1. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 1 Lean, Integrated Product & Process Development Brent Wahba March 30, 2010 brentwahba@strategyscienceinc.com www.strategyscienceinc.com (585) 315-7051

2. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 2 If only we could develop better, easier to make products in half the time…with much less stress!!! Summary I can help you, but you will have to LEARN to THINK & ACT DIFFERENTLY! Oh thank you Lean Product Development Consulting Man! You’ve saved the day AGAIN!!!

3. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 3 Why Focus on Product Development? < 20% Of new products achieve their commercial objectives Only 1 in 3,000 ideas becomes a commercial success

4. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 4  1 month delay = 10% gross profit loss (average) (Sopheon)  12 Month delay = 50% revenue loss in slow markets, 90% in fast markets (IBS) Introduction Growth Maturity Decline Time  Units, Revenue, or Profit  Lost Units, Revenue, or Profit Total Units, Revenue, or Profit Optimal Entry Late Entry Why Focus on Product Development? Time to Market

5. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 5 Accounting Cost vs. Ability to Change Cost: Are We Working on the Wrong End?

6. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 6 What % of your Product Development time is typically “Value-Added?” Why Focus on Product Development?

7. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 7 Why Focus on Product Development?

8. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 8 What Would be the Impact of*: 75% Fewer engineers to design a car? 75% Less Production Scrap? Knowing which 5 – 7 criteria customers buy based on? 50% Less development lead time, 30% lower total cost, with 25% fewer resources? > 75% Commercial successes? 95 % Less prototype lead time? *Your results may vary

9. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 9 “You can’t solve today’s problems at the same level of thinking you were at when you created them.” Albert Einstein, Lean Thinker:

10. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 10 Definition: Value Streams 2000 MixFormGlazeFirePack II II I AAA Ceramic Powder Mug-O-Rama Sales Production Control P/T = 30 min L/T = 1200 min %C&A = 95% P/T = 1 min L/T = 250 min %C&A = 99% P/T = 1 min L/T = 250 min %C&A = 65% P/T = 960 min L/T = 1080 min %C&A = 85% P/T = 1 min L/T = 180 min %C&A = 65% P/T = 15 min L/T = 600 min %C&A = 95% P/T = 5 min L/T = 120 min %C&A = 98% Acme Mug Company 1 Order / Day Phone 2 P.O. / Week Fax 2500 Per day 27 Styles 99.7% Defect-free 1 Shipment / Week 1 Shipment / Day 1 FIFO 1 1 500 Phone Production Authorization Job Packet 2 Coffee In

11. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 11 Companies are Really Quite Simple… Product Development  Strategy & Marketing  R&D  Design  Supplier Selection  Process Development  Value Stream Design  Tooling Implementation  Test and Validation  Continuous Improvement Make / Deliver Operations  Sales & Marketing  Manufacturing  Supply Chain  Distribution  Service  Continuous Improvement “Product Development”: Creating Production Value Streams “Make / Deliver” Operations: Operating Production Value Streams Customers

12. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 12 Simple, Standardized, Efficient, Robust, Development Process Product Development Customer Needs  Problems to solve  What customers value  What they will pay for  ”Voice of the Customer” Competitive, profitable, capable, optimized: Product Definition, Service Definition, Process Definition & Production Value Streams Organizational Needs  Strategy, growth, profit  Standardized work  Internal requirements  Regulatory requirements

13. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 13 Lean is Ancient…and Often Misunderstood Venetian Arsenal Standardization, Quality 1320 Honorē Blanc Interchangeable Parts 1780 Frederick Taylor Scientific Management 1911 Meat Packing (Dis)assembly Line 1867 Ransom Olds 1 st Auto Assembly Line 1901 Ford, Highland Park Plant Linked & Paced Assembly 1913 Sakichi Toyoda, Taiiichi Ohno JIT, Defect Prevention 1920 - 1990 WWII Takt Time, TWI 1940s Eliyahu Goldratt Constraints, Systems 1984 Deming PDCA, People, Quality 1950s Scientific Method Egypt, Socrates, Bacon, Galileo 1600 BC – 1600 AD 1991 Today

14. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 14 “Delivering the most customer value while consuming the fewest resources”  Customer focus  Respect & leverage our people  Constant reuse, learning, problem solving  → Efficiency, effectiveness, prosperity Lean

15. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 15 Project Management There really is no common definition… What is Lean Product Development? Lean Product Development (LPD) Design For Six Sigma (DFSS) Systems Engineering (SE) Agile, Scrum, XP

16. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 16 Fake Lean Waste Reduction Potential Lean Product Development Paths Which is best?  What problem(s) are you solving?  Do you want to change process and / or culture? Lean Manufacturing / “Design Factory” Design Tools Queuing Theory / Flow Project Management Modified 6 Sigma / Problem Solving Al Ward Toyota Systems Engineering / Software Methods Organic Growth Model

17. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 17 Key Lean Product Development Themes  Development is not a deterministic process  The output of development is reusable knowledge: –How to satisfy customers –How to perform work efficiently and effectively –Validated, lean, capable production value streams  Small batch sizes: –Knowledge, experiments, design elements  Cadence of small, fast learning cycles

18. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 18  Pull systems: –Knowledge, customer-driven milestones  Distributed project management  Visual management  Systems Engineering framework  Explore alternatives –Increase learning –Manage high risk / high reward alternatives Key Lean Product Development Themes

19. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 19  Integrating events instead of quality checks  Late concept selection with more knowledge  Managing organizational capacity versus demand  Project teams “own the business”  Team leadership, team design, supplier integration  Simple technology to fit team needs and processes Key Lean Product Development Themes

20. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 20 Organic Growth Model: Every Organizational Level Has Problems to Solve Strategies Business Objectives Financial Performance Goals Budgets Operations Schedules Projects Assignments Rates Quality Standards Executives Managers Teams & Individuals A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D A P C D Source (modified): Lean Transformations Group, LLC Grasp the Situation “Whats”, Resources, Support “Hows”, Performance Adjust Plan Check Do P D C A Learning / Problem Solving Cycle

21. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 21 Organic Growth Model of Lean Development Managing Work Customer Needs Lean Product Development System Preparing for Lean Production LPD System Design & Continuous Improvement  Projects  Reuse  Learn first  Experiments  Failures  Pull  Small batch  Prioritized   Overburden  Quality @ source  Visual  Project management process  Team-owned  Solution emerges from experiments  Value stream mapping  A3 Problem solving  Simple tools  Integration & reflection  Product Design  Process design  Value stream design  Production validation  Production handoff  End customers  Production  Business P D C A Fast Learning Cycles Grasp the situation, Create pull for change

22. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 22 Customer Needs: Untested Market Hypotheses?

23. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 23 Brent & Patty’s Car-Buying Journey: Learning and Decision Loops Past brand and dealership experience Patty’s car needs service, “getting old” News stories of great rebates & deals What models? Check ads Online research, narrow consideration set Check ads, decide potential dealers Test drive, form / verify opinions Biased analysis, car selected Compare dealer prices, assess honesty Consider image impact where Patty works Investigate pricing and discounts Negotiate deal, purchase Pick up car, quality items not fixed Bad service / bad salesman experience Bad service experience, complaints

24. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 24 Customer Journey (End customers, influencers, channels…) Linking to the Customer Journey: Integrating Constant Learning Basic R&D Specific R&D Product / Process Development Value Stream Implement Start-UpProduction Service / Help Strategic Planning Market Research Product Management Pricing / Placement / Promotion SellingFeedback Service / Help Feedback Product Development Make / Deliver Inbound Marketing, Sales, Outbound Marketing, Service… What Customers Need What We Can Do

25. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 25 Call out requirement used for comparison Use Visual management to highlight gaps Market, Customer, Program… Capturing & Communicating Customer Needs: Value Proposition Example What are the significant attributes for customer buy decisions?

26. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 26 And Some Needs are Better Left Un-Served… News in Brief Fork Manufacturer Introduces Fifth Tine To Accommodate Growing American Mouthfuls February 17, 2010 | ISSUE 4607 EVANSVILLE, IN—In an effort to keep pace with the rapid growth of American mouthfuls, flatware manufacturer KitchenMaster announced yesterday the addition of a fifth tine to its line of dinner forks. "These days, a traditional four-tined fork is just not enough to handle the quantities of food people shove down their throats," said company spokesman Ken Krimstein, holding up a fork supporting six separate tortellini, two turkey sausages, and some mashed potatoes. "To stay relevant to our customer base and bring back some of those who have given up on using utensils entirely, this was an adjustment we just had to make." Krimstein added that the augmented forks would soon be followed by 25 percent deeper spoons and 3-gallon gravy boats. Source: The Onion

27. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 27 Lean Product Development System Design: Value Stream Mapping Update Concept Review Data Study Mfg. Cost Mfg. Concept Study Mfg. Manufacturing Review Data Quote Suppliers Select Suppliers Study Supply Base Buyer Purchasing / Supply Chain Update Concept Review Data Study Investment Tooling Update Concept Review Data Study Process Concept Study Process Manufacturing Engineering Test Concept Test Build Concept Prototype Update Concept Review Data Design Concept Study Design Product Engineering Study Business Case Prepare Quote Finance Trigger Project ProspectSales Select Markets Marketing Create Strategic Plan Planning Commercial Review / Approve Design Review / Approve Quote Review Proposal Customer Higher level / less detail than manufacturing mapping Current state: Customer value, Quality & rework, Delays & interruptions, Knowledge growth, Biases / assumptions, Prioritize problems Future state: All customer needs, Quality at handoffs, Existing solutions, Solution experiments

28. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 28 “If HP knew what HP knew, we would be 3 times as profitable.” Lou Platt, Former CEO, Hewlett-Packard Fast Learning Cycles

29. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 29 Why Learning First Works Common causes of failure / rework:  Resources not available  Requirements change (or become known)  Validation failure or does not meet updated customer requirements  Product and process are incompatible / does not meet internal requirements  Project does not meet commercial requirements  No low risk back-up plan Concept #1 Concept #2 Concept #3 Concept #4 Design Solution Selected Design Development Production Perceived Customer Requirements Process Development Process Solution Selected Typical Point-Based Product Development Rework

30. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 30 Sub-System Mapping the Design / Process / Customer Space Define Narrowing Criteria Concept Narrowing And Integrating Final Definition & Validation Concept #1 Concept #2 Concept #3 Concept #4 Concept #1 Concept #2 Concept #3 Concept #4 Sub-System A Sub-System B  Customer  Technology  Manufacturing  Cost  Quality  Suppliers #1 #2 #3 #4 #1 #2 #3 # 2 & # 3 # 4 # 1 # 2 Final Concept Choose optimal intersection of sub-systems  Customer  Technology  Manufacturing  Cost  Quality  Suppliers Learning First + Controlled Narrowing

31. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 31 Concept Narrowing While:  Increasing Knowledge  Increasing Detail & Functionality  Increasing Optimization & Robustness  Increasing Quality / Reducing Risk Workload Leveled Learning First + Controlled Narrowing Learning Cycle Final Design, Process, & Value Stream in Production Outline System Structure Mapping the Design / Process / Customer Space Learning, Narrowing, & Integrating Detailed Design, Process, Value Stream, Validation Fast, Standardized, No Surprises No Rework – Only Production Continuous Improvement

32. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 32 Linked Learning Cycles Leads to More Useful Knowledge Customer Needs Strategy Internal & Partner Capabilities Product Development Process A P C D

33. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 33 Swiss Federal Institute of Technology study of the causes of catastrophic structural failure: 1) Insufficient knowledge........................................... 36% 2) Underestimation of influence................................. 16% 3) Ignorance, carelessness, negligence.................... 14% 4) Forgetfulness, error............................................... 13% 5) Relying upon others without sufficient control........ 9% 6) Objectively unknown situation................................ 7% 7) Imprecise definition of responsibilities.................... 1% 8) Choice of bad quality.............................................. 1% 9) Other....................................................................... 3% Learning Through Failures Knowledge Management Issues Product Development Process Issues

34. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 34 Managing Work: Common Project Management Evolution 1.Under-defined, wasteful, inadequate development process 2.“Standardized” statements of work by organizational function 3.Gates / quality checks 4.Training 5.Major quality reviews 6.Automation 7.Training 8.Kaizen workshop 9.Training 10.New methodology 11.etc…  Every change implies a different process. Why?  What problem is each step trying to solve? –What is the real root cause?

35. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 35  Projects are the deployment of a strategy  Projects are all about creating and applying useful knowledge »What do we need to do? »What do we need to know to do it? »By when, by whom, and how?  Who is the customer of the project management process itself? Lean Project Management Continuous Improvement Product Development Value Stream Implementation

36. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 36 No box-checking allowed: 1.What is the product and / or service? 2.What are the delivery and service value streams? 3.Does it meet the customers’ needs? 4.Will it have acceptable quality at every customer touch point? 5.Does it fit our strategy? 6.Does it represent an acceptable investment of $s and resources? 7.What has changed and what are our countermeasures? 8.What went wrong and how do we prevent it from happening again? 9.What have we learned and how can we reuse it? Question-Based Lean Project Management

37. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 37 Integrating Learning Loops Into Project Management Customers & Deliverables Target Customers Quote / Specs Prototype 1 Prototype 2 Quote / Specs Quote / Specs Approval Parts Production PartsStrategy What is the Product? What is the Process? What is the Value Stream? Do we Meet Customers’ Requirements? Do we Meet Internal Requirements? Learning / Problem Solving XXXXXXXXXXXX X XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX

38. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 38 Managing Work: Organizational Capacity vs. Requirements 2008 2008 1/2 20092009 1/2 20102010 1/2 Product 3 Product 4 Product 1 2011 Value Stream 1 2011 1/2 2012 Product 2 Value Stream 2 Market A Market B Market C Danger! All Good  Development teams are most efficient / effective at 70 - 80% capacity  Prioritize and balance workload; manage capacity versus requirements  Align organization behind the strategy & priorities Warning

39. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 39 Customer Milestones Requirements Defined QuotePrototypeValidation Production Design Start of Production Continuous Improvement Project 1 Plan: Actual: 9/1/05 10/1/05 11/1/05 1/15/06 2/1/06 4/1/06 4/15/06 Project 2 Plan: Actual: 9/1/05 10/1/05 11/1/05 11/1/05 12/1/05 1/15/06 2/15/06 3/1/06 3/15/06 4/1/06 4/15/06 5/1/06 Project 3 Plan: Actual: 9/1/05 10/1/05 11/1/05 11/1/05 12/1/05 1/15/06 3/1/06 2/1/06 4/1/06 4/15/06 !!!!  Which project is fine? Needs watching? Is in trouble and needs intervention?  Draw attention to where help is needed and do not spend too much time on items that are on-track Visual Project Management Example

40. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 40 “Project Kanban” Example Team Deliverable Customer Deliverable is Late! Current

41. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 41 “It’s not a product if you can’t make and deliver it.” Preparing for Lean Production: Creating & Validating Production Value Streams

42. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 42 2008 BBB Complaints CategoryRank# of Complaints Cell phones & carriers135,631 Auto dealers – new cars226,723 Auto dealers – used cars712,958 Auto repair & service1211,157 Auto parts & supplies394,303 Auto warranty companies444,073 Auto rental & leasing613,075 Auto manufacturers1081,749 Business consultants1271,407 Puppets & marionettes5902 Zinc oxide2,4080 Majority of auto complaints are value stream / service related

43. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 43 KFC Value Stream Debacle We are so sorry, but due to the overwhelming response to our FREE Kentucky Grilled Chicken™ meal coupon, we can no longer redeem the free coupon at this time. But we will honor our commitment to giving you a free Kentucky Grilled Chicken meal. Please visit a participating KFC restaurant for a rain check form. Complete the form, attach your original coupon, and give it to the KFC restaurant manager or postmark per the form’s instructions, by May 19, 2009, and we’ll send you a rain check for your free Kentucky Grilled Chicken meal at a later date, plus a free Pepsi with our compliments. Your participating KFC restaurant will provide you with the form you need. Please note that the redemption periods of the rain checks will vary. All other terms and conditions of the original free Kentucky Grilled Chicken coupon will apply. Thank you for your understanding, Roger Eaton KFC® President

44. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 44 Creating the McCafé Value Stream Biggest launch since Egg McMuffin 11,000 Restaurants (just U.S.) $100 MM in launch costs “Cappuccinos, lattes, mochas, iced lattes and iced mochas, as well as hot and iced Premium Roast brewed coffees and hot chocolate. All McCafé Coffees start with fully- ripened Arabica coffee beans from Central and South America and Indonesia. From there, each drink is made to order with quality ingredients like flavored syrups, including caramel, hazelnut, vanilla and sugar-free vanilla, rich chocolate, frothy steamed milk and whipped cream.”

45. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 45 What impact does paint color have on cycle time? If we localize solenoid production in Brazil to reduce duties, can we use the same solder? How is labor linearity impacted by the features we offer? Process & Value Stream Design Often Interact with Product Design

46. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 46 Process & Value Stream Design Should be Treated Like a System Design Problem 2000 MixFormGlazeFirePack II II I AAA Ceramic Powder Mug-O-Rama Sales Production Control P/T = 30 min L/T = 1200 min %C&A = 95% P/T = 1 min L/T = 250 min %C&A = 99% P/T = 1 min L/T = 250 min %C&A = 65% P/T = 960 min L/T = 1080 min %C&A = 85% P/T = 1 min L/T = 180 min %C&A = 65% P/T = 15 min L/T = 600 min %C&A = 95% P/T = 5 min L/T = 120 min %C&A = 98% 1 Order / Day Phone 2 P.O. / Week Fax 2500 Per day 27 Styles 99.7% Defect-free 1 Shipment / Week 1 Shipment / Day 1 FIFO 1 1 500 Phone Production Authorization Job Packet 2 Coffee In

47. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 47 Sub-System Mapping the Design / Process / Customer Space Define Narrowing Criteria Concept Narrowing And Integrating Final Definition & Validation Concept #1 Concept #2 Concept #3 Concept #4 Concept #1 Concept #2 Concept #3 Concept #4 Sub-System A Sub-System B  Customer  Technology  Manufacturing  Cost  Quality  Suppliers #1 #2 #3 #4 #1 #2 #3 # 2 & # 3 # 4 # 1 # 2 Final Concept Choose optimal intersection of sub-systems  Customer  Technology  Manufacturing  Cost  Quality  Suppliers Integrating Process & Value Stream Development

48. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 48 Lean Product Development Example #1: Toyota Product Development System 1.Establish customer-driven value 2.Front-load design process to explore alternatives 3.Create level development flow 4.Standardization to reduce project outcome variation 5.Chief Engineer / Super Program Manager 6.Balance functional expertise and cross-functional integration 7.Create “Towering Technical Competence” 8.Integrate suppliers into development process 9.Built-in learning and continuous improvement 10.Culture to support excellence and relentless improvement 11.Adapt technology to fit people and process 12.Align organization through simple, visual communication 13.Tools for standardization and organizational learning Sources: The Toyota Way, The Toyota Product Development System, Lean Product and Process Development

49. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 49 Lean Product Development Example #2: Apple (?!!!)  Controlled concept narrowing  Fast cycles of learning / cadence of review  Simultaneously exploring concepts and developing detailed implementation plans  Concept is selected at the very end of the process  Strategically focused organization  Small, focused teams  Supplier partners  Market experimentation  Narrow set of must have features / functions (value focus) –Look and feel

50. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 50 Pulling It All Together Organically grow your own lean product development process: 1.Do not copy Toyota or Apple! (but you can learn from them) 2.What are your business needs? What problems do you need to solve? 3.Current state: What works well? Problems & gaps? –What are the real root causes? (not the symptoms) 4.Future state vision: What / Who / How / When? Quality measurements? 5.Implementation plan: –When does the business need it completed? –Does the organization have enough capacity? –What are reasonable “chunks” to work on? –What simple experiments will test your future state vision (hypotheses)? –Plan – Do – Check – Adjust –Honest reflection and improvement

51. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 51  Strategy Science Inc. is a global product development, strategic planning, and sales & marketing consulting / training firm.  We are focused on improving your process efficiency and effectiveness.  Our objective is to teach you to become self-sufficient in learning, problem solving, and driving continuous improvement. We will have achieved that goal when you can maintain your own desired pace of improvement without us.  We support you with organizational problem analysis, training combined with pilot projects, and management coaching.  Our work is custom tailored to your specific needs. We work closely with you to jointly uncover gaps, create solutions, and implement rather than forcing our own set of favorite solutions.  We are a network of 10 experienced practitioners with extensive knowledge of how to best implement what we teach.  To learn more, please visit our website: www.strategyscienceinc.com or contact our president, Brent Wahba, at (585) 315-7051 / brentwahba@strategyscienceinc.comwww.strategyscienceinc.combrentwahba@strategyscienceinc.com About Us

52. All Rights Reserved – Please Do Not Copy Without Permission Brent Wahba LIPPD Ontario PDMA 3_30_10.ppt Page 52 Thank You!!!