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Dozuki Workshop: Goodyear's Guide To Lean Product Development

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About this product. It challenges the current management orthodoxy, enabling companies to achieve 5 to 10 times improvement in product development speed, quality and efficiency.

The principles of product development flow second generation lean product development

This third book by a best-selling product development author lucidly explains the principles behind these new methods and shows readers how to apply them. Winner of a Best Books Award. Shipping and handling. Cycle time and percent value added time are only proxy variables! The unit of measure should be life-cycle profit impact, which is the ultimate measure of product development success 7. Ask 10 people Ask them to independently estimate what it would cost the company, in pretax profit, if their project were 60 days late to the market.

The principles of product development flow second generation lean product development

In the last 20 years the typical range of answers was 50 to 1. The value added by an activity is the difference in the price that an economically rational buyer would pay for a product before and after that activity is performed We can define waste as the failure to optimize our economics Queues Few developers realize that queues are the single most cause of poor product development performance? Only 2 percent measure queues! How big are your queues?

What is the cost of these queues?


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Only 15 percent know their cost of delay!! Queues are leading indicators of future cycle time problems In product development, our greatest waste is not unproductive engineers, but work products sitting idle in process queues. Inventory in a product development process is not physical objects but information, it is virtually invisible Inventory is observable through its effects: increased cycle time, delayed feedback, constantly shifting priorities, and status reporting We need to make quick, forceful interventions when queues get large Set queue size maximums and frequently monitor queues Queue size vs cycle time Capacity Utilization Most of the damage done by a queue is caused by high queue states High levels of capacity utilization are actually a primary cause of long cycle time Increasing capacity utilization increases queues exponentially.

Scaled Agile Framework – Page 2 – SAFe for Lean Enterprises

Increasing variability increases queues linearly. Queue size vs.


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  5. CFD Variability We cannot eliminate all variability without eliminating all value added! Minimizing the economic impact of variability is a profound different goal than minimizing variability! To manage product development effectively, we must recognize that valuable new information is constantly arriving throughout the development cycle! Using synchronization to lower coordination costs. Accelerating process feedback loops. Decentralizing control to deal with uncertainty.

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