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Enterprise Transition to Lean
Roadmap
LeanAerospace
Initiative
Nightingale - © 2000 Massachusetts Institute of Technology2
Lean Enterprise 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 b
efore others?How do we assess an organization’s “readiness tochan
ge”?
Nightingale - © 2000 Massachusetts Institute of Technology3
Key Principles of ChangeManagement Apply to Lean Transformation
Strategic Alignment Management Commitment Sense of Urgency Stakeholder Involvement Organizational Structure Goals and Objectives Transformation Plan Monitoring and Nurturing
Nightingale - © 2000 Massachusetts Institute of Technology4
Lean EnterpriseImplementation Processes and Tools
Implementation Issue
What are the key leanprinciples andpractices?
How do I transform myenterprise to lean?
How do I assessmy progress?
Enterprise Tool
Lean Enterprise Model(LEM)
Enterprise Transitionto Lean Roadmap(TTL)
Lean Enterprise SelfAssessment Tool(LESAT)
Nightingale - © 2000 Massachusetts Institute of Technology5
Lean Transformation Issues
Why do most 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
Nightingale - © 2000 Massachusetts Institute of Technology6
Lean Transformation Requiresan Enterprise Approach
Finance/HumanResources, etc.
Customer
Product Development
ManufacturingOperations
Product Support
Supplier Network
Nightingale - © 2000 Massachusetts Institute of Technology7
Enterprise Leadership is KeyElement of Success
LAI Aerospace Organizations
ProductivityIndex
Leadership Index
Nightingale - © 2000 Massachusetts Institute of Technology8
Transition to Lean Module Concept
Transition toLean Plan
• Priorities• Sequence
• Key Enablers• “How-To’s”
• Change Mgmt.Principles
Nightingale - © 2000 Massachusetts Institute of Technology9
Enterprise Level RoadmapConceptual Framework
What is the Enterprise Level Transition-To-Lean Model ?
Begins with a description of a Top LevelFlow of primary activities referred to as“The Roadmap”
Then, provides descriptions of key tasksrequired within each primary activity
Finally, leads discussion of issues, enablers, barriers,case studies & reference material relevant to eachtask in a common structured framework
Focus on the ValueStream
•Map Value Stream•Internalize Vision•Set Goals & Metrics•Identify & Involve KeyStakeholders
Nightingale - © 2000 Massachusetts Institute of Technology10
Enterprise Level RoadmapConceptual Framework
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’
What Does the Enterprise Level TTL Model Provide?
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Enterprise Level Roadmap
Entry/Re-entryCycle
Adopt LeanParadigm
Decision toPursue
EnterpriseTransformatio
nEnterpriseStrategicPlanning
Long Term CycleFocus on theValue Stream
Develop Lean Structure &Behavior
Create & RefineTransformation Plan
Focus on ContinuousImprovement
Implement Lean Initiatives
InitialLean
Vision
DetailedLean
Vision
LeanTransformation
FrameworkShort Term Cycle
DetailedCorrective Action
Indicators
Outcomes onEnterprise
Metrics
EnvironmentalCorrectiveAction Indicators
EnterpriseLevel
TransformationPlan
+
Nightingale - © 2000 Massachusetts Institute of Technology12
Adopt Lean Paradigm
Build Vision
Convey Need
Foster Lean Learning
Make the Commitment
Obtain Senior Management Buy-in
Nightingale - © 2000 Massachusetts Institute of Technology13
Focus on the Value Stream
Map Value Stream
Internalize Vision
Set Goals & Metrics
Identify & Involve Key Stakeholders
Nightingale - © 2000 Massachusetts Institute of Technology14
Develop Lean Structure & Behavior
Organize for Lean Implementation
Identify & Empower Change Agents
Align Incentives
Adapt Structure & Systems
Nightingale - © 2000 Massachusetts Institute of Technology15
Create & Refine Transformation Plan
Identify & Prioritize Activities
Commit Resources
Provide Education & Training
Nightingale - © 2000 Massachusetts Institute of Technology16
Implement Lean Initiatives
Develop Detail Plans
Implement Lean Activities
Nightingale - © 2000 Massachusetts Institute of Technology17
Focus on Continuous Improvement
Monitor Lean Progress
Nightingale - © 2000 Massachusetts Institute of Technology18
Enterprise Level Roadmap
Adopt LeanParadigm
•Build Vision•Convey Urgency•Foster Lean Learning•Make the Commitment•Obtain Senior Mgmt. Buy-in
Decision toPursue
EnterpriseTransformatio
nEnterpriseStrategicPlanning
Long Term CycleFocus on theValue Stream
•Map Value Stream•Internalize Vision•Set Goals & Metrics•Identify & Involve Key Stakeholders
Develop Lean Structure &Behavior
•Organize for Lean Implementation•Identify & Empower Change Agents•Align Incentives•Adapt Structure & Systems
Create & RefineTransformation Plan
•Identify & Prioritize Activities•Commit Resources•Provide Education & Training
Focus on ContinuousImprovement
•Monitor Lean Progress•Nurture the Process•Refine the Plan•Capture & Adopt New Knowledge
Implement Lean Initiatives•Develop Detailed Plans•Implement Lean Activities
InitialLean
Vision
DetailedLean
Vision
LeanTransformation
FrameworkShort Term Cycle
DetailedCorrective Action
Indicators
Outcomes onEnterprise
Metrics
EnvironmentalCorrectiveAction Indicators
EnterpriseLevel
TransformationPlan
+
Entry/Re-entryCycle
Nightingale - © 2000 Massachusetts Institute of Technology19
Enterprise Level RoadmapThe On-going Lean Enterprise
Entry
EnterpriseStrategicPlanning
Long Term CycleFocus on theValue Stream
Develop Lean Structure &Behavior
Create & RefineTransformation Plan
Focus on ContinuousImprovement
Implement Lean Initiatives
DetailedLean
Vision
LeanTransformation
FrameworkShort Term Cycle
DetailedCorrective Action
Indicators
Outcomes onEnterprise
Metrics
EnvironmentalCorrective
Action Indicators
EnterpriseLevel
TransformationPlan
+
+
Responseto the
voice of thecustomer
Nightingale - © 2000 Massachusetts Institute of Technology20
Common Discussion Framework Is Used
Discussion of issuesSix Interdependent Elements of Implementation
Why
What
How
Who
When
Where•Enablers•Barriers•Related Case Studies•Further Reference Material
Nightingale - © 2000 Massachusetts Institute of Technology21
‘Drilling Down’ to anExample of TTL’s Content
Enterprise Level Roadmap
•Discussion of issue•Six Interdependent Elements of Implementation
•Enablers•Barriers•Related Case Studies•Further Reference Material
Why
What
How
Who
When
Where
The Discussion Outline
Issues surrounding the taskof “Build Vision”
during the activity of“Adopting the Lean Paradigm”
Nightingale - © 2000 Massachusetts Institute of Technology22
“Build the Vision” Description Template
DISCUSSION ISSUES: How do you direct a vision in an existing culture that has been successful? Should this be an internal only or externally influenced process? How do you assess the applicability of other successful transformations to your Enterprise? How does the lean vision tie into all levels of the enterprise?
Transition to Lean RoadmapPHASE: Adopt Lean Paradigm
ACTION ITEM: “Build the Vision”
Nightingale - © 2000 Massachusetts Institute of Technology23
“Build the Vision” Description Template
TENSIONS
WhyCommunicate “lean”
enterprise-wide
WhatA “lean” vision
HowLearn from successful
“lean” implementations
WhoThe Enterprise Leader
WhenFirst step in TTL
WhereEnterprise-wide
Nightingale - © 2000 Massachusetts Institute of Technology24
“Build the Vision” Description Template
BARRIERS (Example) Lack of knowledge of the lean principles and practices
ENABLERS (Example) Learn from other successful lean implementations at the
Enterprise level.
CASE STUDIES (Example) Jack Welch, CEO-General Electric, transformational leader
FUTURE RESEARCH QUESTIONS (Example) “How important is Executive leadership in the success of lean
initiatives?”
Nightingale - © 2000 Massachusetts Institute of Technology25
Benefits of Enterprise TTLRoadmap
Facilitates enterprise focus
Provides “sequence” for enterprise transformation
Increases understanding of “what went wrong” in previous transformation attempts
Focuses on people/leadership issues
Provides an organizing framework for enterprise wide transition
Nightingale - © 2000 Massachusetts Institute of Technology26
Transition to Lean Module Concept
Transition toLean Plan
• Priorities• Sequence
• Key Enablers• “How-To’s”
• Change Mgmt.Principles
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Supply Chain/External Environment • Legal • Government Reqd. Systems • Environmental (MMAS, EVMS, etc.)
Enterprise / Production System Interface•Financial •Procurement •Quality •Training and Human Resources•Information •Engineering •Safety •Workforce/Management Partnership Phase 0 Phase 1 Phase 2 Phase 3 Phase4 Phase5 Phase 6 Adopt Lean Define Identify Design Implement Total Paradigm Prepare Value Value Stream Production System Implement Flow System Pull
Production OperationsTransition-To-Lean Roadmap
• Build vision• Establish need• Foster lean learning• Make the commitment• Obtain Sr. Mgmt. buy-in
• Integrate with Enterprise Level• Establish an Operations Lean Implementation Team(s)• Develop implementation strategy• Develop a plan to address workforce changes• Address Site Specific Cultural Issues• Train key people• Establish target objectives (metrics)
• Select initial implementation scope• Define customer• Define value - Quality, Schedule, and Target Cost
• Record current state value stream• Chart product and information flow• Chart operator movement• Chart tool movement• Collect baseline data
• Develop a future state value stream map• Identify takt time requirements• Review make/buy decisions• Plan new layout• Integrate suppliers• Design visual control system• Estimate and justify costs• Plan TPM system
• Achieve process control• Implement TPM• Implement self- inspection• Eliminate/ reduce waste• Cross train workforce• Standardize operations• Reduce set-up times• Mistake proof processes• Implement cell layout• Implement visual controls
• Select appropriate production system control mechanism• Strive for single item flow• Level and balance production flow• Link with suppliers• Draw down inventories• Re-deploy people• Re-deploy/ dispose assets
TopLeadership
Commitment
LeanRoadma
p
• Optimize quality • Team development • Expand TPM • Evaluate progress• Institutionalize 5S • Institute Kaizen events • Evaluate against using lean maturity • Remove system barriers target metrics matrices
Phase 7Strive for Perfection
IMPROVED COMPETITIVEPOSITION
ExpandInternally/ExternallyENTRY