Lean Product Development
Eric Rebentisch
October 5, 2005
Lean Engineering Learning Points
• Lean applies to engineering
• Lean engineering process eliminates waste,
focuses on value creation, and improves cycle time
• Efficient and standard process enables better
engineering
• Integrated Product and Process development (IPPD)
and other tools are critical for lean enterprise
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 2
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Lean Engineering Enables Faster and More Efficient Design
Forward Fuselage Development Total IPT Labor
Prototype EMD Wireframe
Wireframe with 2D Drawing
Release
Release
Prototype
3D Solid
Release
Results from vehicle of
approximate size and work
content of forward fuselage
Staffing
Level
Prototype
3D Solid
Release - 2000 *
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
Months from End of
Conceptual Design Phase
Source: “Lean Engineering ”, John Coyle (Boeing), LAI Executive Board Presentation, June 1, 2000
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Lean Engineering Improves
Manufacturing
Additional Reduction in T1 via
Virtual Mfg. of Approx. 9 Units
Mfg.
Labor
(hrs)
Before Lean Engineering
After Lean Engineering
Reduction in
Work Content via
Improved Design
76% Slope
48% Savings
83% Slope
0
-10
-5
1
5
10
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
15
20
25
30
35
Production Units
Source: “Lean Engineering ”, John Coyle (Boeing), LAI Executive Board Presentation, June 1, 2000
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Lecture #8: October 05, 2005
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Using Efficient Engineering Processes:
Applying lean thinking to eliminate wastes and improve cycle time and quality in engineering
pure
waste
value
added
• Effort is wasted
• 40% of PD effort “pure waste”, 29%
“necessary waste” (workshop opinion
survey)
• 30% of PD charged time “setup and
waiting” (aero and auto industry survey )
necessary
waste
• Time is wasted
task
idle
task
active
• 62% of tasks idle at any given time
(detailed member company study)
• 50-90% task idle time found in Kaizentype events
Source: McManus, H.L. “Product Development Value Stream Mapping Manual”, LAI Release Beta, April 2004
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 5
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
What is Product Development?
“The
“Theset
setof
ofactivities
activitiesbeginning
beginningwith
withthe
theperception
perceptionof
ofaamarket
market
opportunity
opportunityand
andending
endingin
inthe
theproduction,
production,sale
saleand
anddelivery
deliveryof
ofaa
product”.
product”.Ulrich
UlrichK.
K.and
andEppinger,
Eppinger,S,S,Product
ProductDesign
Designand
andDevelopment,
Development,McGraw-Hill,
McGraw-Hill,1995
1995
C
U
S
T
O
M
E
R
Concept
Development
Engineering & Manufacturing
Development
CUSTOMER
REQS
RFP
C
U
S
T
O
M
E
R
CUSTOMER
REQS
CONTRACT
PROPOSAL
Production
DESIGN
BUILD
DESIGN
FABRICATE
DESIGN
PACKAGE
ASSEMBLE
VERIFY
SHIP
DELIVERED
PRODUCT
Source: Adapted from Aerojet General Corporation Briefing- “ Value Stream Analysis
Applied to the Product Development Process”
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 6
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Lean Engineering: Doing the Right Thing Right
•• Creating
Creating the
the right
right products…
products…
•• Creating
Creatingproduct
productarchitectures,
architectures,families,
families,and
anddesigns
designsthat
that
increase
increasevalue
valuefor
forall
allenterprise
enterprisestakeholders.
stakeholders.
•• With
With effective
effective lifecycle
lifecycle && enterprise
enterprise integration…
integration…
•• Using
Usinglean
leanengineering
engineeringto
tocreate
createvalue
valuethroughout
throughoutthe
the
product
productlifecycle
lifecycleand
andthe
theenterprise.
enterprise.
•• Using
Using efficient
efficient engineering
engineering processes.
processes.
•• Applying
Applyinglean
leanthinking
thinkingto
toeliminate
eliminatewastes
wastesand
andimprove
improve
cycle
cycletime
timeand
andquality
qualityin
inengineering.
engineering.
Source: McManus, H.L. “Product Development Value Stream Mapping Manual”, LAI Release Beta, April 2004
Source: McManus, H.L. “Product Development Value Stream Mapping Manual”, LAI Release Beta, April 2004
Framework based upon a decade of Lean Aerospace Initiative research and industry/government implementation
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Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
One Approach: Value in PD Emerges Through Uncertainty Reduction
Activities accumulate information, eliminate risk, use resources
Risk
Info
Process
Outcome
Value
Value
Realized
Time
Adapted From Chase, “Value Creation in the Product Development Process”, 2001.
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Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
A Framework for Reducing Uncertainty in PD
Uncertainties
• Lack of Knowledge
• Lack of Definition
• Statistically
Characterized
Variables
• Known Unknowns
• Unknown Unknowns
Risks/
Opportunities
•
•
•
•
•
•
•
•
Disaster
Failure
Degradation
Cost/Schedule (+/-)
Market shifts (+/-)
Need shifts (+/-)
Extra Capacity
Emergent
Capabilities
Mitigations/
Outcomes
Exploitations
•
•
•
•
•
•
•
•
•
Margins
Redundancy
Design Choices
Verification and Test
Generality
Upgradeability
Modularity
Tradespace Exploration
Portfolios&Real Options
•
•
•
•
•
•
Reliability
Robustness
Versatility
Flexibility
Evolvability
Interoperability
<Uncertainty> causes <Risk> handled by
<Mitigation> resulting in <Outcome>
Source: HL McManus and Daniel Hastings, Presentation at INCOSE 2005 - Rochester NY, July
2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Value Measurement
•
EVMS is commonly a common measure of “value” in PD
•
Typically generated from WBS at project launch
• Relationship to underlying processes varies
• Level of detail can make it difficult to get program-level
perspective on state of work completed, in-process, waiting, or
otherwise in play
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Waste Drivers – The Causes of Waste
Handing task over
to colleague
Main Categories of Waste Drivers
Large information
buffers
Inventory
Handoffs
A
Waiting
… and 6 other
Reinvention
Engineers waiting
for data
… and 36 other
Source: Christof Bauch, Lean Product Development enabling display: Making waste transparent, TUM Thesis 2004
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Lecture #8: October 05, 2005
Poor knowledge reuse
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Complete Framework for Causes of Waste in
Product Development
Exceeding capacity
utilization
Unnecessary detail and
accuracy
Use of inappropriate tools/
methods
Unnecessary features and
processes
Excessive approvals
High system variability
Lack of direct access
Large batch sizes
Queues on the critical path
Remote locations
Excessive transactions
Inappropriate use of
competency
Excessive data traffic
Obvious Waste drivers
- Sub-categories -
Information hunting
Unnecessary testing
equipment and prototypes
Excessive data storage
Handoffs
4
Stop and go tasks/ Task
switching
3
Over processing
Movement
5
Inventory
Poor synchronisation as
regards time and capacity
Ineffective Communication
Time
Waiting for data, answers,
specifications,
requirements, test results
approvals, decisions,
releases, review events,
signs
Information is waiting for
people
Waiting for capacity
available (human or
machine)
2
Obvious Waste drivers
- Main categories -
Resources/Capacity
Info/Knowledge
Transport/ Handoffs
6
Overproduction/
Unsynchronized processes
Waste
1
Quality
Waiting
Poor synchronisation as
regards contents
Over-dissemination of
information
Opportunity
Redundant tasks
10
Flexibility
What can be wasted?
7
Defects
Limited IT resources
8
9
Deficient information
quality
Reinvention
Lack of system discipline
Poor compatibility
Erroneous data and
information
Poor testing and
verification
Poor capability
Incompetence/ poor
training
Low capacity
Unclear goals and
objectives
Poor design re-use
Poor schedule discipline
Unclear roles,
responsibilities and rights
Insufficient readiness to
cooperate
Unclear rules
Source: Christof Bauch, Lean Product Development enabling display: Making waste
transparent, TUM Thesis 2004
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Lecture #8: October 05, 2005
Poor knowledge re-use
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Tracking Waste in Programs Using Swim-Lane VSM
Task #1(5day)
Group
A
Task #1 (5day)
#1 Rework
(3day)
Task #4
Task #4 (5day)
Task #6 (5day)
Group
B
Task #2
Task #2 (5day)
Hand-off
Task #3
Task #3 (5day)
Task #5 (5day)
Source: Jin Kato, LAI Plenary presentation, March 2004
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Making Processes Flow
ƒ Value Stream Mapping and Analysis required for understanding
ƒ Process mapping and Design Structure Matrix methods most
powerful for process improvement
ƒ Process mapping customized for PD developed
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
F-16 Lean Build-To-Package
Support Center PDVSM Results
Operations initiates
Request for Action
Forward to
Engrg
Engr answer
Log/ Hold in
Backlog
Prepare
Planning Change
Tool
Affected?
Prepare Tool Order
Forward to
Tool Design
Forward to
MRP
Log/ Hold in
Backlog
Log/ Hold in
Backlog
Forward To
Planning
Operations
Uses
Revised
Planning
Forward to
Operations
Log/ Hold in
Backlog
Prepare
Design Change
Prepare Tool
Design Change
Complete
Tooling BTP
Forward to
TMP
Forward to
Tool Mfg..
Forward to
TMP
Log/ Hold in
Backlog
Process Tool Order
Complete Tool
Order Processing
Log/ Hold in
Backlog
Log/ Hold in
Backlog
Accomplish
Tooling Change
Forward to
Operations
Operations
Uses
Revised
Tool
Process Before PDVSM
849 BTP packages
BTP Elements
Worked
Concurrently
Prepare
Design Change
Operations initiates Req.
BTP Integrator
Holds
Meeting
Prepare
Planning Change
Forward To
Operations
Prepare Tool
Design Change
(If Applicable)
Accomplish
Tooling Change
(If Applicable)
Process After PDVSM
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Operations
Uses
Revised
BTP/Tool
Category
Cycle-Time
Process Steps
No. of Handoffs
Travel Distance
Reduction
75%
40%
75%
90%
Source: “F-16 Build-T- Package Support Center Process”, Gary Goodman, Lockheed
Martin Tactical Aircraft Systems LAI Product Development Team Presentation, Jan 2000
Page 15
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
PDVSM Used For Spacecraft
Mechanical Environmental Test
As-Is Process
Time
Category
Test Cycle Time
Labor
Material
Travel Distance
Required
Waste
Value
Added
To-Be Process
Time
Before
After
14.7 Days
8.6 Days
Reduction
41%
$1,687,908
$701,564
58%
$554,304
$132,864
7,200 Feet
76%
92%
85,560 Feet
Critical path system test cycle time reduced by 6 days
Source:Lockheed Martin Missiles and Space Systems
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Additional Tools of Lean Engineering
• Integrated 3-D solids-based design
• Design for manufacturing and assembly (DFMA)
• Common parts / specifications / design reuse
• Dimensional management
• Variability reduction
• Production simulation
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Design for Manufacturing & Assembly
Reduced F/A-18E/F Parts Count
Forward Fuselage
and Equipment
Wings and
Horizontal Tails
C/D Parts
5,907
C/D Parts
1,774
E/F Parts
3,296
E/F Parts
1,033
Center/Aft Fuselage,
Vertical Tails and Systems
C/D Parts
5,500
E/F Parts
2,847
Total*
C/D Parts E/F Parts
14,104
8,099
*Includes joining parts
NAVAIR Approved
for Public Release:
SP168.04
E/F 25% larger and 42% fewer parts than C/D
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
CC84740117.ppt
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Multi-use Parts/Design Reuse
Slat Spar
Made Symmetrical
LH & RH Same
8X Multi-Use
LH & RH Mirror
Slat Spar
Stiffener
3X Multi-Use
LH & RH Mirror
Made Mirror Image
LH & RH Pair Same
2X Multi-Use
LH & RH Same
Slat Spar
Splices
Slat Spar Splices
• Fewer part numbers (so more of each) reduces part cost
• Same multi-use part reduces assembly variation
• Same symmetrical part reduces identification errors
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
Page 19
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Dimensional Management Enabled by Key Characteristics
Key Characteristics: Critical few product features that significantly
affect the quality, performance, or cost of the product
System KCs
Subassembly KCs
Feature KCs
Critical parameters that cannot withstand variation – thus causing
a loss (rework, scrap, repair, or failure) in fabrication / production.
Source: Anna C.Thornton, Variation Risk Management, John Wiley & Sons, Inc. 2004
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Variability Reduction
Dimensional Management
in Product Development
Key
• Coordinated datums and Characteristics
tools
• Geometric dimensioning • Focus on the
and tolerancing
significant few
• Process capability
data
• 3-D statistical modeling
Statistical Process
Control in
Manufacturing
•
•
•
•
Key processes
Control charting
Process improvement
Feedback to design
Lean manufacturing requires robust designs and
capable processes!
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Integrated Product Team
Team
Leader
FUNCTIONAL
REPS
* Program Mgmt
* Engineering
* Manufacturing
Working
together to:
* Logistics
* Test & Eval
•Contracting
•Suppliers
ƒ
Build successful programs
* User
ƒ
Identify and resolve issues
ƒ
Make sound, timely decisions
(All APPROPRIATE Areas)
Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
RTCE Structure Based on ICE
Evolution of a Revolution
•
ICE: “Integrated Concurrent
Engineering”
•
•
Developed initially at JPL’s
Product Design Center in 1994
Further enabled by creation of
ICEMaker© software at Caltech
•
Not talking about the design,
but actually doing the work
together!
•
All design information is passed
through a central server - each
designer has access to the
latest data and sees changes
instantly
Source: David Stagney, presentation at LAI Plenary Conference, March 2003
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
RTCE Team Context
Tremendous Success in the First 9 months!
• Completed at least 20 new product proposals this year
• Trimmed 33% lead time from their standard process
• Created new designs in as little as 4 hours – compared to up to
4 weeks previously
• Distinct Competitive Advantage in time-sensitive situations
• Higher quality designs are being produced
• More detail, earlier in process
• Sharing over 7000 design variables in real time
• Objective decisions
• Focus on System Design - no sub-optimization
• Efficient Process and Motivated Team
Source: David Stagney, presentation at LAI Plenary Conference, March 2003
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 24
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Emerging Vision of Lean PD
• PD process/state awareness and transparency
• Value-driven lean management metrics
• Flow and pull of Information and decisions
• Value stream mapping, improvement activities and
processes on a continuous basis
Built on foundation of stable, consistently executed
processes that are understood, assessed, and
continuously improved by their users
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Creating the Right Products:
Creating product architectures, families, and designs
that increase value for all enterprise stakeholders.
LCC committed
“Fuzzy
“FuzzyFront
FrontEnd”
End”
Challenges
Challenges
100%
80%
Cost Incurred
Understanding
Understandingwhat
whatthe
the
customer
customervalues
values
66%
Deciding
Decidingwhich
whichproduct
productto
to
pursue
pursuefrom
fromamongst
amongst
many
manyopportunities
opportunities
Ease of Change
Conceptual/
preliminary
Design
Detail
design/
development
Production
and/or
construction
Product use/
support/
phaseout/dispos al
Selecting
Selectingthe
theright
right
product
productconcept
concept
Source: Fabrycky & Blanchard
Early
Earlydecisions
decisionsare
arecritical
critical--Disciplined
Disciplinedlean
lean
systems
systemsengineering
engineeringprocess
processisisessential!
essential!
Source: McManus, H.L., Allen Haggerty, Earll M. Murman, “Lean Engineering: Doing the Right Thing Right”, presentation
at 1st International Conference on Innovation and Integration in Aerospace Sciences, August 5, 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Military: Software
Development Value Stream(s)
10101010
1010010
01010...
OFP Value Stream
Delivered
Product
Concept Development
Documentation (Technical Orders)
Government Certification
Support Equipment Software Changes
Multiple Aircraft Sensor Software Changes
Multiple Weapons Software Changes
Weapons & Tactics Trainers
Source: Brian Ippolito, “Identifying Lean Practices for Deriving Software
Requirements”, MIT Master’s Thesis, February 2000
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© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Framework For Effective Front-End Process
Identification
Process Flow
Feedback
Screening
Concept
Development
Business Case
Development
Best
BestPractices
Practices
Identification
Small multidisciplinary
teams
Adequate funding
Multiple requirements
ID methods used
Independent
assessment of
solution
Screening
Senior level decision
Active portfolio
management
Strategic plan and
resource constraints
guide prioritization
Concept
Business Case
Requirements given as
variables within
desired range
Clear, concise product
concept, architecture
and concept of
employment
Team remains intact
throughout process
Data driven tradeoff
analysis - use of
prototypes
Based upon:
• Product lifecycle
strategy
• Fit with product
portfolio
• Returns to
organization
Closure
of
Technical
AND
Business
Case
isisMandatory
Closure
of
Technical
AND
Business
Case
Mandatory
ESD.61J / 16.852J: Integrating the Lean Enterprise
© Eric Rebentisch, 2005
Page 28
Lecture #8: October 05, 2005
Source: J. R. Withlin, “Best Practices in User Needs/Requirements Generation”, MS Thesis, MIT 1994
Massachusetts Institute of Technology
Company A’s Front End Process
Front-End Process Flow
Requirements
Identification
Initial
Screening
Market &
Business
Need,
New Ideas,
Technology
Developments
Program
Initiation
Request
Screening
Committee
Product
Proposal
List
Concept
Development
Commercial
Research
Technical
Research
Feasibility
Phase
Operational
List
Business Case
Development /
Final Screen
Business
Plan
Senior
Committee
Product
Launch
List
Lists maintained by Program Management for the committees
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Lecture #8: October 05, 2005
Source: J. R. Withlin, “Best Practices in User Needs/Requirements Generation”, MS Thesis, MIT 1994
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Performance of Company A’s Front End Process
•
•
•
Single high-level Screening Committee (~7 members, VP level)
•
Oversees both R&D and planning processes across company
•
Approves Program Initiation Requests (PIRs) and commits company
funding ($300M-$1B authority—for reference: 1999 annual sales $2.7B)
Work in process (annual):
•
~100 concept solutions considered
•
~10 become PIRs; 10-20 continue further investigation at lower priority
•
1-4 PIRs approved for development at final screening stage
Cross-functional front end teams (2-9 people) remain intact until
products transition into production
•
•
Conducts both initial studies and more rigorous concept evaluations
Process cycle times:
•
Identification: Screening Committee meets every 6-8 weeks
•
Concept evaluation: 90-180 days
•
New product cycle time: 2-4 years
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Lecture #8: October 05, 2005
Source: J. R. Withlin, “Best Practices in User Needs/Requirements Generation”, MS Thesis, MIT 1994
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Enterprise Information Systems for PD
• Scope of enterprise-focused PD encompasses
multiple stakeholders, stages of the product
lifecycle
CONCEPT
DESIGN
MANUMANUFACTURING
PRODUCT
SUPPORT
RETIREMENT
Customer
Partners
Suppliers
Low Tier Suppliers
Lower Tier Suppliers
Source: Erisa Hines, Lifecycle Perspectives on Product Data Management, MIT Master’s thesis, August 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
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Page 31
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
PDM Systems in Context
• PDM is currently largely focused on engineering
• One part of a larger IT infrastructure
• Many “home grown” applications driven by engineering
• Enterprise IT infrastructure handles broader set of
functions
ERP
MRP
PDM
CONCEPT
DESIGN
MANUMANUFACTURING
PRODUCT
SUPPORT
RETIREMENT
Source: Erisa Hines, Lifecycle Perspectives on Product Data Management, MIT Master’s thesis, August 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 32
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Current Issues with PDM Use
• PDM remains focused on the design stage
• Suppliers moving up the food chain: Need for product
data management capability
• Change management and data migration are the biggest
challenges/pitfalls
• Lean principles and practices should be used when
implementing PDM capability
• PDM enables Lean Enterprise Transformation
• opportunity to address enterprise value stream
Source: Erisa Hines, Lifecycle Perspectives on Product Data Management,
MIT Master’s thesis, August 2005
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 33
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Cross-Platform Commonality Yields Significant PD Benefits in the Auto Industry
• Result of concurrent technology transfer and multi-project
management
• Data based on 6-year MIT IMVP study of 17 auto manufacturers,
103 new programs
50
40
Percent
Reduction
30
20
10
0
Develop. Lead Time
No. of
Cost
Prototypes
Cusumano and Nobeoka, “Thinking Beyond Lean,” 1998.
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Eng. Hours
Page 34
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Many Opportunities to Benefit from Commonality
in Aerospace Systems Over System Lifecycle
Reduced
Higher
Greater
Shared
Reduced Higher
complexity
spares
interoperability
development tooling
productivity availability in supply
costs
Fewer
Reduced
Reduced Reduced
Reduced
maintenance
Higher
cycle time
spares
rework
hours
reliability downtime
Design
inventory
reuse
Rqmts
PD
Production
Operations
Reduced
DMS
Process
Reduced
reuse
Lower
Reduce
training
Increased
risk
Reduced
training
equipment
operator
testing
Reduced
time
Economies
competency
time for Faster
of scale
Reduced Reduced
source solutions to
Reduced
support
selection problems
documentation
inventory
equipment
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 35
Lecture #8: October 05, 2005
Source: Matt Nuffort and Eric Rebentisch, LAI Plenary Conference Presentation, April 2001
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Subsystem Commonality Across Product Lines Reduces Design, Operations & Support Costs
• Commercial Airline:
• Main engine starter is common across 747-400, 767, and
767-300ER
• 26 airports service these aircraft (11 common)
• Airline only has to stock 14 spares, as opposed to 25 if they
were not common
• Military Helicopters:
• 85% commonality between UH-1Y and AH-1Z reduces the
detachment maintenance personnel requirement from
between 4 and 14 people (3 to 12%)
Source: “Managing Subsytems Commonality”, Matt Nuffort and
Eric Rebentisch, LAI Presentation, Apr 10, 2001
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 36
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Increased PD Performance Using Product Line Discipline
Organizational Data
Time Implementing PLE (years)
Market Share (%)
Overall Size (no. of people)d
Number of Platforms
Number of Derivatives
PLE Ratio (Derivatives/Platforms)
PLE Cycle Time Ratio (Derivative Cycle
Time/Platform Cycle Time)
A
10+
75b
5500
5
12
2.4
0.25
B
4
94c
2000
6
9e
1.5
0.5
C
2a
60b
1300
1
0
0
0.35f
D
10
55
5000
8
24
3
0.24
• Firms A and D have relatively more mature PLE capabilities
• Long history of using the strategy
• Greater number of derivatives per platform
• Shorter product cycle times through derivatives
Source: Michelle Beckert, Organizational Characteristics for Successful Product Line Engineering, MIT Master’s thesis, June 2000
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 37
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Conclusions
• Lean has demonstrated significant product developmentrelated performance improvements in
•
•
•
•
Engineering processes
Program outcomes
Company-level performance
Multi-stakeholder enterprise and system lifecycle
• Basics of value stream mapping, waste elimination, focus on
value, and continuous improvement can be applied in a
straightforward way
• PD increases focus on information management and decisionmaking processes across multiple boundaries/stakeholders
• Tools to reduce variation, uncertainty, novelty/exceptions, and
programmatic disruptions (beginning at the front end of PD
through production) enable increased focus on value creation
for customer
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 38
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Resources
• LAI web site (lean.mit.edu)
• Product lifecycle knowledge area
• Presentations:
• Product Development/Product Lifecycle meetings
• LAI Plenary conference breakouts
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 39
© Eric Rebentisch, 2005
Massachusetts Institute of Technology
Acknowledgements
• Allen Haggerty - MIT,
Boeing (ret.)
• Ronald Bengelink - ASU,
Boeing (ret.)
• John Coyle - Boeing
• Earll Murman - MIT • Bo Oppenheim - Loyola
Marymount
• Alexis Stanke - MIT
• Chuck Eastlake - EmbryRiddle
• Edward Thoms Boeing, IDS
• Dick Lewis - Rolls-Royce
(ret.)
• Stan Weiss - Stanford, Lockheed Martin (ret.)
• Jan Martinson - Boeing,
IDS
• Venkat Allada - U MO Rolla
• Hugh McManus - Metis
Design
ESD.61J / 16.852J: Integrating the Lean Enterprise
Lecture #8: October 05, 2005
Page 40
© Eric Rebentisch, 2005
Massachusetts Institute of Technology