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Goodyear
12/5/2012 2
• 1,500+ new (innovative, high value added) SKU’s every year globally
• 1,000+ projects at any time
• 4,000 learning cycles/year
• $450 Mi/yr
Why do great companies fail at Innovation?
Companies do not fail because they fail to build a product
Companies fail because they fail to build what customers want*
*Diana Kander, All In Startup, Wiley, 2014
What IS Innovation
• Creativity?
• Taking an IDEA and turning it into a profitable PRODUCT, SERVICE, PROCESS, Computer Program, Building …
• It is when you do not have a future state*
10/22/2016 4
*John Shook – GBMP, 2016 Worcester
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2007 2008 2009 2010 2011 2012 2013 2014
R&D Spending
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1988 1991 1994 1997 2000 2003 2006 2009 2012 2015
Product Life Cycles
2016 Global Innovation
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1988 1993 1998 2003 2008 2013
Complexity Index
Goodyear data and estimates
Phase CProof ofConcept
Phase BConceptScoping
Phase DDetailed
Assessment
GateB
GateC
GateD
GateA
Transition Phase
Goodyear’s Case for Change
10/22/2016 8
Goodyear Innovation Today
10/22/2016 10
Learnings from the Goodyear Journey
• The shadows of Innovation
• YES, Innovation can have a process
• Collaboration through the value stream
• Visual Management
• Innovation speed
• The fashion model
• Quick learning cycles
• Minimum Viable Prototypes
• Respect for People
• Managing innovation talent
Agility to deliver to the customer (business) what is needed and when it is needed*
* In addition to products meeting Goodyear safety and quality standards
Manufacturing Shadow????What creates more revenue/profit for a company?
10/22/2016 16
Use lean manufacturing to reduce COST?
Use Lean Principles to have the right (high value) product at the right place at the right time?
TCP : Technology Creation Process
Phase CProof ofConcept
Phase BConceptScoping
Phase DDetailed
Assessment
GateB
GateC
GateD
GateA
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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1
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Corporate R vs Cc
Transition Phase
17
Need a Process to learn and continuously improve
PCP Roadmap
17
Goodyear Innovation Process
10/22/2016 18
InnovationExcellence
“Great products meeting consumer
needs”
Sales & MktgExcellence
“Consumer-centricdriven pull”
Operational Excellence
“Right tires, rightplace, right value”
Win at the Intersection
Collaborate and align to win at the intersection
Value Stream Collaboration
• Targets set JOINTLY – but they evolve
• Targets reflect value for customer and company growth
• CONCURRENT development
• Functional and personal agenda take a back seat to the value for the customer and the growth of the company
10/22/2016 20
There is more value created with value stream alignment than functional (departmental, individual…) excellence- Don Reinertsen
Visual Planning
10/22/2016 28
Scania Planning Process
1,500+ new SKU’s globally every year1,000+ Projects at one time4,000 learning cycles/year30 min business meeting every 2 weeks
31
• Show deviation from standard – 10 sec rule
• QUICKLY activate standard problem solving process
– One time deviation
– Systemic problem
• Verify solution
• Make new standard
Visual Management
Leaders will have to find better things to do …
If I had only one thing to focus on, it would be SPEED
Competitive advantage
Faster Learning, better risk
management
Better cash flow
Collaterals of efficiency
Among Many Lean Opportunities …
TCP : Technology Creation Process
Phase CProof ofConcept
Phase BConceptScoping
Phase DDetailed
Assessment
GateB
GateC
GateD
GateA
ICP: Innovation Creation Process (Global)
(Global)
(Regional)
Product Leadership Strategy
Transition Phase
33
PCP Roadmap
Goodyear TWO Processes
Lean Innovation – The Fuzzy Front End
Lean does not have a good reputation for supporting (disruptive) innovation
My agile, quick learning, scrum, rapid deployment, design thinking, … cycle
10/22/2016 42
TEST
LEARN
BUILD
Name functionor work to do
TO DO IN PROGRESS DONE
Time Period
Goal, deliverable ….
Quick Learning Cycles - SCRUM• Easier to schedule - Use time limit if no logical break
• Team/customer/stakeholders set/reset goals for every cycle
• Easier to manage risk – allocate money in small batches
• Faster learning
• Frequent pivot/reflection and decision points
• Follow go/no go schedule
• Teams self organizing, sometimes self directing
45
Google Venture
Transforming From The Inside Out
A lean transformation is a major change in a companyChange is all about PEOPLEMore companies are challenged with the people part than the lean principles piece
(my) Desired State
10/22/2016 47
FOUNDATION
DESTINATION
CO
NTI
NO
US
IMP
RO
VEM
ENT
RES
PEC
T FO
R P
EOP
LE
Current State
10/22/2016 48
FOUNDATION
CO
NTI
NO
US
IMP
RO
VEM
ENT
RES
PEC
T FO
R P
EOP
LE
Average of 70% of people are not
engaged*
*Jerry Solomon - Lean Frontiers conference, San Antonio 2016
Inside Out Transformation
• Learn the principles
• Teach the principles to the people who do the work
• Engage the people and coach them through the transformation
• Help sustain the gains
Why Engage the People
• They know the process
• You cannot just replace them
• They can improve the work
• THEY sustain the change
• Engagement motivates people
10/22/2016 50
HOW to Engage the People
• Simplify work and reduce stress
• Communicate, teach (WHY)
• Listen to the concerns
• Focus on the influencers first
• Go see – build trust - help and support
• Thank and reward
• Show respect
Respect
• People come to work to do a good job• If they cannot, look at process, training, qualification,
equipment …• They ARE the best people to do the work - appreciate
them – help them be successful - set stretch goals• People deserve a safe work environment• Remove waste from their work • Ask questions, do not give answers• Learn to manage the round peg in the square hole -
10/22/2016 52
Managing Innovative Talent
• Lack of talent management is one of the 8 key wastes in lean
• Benchmark google, 3M …
• Learn to manage the square peg in the round hole
• Empowered serial innovators may be more about what you can tolerate than what you manage
• Seed some money – have fun
• Respect them and let innovators have a career at innovating
10/22/2016 54
Not managing innovative talent is a large WASTE
Thank You!
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Session No: WP/22
Lean-driven innovation
Norbert Majerus
Goodyear