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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
April 30, 2008Page 2 Lean & Six Sigma Summit
XeroxHelping our customers do great work!
April 30, 2008Page 3 Lean & Six Sigma Summit
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
April 30, 2008Page 4 Lean & Six Sigma Summit
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
April 30, 2008Page 5 Lean & Six Sigma Summit
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
April 30, 2008Page 6 Lean & Six Sigma Summit
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
April 30, 2008Page 7 Lean & Six Sigma Summit
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
April 30, 2008Page 8 Lean & Six Sigma Summit
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”
April 30, 2008Page 9 Lean & Six Sigma Summit
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
April 30, 2008Page 10 Lean & Six Sigma Summit
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
April 30, 2008Page 11 Lean & Six Sigma Summit
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
April 30, 2008Page 12 Lean & Six Sigma Summit
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
April 30, 2008Page 13 Lean & Six Sigma Summit
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
April 30, 2008Page 14 Lean & Six Sigma Summit
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%
April 30, 2008Page 15 Lean & Six Sigma Summit
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
April 30, 2008Page 16 Lean & Six Sigma Summit
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
April 30, 2008Page 17 Lean & Six Sigma Summit
Our Response: Nuvera 288
What the customers voice meant to us was:• Consistent image quality• One network connection• Pass through programming
April 30, 2008Page 18 Lean & Six Sigma Summit
288 ipmduplex
144 ipmsimplex
144 ipmduplex &simplex,pendingservice
Delighting your customers: Pass Through Programming
April 30, 2008Page 19 Lean & Six Sigma Summit
“Best Of Show” at On Demand 2007!•Program launched ahead of schedule and under budget•Exceeding sales and reliability targets
April 30, 2008Page 20 Lean & Six Sigma Summit
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
April 30, 2008Page 21 Lean & Six Sigma Summit
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?
April 30, 2008Page 22 Lean & Six Sigma Summit
Thank You!
April 30, 2008Page 23 Lean & Six Sigma Summit
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