Lean principles lead to transformation of a large R&D function

Faced with difficult market conditions, Mitsubishi Fuso a Japanese truck manufacturer, applied lean principles to reduce its R&D costs. The R&D division had of over 3,000 employees accounted for nearly 20% of the company's fixed costs. Two basic tests were applied to every aspect of the R&D function, from the product-portfolio level down to the individual activities: "1) Will this action deliver something customers need ...? 2) Is this action being conducted in the most efficient, least wasteful...

BPIR Categories

14.3.5 Reengineer business processes & systems
5.5.3 Improve process/product performance
3.2.6 Review and improve design process