QUICK Update
APRIL 2006 ISSUE

"The Toyota Product Development System: Integrating People, Process, and Technology"

James Morgan and Jeffrey Liker

New York: Productivity Press, 2006

This book makes a major new contribution to our understanding of Toyota's success. Though the Toyota Production System has received a lot of attention as the prototype for Lean Manufacturing, the Toyota Product Development System has been relatively poorly explained in the literature. Toyota has excelled in new product quality in the J. D. Powers Initial Quality Surveys.

Starting from the three subsystems (process, people, and technology), of the Sociotechnical Systems approach, the authors identify 13 principles of the Lean Product Development system:

Under the process subsystem (defined as "all the tasks and the sequence of tasks required to bring a product from concept to start of production"), the principles are (1) Establish Customer-Defined Value to Separate Value-Added Activity from Waste; (2) Front-load the Product Development Process While There is Maximum Design Space to Explore Alternative Solutions Thoroughly; (3) Create a Leveled Product Development Flow; and (4) Use Rigorous Standardization to Reduce Variation and Create Flexibility and Predictable Outcomes.

Under the people subsystem (which includes "recruiting, selecting, and training engineers, leadership style, and organizational structure and learning patterns"), the principles are: (5) Develop a Chief Engineer System to Integrate Development from Start to Finish; (6) Organize to Balance functional Expertise and Cross-Functional Integration; (7) Develop Towering Technical Competence in All Engineers; (8) Fully Integrate Suppliers into the Product Development System; (9) Build in Learning and Continuous Improvement; and (10) Build a Culture to Support Excellence and Relentless Improvement.

Under the tools and technology subsystem (which includes CAD systems, machine technology, digital manufacturing and testing technologies, and the "soft" tools that support the people in the development project), the principles are: (11) Adapt Technology to Fit Your People and Processes; (12) Align Your Organization Through simple, Visual Communication; and (13) Use Powerful Tools for Standardization and Organizational Learning.

The book dedicates a full chapter to each of the above principles. There are also chapters on Putting the Pieces Together into a Coherent System; Eliminating Waste in the Product Development Value Stream; and Getting to Culture Change—the Heart of Lean Product Development.

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© 2006 by General Physics Corporation
All rights reserved