1. Improvement That Flows to the Bottom Line Requires Vision Focus on Customers and Employees Active Leadership Involvement and Alignment Willingness to Break Established Paradigms Hierarchy of Trained, Empowers, and Incentivized Employees Constancy of Improvement Activity Celebrate and Reward Success Dick Lewis Roll Royce COO 2001-2004 MIT 16.660 – Jan 2008

2. Notes Teams DMAIC (adapted from the Deming Cycle) – Define (Process map, problem definition, metrics, improvement goals) – Measure (Process analysis, statistics, data collection & analysis) – Analyze (Data analysis, Lean, FMEA) – Improve (DOE, Kaizen, Non-value eliminated) – Control (Poka-Yoke, 5S, Kanban, SPC, TPM)

3. notes Metrics (defined by the voice of the customer) – On-time delivery – Delivered Product Quality – First Pass Test Yields – Past Due receivables – Capital ROI Started with “Low hanging Fruit” – 5S, multi-skills training, supply chain – Leadership Team, metrics, organizational restructuring, focus on data – Saved 3% ($150M the 1 st yr)

4. notes Reduce the Barriers to Change – Define the burning platform – Obtain buy-in from key stakeholders – Communicate 3 – Dispatch the resistance – Reward Results (recognition and rewards)