Lean Engineering Product Development Professor Debbie Nightingale September 25, 2002

1. Lean Engineering Product Development Professor Debbie Nightingale September 25, 2002

2. Lean Engineering Learning Points • Lean applies to engineering • 􀂃 Engineering requires a process • 􀂃 Different from manufacturing • Lean engineering process eliminates waste and improves cycle time • Make sequential processes flow seamlessly • Managing iteration to avoid unplanned rework • Efficient and standard process enables better engineering • Integrated Product and Process development (IPPD) is critical for lean enterprise

3. Process is Important in Engineering • For this discussion, “Engineering” is defined as preliminary and detailed design and analysis, process design, and validation and verification Phases of Product Development Most relevant to processes in these phases Concept Development System-Level Design Detail Design Testing and Refinement Production Ramp-Up From Ulrich & Eppinger, Product Design and Development, 1995

4. Lean Engineering Requires aProcess • “Invention is 1% inspiration and 99% perspiration” – TA Edison • “Product development is 1% inspiration, 30% perspiration, and 69% frustration” - HL McManus • 􀂃 Engineering processes often poorly • defined, loosely followed • (LAI Case Studies) • 􀂃 40% of design effort “pure waste” • 29% “necessary waste” • (LAI Workshop Survey) • 􀂃 30% of design charged time “setup • and waiting” • (Aero and Auto Industry Survey ) Inspiration Value Added Pure Waste Necessary Waste

5. Application of Lean to Engineering -Traditional Womack and Jones • Precisely specify valueby specific product • Identify the value streamfor each product • Make value flowwithout interruptions • Let the customer pullvalue from the producer • Pursue perfection Understand Process Eliminate Waste Radical Change

6. Engineering & Manufacturing HaveSimilarities and Differences Source: Lean Aerospace Initiative

7. Engineering Value is Emergent Activities accumulate information, eliminate risk, use resources Process Outcome Risk Info Value Value Realized Time Adapted From Chase, “Value Creation in the Product Development Process”, 2001.

8. Engineering Requires the SeamlessFlow of Information and Knowledge • Information can be an IT problem – solutions exist, but are not easy • Knowledge is a people problem – requires communication – this is hard! % of Programs Over Cost R&D Concept Def. Concept Asses Prelim. Design Fab&test Sales O&S Detail Design Program Phase From Hoult et al., “Cost Awareness in Design: The Role of Data Commonality”, 1995.

9. Communication Key to Flow and Pull • Flow cannot be achieved until engineering processes move and communicate without errors or waiting • 62% of tasks idle at any given time (detailed member company study) • 50-90% task idle time found in Kaizen-type events (case studies) • Pull achieved when engineering cycle times are as fast or faster than the customer’s need or decision cycle Task Active Task Idle

10. Co-Location Improves Integration • Scope: Class II , ECP Supplemental, Production Improvements, and Make-It- Work Changes Initiated by Production Requests • Value stream simplified, made sequential/concurrent • Single-piece flow implemented in co-located “Engineering cell” • Priority access to resources 849 BTP packages from 7/7/99 to 1/17/00 Source: Hugh McManus, Product Development Focus Team LAI - MIT

11. The Seven Info-Wastes Source: Lean Aerospace Initiative

12. Making Processes Flow • Value Stream Mapping and Analysis required for understanding • Process mapping and Design Structure Matrix methods most powerful for process improvement • Process mapping customized for PD developed From Millard, “Product Development Value Stream Analysis and Mapping”, 2001

13. Results: Engineering Release Process • Value stream mapped and bottlenecks found • Process rearranged for sequential flow • Waiting and delays removed • Reduced Cycle time by 73% • Reduced Rework of Released Engr. from 66% to <3% • Reduced Number of Signatures 63% Time Traditional Lean Source: Lean Aerospace Initiative

14. Complexity may Require Iteration • Engineering release process prior state

15. Complex Engineering ProcessesRequire Efficient Iterations AND Flow • Understand how iterations reduce risk and/or handle emergent knowledge • Don’t set up iterations that have large time lags that can cause unnecessary rework • Within an iteration and between iterations make information flow efficiently • Answer may be faster and more efficient iterations, not necessarily fewer ones

16. Make Simple Processes Sequential;Manage Iteration of Complex Ones Rote Work Discovery Simple Process Complex Process Held knowledge Emergent knowledge Balance Factors Sequential Process Manage Iteration Choose Approach

17. Key Learnings • Engineering process is important • Efficiently execute “the fundamentals” • Remove waste and improve cycle time • Iterations are not necessarily waste • When needed (and managed) add knowledge effectively and avoid unnecessary rework Good process is key to effective engineering so LEAN APPLIES!

18. Integrated Product and ProcessDevelopment (IPPD) A management technique that simultaneously integrates all essential acquisition activities through the use of multidisciplinary teams to optimize the design, manufacturing, and supportability of processes.

19. Integrated Product and ProcessDevelopment (IPPD) IPPD facilitates meeting cost and performance objectives from product concept through production, including field support. One of the key tenets is multidisciplinary teamwork through IPTs.

20. Traditional vs IPPD Approach High High Cost of Change Dollars Number of Design Changes Low Low Conceptualization and Design Test and Production Sustainment Traditional IPPD

21. IPPD Key Tenets • Customer Focus • Concurrent Development of Products and Processes • Early and Continuous Life Cycle Planning • Maximize Flexibility for Optimization and Use of Contractor Approaches • Encourage Robust Design and Improved Process Capability

22. IPPD Key Tenets • Event-Driven Scheduling • Multidisciplinary Teamwork • Empowerment • Seamless Management Tools • Proactive Identification and Management of Risk

23. Benefits of IPPD • Reduced overall time for product delivery. • Reduced system (product) cost. • Reduced risk. • Improved quality. • Improved response to customer needs.

24. Integrated Product Team FUNCTIONAL REPS Team Leader * Program Mgmt * Engineering * Manufacturing * Logistics * Test & Eval •Contracting •Suppliers * User Working together to: TEAM • Build successful programs • Identify and resolve issues • Make sound, timely decisions (All APPROPRIATE Areas)

25. Multi-Program Enterprise Impacts • Research examples where time/cost delays due to infrastructure issues beyond the specific program • Access and availability of enterprise resources • Space system testing example • Use of commonality to support operations not just design

26. Analysis of Spacecraft TestDiscrepancies Over 23,000 discrepancies from over 20 programs, encompassing over 225 spacecraft On a per spacecraft basis almost 50% of discrepancies are caused by workforce and equipment issues common to many programs Communications Missions Other Missions Mean Confidence In terval Median Percent Discrepancies per Spacecraft Employee- Operator Design Material Equipment Software No Anomaly Unknown Other