1. 1 © 2006 Superfactory™. All Rights Reserved. Design for Lean and Six Sigma Superfactory Excellence Program™ www.superfactory.com

2. 2 © 2006 Superfactory™. All Rights Reserved. Outline Lean Design Lean Design Key Principles of Lean Design Key Principles of Lean Design Characteristics of the Toyota Product Development System Characteristics of the Toyota Product Development System The Impact of Variation The Impact of Variation Waste in Product Development Waste in Product Development Optimal Lean Design Team Optimal Lean Design Team Cycle Time Issues Cycle Time Issues Product Cost Issues Product Cost Issues Quality Issues Quality Issues Design for Manufacturing Design for Manufacturing Design for Six Sigma Design for Six Sigma Goals Goals Tools Tools Process Process Design and ISO 9001:2000 (Section by section discussion) Design and ISO 9001:2000 (Section by section discussion)

3. © 2006 Superfactory™. All Rights Reserved. Lean & Six Sigma Design Phase 2 Concept Phase 1 Pre-concept Phase 3 Product Definition Phase 4 Detailed Design Phase 5 Integration & Test Validation Phase 6 Production & Operation CUSTOMER CTQ’S BUSINESS CTQ’S TECHNICAL CTQ’S TECHNICAL REQUIREMENTS LIST Manufacturing Process Control Design for Six Sigma Product Development Process Lean Design Supplier Rationalization Quality Improvement Cycle Time and Cost Improvement

4. 4 © 2006 Superfactory™. All Rights Reserved. Key Principles of Lean Design Well-integrated basic elements of product development Highly skilled and well organized people Processes that minimize waste and maximize the capability of people using them Technologies that enhance the performance of people and processes Customer first philosophy Understand customer defined values Strive to give defined values to customer

5. 5 © 2006 Superfactory™. All Rights Reserved. Key Principles of Lean Design Knowledge based organization Learning and continuous improvement as part of job Standardization Skills Design standards Processes/milestones/deliverables Reuse Knowledge/experience Design/design alternatives Parts/configuration

6. 6 © 2006 Superfactory™. All Rights Reserved. Toyota Product Development System Focus on business performance Value customers’ opinion Standardized development milestones Prioritize and Reuse Functional teams Set-based concurrent engineering Supplier involvement Chief engineer system

7. 7 © 2006 Superfactory™. All Rights Reserved. Waste in Product Development Why Is Waste Hard to See in Product Development? On a manufacturing floor, waste is easy to see once you know what you’re looking for: excess inventory, extra steps, extra transportation, waiting, defects, excess motion and overproduction. Finding waste in product development is much more challenging because the “product” of new product development is knowledge: knowledge about customers, knowledge about technologies and process capabilities integrated into specific knowledge about how to make a product - the product design. All this knowledge is hard to see. Sometimes there are physical manifestations: drawings, reports, slide sets or prototypes. But much of the knowledge, and often the most important knowledge for value creation, resides in the minds of the individuals engaged in the process.

8. 8 © 2006 Superfactory™. All Rights Reserved. Waste in Product Development Common Waste in Product Development Reinvention Lean product development teams appreciate the value of knowledge, and ensure that knowledge is easy to capture, easy to reuse and always used to make decisions. Excess Requirements Lean product development teams recognize that every extra feature or performance enhancement must be designed, produced, maintained and supported – and customers pay the price in greater complexity and greater risk of failure. Overloaded Resources Lean product development teams know that overloading resources makes them slower and less flexible, and that task-switching costs engineers valuable time. Unintegrated Design Lean product development teams strive to understand and then manage their designs as an integrated system, so that they can focus innovation on areas that improve the market performance of their entire portfolio of products.

9. 9 © 2006 Superfactory™. All Rights Reserved. Design For Manufacturing (DFM) Designing products for easy & economical production Designing products for easy & economical production Use recommended parts and strategic suppliers Use recommended parts and strategic suppliers Products are designed to be consistent with internal and external process capabilities Products are designed to be consistent with internal and external process capabilities Modular designs/ease of configurability Modular designs/ease of configurability Concurrent Product and Process Design Concurrent Product and Process Design

10. 10 © 2006 Superfactory™. All Rights Reserved. Design for Six Sigma - Goals Resource Efficient – LEAN Capable of very high yields regardless of volume Not affected by process variation; Robust Lead to a “flawless launch” Meets Performance Targets (Quality) Meets Delivery Targets (On Time) Meets Financial Targets (Target Cost)

11. 11 © 2006 Superfactory™. All Rights Reserved. Design for Six Sigma - Process 1. 1. Identify Customer requirements VE, QFD, CTQ 2. 2. Estimate Baseline Benchmark, Patent search, Product Scorecard, Process Map, Value Stream Map 3. 3. Determine Functional Requirements VE, DFMEA 4. 4. Generate, Evaluate, Select Design & Process Concept(s) VE, 3P, TRIZ, Brainstorm 5. 5. Optimize Design and Process Concepts DOE, CAE, FEA, Simulation, Analytical models 6. 6. Verify Design and Process PFMEA, DVP&R, PPAP 7. 7. Maintain the Gains Control Plan, SPC, Kaizen

12. 12 © 2006 Superfactory™. All Rights Reserved. ISO 9001:2000 Relevant Sections 7 Product Realization 7 Product Realization 7.1 Planning of product realization 7.1 Planning of product realization 7.2 Customer-related processes 7.2 Customer-related processes 7.2.1 Determination of requirements related to the product 7.2.1 Determination of requirements related to the product 7.2.2 Review of requirements related to the 7.2.2 Review of requirements related to the product product 7.2.3 Customer communication 7.2.3 Customer communication 7.3 Planning of product realization 7.3 Planning of product realization 7.3.1 Design and development planning 7.3.1 Design and development planning 7.3.2 Design and development inputs 7.3.2 Design and development inputs 7.3.3 Design and development outputs 7.3.3 Design and development outputs 7.3.4 Design and development review 7.3.4 Design and development review 7.3.5 Design and development verification 7.3.5 Design and development verification 7.3.6 Design and development validation 7.3.6 Design and development validation 7.3.7 Control of design and development changes 7.3.7 Control of design and development changes