《Integrating The Lean Enterprise》Lean Engineering Product Development

Lean Engineering Product Development Professor Debbie Nightingale September 25, 2002

Lean Engineering Product Development Professor Debbie Nightingale September 25, 2002

Lean Engineering Learning Points Lean applies to engineering ngineering requires a process Different from manufacturing Lean engineering process eliminates waste and improves cycle time Make sequential processes flow seamlessly Managing iteration to avoid unplanned rework Efficient and standard process enables better engIneering Integrated Product and Process development(IPPD)is critical for lean enterprise Deborah Nightingale, MIT@ 2002

2 Deborah Nightingale, MIT © 2002 Lean Engineering Learning Points ƒ Lean applies to engineering ƒ Engineering requires a process ƒ Different from manufacturing ƒ Lean engineering process eliminates waste and improves cycle time ƒ Make sequential processes flow seamlessly ƒ Managing iteration to avoid unplanned rework ƒ Efficient and standard process enables better engineering ƒ Integrated Product and Process development (IPPD) is critical for lean enterprise

Process is Important in Engineering For this discussion, Engineering"is defined as preliminary and detailed design and analysis, process design, and validation and verification Phases of Product Development Most relevant to processes in these phases Concept System-Level Detail Testing and Production Development Design Design Refinement p-Up Ramp From Ulrich& Eppinger, Product Design and Development, 1995 Deborah Nightingale, MIT@ 2002

3 Deborah Nightingale, MIT © 2002 Process is Important in Engineering ƒ For this discussion, “Engineering” is defined as preliminary and detailed design and analysis, process design, and validation and verification Concept Development System-Level Design Detail Design Testing and Refinement Production Ramp-Up From Ulrich & Eppinger, Product Design and Development, 1995 Phases of Product Development Most relevant to processes in these phases

Lean Engineering Requires a Process Invention is 1% inspiration and 99%perspiration"-TA Edison Engineering processes often poorly Inspiration defined, loosely followed LAl Case Studies) Value Pure Added 40% of design effort“ pure waste”29% Waste “ necessary waste (LAl Workshop Survey) Necessary Waste 30% of design charged time setup and waiting” (Aero and Auto Industry Survey Product development is 1% inspiration, 30% perspiration, and 69% frustration"-HL McManus Deborah Nightingale, MIT@ 2002

4 Deborah Nightingale, MIT © 2002 Lean Engineering Requires a Process ƒ Engineering processes often poorly defined, loosely followed (LAI Case Studies) ƒ 40% of design effort “pure waste” 29% “necessary waste” (LAI Workshop Survey) ƒ 30% of design charged time “setup and waiting” (Aero and Auto Industry Survey ) Pure Waste Value Added Necessary Waste Inspiration ƒ “Invention is 1% inspiration and 99% perspiration” - TA Edison ƒ “Product development is 1% inspiration, 30% perspiration, and 69% frustration” - HL McManus

Application of Lean to Engineering Traditional womack and jones Precisely specify value by specific produc Identify the valy stre im for each product Make value flow without interruptions Let the customer value from the producer Pursue perfecti Understand Eliminate Waste Radical Change Process Lean Deborah Nightingale, MIT@ 2002

5 Deborah Nightingale, MIT © 2002 Application of Lean to Engineering - Traditional Womack and Jones Understand Process Eliminate Waste Radical Change ƒ Precisely specify value by specific product ƒ Identify the value stream for each product ƒ Make value flow without interruptions ƒ Let the customer pull value from the producer ƒ Pursue perfection

Engineering Manufacturing Have Similarities and Differences Manufacturing Engineering Define Value Visible at each step, Harder to see defined goal emergent goals Identify Value Parts and nformation Stream material knowledge Make process Iterations are waste Iterations often flow beneficial Customer pull Driven by Takt time Driven by needs of enterprise Perfection Process repeatable Process enables without errors innovation and cuts cycle time Deborah Nightingale, MIT@ 2002 Source: Lean Aerospace Initiative

6 Deborah Nightingale, MIT © 2002 Process enables innovation and cuts cycle time Process repeatable without errors Perfection Driven by needs of enterprise Customer pull Driven by Takt time Iterations often beneficial Make process Iterations are waste flow Information & knowledge Parts and material Identify Value Stream Harder to see, emergent goals Visible at each step, defined goal Define Value Manufacturing Engineering Engineering & Manufacturing Have Similarities and Differences Source: Lean Aerospace Initiative

Engineering value is emergent Activities accumulate information eliminate risk, use resources Risk Process InfoOutcome Value Realized Time Adapted From Chase, "Value Creation in the Product Development Process, 2001 Deborah Nightingale, MIT@ 2002

7 Deborah Nightingale, MIT © 2002 Engineering Value is Emergent Adapted From Chase, “Value Creation in the Product Development Process”, 2001. Time Value Risk Info Activities accumulate information, eliminate risk, use resources Value Realized Process Outcome

Engineering Requires the Seamless Flow of Information and Knowledge Information can be an IT problem -solutions 25 No Database exist but are not Commonality easy o8 Knowledge is a bome 10 people problem requires Best practice communication- this 0 is hard! R&D Concept Concept Prelim. Detail Fab&test Sales Def. Asses Design Design o&S Program Phase From Hoult et al, "Cost Awareness in Design: The Role of Data Commonality, 1995 Deborah Nightingale, MIT@ 2002

8 Deborah Nightingale, MIT © 2002 Program Phase % of Programs Over Cost From Hoult et al., “Cost Awareness in Design: The Role of Data Commonality”, 1995. No Database Commonality Some Best Practice Engineering Requires the Seamless Flow of Information and Knowledge 0 5 10 15 20 25 30 35 R&D Concept Def. Concept Asses Prelim. Design Detail Design Fab&test Sales O&S ƒ Information can be an IT problem - solutions exist, but are not easy ƒ Knowledge is a people problem - requires communication - this is hard!

Communication Key to Flow and Pull Flow cannot be achieved until engineering processes move and communicate without errors or waiting 62% of tasks idle at any given time Task (detailed member company study) Task( Active 50-90% task idle time found Idle in Kaizen-type events(case studies Pull achieved when engineering cycle times are as fast or faster than the customer's need or decision cycle Deborah Nightingale, MIT@ 2002

9 Deborah Nightingale, MIT © 2002 Communication Key to Flow and Pull ƒ Flow cannot be achieved until engineering processes move and communicate without errors or waiting ƒ 62% of tasks idle at any given time (detailed member company study) ƒ 50-90% task idle time found in Kaizen-type events (case studies) Task Task Active Idle ƒ Pull achieved when engineering cycle times are as fast or faster than the customer’s need or decision cycle

Co-Location Improves Integration Scope: Class //, ECP Supplemental Production Improvements and Make-It- Work Changes Initiated by production Requests Value stream simplified, made sequential/concurrent Single-piece flow implemented in co located"Engineering cell Priority access to resources 849 BTP packages from 7/7/99 to 1/17100 Category Reduction Cycle-Time 75% Process Steps 40% Number of handoffs 750 75 Travel Distance 90% Deborah Nightingale, MIT @2002 Source: Hugh McManus, Product Development Focus Team LAI-MIT

10 Deborah Nightingale, MIT © 2002 Category Category % Reduction % Reduction Cycle-Time Process Steps Number of Handoffs Travel Distance 75% 40% 75% 90% ƒ Scope: Class II , ECP Supplemental, Production Improvements, and Make-It￾Work Changes Initiated by Production Requests ƒ Value stream simplified, made sequential/concurrent ƒ Single-piece flow implemented in co￾located “Engineering cell” ƒ Priority access to resources 849 BTP packages from 7/7/99 to 1/17/00 Source: Hugh McManus, Product Development Focus Team LAI - MIT Co-Location Improves Integration