Lean Product Development Calculator

Our Lean Product Development Calculator will help you to estimate the benefits you can receive through the application of Lean Principles. Areas of benefit include:

Reduced Product Development Costs - understand cycle time reductions and the extra capacity your development process contains, and cost savings from reducing the risk of failed products
Reduction in Time to Market – see how cycle time savings can benefit your company in the market place
Improvement in Quality – explore how the application of excess capacity can improve product quality and reduce quality and warranty costs
Improvement in Innovation – identify the affects of applying increased product development capacity to R&D and the gross margin improvements that can be realized

Please provide your answers to the following questions and we will send your answers to the email address you have provided.

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	Annual Number of New Product Launches
$	Annual Product Development Cost per Product
	Average Product Development Cycle Time (months) - Concept/Award to SOP
	Average Number of New Product Concepts that Fail to reach market annually
	Annual Product Development Effort per Program (man-days)

All of the fields below have been pre-populated based on average results/expectations from previous users, however, you are free to adjust them to reflect your specific expectations:
	Product Development Costs
%	Enter your expected reduction in overall cycle time through application of lean principles. Lean experts routinely experience 60% - 70% reduction in cycle time.
	Enter your anticipated number of annual failed new product concepts after application of Lean. Customers have experienced up to 66% reduction of product failures through improvement of collaboration, analysis of alternatives and better application of customer requirements.

	Excess Capacity
	When lean is applied to your product development processes, the resulting reductions in cycle time will create additional product development capacity. How do you plan to apply that additional capacity? Please note that your allocations should add up to 100%.
%	Enter the amount of engineering surplus to be applied to Quality Improvement.
%	Enter the amount of engineering surplus to be applied to Innovation
%	Enter the amount of engineering surplus that will be Eliminated Note: Quality Improvement, Innovation & Surplus Elimination percentages above should add up to 100%.

	Innovation
	Enter your current annual number of man-years allocated to R&D (all products combined).
%	Enter your company's Average Gross Margin.

	Innovation Distribution
	Under the Excess Capacity header above, if you allocated a percentage of your additional product development capacity to Innovation, to what areas of your business are you most likely to apply this additional innovative capacity? Please note that your innovation allocations should add up to 100%.
%	Core Products Expected Benefit: Maintain Gross Margin & Customer Base
%	Adjacent Investment Taking core products to new geographies/customer segments or modifying products to offer existing customers something new. Expected Benefit: 20% - 25% improvement in Gross Margin
%	New Products, Services or Programs Products, services or programs that current customer base could not normally attribute to you or your business. Expected Benefit: >50% improvement in Gross Margin Note: Adjacent Investment, Expected Benefit and New products/services fields should add up to 100%.