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Lean Product Design Approach Reduce

the Product cost, Speed-to-market and
Increase Productivity

October 2010

HCL Technologies. you will find a Grey color box which you will need to use for one key point from the text on the right/ quotation/ statistic etc. © 2010.Lean Product Design Approach Reduce the Product cost. the same shall be automatically updated at the header across all the pages. Speed-to-market and Increase Productivity | October 2010 INSTRUCTIONS This is an automated template for the technical whitepaper series Enlighten. Once completed please send it across to eootb@hcl. should be done at the page itself (in the heading format as used currently). all rights reserved. Reproduction Prohibited. We shall get back to you with the final copy. right click and “update fields”. Addition/ Removal of Pages : Writing can be continued. The table shall be update automatically. Cover Page: Please update only the Title and the Year – Month. The following guidelines will help you work at it effectively to create a market facing output. This document is protected under Copyright by the Author. Once you move onto writing the other sections. Table of content should be updated at the end to account for all such modifications. Highlight Pad : On the left of each page. Final Page: This is uneditable text carrying information about HCL and ERS. Once the paper is complete move to the TOC. Table of Contents: Do not make any changes to this page.com. onto the pages to write additional content. Any change if need be to the heading of a page. .

............ 12 Conclusion ...................... 4 Abbreviations .. HCL Technologies........................................... 5 Challenges....................... Speed-to-market and Increase Productivity | October 2010 TABLE OF CONTENTS Abstract ...... Reproduction Prohibited................................................... 11 Common Issues ..........Lean Product Design Approach Reduce the Product cost....................................................................................................................................................... 10 Opportunities for Reducation of Waste in Design ............................................................... 12 Reference ............................................................ 11 Key Principles of Lean Design .............. 6 Traditional Product Design Vs Lean Product Design ....................................................... 7 Lean Product Design Approach ....... 8 Opportunities to slash Product Manufacturing Costs During the Product Design Cycle................. all rights reserved........... 13 Author Info ......................................... 13 © 2010............................ This document is protected under Copyright by the Author...................................................................................................................................................... .............................................

design teams need to be fast. resource allocation and prioritization. efficient. all rights reser ved. © 2010. while controlling development costs and maintaining high levels of quality. ambitious production schedules. Reproduction Prohibited. slashing costs. or consistent product quality that are necessary for your company‟s success. you must also beat the competition to market. and highly effective and need focus on elimination of non-value-added waste in both the process of development and in the design of the product Lean product design approach can take you from slow-andsteady to quick-and-agile. To succeed. To succeed in global competitive market.Accomplishing these goals demands the implementation of efficient and consistent processes throughout the product development cycle. communication. increase productivity & time-to-market is a great place to begin journey toward Lean product design excellence. This is where the methods of lean product design take center stage. Speed-to-market and Increase Productivity | October 2010 Abstract Success in today‟s competative global marketplace requires more than innovative and creative product designs. 4 . the planning of a development project. and several practical techniques for improved organization. Techniques such as Just-in-Time (JIT) materials management. and batch-size reduction have enabled firms worldwide to achieve unprecedented production efficiencies. time and workflow management. Unfortunately. and execution.One of the best ways to achieve "excellence in product design” is to focus on the elimination of non-value-added waste in both the process of development and in the design of the product. if a "fat" product is handed off to the factory. HCL Technologies. all the lean manufacturing in the world won't get all of the waste out. a lean factory can only manufacture what it is given. This document is protected under Copyright by the Author.Lean Product Design Approach Reduce the Product cost. If you create fantastic product designs but experience difficulties in manufacturing. Therefore. Each approach addresses a different aspect of the product development process: the harvesting of initial customer inputs. assembly and time to market you cannot achieve the healthy profit margins. pull systems.

This document is protected under Copyright by the Author.Lean Product Design Approach Reduce the Product cost. Acronyms Full form 1 JIT Just In Time 2 VOC Voice of Customer 3 CTQ Critical to Quality 4 PLOT Produc line optimization team 5 3P Production Preparation Process 6 SKU Stock keeping Unit 7 BOM Bill of Material 8 QFD Quality function deployment 9 OEM Orignal equipment manufacturer © 2010. 5 . No. Reproduction Prohibited. Speed-to-market and Increase Productivity | October 2010 Abbreviations Sl. all rights reser ved. HCL Technologies.

reduce development time and develop Innovative competitive product. © 2010. This document is protected under Copyright by the Author. To survive in this maelstrom the Lean design approach helps on the elimination of non-value-added waste in both the process of development and in the design of the product.Lean Product Design Approach Reduce the Product cost. HCL Technologies. Reproduction Prohibited. all rights reser ved. 6 . Speed-to-market and Increase Productivity | October 2010 Challenges In today‟s global competitive market every companies are facing intensive pressure to cut down the product cost.

major manufacturing problems. with poor production yields. product cost and Increase productivity. HCL Technologies. Reproduction Prohibited.Lean Product Design Approach Reduce the Product cost. Products that do not reach out to customers in terms of price. all rights reser ved. This document is protected under Copyright by the Author. Speed-to-market and Increase Productivity | October 2010 Traditional Product Design Vs Lean Product Design (Sections for more Solution points) The basic problem with traditional product development processes is that most of the cost is locked in long before production launch. performance and benefits do not sell well. Lean product design approach focus on the elimination of nonvalue-added waste in both the process of development and in the design of the product that lead certainly reduce development leadtime. undermine the benefits of Lean manufacturing. In short. and being too slow to market can severely impact product profitability. and unresolved engineering problems. For example. designs that arrive at the factory late. 7 . complex designs cannot be “Leaned out” in production. © 2010.

assembly. Modular Design: The easiest way to understand modularity is the “Plug and Play” concept. Reproduction Prohibited. and more. support. If you want to add more hard drive capacity to your computer. The reason is that product design has a direct impact on product cost. This allows them to have highly flexible product lines that require less overall engineering and manufacturing effort.Lean Product Design Approach Reduce the Product cost. Among these stages. suspension platforms. floor space ) © 2010. time. and dispose. 70% of the cost of a product is fixed at the design stage Following are the specific design activities that help for Lean Product Design. Platform based Design: Platforms leverage design efforts from one product to many other related products. This document is protected under Copyright by the Author. Design to fit : This approach makes product designs easier to create in existing production environments. 8 . operate. For example Automobiles have engine platforms. ( eg. the design stage is the most critical since it sets the stage for product success or failure in the market place. Speed-to-market and Increase Productivity | October 2010 Lean Product Design Approach There are five stages in a product life cycle design. produce. without additional investments in manufacturing. Typically. quality and reliability. standard item. reusing existing equipment. supply chain and distribution. simply plug in a new hard drive module.to-market. HCL Technologies. all rights reser ved.

Additionally. Take out Waste: In this Process capability must be studied to ensure that the product can be produced economically. Design for testability: How easy the product can be tested and diagnosed in the shortest amount of time while using the lowest cost testing methods. Unexpected rework and scrap reduce profits and disrupt manufacturing flows. This document is protected under Copyright by the Author. Reproduction Prohibited. Design for serviceability: Serviceability is best describes as designing product so they are easy to fix. facilitating error free assembly. Speed-to-market and Increase Productivity | October 2010   Can you design your new product without the need for new production equipment? Can you build the new product in an existing production line? Design for performance: Ensure customers required functions are considered in design and product operates at the required specifications. designing for testability reduces test program complexity. It includes things like selecting right quality material in the first place. all rights reser ved.UL certification. and increases equipment availability. 9 . use standard components whenever possible and fitting the product design into the process that will be used to product it. This kind of reengineering can drastically affect the time to market. cuts test time. Design for compliance: Take care of safety regulatory standard like CE. assembly. Design for manufacturability: Use minimum number of parts in the product. HCL Technologies. Failing to meet regulatory requirements after the design is complete may add substantial costs and time to a reengineering effort. © 2010. reliability and aesthetic. disassembly and maintenance. Design for quality: Design for quality means meeting the customer quality expectations. facilitates troubleshooting.Lean Product Design Approach Reduce the Product cost.

There are numerous opportunities to slash manufacturing cost during the design cycle. elimination of batch processes. Design for lean manufacturing and assembly. etc. Optimize Make vs. 10 .QFD/voice-of-thecustomer. parts-count reduction. Optimize Tooling Cost . This document is protected under Copyright by the Author.Lean Product Design Approach Reduce the Product cost. HCL Technologies. a modular design/ mass-customization strategy). design for one-piece flow. Automate Manufacturing Processes Reduce Test / Inspection Requirements etc. Design of Experiment.g. Avoid Gold Plating of Designs . Reduce Direct Material Cost Common parts. 4. design simplification. improve utilization of shared capital equipment. Reduce Direct Labor Cost Design simplification. standardizing processes. Avoid Dedicated Equipment . Reuse Existing Designs / Processes. Reduce Operational Overhead Minimize impact on factory layout. Use Cheaper Raw Materials / Parts. parts standardization. 2. Reproduction Prohibited. Matching product tolerances to process capabilities. Eliminate Unnecessary Complexity . matching product tolerances to process capabilities. Value Engineering. Production Preparation (3P) Process. common raw materials. Minimize Product-Specific Capital Investment Production Preparation (3P) Process. © 2010. Minimize Non-Recurring Design Cost Platform design strategies. Use High-Volume Parts etc. 3. including: 1.Value Engineering / design simplification. Six-Sigma Methods. standardization of parts. Speed-to-market and Increase Productivity | October 2010 Opportunities to slash Product Manufacturing Costs During the Product Design Cycle The most challenge for designer is the opportunities for product cost reduction occur during the early stages of the development process when the specifics of a design are the least understood. reduction of scrap and quality defects. all rights reser ved. etc. 5. capture cross-product-line synergies (e. etc. Buy .

measure for direction first. Common metrics are schedule. Reproduction Prohibited. precision © 2010. 11 . But. assembly (producing product defects) Percentage 33-50% 18% 8% 17% 15% Key Principles of Lean Design  Strategic Value: Optimize product values (customer and company)  Waste Prevention: Minimize wasteful processes  Marketplace Pull: Attempt to predict what values customers truly need. now and in the future. Unnecessary documents and prototypes Under utilization of design knowledge for example in costly parts Over design such as features customers don't need Validating manufacturing errors early in the design process Poor design for manufacturing. see emerging trends early. need to measure what is important to customer.Lean Product Design Approach Reduce the Product cost. and technical performance.  Fast Feedback: You can only improve what you can measure. This document is protected under Copyright by the Author. HCL Technologies.  Innovation Flow: Need systematic way for all stakeholders to contribute innovative ideas. Speed-to-market and Increase Productivity | October 2010 Opportunities for Reducation of Waste in Design The following table shows the percentage of wastes in product design. seek many solutions simultaneously. budget. grow by discovering unmet needs to create disruptive strategy. Areas of waste reduction Designs never used Downtime while finding information. all rights reser ved. waiting for test results etc.

which are relatively easy to identify and quantify. Benefit  Product development cycle time reduction  Manufacturing cost reduction  Engineering changes reduction  Scrap and rework reduction  Error proof prevention system  Customer satisfaction  Increased Productivity  Reduced risk  Design compatibility with production facilities –Platform based design © 2010. This document is protected under Copyright by the Author. Speed-to-market and Increase Productivity | October 2010 Common Issues The areas of waste in manufacturing.Lean Product Design Approach Reduce the Product cost. HCL Technologies. all rights reser ved. can be extrapolated to apply to other product development processes but in product design very difficult to identify and quantify the wastes. 12 . speed to market and Increase productivity. Conclusion The Lean product design approach helps companies with an effective way to begin the Lean journey in product development and engineering in a straightforward and un-intrusive manner which can deliver significant benefits in waste elimination and help in slashing product cost. Reproduction Prohibited.

HCL Technologies. heavy construction equipment and Aerospace domains.supplier development. consumer electronics. Lean Design Solution by Bart Huthwaite 2. Currently he is heading NPI team in HCL and supporting to various project NPI activity.Lean Product Design Approach Reduce the Product cost. supplier management & SCM.Telecom. all rights reser ved. 13 . The Lean Product Development by Ronald Mascitelli Author Info Rajesh Thosar is a Project Manager at HCL Technologies. This document is protected under Copyright by the Author. Speed-to-market and Increase Productivity | October 2010 Reference 1. He has worked with OEM and IT engineering service companies and successfully executed various project in automotive.He has 15+ years of rich experience full product life cycle from concept to manufacturing (C2M). supplier selection . home appliances. © 2010. With graduation in Mechanical Engineering . Reproduction Prohibited.

HCL focuses on „transformational outsourcing‟. BPO. Founded in 1976.hclblogs.000 professionals of diverse nationalities. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic. for the year ended as on 30th June 2010. The HCL team consists of over 71. and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. Servers & Storage for our customers. who operate from 29 countries including over 500 points of presence in India. and offers integrated portfolio of services including software-led IT solutions. Consumer Services.Hello. We partner with our customers in building world class products & creating the associated solution delivery ecosystem to help build market leadership. Since its inception into the global landscape after its IPO in 1999.557 transformers to create a real value for the customers.com Follow us on twitter http://twitter. underlined by innovation and value creation. remote infrastructure management.com . Automotive. HCL has partnerships with several leading Global 1000 firms. I’m from HCL’s Engineering and R&D Services.com About HCL Enterprise HCL is a $5. custom & package applications. Semiconductor. Public Services and Healthcare. including leading IT and technology firms. multi-service delivery in key industry verticals including Financial Services. IT infrastructure services.com/ and our blog Visit our website http://www.com/hclers http://ers. HCL takes pride in its philosophy of „Employee First‟ which empowers our 64. solutions and platforms across Aerospace and Defense. Office Automation. HCL is a global transformational enterprise today. 13000+ of us are developing engineering products. Consumer Electronics. We enable technology led organizations to go to market with innovative products & solutions. Manufacturing.7 billion (Rs. For more details contact eootb@hcl. please visit www. A pioneer of modern computing. Its range of offerings includes product engineering. Medical Devices.3 billion leading global technology and IT enterprise comprising two companies listed in India . For more information. HCL Technologies. please visit www. had consolidated revenues of US$ 2. systems integration. Right now.hcltech. Industrial Manufacturing. For more information. IT hardware. working with clients in the areas that impact and redefine the core of their businesses.hcl. Networking & Telecom.hcltech. engineering and R&D services and BPO. HCL is one of India's original IT garage start-ups.com/engineering-services/ About HCL About HCL Technologies HCL Technologies is a leading global IT services company.HCL Technologies and HCL Infosystems.565 crores). 12. along with its subsidiaries.