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For internal use only
A Practitioner’s Experience with the Production, Preparation, Process
The Lean 3P Advantage
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Life Before 3P
This is a story of a process that helps us avoid bad designs, takes us past average designs and to the place where good designs can become
GREAT
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We all recognize faulty design…
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Tacoma Narrows Bridge
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Why apply 3P?
Production, Preparation, Process
Breakthrough Results
Lowest Initial Capital Costs
Lowest Ongoing Cost Basis
An event-driven process for developing a new product concurrently with the operation
(process) that will produce it, by the people who will interact with it.
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Where did 3P come from?
Lean 3P is a systematic process for innovation in design based on Toyota’s Set Based Concurrent Engineering methodology.
3P was developed by Mr. Chihiro Nakao , a former Senior Manager at Toyota and founder of Shingijutsu
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3P enables development of GREAT products
The Right Features
The Right Price Point
The Lowest Manufacturing Cost
The Highest Customer Satisfaction
“Good is the Enemy of Great”- Jim Collins
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More and more companies are adopting Lean 3P
Two Examples
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General Electric
2012 Superbowl Commercial- GE Appliance Park, Lexington, KY
and now . . . the rest of the story . . .
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Danaher
An umbrella corporation encompassing many successful companies including: Beckman Coulter, Molecular Devices, Fluke, Dexis, Dover, Eagle-Signal, Qualitrol, Tektronix, Arbor Networks . . .
“The general rule of thumb for leadership is that with 3P, you can normally get a given increment of capacity at one-quarter the capital cost of traditional approaches, and you can normally get a fourfold productivity gain” *
- George KoenigsaeckerFormer President of Danaher and Developer of the Danaher Business System
* Koenigsaecker, George. Leading the Lean Enterprise Transformation. Boca Raton: CRC, 2009.
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What about other companies who make
GREAT products, but don’t use 3P?
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“We wanted to get rid of anything other than what was absolutely essential. To do so required total collaboration between the designers , the product developers , the engineers , and the manufacturing team . We kept going back to the beginning, again and again. Do we need that part? Can we get it to perform the function of the other four parts?”
- Steve Jobs
“Much of the design process is a conversation, a back-and-forth as we walk around the tables and play with the models. He doesn’t like to read complex drawings. He wants to see and feel a model. He’s right. I get surprised when we make a model and then realize it’s rubbish, even though based on the CAD renderings it looked great.”
- Jony IveSr. VP of Industrial Design, Apple* Isaacson, Walter. Steve Jobs. NY NY: Simon & Schuster, 2011.
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Where is 3P applied?
• Increasing Plant capacity to meet customer demand
• Designing a new product
• Relocating factory operations• During process quality improvement efforts
• Purchase of capital equipment
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New Products
AME 3P WORKSHOPSqueeze machine redesign at Therafin Corporation
June 2012 – Chicago, IL
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Natural Alternatives
Evaluating Alternatives
Prototype
Refinement
Final Concept
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Plant Layouts
Criteria Defined
Alternatives
Scale Model Prototypes
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New Operations
Combined Prototype
Completed Operation
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The Problem With Typical Product & Process Development
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* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
Typical Product Development Approach
Concept
Design
ProductionEngineering
Production
• Over the Wall
• Late to Market
• Rework pre-launch and post-launch
• High development costs
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* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
The Shape of Reliable Innovation is . . .
Iterative . . . Not Sequential
Generate Product Concept
Conversationwith CustomerAbout Product
Expose Customerto Product
Repeat
Concept Generation
Product Planning
Product Engineering
Process Engineering
Production Process
Product
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Why does 3P work?
• Product Development concurrently with Process
• Intense cross-functional collaboration
• Rapid learning and Try-storming• A process that moves quickly through a series of steps that activate our thinking and help us gain understanding as we evaluate and converge upon optimum solutions.
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Lean 3P Event Flow
Information InnovationPrototyping& Redesign
Optimization
FinalDesigns
BoldGoals
Ideas
Voice-of-Customer
ResearchData
ProductPlanning
ProductionPlanning
ProductTry-Storming
ProcessTry-Storming
ConvergeDesigns & More
Prototyping Refine Designs& Develop
Project Plans
KnowledgeGathering
DevelopAlternatives
Prototyping &Convergence
Evaluation &Detailed Planning
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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The Lean 3P Process
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Who needs to be included?
Collaboration during development of both the
product and the process
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Sources of Cross-functional Input
Research & Development
Design Engineering
Operations Management
Technical
Production Operators
Quality Assurance
Health, Safety, Environmental
Material Handling
Maintenance
Customers
Process Engineering
Supply Chain / Logistics
Finance
Equipment Vendors
Sales / Marketing
Raw Material Suppliers Regulatory / Compliance External Experts
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Goals and Boundaries
Process Name Start Date End Date The No-Diesel Diesel Engine Project May 5, 2014 May 9, 2014
Process Boundaries Start Time End Time 7:30 AM 4:30 PM New product to utilize alternate
hydrocarbons in a diesel-style engine. Event Meeting Location South Factory
Process Owners Factory and shop only. Not receiving, warehousing of distribution.
VP Operations - Ron M VP Marketing - Hal M
Why Do We Need This Event? Process Experts Existing product lines plateau. Cost of oil is skyrocketing. Hybrids and electric causing market erosion at 5% per year.
Product Mgr - John W, Design Engr - Kay M, Regulatory Mgr - Stan G, Director HSE - Jim E, Director Operations - Alex K, Supply Chain - Paula E, Production Super - Joyce W, Technical Mgr - Kim G, Procurement - George M, Quality Supr - Narda M, Finance - Pam M, Operators - Megan B and Alexandra C, Facilities - Glenn S
Event Targets Event Judges
Final product cost under $1,500 USD at rate of 30,000 units per year.
Chief Engr - Ron M, Research - Maria S, COO - Ken R, Dir. Lean Sigma - Drew L
Process Outsiders Capital cost limited to $1.2 MM USD. Time to market launch 14 months or less Acme Machine Tool Co - Andrew J
Facilitators The Sensei Co. - Kit E
MEP - Kim K
The 3P EventCharter
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Choosing Design CriteriaEvaluation Criteria MUST SHOULD COULD
1 Takt Time2 One-Piece Flow3 Pull System4 People Involvement5 Automatic Unloading6 Load-Load Operations 7 Low Cost Automation8 Mistake-Proof (Poka Yoke)9 Minimal Capital
10 Minimal Space Required11 Low Motion Waste12 100% Gauging13 Maximum Operator Value-Add 14 Changeover Time15 Tool Room Maintenance16 Tooling Quality or Tooling Cost17 Safety, Ergonomics, and Health 18 Environmental Impact19 Internal Waste Collection20 Simple as Possible21 Standard or Off-the-Shelf Equipment 22 Process capability (Cp) 23 Known Process 24 Future Challenge 25 Maintenance Free 26 Technical Advantage 27 Autonomation
28Development Time or In-House Development
29 Scalability30 Flexibility
Select strongDesign Evaluation Criteria
These Design Criterion will be used to evaluate all alternatives and prototypes during the event
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Takt Time
1st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter
1,350,000 750,000 350,000 1,100,000
72 40 19 59
0.8 1.5 3.2 1.0
60 33 16 49
1.0 1.8 3.9 1.2
31 17 8 25
1.9 3.5 7.5 2.4seconds per apple
5 day wk / 8 hrs - Apples per Minute
6 day wk / 8 hrs - Apples per Minute
5 day wk / 16 hrs - Apples per Minute
seconds per apple
seconds per apple
BAKED APPLE Sales Per Quarter
Takt time equals the available time per day, divided by the daily customer demand, often expressed as seconds per piece.
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Understanding Product Assembly and Features
Develop Knowledge of Product Attributes, Features and
Alternatives* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Simple Flow Diagram
1 2 3 4 5 6 7 8 9 10 11
KathrynsFinest
KathrynsFinest
KathrynsFinest
Accumulate SeparateRemoveContam. Dry
RemoveMatl. Fill Heat Cool Protect ID Group
Value-Adding Process Flow
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Make Flow as Visual as Possible
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Value-Adding Functions
Group11 Package
Identify10 Label
Protect9 Package in Clamshell & Weld
Cool8 Flash Cool
Heat7 Bake
Fill Hole6 Insert Sugar & Butter Mix
Remove Material5 Core Apple
Dry4 Blow Off Water
Remove Contaminates3 Spray Apples
Separate2 Sort Apples
Accumulate1 Load Apples
Description of FunctionTraditional Process Step
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Develop 7 Natural AlternativesSelect the 3 Most Viable
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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7 Alternatives From Nature
HEAT
4. Sun Radiates
3. Lava Conducts2. Rub HandsFriction
7. Warm Wind Convection
1. Electricity
6. Fire5. Lightning BugChemical Reaction
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Finding Industrial Alternatives
7 PROCESS OPTIONS FOR: HEAT
Material High Voltage Electricity
Microwave Heat
Conduction Heat
Radiant HeatExothermic Chemical Reaction
FireConvection
Heat
Method
Arc Welder Microwave Oven
Deep Fryer with Butter
Infrared Oven ??? Pizza Oven or Broiler
Convection Oven
X
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Assigning Alternatives to the 3 Different Prototypes
Distributing Alternatives to the 3 Teams
1
2
3
1
3
32
1
2
2 2
21
1
1
3
3
3
ALTERNATIVES
Value-Adding Functions
Function 1 Function 2 Function 3 Function 4 Function 5 Function 6
1
2
3
Team
Team
Team
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Sketching Ideas
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Prototypes and Try-Storming
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
Simple Solutions“Creativity Before
Capital”
Researching Ideas &Physical Modeling:
“Fail Fast, Fail Cheap”
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Three Different Prototypes Built
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
For Every Value-Adding Step:
A Different Alternative inEach Model
Different Functions Working Together,
Collaborating & Learning to Gain Understanding
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Best Alternatives Combined into One Final Prototype
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
Rapid PDCA to Learn, Evaluate and Refine
Stakeholders Add Detail and Error
Proofing
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Simulate Actual Operation
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
To DevelopStandard Work
To Practice, Refine and Prepare for Vertical Launch
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Final Report-Out Session
� Estimated performance versus evaluation criterion
� Process at a Glance
� Prototype walk-through, highlighting people involvement
� Financial plan and estimates versus target costing
� Project timeline an risks� Open actions and opportunities � Summary of accomplishments
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Process at a Glance1 2 3 4 5 6 7 8 9
Complete Process
Evaluation CriteriaWeighFactor
1 Minimal Capital2 Changeover Time3 Low Motion Waste4 Pull System5 Autonomation6 Off the Shelf Equipment7 High Process Capability8 Internal Waste Collection9 Simple as Possible10 Maintenance Free11 Scalability TOTAL +TOTAL -RATING TOTAL
PROCESS AT A GLANCE
Process Step
Material
Machine
Method
Gauge
Tool
Fixture or Jig
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Process at a Glance
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
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Potholes and Stumbling Blocks
• Judges: influential “critical evaluators”• Choose optimists versus pessimists
• Let the process breathe . . .• Time management - keep things moving• Leadership through the highs and lows• Believe in and trust the 3P process
* Used with permission: Coletta, Allan. The Lean 3P Advantage. Boca Raton: CRC, 2012
• Stakeholders involved from event(s) through to Launch
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Questions?
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Presenters
James Earley
Sr. Manager, Engineering
Siemens Healthcare Diagnostics
Glasgow, DE
Allan R Coletta
Sr. Director Engineering & Facilities
Siemens Healthcare Diagnostics
Glasgow, DE