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Procedia CIRP 54 (2016) 221 – 226

6th CLF - 6th CIRP Conference on Learning Factories

Enhancing Integrative Capabilities through Lean Product and Process Development

Elisabeth Lervåg Synnesa*, Torgeir Weloa *
a
Engineering Design and Materials, NTNU, Richard Birkeland`s veg 2B, N-7491, Trondheim, Norway

* Corresponding author. Tel.: +47-922-185-66 ; fax: +0-000-000-0000. E-mail address: [email protected]

Abstract

To survive in today’s hostile business environment, companies must constantly introduce new products and adapt their strategy to change.
Managing product variety may therefore be considered as an important competitive factor. However, this requires resources in terms of people,
equipment, inventory and raw material—all of which go against a Lean strategy. Mastering complexity becomes increasingly important in several
industries, and companies must find a way to balance between lean and offering product variety. As robots become less expensive and more
‘intelligent’, in combination with more advanced CAM solutions, automated assembly may become beneficial at much lower quantities than in
the past. Also, development of new manufacturing methods may enable new product designs, and vice-versa. In this emerging paradigm shift—
also referred to as Industry 4.0—companies must enhance their integrative capabilities and facilitate knowledge sharing between product
engineering and production to sustain competitive advantage. This paper discusses organizational capabilities and tools required to enable
transformation into Industry 4.0. Literature on Integrated Product and Process Development (IPPD), Concurrent Engineering (CE) and Lean has
been studied. This state-of-the-art is seen in connection with efforts made in a research project with the goal to increase competitive advantage
by leveraging capabilities in automated manufacturing of large and complex products—a manufacturing context that is regarded as difficult to
automate in an economical way. The results show that investing in the latest manufacturing technology alone will not provide the capabilities
required. It is also necessary to invest in people skills, knowledge and organizational learning. Process design and design-for-automation must
be considered already from the conceptual product design to avoid expensive re-designs and design loops. The use of physical and virtual
demonstrators proved to facilitate an efficient and effective design process.

© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
© 2016 The Authors. Published by Elsevier B.V.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the 6th CIRP Conference on Learning Factories.
Peer-review under responsibility of the scientific committee of the 6th CIRP Conference on Learning Factories

Keywords: "Integrated product and process development; Industry 4.0; Continious learning; Smart manufacturing"

1. Introduction engineer to be T-shaped (1), emphasizing interdisciplinary

skills (2).
1.1 Background To keep phase with customer demands, businesses have had
to slim production to bare bones. For many company`s this has
Today, the global economy is characterized in terms of rapid involved relocation of production or even outsourcing of
technological changes, customization and the need for fast time capabilities (3). Further, leveraging product variety as a
to market. Value creation, competitiveness and hence competitive strategy requires more designers and engineers,
sustainable growth are dependent on development and more components and raw material, more changeovers in
utilization of new technology. To survive companies must production lines, higher inventory levels, more equipment, etc.
constantly introduce new products, processes and technologies (4)—all of which go against a lean strategy.
faster than their competitors do. The pressure on the designer However, forward-looking businesses increase the level of
increases as the product life cycle shortens, and the complexity in-house production by investing in advanced production
of modern products requires the competency profile of the technology, reducing labour to a less significantly portion of
the production cost. Such investments in highly automated and

2212-8271 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the scientific committee of the 6th CIRP Conference on Learning Factories
doi:10.1016/j.procir.2016.05.090
222 Elisabeth Lervåg Synnes and Torgeir Welo / Procedia CIRP 54 (2016) 221 – 226

IT-driven production are often referred to as Smart for significantly more effective production methods than those
Manufacturing, which is a concept that marries information, used in the pre-series.
technology and human strength (3). These new production The PM motor consists of two main parts, stator and rotor,
methods facilitate a lean way of thinking, which changes the which are built up by more than 100 components. The stator
premises for competition and consequently the fundamentals carries a number of electrical coil windings, and the rotor is
for a company’s business system. fitted with strong permanent magnetized magnets. It has a
Advancement in technology often requires changes in the propeller diameter of 1,600 mm and a total thruster weight of
organization to achieve productivity gain (5). This includes more than 7,000 kg.
both investments in terms of capital and acquiring knowledge This paper addresses the challenge of developing and
(5); i.e., leveraging R&D to keep phase with technology and be introducing new technology in a company that is producing
able to offer integrated solutions (2). products in a high-cost country, seeking to explore the
following topic: How to enhance a company`s integrative
1.2 Industry 4.0 capabilities, facilitating changes required to enable an
emerging transformation into Industry 4.0? More specifically,
The Industry 4.0 concept is representing a paradigm shift, the objective is to identify the challenges of product and
where physical objects are seamlessly integrated into process development of complex products for a competitive
information networks (2; 6). This may enable improved world-market with basis in Norway.
infrastructure for sharing information where design, product The reminder of this paper is organized as follows: Section
development and manufacturing are closely integrated. When 2 presents relevant literature on design development processes.
combined with increased digitalization, the concept may open Section 3 addresses the problem in light of the literature
up radically new ways of designing products and presented in Section 2 and with efforts made by RRM to
manufacturing systems. The dominant technologies within succeed with automated assembly in a high-mix, low volume
Industry 4.0 are expected to be IT, electronics and robotics (2), context. Finally, Section 4 presents concluding remarks.
and may facilitate improved manufacturing processes allowing
high levels of automation as well as engineering, material 2. Theoretical Background
usage and life cycle management.
External drivers such as introduction of new materials and 2.1 Product Design Processes
technologies influence the way products are designed and
exploited. Design is often constrained by the fabrication For a company to convert its technology and ideas into new
method such that a new manufacturing technology will create products that meet customer requirements and the strategic
a technology push in design. An example is 3D printed parts, goals of the company, a product development system that
which can enable lighter parts and improved material effectively integrates people, processes and technology is
utilization if the design fully utilizes the opportunities of the needed (9; 10). Methods that lead to shorter development time,
processing process. faster product realization, reduction of product development
Traditional automation has not been able to offer the cost and improved quality must be leveraged.
flexibility and agility required for rapid configuration for new Integrated Product and Process Development (IPPD),
product demands (7). However, the development of 3D Concurrent Engineering (CE) and Lean Product Development
CAD/PLM software, computer vision, sensor technology and all aim to speed up innovation processes using somewhat
new programming methods may increase the use of robots in different approaches. What all these ‘schools’ have in common
the coming years, thus making automatic assembly is to facilitate design decisions, tackle conflicting goals and
economically feasible at much lower quantities than in the past. avoid costly redesign and unpredicted problems or
compromises that degrade the final product (11). While CE has
1.3 Motivation its roots in western product development, Lean has been
developed from the Japanese perspective, i.e. the Toyota
Rolls-Royce Marine (RRM) has proven capabilities in Production system (12).
system integration, ship equipment and design (8). RRM has a
varied product portfolio consisting of several large and Concurrent Engineering (CE)
complex products, typically produced in volumes of less than The design and development process can be more efficient
1,000 units p.a.. RRM’s products are typically customized, by executing working steps in parallel (13). A working method
engineer-to-order type products. To sustain competitiveness emphasizing this is CE. According to Winner et al. (14)
more cost-effective engineering and manufacturing methods “Concurrent engineering is a systematic approach to the
are required. As a result, RRM together with research partners integrated, concurrent design of products and their related
has invested in a research project named Autoflex. The processes, including manufacture and support. This approach
intention is to determine capabilities of automated assembly of is intended to cause the developers, from the outset, to consider
large and complex products that require close fit-up tolerances. all elements of the product life-cycle from conception through
The case is a Permanent Magnet Tunnel Thruster (PM-TT), disposal, including quality, cost, schedule, and user
which is a new product from RRM that fits well into the requirements.” CE puts a huge emphasis on multi-disciplinary
description above. Competitive production of the PM-TT calls teamwork, and has gained high acceptance and represent now
the industry standard.
 Elisabeth Lervåg Synnes and Torgeir Welo / Procedia CIRP 54 (2016) 221 – 226 223

The challenge associated with CE is that—as the design To succeed, however, creating the right culture, strategy and
concept passes between the different functional groups for environment is just as important as implementing lean tools and
assessing feasibility—every change causes a myriad of techniques. Lean product development requires a cultural
changes, analyses, and hence additional communication transformation into a learning organization (9). According to
demands (15). These design iterations take time and resources, Karlsson & Åhlström (22) success requires employing
and in many cases the product design is transferred into a interrelated techniques as elements of a coherent whole.
suboptimal solution as the team typically runs out of time. It is important to initiate and execute value-creating
Further, there is a risk of starting with a design and a process activities with the correct information input. An important
that is not the best starting point for the solution. This may lead principle in innovative lean development (21) is the use of rapid
to iterations over a solution that is non-optimal (point-based learning cycles as a short burst of learning. Prototypes enable
approach) and the time spent late in the process is characterized rapid learning and minimize mistakes as well as integrate
by find-and-fix it (15; 10). different functions. However, prototypes used for rapid
Front-loading of the product and development process by learning are only feasible when developed quickly and
considering several solutions before narrowing down is termed inexpensively. By combining CAx technologies and Virtual
Set-Based Concurrent Engineering (SBCE), Sobek et al. (15). Reality (VR), prototypes with high ‘functionality’ can be
SBCE is claimed to lead to more efficiency and improved produced faster and cheaper than before (24; 16).
product integration later in the process. Instead of selecting and
refining one concept, SBCE consider a broader range of 2.2 Supporting tools in the product design process
concepts, excluding those solutions that are not sustainable by
eliminating alternatives step by step. The paradox (10) is that CE, IPPD and lean NPD can enhance a company’s dynamic
this will delay some decisions, but in return, the whole process capabilities. However, what actually happens within that
may be faster and more efficient. Moreover, a set-based process or structure is dependent on the activities and how they
approach is beneficial when the cost of rework is high (16). are executed. In addition to creating the right culture, there is a
need for tools and techniques that support activities. This
Integrated Product and Process development (IPPD) requires subsystems that are fit for purpose, highly efficient
Development of a new product may demand new processes processes are of no use if the people does not possess the skills
such as manufacturing, logistics and data collection (17). The required (10). Designers must be creative experts, correctly
term IPPD is defined by the Department of Defense (DOD) timing the application of tools with input from the right
(17) as; “a management technique that integrate all acquisition participants in the project (25). This may increasingly withdraw
activities starting with requirements, definition through designers from traditional fields of expertise as they must both
production, fielding/development and operational support in execute and manage the design process considering viewpoints
order to optimize the design, manufacturing, business and from several stakeholders. Here, design guidelines, procedures
supportability processes”. Further, IPPD emphasizes the use of and evaluation tools are useful support. These embody the CE
design tools such as modelling and simulation to develop the philosophy of considering the downstream impact of decision-
product and process concurrently (17; 11). IPPD is a broad making (26; 27; 28).
concept where a multidisciplinary team, also referred as The main sources of design guidelines include the literature,
Integrated Product Teams (IPT), is responsible for delivering a the direct experiences of practising designers and the
defined product and/or process (17). The interactions within the established design practices in engineering organisations (26).
design process are rapid, highly concurrent, interactive and The most common concepts are design for manufacturing
iterative (11), emphasizing customer input and creating more (DFM) and design for assembly (DFA), which provides
manufactural designs (18). designers with tools to evaluate design-decisions and involve
An iterative design strategy is attractive when the quality of simultaneous considerations of design goals and manufacturing
the first guess is high, cost of re-work is low and feedback is ‘constraints’ (29; 27).
fast (16). Eskilander (30) presents a method for designing products for
automatic assembly (DFA2) at both part and product level.
Lean Product Development DFA2 is a set of structured design rules with a quantitative
Lean is often associated with production of physical scoring of the product design indicating how “good or bad the
products where the aim is repetitive operations achieving high design is” combined with qualitative evaluation criteria also
quality outputs at the minimum cost and time; i.e., maximizing giving information on how to design for automated assembly.
customer value while minimizing waste (19). Lean product One way of creating the strategic, flexible product design
development is a total philosophy suitable to improve required to allow product variation without changing the
efficiency in product development with basis in customer overall product design each time a new variant is introduced, is
value. Several sources in the literature have discussed lean in to establish modular product platforms (31). Modularisation
the new product development (NPD) process (20; 21; 10; 22). offers increased use of standard parts, and the possibility of
Compared to CE and IPPD, lean product development has a standardized interfaces and components, enabling
strong focus on value and waste (23). However, compared to standardization of manufacturing processes and tooling.
shop floor lean, becoming “lean” is more associated with However, a risk associated with modularisation is
increasing value than removing waste in lean NPD (20). compromising product functionality. The key is matching the
solution spaces of product and production design (32).
224 Elisabeth Lervåg Synnes and Torgeir Welo / Procedia CIRP 54 (2016) 221 – 226

3. Discussion defining the gap between the problem and solution identifies
where innovation is needed.
3.1 The Autoflex project Sobek et al. (15) emphasized SBCE on product concept
level. In Autoflex, SBCE has been applied on business level,
The literature presented in Section 2 will now be seen in re-designing the product and integrating verified solutions with
connection with efforts made in a research project named existing product platform. Since PM-technology is relatively
Autoflex. The underlying goal of the project was to achieve new to RRM and the product has a complex functionality, it
cost-effective manufacturing of low volume, complex and was necessary to verify functional requirements with a non-
heavy products in high cost countries. The case product, PM- optimal production process to avoid too many variables at the
TT is a large and complex product with tough requirements for same time. However, driving technology or manufacturing too
tolerance design and strict requirements to operating life. The far without the other factors creates an investment risk. This is
original design of the PM-TT requires a high degree of manual particularly important for complex products since this often
labour operations and it was early on identified that automation requires dealing with a high level of uncertainty and significant
would not be cost efficient without modifications to the investment costs. Developing the conventional design in
existing design. parallel (set-based approach), was demanding yet necessary,
By combining design-for-automation and state-of-the-art and searching for the optimal solution required several
production technologies the project has delivered a physical iterations.
demonstrator in only two years proving fully automated To narrow down solutions one can use multiple learning
assembly of the PM-TT rotor. Also a virtual demonstrator of cycles as emphasized by innovative lean development (21).
the automated assembly process for PM-TT stator has been However, learning cycles can be costly when designing
developed. The project has introduced new methods and complex products since physical prototypes often are
guidelines for engineering and development of large and expensive and time consuming. In Autoflex, simple
complex products produced at low volume. demonstrators, both physical and virtual, were used to verify
design changes before a final more comprehensive prototype
3.2 Enhancing the company`s integrative capabilities was tested. Simulation of the assembly process based on the
CAD model enabled testing before design was released and any
A plant cannot be fully competitive by only improving expensive equipment was purchased.
operations if the design is defective (29). The design solution The use of simulation enables lean decision-making
must not only satisfy the quality and functional requirements of throughout the development process. The lead time from
the product, it must also meet certain specifications for fitting design to verification of the assembly process can be reduced
the manufacturing process within the company. On the other by virtual manufacturing technologies in combination with
hand, Koufteros et al., (33) argue that excellence in product automated programming methods from CAD models. A
development can just as easily be eroded by manufacturing demonstrator of an automated assembly process for the PM-TT
weaknesses. stator was programmed and simulated based on the CAD
The key to offer competitive solutions in the market place is model. It was experienced that the frequency of design
considering product, people, process and tools/technology as a iterations increases as one iteration can be performed in a
total system. In this perspective it is important to invest in fraction of the time and cost compared to an iteration on a
knowledge and organizational learning in a strategic physical prototype.
perspective. For example, buying a robot is easy compared to An animated movie, presenting the project vision, was used
leveraging the people skills for incorporating it in the when starting up the project to ensure that the multidisciplinary
production environment in the most beneficial way for the team had a common understanding of the project task. This
company. ensured strategic information input facilitating concurrent
In the Autoflex project, automation knowledge was activities (20).
leveraged from external experts and combined with internal Terwiesch et al. (16) argue that neither a set-based nor an
expertise in products and technology. This ensured a team with iterative approach are superior over the other. What influence
multi-disciplinary skills possessing knowledge of the trade-off between set-based and iterative strategy is; quality of
technologies required to develop an automated solution for the educated guesses, the engineering change support process and
PM-TT. Weekly meetings and close dialogue ensured that the exchange of information regarding interdependencies
functional requirements were balanced manufacturing between components, and what kind of changes are expected
solutions—and vice versa. to cause substantial work.
When automated assembly of PM-TT first was investigated,
the findings indicated increased factory footprint, large robots 3.3 Guidelines and tools enhancing integrative capabilities
and significant investments for handling part size. The efforts
made to make automated assembly cost-efficient, triggered re- The Autoflex project has changed the mind-set of
design and new thinking; e.g., a large component of the PM- manufacturing in RRM towards developing the product and the
TT was divided into separate modules, which facilitated the use automation process in parallel. One main argument is that
of standard robots with much less space requirements. This is relative small changes to the product design can have a huge
a good example of manufacturing constraints creating a impact on rational production. Design-for-automated assembly
demand for innovation. According to Schipper & Swets (21), led to simpler product and production methods. A direct result
 Elisabeth Lervåg Synnes and Torgeir Welo / Procedia CIRP 54 (2016) 221 – 226 225

of the re-design is that the automated process time is reduced cannot only be based on general principles found in the
to a fraction of the time compared to the initial manual process. literature, such as design principles for automated assembly by
When aiming to utilize new manufacturing technologies, as Eskilander (30), but also on the specific production context.
the case in Autoflex, the design of the product, the facility,
workstations and equipment are all important. One important 4. Concluding remarks
experience is that process design, and design-for-automation
must be considered already from the concept design to avoid To sustain competitive within the emerging industry
expensive re-designs. paradigm shift denominated Industry 4.0, there is an additional
A challenge in low-volume production is that there are need to consider manufacturability also for complex products
fewer parts between which development cost can be produced in low-volumes. A lessons taught from the Autoflex
distributed. Hence, the cost of material and labor is weighted project is that investing in the latest technology alone will not
less important than in high-volume production where provide the capabilities required; it is also necessary to invest
significant resources are commonly used on tooling, in knowledge.
manufacturability and engineering (34). The use of virtual manufacturing and process simulation
In Autoflex, re-designing the product was the key factor to increases the frequency of design iterations in the development
enable cost-effective automated assembly of the PM-TT. For process and may reduce the verification time and cost
example, design of a part requires designing the gripping tool significantly. Further, this facilitates a leaner product and
used in production. If considered early, one can reduce the cost process development enabling corrective actions to be taken
of the tool by designing appropriate geometry and surfaces of before design release for production and the solution is still on
the part for gripping. Moreover, modeling the assembly the drawing board.
solution at an early stage led to re-design of bolt holes to avoid Based on experience gained in the Autoflex project, we
collision between mounting tool and the product. suggest that there are two directional paths for a company to
The Autoflex project has also brought intelligence into the enhance its integrative product development capabilities:
assembly process. Examples are advanced use of sensors (3D (a) to leverage agile strategies for Integrated Product and
vision and force-feedback) that compensates for tolerance in Process Development (IPPD);
the gripper (and the robot), enabling assembly with close fit-up (b) to frontload resources in early phases when cost of
requirements. learning is low and the design space is wide, using methods
Automation usually requires high volume of standardized such as SBCE.
parts. Modularization and standardization require less In Autoflex, the key was to master both a) and b) to ensure
flexibility in the production system. In Autoflex, this resulted that neither manufacturing nor technology was driven too far
in reduced part count and operations; e.g., by integrating dowel without support in the other. Moreover, this working method
pins as part of component. Another simple example is to have ensured a strong integration of manufacturing and product
the same amount of bolt holes on a single component, instead engineering. This enabled the company to choose problem
of having products with different number of screws. In solving strategy based on the complexity of the task, the
addition, standardization of screw dimensions allows one tool technical characteristics and the problem-solving capabilities
and one feeder to be used. of the organization.
Design guidelines can be useful to establish best-practices Within the Industry 4.0 concept, a company must be able to
and a repository of design tools. The project has provided rich absorb new technologies that change the premises for
data and information for developing guidelines for automated competitive production. This implies that a company must
manufacturing. These guidelines can be useful in the further strengthen its absorptive capabilities to avoid being boxed in
work of developing the complete PM range and help identify by current capabilities for designing a new product and its
interfaces between process and design. Such guidelines would belonging processes.
be a good starting point for utilizing the production system and
achieve higher volume. Care should be taken in preventing that Acknowledgements
standardization and modularisation reduce product
functionality, especially for complex products (35). Moreover, We would like to express our thanks to the involved parties in
too much focus on standardization and modularization may be the Autoflex project for the support and valuable inputs
a hindrance to innovations (36). provided to our work. We particularly thank Rolls-Royce
Design is limited to the way the product is made. However, Marine for allowing us to get insight into the development
a company`s ability to absorb new technologies should not be process of PM-TT. This work was funded by Rolls Royce
limited by its current capabilities when designing a new Marine and the Research Council Norway, who are both
product and the production process. The designer must be gratefully acknowledged.
aware of internal workshop capabilities, as well as the ones of
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