How Can You Train Lean Enterprise Leaders?
Fact Based
• A simulation of a complex
aerospace enterprise
• Philosophy draws heavily on
9 years of LAI research and
the book Lean Enterprise
Value
• Content and cases based on
LAI member experience
• Integrated with lecture
material to provide
intellectual basis, tools, and
experiential learning
Action Oriented
“The Game”
Tested and Deployed!
Lean Enterprise Value Simulation
Suppliers
What does it do?
• Teach advanced
enterprise lean concepts
• Add tactile and emotive
learning modes to reach
adult learners
• Provide an simulated
enterprise environment to
teach lean tools and
practices
• In developmental testing and
deployment now
• Lean Basics Academy (mfg game)
Rolls Royce
• Lean Engineering Training (PD game)
Boeing, Global Hawk
• Lean Enterprise training (full game)
Raytheon
• Ready for 1.0 release Jan 04
Manufacturing
Plant B
Plant A
Design Change
Request
Customer Acceptance
Final Assembly
2nd Tier
1st Tier
Plant C
Design
Analysis
Engineering
Verification
Deployment Model
Design In/Out Box
3 Modular Simulations
• Manufacturing Game
• Supplier Network Game
• Product Development Game
1 Training System
• Integrated Enterprise Game
Who should use it?
• Engineering, Supply chain,
and Operations managers
• Lean enterprise leaders
• Change agents and Lean/6
Sigma experts
• Program managers and
team leads
What are the benefits?
• Provides engaging,
visceral experience with
success by applying lean
tools and processes.
• Demonstrates clearly the
the power of lean
enterprise thinking.
Systems Engineering
Design
• Recreates a lean enterprise
evolution in a classroom
• Design, manufacturing, and supplier
network operations in one training
simulation—use all or part
• Accommodates customized learning
objectives and training material
• For managers, change agents, team
leads, and other enterprise leaders
Q1
03
Designed for minimum complexity
given advanced lean lessons
Analysis
Q2
03
Q3
03
PD
training
Beta
testing,
release
Q4
03
Lean
Academy
Beta test
Q1
04
Enterprise
training
Beta
testing,
release
Version
1.0
release
(Jan 04)
Q2
04
Q3
04
Q4
04
LAI short
course and
facilitator
training
Modular Additions to Game Allow Training for Specific Skills
Advanced accounting system
captures and calculates:
• Process data
• Gross profit
• Operating expense
• Net profit and ROIC
Spreadsheet functions allow “what-if” analysis
• Impact of lean actions on bottom-line metrics
• Payoffs from different improvement strategies
• Magnitude of improvements needed
• Negotiating positions with enterprise stakeholders
Finding
Capacity and
Constraints
Return on
Invested Capital
Accounting
Price
Per
Part
*
Qty
of Parts
Sold
Shipping,
Packaging, and
Transportation
costs
No. of
Fab’d
Parts
No. of
Purchased
Parts
*
Price of
Fab’d
Parts
*
Price of
Purchased
Parts
Inventory
Carrying
Costs
Evolving game
lessons tied to
process
maturity levels
+
Sales
($)
-
+
+
+
Material
Costs of
Shipped
Parts
-
Gross
Profit
+
Operating
Expense
-
Operating
Profit (after tax)
-----------
=
ROIC
Invested
Capital
+
Scrap
+
+
+
Facility
Carrying
Costs
Value of
inventory
+
Facilities
(PPE)
August 26, 2003
CMMI 1
CMMI 3+
• LAI facilitators customize kick-off,
train trainers (fee for service)
• Successfully adopted and used for
training by consortium members
using native facilitators
“Your enterprise game is the heart of the
class. It is a wonderful experience. It is
close enough to real life to be a good
laboratory, yet simple enough to be solved
in a constrained period of time.”
Corporate Training Professional