1. Lean Startup – From Toyota City to Fremont to You John Shook Chairman and CEO Lean Enterprise Institute www.lean.org December 2013 Lean Startup Conference San Francisco www.lean.org

2. “Lean Production ” Was Named Exactly 25 Years Ago “The Triumph of Lean Production” Lean Enterprise Institute

3. In Search of the World’s Best Production and Management Systems

4. Toyota City – Lean’s Incubator

5. New United Motor Manufacturing, Inc. – NUMMI – kick-started a revolution that led to us meeting here today.

6. Joint Venture

7. The Worst Factory in the World…

8. Certified Worst!

10. From the Worst to the Best… Certified!

11. NPR’s This American Life: “NUMMI”

12. So, How Did You Really Change the Culture at NUMMI?

13. It’s a Management System With a Social Side and a Technical Side

14. 14 Engage Everyone in Continuous Problem Finding and Experimenting

15. Easy to do right, hard to do wrong Easy to spot problems Easy to do P-D-C-A Then…  Support to solve problems  Challenge for continuous experimentation

16. Problems Happen… What Do We Do With Them?

17. Hiding Problems is the Most Anti-lean “Problem”

18. “No problem is a problem!” Everyone an Expert Problem Finder and Experimenter

20. Ford Milpitas CA Plant

21. Ford Milpitas CA Plant Today

22. GM Fremont  What went wrong?

23. It’s a Management System! It’s an Organizational and a Personal Transformation.

24. Lean From the Start Lean is about solving problems through continuous experimentation. We ask: what is our purpose as an organization? What value to create or what problem are we trying to solve? Then, how do we improve the work and how do we develop the people?

25. Lean From the Start Do startups face problems that are different from those of established enterprises?  More uncertainty?  Greater risk?  Fewer resources?

26. Lean, Whether Startup or Established… Engage Everyone in Problem Finding and Continuous Experimentation Give Everyone Permission to Fail and Ability to Succeed

27. Lean Thinking Principle of “Just Enough” Practice of Questioning and Experimenting A personal transformation

28. Lean Enterprise Transformation Questions What’s the PURPOSE? What value? What problem to solve? How to improve the work? How to develop the people? What leadership role and management system? What’s the BASIC THINKING?

29. www.lean.org What’s the PURPOSE? What value? What problem to solve? How to improve the work? How to develop the people? What leadership role and management system? What’s the BASIC THINKING? Lean Enterprise Institute

30. www.lean.org Define Your Purpose Improve the Work Develop the People Lean Enterprise Institute