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Lean-Driven Innovation
Norbert Majerus and Billy Taylor
MUHAMMAD ALI
INSPIRE
TRUST
DEFINE
WINNING
ALIGN
WINNING
EXECUTE
WINNING
Trust: Give a voice to 100% of your associates
Define:– Question: What does the enterprise
want to accomplish?
Alignment: - Question: Does the individual know
how they contribute to enterprise “Winning”?
Execute: Question: Do you have a process that
enables and develops people, holds people
accountable and recognizes contributions?
“WINNING”
…..by 2006, 20% of the 61 companies studied were out of business
“ In Search of Excellence” and “Built to Last” are two of the most Successful business books ever written.
Global Competition
Phase C Proof of Concept
Phase B Concept Scoping
Phase D Detailed
Assessment
Gate B
Gate C
Gate D
Gate A
Transition Phase
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100
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500
2007 2008 2009 2010 2011 2012 2013 20140
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1988 1991 1994 1997 2000 2003 2006 2009 2012 2015
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90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
Except for Quality and Safety, Goodyear’s innovation process not competitive
2016 Global R&D
Lean Operation
Lean R&D Transformation Map
Transform From the Inside Out
• Change management is all about PEOPLE
• After the change you will work with the same people than before
• The best people to manage the change are those who know the work and the company
• It is easier to teach process experts lean principles than to teach CI experts the process and the culture
Focus on PRINCIPLES
Five Steps to Get Lean
Creating Customer VALUE
Apply Lean to the Shadows
Winning in Innovation
Understanding the Value Stream
Collaboration Across the Value Stream
21
New Product Launch
Myth: Failure (Yes, there are some bad ideas)
The difference between innovative and not-so-innovative people is that the successful ones try more often.
23
That is Innovation
Principles of Value Stream
Collaboration
• Targets set JOINTLY – but they evolve
• Targets reflect value for customer and company growth
• CONCURRENT development
• Functional and personal agenda secondary to customer value and the company growth
Setting the Example
Flow, Speed, Pull
Tire Build
Tire Build
Design
Mold Eng.
Mold Mfg.
Construction Modeling
Tire Testing
Overlapping Engineering Tasks
Materials Development
Single Piece Flow Focus Resources and Eliminate Wait Times
Design
Mold Eng.
Mold Mfg.
Construction Modeling
Tire Testing
Materials Development
Prepare
Prepare
Prepare
Prepare
Prepare
Prepare
Prepare
I T E R A T I O N
K I C K O F F
M E E T I N G
Kickoff Meeting Shared Information / Up-Front Preparation
Teamwork / Parallel Engineering
Downstream Activities are Planned / Scheduled
Work Authorization - Kanban Spec Buildwire Test Requests
When work is complete, please date the Engineering Kanban (out date )and send it to the TPL Add the Build Wire number on the “Prototype Tires” Kanban date it (In Date) and send the “Prototype Tire” Kanban to QTECH
When modeling work is complete to the extent that the MDR can be issued, please write the MDR number on the mold design kanban Date the “Modeling” kanban (out date) and send this kanban to the TPL. Date the “Mold Design” kanban (in date) and post it on the Mold Design Kanban Board.
When mold design work is complete to the extent that mold production can start, please date the card (out date) and send the card to the TPL
When the prototype tires shipped from the plant, please date the kanban card (out date) and send the card to the TPL
Instructions on back side
Competitive advantage
Collaterals of efficiency
Among many lean opportunities …
TCP : Technology Creation Process
Phase C Proof of Concept
Phase B Concept Scoping
Phase D Detailed
Assessment
Gate B
Gate C
Gate D
Gate A
ICP: Innovation Creation Process (Global)
(Global)
(Regional)
Product Leadership Strategy
TSRD SSRD > Quad TOOS Full Stage TOOS SOL Extended SMO PCI
Current Eagle GT
Future Eagle GT successor 20% NA = = = = 5% = = =
Current GY Wrangler SA
Future GY Wrangler SA A/T 2013 Pmet 20% NA 20% 10% 10% 20% = = = =
Current GY Wrangler SA
Future GY Wrangler SA A/T 2013 LTmet = NA = = 10% = = = = =
Current GY Assurance Fuel Max
Future GY Fuel Max Succ 2014 20% NA 5% = = = = or 10% 10% = 100%
Current GY Wrangler SRA
Future GY Wrangler SRA Succ 2014 10% NA 10% 10% = = = = = =
Current GY Wrangler Duratrac
Future GT Wrangler Duratrac Pmet 2015 = NA = = = = = = = =
Current GY Assur CS Fuel Max
Future GY Assur CS Fuel Max Succ 2015 20% NA 5% = = = = 10% = =
Current GY Assur ComforTred Tour
Future GY Assur CTT Succ 2016 20% NA = = = = = = = =
Current DU Sport Signature
Future DU Sport Signature Succ 2014 20% NA = = = = 5% = = =
Current DU Signature CS
Future DU Signature CS Succ 2014 20% NA 5% = = = = = = =
Current KY Safari Signature
Future KY Safari Signature Succ 2014 = NA = = = = = = = =
Manufacturing Quantifiable ImplicationsMixing Extruding Tire Assembly Curing
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Corporate R vs. Cc
Transition Phase PCP Roadmap
Institutionalize the lean initiative:
Throughput – Goodyear NAT Learning Cycles
Lean Innovation – The Fuzzy Front End
• Lean does not have a good reputation for supporting disruptive innovation
TCP : Technology Creation Process
Phase C Proof of Concept
Phase B Concept Scoping
Phase D Detailed
Assessment
Gate B
Gate C
Gate D
Gate A
ICP: Innovation Creation Process (Global)
(Global)
(Regional)
Product Leadership Strategy
Transition Phase PCP Roadmap
The TWO Goodyear Processes
Lean Innovation Learning
• INNOVATION must be managed (process)
• R&D decision: WHAT TO WORK ON
• Typical result: work on everything
• Which results in: nothing gets finished
• Lean solutions:
– Try a lot – assess quickly – (scrum, agile …)
– Lean Experimentation (lean start-ups)
– Avoid lean innovation killers
– Manage innovation talent
People
• Engineers
• Leaders
Engineers
• E3 – Engagement – EDUCATION – Empowerment
– RESPONSIBILITY
– Trust
– Respect
• Sense of accomplishment
• Engagement survey results
Leadership
W h e n b o t t o m l e v e l g u y s l o o k u p , t h e y s e e o n l y … . . . . .
Billy Taylor’s Lean Leadership
Fayetteville – Where we were…
Fayetteville was missing demand by 150K+ tires a month! Missing
Millions in sales revenue.
Fayetteville: Capacity
(Tires Produced Per Day)
43
31,419
36,500
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
PLANT PERFORMANCE MARKET DEMAND
“Enterprise Alignment”
29000
30000
31000
32000
33000
34000
35000
36000
37000
38000
39000
May YTD Jun Jul Aug Sep Oct Nov Dec
31,419 31,167
33,000
33,806
35,274 35,061
36,628
38,513
Fayetteville, North Carolina Finished Tires Per Day
Breaking Through
23% Improvement (7,348 Increase in tires per day)
No additional cost to manufacture, offsetting millions in headwinds
Respect
• People come to work to do a good job
• If they cannot, look at process, training, qualification …
• The best people to improve the process are the people who work in the process
• Management’s job is not to give answers but to ask questions
Thank You!
Please complete the session survey at:
www.ame.org/survey
Session: ThP/39
Lean-Driven Innovation
Norbert Majerus / Billy Taylor
Goodyear
