7 Alternatives

Introduction

Excessive product costs often stem from the failure to select optimal manufacturing processes during new product development. In many cases, industrial and manufacturing engineers are so overburdened that they lack the time to conduct the necessary upfront tradeoffs to make informed decisions. This leads to compromised quality and low delivery capability.

The success of lean manufacturing heavily depends on selecting the right processes. However, instead of carefully evaluating alternatives during the development phase, companies often default to using the same equipment and processes they’ve relied on in the past. This reactive approach leaves operations teams to address inefficiencies through kaizen events only after the product is already in production.

The 7 Alternatives Model is designed to close this gap by encouraging proactive process evaluation during development. Rather than applying this exercise to every step in the production flow, it is most effective when focused on steps requiring substantial capital investment—such as tooling, fixturing, or new equipment—or those known to have yield or quality challenges. By targeting high-impact areas, this approach ensures that time spent on process evaluation delivers meaningful improvements in profitability.

The 7 Alternatives Model is a structured brainstorming technique that drives creativity and innovation among individuals or teams. It is particularly useful in Lean Product and Process Design or 3P (Production Preparation Process) events, which emphasize cross-disciplinary collaboration and inventive problem-solving. By fostering creative thinking early in development, this method helps organizations optimize processes and maximize product value.

Key Features of the 7 Alternatives Model

1. Requirement to Generate Seven Ideas: Participants are tasked with coming up with at least seven different ideas to address a specific problem or function. The number seven is intentionally chosen because it challenges participants to move beyond their initial, obvious ideas and delve into more creative and unconventional solutions.

2. Focus on Creativity and Innovation: The model forces participants to think "outside the box," especially for ideas beyond the first few, which often require deeper thought and exploration of less conventional approaches.

3. Use of Visuals and Sketches: Whenever possible, participants are encouraged to illustrate their ideas visually, which can help clarify concepts and foster better understanding among team members.

4. Affinity Diagramming for Idea Sorting: Once all participants have presented their ideas, they are grouped into an affinity diagram to identify patterns, similarities, or themes. This step facilitates collaboration and helps refine the pool of ideas into actionable solutions.

5. Team Collaboration: The process encourages teamwork by allowing participants to build upon each other's ideas during the sorting phase, fostering synergy and enhancing creativity.

Benefits of the Model

• Encourages Diverse Perspectives: By requiring multiple ideas, it prevents "design fixation," where participants overly focus on their first idea.

• Promotes Critical Thinking: Later ideas often challenge conventional thinking and lead to breakthrough solutions.

• Reduces Risk of Tunnel Vision: The method ensures that teams explore various angles before settling on a solution, reducing future obstacles or design flaws.

• Saves Time and Resources Long-Term: Investing time in generating multiple ideas upfront minimizes corrections or redesigns later in the project lifecycle.

Applications

The 7 Alternatives Model is versatile and can be applied across disciplines, including engineering, manufacturing, product design, marketing, and organizational problem-solving. It is particularly effective in situations requiring innovative solutions or when teams need to overcome creative blocks.

This model exemplifies how structured creativity can lead to better problem-solving outcomes while fostering collaboration and innovation within teams.

Steps to Execute a 7 Alternatives Workshop

The steps necessary to execute a “Seven-Alternatives” Process workshop.

Note that the agenda should be kept loose; with good facilitation, the group will tend to naturally gravitate toward the most important capital-reduction opportunities.

Prepare for the 7-Alternatives Process

Step 1: Preparation

Before starting the workshop, there are a few key steps to prepare:

1. Select a Component to Focus On

   
   

   Choose a component that significantly impacts cost, complexity, or yield. This will ensure your efforts are directed toward areas with the most potential for improvement.

2. Define Design Evaluation Criteria

   
   

   Establish the criteria by which the alternatives will be evaluated. This can be done as a standalone team exercise, especially if this is your first time using the 7-Alternatives process. While these criteria may evolve slightly over time, the core factors should remain consistent and can be added to a template.

3. Document the Current Process ("As-Is")

   
   

   Analyze and document how the process is currently performed. Add this information to the template under "Process Alternatives 1" and list critical trade-off factors under "Design Criteria."

4. Assemble the Right Team

   
   

   The success of this process depends on your team’s collective knowledge. If team members are unaware of certain alternatives, those options cannot be considered. As process technology evolves rapidly, it’s crucial to continuously expand your team’s process vocabulary.

Step 2: Brainstorm Process Alternatives

Once preparations are complete, begin brainstorming process alternatives with your team.

1. Present the Challenge

   
   

   Even if team members were involved in earlier preparations, start by clearly presenting the challenge to ensure everyone is aligned.

2. Facilitate Brainstorming

   • Use a structured approach to generate as many ideas as possible within a short timeframe (e.g., three minutes).

   • Encourage creativity and "out-of-the-box" thinking without judgment.

   • Participants should write their ideas on post-it notes.

3. Share and Cluster Ideas

   • After brainstorming, have participants share their ideas and place them on a whiteboard or flipchart.

   • Group similar ideas into clusters and allow new suggestions to be added during this step.

4. Document Alternatives

   
   

   Add all identified process alternatives to the template for further evaluation.

Step 3: Discuss Alternatives and Estimate Cost/Quality

For each alternative, conduct a quick discussion to evaluate its pros and cons based on team members’ experiences.

1. Informal Discussions

   
   

   These discussions should remain informal and brief but aim to surface valuable insights about each alternative.

2. Consider Key Trade-Offs

   
   

   Evaluate trade-offs such as:

   • Robotic automation vs. manual assembly lines

   • Costs of product-specific fixturing

   • Avoiding large investments in molds or dies

3. Key Variables to Analyze

   
   

   When estimating costs, consider:

   • Total production volume over the product's lifecycle

   • Critical tolerances affecting yield

   • Physical properties influencing performance

   • Labor hours required

   • Equipment repair/maintenance costs

   • Wear-out life of machines/tools

   • Non-recurring capital equipment costs

   • Factory impact (e.g., layout, power needs)

Step 4: Evaluate Alternatives

Now it’s time to score each alternative using the baseline (current process) as a benchmark.

1. Scoring System

   
   

   Use the following scoring criteria for each critical trade-off factor:

   • Negative (-): Alternative performs worse than the baseline.

   • Positive (+): Alternative performs better than the baseline.

   • Same (S): Alternative performs similarly to the baseline.

2. Tally Scores

   
   

   Add up positive and negative scores for each alternative:

   • Alternatives with more positives than negatives are considered better than the baseline.

   • Alternatives with similar scores may still warrant consideration if there are compelling reasons to move away from the baseline.

3. Subjective Ranking Tools

   
   

   Keep in mind:

   • Scoring systems should match the level of available information (e.g., simple scales for less detailed data).

   • Avoid overcomplicating subjective tools by trying to make them overly quantitative.

4. Use of Pugh Method

   
   

   The Pugh Method is ideal for this step because it allows for quick, qualitative comparisons between alternatives and the baseline.

Step 5: Cost Estimates for Promising Alternatives

For alternatives with high potential, perform a deeper cost analysis:

1. Assign Responsibility

   
   

   Designate someone to gather financial data and calculate estimated costs for promising alternatives.

2. Key Cost Factors

   
   

   Consider both non-recurring and recurring costs:

   • Non-recurring costs: Engineering design, tooling/equipment, installation/setup.

   • Recurring costs: Labor, materials (including waste/scrap), maintenance.

3. Accuracy Level

   
   

   Extreme precision isn’t necessary; focus on identifying significant cost savings opportunities:

   • If two processes have similar costs, choose the lower-risk option (usually the baseline).

   • If potential savings are substantial, validate calculations with financial/operations teams before making decisions.

Step 6: Take Action and Implement Changes

1. Develop an Implementation Plan

   • Outline the steps required to implement the chosen alternative.

   • Include a timeline, resource allocation, and key milestones.

2. Assign Roles and Responsibilities

   • Clearly define who is responsible for each task in the implementation plan.

   • Ensure each team member understands their role and has the necessary resources.

3. Pilot Testing

   • Before full-scale implementation, conduct a pilot test to identify and address any unforeseen issues.

   • Use the pilot to refine the implementation plan and processes.

4. Monitor and Measure Results

   • Track key metrics to assess the impact of the implemented changes.

   • Regularly review progress against the implementation plan and make adjustments as needed.

5. Communicate Progress

   • Keep stakeholders informed of progress and any challenges encountered.

   • Celebrate successes to maintain momentum and team morale.

By following these steps, you can effectively use the 7-Alternatives process to identify cost-effective and high-quality process improvements that align with your organization’s goals.