Taking Lean Principles to New Product Development

After successfully implementing lean principals in manufacturing, Solar Turbines took them to new product development, reducing firefighting and boosting development velocity. LEI’s Chet Marchwinski recently talked about the effort with Howard Kinkade, manager, products management, at Solar.

Q: What was the business problem Solar Turbines was addressing with lean product and process development (LPPD) principles?

Howard: Like many organizations, our lean journey started in manufacturing. A little over 10 years ago, I was working in the product development group under a new director. He had recognized that our new product introduction process was excellent and produced great results, but every once in a while, it fell short in some areas, maybe with schedule, maybe with some of our expenditures, cost management, things of that nature.

He asked, “Do we want to continue to expand our NPI book and make it any thicker?” We found as the book got thicker, performance didn’t necessarily improve. He read Lean Product and Process Development. He also read The Toyota Product Development System. Of course, I had homework. I had to do the same reading.

We then reflected and asked ourselves, “Do we want to experiment with this?” I certainly said, “Yes.” It was pretty exciting for me. Our initial focus was on velocity. It was pretty simple. We didn’t take too big of a bite. We focused on velocity.

We connected value-stream mapping of recent development programs and started applying tools like obeya and front-loading. The simple applications of those tools yielded great results. For example, our typical engine enhancement program might be two years from development to test. We applied these tools to the next engine enhancement program and it accelerated from two years to 17-to-18 months.

Q: One of the most successful experiments was in workflow management to level the work and improve the value-stream flow. What did the team do? What were those results?

Howard: We had been on the journey for probably about eight, 10 years and something kept coming up in all of our workshops. We had problems with our workflow management. It showed up in value-stream maps — and I think many of the people out there have played with this — it showed up as waiting. Our flows weren’t synchronized.

We borrowed from a trick that manufacturing uses called kanban — a pull system. We identified that in order for us to get better and enable more lean activities, we needed to get our workflow management under control. We applied kanban in a pull system to the workplace. Great results so far.

Chet: Can you tell us about an experiment that didn’t go so well and, more importantly, what you learned?

Howard: I can think of one right now that we struggled with a long time. In our workflow management system — and I always ask this question — if you prioritize half the work, how much work have you prioritized? Some people say none of it, and that’s what I used to say. Someone gave me a witty answer once and said, “You’ve prioritized half of it, but the lower half.”

Our goal was to create a prioritization system where we didn’t prioritize part of the work. We prioritized all the work. It didn’t matter what it was; we’d be able to prioritize across the different types of work. Our prioritization system had to be quite extensive to deal with lots of different business needs.

We kept finding that one problem was our training. When we put training efforts into the prioritization system, they were always at the bottom. We kept playing with the algorithm, but every time we changed the algorithm, we’d create some other problems.

Then we finally took a step back and said, “We’re doing training wrong. We know training is healthy for business, and we need to invest in it. Let’s determine what percentage of our investment should always go to training.”

We set aside a training bucket, and we allow each of the managers to spend that portion of it that’s theirs to develop their tools, processes, and people. They can go ahead and create cards for training and pull the amount as long as they don’t exceed the budget. This allows them to manage the development of their people, and it solved one of our biggest problems in prioritization.

Keep Learning:
• Join experienced product and process development leaders like Howard Kinkade who are developing profitable processes along with products customers love. Register for the 3rd Designing the Future Summit 2020, June 18-19: https://www.lean.org/designfuture2020 .
• Sign up for the Lean Product and Process Development eletter and access to thought-leading content at the LPPD web site. Click the link, then scroll down to the orange banner. Subscriber information is never shared, sold, or swapped: https://www.lean.org/leanpd/ .

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