lean and agile innovation 1 © the delos partnership 2004 lean and agile applying the ideas to the...

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Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Lean and Agile Applying the ideas to the Design side

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Page 1: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 1 © The Delos Partnership 2004

Lean and AgileLean and Agile

Applying the ideas to the Design side

Page 2: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 2 © The Delos Partnership 2004

The Delos ModelThe Delos Model

VisionVision

StrategyStrategy

PrioritisationPrioritisation

InnovationInnovationDemandDemand

SupportSupport

SupplySupply

Page 3: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 3 © The Delos Partnership 2004

Impact of Innovation and Impact of Innovation and DesignDesign

Design has a significant potential on an organisation’s Lean and Agility potential

• Complexity of product and process

• Cost

• Speed of design capability

• Customer responsiveness

Page 4: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 4 © The Delos Partnership 2004

Value Proposition - DesignValue Proposition - Design

StrategyStrategy

Sales and Marketing

Operations/

Supply Chain

Design/

Development

Operational Operational ExcellenceExcellence

Products that are functional and low cost

Products that can easily be made

Products that do not take long to develop

Customer Customer SolutionsSolutions

Products that meet the customers precise need

Products that have lots of variation

Intimate involvement of customer in design

Product Product LeadershipLeadership

Thinking out of the box

High and leading edge Technology

Novel designs with new materials and processes

Page 5: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 5 © The Delos Partnership 2004

Integrated Business Plan

Integration of InnovationIntegration of Innovation

Innovation Supply Chain

Page 6: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 6 © The Delos Partnership 2004

Integration with Supply Integration with Supply ChainChain

Design

Purchase

Intermediate Manufacture

Sub-assemble

Finish

Distribute

Cumulative Lead TimeCumulative Lead Time

Insert NewProducts Here

Insert NewProducts Here

Page 7: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 7 © The Delos Partnership 2004

Management of InnovationManagement of Innovation

Stage/Gate Process

Formal Process for Managing Project

Gate0

Gate0

Gate1

Gate1

Gate2

Gate2

Gate3

Gate3

Gate4

Gate4

Stage 0Stage 0 Stage 1Stage 1 Stage 2Stage 2 Stage 3Stage 3 Stage 4Stage 4

Review

InvestigateInvestigate FinancialCase

FinancialCase

DevelopDevelop TestTest LaunchLaunch

Where is value added in this process ?

Page 8: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 8 © The Delos Partnership 2004

Parallel or Serial ?Parallel or Serial ?

Design

Trial

Small Scale

Scale Up

Mass manufacture

Page 9: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 9 © The Delos Partnership 2004

Parallel or Serial ?Parallel or Serial ?

Design

Trial

Small Scale

Scale Up

Mass manufacture

Faster to MarketEasier to Make

Faster to MarketEasier to Make

Page 10: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 10 © The Delos Partnership 2004

Variety is compoundVariety is compound

Tablet Family

BottleBottle CapCap LabelLabel CaseCase LeafletLeaflet

5 7 10 4 5

= _______variants ?

Page 11: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 11 © The Delos Partnership 2004

Pack Size

Can Height& Size

Actual Gravity Brew Analysis

Core High Gravity Brews

Variety Funnel - BrewingVariety Funnel - Brewing

Page 12: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 12 © The Delos Partnership 2004

Glass Process Bulb Form Tube Form Coil Fit

6 6 6 400

Variety funnel Television Variety funnel Television TubesTubes

Page 13: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 13 © The Delos Partnership 2004

Mass customisationMass customisation

- Hewlett Packard - deskjet printers: power supply module, power cords & manual

mfg D.C.

Factory localisation

D.C.mfg

Distribution Centre localisation

Page 14: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 14 © The Delos Partnership 2004

Lean and Agile DesignLean and Agile Design

Lean Design – fewer parts; less variety

Agile Design – Build in uniqueness late in process

Page 15: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 15 © The Delos Partnership 2004

The design process: waste?The design process: waste?

RunRun

RunRun Setup

Setup

ReceiveReceiveEngineeringChange Request

EngineeringChange Request

InspectInspect StoreStore

PickPickSetup

Setup QueueQueue

InspectInspect QueueQueue Setup

Setup RunRun InspectInspect

StoreStoreQueueQueueInspectInspectStoreStore

Page 16: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 16 © The Delos Partnership 2004

Product rationalisationProduct rationalisation

Where should the future product focus be?Which products are losing the company

money?

cumulativeunit

productcontribution

100%

products ranked in order of contribution

Page 17: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 17 © The Delos Partnership 2004

Structure of Bills of Materials Structure of Bills of Materials and Routingsand Routings

Principle :

Bills of materials and Routings together describe the way that we make things

Issue :

Do we do this through the use of Part numbers or Operations ?

Page 18: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 18 © The Delos Partnership 2004

Simplify StructureSimplify Structure

• Fewer levels means fewer transactions

• Fewer levels makes bottom up re-planning easier

• Fewer levels takes up less computing resource

Page 19: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 19 © The Delos Partnership 2004

Planning FamilyPlanning Family

Blue OptionPart Number 12346

Blue OptionPart Number 12346

Red OptionPart Number 12345

Red OptionPart Number 12345

Black OptionPart Number 12347

Black OptionPart Number 12347

Green OptionPart Number 12348

Green OptionPart Number 12348

Common Parts46783

Common Parts46783

Pen Family43785

Pen Family43785

20 % = 0.2

30 % = 0.3

15 % = 0.15

35 % = 0.35

Forecast = 200/mth

100 % = 1.0

Page 20: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 20 © The Delos Partnership 2004

Design impactDesign impact

• Lean and Agile Design should look to build in :– Commonality of components to minimise

product differentiation– Uniqueness as late as possible into the

manufacturing/distribution process– Product/components that are easily

available in short lead times

Page 21: Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 21 © The Delos Partnership 2004

Lean Design requires Lean Design requires integrationintegration

Design Manufacturing

And SupplyChain

SalesAnd

Marketing