Enterprise Transition to Lean Roadmap - MIT …

1 Enterprise Transition to lean RoadmapProfessor Deborah NightingaleSeptember 28, 2005 Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 2 implementation IssueEnterprise ToolHow do I transform my Enterprise to lean ?How do I assessmy progress? Enterprise Transition to lean Roadmap (TTL) lean Enterprise Self Assessment Tool (LESAT)What are the key lean principles and practices? lean Enterprise Model (LEM) lean Enterprise implementation Processes and Tools Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 3 LEM Overarching Practices Promote lean leadership at all levels Relationships based on mutual trust and commitment Make decisions at lowest appropriate level Optimize capability and utilization of people Continuous focus on the customer Nurture a learning environment Assure seamless information flow Implement integrated product and process development (IPPD)

2 Ensure process capability and maturation Maintain challenges to existing processes Identify and optimize Enterprise flow Maintain stability in changing environmentProcess-oriented PracticesHuman-oriented Practices Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 4 implementation IssueEnterprise ToolHow do I transform my Enterprise to lean ?How do I assessmy progress? Enterprise Transition to lean Roadmap (TTL) lean Enterprise Self Assessment Tool (LESAT)What are the key lean principles and practices? lean Enterprise Model (LEM) lean Enterprise implementation Processes and Tools Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 5 lean Transformation Issues Why do most lean transformation activities fail?

3 What are the key success factors in implementing lean enterprisewide? 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 RoadmapIssues Motivated Development of Enterprise Transition to lean Roadmap Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 6 Strategic Alignment Management Commitment Sense of Urgency Stakeholder Involvement Organizational Structure Goals and Objectives Transformation Plan Monitoring and NurturingKey Principles of Change Management Apply to lean Transformation Deborah Nightingale, 2005 Massachusetts Institute of /.

4 Integrating the lean EnterprisePage 7 Finance/HumanResources, , NetworkSupplier NetworkProduct DevelopmentProduct DevelopmentProduct SupportProduct SupportManufacturingOperationsManufactur ingOperationsLean Transformation Requires an Enterprise Approach Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 8 Enterprise Leadership is Key Element of IndexLeadership IndexLAI Aerospace OrganizationsSource: D. Tonaszuck, MIT Master s Thesis, January 2000 Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 9 Business ProcessesHRAcquisitionSupplier NetworkProduction Operations RoadmapProduct DevelopmentEnterprise Level Roadmap ++++ Transition to lean Module ConceptTransition to lean Plan Priorities Sequence Key Enablers How-To s Change Mgmt.

5 Principles Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 10 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 Level Flow of primary activities referred to as The Roadmap Then, provides descriptions of key tasksrequired within each primary activityFinally, leads discussion of issues, enablers, barriers, case studies & reference material relevant to each task in a common structured frameworkEnterprise Level Roadmap Conceptual Framework++++WhyWhyWhatWhatWhereWhereHow HowWhenWhenWhoWhoFocus on the Value Stream Map Value Stream Internalize Vision Set Goals & Metrics Identify & Involve Key Stakeholders Deborah Nightingale, 2005 Massachusetts Institute of /.

6 Integrating the lean EnterprisePage 11 What Does the Enterprise Level TTL Model Provide?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 Deborah Nightingale, 2005 Massachusetts Institute of /.

7 Integrating the lean EnterprisePage 12 Long Term Cycle Focus on the Value StreamInitial lean VisionShort Term CycleCreate & Refine Transformation PlanLean TransformationFrameworkEntry EnterpriseStrategicPlanningFocus on Continuous ImprovementOutcomes on Enterprise MetricsImplement lean Initiatives Enterprise LevelTransformationPlanDevelop lean Structure & BehaviorDetailed LeanVisionEnvironmental Corrective Action IndicatorsDetailed Corrective Action IndicatorsLean Impact++Source: lean Aerospace Initiative, MIT 2001 Adopt LeanParadigmEnterprise Level Roadmap Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 13 Long Term Cycle Focus on the Value StreamInitial lean VisionShort Term CycleCreate & Refine Transformation PlanLean TransformationFrameworkEntry EnterpriseStrategicPlanningFocus on Continuous ImprovementOutcomes on Enterprise MetricsImplement lean Initiatives Enterprise LevelTransformationPlanDevelop lean Structure & BehaviorDetailed LeanVisionEnvironmental Corrective Action IndicatorsDetailed Corrective Action IndicatorsLean Impact++Source: lean Aerospace Initiative, MIT 2001 Adopt LeanParadigmEnterprise Level Roadmap Deborah Nightingale, 2005 Massachusetts Institute of /.

8 Integrating the lean EnterprisePage 14 Enterprise Strategic Planning Create the Business Case for lean Focus on Customer Value Include lean in Strategic Planning Leverage the Extended Enterprise Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 15 Long Term Cycle Focus on the Value StreamInitial lean VisionShort Term CycleCreate & Refine Transformation PlanLean TransformationFrameworkEntry EnterpriseStrategicPlanningFocus on Continuous ImprovementOutcomes on Enterprise MetricsImplement lean Initiatives Enterprise LevelTransformationPlanDevelop lean Structure & BehaviorDetailed LeanVisionEnvironmental Corrective Action IndicatorsDetailed Corrective Action IndicatorsLean Impact++Source: lean Aerospace Initiative, MIT 2001 Adopt LeanParadigmEnterprise Level Roadmap Deborah Nightingale, 2005 Massachusetts Institute of /.

9 Integrating the lean EnterprisePage 16 Adopt lean Paradigm Build Vision Convey Urgency Foster lean Learning Make the Commitment Obtain Senior Management Buy-in Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 17 Long Term Cycle Focus on the Value StreamInitial lean VisionShort Term CycleCreate & Refine Transformation PlanLean TransformationFrameworkEntry EnterpriseStrategicPlanningFocus on Continuous ImprovementOutcomes on Enterprise MetricsImplement lean Initiatives Enterprise LevelTransformationPlanDevelop lean Structure & BehaviorDetailed LeanVisionEnvironmental Corrective Action IndicatorsDetailed Corrective Action IndicatorsLean Impact++Source: lean Aerospace Initiative, MIT 2001 Adopt LeanParadigmEVSMAE nterprise Level Roadmap Deborah Nightingale, 2005 Massachusetts Institute of /.

10 Integrating the lean EnterprisePage 18 Focus On The Value Stream Map Value Stream Internalize Vision Set Goals & Metrics Identify & Involve Key Stakeholders Deborah Nightingale, 2005 Massachusetts Institute of / : Integrating the lean EnterprisePage 19 Long Term Cycle Focus on the Value StreamInitial lean VisionShort Term CycleCreate & Refine Transformation PlanLean TransformationFrameworkEntry EnterpriseStrategicPlanningFocus on Continuous ImprovementOutcomes on Enterprise MetricsImplement lean Initiatives Enterprise LevelTransformationPlanDevelop lean Structure & BehaviorDetailed LeanVisionEnvironmental Corrective Action IndicatorsDetailed Corrective Action IndicatorsLean Impact++Source: lean Aerospace Initiative, MIT 2001 Adopt LeanParadigmEnterprise Level Roadmap Deborah Nightingale, 2005 Massachusetts Institute of /.