Product Lean Innovation | Process Management | Process Improvement

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Presentation Description

In this webinar, Norbert Majerus will take us through the highlights and key learnings of the Goodyear transformation to being an innovative Lean Product Development organization. For more webinar, please visit https://www.interfacing.com/bpm-video

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Presentation Transcript

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Lean-Driven Innovation Webinar Norbert Majerus 29 th May 2018

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc INTERFACING. 25 years of experience in the field Global client base in 46 countries International offices partner network Recognized as a Leader by 2017 Business Operating Systems 2017 Enterprise Business Process Analysis 2017 Operational Intelligence Product Leadership Award

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Norbert Majerus Norbert Majerus Consulting Ltd. Lean Champion Speaker Consultant Coach Book Author and Shingo Prize Winner www.norbertmajerus.com

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Why Do Great Companies Fail at Innovation Companies fail because they fail to build what customers want Diana Kander All In Startup Wiley 2014 Companies do not fail because they fail to build a product

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Service Innovation

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc 5/29/2018 7 “We could help you improve your process if you had one” Why Lean Safety/quality were good must continue trend Late on almost all launches – only contracted work was on time less than 20 Extremely slow Less than 50 of the projects were profitable Engagement scores less than acceptable and people quit for lack of work

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Safety quality – all time high 1500 95 100 75 3x Better engagement 7 Years Later 2016 Recipient of the AME OpEx Award

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc 0 100 200 300 400 500 2007 2008 2009 2010 2011 2012 2013 2014 RD Spending 0 50 100 150 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Product Life Cycles 0 50 100 150 200 250 300 350 400 450 500 1988 1993 1998 2003 2008 2013 Complexity Index Goodyear data and estimates 2017 Global RD

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc What I we Learned People Pre-requistites Process

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Pre-Requisites Organization - PM Shadows Value Streams Collaboration The one with most knowledge wins You may just as well do something significant The one with the most tools does not win Collaboration

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Manufacturing Sales Distribution Desired Organization RD

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Project 2 Project 1 Manufacturing Sales Distribution Desired Organization RD

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Matrix

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Organization Necessary – Not Sufficient Project managers Chief Engineers PMO FUNCTION needed Not all chief engineers are “supermen” but they: Moving people where the work is - requires flexibility and standard work Represent the customer Manage by influence not authority Drive collaboration and alignment

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Level of Lean Effort Sub-Functional e.g. Lab Functional e.g. RD Mfg Enterprise-Wide i.e. Cross-Functional Cross-Enterprise incl. customers suppliers You may just as well do something that shows REAL Results Chances for visible results are better if lean is applied on the highest level of the process Outcome Of Lean Effort

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc The One With The Most Tools Wins

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Focus on Customer VALUE not Cost

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Create Value in the Shadows

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc The Cost of Time in Innovation

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Goodyear Fuelmax

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc The Cost of Time/Delay RD Department vs Company Cost to the Business Additional Resources Missing Feature No Product Time

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc The Upside Down Triangle SCOPE Time Development Cost Not Negotiable Variable Budgeted SCOPE Time Cost Understand the Cost Of Time

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc New Product Launch

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Winning at the Intersections RD critical to success at intersection Innovation Excellence “Great products meeting consumer needs” Sales Mktg Excellence “Consumer-centric driven pull” Operational Excellence “Right tires right place right cost” Collaborate and align to win at the intersection

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Understanding Value Streams

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Concurrent Engineering

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Knowledge Management What have you invested in KNOWLEDGE Where is the Knowledge today How is it being used Competitiveness is defined by “Who can learn the fastest”

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc T Can Innovation Have a Process Innovation Creation Technology Creation Product Creation Proof of Concept Concept Scoping Detailed Assessment Gate B Gate C Gate D Entry Product Develop- ment Business Scoping Industrial- ization Gate 2 Gate 3 Gate 4 Gate 1 Concept Screening Launch Production Monitoring Gate 5 Execution Failure is not an option Fail fast and often

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Execution Phase Generates company income – and platform for launching innovation Inspired by lean manufacturing Goodyear 2016 AME Excellence Award - Innovation Center 100 delivered on time Fast is better than slow

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc If I had only one thing to focus on it would be SPEED Innovation Speed ◼ Competitive advantage ◼ Faster Learning better risk management ◼ Better cash flow ◼ Collaterals of efficiency

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Fast is Better Than Slow ❑ Eliminate Waste ❑ Rapid learning cycles / MVP ❑ Flow and Pull ❑ Visual Management ❑ Managing to Capacity

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Waste Transportation Inventory Motion Waiting Overproduction Overprocessing Defects Underutilization

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Waste Transportation Inventory Motion Waiting Overproduction Overprocessing Defects Underutilization How do you eliminate WAITING

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Tetris Principle

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Short Cycles to - Learn faster - Schedule easier - Manage the risk better Tetris Principle

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Short Cycles - Are easier to schedule - Allow better risk management - Create knowledge faster - Create Agility Tetris Principle

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Goodyear Iterations

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Goodyear Iterations

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc 10 Second Rule

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Visual Management "The primary role of managers must shift from firefighting to designing aligning and improving systems." - Shigeo Shingo Show deviation from standard – 10 sec rule QUICKLY activate standard problem solving process One time deviation Systemic Problem Verify Solution Make new Standard

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Schedule To Capacity

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Hydraulic Principle

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc One In – One Out

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Pull ONE OUT ONE IN Virtual Queue READY

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc 47 Self adjusting/aligning Limits inventory / Work in progress

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Work Visibility Board Amanda James Julie Ihor Overdue Due This Week Due Next Week NEED WORK Blocked Fillers In Box Need Help Future

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Late Start

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Late Start • Latest possible decisions • Dealing with perishable information • Manage changes • Lock in designs as late as possible • Dealing with engineers Parkinson Principle • Investment • WIP or inventory • Latest technology and opportunities Every iteration is started as late as possible but with enough time to finish including a small buffer to account for variability Start late to finish on time.

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc T Can Innovation Have a Process Innovation Creation Technology Creation Product Creation Proof of Concept Concept Scoping Detailed Assessment Gate B Gate C Gate D Entry Product Develop- ment Business Scoping Industrial- ization Gate 2 Gate 3 Gate 4 Gate 1 Concept Screening Launch Production Monitoring Gate 5 Execution Failure is not an option Fail fast and often

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc My Dream Process 52 The more you try the luckier you get

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Generating Ideas

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc •Market Back •Observe •Listen •FIND pain points The Reversed Funnel

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc E D G R E V I

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Sorting Out Ideas C G O N V E R E

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Lean Innovation E LEAN Startup

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Innovation Cycle DIVERGE CONVERGE TEST LEARN BUILD Fail Fast and Often

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Name function or work to do TO DO IN PROGRESS DONE Time Period Goal Deliverable …. Quick Learning Cycles – SCRUM Sprints Agile … •Work in very small steps FAST – often time limited steps •Cross functionally from the beginning •Retain flexibility through the process – launch or pivot at any time •Use technology/world as our lab •And • In the right order • With the minimum effort

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc What are the Knowledge Gaps •Can we sell it •Can we make it •Is new technology needed •Will we get approval •Is it legal •Do we have the talent •Can we buy the technology •Etc ………….. CRITICAL QUESTIONS

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc De-Risking an Idea RISK IMPACT Start Here Risk Threshold Real Project

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Lean Experimentation

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Experiment Example : Willingness to pay for a recycled tire • Assumption: Consumers will pay a premium for a green tire New Earth tire • Design: Project team dressed/trained as in-store sales associates pitching consumers the new concept Wizard of Oz • Results: • Consumers expected a discount they saw recycling as a savings opportunity for Goodyear • Consumers would not compromise on any traditional performance attributes to get recycling as an additional feature • Conclusion: Project cancelled

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc my Desired State FOUNDATION Ideal State CONTINOUS IMPROVEMENT RESPECT FOR PEOPLE

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Current State FOUNDATION CONTINOUS IMPROVEMENT RESPECT FOR PEOPLE Average of 70 of people are not engaged Jerry Solomon - Lean Frontiers conference San Antonio 2016

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Managing People Engagement Empowerment – Andon Cord Respect for people Upside Down Leadership

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Who is the best positioned to make recommendations about changing the work people do It is easier to teach the process experts the lean principles than it is to teach an outsider the process and the culture

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Engagement and Empowerment Who is the best positioned to make SUGGESTIONS for decisions Who are the technical experts Managers have the right to know – not to tell

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Respect • People come to work to do a good job • If they cannot look at process training qualification equipment … • Help the people be successful ALL • People deserve a safe work environment • Remove waste from their work • Ask questions do not give answers • Learn to manage the round peg in the square hole – google Hard on the Process Easy on the People

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Billy Taylor Director NAT Manufacturing Ellis Jones Plant Manager Akron Upside Down Leadership

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Leadership W h e n b o t t o m l e v e l g u y s l o o k u p t h e y s e e o n l y … . . . . . Inspired by unattributed graph

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Lean Leadership

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Role of the Leader/Sponsor •Leader has the right to know – not to tell •Go see facts over data •Engage associates coach sponsor …. •Insist on root cause PDCA .. •Hold people accountable •Speak “native” language to help people be successful •Lead without using authority Jean-Claude Kihn Goodyear CTO and President

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Summary With the right mindset and if done right lean thinking can do at least as much for an innovation creating organization than it can do in manufacturing and services It takes some pre-requisites There are 2 processes But maybe the most important is the managing of the PEOPLE

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc Thanks If everything seems under Control You’re just not going fast enough. Mario Andretti

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© norbert majerus consulting llc - No slides can be duplicated without permission norbert majerus consulting llc salesinterfacing.com +1 800 561 5005 www.norbertmajerus.com +1 330 801 3184 www.interfacing.com norbert.majerusgmail.com

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