Enterprise Transition to Lean Roadmap Aerospac

Enterprise Transition to
Lean
Roadmap
Lean
Aerospac
e
Initiative
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 -
© 22000 Massachusetts Institute of Technology
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 -
© 32000 Massachusetts Institute of Technology
Lean Enterprise
Implementation Processes and Tools
Enterprise Tool
Implementation Issue
What are the key lean
principles and
practices?
Lean Enterprise Model
(LEM)
Enterprise Transition
to Lean Roadmap
(TTL)
How do I transform my
enterprise to lean?
Lean Enterprise Self
Assessment Tool
(LESAT)
How do I assess
my progress?
Nightingale -
© 42000 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 -
© 52000 Massachusetts Institute of Technology
Lean Transformation Requires
an Enterprise Approach
Customer
Finance/Human
Resources, etc.
Manufacturing
Operations
Product Support
Product Development
Supplier Network
Nightingale -
© 62000 Massachusetts Institute of Technology
Enterprise Leadership is Key
Element of Success
LAI Aerospace Organizations
Productivity
Index
Leadership Index
Nightingale -
© 72000 Massachusetts Institute of Technology
Transition to Lean Module Concept
• Priorities
• Sequence
• Key Enablers
• “How-To’s”
• Change Mgmt.
Principles
Transition to
Lean Plan
Nightingale -
© 82000 Massachusetts Institute of Technology
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 -
© 92000 Massachusetts Institute of Technology
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 -
©102000 Massachusetts Institute of Technology
Enterprise Level Roadmap
Entry/Re-entry
Cycle
Adopt Lean
Paradigm
Decision to
Pursue
Enterprise
Transformatio
n
Enterprise
Strategic
Planning
Long Term Cycle
Initial
Lean
Vision
Focus on the
Value Stream
Detailed
Lean
Vision
Develop Lean Structure &
Behavior
+
Environmental
Corrective
Action Indicators
Lean
Transformation
Framework
Short Term Cycle
Focus on Continuous
Improvement
Detailed
Corrective Action
Indicators
Create & Refine
Transformation Plan
Outcomes on
Enterprise
Metrics
Implement Lean Initiatives
Nightingale -
Enterprise
Level
Transformation
Plan
©112000 Massachusetts Institute of Technology
Adopt Lean Paradigm
Build Vision
Convey Need
Foster Lean Learning
Make the Commitment
Obtain Senior Management Buy-in
Nightingale -
©122000 Massachusetts Institute of Technology
Focus on the Value Stream
Map Value Stream
Internalize Vision
Set Goals & Metrics
Identify & Involve Key Stakeholders
Nightingale -
©132000 Massachusetts Institute of Technology
Develop Lean Structure & Behavior
Organize for Lean Implementation
Identify & Empower Change Agents
Align Incentives
Adapt Structure & Systems
Nightingale -
©142000 Massachusetts Institute of Technology
Create & Refine Transformation Plan
Identify & Prioritize Activities
Commit Resources
Provide Education & Training
Nightingale -
©152000 Massachusetts Institute of Technology
Implement Lean Initiatives
Develop Detail Plans
Implement Lean Activities
Nightingale -
©162000 Massachusetts Institute of Technology
Focus on Continuous Improvement
Monitor Lean Progress
Nightingale -
©172000 Massachusetts Institute of Technology
Enterprise Level Roadmap
Entry/Re-entry
Cycle
Adopt Lean
Paradigm
•Build Vision
•Convey
Urgency
•Foster Lean
Learning
•Make the
Commitment
•Obtain Senior
Mgmt. Buy-in
Decision to
Pursue
Enterprise
Transformatio
n
Enterprise
Strategic
Planning
Long Term Cycle
Focus on the
Value Stream
Initial
Lean
Vision
•Map Value Stream
•Internalize Vision
•Set Goals & Metrics
•Identify & Involve Key
Stakeholders
Environmental
Corrective
Action Indicators
Focus on Continuous
Improvement
•Monitor Lean Progress
•Nurture the Process
•Refine the Plan
•Capture & Adopt New
Knowledge
Outcomes on
Enterprise
Metrics
Develop Lean Structure &
Behavior
Detailed
Lean
Vision
•Organize for Lean Implementation
•Identify & Empower Change Agents
•Align Incentives
•Adapt Structure & Systems
+
Lean
Transformation
Framework
Create & Refine
Transformation Plan
Short Term Cycle
Detailed
Corrective Action
Indicators
•Identify & Prioritize Activities
•Commit Resources
•Provide Education & Training
Implement Lean Initiatives
•Develop Detailed Plans
•Implement Lean Activities
Nightingale -
Enterprise
Level
Transformation
Plan
©182000 Massachusetts Institute of Technology
Enterprise Level Roadmap
The On-going Lean Enterprise
Long Term Cycle
Entry
Focus on the
Value Stream
Detailed
Lean
Vision
Response
to the
voice of the
customer
Enterprise
Strategic
Planning
+
Environmental
Corrective
Action Indicators
Lean
Transformation
Framework
Short Term Cycle
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Develop Lean Structure &
Behavior
Detailed
Corrective Action
Indicators
Create & Refine
Transformation Plan
+
Implement Lean Initiatives
Nightingale -
Enterprise
Level
Transformation
Plan
©192000 Massachusetts Institute of Technology
Common Discussion Framework Is Used
Discussion of issues
Six Interdependent Elements of Implementation
What
Why
Who
When
How
Where
•Enablers
•Barriers
•Related Case Studies
•Further Reference Material
Nightingale -
©202000 Massachusetts Institute of Technology
‘Drilling Down’ to an
Example of TTL’s Content
Enterprise Level Roadmap
The Discussion Outline
•Discussion of issue
•Six Interdependent Elements of
Implementation
What
Why
Who
When
How
Where
•Enablers
•Barriers
•Related Case Studies
•Further Reference Material
Issues surrounding the task
of “Build Vision”
during the activity of
“Adopting the Lean Paradigm”
Nightingale -
©212000 Massachusetts Institute of Technology
“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 -
©222000 Massachusetts Institute of Technology
“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 -
©232000 Massachusetts Institute of Technology
“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 -
©242000 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 -
©252000 Massachusetts Institute of Technology
Transition to Lean Module Concept
• Priorities
• Sequence
• Key Enablers
• “How-To’s”
• Change Mgmt.
Principles
Transition to
Lean Plan
Nightingale -
©262000 Massachusetts Institute of Technology
Production Operations
Transition-To-Lean Roadmap
Supply Chain/External Environment
• Legal
• Environmental
•Financial
•Information
Phase 0
Adopt Lean
Paradigm
• Build vision
• Establish need
• Foster lean
learning
• Make the
commitment
• Obtain Sr.
Mgmt. buy-in
ENTRY
•Procurement
•Engineering
Phase 1
Top
Leadership
Commitme
nt
Prepare
• 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)
Expand
Internally/Externally
• Government Reqd. Systems
(MMAS, EVMS, etc.)
Enterprise / Production System Interface
Phase 2
Define
Value
• Select initial
implementation
scope
• Define
Lean
customer
Roadma
• Define value p
Quality,
Schedule, and
Target Cost
• Optimize quality
• Institutionalize 5S
•Quality
•Safety
Phase 3
Identify
Value Stream
• Record current
state value
stream
• Chart product
and
information
flow
• Chart operator
movement
• Chart tool
movement
• Collect
baseline data
•Training and Human Resources
•Workforce/Management Partnership
Phase4
Phase5
Phase 6
Design
Implement Total
Production System
Implement Flow
System Pull
• Achieve process
• Select
• Develop a future
control
appropriate
state value
• Implement TPM
production
stream map
• Implement selfsystem control
• Identify takt time
inspection
mechanism
requirements
• Eliminate/
• Strive for single
• Review
reduce waste
item flow
make/buy
• Cross train
• Level and
decisions
workforce
balance
• Plan new layout
• Standardize
production flow
• Integrate
operations
• Link with
suppliers
• Reduce set-up
suppliers
• Design visual
times
• Draw down
control system
• Mistake proof
inventories
• Estimate and
processes
• Re-deploy
justify costs
• Implement cell
people
• Plan TPM
layout
• Re-deploy/
system
• Implement
dispose assets
visual controls
Phase 7
Strive for Perfection
• Team development
• Institute Kaizen events
• Remove system barriers
• Expand TPM
• Evaluate against
target metrics
• Evaluate progress
using lean maturity
matrices
IMPROVED COMPETITIVE
POSITION
Nightingale -
©272000 Massachusetts Institute of Technology