06_Design_for_Lean_Six_Sigma_Colin_Mitchell

11“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”DesignforLeanSixSigma.DesignforLeanSixSigma–SupplyChainProductCostOptimizationSupplyChainProductCostOptimization-partofabiggerpicture2“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”DesignforLeanSixSigmaAstrategytoenhancetheProductDevelopmentProcessandtodriveProductCostOptimizationbasedonasystematicanalysisofthecustomersneeds.Amethodologyforenhancingthespeedandqualityofthedesignprocessinanorganizationwithafocusonimprovingprofitabilityanddrivinggrowth.AnadditionalsetoftoolstoimproveaNewProductDevelopmentProcess.TheNPDprocessprovidestheframeworkwhereasDFLSSprovidesthe,toolsandteamworktogetthejobdoneeffectivelyandefficiently.Complimentarytocurrentprocesses.Canbeequallyappliedtoexistingornewproducts.SupportsPortfolioManagementandIdeaAssessment.Providesanoverarchingmechanismtodrive;DFMConcurrencyDesignforReliability.SupplyChainInvolvement.DesignforLeanSixSigma–SupplyChainProductCostOptimization23“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”020406080100123456LIFETIMEPRODUCTCOSTCumulativePercentageConceptArchitectureDesignTestingProcessPlanningProductionPRODUCTCOSTvsTIMECommittedCostConcurrentEngineeringDesignforManufacturePrologLeanSixSigmaCategoryManagementSupplyChainSupplyChainQualityFunctionDeploymentDesignforReliabilityEngineeringDesignforLeanSixSigmaCurrentdesignformanufactureandeffortstoextendsupplychaininvolvementintheproductdevelopmentprocesswillbesub-optimizedwithoutthebenefitsofDesignforLeanSixSigma.DesignforLeanSixSigma–SupplyChainProductCostOptimization4“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”WhyDesignforLeanSixSigma?Industrywideonly60%ofnewproductsareasuccess.45%ofallnewproductdevelopmentresourcesgoonproducts.thatarekilledorfailtoprovideanadequatefinancialreturn.IPCandFPDprovideaframeworkforproductdevelopmentfromideagenerationtocommercializationbutnotools.DesignforLeanSixSigmaprovidesthemethodology,approachandtools.LeveragesandbuildsonexistingLeanSixSigmaskillsandexperience.IsactionorientedandengagesthepowerandenergyofKaizenbreakthroughmethodology.Usesthe“VoiceoftheCustomer”asthebasis.DesignforLeanSixSigma–SupplyChainProductCostOptimization35“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”WhatarethebenefitsofDesignforLeanSixSigma?Reducestimetogetnewproductstomarket.Reducesdevelopmentandproductionstart-upcostsandproblems.Productsaredesignedforefficientandflexiblemanufacture/procurementthroughstructuredapplicationofDesignforManufactureprinciples.Greatercommercializationsuccessasproductdesignisoptimizedforthetargetmarketusingthe“voiceofthecustomer”asitsfoundation.DesignforLeanSixSigma–SupplyChainProductCostOptimization6“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”DesignforLeanSixSigma–SupplyChainProductCostOptimizationDivisionStrategyProductQualityMarketPotentialProductFeaturesProductCostResearchTechnology/LabsIP/LegalCustomersRegionOperationsRegionTechnolgyPSL'sCompetitorsTechnicalForums/Conf.SupplyChainManufacturingSuppliersLogisticsProcurementSupplyChainManufacturingSuppliersLogisticsProcurementFieldTrialsGotoMarketPlansInternalTrainingMarketingSupportCustomersBusinessDevelopmentRegionTechnolgyRegionOperationsOIADevelopmentCommercializationProductConceptProductLaunchDesignforLeanSixSigmaNEWapproachtoIPCImplementation47“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”ProductConceptMarketResearchProductCharacteristicsDesiredProfit–PlannedPriceEngineeringtoObjectivesDesign+SupplyChainCostsManufacturingContinuousPriceReductionProductConceptMarketResearchProductCharacteristicsDesignEngineeringSupplierPricingManufacturingPricePeriodicCostReductionDefaultCostTargetCostPriceistoohighandprocesstakestoolongDesigntoatargetcostbasedmarketpriceandprofitexpectation.DesignforLeanSixSigmaDesignforLeanSixSigma–SupplyChainProductCostOptimization8“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”IPC–Providestheframework.DFLSS–Providestheteamwork,methodandtoolbox.ProjectManagement–ProvidesthePlanandMeasures.QFD,DFM,Concurrency,etc.–arethetools.DesignforLeanSixSigma–SupplyChainProductCostOptimization59“Confidential-ForInternalUseOnly.©2005Halliburton.AllRightsReserved.”WhatisdifferentfromLeanSixSigma?ItisanextensionofLeanSixSigmaasappliedinmanufacturingbuttherearedifferences.MostorganizationsprogresstoDesignforLeanSigmafromapplyingLeanSixSigmainmanufacture.80%ofCostandQualityissueswithinthesupplychainareafunctionoftheproductdesign.Similarities;Itdrivestowardsbusinessandfinancialobjectives.Focusesondrivingoutwasteandvariationdown.Itisadataintensiveapproach.Usesgreenbelts,blackbeltsandmasterblackbelts.IsimplementedusuallywiththesupportofaChampionandProcessOwner.Isaboutaction,nottraining,andleveragesthepowerofKaizenandcrossfunctionalteamwork.Startswith“Lean”.DesignforLeanSixSigma–SupplyChainProductCostOptimization10“Confidential-ForInternalUseOnly.©2005Halliburton.All