Sales & Operations Process Improvement
Lean Product Development Process

September 2010
In This Issue
Professor Mitch
Client Testimonial
Lean Product Development
Greetings!
 

How many products or services hit the market and are too expensive, too big, don't have the desired features or take too long to develop?

 

Lean is a Process Improvement Tool to reduce waste in organizations.  Few processes cross over as many different departments in a company as product development.  Product development can include hard-goods, software or new services.  As the efforts cross marketing, research, engineering, purchasing, operations and sales there are numerous opportunities for the product development effort to stall or reverse direction.  This can be due budget problems becoming visible; product definition being rushed and/or the operational problems. 

 

By applying Lean concepts to product development, you can create profitable products faster.  However, before you do, you will have to learn that sometimes slower is faster. 

 
Sincerely,

Mitch Millstein & Ray Davis

 Professor Mitch
I want you to know that I have entered a Ph.D in Supply Chain Management program at the University of Missouri.  It is a part-program that I will hopefully complete in 4 - 4.5 years. 

I am learning new quantitative tools that should help me solve additional problems for my valued Clients.   I will also be researching Sales & Marketing Decisions, the affects of these decisions on the Supply Chain and therefore profitability of the enterprise.  I expect to find additional quantitative models that can be used to help you profitably grow sales. 
 
Client Testimonial

"Closure Medical completed a major reorganization in order to enhance our ability to rapidly create innovative medical devices.  We hired Supply Velocity to help us map out the process and service flows of the new organization that would maximize our product development process (PDP).  In four weeks, Supply Velocity helped us envision a new PDP structure, develop measures and accountability for each step, and gain consensus within the organization.  Supply Velocity's focus on speed and accountability helped us complete a critical project in a timely fashion."

 

Gabe Szabo

President

Lean Product Development Process


The Lean Product Development Process Stages

Return on Investment Analysis

Marketing Specification

Concept Design

Design Product or Service

Pilot Manufacturing Run (if applicable)

Field Test

Launch Marketing Plan

Review Product Profitability versus Plan

 

Stage-Gates

More important than each individual stage is the concept of the "stage-gate".  A stage-gate is a place in the process that, after everyone signs-off, they cannot go backwards. 

 

Initially, stage-gates can seem to slow down the process.  Until the department or team downstream of a stage-gate accepts the input to their stage of the process the effort cannot go forward.  However, this will actually make the process faster, and much more effective, because it creates accountability and eliminates the possibility of getting a product that is too expensive, slow, large, etc. from getting to the market.  Products & Services are designed to sell profitably and launch when scheduled. 

 

The other importance of the stage-gate process is that as product development progresses, it gets more expensive.  Final design requires more time and resources than concept design.  The launch of the product or service is most expensive of all stages, as the company will be spending money to market the product or service and will most likely begin marketing expenditures.