Enterprise Transition to Lean Roadmap Lean Aerospace Initiative Nightingale 2 ? 2000 Massachusetts Institute of Technology 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 to change”? - Nightingale 3 ? 2000 Massachusetts Institute of Technology ? Strategic Alignment ? Management Commitment ? Sense of Urgency ? Stakeholder Involvement ? Organizational Structure ? Goals and Objectives ? Transformation Plan ? Monitoring and Nurturing Key Principles of Change Management Apply to Lean Transformation - Nightingale 4 ? 2000 Massachusetts Institute of Technology Implementation Issue Enterprise Tool How do I transform my enterprise to lean? How do I assess my progress? Enterprise Transition to Lean Roadmap (TTL) Lean Enterprise Self Assessment Tool (LESAT) Lean Enterprise Implementation Processes and Tools What are the key lean principles and practices? Lean Enterprise Model (LEM) - Nightingale 5 ? 2000 Massachusetts Institute of Technology 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 6 ? 2000 Massachusetts Institute of Technology Finance/Human Resources, etc. Finance/Human Resources, etc. Customer Customer Supplier Network Supplier Network Product Development Product Development Product Support Product Support Manufacturing Operations Manufacturing Operations Lean Transformation Requires an Enterprise Approach - Nightingale 7 ? 2000 Massachusetts Institute of Technology Enterprise Leadership is Key Element of Success 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Productivity Index Leadership Index LAI Aerospace Organizations Source: D. Tonaszuck, MIT Master’s Thesis, January 2000 - Nightingale 8 ? 2000 Massachusetts Institute of Technology Business Processes HR Acquisition Supplier Network Production Operations Roadmap Product Development Enterprise Level Roadmap + + Transition to Lean Module Concept Transition to Lean Plan ?Priorities ? Sequence ? Key Enablers ? “How-To’s” ? Change Mgmt. Principles - Nightingale 9 ? 2000 Massachusetts Institute of Technology 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” 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 Enterprise Level Roadmap Conceptual Framework ++ ++ Why Why What What Where Where How How When When Who Who Focus on the Value Stream ?Map Value Stream ?Internalize Vision ?Set Goals & Metrics ?Identify & Involve Key Stakeholders - Nightingale 10 ? 2000 Massachusetts Institute of Technology What Does the Enterprise Level TTL Model Provide? Enterprise Level Roadmap Conceptual 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’ process - Nightingale 11 ? 2000 Massachusetts Institute of Technology Long Term Cycle Short Term Cycle Entry/Re-entry Cycle Create & Refine Transformation Plan Focus on Continuous Improvement Implement Lean Initiatives Adopt Lean Paradigm Enterprise Strategic Planning Decision to Pursue Enterprise Transformation Focus on the Value Stream Initial Lean Vision Detailed Lean Vision Lean Transformation Framework Develop Lean Structure & Behavior Enterprise Level Transformation Plan Outcomes on Enterprise Metrics Environmental Corrective Action Indicators Detailed Corrective Action Indicators + + Enterprise Level Roadmap - Nightingale 12 ? 2000 Massachusetts Institute of Technology Adopt Lean Paradigm ?Build Vision ?Convey Need ?Foster Lean Learning ?Make the Commitment ?Obtain Senior Management Buy-in - Nightingale 13 ? 2000 Massachusetts Institute of Technology Focus on the Value Stream ? Map Value Stream ? Internalize Vision ? Set Goals & Metrics ? Identify & Involve Key Stakeholders - Nightingale 14 ? 2000 Massachusetts Institute of Technology Develop Lean Structure & Behavior ? Organize for Lean Implementation ? Identify & Empower Change Agents ? Align Incentives ? Adapt Structure & Systems - Nightingale 15 ? 2000 Massachusetts Institute of Technology Create & Refine Transformation Plan ? Identify & Prioritize Activities ? Commit Resources ? Provide Education & Training - Nightingale 16 ? 2000 Massachusetts Institute of Technology Implement Lean Initiatives ? Develop Detail Plans ? Implement Lean Activities - Nightingale 17 ? 2000 Massachusetts Institute of Technology Focus on Continuous Improvement ? Monitor Lean Progress ? Nurture the Process ? Refine the Plan ? Capture & Adopt New Knowledge - Nightingale - 18 ? 2000 Massachusetts Institute of Technology Entry/Re-entry Cycle Focus on the Value Stream Initial Lean Vision Short Term Cycle Create & Refine Transformation Plan Lean Transformation Framework Adopt Lean Paradigm Enterprise Strategic Planning Focus on Continuous Improvement Outcomes on Enterprise Metrics Implement Lean Initiatives Enterprise Level Transformation Plan Develop Lean Structure & Behavior Detailed Lean Vision Environmental Corrective Action Indicators Detailed Corrective Action Indicators Decision to Pursue Enterprise Transformation ?Build Vision ?Convey Urgency ?Foster Lean Learning ?Make the Commitment ?Obtain Senior Mgmt. Buy-in ?Map Value Stream ?Internalize Vision ?Set Goals & Metrics ?Identify & Involve Key Stakeholders ?Organize for Lean Implementation ?Identify & Empower Change Agents ?Align Incentives ?Adapt Structure & Systems ?Identify & Prioritize Activities ?Commit Resources ?Provide Education & Training ?Monitor Lean Progress ?Nurture the Process ?Refine the Plan ?Capture & Adopt New Knowledge ?Develop Detailed Plans ?Implement Lean Activities Enterprise Level Roadmap + + Long Term Cycle Nightingale - 19 ? 2000 Massachusetts Institute of Technology Long Term Cycle Focus on the Value Stream Response to the voice of the customer Short Term Cycle Create & Refine Transformation Plan Lean Transformation Framework Entry Enterprise Strategic Planning Focus on Continuous Improvement Outcomes on Enterprise Metrics Implement Lean Initiatives Enterprise Level Transformation Plan + Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Detailed Corrective Action Indicators Lean Impact Enterprise Level Roadmap The On-going Lean Enterprise Nightingale - 20 ? 2000 Massachusetts Institute of Technology ?Discussion of issues ?Six Interdependent Elements of Implementation z Enablers z Barriers z Related Case Studies z Further Reference Material Why Why What What Where Where How How When When Who Who Common Discussion Framework Is Used Nightingale - 21 ? 2000 Massachusetts Institute of Technology The Discussion Outline Issues surrounding the task of “Build Vision” during the activity of “Adopting the Lean Paradigm” Why Why What What Where Where How How When When Who Who ? Discussion of issue ? Six Interdependent Elements of Implementation ? Enablers ? Barriers ? Related Case Studies ? Further Reference Material Enterprise Level Roadmap Long Term Cycle Focus on the Value Stream Initial Lean Vision Short Term Cycle Create and Refine Transformation Plan Lean Transformation Framework Adopt Lean Paradigm Entry Enterprise Strategic Planning Focus on Continuous Improvement Outcomes on Enterprise Metrics Implement Lean Initiatives Enterprise Level Transformation Plan + Develop Lean Structure & Behavior Detailed Lean Vision + Environmental Corrective Action Indicators Detailed Corrective Action Indicators Decision to Pursue Enterprise Transformation ? Build Vision ? Convey Urgency ? Foster Lean Learning ? Make the Commitment ? Obtain Senior Mgmt. Buy-in ?Map Value Stream ? Internalize Vision ?Set Goals & Metrics ? Identify & Involve Key Stakeholders ?Organize for Lean Implementation ?Identify & Empower Change Agents ?Align Incentives ?Adapt Structure & Systems ?Identify & Prioritize Activities ?Commit Resources ?Provide Education & Training ? Monitor Lean Progress ? Nurture the Process ? Refine the Plan ? Capture & Adopt New Knowledge ?Develop Detail Plans ?Implement Lean Activities ‘Drilling Down’ to an Example of TTL’s Content Nightingale - 22 ? 2000 Massachusetts Institute of Technology 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? “Build the Vision” Description Template Nightingale - 23 ? 2000 Massachusetts Institute of Technology Why Communicate “lean” enterprise-wide Why Communicate “lean” enterprise-wide What A “lean” vision What A “lean” vision Where Enterprise-wide Where Enterprise-wide How Learn from successful “lean” implementations How Learn from successful “lean” implementations When First step in TTL When First step in TTL Who The Enterprise Leader Who The Enterprise Leader TENSIONS “Build the Vision” Description Template Nightingale - 24 ? 2000 Massachusetts Institute of Technology 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?” “Build the Vision” Description Template Nightingale - 25 ? 2000 Massachusetts Institute of Technology 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 - 26 ? 2000 Massachusetts Institute of Technology Business Processes HR Acquisition Supplier Network Production Operations Roadmap Product Development Enterprise Level Roadmap + + Transition to Lean Module Concept Transition to Lean Plan ?Priorities ? Sequence ? Key Enablers ? “How-To’s” ? Change Mgmt. Principles Nightingale - 27 ? 2000 Massachusetts Institute of Technology Prepare ? Select initial implementation scope ? Define customer ? Define value - Quality, Schedule, and Target Cost ? 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 ? Record current state value stream ? Chart product and information flow ? Chart operator movement ?Chart tool movement ? Collect baseline data ? 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 ? 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 ? 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 Define Value Identify Value Stream Implement Flow Implement Total System Pull IMPROVED COMPETITIVE POSITION ? 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 ? 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 Design Production System ENTRY ? 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) ? 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) ? Build vision ? Establish need ? Foster lean learning ? Make the commitment ? Obtain Sr. Mgmt. buy-in ? Build vision ? Establish need ? Foster lean learning ? Make the commitment ? Obtain Sr. Mgmt. buy-in Phase 5 Phase 6Phase 1 Phase 2 Phase 3 Phase 4Phase 0 Adopt Lean Paradigm Phase 7 Strive for Perfection Expand Internally/Externally Enterprise / Production System Interface ? Financial ? Information ? Quality ? Safety ? Training and Human Resources ? Workforce/Management Partnership + ? Team development ? Institute Kaizen events ? Remove system barriers ? Expand TPM ? Evaluate against target metrics ? Evaluate progress using lean maturity matrices ? Optimize quality ? Institutionalize 5S Top Leadership Lean Roadmap Supply Chain/External Environment ? Legal ? Environmental Commitment ? Procurement ? Engineering ? Government Reqd. Systems (MMAS, EVMS, etc.) + + + + Production Operations Transition-To-Lean Roadmap