Acting Your Way to Horizontal Thinking
Jim Womack, Lean Enterprise Institute
Todd Wyman, Ingersoll Rand
The Way of the World: Vertical
Senior Leadership
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Customers
Value: Horizontal
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How They Collide
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What We Need
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Ingersoll Rand Overview
• A $14 billion diversified industrial company
• Publicly-held; NYSE:IR
• Operations in every major geographic region
• Strategic brands are #1 or #2 in their markets –
• Club Car, Ingersoll Rand, Schlage, Thermoking, Trane
• Products and services for commercial, industrial and
residential markets
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Path to Premier Performance
Engaged Employees | Delighted Customers | Confident Shareholders
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Quartiles
Peer Group Performance
Improvements in Key Metrics Deliver Shareholder Value
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Lean Transformation Approach
• Programmatic
• Business Operating System
• Goal Deployment
• Inch Wide, Mile Deep
• Horizontal Value Streams
Concept to Launch
Order to Delivery (Fulfillment)
Delivery to Lifecycle (Service, Recycle)
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Leading Horizontally:
Our Journey
Plant Managers
Product
Managers
Product
Growth
Teams
Product
Manager
Engineering
Lead
Operations
Lead
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Daily Management
•
•
•
•
•
•
Standard Work
Takt / One-piece flow
Andon / Response / Escalation
Visual Management
Problem Solving
Leader Standard Work / Gemba Walks
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Executives “Going for a Walk”
Managing from the Office
Managing at the Gemba
Leading from the Gemba
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How Can We Do Better?
• Pick a value stream
• Take a walk
• Ask questions:
• Standard front-line
management
• Visible Takt Time
• Valuable
• Capable
• Available
• Adequate
• Flexible
• Leveled Flow
• Up-to-Date Standard Work
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Compressor Value Stream
Production
Control
Die Casting
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Machining Compressor Warehouse
Assembly
& Test
Sales
Orders
Production
Control
Heat Pump
Assembly
& Test
Distribution
Warehouse
Dealer
Customer
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Compressor Value Stream
Summary
Total Steps
73
Value Creating Steps
7
% Value to Total
9.6%
Total Time
44 days
Value Creating Time
14 minutes
% Value to Total
0.02%
Total Distance
4,667,520 ft.
Total Value Creating
630 ft.
% Value to Total
0.013%
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What Questions Did We Ask?
• Who designed the value stream?
- No one
• Who is responsible for the “plan for every
value stream”?
- No one
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When You Are Ready
• Pick an end to end value stream
• Take a walk with everyone touching the value
stream
• Create a summary of current performance
and the gap
• Make someone responsible for creating a
future state plan
• Discuss it in the presence of every vertical
and reach an agreement
Act Your Way to Horizontal Thinking
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