Lean processes in development: risks and costs under control

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MEV Elektronik Service GmbH

In addition, the guideline includes all development tools and an explanation of their application. Illustrations from the pilot project clarify the different phases along the path for a new development. In parallel we set up a sample showcase as well. It shows a product's degree of maturity along the process of origination – from prototypical nature in form of circuits and plug boards all the way to the completed sample.

Requirement and specification documents and design freeze

Contrary to the previous process, now the creative phase exists only at the beginning of the process. "In the past, we frequently defined new requirements shortly before completion of the development, looped around and revised things," Marquardt admits. "That is different nowadays. Uncertainties are removed step by step." The process starts with a product idea session where proposals are developed and discussed. Subsequently, requirements for the new development are diligently checked by the interdisciplinary team during the first of three phases referred to as preliminary phase where the future project is examined from all sides possible.

"This way, there is no party – from production through to sales and distribution – that is short-changed and there is no reason to add product characteristics later on. These 'must haves' are documented in a product requirement document forwarded to the project manager. This is the start of the conceptual phase which is used to develop and test various alternatives. Following the process of elimination, the employees continue solidifying the ideas until finally there is only one alternative left. At Werma, this process of solidification is based on various benchmarks: particularly economical, especially easy to produce, maximum coverage of requirements, etc. These are then used to create new combinations that include additional attributes.

"This is why, for example, we went down a completely new path when it came to the use of the illuminant, the LEDs," Marquardt explains. "Our benchmarks were customer benefit and optical impression – i.e. illumination, luminescent image, etc. – as well as manufacturability, risk and costs. After weighting all points and solidifying the attributes we decided on the installation of a diffuser rather than the common irradiation by way of transparent housing components. The diffuser refracts the LED light in all directions and thereby produces an extremely homogeneous luminescent image."

Basic developments create strategic advantages

In this process, the conceptual phase disregards all risks and ensures feasibility of the project; at the same time it provides some information regarding the development costs. "You can see, for example, what kinds of basic technologies would be required and whether they are available," says Marquardt. "It is entirely possible during this conceptual phase that you get to the point where you have to stop because the development would turn out too expensive – without having invested a lot of money yet."

At the end of the phase the final concept is described in a functional specification document. All that is left now is to implement the concept during the realisation phase according to the standard flow chart. Starting at this point in time, expenditures can be foreseen and even the completion date can be estimated with relative precision. This is also the cut-off point, the design freeze, referred to as "point of no return" by Marquardt, after which only the most minute details may be altered.

In the meantime Werma is successful at using the new Development System. During the first project after the pilot the company succeeded in significantly reducing lead time and remaining below the targeted 12-month period. This is the average value Werma wants to adhere to in the future – three months less than previously. Beyond that, projects initiated prior to cooperating with Staufen are also checked in terms of the WDS. The result was another important step in terms of lean development: development of basic technologies. This way the company ensures the input for future projects now in a sustainable manner.

With projects down the road, the developers can select from items in the technology supermarket, thereby tremendously accelerating the process. An innovation road map schedules basic topics and assigns clear responsibilities. "We take the time today to validate technologies and eliminate potential trouble in the future," summarises Marquardt. "This will reinforce the power of innovation at Werma and support our goals for the company." In addition it stimulates new ways of thinking within the company: "Sales and marketing can see what would be possible in terms of engineering even though we do not yet have a suitable product.

As a result, they will communicate accordingly with the customer, thereby stimulating new needs and the resulting new demand." Then Werma will develop the appropriate product as a custom solution by way of an in-house simplified work flow for small series and special requests. It will accurately select the relevant aspects from the WDS, giving us the opportunity to implement special projects even more quickly.

Still a lot of things to do for the future

"Overall we managed to achieve quite a lot," says a delighted Marquardt. "With the consultants from Staufen and then by doing it alone. This because they gave us the capability to carry on independently with lean management. And there is still a lot to do." It is primarily the issue of basic development that Werma has to broaden even more, such as production and tool making. "This would certainly reduce the uncertainty that still exists in part when processes are running in parallel. Some find it difficult to start designing a new tool before the product for the construction of which this tool is intended to be used is finalised."

According to Marquardt, here it is also important to build a modular supermarket from which the tool engineer only has to pick any more. "Overall, the insecurity of leaving behind learned sequential processes – ideally with generous buffers – in favour of faster parallelized methods is one of our major challenges," says Marquardt. "It is largely a matter of habits. Once the WDS has successfully run its course a few times, there is a great likelihood that this insecurity is history." Moreover, Werma is in the process of carrying lean management from development over to the entire company.

After all, just like being an innovation powerhouse, lean processes are part of the company image Werma developed during our cooperation with Staufen. "It already has started to bear fruit in sales and distribution," says Marquardt. "Here we developed an e-shop as a result of which the lead time of orders have been significantly reduced. If we succeed in thinking this way in all areas, Werma will be fit for the future – and an ideal candidate for the number 2 spot among the global elite for signal processing."

* Christian Höhler is Director of Development at Werma Signaltechnik.

* Dr. Andreas Romberg is a Partner at the consulting company Staufen.

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