6 Trans Leanroad

Enterprise Transition to Lean Roadmap
Professor Deborah Nightingale

September 28, 2005
Lean Enterprise Implementation

Processes and Tools
Implementation Issue
Enterprise Tool
What are the key lean

principles and
practices?
Lean Enterprise Model

(LEM)
How do I transform my
enterprise to lean?
Enterprise Transition
to Lean Roadmap
(TTL)
How do I assess
my progress?
Lean Enterprise Self

Assessment Tool
(LESAT)
ESD.61J / 16.852J: Integrating the Lean Enterprise
Deborah Nightingale, 2005 Massachusetts Institute of Technology
Page 2
LEM Overarching Practices

Human-oriented Practices
Process-oriented Practices
Promote lean leadership at all

levels
Assure seamless information

flow
Relationships based on
mutual trust and commitment
Make decisions at lowest

appropriate level
Implement integrated product

and process development
(IPPD)
Ensure process capability and

maturation
Maintain challenges to existing

processes
Identify and optimize enterprise

flow
Maintain stability in changing

environment
Optimize capability and

utilization of people
Continuous focus on the

customer
Nurture a learning
environment
Page 3
Lean Enterprise Implementation

Processes and Tools
Implementation Issue
Lean Enterprise Model

(LEM)
What are the key lean

principles and
practices?
How do I transform my
enterprise to lean?
How do I assess
my progress?
Enterprise Tool
Enterprise Transition to
Lean Roadmap (TTL)
Lean Enterprise Self
Assessment Tool
(LESAT)
Page 4
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
Issues Motivated
Motivated Development
Development of
of Enterprise
Enterprise
Transition
Transition to
to Lean
Lean Roadmap
Roadmap
Page 5
Key Principles of Change Management

Apply to Lean Transformation
Strategic Alignment
Organizational Structure
Management Commitment Goals and Objectives

Sense of Urgency
Transformation Plan
Stakeholder Involvement
Monitoring and Nurturing
Page 6
Lean Transformation Requires

an Enterprise Approach
Customer
Customer
Finance/Human
Finance/Human
Resources,
Resources,etc.
etc.
Manufacturing
Manufacturing
Operations
Operations
Product
ProductSupport
Support
Product
ProductDevelopment
Development
Supplier
SupplierNetwork
Network
Page 7
Enterprise Leadership is Key

Element of Success
LAI Aerospace Organizations
1
0.9
0.8
0.7
Productivity
Index
0.6
0.5
0.4
0.3
0.2
0.1
0
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Leadership Index
Source: D. Tonaszuck, MIT Masters Thesis, January 2000
Page 8
Transition to Lean Module Concept

Enterprise Level Roadmap
HR
Business Processes
Acquisition
Supplier Network
Product Development
Priorities
Sequence
Key Enablers
How-Tos
Change Mgmt.
Principles
Production Operations Roadmap
Transition to
Lean Plan
Page 9

Conceptual Framework
What
Whatis
isthe
theEnterprise
EnterpriseLevel
LevelTransition-To-Lean
Transition-To-LeanModel
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
What
What
Why
Why
Who
Who
When
When
How
How
Where
Where
Page 10

Conceptual Framework
What
WhatDoes
Doesthe
theEnterprise
EnterpriseLevel
LevelTTL
TTLModel
ModelProvide?
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
process
Page 11

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact
Source: Lean Aerospace
Initiative, MIT 2001
Develop Lean Structure &

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 12

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 13
Enterprise Strategic Planning

Create the Business Case for Lean
Focus on Customer Value
Include Lean in Strategic Planning
Leverage the Extended Enterprise
Page 14

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 15
Adopt Lean Paradigm

Build Vision
Convey Urgency
Foster Lean Learning
Make the Commitment
Obtain Senior Management Buy-in
Page 16

Entry
Adopt Lean
Paradigm
EVSMA
Long Term Cycle

Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 17
Focus On The Value Stream

Map Value Stream
Internalize Vision
Set Goals & Metrics
Identify & Involve Key Stakeholders
Page 18

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 19
Develop Lean Structure

And Behavior
Organize for Lean Implementation
Identify & Empower Change Agents
Align Incentives
Adapt Structure & Systems
Page 20

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 21
Create & Refine

Transformation Plan
Identify & Prioritize Activities
Commit Resources
Provide Education & Training
Page 22

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 23
Implement Lean Initiatives

Develop Detailed Plans
Implement Lean Activities
Page 24

Long Term Cycle
Entry
Adopt Lean
Paradigm
Focus on the
Value Stream
Detailed
Lean
Vision
Initial Lean
Vision
+
Environmental
Corrective
Action Indicators
Enterprise
Strategic
Planning
Lean Impact

Behavior
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
Lean
Transformation
Framework
Short Term Cycle

Detailed
Corrective
Action
Indicators
Create & Refine

Transformation Plan
Implement Lean
Initiatives
Enterprise
Level
Transformation
Plan
Page 25
Focus On Continuous
Improvement
Monitor Lean Progress
Nurture the Process
Refine the Plan
Capture and Adopt New Knowledge
Page 26
Enterprise Transition to Lean

Roadmap
Entry/Re-entry
Cycle
Long Term Cycle

Focus on the Value
Stream
Adopt Lean
Paradigm
Build Vision
Convey Urgency
Foster Lean Learning
Make the Commitment
Obtain Senior Mgmt.
Buy-in
Initial
Lean
Vision
Environmental
Corrective
Action Indicators
Decision to
Pursue Enterprise
Transformation
Enterprise
Strategic
Planning
Create the Business Case
for Lean
Include Lean in Strategic
Planning
Leverage the Extended
Enterprise
Map Value Stream

Internalize Vision
Set Goals & Metrics
Stakeholders

Behavior
Detailed
Lean
Vision
Short Term Cycle
Focus on Continuous
Improvement
Detailed
Corrective Action
Indicators

Nurture the Process
Refine the Plan
Capture & Adopt New Knowledge

Identify & Empower Change Agents
Align Incentives
Lean
Transformation
Framework
Create & Refine

Transformation Plan
Commit Resources
+
Outcomes on
Enterprise
Metrics
Enterprise
Level
Transformation
Plan

Develop Detailed Plans
Page 27

The On-going Lean Enterprise
Long Term Cycle
Entry
Enterprise
Strategic
Planning
Focus on the
Value Stream

Behavior
Detailed
Lean
Vision
Response
to the
voice of the
customer
Environmental
Corrective
Action Indicators
Lean
Transformation
Framework
Short Term Cycle
Focus on Continuous
Improvement
Detailed
Corrective Action
Indicators
Create & Refine

Transformation Plan
Lean Impact
Outcomes on
Enterprise
Metrics
Enterprise
Level
Transformation
Plan
Page 28
Common Discussion
Framework Is Used
Discussion of issues
Six Interdependent Elements of Implementation
What
What
Why
Why
Who
Who
When
When
How
How
Where
Where
Enablers
Barriers
Related Case Studies
Further Reference Material
Page 29
Drilling Down to an
Example of TTLs Content
Entry

Long Term Cycle
Adopt Lean
Paradigm
Build Vision
Convey Urgency
Foster Lean
Learning
Make the
Commitment
Obtain Senior
Mgmt. Buy-in
Decision to
Pursue
Enterprise
Transformation
Enterprise Strategic Planning
Create the Business Case for
Lean
Include Lean in Strategic
Planning
Leverage the Extended
Enterprise
Focus on the Value

Stream
Initial
Lean
Vision

Behavior
Map Value Stream

Detailed
Internalize Vision
Lean
Set Goals & Metrics
Vision
Stakeholders
Environmental
Corrective
Action Indicators

Identify & Empower Change
Agents
Align Incentives
Short Term Cycle
Discussion of issue
Six Interdependent Elements of
Implementation
What
What
Lean
Transformation
Framework
Detailed
Focus on Continuous Corrective Action
Create and Refine
Improvement
Indicators
Transformation Plan
Nurture the Process
Commit Resources
Refine the Plan
Capture & Adopt New
Knowledge
Enterprise
Outcomes on
Level
Enterprise
Transformation
Develop Detail Plans
Metrics
Plan
The Discussion Outline
Why
Why
Who
Who
When
When
How
How
Where
Where
Enablers
Barriers
Related Case Studies
Further Reference Material
Issues surrounding the task

of Build Vision
during the activity of
Adopting the Lean Paradigm
Page 30
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
Page 31
Transition to Lean Module Concept

HR
Business Processes
Acquisition
Supplier Network
Product Development
Priorities
Sequence
Key Enablers
How-Tos
Change Mgmt.
Principles
Production Operations Roadmap
Transition to
Lean Plan
Page 32
Production Operations TransitionTo-Lean Roadmap

Supply Chain/External Environment
Legal
Environmental
Government Reqd. Systems

(MMAS, EVMS, etc.)
Enterprise / Production System Interface

Procurement
Engineering
Financial
Information
Quality
Safety
Training and Human Resources

Workforce/Management Partnership
Phase 0
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Adopt Lean
Paradigm
Prepare
Define
Value
Identify
Value Stream
Design
Production System
Implement Flow
Implement Total
System Pull
Build vision
Build vision
Establish need
Establish need
Foster lean
Foster lean
learning
learning
Make the
Make the
commitment
commitment
Obtain Sr.
Obtain Sr.
Mgmt. buy-in
Mgmt. buy-in
Integrate with
Integrate with
Enterprise Level
Enterprise Level
Establish an
Top
Lean
Establish an
Operations
Leadership
Roadmap
Operations
Lean
Lean
Implementation
Implementation
Commitment Team(s)
Team(s)
Develop
Develop
implementation
implementation
strategy
strategy
Develop a plan
Develop a plan
to address
to address
workforce
workforce
changes
changes
Address Site
Address Site
Specific Cultural
Specific Cultural
Issues
Issues
Train key
Train key
people
people
Establish target
Establish target
objectives
objectives
(metrics)
(metrics)
Select initial
Select initial
implementation
implementation
scope
scope
Define
Define
customer
customer
Define value Define value Quality,
Quality,
Schedule, and
Schedule, and
Target Cost
Target Cost
Record current
Record current
state value
state value
stream
stream
Chart product
Chart product
and
and
information
information
flow
flow
Chart operator
Chart operator
movement
movement
Chart tool
Chart tool
movement
movement
Collect
Collect
baseline data
baseline data
Develop a future
Develop a future
state value
state value
stream map
stream map
Identify takt time
Identify takt time
requirements
requirements
Review
Review
make/buy
make/buy
decisions
decisions
Plan new layout
Plan new layout
Integrate
Integrate
suppliers
suppliers
Design visual
Design visual
control system
control system
Estimate and
Estimate and
justify costs
justify costs
Plan TPM
Plan TPM
system
system
Achieve process
Achieve process
control
control
Implement TPM
Implement TPM
Implement self Implement selfinspection
inspection
Eliminate/
Eliminate/
reduce waste
reduce waste
Cross train
Cross train
workforce
workforce
Standardize
Standardize
operations
operations
Reduce set-up
Reduce set-up
times
times
Mistake proof
Mistake proof
processes
processes
Implement cell
Implement cell
layout
layout
Implement visual
Implement visual
controls
controls
+
+
Phase 7
Select
Select
appropriate
appropriate
production
production
system control
system control
mechanism
mechanism
Strive for single
Strive for single
item flow
item flow
Level and
Level and
balance
balance
production flow
production flow
Link with
Link with
suppliers
suppliers
Draw down
Draw down
inventories
inventories
Re-deploy
Re-deploy
people
people
Re-deploy/
Re-deploy/
dispose assets
dispose assets
Strive for Perfection

Optimize quality
Institutionalize 5S
ENTRY
Expand
Internally/Externally
Team development
Institute Kaizen events
Remove system barriers
Expand TPM
Evaluate against
target metrics
Evaluate progress
using lean maturity
matrices
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Enterprise Transition to Lean Roadmap

Professor Deborah Nightingale

Lean Enterprise Implementation

What are the key lean

Lean Enterprise Model

Lean Enterprise Self

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

LEM Overarching Practices

Promote lean leadership at all

Assure seamless information

Make decisions at lowest

Implement integrated product

Ensure process capability and

Maintain challenges to existing

Identify and optimize enterprise

Maintain stability in changing

Optimize capability and

Continuous focus on the

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Lean Enterprise Implementation

Lean Enterprise Model

What are the key lean

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Lean Transformation Issues

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Key Principles of Change Management

Management Commitment Goals and Objectives

Monitoring and Nurturing

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Lean Transformation Requires

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Enterprise Leadership is Key

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Transition to Lean Module Concept

Production Operations Roadmap

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Enterprise Level Roadmap

Focus on the Value

Then, provides descriptions of key tasks

Finally, leads discussion of issues, enablers, barriers,

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Enterprise Level Roadmap

ESD.61J / 16.852J: Integrating the Lean Enterprise

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Enterprise Level Roadmap

Develop Lean Structure &

ESD.61J / 16.852J: Integrating the Lean Enterprise

Short Term Cycle

Create & Refine

Deborah Nightingale, 2005 Massachusetts Institute of Technology

Enterprise Level Roadmap

Develop Lean Structure &

ESD.61J / 16.852J: Integrating the Lean Enterprise

Short Term Cycle

Create & Refine