leveraging design for lean six sigma (dflss) for innovation

April 30, 2008 1Lean & Six Sigma Summit

Stephen Hoover, PhD

Vice PresidentXerox Research Center WebsterXerox Innovation GroupXerox Corporation

Leveraging Design for Lean Six Sigma (DfLSS) for

Innovation

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XeroxHelping our customers do great work!

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Breakthrough research

50,000 global patents A top US innovator:

2 patents/day

5,000 world-class scientists

& engineers

Fuji-Xerox partnership$1.4B R&D/year

IEEE Corporate Innovation

Award

US National Medal of

Technology

Xerox innovation heritage

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Xerox Research worldwide

Xerox Research Center Webster New York, USA

Xerox Research Centre EuropeGrenoble, France

Xerox Research Centre of Canada Mississauga, Ontario, Canada

Fuji Xerox Japan

Leveraging top talent

globally

Palo Alto Research CenterCalifornia, USA

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Xerox Research worldwide

Xerox Research Center Webster New York, USA

Xerox Research Centre EuropeGrenoble, France

Xerox Research Centre of Canada Mississauga, Ontario, Canada

Fuji Xerox Japan

Leveraging top talent

globally

Palo Alto Research CenterCalifornia, USA

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If somebody’s going to eat your lunch it ought to be you!You can’t afford not to innovate – It’s literally do or die

Domains of innovation• Product• Service• Business model

The object of the exercise • Bring the RIGHT offerings to market• Bring them to market fast and cheap

Aligning R&D and innovation goals with the strategic goals and issues of the firm

Balancing across strategic objectives competing for resources• Sustain vs. disrupt core • Support core vs. create new markets

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Design for Lean Six Sigma Recognized value in design engineering

DfLSS: Predictive DesignEarly problem identification; solution when costs lowFaster market entry: earlier revenue stream, longer patent coverageLower total development costsDisciplined CTC flow downProduct performance modeled and simulatedQuality “designed in” - robust product at market entry: delighted customersResources available for next development effort

Pre-DfLSS: Reactive DesignPerformance and producibility problems after product

is in use: Unhappy customersEvolving design requirementsRework: Unplanned resource drainProduct performance assessed by “build and test”Quality is “tested in”

Time

DfLSS Vision:Predictive DesignEngineering

& Program Development

Resources Required

RevenueGeneratedRevenue

w/ DfLSS

Revenuew/o DfLSS

Reference: Air Academy Associates (based on client data)

Launch Launch

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The opportunity for DfLSS in early stage innovation

•Innovation: invention that improves customers’ lives•Structure vs Creativity is a false choice!•DfLSS asks all the right questions• I – What is the unmet need?• D – Have you explored the alternative

solutions?• O – Is your solution robust?• V – Have you tested it?

•Integrate the exploratory nature of innovation•Done right it helps you identify the innovation opportunities

Remember “The Great One”

“I skate to where the puck WILL BE”

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Integrating the exploratory nature of innovation

•QFD and Phase gate processes look linear but they must be applied a spiral with due regard for Pareto

•The tools are a means to an end not the end in themselves

•Make that mistake and the process can indeed kill innovation

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The identify phase in innovation

“If I had asked my customers what they wanted they’d have said a faster horse.”

Henry Ford

Dream with your customers

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Identify: Innovation best practicesUse all the tools of traditional

market research &Ethnography Co-innovate with your customers

Key to gathering unexpressed and latent needs for DfLSS

Hatch Center Video

Xerox Gill Hatch Center for Customer Innovation

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DfLSS as a service of innovation: Lean Document Production

At the Customer for the Customer

Print shop design often reflects history with little of no work process optimization

Cluttered, multiple work paths, not customer focused

Reducing the impact of multiple sources of variability• Job arrival and due dates• Job size and routing• Random machine failure and repair• Labor skill differences • Flexible work schedule• Processing rate variability for equipment• Volume fluctuation

WIP reduction

Responding to changing conditions via real-time scheduling

Cost containment

Day

Volu

me

39035131227323419515611778391

6000000

5000000

4000000

3000000

2000000

1000000

0

_X=2220922

UCL=5074045

LB=0

3_5 4_5 5_5 6_5 7_5 8_5 9_5 10_511_512_51_6 2_6 3_6

111

Daily Production Volume

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Current State Analysis

Job Types Capacity Analysis

ImplementationBar-coded Job Ticket

Control LogicTracking Database Internet Server

Site Survey & Data CollectionFinishing Room

Print Room

Cell Design & Floor Plan Studies

AutonomousCells

Scheduling & Workflow Simulation

Simulation results

LDP Lean Document Production® Assessment Process

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What is left behind with the print shop - New floor plan consisting of autonomous cellsLDP training to utilize the new processScheduling tool and processMonitoring tool

More than 97 LDP engagements performed$200M Cumulative profit before tax Average cycle time improvement = 50%Average improvement in on-time performance = 11%

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DfLSS in Action: Office Document AssessmentAt the Customer for the Customer

Not just how are you producing document and what is their lifecycle

What are you using the information for? A piece of paper may not be the best answer.

Entirely new work processes designed that are both more effective and more efficient

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The case Of TIPP : Tightly Integrated Parallel Printing

Your complexity is not our problem – we believe you can handle itMake us think it’s just like a one engine device except for the increased productivity and reliabilityBeing “out of business” before the service executive gets to them was a key pain point

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Our Response: Nuvera 288

What the customers voice meant to us was:• Consistent image quality• One network connection• Pass through programming

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288 ipmduplex

144 ipmsimplex

144 ipmduplex &simplex,pendingservice

Delighting your customers: Pass Through Programming

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“Best Of Show” at On Demand 2007!•Program launched ahead of schedule and under budget•Exceeding sales and reliability targets

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The challenge of sustainabilityGoal: DfLSS isn’t a program some of us do here and becomes the way things are done here

The tragedy of the commons

Bureaucrac-tization and atherosclerosis

You can expect what you inspect

Continuing coaching for practitioners, sponsors and executives

Plan to evolve the tool set

Culture and Change

•Culture eats strategy for breakfast

•Adopt a sensible change model

•Work with the true believers and create the success stories

•Manage risk don’t minimize it

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Summary• Don’t avoid risk embrace it & manage it• It’s about the portfolio & about coupling potential risk & reward• A risk is a learning opportunity in innovation• Create a culture of positive risk management, not risk avoidance

March , 12, 2008Page 13 MIT risk management Conference

Use a disciplined processRigorous (data driven and metric based)Layered and spiralIncludes explicit risk identification and investigation

Learning and exploiting not just reducing or eliminating

March , 12, 2008Page 15 MIT risk management Conference

Embracing risk: cultural dimensionKey Management Practices• Don’t punish novel “failures”• Celebrate those that learn to move on • A bad result isn’t a bad report card• Fail quick and cheap• All feedback is good

- no matter how it comes

It’s all about risks…

taking the right ones…

at the right time…

moving the odds in your favor.

Treat every risk as a learning opportunity-Is it worth the investment to learn the answer?-What’s the fastest way to learn the answer?-What will you do differently when you get the answer?

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Thank You!

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Xerox DfLSS Program Maturity

In-Bound Strategic MarketingWhy?: Clearly understand market segments and appropriate value propositions. Provide a foundation for systems engineering and systems integrationTraining status: -20 trained/95 target population (22%) -Stakeholder training under development

Software Engineering Why?: Align to VOC, improve cycle timeEliminate rework Training status: -480 trained/985 target population (49%) - Will start XIM, XGS training in 2008 - Stakeholder Training pilot complete - Advanced topics pilot 12/07 - Software BB training currently under development

Electro Mechanical Engineering:Why?: Align to VOC, educe variation in performance, reduce product delivery cycle time, improve reliabilityTraining status: -GB: 940 trained/1370 target population (68%) -BB: 170 trained/390 target population (44%)What’s New: CPM Launched 5/07, eCPM 7/07Reliability Elective launched 9/07Innovation elective launched 9/07Technical Training launched 9/07

Develop

Launch

Enha

nce

Monitor

DfLSS Integration Curve

DfLSS Initiation Curve