Growing the Lean Community An LAI Plenary Conference Presented By:
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Growing the Lean Community An LAI Plenary Conference Enterprise Transition to Lean Roadmap April 12, 2001 Presented By: Deborah Nightingale LAI Research Sponsored By LAI Lean Aerospace Initiative Lean Transformation Issues ➢ Why do many lean transformation activities fail? ➢ What are the key success factors in implementing lean enterprise wide? ➢ How can we better assure that lean will impact bottom line results? ➢ Are there certain activities that are ideally performed before others? ➢ What is the role of senior leadership in assuring success? Issues Motivated Development of Enterprise Transition to Lean Roadmap 2 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Lean Transformation Requires an Enterprise Approach Customer Customer Finance/Human Finance/Human Resources, Resources,etc. etc. Manufacturing Manufacturing Operations Operations Product ProductSupport Support Product ProductDevelopment Development Supplier SupplierNetwork Network 3 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Enterprise Leadership is Key Element of Success Lean Aerospace Initiative LAI Aerospace Organizations 1 0.9 0.8 0.7 Productivity Index 0.6 0.5 0.4 0.3 0.2 0.1 0 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Leadership Index Source: D. Tonaszuck, MIT Master’s Thesis, January 2000 4 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Transition to Lean Module Concept Enterprise Level Roadmap + + HR • Priorities • Sequence • Key Enablers • “How-To’s” • Change Mgmt. Principles Business Processes Acquisition Supplier Network Product Development Production Operations Roadmap Transition to Lean Plan 5 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Conceptual Framework What What is is the the Enterprise Enterprise Level Level Transition-To-Lean Transition-To-Lean Model Model ?? Begins with a description of a Top Level Flow of primary activities referred to as “The Roadmap” + + Focus on the Value Stream •Map Value Stream •Internalize Vision •Set Goals & Metrics •Identify & Involve Key Stakeholders Then, provides descriptions of key tasks required within each primary activity What What Finally, leads discussion of issues, enablers, barriers, case studies & reference material relevant to each task in a common structured framework 6 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Why Why Who Who When When How How Where Where web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Conceptual Framework What What Does Does the the Enterprise Enterprise Level Level TTL TTL Model Model Provide? Provide? ➢ A robust path that Enterprise Leaders can follow to transition their organizations to a new plateau of “leanness” ➢ Efficient and effective tool that will improve the quality of thinking and awareness of Enterprise Leaders on the challenge of transitioning their organization ➢ Framework for cultural, organizational & change management considerations ➢ Guidance in making the transition process, itself, a ‘lean’ process 7 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Adopt Lean Paradigm Focus on the Value Stream Initial Lean Vision Decision to Pursue Enterprise Transformation Enterprise Strategic Planning Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Focus on Continuous Improvement Outcomes on Enterprise Metrics 8 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Short Term Cycle Detailed Corrective Action Indicators + Implement Lean Initiatives Lean Implementation Framework Create & Refine Implementation Plan Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Adopt Lean Paradigm ➢Build Vision ➢Convey Need ➢Foster Lean Learning ➢Make the Commitment ➢Obtain Senior Management Buy-in 9 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Adopt Lean Paradigm Focus on the Value Stream Initial Lean Vision Decision to Pursue Enterprise Transformation Enterprise Strategic Planning Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Focus on Continuous Improvement Outcomes on Enterprise Metrics 10 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Short Term Cycle Detailed Corrective Action Indicators + Implement Lean Initiatives Lean Implementation Framework Create & Refine Implementation Plan Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Focus on the Value Stream ➢Map Value Stream ➢Internalize Vision ➢Set Goals & Metrics ➢Identify & Involve Key Stakeholders 11 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Adopt Lean Paradigm Focus on the Value Stream Initial Lean Vision Decision to Pursue Enterprise Transformation Enterprise Strategic Planning Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Focus on Continuous Improvement Outcomes on Enterprise Metrics 12 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Short Term Cycle Detailed Corrective Action Indicators + Implement Lean Initiatives Lean Implementation Framework Create & Refine Implementation Plan Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Develop Lean Structure & Behavior ➢Organize for Lean Implementation ➢Identify & Empower Change Agents ➢Align Incentives ➢Adapt Structure & Systems 13 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Adopt Lean Paradigm Focus on the Value Stream Initial Lean Vision Decision to Pursue Enterprise Transformation Enterprise Strategic Planning Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Focus on Continuous Improvement Outcomes on Enterprise Metrics 14 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Short Term Cycle Detailed Corrective Action Indicators + Implement Lean Initiatives Lean Implementation Framework Create & Refine Implementation Plan Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Create & Refine Implementation Plan ➢Identify & Prioritize Activities ➢Commit Resources ➢Provide Education & Training 15 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Adopt Lean Paradigm Focus on the Value Stream Initial Lean Vision Decision to Pursue Enterprise Transformation Enterprise Strategic Planning Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Focus on Continuous Improvement Outcomes on Enterprise Metrics 16 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Short Term Cycle Detailed Corrective Action Indicators + Implement Lean Initiatives Lean Implementation Framework Create & Refine Implementation Plan Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Implement Lean Initiatives ➢Develop Detail Plans ➢Implement Lean Activities 17 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Adopt Lean Paradigm Focus on the Value Stream Initial Lean Vision Decision to Pursue Enterprise Transformation Enterprise Strategic Planning Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Focus on Continuous Improvement Outcomes on Enterprise Metrics 18 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Short Term Cycle Detailed Corrective Action Indicators + Implement Lean Initiatives Lean Implementation Framework Create & Refine Implementation Plan Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Focus on Continuous Improvement ➢Monitor Lean Progress ➢Nurture the Process ➢Refine the Plan ➢Capture & Adopt New Knowledge 19 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Enterprise Level Roadmap Long Term Cycle Entry/Re-entry Cycle Focus on the Value Stream Adopt Lean Paradigm •Build Vision •Convey Urgency •Foster Lean Learning •Make the Commitment •Obtain Senior Mgmt. Buy-in Initial Lean Vision •Map Value Stream •Internalize Vision •Set Goals & Metrics •Identify & Involve Key Stakeholders Enterprise Strategic Planning Detailed Lean Vision •Organize for Lean Implementation •Identify & Empower Change Agents •Align Incentives •Adapt Structure & Systems + Environmental Corrective Action Indicators Short Term Cycle Focus on Continuous Improvement Decision to Pursue Enterprise Transformation Develop Lean Structure & Behavior •Monitor Lean Progress •Nurture the Process •Refine the Plan •Capture & Adopt New Knowledge Outcomes on Enterprise Metrics 20 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Detailed Corrective Action Indicators Lean Implementation Framework Create & Refine Implementation Plan •Identify & Prioritize Activities •Commit Resources •Provide Education & Training + Implement Lean Initiatives •Develop Detailed Plans •Implement Lean Activities Enterprise Level Implementation Plan web.mit.edu/lean Enterprise Level Roadmap The On-going Lean Enterprise Lean Aerospace Initiative Long Term Cycle Entry Focus on the Value Stream Detailed Lean Vision Response to the voice of the customer Enterprise Strategic Planning Environmental Corrective Action Indicators Develop Lean Structure & Behavior + Lean Implementation Framework Short Term Cycle Focus on Continuous Improvement Detailed Corrective Action Indicators Create & Refine Implementation Plan Lean Impact Outcomes on Enterprise Metrics 21 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology + Implement Lean Initiatives Enterprise Level Implementation Plan web.mit.edu/lean Lean Aerospace Initiative Enterprise TTL Future Product Vision Human Resources Business Processes Acquisition Product Development Supplier Network Production Operations TTL Roadmaps “Transitioning” to a Lean Enterprise: A Guide for Leaders” •Overview of Lean Thinking & Knowledge •TTL Roadmap Foldouts Descriptions •Roadmap Background Information 22 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology Lean Enterprise Self Assessment Tool Ongoing LAI Research web.mit.edu/lean Lean Aerospace Initiative Consortium Feedback on Enterprise TTL Roadmap ➢Great tool for facilitating enterprise focus ➢Consistent with enterprise experience ➢Increased understanding of “what went wrong” ➢Liked focus on people/leadership issues ➢Being used as enterprise-wide transition framework 23 - LE Nightingale - 041201 © 2001 Massachusetts Institute of Technology web.mit.edu/lean
