Lean and Agile Innovation 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Design side

Lean and Agile Innovation 2 © The Delos Partnership 2004 The Delos Model Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply

Lean and Agile Innovation 3 © The Delos Partnership 2004 Impact of Innovation and Design Design has a significant potential on an organisation’s Lean and Agility potential Complexity of product and process Cost Speed of design capability Customer responsiveness

Lean and Agile Innovation 4 © The Delos Partnership 2004 Value Proposition - Design Strategy Sales and Marketing Operations/ Supply Chain Design/ Development Operational Excellence Products that are functional and low cost Products that can easily be made Products that do not take long to develop Customer Solutions Products that meet the customers precise need Products that have lots of variation Intimate involvement of customer in design Product Leadership Thinking out of the box High and leading edge Technology Novel designs with new materials and processes

Lean and Agile Innovation 5 © The Delos Partnership 2004 Integrated Business Plan Integration of Innovation InnovationSupply Chain

Lean and Agile Innovation 6 © The Delos Partnership 2004 Integration with Supply Chain Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time Insert New Products Here Insert New Products Here

Lean and Agile Innovation 7 © The Delos Partnership 2004 Management of Innovation Stage/Gate Process Formal Process for Managing Project Gate 0 Gate 0 Gate 1 Gate 1 Gate 2 Gate 2 Gate 3 Gate 3 Gate 4 Gate 4 Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Review Investigate Financial Case Financial Case Develop Test Launch Where is value added in this process ?

Lean and Agile Innovation 8 © The Delos Partnership 2004 Parallel or Serial ? Design Trial Small Scale Scale Up Mass manufacture

Lean and Agile Innovation 9 © The Delos Partnership 2004 Parallel or Serial ? Design Trial Small Scale Scale Up Mass manufacture Faster to Market Easier to Make Faster to Market Easier to Make

Lean and Agile Innovation 10 © The Delos Partnership 2004 Variety is compound Tablet Family Bottle Cap Label Case Leaflet = _______variants ?

Lean and Agile Innovation 11 © The Delos Partnership 2004 Pack Size Can Height & Size Actual Gravity Brew Analysis Core High Gravity Brews Variety Funnel - Brewing

Lean and Agile Innovation 12 © The Delos Partnership 2004 Glass ProcessBulb FormTube Form Coil Fit Variety funnel Television Tubes

Lean and Agile Innovation 13 © The Delos Partnership 2004 Mass customisation - Hewlett Packard - deskjet printers: power supply module, power cords & manual mfg D.C. Factory localisation D.C. mfg Distribution Centre localisation

Lean and Agile Innovation 14 © The Delos Partnership 2004 Lean and Agile Design Lean Design – fewer parts; less variety Agile Design – Build in uniqueness late in process

Lean and Agile Innovation 15 © The Delos Partnership 2004 The design process: waste? Run Set up Set up Receive Engineering Change Request Engineering Change Request Inspect Store Pick Set up Set up Queue Inspect Queue Set up Set up Run Inspect Store Queue Inspect Store

Lean and Agile Innovation 16 © The Delos Partnership 2004 Product rationalisation Where should the future product focus be? Which products are losing the company money? cumulative unit product contribution 100% products ranked in order of contribution

Lean and Agile Innovation 17 © The Delos Partnership 2004 Structure of Bills of Materials and Routings Principle : Bills of materials and Routings together describe the way that we make things Issue : Do we do this through the use of Part numbers or Operations ?

Lean and Agile Innovation 18 © The Delos Partnership 2004 Simplify Structure Fewer levels means fewer transactions Fewer levels makes bottom up re- planning easier Fewer levels takes up less computing resource

Lean and Agile Innovation 19 © The Delos Partnership 2004 Planning Family Blue Option Part Number Blue Option Part Number Red Option Part Number Red Option Part Number Black Option Part Number Black Option Part Number Green Option Part Number Green Option Part Number Common Parts Common Parts Pen Family Pen Family % = % = % = % = 0.35 Forecast = 200/mth 100 % = 1.0

Lean and Agile Innovation 20 © The Delos Partnership 2004 Design impact Lean and Agile Design should look to build in : –Commonality of components to minimise product differentiation –Uniqueness as late as possible into the manufacturing/distribution process –Product/components that are easily available in short lead times

Lean and Agile Innovation 21 © The Delos Partnership 2004 Lean Design requires integration Design Manufacturing And Supply Chain Sales And Marketing