Enterprise Transition to Lean Roadmap. Professor Deborah Nightingale September 28, 2005

Transcription

1 Transition to Roadmap Professor Deborah Nightingale September 28, 2005

2 Implementation Processes and Tools Implementation Issue Tool What are the key lean principles and practices? How do I transform my enterprise to lean? How do I assess my progress? Model (LEM) Transition to Roadmap (TTL) Self Assessment Tool (LESAT) ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 2

3 LEM Overarching Practices Human-oriented 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 Process-oriented Practices Assure seamless information flow 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 ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 3

4 Implementation Processes and Tools Implementation Issue Tool What are the key lean principles and practices? How do I transform my enterprise to lean? Model (LEM) Transition to Roadmap (TTL) How do I assess my progress? Self Assessment Tool (LESAT) ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 4

5 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 Transition to Roadmap ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 5

6 Key Principles of Change Management Apply to Strategic Alignment Management Commitment Sense of Urgency Stakeholder Involvement Organizational Structure Goals and Objectives Plan Monitoring and Nurturing ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 6

7 Requires an Approach Customer Finance/Human Resources, etc. etc. Manufacturing Operations Product Support Product Development Supplier Network ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 7

8 Leadership is Key Element of Success LAI Aerospace Organizations Productivity Index Leadership Index Source: D. Tonaszuck, MIT Master s Thesis, January 2000 ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 8

9 Transition to Module Concept Level Roadmap HR Business Processes Acquisition Supplier Network Product Development Priorities Sequence Key Enablers How-To s Change Mgmt. Principles Production Operations Roadmap Transition to Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 9

10 Level Roadmap Conceptual Framework What is is the Level Transition-To- 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 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 Why Why When When What What Where Where Who Who How How ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 10

11 Level Roadmap Conceptual Framework What Does the Level TTL Model Provide? A robust path that 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 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 ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 11

12 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 12

13 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 13

14 Strategic Planning Create the Business Case for Focus on Customer Value Include in Strategic Planning Leverage the Extended ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 14

15 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 15

16 Adopt Paradigm Build Convey Urgency Foster Learning Make the Commitment Obtain Senior Management Buy-in ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 16

17 Level Roadmap Entry Adopt Paradigm Strategic Planning EVSMA Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 17

18 Focus On The Value Stream Map Value Stream Internalize Set Goals & Metrics Identify & Involve Key Stakeholders ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 18

19 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 19

20 Develop Structure And Behavior Organize for Implementation Identify & Empower Change Agents Align Incentives Adapt Structure & Systems ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 20

21 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 21

22 Create & Refine Plan Identify & Prioritize Activities Commit Resources Provide Education & Training ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 22

23 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 23

24 Implement Initiatives Develop Plans Implement Activities ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 24

25 Level Roadmap Entry Adopt Paradigm Strategic Planning Initial Environmental Action Indicators Focus on the Value Stream Focus on Continuous Improvement Long Term Cycle Short Term Cycle Action Indicators Develop Structure & Behavior Framework Create & Refine Plan Impact Outcomes on Metrics Source: Aerospace Initiative, MIT 2001 Implement Initiatives Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 25

26 Focus On Continuous Improvement Monitor Progress Nurture the Process Refine the Plan Capture and Adopt New Knowledge ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 26

27 Entry/Re-entry Cycle Adopt Paradigm Build Convey Urgency Foster Learning Make the Commitment Obtain Senior Mgmt. Buy-in Decision to Pursue Strategic Planning Create the Business Case for Focus on Customer Value Include in Strategic Planning Leverage the Extended Transition to Initial Focus on the Value Stream Map Value Stream Internalize Set Goals & Metrics Identify & Involve Key Stakeholders Environmental Action Indicators Focus on Continuous Improvement Monitor Progress Nurture the Process Refine the Plan Capture & Adopt New Knowledge Outcomes on Metrics Roadmap Long Term Cycle Short Term Cycle Action Indicators Implement Initiatives Develop Plans Implement Activities Develop Structure & Behavior Organize for Implementation Identify & Empower Change Agents Align Incentives Adapt Structure & Systems Framework Create & Refine Plan Identify & Prioritize Activities Commit Resources Provide Education & Training Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 27

28 Entry Strategic Planning Impact Level Roadmap The On-going Response to the voice of the customer Focus on the Value Stream Environmental Action Indicators Focus on Continuous Improvement Outcomes on Metrics Long Term Cycle Short Term Cycle Action Indicators Implement Initiatives Develop Structure & Behavior Framework Create & Refine Plan Level Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 28

29 Common Discussion Framework Is Used Discussion of issues Six Interdependent Elements of Implementation What What Why Why Who Who When When How How Enablers Where Where Barriers Related Case Studies Further Reference Material ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 29

30 Drilling Down to an Example of TTL s Content Entry Adopt Paradigm Build Convey Urgency Foster Learning Make the Commitment Obtain Senior Mgmt. Buy-in Decision to Pursue Strategic Planning Create the Business Case for Focus on Customer Value Include in Strategic Planning Leverage the Extended Initial Level Roadmap Outcomes on Metrics Focus on the Value Stream Map Value Stream Internalize Set Goals & Metrics Identify & Involve Key Stakeholders Long Term Cycle Environmental Short Term Cycle Action Indicators Focus on Continuous Action Improvement Indicators Monitor Progress Nurture the Process Refine the Plan Capture & Adopt New Knowledge Implement Initiatives Develop Detail Plans Implement Activities Develop Structure & Behavior Organize for Implementation Identify & Empower Change Agents Align Incentives Adapt Structure & Systems Framework Create and Refine Plan Identify & Prioritize Activities Commit Resources Provide Education & Training Level Plan The Discussion Outline Discussion of issue Six Interdependent Elements of Implementation Why Why When When What What Where Where Who Who How How Enablers Barriers Related Case Studies Further Reference Material Issues surrounding the task of Build during the activity of Adopting the Paradigm ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 30

31 Benefits of 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 ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 31

32 Transition to Module Concept Level Roadmap HR Business Processes Acquisition Supplier Network Product Development Priorities Sequence Key Enablers How-To s Change Mgmt. Principles Production Operations Roadmap Transition to Plan ESD.61J / J: Integrating the Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 32

33 Financial Information 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 ENTRY Phase 0 Adopt Paradigm Production Operations Transition- Legal Environmental Top Leadership Commitment Expand Internally/Externally ESD.61J / J: Integrating the Procurement Engineering To- Roadmap Supply Chain/External Environment / Production System Interface Quality Safety Phase 1 Phase 2 Phase 3 Phase 4 Define Identify Design Prepare Value Value Stream Production System Integrate with Select initial Record current Develop a future Integrate with Select initial Record current Develop a future Level implementation state value state value Level implementation state value state value Establish an scope stream stream map Establish an scope stream stream map Operations Define Chart product Identify takt time Operations Roadmap Define Chart product Identify takt time customer and requirements customer and requirements Implementation Define value - information Review Implementation Define value - information Review Team(s) Quality, flow make/buy Team(s) Quality, flow make/buy Develop Schedule, and Chart operator decisions Develop Schedule, and Chart operator decisions implementation Target Cost movement Plan new layout implementation Target Cost movement Plan new layout strategy Chart tool Integrate strategy Chart tool Integrate Develop a plan movement suppliers Develop a plan movement suppliers to address Collect Design visual to address Collect Design visual workforce baseline data control system workforce baseline data control system changes Estimate and changes Estimate and Address Site justify costs Address Site justify costs Specific Cultural Plan TPM Specific Cultural Plan TPM Issues system Issues system Train key Train key people people Establish target Establish target objectives objectives (metrics) (metrics) Phase 7 Optimize quality Institutionalize 5S Strive for Perfection Team development Institute Kaizen events Remove system barriers Deborah Nightingale, 2005 Massachusetts Institute of Technology Training and Human Resources Workforce/Management Partnership Expand TPM Evaluate against target metrics Government Reqd. Systems (MMAS, EVMS, etc.) Phase 5 Phase 6 Implement Flow Achieve process Achieve process control control Implement TPM Implement TPM Implement selfinspection Implement selfinspection 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 Evaluate progress using lean maturity matrices Implement Total System Pull 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 IMPROVED COMPETITIVE POSITION