1. Lean 6 Sigma @ New Product Development Tiago Lopes, Industrial Engineer/Executive MBA, March 2015 A personal view into tools and methodologies

2. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. What is NPD – New Product Development In business and engineering, new product development (NPD) is the complete process of bringing a new product to market - From Wikipedia, the free encyclopedia We should add that a “Service” can also be considered as a “Product” and it’s availability is also the result from a specific development process

3. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. Why Lean 6 Sigma @ NPD ? Inspiration alone will not be enough for a new product to ever “see the light of day” Very bright, creative and strong minded (somewhat temperamental) people are normally at the center of development work but they also need to be guided in order to deliver “value”. How to make that work, without opposing their character and stifling their creative sparkle?

4. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. L6S applied to NPD! I think of the NPD as a process that needs to deliver an output and thus it make sense to use the same L6S techniques Communication becomes easier and focused, removing some of the emotional content we are sometimes entangled in Go back to the basics – how can we “construct the house”? Does the process makes sense? Is the process delivering value to the customer? Just – In – Time Single piece workflow Pull Takt Jidoka Autonomation Built-in Quality Stop at defect System People Process Purpose Heijunka Level loading Sequencing Stability

5. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. Where to start? (1/2) Just-in- Time Single Piece Flow Eliminate batch build up before start working on solution. Decompose work monoliths into simpler tasks, so that it can be addressed in a sequence of steps rather than a complete "lock down" of some times unique resources, until solved. Differentiate between expert services and standard services. Have triggers and levels of service to guide you through the decision gates. Understand why batches build - normally mismatch between supply and demand. In Engineering it happens to try to maximize the use of a scarce resource such as availability of an expert. So, we must ask the question - if it is an expert service, why is it building up to mass production of service? Pull Production Work out solutions by pulling constructed knowledge, not by re-inventing the wheel every time "Distil" knowledge into models, tools, templates that allow calculations and sharing information even to other processes. The secret will be to use those models to quickly answer to customers and work on the knowledge to improve the model so that the reliability of the model guarantees satisfaction - both internally and to the customer. TAKT Time Production What are the services requested? What is their frequency? How much time to deliver the service requested? How will this then translate we the resources available? Make the distinction between "product families" according to the resources needed, then apply all manufacturing techniques as if a physical product would be realized - TAKT, VSM, Lead time improvement by reducing batches, eliminating non- value added, dividing capacity through multiple resources Applied toHow to

6. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. Where to start? (2/2) Jidoka Autonomation Understand business processes and escalation procedures Set standards, communicate and review accordingly Built-in Quality Understand products, materials and technologies as well as their performance characteristics Built-in indicators that will alert for non-conformities Stop at defect Poka-yoka on processes, models, templates Present quality targets and confidence limits to evaluate against KPI's Heijunka Level loading From the VSM, actual demands and resources plan the deployment of work Use Kanban to pull resources, Pacemakers to harmonize resources Sequencing Priority and visibility of work being done Use visual management techniques to indicate flow speed and intensity Stability Set your management skill to provide a stable environment able to deal both with standard work or exceptions Daily reviews of indicators, conflict resolution, empowerment, communication - GEMBA walk Applied toHow to

7. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. Just-in-Time conceptual example AnalyseDefineSolve RequirementsEngineeringCostingPricing Lead time …cannot fit! As an example, when answering to a consultation to develop a new product/service, the traditional approach would be to take the necessary time to design a concept and then cost and pricing it! But we cannot afford this anymore otherwise we become uncompetitive not due to our offer or technical expertise but because the lead-time is not suitable to very dynamic markets

8. Important: Please note that you cannot edit the footer here. You must edit it in the main Slide Master (go to "View" > "Slide Master"). When in Slide Master view scroll to the slide at the very top of the list on the left side. The main Slide Master is left-indented and larger than the rest. All changes applied there will be visible on all slides which display a footer. AnalyseDefineSolve Just-in-Time conceptual example RequirementsEngineeringCostingPricing Same Lead time …perfect fit! Focused scientific work without the stress = incredibly better results Solve Providing the required result in JIT = What is needed, when it is needed!

9. End note Dear readers, My goal is to share a fresh and different view on a probably much discussed theme… I will only know if I achieved my purpose if you are able to provide me feedback. Thanks in advance!

10. Who am I? I’m an Industrial Engineer and exec. MBA Experienced in – Management: Plant Management, Business management, Project Management, VA/VE and other special projects – Operations: Supply chain, Industrial footpath & Green field operations, Lean process installation & Ergonomics, Lean 6 Sigma continuous improvement – Finance: P&L, Business plans, Cost calculation – International footpath, – Passionate for sci-fi and strategy