-intensity 0<y<25% in 2005 Seite 2

4 The Right Product Architecture Is More Important Then Ever In Order To Meet Increasing Complexity And Future Trends Smart Grids Connectivity Megatrends Green Products Seite 3

5 And The Product Architecture Has To Meet The Requirements Of Individual Market Segments Market segments move fast: Related Branches:??? Highend Midend Lowend Low-lowend Many features; high functionality High degree of innovation Strong individualisation Basisc features less individualisation Reduced functionality lower price no individualisation Just-Enough Ultra low price Automotive Printing machines Machine tool industry White Goods Key Challenges: 1. How many platforms are needed? 2. How fast do we need them? Seite 4

6 Example: VW Defines Several Modulbaukaesten. More To Come... Antrieb Fahrwerk Ausstattung Elektrik A000 A00 A0 A B C D E A000 A00 A0 A B C D E Traditional Markets MLB Emerging Markets MQB NSF Source: VW Segments (Fahrzeugklassen) Seite 5

7 Starting Point for Lean Innovation Are the 5 Core Principles of Lean Management Customer Value Lean Innovation Creating value without waste Seite 6

8 Which Can Be Implemented with the Help of Basic Methods of Lean Management The implementation of Lean Thinking is based on well proven methods A3-Thinking Empowerment Customer Value Visual Management 5S Lean Innovation Gemba VSM Kaizen Standards Seite 7

9 Lean Innovation Is Based on a»translation«of Lean Management Principals The implementation of Lean Thinking is based on well proven methods Lean Innovation)* is the translation of Lean Principles into management of Integrated Product Development Customer Value )* Lean Innovation comprises the whole product lifecycle process from Product Idea through Start of Production to End of Life Seite 8

10 Examples For Waste in R&D Processes Seven wastes in production Seven wastes in R&D Some examples Overproduction Extra features Extra features that turn out to be unnecessary Fulfillment of request that won t be used within 3 months Inventory Work in process Partly completed requests Development results that won t be used within 3 months Information without use Extra processing Technical debt Changes of requirements during the project Re-learning lost knowledge, inappropriate technology / processes Transportation Handover Each handover leaves 50% of knowledge behind Information overflow; weak knowledge management Limited cross-training of people across different applications Waiting /queuing Delays, idle time Waiting for decisions, information, results, resource etc. Motion Ineffective activities Unplanned task switching, ineffective prioritization Ineffective meetings, unnecessary travel, poor tools Barriers in communication, superficial reviews Defects, rework Defects, rework Rework, corrections, external quality control Seite 9

11 Further Types of Waste in R&D Processes and Built Into The Product Lean Integrated Product Development Process Lean Product Waste in the innovation process Inaccurate requirement specification Moving targets and priorities Inadequate process standards Lack of required resources and competencies Unnecessary process iterations Delays on critical path Poor project synchronization Not using the employee s knowledge Systems that become too complex over time Waste of energy, water, pure air and light MS2 MS3 SOP Waste within the product causing waste in downstream processes: Insufficient customer focus / wasting your customer s time / losing customers Not enough product innovation Inadequate reuse Too many defects No design for manufacturing, cost, quality etc. (DFx) Seite 10

12 Content 1 Why do we need Lean Innovation? 2 The 12 Lean Innovation Principles Seite 11

13 The 12 Lean Innovation Principles Continuous Improvement of innovation productivity Release Engineering Synchronized changes Strategic Positioning based on dominant competencies Clear Prioritization of customer values and project objectives Innovation Controlling based on closed loop control Multi Project Coordination and takt oriented sequencing Data Consistency Single source of truth Value Stream Optimization based on process classification and standardization Change Program Roadmapping for products and technologies Product Architecture Design based on integrated product and production structures Product Range Optimization based on feature and variant trees Design Space Management based on design sets and degrees of freedom Seite 12

14 The 12 Lean Innovation Principles Strategic Positioning based on dominant competencies Clear Prioritization of customer values and project objectives Change Program Roadmapping for products and technologies Seite 13

"Strategic Positioning" Demands a Vision as

April 30 th, 2007 Steve Ballmer in USA Today

15 "Strategic Positioning" Demands a Vision as well as Accuracy and Backbone! April 30 th, 2007 Steve Ballmer in USA Today June 29 th, 2007 Market introduction Apple iphone July September 2007 Smartphone Marketshare USA QIII 2007 "There s no chance that the iphone is going to get any significant market share. No chance." Steve Ballmer CEO Microsoft Seite 14

Addressing the right customer needs ensures sustainable competitive advantage 1.200 Price changes after iphone market launch Nokia N97 iphone 3GS 16GB 1.

h 300 h operating system : Symbian S60 ios 3 Internal memory: 32 GB 16 GB Display resolution: 640 x 360 px 320 x 480 px Touch screen: resistive kapazitiver Camera Megapixel:

16 Addressing the right customer needs ensures sustainable competitive advantage Price changes after iphone market launch Nokia N97 iphone 3GS 16GB % 12 Monate Price < 500 : Area of strong competition 12 Monate -30% Product features Nokia iphone N97 3GS 16GB Battery time: 9,5 h 6,0 h Standby: 432 h 300 h operating system : Symbian S60 ios 3 Internal memory: 32 GB 16 GB Display resolution: 640 x 360 px 320 x 480 px Touch screen: resistive kapazitiver Camera Megapixel: 5,0 3,0 Camera Flasch: Dual-LED Blitz n.a. Video telefonie: ja nein QWERTZ- keypad: ja nein Dimensions: 117 x 55 x x 62 x 12 Weight: 150 g 135 g Source: heise.de, nokia.com, apple.com Seite 15

17 The 12 Lean Innovation Principles Strategic Positioning based on dominant competencies Clear Prioritization of customer values and project objectives Change Program Roadmapping for products and technologies Seite 16

Hilti Uses Customer Process Monitoring Extensively to Generate New Product Ideas (1/2) Customer Process Monitoring Hilti uses ergonomics and occupational science experts who work with the craftsmen

18 Hilti Uses Customer Process Monitoring Extensively to Generate New Product Ideas (1/2) Customer Process Monitoring Hilti uses ergonomics and occupational science experts who work with the craftsmen on construction sites and monitor: working methods, workflows, operating time cooperation and communication of the craftsmen occuring problems and mistakes, areas for improvement Source: Hilti AG Seite 17

Hilti Uses Customer Process Monitoring Extensively to Generate New Product Ideas (2/2) Customer Process Monitoring

50 5.00 5.50 6.00 sec 6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10.00 10.

Welding related activities amount to Breakdown 86% of the time (including hammer) Handle cable Average welding rate

19 Hilti Uses Customer Process Monitoring Extensively to Generate New Product Ideas (2/2) Customer Process Monitoring 500 Duration of Welds, Welder 0 Fix Deck - Phoenix Fastening Points sec % 0% 8% 0% 7% 3% 0% 1% 11% 8% 2% 2% 0% 0% 56% Puddle weld Skylight weld Hammer deck Walk during fastening Welding related activities amount to Breakdown 86% of the time (including hammer) Handle cable Average welding rate of 334 welds Recover per hour Refill rods Walk Rod was changed on average once Interruption every 11 welds Tidy/arrange Actual weld time was 2.6 seconds communicate An upright working position improves work ergonomics and speeds the workflow up Safety measures Idle Misc. carry / TNc, TNn / TT prep.ppt Source: Hilti AG Seite 18

20 The 12 Lean Innovation Principles Change Program Product Architecture Design based on integrated product and production structures Product Range Optimization based on feature and variant trees Design Space Management based on design sets and degrees of freedom Seite 19

Example: Through Standardised Geometrical Characteristics the Constituent Features of the

length Unified Standards for Engine Installation Position Standardized Position for Rear Axle

conditioner and Pedal mechanism Reducing combination of tilt angle and distance to mid of axle

21 Example: Through Standardised Geometrical Characteristics the Constituent Features of the Modular Product Architecture are defined Example for Constituent Features Standardized technique length Unified Standards for Engine Installation Position Standardized Position for Rear Axle Twist beam axle Driven multilink axle Standardized Position of Engine, Gear, Axle, Air conditioner and Pedal mechanism Reducing combination of tilt angle and distance to mid of axle from 36 to 2 Standardized interfaces for rear suspensions and Twist beam axle Source: Volkswagen Sachsen GmbH Seite 20

The product architecture development process (PADP) determines the product development processes In addition to the product development process a product independent product architecture development

22 The product architecture development process (PADP) determines the product development processes In addition to the product development process a product independent product architecture development process (PADP) needs to be established The PADP dominates the product development processes in terms of timing and structural specifications Product architecture Product A Product B Product architecture development process (PADP) Dev. Derivative A.1 Usage Derivative A.1 Dev. Derivative A.2 Usage Derivative A.2 Dev. Derivative A.3 Usage Derivative A.3 Dev. Derivative B.1 Usage Derivative B.1 Dev. Derivative B.2 Usage Derivative B.2 Dev. Derivative B.3 Usage Derivative B.3 t Dev. = Development Seite 21

23 The 12 Lean Innovation Principles Multi Project Coordination and takt oriented sequencing Change Program Data Consistency Single source of truth Value Stream Optimization based on process classification and standardization Seite 22

24 R&D Specific Value Stream Management Define Value Creation and Eliminate Waste in the R&D processes Lean Process How many prototypes do we need to? How about serviceability? Is DFx done well? Lean Product Are customers needs really covered in the requirements spec? Should we start with one solution path only? What about carry over parts and communality? How much over engineering is built into the product? The specific circumstances of product development complicate the detection of waste in the development process Seite 23

improvement 50 of cycle time 20% of orders 1-4 weeks waiting Unnecessary work Loss

25 Project Example: R&D Value Stream Optimization For Potential Efficiency Improvements Idle time Iteration loop Iteration loop Cycle time Rejection Potentials for improvement 50 of cycle time 20% of orders 1-4 weeks waiting Unnecessary work Loss of data Unplanned resources Missing information Missing information Changes by customer Seite 24

26 The 12 Lean Innovation Principles Multi Project Coordination and takt oriented sequencing Change Program Data Consistency Single source of truth Value Stream Optimization based on process classification and standardization Seite 25

27 Imagine, R&D Works Like a Symphonic Orchestra: The Interaction of The Artists Within a Mutual Takt Creates The Artwork! Source: Brunn (Aachener Sinfonieorchester) Seite 26

Short Daily Meetings Are Carried Out in The Project Room to Calibrate Tasks And Activities Within The Takt Visual management by means of a Project Room presenting all relevant data Synchroboard &

28 Short Daily Meetings Are Carried Out in The Project Room to Calibrate Tasks And Activities Within The Takt Visual management by means of a Project Room presenting all relevant data Synchroboard & ressource allocation All projets Project portfolio Project performance Risk Portfolio Specific project Project 1 Targets & organization Task & Andon boards Performance & cost tracking Project 3 Targets & organization Task & Andon boards Performance & cost tracking Specific project Project 2 Targets & organization Task & Andon boards Performance & cost tracking Seite 27

29 The 12 Lean Innovation Principles Continuous Improvement of innovation productivity Release Engineering Synchronized changes Innovation Controlling based on closed loop control Change Program Seite 28

30 The Implementation of Lean Innovation Is Based on a Five Level Degree of Maturity Model III. IV. V. Employees check and improve successfully the compliance of the principles and the implementation of the Lean Innovation principles is fixed as a standard Employees are constantly working and improving towards the Northstar The application of Lean Innovation is extended on innovation partners Lean managed A Northstar is formulated for R&D and communicated transparently The majority of the staff implements the Lean Innovation principles and methods The implementation of the principles is measured as a basis for further improvement at neuralgic points Lean organized Lean optimized A large part of the employees accepts the Lean Innovation-principles Lean Innovation-methods and processes are implemented predominantly, but not put into practice completely Regular improvement projects in terms of Lean Innovation support the diffusion I. II. Ad hoc Lean initiated The Lean Innovation-principles are well known in the company and masterminds fight for Lean Innovation An understanding of value and dissipation in innovation management exists Concrete guidelines are formulated for the R&D and communicated transparently Waste is not yet identified Not everyone knows the customer's value comprehension The Lean Innovation-principles are still unknown Seite 29

31 Lean Innovation: Decide About Your Own Way And Make it Happen Continuous Improvement of innovation productivity Release Engineering Synchronized changes Strategic Positioning based on dominant competencies Clear Prioritization of customer values and project objectives GOOD LUCK! Roadmapping for products and technologies Change Program Innovation Controlling based on closed loop control Multi Project Coordination and takt oriented sequencing Product Architecture Design based on integrated product and production structures Data Consistency Single source of truth Value Stream Optimization based on process classification and standardization Product Range Optimization based on feature and variant trees Design Space Management based on design sets and degrees of freedom Seite 30

INTRODUCTION 1. When manufacturing processes of products being examine through customer s perspective, we will be able to identify 2 types of processe

INTRODUCTION 1. When manufacturing processes of products being examine through customer s perspective, we will be able to identify 2 types of processes, the Value-Added and Non-Value Added. 2. The later