Companies that use lean processes in their product development enjoy a significant performance gap over their competitors in meeting targets for product launch dates, product development costs, product cost, product revenue and quality," according to Aberdeen's Lean Product Development Benchmark Report.
The report found that Best-in-Class companies are hitting these targets on over 80% of their products while average companies hit these targets less than 60% of the time. As a result, Bes-in-Class performers enjoy 53% more productive product development time per person than their average competitors, and bring products to market 25% faster on average.
Here are some highlights from the report:
- Best-in-Class companies are 1.4 times more likely to be involved in Lean product development strategy for more than a year versus companies on average.
- 69% of better-performing companies are focusing on value-added activities, and the focus is earning rewards in high efficiency.
- Best-in-Class are committed to driving a culture of Lean throughout the organization, with 70% currently establishing Lean change or process improvements to drive operational excellence and change, versus 35% of both laggard and average counterparts.
Based on the study Aberdeen has specific recommendations for manufacturers:
- Validate designs early, co-develop and validate products to confirm manufacturability and prevent design rework.
- Develop a Lean culture by enabling change at all levels and measuring product development with metrics.
- Reduce variability, by standardizing work processes and deliverables and reducing risk through the use of design sets.
- Streamline processes, including improving process flow and aligning information with processes.
For a copy of the study visit:
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