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Enterprise Transition to Lean Roadmap
Aerospace Initiative
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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 before others? How do we assess an organization’s “readiness tochange”? Nightingale © 2000 Massachusetts Institute of Technology
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Key Principles of Change Management 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 Technology
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Lean Enterprise Implementation Processes and Tools
Implementation Issue What are the key lean principles and practices? How do I transform my enterprise to lean? How do I assess my progress? Enterprise Tool Lean Enterprise Model (LEM) Enterprise Transition to Lean Roadmap (TTL) Lean Enterprise Self Assessment Tool (LESAT) Nightingale © 2000 Massachusetts Institute of Technology
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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 Technology
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Lean Transformation Requires an Enterprise Approach
Customer Finance/Human Resources, etc. Manufacturing Operations Product Support Product Development Supplier Network Nightingale © 2000 Massachusetts Institute of Technology
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Enterprise Leadership is Key Element of Success
LAI Aerospace Organizations Productivity Index Leadership Index Nightingale © 2000 Massachusetts Institute of Technology
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Transition to Lean Module Concept
• Priorities • Sequence • Key Enablers • “How-To’s” • Change Mgmt. Principles Transition to Lean Plan Nightingale © 2000 Massachusetts Institute of Technology
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Enterprise Level Roadmap Conceptual Framework
What is the Enterprise Level Transition-To-Lean 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 Finally, leads discussion of issues, enablers, barriers, case studies & reference material relevant to each task in a common structured framework Nightingale © 2000 Massachusetts Institute of Technology
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Enterprise Level Roadmap Conceptual Framework
What Does the Enterprise Level TTL Model 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’ Nightingale © 2000 Massachusetts Institute of Technology
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Enterprise Level Roadmap
Entry/Re-entry Cycle Long Term Cycle Focus on the Value Stream Develop Lean Structure & Behavior Adopt Lean Paradigm Initial Lean Vision Detailed Lean Vision + Environmental Corrective Action Indicators Lean Transformation Framework Short Term Cycle Decision to Pursue Enterprise Transformation Detailed Corrective Action Indicators Focus on Continuous Improvement Create & Refine Transformation Plan Enterprise Strategic Planning Outcomes on Enterprise Metrics Enterprise Level Transformation Plan Implement Lean Initiatives Nightingale © 2000 Massachusetts Institute of Technology
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Adopt Lean Paradigm Build Vision Convey Need Foster Lean Learning
Make the Commitment Obtain Senior Management Buy-in Nightingale © 2000 Massachusetts Institute of Technology
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Focus on the Value Stream
Map Value Stream Internalize Vision Set Goals & Metrics Identify & Involve Key Stakeholders Nightingale © 2000 Massachusetts Institute of Technology
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Develop Lean Structure & Behavior
Organize for Lean Implementation Identify & Empower Change Agents Align Incentives Adapt Structure & Systems Nightingale © 2000 Massachusetts Institute of Technology
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Create & Refine Transformation Plan
Identify & Prioritize Activities Commit Resources Provide Education & Training Nightingale © 2000 Massachusetts Institute of Technology
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Implement Lean Initiatives
Develop Detail Plans Implement Lean Activities Nightingale © 2000 Massachusetts Institute of Technology
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Focus on Continuous Improvement
Monitor Lean Progress Nightingale © 2000 Massachusetts Institute of Technology
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Enterprise Level Roadmap
Entry/Re-entry Cycle Long Term Cycle Focus on the Value 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 Adopt Lean Paradigm •Build Vision •Convey Urgency •Foster Lean Learning •Make the Commitment •Obtain Senior Mgmt. Buy-in Initial Lean Vision Detailed Lean Vision + Environmental Corrective Action Indicators Lean Transformation Framework Short Term Cycle Detailed Corrective Action Indicators Focus on Continuous Improvement •Monitor Lean Progress •Nurture the Process •Refine the Plan •Capture & Adopt New Knowledge Create & Refine Transformation Plan •Identify & Prioritize Activities •Commit Resources •Provide Education & Training Decision to Pursue Enterprise Transformation Outcomes on Enterprise Metrics Enterprise Level Transformation Plan Enterprise Strategic Planning Implement Lean Initiatives •Develop Detailed Plans •Implement Lean Activities Nightingale © 2000 Massachusetts Institute of Technology
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Enterprise Level Roadmap The On-going Lean Enterprise
Long Term Cycle Entry Focus on the Value Stream Develop Lean Structure & Behavior Detailed Lean Vision Response to the voice of the customer + Lean Transformation Framework Enterprise Strategic Planning Environmental Corrective Action Indicators Short Term Cycle Detailed Corrective Action Indicators Focus on Continuous Improvement Create & Refine Transformation Plan Enterprise Level Transformation Plan Outcomes on Enterprise Metrics + Implement Lean Initiatives Nightingale © 2000 Massachusetts Institute of Technology
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Common Discussion Framework Is Used
Discussion of issues Six Interdependent Elements of Implementation Why What How Who When Where Enablers Barriers Related Case Studies Further Reference Material Nightingale © 2000 Massachusetts Institute of Technology
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‘Drilling Down’ to an Example of TTL’s Content
Enterprise Level Roadmap The Discussion Outline Discussion of issue Six Interdependent Elements of Implementation Enablers Barriers Related Case Studies Further Reference Material Why What How Who When Where Issues surrounding the task of “Build Vision” during the activity of “Adopting the Lean Paradigm” Nightingale © 2000 Massachusetts Institute of Technology
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“Build the Vision” Description Template
Transition to Lean Roadmap PHASE: Adopt Lean Paradigm ACTION ITEM: “Build the Vision” 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? Nightingale © 2000 Massachusetts Institute of Technology
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“Build the Vision” Description Template
TENSIONS What A “lean” vision Why Communicate “lean” enterprise-wide Who The Enterprise Leader When First step in TTL How Learn from successful “lean” implementations Where Enterprise-wide Nightingale © 2000 Massachusetts Institute of Technology
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“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 Technology
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Benefits of Enterprise TTL Roadmap
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 Technology
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Transition to Lean Module Concept
• Priorities • Sequence • Key Enablers • “How-To’s” • Change Mgmt. Principles Transition to Lean Plan Nightingale © 2000 Massachusetts Institute of Technology
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Production Operations Transition-To-Lean Roadmap
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 Phase Phase Phase Phase Phase Phase 6 Adopt Lean Define Identify Design Implement Total Paradigm Prepare Value Value Stream Production System Implement Flow System Pull • 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 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 • Collect baseline data • Develop a future 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 • 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 • Draw down inventories • Re-deploy • Re-deploy/ dispose assets Top Leadership Commitment Roadmap Phase 7 Strive for Perfection • Optimize quality • Team development • Expand TPM • Evaluate progress • Institutionalize 5S • Institute Kaizen events • Evaluate against using lean maturity • Remove system barriers target metrics matrices Expand Internally/Externally ENTRY IMPROVED COMPETITIVE POSITION Nightingale © 2000 Massachusetts Institute of Technology
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