Enhancing Enterprise
Value:
An LAI Plenary Conference
Welcome and LAI Overview
March 29, 2000
Presented By:
Earll Murman
MIT
LAI Evolution
AA research
research partnership
partnership among
among
industry,
industry, government,
government, labor,
labor, and
and MIT
MIT
1993-1996: Consortium formed and collaboration established
➢ Focus on defense aircraft
➢ Research on benchmarking best practices
➢ Lean Enterprise Model (LEM) conceptualized
➢ Industrial base pilot projects initiated
1996-1999: Membership expanded and space sector added
➢ Research on cross-cutting topics; e.g. cycle time
➢ Collaboration with international programs initiated
➢ Focus on products; e.g. LEM, policy recommendations
1999-2002: Phase III focus on “Best Life Cycle Value”
➢ Five key themes identified
➢ Address barriers to implementation & transition to lean
➢ Enhance effectiveness of the national workforce
➢ Emphasize knowledge deployment
PM Murman032900 - 2 © 2000 Massachusetts Institute of Technology
LAI Vision
“To deliver military aerospace
products at significantly reduced
costs and cycle time while meeting
or exceeding performance
expectations and enhancing the
effectiveness of our national
workforce”
PM Murman032900 - 3 © 2000 Massachusetts Institute of Technology
LAI Mission
“To enable fundamental change within
industry and government operations that
supports the continuing transformation of
the US aerospace enterprise towards
providing aerospace systems offering best
life-cycle value”
AA system
system offering
offering best
best life-cycle
life-cycle value
value is
is defined
defined as
as aa system
system
introduced
introduced at
at the
the right
right time
time and
and right
right price
price which
which delivers
delivers best
best
value
value in
in mission
mission effectiveness,
effectiveness, performance,
performance, affordability
affordability and
and
sustainability
sustainability and
and retains
retains these
these advantages
advantages throughout
throughout its
its life.
life.
PM Murman032900 - 4 © 2000 Massachusetts Institute of Technology
Phase III Goals
➣ Develop fundamental understanding of value
added practices offering best life-cycle value
➣ Address barriers to implementation
➣ Develop a lean self assessment tool
➣ Make LAI a success for the workforce
➣ Deploy knowledge of lean practices to facilitate &
enable change
➣ Enhance the Lean Enterprise Model to facilitate
usage at all levels
➣ Extend and enhance the collaborative nature of the
project
➣ Develop and effectively transmit recommended
policy changes based upon LAI research findings
PM Murman032900 - 5 © 2000 Massachusetts Institute of Technology
Phase III Research Themes
Measuring Value to the Enterprise
➢ Adding
value to shareholders, public, customer,
workforce and suppliers
Time
➢ Measured
both by clock speed and cycle time
Organizations and People
➢ Essential
to enterprise success
Knowledge and Information Infrastructure
➢ Key
enablers for an efficient enterprise
Government as a Lean Customer & Operator
➢ Central
role in pace of change
➢ Lean principles as tools for acquisition
streamlining
PM Murman032900 - 6 © 2000 Massachusetts Institute of Technology
Phase III LAI Product Value Stream
LEM 2000 (Dec. 1999)
LEM
LEM 2001 (Mar 2001)
Research
LEM 2002 (Mar 2002)
Implementation,
Self Assessment
Tools
Real time
Implementation
Working
Papers
Policy
Recommendations
Courses
Curriculum
Web site
Workshops
Lean Enterprise Book Series
Stakeholder Defined Value
Knowledge Base • Implementation Framework • Research Products • Neutral Forum
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Better, Faster, Cheaper?
➣“Wake-up” call book
➣Central messages
➢ Lean
must be elevated to a total enterprise
system from its present “islands of success”
➢ Implementation
of the lean vision represents
two very different possible paths:
➢One
narrowly focused on cost reduction
➢The
other emphasizes value
➢ The
latter path is needed to revitalize the
aerospace industry to meet future military and
economic challenges
➣Manuscript expected Aug 2000
PM Murman032900 - 8 © 2000 Massachusetts Institute of Technology
LAI Consortium Process Flow Shared Roles and Responsibilities
Industry,Labor,
Government
Experience
Implementation
MIT
Research Priorities
Imperative
Enablers:
LAI Teams
[
Leadership
Research
Data
Awareness
Products
PM Murman032900 - 9 © 2000 Massachusetts Institute of Technology
Phase III Structure
MIT
MIT LAI
LAI Co-Directors
Co-Directors
Engineering
Engineering && Sloan
Sloan School
School
Stakeholder
Stakeholder (Industry
(Industry or
or Government)
Government)
Research
Research Teams
Teams
Acquisition
Acquisition
Product
Product Teams
Teams
Organizations
Organizations
&& People
People
Lean
Lean Enterprises
Enterprises
Product
Product
Development
Development
Supplier
Supplier
Networks
Networks
Manufacturing
Manufacturing Test
Test && Space
Space
Systems
Operations
Systems
Operations
Knowledge
Knowledge
Deployment
Deployment
The action is on the teams. Join a team meeting!
PM Murman032900 - 10 © 2000 Massachusetts Institute of Technology
Plenary Conference Format
Day One - Mar. 29
Day Two - Mar. 30
A.M.
Multiple Dimensions of Value
A.M.
Seeing and Improving Value
Different Perspectives of
Value - investor, workforce,
program manager, and
product
Keynote: Jim Womack
P.M.
Different Applications product development,
upgrades, program, space
vehicle testing, requirements
P.M.
Focus Team Meetings
Part A
Part B
Breakout Sessions
8 different topical areas
LEM 2000 Demo
Reception
Reception and Banquet
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LAI Executive Board Linkage
Executive
Executive
Board
Board
Roundtable
Roundtable
Dec
Dec14,
14,1999
1999
“Creating
“Creating
Value
ValueAcross
Across
the
Enterprise”
the Enterprise”
Position
PositionPaper
Paper
“Creating
“Creating
Value
ValueAcross
Across
the
Enterprise”
the Enterprise”
LAI
LAIPlenary
Plenary
Conference
Conference
LAI
LAIExecutive
Executive
Board
BoardMeeting
Meeting
Mar
Mar29-30,
29-30,
2000
2000
June
June1,1,2000
2000
Washington
WashingtonDC
DC
“Enhancing
“Enhancing
Enterprise
Enterprise
Value”
Value”
“Enhancing
“Enhancing
Enterprise
Enterprise
Value”
Value”
LAI Research Teams and Workshops
LAI Products
PM Murman032900 - 12 © 2000 Massachusetts Institute of Technology