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Lean Engineering Product Development
Professor Debbie NightingaleSeptember 25, 2002
2Deborah Nightingale, MIT © 2002
Lean Engineering Learning Points
Lean applies to engineeringEngineering requires a processDifferent from manufacturing
Lean engineering process eliminates waste and improves cycle time
Make sequential processes flow seamlesslyManaging iteration to avoid unplanned rework
Efficient and standard process enables better engineeringIntegrated Product and Process development (IPPD) is critical for lean enterprise
3Deborah Nightingale, MIT © 2002
Process is Important in Engineering
For this discussion, “Engineering” is defined as preliminary and detailed design and analysis, process design, and validation and verification
Concept Development
System-Level Design
Detail Design
Testing and Refinement
Production Ramp-Up
From Ulrich & Eppinger, Product Design and Development, 1995
Phases of Product Development Most relevant to processes in these phases
4Deborah Nightingale, MIT © 2002
Lean Engineering Requires a Process
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 )
Pure Waste
Value Added
Necessary Waste
Inspiration
“Invention is 1% inspiration and 99% perspiration” - TA Edison
“Product development is 1% inspiration, 30% perspiration, and 69% frustration” - HL McManus
5Deborah Nightingale, MIT © 2002
Application of Lean to Engineering -Traditional Womack and Jones
Understand Process
Eliminate Waste Radical Change
Precisely specify value by specific productIdentify the value stream for each productMake value flow without interruptionsLet the customer pull value from the producerPursue perfection
6Deborah Nightingale, MIT © 2002
Process enables innovation and cuts cycle time
Process repeatable without errors
Perfection
Driven by needs of enterprise
Driven by Takt time Customer pull
Iterations often beneficial
Iterations are wasteMake process flow
Information & knowledge
Parts and material
Identify Value Stream
Harder to see, emergent goals
Visible at each step, defined goal
Define ValueEngineeringManufacturing
Engineering & Manufacturing Have Similarities and Differences
Source: Lean Aerospace Initiative
7Deborah Nightingale, MIT © 2002
Engineering Value is Emergent
Adapted From Chase, “Value Creation in the Product Development Process”, 2001.
Time
Valu
e
Risk Info
Activities accumulate information, eliminate risk, use resources
ValueRealized
ProcessOutcome
8Deborah Nightingale, MIT © 2002
Program Phase
% o
f Pro
gram
s Ove
r Cos
t
From Hoult et al., “Cost Awareness in Design: The Role of Data Commonality”, 1995.
No DatabaseCommonality
Some
Best Practice
Engineering Requires the Seamless Flow of Information and Knowledge
0
5
10
15
20
25
30
35
R&D ConceptDef.
ConceptAsses
Prelim.Design
DetailDesign
Fab&test SalesO&S
Information can be an IT problem - solutions exist, but are not easyKnowledge is a people problem -requires communication - this is hard!
9Deborah Nightingale, MIT © 2002
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)
Task ActiveTask
Idle
Pull achieved when engineering cycle times are as fast or faster than the customer’s need or decision cycle
10Deborah Nightingale, MIT © 2002
CategoryCategory % Reduction% ReductionCycle-TimeProcess StepsNumber of HandoffsTravel Distance
75%40%75%90%
Scope: Class II , ECP Supplemental, Production Improvements, and Make-It-Work Changes Initiated by Production RequestsValue stream simplified, made sequential/concurrentSingle-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
Co-Location Improves Integration
11Deborah Nightingale, MIT © 2002
The Seven Info-Wastes
Unnecessary serial production; Excessive/custom formatting; Too many iterations
7. Processing
Haste; Lack of reviews, tests, verifications;Need for information or knowledge,data delivered
6. Defective Products
Late delivery of information;Delivery too early (leads to rework)
5. Waiting
Lack of direct access;Reformatting4. Unnecessary Movement
Information incompatibility; Software incompatibility; Communications failure; Security issues
3. Transportation
Lack of control; Too much in information;Complicated retrieval; Outdated, obsolete information
2. Inventory
Creation of unnecessary data and information;Information over-dissemination; Pushing, not pulling, data
1. Over-production
Source: Lean Aerospace Initiative
12Deborah Nightingale, MIT © 2002
Making Processes Flow
SystemRequirements
Choose PreliminaryConfiguration
1
ET: 8/50 daysHIP: 60/457 hrsCT: 50 hrsC: $4500V: 33
Perform AeroAnalysis
3
ET: 7/50 daysHIP: 42/457 hrsCT: 39 hrsC: $1075V: 20
Create Ext & MechDrawings
2
ET: 3/50 daysHIP: 15/457 hrsCT: 12 hrsC: $475V: 17
DetermineStructural Rqmts
5
ET: 3/50 daysHIP: 21/457 hrsCT: 18 hrsC: $675V: 8
Create StructuralConfiguration
4
ET: 5/50 daysHIP: 25/457 hrsCT: 22 hrsC: $950V: 13
Perform LoadsAnalysis
8
ET: 7/50 daysHIP: 41/457 hrsCT: 37 hrsC: $1525V: 25
Perform Stability &Control Analysis
7
ET: 8/50 daysHIP: 50/457 hrsCT: 45 hrsC: $4100V: 18
Perform WeightAnalysis
6
ET: 4/50 daysHIP: 23/457 hrsCT: 20 hrsC: $1325V: 19
CreateManufacturing Plan
11
ET: 12/50 daysHIP: 79/457 hrsCT: 59 hrsC: $2225V: 34
Perform SS&LAnalysis
10
ET: 5/50 daysHIP: 43/457 hrsCT: 38 hrsC: $2975V: 38
Develop FiniteElement Model
9
ET: 4/50 daysHIP: 21/457 hrsCT: 19 hrsC: $1350V: 22
Develop DesignReport/ Pres .
12
ET: 4/50 daysHIP: 37/457 hrsCT: 30 hrsC: $2225V: 35
Mgt
Rev
iew
, For
mat
ting
Form
attin
g
Mfg
Rev
iew
Eng
Rev
iew
Mgt
Rev
iew
major value tasks
From Millard, “Product Development Value Stream Analysis and Mapping”, 2001
Value Stream Mapping and Analysis required for understandingProcess mapping and Design Structure Matrix methods most powerful for process improvementProcess mapping customized for PD developed
13Deborah Nightingale, MIT © 2002
Results: Engineering Release Process
Reduced Cycle time by 73%Reduced Rework of Released Engr. from 66% to <3% Reduced Number of Signatures 63%
Traditional Lean
Cycle Time
Std Dev
Tim
e
Value stream mapped and bottlenecks found
Process rearranged for sequential flow
Waiting and delays removed
Source: Lean Aerospace Initiative
14Deborah Nightingale, MIT © 2002
Complexity may Require Iteration
Engineering release process prior state
New Requirement
Schedule
Review
PR’s
Write EDA
Basic Layout
FAMSCO
Write PS
Assign Task
Detailed Layout
Layout from Config
STRESS
Assy Drawing
Detail Drawing
CHECKBOARD RELEASECENTERSIGNOFF
NEAR
DCCInvestigate
C/A Board
C/A
15Deborah Nightingale, MIT © 2002
Complex Engineering Processes Require 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 reworkWithin an iteration and between iterations make information flow efficientlyAnswer may be faster and more efficient iterations, not necessarily fewer ones
16Deborah Nightingale, MIT © 2002
ManageIteration
SequentialProcess
Discovery
Emergentknowledge
Complexprocess
Rote work
Heldknowledge
Simpleprocess
Choose Approach
Balance Factors
Make Simple Processes Sequential;Manage Iteration of Complex Ones
17Deborah Nightingale, MIT © 2002
Key Learnings
Engineering process is importantEfficiently 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!
18Deborah Nightingale, MIT © 2002
Integrated Product and Process Development (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.
19Deborah Nightingale, MIT © 2002
Integrated Product and Process Development (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.
Conceptualization and Design
Test and Production Sustainment
Cost o
f Cha
nge
High High
Low Low
Num
ber o
f Des
ign
Cha
nges
Dol
lars
TraditionalIPPD
Traditional vs IPPD Approach
Deborah Nightingale, MIT © 2002
21Deborah Nightingale, MIT © 2002
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
22Deborah Nightingale, MIT © 2002
IPPD Key Tenets
Event-Driven Scheduling
Multidisciplinary Teamwork
Empowerment
Seamless Management Tools
Proactive Identification and Management of Risk
23Deborah Nightingale, MIT © 2002
Benefits of IPPDReduced overall time for product delivery.
Reduced system (product) cost.
Reduced risk.
Improved quality.
Improved response to customer needs.
24Deborah Nightingale, MIT © 2002
Integrated Product Team
Build successful programs
Identify and resolve issues
Make sound, timely decisions
Working together to:TEAM
TeamLeader
FUNCTIONALREPS
* Program Mgmt* Engineering* Manufacturing* Logistics* Test & Eval•Contracting•Suppliers* User(All APPROPRIATE Areas)
25Deborah Nightingale, MIT © 2002
Multi-Program Enterprise Impacts
Research examples where time/cost delays due to infrastructure issues beyond the specific program
Access and availability of enterprise resourcesSpace system testing example
Use of commonality to support operations not just design
26Deborah Nightingale, MIT © 2002
Analysis of Spacecraft Test Discrepancies
Over 23,000 discrepancies from over 20 programs, encompassing over 225 spacecraft
0
5
10
15
20
25
30
35
Employee-Operator
Design Material Equipment Software No Anomaly Unknown OtherRoot Cause Category
CommunicationsMissions
OtherMissions
Mean Confidence In terval •Median
On a per spacecraft basis almost 50% of discrepancies are causedby workforce and equipment issues common to many programs
Source: LAI Product Development Team
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