www.strategyscienceinc.com
Brent Wahba
Page 1
Summary
If only we could
develop better,
easier to make
products in half
the timewith
much less stress!!!
Brent Wahba
Oh thank you
Lean Product
Development
Consulting Man!
Youve saved
the day AGAIN!!!
Page 2
Only 1 in 3,000
ideas becomes
a commercial
success
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Brent Wahba
Page 3
12 Month delay = 50% revenue loss in slow markets, 90% in fast markets (IBS)
Optimal
Entry
Late
Entry
Introduction
Growth
Maturity
Brent Wahba
Decline
LIPPD Ontario PDMA 3_30_10.ppt
Time
Page 4
70%
Accounting Cost
60%
50%
40%
30%
20%
10%
0%
Design
Material
Burden
Brent Wahba
Labor
Page 5
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Brent Wahba
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Knowing which
5 7 criteria
customers buy
based on?
50% Less
development
lead time,
30% lower total cost,
with 25% fewer
resources?
75% Less
Production
Scrap?
95 % Less
prototype
lead time?
> 75%
Commercial
successes?
Brent Wahba
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Brent Wahba
Page 9
2 P.O. / Week
Fax
1 Order / Day
Phone
Sales
Production
Control
1 Shipment
/ Week
In
2
Coffee
Job
Packet
Production
Authorization
P/T = 15 min
L/T = 600 min
%C&A = 95%
In
1
FIFO
P/T = 5 min
L/T = 120 min
%C&A = 98%
Mug-O-Rama
1 Shipment
/ Day
Phone
Mix
I
1
Form
I
500
Glaze
I
500
Fire
I
2000
Pack
I
1
P/T = 30 min
L/T = 1200 min
%C&A = 95%
P/T = 1 min
L/T = 250 min
%C&A = 99%
P/T = 1 min
L/T = 250 min
%C&A = 65%
Brent Wahba
P/T = 1 min
L/T = 180 min
%C&A = 65%
Page 10
Customers
Product Development:
Creating Production
Value Streams
Product Development
R&D
Manufacturing
Design
Supply Chain
Supplier Selection
Distribution
Process Development
Service
Continuous Improvement
Customers
Tooling Implementation
Test and Validation
Continuous Improvement
All Rights Reserved Please Do Not Copy Without Permission
Brent Wahba
Page 11
Product Development
Customer Needs
Problems to solve
What customers value
What they will pay for
Voice of the Customer
Organizational Needs
Strategy, growth, profit
Standardized work
Internal requirements
Regulatory requirements
Competitive, profitable,
capable, optimized:
Simple, Standardized,
Efficient, Robust,
Development Process
Brent Wahba
Product Definition,
Service Definition,
Process Definition &
Production Value Streams
Page 12
Scientific Method
Egypt, Socrates, Bacon, Galileo
1600 BC 1600 AD
1st
Ransom Olds
Auto Assembly Line
1901
WWII
Takt Time, TWI
1940s
Venetian Arsenal
Standardization, Quality
1320
Honor Blanc
Interchangeable Parts
1780
Deming
PDCA, People, Quality
1950s
Eliyahu Goldratt
Constraints, Systems
1984
Brent Wahba
Meat Packing
(Dis)assembly Line
1867
Today
1991
Page 13
Lean
Delivering the most customer value
while consuming the fewest resources
Customer focus
Brent Wahba
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Lean
Product
Development
(LPD)
Design
For
Six Sigma
(DFSS)
Project
Management
Systems
Engineering
(SE)
Brent Wahba
Page 15
Modified
6 Sigma /
Problem
Solving
Toyota
Queuing
Theory /
Flow
Waste
Reduction
Design
Tools
Project
Management
Systems
Engineering
/ Software
Methods
Fake
Lean
Al
Ward
Organic
Growth
Model
Which is best?
What problem(s) are you solving?
Do you want to change process and / or culture?
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Brent Wahba
Page 16
Brent Wahba
Page 17
Increase learning
Manage high risk / high reward alternatives
Brent Wahba
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Brent Wahba
Page 19
Executives
A P
C D
Strategies
Business Objectives
Financial Performance
C
Learning /
Problem Solving
Cycle
Managers
Teams &
Individuals
A P
C D
A P
C D
A P
C D
Grasp
A P
Cthe
D
Situation
A P
C D
A
C
Goals
Budgets
Operations
P
Schedules
D
Projects
A P
C D
A P
C D
Assignments
Rates
Quality
Standards
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Grasp
the situation,
Create pull for
change
End
customers
Production
Customer
Business
Needs
Pull
Projects
Reuse
Learn
first
Experiments
Failures
Fast
Learning
Cycles
C
Lean
Product
Development
System
Small
batch
Managing
Prioritized
Work
Overburden
Quality @ source
Visual
Project management process
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Product
Design
Process design
Value stream design
Production validation
Production handoff
Preparing
for Lean
Production
Team-owned
Solution
emerges
LPD System from experiments
Value stream mapping
Design &
Continuous A3 Problem solving
Improvement Simple tools
Integration & reflection
Brent Wahba
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Customer Needs:
Untested Market Hypotheses?
Brent Wahba
Page 22
Pattys
car needs
service,
getting
old
News
stories
of great
rebates &
deals
What
models?
Check ads
Online
research,
narrow
consideration
set
Biased
analysis,
car
selected
Consider
image impact
where Patty
works
Test drive,
form / verify
opinions
Investigate
pricing and
discounts
Check
ads, decide
potential
dealers
Compare
dealer
prices,
assess
honesty
Negotiate
deal,
purchase
Pick up
car, quality
items not
fixed
Bad
service /
bad salesman
experience
Bad
service
experience,
complaints
Brent Wahba
Page 23
What We
Can Do
Strategic
Planning
Market
Research
Product
Management
Pricing /
Placement /
Promotion
Selling
Service
/ Help
Feedback
Product /
Value
Specific
Process
Stream
Start-Up Production
R&D
Development Implement
Product Development
Service
/ Help
Feedback
Make / Deliver
Brent Wahba
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QRD
Market A
Market B
Market C
Us
Attribute 1
2L
Attribute 2
10
20
10
7J
15
20
Attribute 3
Attribute 4
Yes
No
Yes
Attribute 5
Blue
Blue, red
Red
Attribute 6
5 ppm
3 ppm
12 ppm
Local rep.
Regional rep.
Local rep.
Use Visual
management
to highlight
gaps
Attribute 7
Delivery
Service
Attribute 8
etc. etc.
Critical Attributes
Performance
Attribute 9
Attribute 10
Attribute 11
Attribute 12
Attribute 13
All-Asia
Attribute 14
Attribute 15
Foam
Cardboard
Market,
Customer,
Program
Wood
Call out
requirement
used for
comparison
Attribute 16
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Customer
Higher level /
less detail than
manufacturing
mapping
Review /
Approve
Quote
Review /
Approve
Design
Create
Planning Strategic
Plan
Marketing
Commercial
Sales
Select
Markets
Product
Engineering
Prototype
Test
Manufacturing
Engineering
Purchasing /
Supply Chain
Manufacturing
Process
Tooling
Buyer
Study
Business
Case
Prepare
Quote
Finance
Design
Trigger
Project
Prospect
Current state:
Customer value,
Quality & rework,
Delays & interruptions,
Knowledge growth,
Biases / assumptions,
Prioritize problems
Study
Design
Design
Concept
Future state:
All customer needs,
Quality at handoffs,
Existing solutions,
Solution experiments
Study
Process
Review
Data
Update
Concept
Study
Process
Review
Data
Update
Concept
Study
Investment
Review
Data
Update
Concept
Build
Concept
Test
Concept
Process
Concept
Study
Supply
Base
Select
Suppliers
Quote
Suppliers
Review
Data
Study
Mfg.
Mfg.
Concept
Study
Mfg.
Cost
Review
Data
Brent Wahba
Page 27
Update
Concept
Brent Wahba
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Concept #1
Perceived
Customer
Requirements
Design
Development
Process
Solution
Selected
Process
Development
Production
Concept #3
Design
Solution
Selected
Concept #4
Rework
Rework
Rework
Rework
Rework
Concept #2
Brent Wahba
Page 29
Mapping the
Design / Process /
Customer Space
Define
Narrowing
Criteria
Concept #1
Customer
Concept Narrowing
And Integrating
Final
Definition &
Validation
#1
Technology
Sub-System
A
Concept #2
Concept #3
Manufacturing
Cost
#2
#2
#3
Quality
Concept #4
Suppliers
#4
#4
Concept #1
Customer
#1
#1
#2
#2
Technology
Sub-System
B
Concept #2
Concept #3
Manufacturing
Cost
Choose optimal
intersection of
sub-systems
Suppliers
Final
Concept
#3
Quality
Concept #4
Final
Concept
Brent Wahba
Page 30
Learning Cycle
Outline
System
Structure
Detailed
Design,
Process,
Value Stream,
Validation
Mapping the
Design / Process /
Customer Space
Learning, Narrowing,
& Integrating
Fast,
Standardized,
No Surprises
Final
Design,
Process, &
Value Stream
in Production
No Rework
Only Production
Continuous
Improvement
Workload Leveled
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Brent Wahba
Page 31
Customer
Needs
Internal
& Partner
Capabilities
A P
C D
Product
Development
Process
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Brent Wahba
Page 32
9) Other ....................................................................... 3%
All Rights Reserved Please Do Not Copy Without Permission
Brent Wahba
Page 33
Product Development
Process Issues
Knowledge
Management
Issues
Managing Work:
Common Project Management Evolution
1. Under-defined, wasteful, inadequate development process
2. Standardized statements of work by organizational function
3. Gates / quality checks
4. Training
5. Major quality reviews
6. Automation
7. Training
8. Kaizen workshop
9. Training
10. New methodology
11. etc
Every change implies a different process. Why?
What problem is each step trying to solve?
What is the real root cause?
All Rights Reserved Please Do Not Copy Without Permission
Brent Wahba
Page 34
Product Development
Continuous
Improvement
Brent Wahba
Page 35
Brent Wahba
Page 36
Target
Customers
Strategy
Quote /
Specs
Prototype
1
Quote /
Specs
Prototype
2
Quote /
Specs
Approval
Parts
Production
Parts
What is the
Product?
What is the
Process?
What is the
Value Stream?
Do we Meet
Customers
Requirements?
Do we Meet
Internal
Requirements?
Learning /
Problem
Solving
Brent Wahba
Page 37
Managing Work:
Organizational Capacity vs. Requirements
Market A
Product
3
Market C
Product
1
Market B
2008
2008 1/2
2009
2009 1/2
2010 1/2
2011
2011 1/2
2012
All Good
Product
2
Warning
All Good
Product
4
Value
Stream
1
2010
All Good
Danger!
Value
Stream
2
All Good
Brent Wahba
Page 38
Requirements
Defined
Quote
Prototype
Plan:
9/1/05
10/1/05
Actual:
9/1/05
10/1/05
Validation
Production
Design
Start of
Production
Continuous
Improvement
11/1/05
1/15/06
2/1/06
4/1/06
4/15/06
11/1/05
1/15/06
2/1/06
4/1/06
4/15/06
Project 1
Project 2
Plan:
9/1/05
10/1/05
11/1/05
1/15/06
3/1/06
4/1/06
4/15/06
Actual:
9/1/05
11/1/05
12/1/05
2/15/06
3/15/06
4/15/06
5/1/06
Plan:
9/1/05
10/1/05
11/1/05
1/15/06
3/1/06
4/1/06
4/15/06
Actual:
9/1/05
11/1/05
12/1/05
1/15/06
2/1/06
4/1/06
4/15/06
Project 3
Brent Wahba
Page 39
Week
8
10
11
12
13
14
15
16
17
18
Design
Test
Process
Purchasing
Finance
Manufacturing
Customer
Deliverable
Team
Deliverable
Brent Wahba
Deliverable
is Late!
LIPPD Ontario PDMA 3_30_10.ppt
Page 40
19
20
Brent Wahba
Page 41
Rank
# of Complaints
35,631
26,723
12,958
12
11,157
39
4,303
44
4,073
61
3,075
Auto manufacturers
108
1,749
Business consultants
127
1,407
590
2,408
Majority of auto
complaints are
value stream /
service related
Zinc oxide
Brent Wahba
Page 42
Please visit a participating KFC restaurant for a rain check form. Complete the
form, attach your original coupon , and give it to the KFC restaurant manager
or postmark per the forms instructions, by May 19, 2009, and well send you a
rain check for your free Kentucky Grilled Chicken meal at a later date, plus a
free Pepsi with our compliments. Your participating KFC restaurant will provide
you with the form you need.
Please note that the redemption periods of the rain checks will vary. All other
terms and conditions of the original free Kentucky Grilled Chicken coupon will
apply.
Brent Wahba
Page 43
Brent Wahba
Page 44
Brent Wahba
Page 45
2 P.O. / Week
Fax
1 Order / Day
Phone
Sales
Production
Control
1 Shipment
/ Week
In
2
Coffee
Job
Packet
Production
Authorization
P/T = 15 min
L/T = 600 min
%C&A = 95%
In
1
FIFO
P/T = 5 min
L/T = 120 min
%C&A = 98%
Mug-O-Rama
1 Shipment
/ Day
Phone
Mix
I
1
Form
I
500
Glaze
I
500
Fire
I
2000
Pack
I
1
P/T = 30 min
L/T = 1200 min
%C&A = 95%
P/T = 1 min
L/T = 250 min
%C&A = 99%
P/T = 1 min
L/T = 250 min
%C&A = 65%
Brent Wahba
P/T = 1 min
L/T = 180 min
%C&A = 65%
Page 46
Mapping the
Design / Process /
Customer Space
Define
Narrowing
Criteria
Concept #1
Customer
Concept Narrowing
And Integrating
Final
Definition &
Validation
#1
Technology
Sub-System
A
Concept #2
Concept #3
Manufacturing
Cost
#2
#2
#3
Quality
Concept #4
Suppliers
#4
#4
Concept #1
Customer
#1
#1
#2
#2
Technology
Sub-System
B
Concept #2
Concept #3
Manufacturing
Cost
Choose optimal
intersection of
sub-systems
Suppliers
Final
Concept
#3
Quality
Concept #4
Final
Concept
Brent Wahba
Page 47
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Page 49
5. Implementation plan:
When does the business need it completed?
Does the organization have enough capacity?
What are reasonable chunks to work on?
What simple experiments will test your future state vision (hypotheses)?
Plan Do Check Adjust
Honest reflection and improvement
All Rights Reserved Please Do Not Copy Without Permission
Brent Wahba
Page 50
About Us
Strategy Science Inc. is a global product development, strategic planning, and sales &
marketing consulting / training firm.
We support you with organizational problem analysis, training combined with pilot
projects, and management coaching.
Our work is custom tailored to your specific needs. We work closely with you to jointly
uncover gaps, create solutions, and implement rather than forcing our own set of favorite
solutions.
We are a network of 10 experienced practitioners with extensive knowledge of how to
best implement what we teach.
To learn more, please visit our website: www.strategyscienceinc.com or contact our
president, Brent Wahba, at (585) 315-7051 / brentwahba@strategyscienceinc.com
All Rights Reserved Please Do Not Copy Without Permission
Brent Wahba
Page 51
Thank You!!!
Brent Wahba
Page 52