Lean Corner

How to Use Lean for New Product Development

What Are the 4 Main Goals of Lean Product Development?
What Are the 5 Success Factors (SF) for Achieving Lean Product Development?

When a company wants to innovate both in its products and services, it can implement a methodology: Lean Product Development. This methodology aims to develop the product or service in a short amount of time while maintaining high performance and ensuring good long-term margins for the company. To achieve quality results, while avoiding delays and cost overruns, the entire company participates in the innovation process.

What Are the 4 Main Goals of Lean Product Development?

1. Reduce Time-to-Market

Jack Welch, former CEO of General Electric, once said: “Speed is everything. It is the indispensable ingredient for competitiveness.” Indeed, for any company seeking to remain competitive, reducing time-to-market has become essential. To shorten the time between initial expenses and revenues, it is crucial to accelerate the development cycle. Nowadays, companies must focus on capturing market share quickly and introducing new products more frequently. To achieve this “speed,” it is important to optimize every step of the development process. This optimization involves rapid prototyping and establishing short feedback loops with customers.

Reducing time-to-market also enables quicker adaptation of products based on market changes and customer needs.

2. Optimize Product Performance

A company’s goal is not to create a perfect product, but one that satisfies as many users as possible.

Product performance is evaluated based on its intrinsic qualities, but more importantly, on the value perceived by the customer. Therefore, it is crucial to have a deep and specific understanding of the customer’s needs and expectations.

Customer feedback plays a key role in optimizing product performance throughout the development process. This feedback can be gathered through user testing, surveys, and market studies.

The aim is to create not only functional products but, above all, products that are appreciated and embraced by the market.

3. Reduce Unit Cost

For those looking to maximize their margins, here’s a piece of advice from Elon Musk: “Reducing cost is the easiest and most effective way to improve profitability.” In other words, start by focusing on your costs.

Reducing costs involves optimizing manufacturing processes by identifying and eliminating non-value-added activities, while minimizing waste. To survive in an increasingly competitive pricing market, it is essential to lower costs (and thus increase margins).

4. Minimize Development Expenses

The ultimate goal? To optimally use resources to achieve set objectives while reducing timeframes and costs. A key tip: carefully plan projects and monitor costs at every stage to minimize development expenses.

What Are the 5 Success Factors (SF) for Achieving Lean Product Development?

1 : Encourage & Trust

The qualities of a good manager include the ability to encourage and trust. To ensure successful project development, managers must promote autonomy and create a healthy, collaborative work environment. It is essential that every team member feels trusted and empowered to maximize their potential.

2 : Understand Your Customers

As mentioned earlier, the goal is not to create a perfect product but one that fully satisfies users. Taking the time to understand customers and their context becomes a crucial step. Their feedback will help discover better solutions and possible optimizations, allowing for a more precise response to their needs. In-depth market studies, user interviews, and data analysis to understand trends and behaviors of the target audience will facilitate this customer insight.

3 : Product Development is a Team Sport

Lean Product Development is a collaborative approach. Involving various teams throughout the process—from the initial idea to delivery—maximizes value creation and prevents organizational silos.

For successful product development, open and transparent communication, as well as close collaboration between different functions within the company (R&D, marketing, production, logistics), is essential.

4 : Integrate Learning and Knowledge Reuse

The goal is not to reinvent the wheel, so it is essential to encourage rapid learning and the reuse of existing knowledge.

Capturing and reusing new knowledge can truly become a long-term competitive advantage. This requires discipline: lessons learned and best practices must be documented and shared across the organization.

5 : Anticipate Future Obstacles

Decisions made throughout the development cycle must support future growth. This means it’s crucial to think about potential manufacturing, purchasing, and logistics challenges that a design choice could create from the very start.

In conclusion, when a company seeks to innovate quickly, with high performance and good long-term margins, it can apply lean practices in its product development.

By placing people at the heart of the project, understanding customer needs, and promoting collaboration and continuous learning, companies can not only improve the quality of their products but also reduce time-to-market.

Lean Corner