The Challenge
![](https://kaizen.com/wp-content/uploads/2022/09/current_state_philips.png)
Problem
- Lengthy development lead time
- Last stage of the project plagued with rejects and rework
- Not enough development capacity
- Sales are not maximized by dropping customer requirements throughout the process
Root Causes
- Lack of communication between departments
- Rigid and bureaucratic process
- Development focus only on closed concept
- Inputs and exchanged requirements throughout the process
The Solution
![new-process-design-innovation](https://kaizen.com/dist/filemanager/Uploads/uk/solution_design_philips.png)
• Obeya control and standardization of lean scheduling to increase communication
• Customer interests’ events, feasibility planning, learning cycles and integrating events to improve project quality
• Flow cells creation to reduce project lead time
• Documentation Standard Work to reduce project cost
The Results
The project had a payback period of less than 3 months with annual savings of £4.5 million.
![sales-forecast-benefits](https://kaizen.com/app/images/pt/innovation/Innovation_speed_benefits_1.png)
Real Sales vs. Forecast Sales
Accuracy of sales forecast increased by 18%
![development-effort-benefits](https://kaizen.com/app/images/pt/innovation/Innovation_speed_benefits_2.png)
Development Productivity
Development productivity increased by 8.6%
![project-lead-time-benefits](https://kaizen.com/app/images/pt/innovation/Innovation_speed_benefits_3.png)
Project Lead Time
Project Lead Time reduced by 50%
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