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TCP Issue ArchivePrevious IssueNext IssueAbout TCP

Volume 2, Issue 3
March 31, 2000

Contents

o n e Product Development Nirvana
t w o On the Web: TechMailings
t h r e e Top Ten Product Development Haiku
f o u r MRT News
f i v e Calendar of Events

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article-one:
Product Development Nirvana - Smells Like Lean Spirit

Everyone wants to have a lean product development process; unfortunately, nobody seems to know what one is. Most agree that the fundamental concepts of production improvement are applicable from product concept through launch, but that the lack of proven tools is frustrating and the transference through the manufacturing analogy too forced. In truth, the tools for "LPD" do exist, just not as a unified suite or even a point A to B roadmap. But they’re out there.

There is abundant evidence in industry of the benefits of concurrent engineering and like principles (VOC, QFD, DFM/A, CCPM, etc.). Results are typically expressed in the form of cycle-time reductions, which in turn result in degrees of increased profit and market leadership, depending on the role that time-based (rather than feature or performance-based) competition plays in your market. But we all know that simply "forming teams" is not the same thing as "concurrent engineering".

Jim Womack, co-author of Lean Thinking, once told a story about how he is often besieged with requests from CEO's to visit their plants. "We are lean," they would exclaim, "we got workcells." "Workcells?" Womack would reply. "Well, if you are truly lean, then you must also have reduced inventory, WIP and batch sizes. You must have dramatically increased your throughput and on-time delivery. Tell me, what has happened to quality? Production cost? Market share? Profits?" The returning silence he typically received was deafening. The emperor, it would seem, had no clothes. We must expect the same to occur in the future when people claim to have achieved "lean development."

IN A PERFECT WORLD

So what is lean product development? If I go by Lean Thinking, a lean development process is one that is focused on "promoting value" and "eliminating waste" while enabling customers to "pull" the product through your system's "flow." Of course, these are just nice words that can mean anything.

What are the areas that a lean process improves? How does one measure success? What are the results to be expected? If you're lean, where would you feel it? Let’s build a castle in the sky. Here's a short list of the benefits I think a lean development process might provide. Would the lean stretch goal of "perfection" look something like this?

  • Prolific idea generation
  • Discriminating project selection process
  • Intimate customer relationships
  • Customer-driven requirements and minimal downstream "feature creep"
  • No overcapacity of resources with flexible allocation
  • Double-digit cycle-time improvement over a statistically significant period
  • Consistent budgetary conformance across projects
  • Significant defect reduction in manufacturing and field performance
  • Strong supplier partnerships
  • Reduction in mid-stream engineering changes and rework, especially after release to manufacturing
  • Accelerated "response time" to unexpected project crises with no negative effects to project schedule
  • Greater product quality and reliability
  • Increased market share, customer satisfaction and retention
  • Clear and harmonious cross-functional communication
  • Higher success rates for new product introductions
  • Higher management tolerance for individual project failures
  • Product portfolio weighted towards most profitable products
  • Long term product strategy and "planned obsolescence"
  • One or more competitors leaving primary market during Lean tenure
  • Low employee turnover, especially in engineering department
  • Effective prognosticating and diagnosing metrics system
  • Product reclamation strategy
  • Organization-wide understanding of business goals and priorities

Of course, this company does not exist. Nor, probably, will it ever. Chances are if you hung your shingle on attacking this list, you would smell something, but it wouldn’t be lean product development. Sometimes it’s too easy to focus on the desire for results rather than the means to accomplish them or the domino effect of our choices.

The real value in this list is it’s reflective power. Each is a point of discussion in the many debates you could have on process improvement. Just remember to avoid considering things in isolation from one another. Frameworks (lean, TOC, etc.) are more similar than dissimilar, but smart is as smart does. When making choices and decisions in product development, don't be afraid to challenge your guiding philosophy when it conflicts with systems thinking.

Contemplating your business system is sometimes less like breaking boards with karate chops and more like meditating on a zen koan, a mysterious question that begets more ultimate questions. True systems thinking is akin to enlightenment. Sit in your lotus position and ask yourself: "What does lean product development mean to me?"

Ohmmmmmmmmmmmmmmmmmmmmmmmmmmm.

We share reader reactions to TCP articles on our website.
Please send any feedback to
gregg@roundtable.com


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article-two:
On The Web: TechMailing

Link:  http://www.techmailing.com

Periodically I do a web search using my name as the keywords (you never know what you might find). On my last web reconnaissance mission I came across this website that acts as a portal for free electronic mailing lists and web-based discussion forums. I was pleasantly surprised at their flattering review of The Critical Path (see link below).

Probing further, I was impressed at their extensive collection of pointers to free resources for the technically minded. While it has much of an Internet/eCommerce slant, chances are you'll find something of value in one of their categories: Cyber-culture, E-commerce, Education, Games, Graphics, Hardware, International, Internet, Linux, Marketing, Politics, Programming, Software, Web Design, Web Promotion, Y2K.

TechMailings Review of The Critical Path:
http://www.techmailings.com/review_041699.html

TCP reviews websites that are not typically known in the Internet mainstream or not easily found on standard search engines. To appear in TCP, sites must have something of value to offer to product development professionals rather than commercial literature. Know a website we should review? Send the url to gregg@roundtable.com

MRT Advocate Program

article-three:
Top Ten Product Development Haiku
...from the MRT home office in Walla Walla, Washington

10.

customer voice
  like a beautiful song
    defines value

9.

scarred by the whip
  we serve the master
    damn stock options

8.

another merger
  six bosses, seven weeks
    I surf the web

7.

unclear features
  and this part can't be machined
    bad requirements

6.

zero defects
  3.4 parts per million
    six sigma

5.

like falling petals
  the bloom begins to fade
    release 9.0

4.

forget quality
  little is as important
    as shareholder value

3.

data corrupts
  but absolute data
    corrupts absolutely

2.

soul mates
  joined in body and mind
    poka yoke

...and the No. 1 product development haiku:

1.

much work added
  while no progress made
    another meeting?

Send your Top Ten List suggestions to gregg@roundtable.com

TCP Top Ten List Archive


Have a humorous and absurd anecdote
about your product development experiences?
Share them with our readers. Read our "Call for the Absurd"


article-four:
MRT News

Bonus Session at Product Development and the Supply Chain

A special session has been added to the program, "0 to 60 in No Time." You are invited to learn how Redback Networks managed outsourced operations and quickly turned out products in a high-stakes race. Sean Laskey, Redback's VP of Operations, will discuss how this start up came out of the gates fast--and beat giants like Cisco and Nortel to market with its products.

For more information on Product Development and the Supply Chain, go to: http://www.roundtable.com/Event_Center/SUP20/SUP20.html

The Future of Web-Based Product Data Management

Management Roundtable events often feature one-of-a-kind opportunities. At our upcoming conference on "Web-Based PDM," the exclusive interview featuring PTC's James Heppelmann (the chief architect of both Windchill and Metaphase) is just such an occurrence. Brion Carroll of the PDM Information Center and Life Cycle Solutions, no slouch himself as a product development technology guru, will play host. Brion has promised to be armed with a full battery of questions that will get at the heart of where one of PDM's key inventors envisions the industry's future. There will also be ample time allotted for an audience Q&A session. If you are at all involved with setting corporate strategy on enabling tools for product development, this one is not to be missed.

For more information on Web-Based PDM, go to:
http://www.roundtable.com/Event_Center/PDM20/PDM20.html

— * —

Upcoming MRT Events

Applying Constraints Management to Product DevelopmentProduct Development and the Supply Chain...

— * —

A D M I N I S T R I V I A

The Critical Path is a free monthly e-mail newsletter written by:

Gregg Tong, Director of Product Development
Management Roundtable, Inc.
92 Crescent Street, Waltham, MA 02453 USA
Tel: (781) 891-8080 Fax: (781) 398-1889
Gregg@roundtable.com

Please feel free to forward this publication to any friends or associates you feel could benefit from its message. We welcome any suggestions, stories or comments that will help us improve the value of this newsletter. Please contact me directly with your input.

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