“Too many mangers
think that the key problem with product development is the surprises.
They try to eliminate all variability from the process. By now you should
understand that it is the uncertainty that creates the information and the
information that crates the value of product development. This means that
it is foolish to try to drive out variability from the development
process.
“We would
propose an alternative solution. We need to create processes that
continue to function in a world with variation. Fortunately, there are
abundant tools to do this. The primary obstacle to using them is the
belief that product development is or should be deterministic. It is time
to discard this notion and use the right tools. It is time to recognize
that the emperor has no clothes on, and that he never will. We need to
treat development as a process with inherent variability [and] approach
development process design with the objective of making the process
tolerant of variability as a key design objective.”
These are the
words of words of product development expert Donald G. Reinertsen in his
excellent book, Managing the Design Factory, Free Press, 1997.
A co-author Developing Products in Half the Time, John Wiley and
Sons, 1991, Second Edition 1997, Reinertsen developed simple economic
models for trading off development cost, unit cost, product performance
and development delay. In Managing the Design Factory, he
sets out to show how to apply the principles of Lean Manufacturing to
Product Development, and how not to apply them.
Try-it-fix-it gives better quality faster
“There are two
schools of thought as to how we might get to [a] good design. One
school holds that we should strive as developers to reduce the error
rates. If we keep analyzing the design to minimize the number of
errors, we will get a better design on the first try.... The other
school of thought says: do it, try it, fix it. This school
lacks the moral high ground of the other approach, but is well-grounded in
the practical observation of what works for successful companies in the
real world.” says Reinertsen in Managing the Design Factory.
He goes on to show that a reduced cycle time for iterations produces lower
defects in less time. “On the surface, this seems too good to be
true. The try-it-fix-it approach is faster and higher quality.”
Reinertsen says. However, as long as iterations do not contain
significant fixed costs, the try-it-fix-it approach dose in fact produce
better quality faster.
The reason for
this is that design processes must create information if they are to add
value. Creating information involves finding failures, especially
unexpected (or low probability) failures. “The fallacy in thinking
that high first-pass success optimizes the design process lies in
underestimating the importance of information generation that occurs with
failure.”
Do It Right The Second Time
Reinertsen
notes that once we learn from a failure, it is a waste to learn the same
lesson again. So we need to learn how to create failure and how to
avoid the same failure a second time.