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Enterprise Transition to Lean Roadmap Lean Aerospac e Initiative.

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Presentation on theme: "Enterprise Transition to Lean Roadmap Lean Aerospac e Initiative."— Presentation transcript:

1 Enterprise Transition to Lean Roadmap Lean Aerospac e Initiative

2 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 before others? How do we assess an organizations readiness tochange?

3 Nightingale - © 2000 Massachusetts Institute of Technology3 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

4 Nightingale - © 2000 Massachusetts Institute of Technology4 Lean Enterprise Implementation Processes and Tools Implementation Issue What are the key lean principles and practices? How do I transform my enterprise to lean? How do I assess my progress? Enterprise Tool Lean Enterprise Model (LEM) Enterprise Transition to Lean Roadmap (TTL) Lean Enterprise Self Assessment Tool (LESAT)

5 Nightingale - © 2000 Massachusetts Institute of Technology5 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

6 Nightingale - © 2000 Massachusetts Institute of Technology6 Lean Transformation Requires an Enterprise Approach Finance/Human Resources, etc. Finance/Human Resources, etc. Customer Product Development Manufacturing Operations Manufacturing Operations Product Support Supplier Network

7 Nightingale - © 2000 Massachusetts Institute of Technology7 Enterprise Leadership is Key Element of Success LAI Aerospace Organizations Productivity Index Leadership Index

8 Nightingale - © 2000 Massachusetts Institute of Technology8 Transition to Lean Module Concept Transition to Lean Plan Priorities Sequence Key Enablers How-Tos Change Mgmt. Principles

9 Nightingale - © 2000 Massachusetts Institute of Technology9 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 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 Focus on the Value Stream Map Value Stream Internalize Vision Set Goals & Metrics Identify & Involve Key Stakeholders

10 Nightingale - © 2000 Massachusetts Institute of Technology10 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 What Does the Enterprise Level TTL Model Provide?

11 Nightingale - © 2000 Massachusetts Institute of Technology11 Enterprise Level Roadmap Entry/Re-entry Cycle Adopt Lean Paradigm Decision to Pursue Enterprise Transformatio n Enterprise Strategic Planning Long Term Cycle Focus on the Value Stream Develop Lean Structure & Behavior Create & Refine Transformation Plan Focus on Continuous Improvement Implement Lean Initiatives Initial Lean Vision Detailed Lean Vision Lean Transformation Framework Short Term Cycle Detailed Corrective Action Indicators Outcomes on Enterprise Metrics Environmental Corrective Action Indicators Enterprise Level Transformation Plan +

12 Nightingale - © 2000 Massachusetts Institute of Technology12 Adopt Lean Paradigm Build Vision Convey Need Foster Lean Learning Make the Commitment Obtain Senior Management Buy-in

13 Nightingale - © 2000 Massachusetts Institute of Technology13 Focus on the Value Stream Map Value Stream Internalize Vision Set Goals & Metrics Identify & Involve Key Stakeholders

14 Nightingale - © 2000 Massachusetts Institute of Technology14 Develop Lean Structure & Behavior Organize for Lean Implementation Identify & Empower Change Agents Align Incentives Adapt Structure & Systems

15 Nightingale - © 2000 Massachusetts Institute of Technology15 Create & Refine Transformation Plan Identify & Prioritize Activities Commit Resources Provide Education & Training

16 Nightingale - © 2000 Massachusetts Institute of Technology16 Implement Lean Initiatives Develop Detail Plans Implement Lean Activities

17 Nightingale - © 2000 Massachusetts Institute of Technology17 Focus on Continuous Improvement Monitor Lean Progress

18 Nightingale - © 2000 Massachusetts Institute of Technology18 Enterprise Level Roadmap 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 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 Focus on Continuous Improvement Monitor Lean Progress Nurture the Process Refine the Plan Capture & Adopt New Knowledge Implement Lean Initiatives Develop Detailed Plans Implement Lean Activities Initial Lean Vision Detailed Lean Vision Lean Transformation Framework Short Term Cycle Detailed Corrective Action Indicators Outcomes on Enterprise Metrics Environmental Corrective Action Indicators Enterprise Level Transformation Plan + Entry/Re-entry Cycle

19 Nightingale - © 2000 Massachusetts Institute of Technology19 Enterprise Level Roadmap The On-going Lean Enterprise Entry Enterprise Strategic Planning Long Term Cycle Focus on the Value Stream Develop Lean Structure & Behavior Create & Refine Transformation Plan Focus on Continuous Improvement Implement Lean Initiatives Detailed Lean Vision Lean Transformation Framework Short Term Cycle Detailed Corrective Action Indicators Outcomes on Enterprise Metrics Environmental Corrective Action Indicators Enterprise Level Transformation Plan + + Response to the voice of the customer

20 Nightingale - © 2000 Massachusetts Institute of Technology20 Common Discussion Framework Is Used Discussion of issues Six Interdependent Elements of Implementation Why What How Who When Where Enablers Barriers Related Case Studies Further Reference Material

21 Nightingale - © 2000 Massachusetts Institute of Technology21 Drilling Down to an Example of TTLs Content Enterprise Level Roadmap Discussion of issue Six Interdependent Elements of Implementation Enablers Barriers Related Case Studies Further Reference Material Why What How Who When Where The Discussion Outline Issues surrounding the task of Build Vision during the activity of Adopting the Lean Paradigm

22 Nightingale - © 2000 Massachusetts Institute of Technology22 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

23 Nightingale - © 2000 Massachusetts Institute of Technology23 Build the Vision Description Template TENSIONS Why Communicate lean enterprise-wide Why Communicate lean enterprise-wide What A lean vision What A lean vision How Learn from successful lean implementations How Learn from successful lean implementations Who The Enterprise Leader Who The Enterprise Leader When First step in TTL When First step in TTL Where Enterprise-wide Where Enterprise-wide

24 Nightingale - © 2000 Massachusetts Institute of Technology24 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?

25 Nightingale - © 2000 Massachusetts Institute of Technology25 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

26 Nightingale - © 2000 Massachusetts Institute of Technology26 Transition to Lean Module Concept Transition to Lean Plan Priorities Sequence Key Enablers How-Tos Change Mgmt. Principles

27 Nightingale - © 2000 Massachusetts Institute of Technology27 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 Operations Transition-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 Top Leadership Commitme nt Lean Roadma 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 7 Strive for Perfection IMPROVED COMPETITIVE POSITION Expand Internally/Externally ENTRY


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