Enterprise Transition to Lean Roadmap Lean Aerospac e Initiative.

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”?


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


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)


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 EnterpriseTransition to Lean Roadmap


Lean Transformation Requiresan Enterprise Approach

Finance/HumanResources, etc.

Finance/HumanResources, etc.

CustomerCustomer

Product DevelopmentProduct Development

ManufacturingOperations

ManufacturingOperations

Product SupportProduct Support

Supplier NetworkSupplier Network


Enterprise Leadership is KeyElement of Success

LAI Aerospace Organizations

ProductivityIndex

Leadership Index


Transition to Lean Module Concept

Transition toLean Plan

• Priorities• Sequence

• Key Enablers• “How-To’s”

• Change Mgmt.Principles


Enterprise Level RoadmapConceptual Framework

What is the Enterprise Level Transition-To-Lean Model ?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


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?What Does the Enterprise Level TTL Model Provide?


Enterprise Level Roadmap

Entry/Re-entryCycle

Adopt LeanParadigm

Decision toPursue

EnterpriseTransformatio

nEnterpriseStrategicPlanning

Long Term Cycle

Focus on theValue Stream

Develop Lean Structure &Behavior

Create & RefineTransformation Plan

Focus on ContinuousImprovement

Implement Lean Initiatives

InitialLean

Vision

DetailedLean

Vision

LeanTransformation

Framework

Short Term CycleDetailed

Corrective ActionIndicators

Outcomes onEnterprise

Metrics

EnvironmentalCorrectiveAction Indicators

EnterpriseLevel

TransformationPlan

+


Adopt Lean Paradigm

Build Vision

Convey Need

Foster Lean Learning

Make the Commitment

Obtain Senior Management Buy-in


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


Create & Refine Transformation Plan

Identify & Prioritize Activities

Commit Resources

Provide Education & Training



Develop Detail Plans

Implement Lean Activities


Focus on Continuous Improvement

Monitor Lean Progress



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


•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

Implement Lean Initiatives•Develop Detailed Plans•Implement Lean Activities

InitialLean

Vision

DetailedLean

Vision

LeanTransformation

Framework

Short Term Cycle

DetailedCorrective Action

Indicators


Metrics

EnvironmentalCorrectiveAction Indicators

EnterpriseLevel

TransformationPlan

+

Entry/Re-entryCycle


Enterprise Level RoadmapThe On-going Lean Enterprise

Entry

EnterpriseStrategicPlanning

Long Term CycleFocus on theValue Stream





DetailedLean

Vision

LeanTransformation

Framework

Short Term Cycle

DetailedCorrective Action

Indicators


Metrics

EnvironmentalCorrective

Action Indicators

EnterpriseLevel

TransformationPlan

+

+

Responseto the

voice of thecustomer


Common Discussion Framework Is Used

Discussion of issuesSix Interdependent Elements of Implementation

WhyWhy

WhatWhat

HowHow

WhoWho

WhenWhen

WhereWhere•Enablers

•Barriers

•Related Case Studies

•Further Reference Material


‘Drilling Down’ to anExample of TTL’s Content


•Discussion of issue•Six Interdependent Elements of Implementation

•Enablers•Barriers•Related Case Studies•Further Reference Material

WhyWhy

WhatWhat

HowHow

WhoWho

WhenWhen

WhereWhere

The Discussion Outline

Issues surrounding the taskof “Build Vision”

during the activity of“Adopting the Lean Paradigm”


“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 Roadmap

PHASE: Adopt Lean Paradigm

ACTION ITEM: “Build the Vision”



TENSIONS

WhyCommunicate “lean”

enterprise-wide

WhyCommunicate “lean”

enterprise-wide

WhatA “lean” vision

WhatA “lean” vision

HowLearn from successful

“lean” implementations

HowLearn from successful

“lean” implementations

WhoThe Enterprise Leader

WhoThe Enterprise Leader

WhenFirst step in TTL

WhenFirst step in TTL

WhereEnterprise-wide

WhereEnterprise-wide



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?”


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


Transition to Lean Module Concept

Transition toLean Plan

• Priorities• Sequence

• Key Enablers• “How-To’s”

• Change Mgmt.Principles


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

• 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)

• 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

• 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

• 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

• 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

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

• 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

Enterprise Transition to Lean Roadmap Lean Aerospac e Initiative.

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