Optimizing stakeholder value and reducing waste in new product development projects

Applying lean thinking to product development requires the adaptation of "traditional" lean concepts, as many activities, such as specifying customer requirements, testing, measuring, and analyzing may be viewed as type 2 waste under the lean framework. Skipping or short-changing these steps may be disastrous in terms of end-product quality and customer service, as customers learn that the developer did not understand their true needs. Still, there is a clear need to eliminate waste in product development, in order to reduce lead-times and maximize stakeholder value. This paper proposes a structured approach to define an optimized product development process at the project-level. This approach focuses both on maximizing stakeholder value through better value identification methods, and promoting optimal flow, through the use of modern development techniques such as virtual prototyping and the reduction of project waste. The application of this approach is illustrated through case examples from an engineering support organization. Copyright