Vassilis Tsakiris presentation at PMI-GREECE1/6/2010, AIT

“Shortening the Strategic Lead
Time from Idea to Market”

Εκδήλωση του PMI-GREECE
1/6/2012, AIT
Vassilis Tsakiris
Ocean Star Electronics Ltd.
Vassilis.Tsakiris@os-hk.com Vassilis.Tsakiris@Lean-PMI.com

The Product Development System
The Next Competitive Frontier
 There is direct correlation between
model age and market share

“Clearly the older the model
the lower the market share
– newness wins every time”
according to Merrill Lynch
Shortening the Strategic Lead Time from Idea to Market 2

Combining the knowledge of:

• PDMA
• AIPMM
• PMI
• LEAN
• 6 Sigma
• TOC
• Toyota PDS

Product Development and
Management Association
the premier global organization for
product development and management
PDMA Book of Knowledge:
• 3 Phases: Discovery, Development, Commercialization
• 6 Knowledge Areas
• Technology and IP
• Strategy and Planning Process,
• Execution and Metrics
• People, Teams and Culture
• Customer and Market Research
• Co-Development and Alliances 4

PDMA Product Development and
Management Association

Why PDMA Body of Knowledge?

• to organize, distill and provide access to
knowledge needed for product development

• to include generally agreed to definitions and
summaries of concepts, tools, methodologies
and processes

Product Development & Management
from Opportunities to Profits
$$
The River of Development €€
¥¥
The Ocean of $$
Opportunities The Market €€€
$
Idea /
Concept ££ ¥
Screen
Feasibility Launch
Review Interim
Reviews Review

Key: = Idea & Concepts = Review processes & decisions

= Ongoing Projects = Projects that have been launched

Source: ‘New Product Development’
by Robin Carol ,CEO, PDMA & Beebe Nelson Co-Director, IAPD

The world’s leading organization
for the project management profession
• Project Management BOK
42 Processes from 9 Knowledge areas and 5 Process Groups
• The Standard for Program Management
• The Standard for Portfolio Management
• The Standard for Organizational Project Management
Maturity Model (OPM3)
488 Best Practices for Continuous Improvement
7

Principles of Lean
Creating more value
with less resources
• Identify all the steps in the value stream for each product family,

eliminating those steps that do not create value
• Make the value-creating steps occur in tight sequence so the product will

flow smoothly toward the customer
• begin the process again and continue it until a state of perfection is reached

in which perfect value is created with no waste

Shortening the Strategic Lead Time from Idea to Market
www.lean.org

Value Stream Map - Current State Manuf
Involve
ment

Source Final Re- Design Dev Init Define
Tools Dwgs Design Proto Specs Reqs VOC
Eng /
Eng Sales /
Proc
Services Specs Manf / Specs Eng Specs Eng Reqs
Dwgs Test Lab Eng

P/T = P/T = P/T = P/T = P/T = P/T =
L/T = L/T = L/T = L/T = L/T = L/T =
C&A = C&A = C&A = C&A = C&A = C&A =
Require
ments

ECNs
Suppliers ECNs

Customers

Build Test Prod
Dev Doc Verification
Proto Proto Release
Eng / Eng /
Manf Test Lab Results Docs Docs
Manf Manf

P/T = P/T = P/T = P/T = P/T =
L/T = L/T = L/T = L/T = L/T =
C&A = C&A = C&A = C&A = C&A =

Six Sigma
Methodology
• Define the Customer, their Critical to Quality (CTQ) issues, and
the Core Business Process involved

• Measure the performance of the Core Business Process involved

• Analyze the data collected and process map to determine root
causes of defects and opportunities for improvement

• Improve the target process by designing creative solutions to fix
and prevent problems

• Control the improvements to keep the process on the new
course
www.isixsigma.com

TOC Theory of Constraints

• Problem Solving and
Management/Decision-Making Tools called
the Thinking Processes (TP).

 "What to change?"
 "To what to change?"
 "How to cause the change?"
by Dr. Eliyahu M. Goldratt
www.toc-goldratt.com

Product Development System

Lean Product
Development
System

Shortening the Strategic Lead Time from Idea to Market
Process 13

The TOYOTA Product Development results
(TPDS)

World leading 15% Toyota’s market value Toyota’s market
market share ($177 billion, 2005) value (2005) was
exceeds the combined
of the global market values of General Motors, 13 times that of
(2005) Chrysler, and Ford General Motors

12 months from styling Average vehicle age
39 first place freeze to start of
vehicles since 2001 1.2 years compared
production compared to
the company’s to an average 3
10 first place out of years for
competitor’s 24-30
16 categories (2005) months competitors

Source: The TOYOTA Product Development System: Integrating People,
Process and Technology, J. Morgan, J. Liker, 2006

The 13 principles of TOYOTA TPDS - 1
Process
1. Establish Customer-Defined Value to Separate
Value-Added Activity from Waste

2. Front-Load the product development process
while there is maximum Design Space,
to Explore Alternative Solutions Thoroughly

3. Create a Leveled product development process Flow

4. Utilize Rigorous Standardization to Reduce Variation
and Create Flexibility and Predictable Outcomes

Skilled People
5. Develop a Chief Engineer System to Integrate
Development from Start to Finish
6. Organize to Balance Functional Expertise and
Cross-Functional Integration
5. Develop towering technical competence in all Engineers
6. Fully integrate suppliers into the Product Development
System
7. Build in Learning and Continuous Improvement
8. Build a Culture to support excellence and relentless
improvement

Tools & Technology
11.Adapt technology to fit your People and
Processes

12.Align your Organization through Simple,
Visual Communication

11.Use Powerful Tools for Standardization and
Operational Learning
Source: The TOYOTA Product Development System: Integrating People,
Process and Technology, J. Morgan, J. Liker, 2006

New Product Development System


Stage Gate
vs. Continuous Flow Process
Stage Gate Process

ST.1 ST.2

MARKET
ST.3.1 ST.3.2 ST.4Β
Ideas / Concept ST.4Α ST.5
Project Preliminary Production
Opportu Generation Evaluation Design Detailed Design Readiness Launch
nities

Continuous Flow Development Process

DMAIC methodology


Development Navigation
Toolkit


Map of Deliverables
STAGES 1 & 2


Map of Deliverables
STAGES 3.1 & 3.2


Map of Deliverables
STAGES 4.A & 4.B


PDMA – Product Launch
Overview

Launch Plan Phase Pre-Shipment Phase Post Shipment Phase

Launch Mgt

Marketing

Engineering
Operations
Customer
Support
Sales

Gate 5.1 Gate 5.2

Voice of the Customer –Key points

• Relative importance of each voice is measured
by importance rating
• Competitive evaluation of products or
services permit company to observe how its
products rate on a numerical scale
• Customer complaints serve as an indication of
dissatisfaction


VOC tools – Visit Guide example
(F.1.1.) Customer Visit Guide
Understanding what type of speakers customers would like to have in their home
for a full surround sound experience
Owner: CS
Preparation Date 8/12/2009
Visit Date
Opportunity: THX Certified Surround Sound Speakers
Visit Issues
Theme and intro questions Observations and probes

Do you enjoy movies and music at home? Would you like surround sound?

How much space do you have available in your home for the
Do you have a dedicated home theater area?
setup of the speakers?

Do you have a big screen or a projector? Would you like to enjoy a full sound experience?


VOC tools – Visit Matrix example
Stakeholders

Customer
Customer Product Product Service Marketing Sales
Segmentation Engineer Manager Manager Manager Salesmen Manager

E-shop customers √ √ √
Chainstores
Buyers √ (3 each) √ √ (3 each)

Retail Customers √ √ √ √ (10 each) √

Europe customers √ √

USA customers √ (2 each) √ (2 each)

ASIA customers √ √

UK customers √ √

Greece customers √ √ √ √ √


QFD - Quality Function Deployment
• Process in which ‘voice of the customer’
is heard and deployed

• Orderly, four-phase process:
• Planning
• Designing
• Constructing
• Consistently constructing

• Distinguishes between customer attributes and
product technical characteristics

QFD - Quality Function Deployment

Customer Attributes


WHAT DOES QFD DO?
Better Designs in Half the Time!
CONCEPT

Plan Design Redesign Manufacture

“Traditional Timeline”
Plan Design Redesign Manufacture Benefits

QFD is a Productivity Enhancer

QFD sample


Lean Development Principles
• Distinguishing between knowledge re-use and
knowledge creation
• Performing development activities concurrently
• Distinguishing between good and bad iterations
• Maintaining a process focus throughout

• Tooling & Materials triggered Study
• Production Feasibility &
considered throughout this
Execution
phase Prototyping

Design Freeze

Creating the Future State Map
• What does the customer really need?
• How often will we check our performance to customer
needs?
• Which steps create value and which steps are waste?
• How can we flow work with fewer interruptions?
• How do we control work between interruption, and
how work will be triggered and prioritized?
• How will we level the workload and/or different
activities?
• What process improvements will be necessary?

Development Waste Examples - 1
Waiting
 Approvals from superiors

 A lack of available capacity

 Input from customers

 System response time

 Completion of other design elements
Source: Value Stream Mapping for Lean Development
Drew A. Locher, 2006

Development Waste Examples -2
Excess Inventory
 Filled-in boxes (electronic or paper)
 Batch processing transactions
 “Large” design releases
 Retaining documents beyond what is required
Defects (or Correction)
 Design errors
 Service failures
 Engineering change orders due to errors
 Not clearly understanding customer needs
 Missing or incomplete information

Non value-Added Processing
(or Over processing)
 Re-entering data
 Extra copies
 Unnecessary or excessive reports or paperwork
 Re-designing something that already has been
designed (i.e. re-inventing the wheel)
 Most engineering support services

Overproduction
 Completing design elements that are not needed for
some time
 features that the customer does not see as a value
(could also be included in non-value added or over
processing waste)
 Over-engineering
Transportation
 E-mailing information
 Multiple hand-offs
 Report distribution
 Circulating paperwork for signatures

Development Waste Examples - 5
Excess Motion
• Going to/from printer, central filing and meetings
• Travel
Under- utilized People
• Limited authority and responsibility for basic tasks
• Management “command and control”
• Not sufficiently sharing knowledge
• Not involving suppliers early in the development
process
• Not involving manufacturing early in the development
process

Portfolio Management by Net Present Value
Net profits Upfront costs
NPV = Corrected for
such as Tooling,
Product Design etc.
inflation and
financial risk


Program Management by Checklist


Project Management by Checklist


Are you looking the fastest way
for your Ideas to Market?
Fully integrate the BEST suppliers
into your Product Development System

Ocean Star Electronics Ltd.

References
• A Guide to the Project Management Body of Knowledge (PMBOK Guide),
4th Edition, 2008
• Program Management, Second Edition, 2008
• The Standard for Portfolio Management, Second Edition, 2008
• Organizational Project Management Maturity Model (OPM3), Second
Edition, 2008
• Value Stream Mapping for Lean Development: A How-To Guide for
Streamlining Time to Market, D. Locher, 2008
• The Integrated Enterprise Excellence System, F. W. Breyfogle III, 2008
• The PDMA Toolbook 3 for New Product Development, A. Griffin, S.M.
Somermeyer, 2007
• New Product Development for Dummies, R. Carol, B. Nelson, 2007
• The Lean Product Development Guidebook, R. Mascitelli, 2007
• Lean six Sigma for Supply Chain management, J.W. Martin, 2007
• The TOYOTA Product Development System: Integrating People, Process and
Technology, J. Morgan, J. Liker, 2006
• New Products Management, M. Crawford, A. di Benedetto, 2006

References
• Lean Project Management: Eight Principles for Success, L.P. Leach, 2005
• The PDMA Handbook of New Product Development, K.B. Kahn, 2005
• The Lean Six Sigma Pocket Toolbook, M. George, D. Rowlands, M. Price, J.
Maxey, 2005
• The PDMA Toolbook 2 for New Product Development, P. Belliveau, A.
Griffin, S.M. Somermeyer, 2004
• Learning to see, M.Rover, J.Shook, 2003
• Product Development for the Lean Enterprice, M.N. Kennedy, 2003
• Seeing the Whole, D.Jones, J.Womack, 2003
• Portfolio Management for New Products, R.J. Cooper, S.J. Edgett, E.J.
Kleinschmidt, 2001
• The PDMA Toolbook for New Product Development, P. Belliveau, A. Griffin,
S.M. Somermeyer, 2002
• Building a Project Driven Enterprise, Ronald Masciteli, 2002
• Winning at New Products, R.G. Cooper, 2001
• Revolutionizing Product Development, S. C. Wheelwright, K.B.Clark, 1992

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