Enterprise Transition to

Lean
Roadmap

Lean
Aerospace
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 organizations readiness
tochange?

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

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)

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

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

Enterprise Leadership is Key

Element of Success
LAI Aerospace Organizations

Productivity
Index

Leadership Index

Transition to Lean Module Concept

Priorities
Sequence
Key Enablers
How-Tos
Change Mgmt.
Principles

Transition to
Lean Plan

Enterprise Level Roadmap

Conceptual Framework
What
Whatisisthe
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

Enterprise Level Roadmap

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

Enterprise Level Roadmap

Long Term Cycle

Entry/Re-entry
Cycle
Adopt Lean
Paradigm

Decision to
Pursue
Enterprise
Transformatio
n
Enterprise
Strategic
Planning

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

Enterprise
Level
Transformation
Plan

Adopt Lean Paradigm

Build Vision
Convey Need
Foster Lean Learning
Make the Commitment
Obtain Senior Management Buy-in

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

Implement Lean Initiatives

Develop Detail Plans

Implement Lean Activities

Focus on Continuous Improvement

Monitor Lean Progress

Enterprise Level Roadmap

Long Term Cycle

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

Develop Lean Structure &

Behavior

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

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

Enterprise
Level
Transformation
Plan

Enterprise Level Roadmap

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

Entry
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

Detailed
Lean
Vision

Develop Lean Structure &

Behavior

Detailed
Corrective Action
Indicators

Create & Refine

Transformation Plan

Implement Lean Initiatives

Enterprise
Level
Transformation
Plan

Common Discussion Framework Is Used

Discussion of issues
Six Interdependent Elements of Implementation
What
What
Why
Why

Who
Who

When
When

How
How

Where
Enablers
Where
Barriers
Related Case Studies
Further Reference Material

Drilling Down to an
Example of TTLs Content
Enterprise Level Roadmap

The Discussion Outline

Discussion of issue
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

Issues surrounding the task

of Build Vision
during the activity of
Adopting the Lean Paradigm

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?

Build the Vision Description Template

TENSIONS
What
What
AAlean
leanvision
vision
Why
Why
Communicate
Communicatelean
lean
enterprise-wide
enterprise-wide

Who
Who
The
Enterprise
The EnterpriseLeader
Leader

When
When
First
Firststep
stepininTTL
TTL

How
How
Learn
Learnfrom
fromsuccessful
successful
lean
implementations
lean implementations

Where
Where
Enterprise-wide
Enterprise-wide

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?

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

Transition to Lean Module Concept

Priorities
Sequence
Key Enablers
How-Tos
Change Mgmt.
Principles

Transition to
Lean Plan

Production Operations
Transition-To-Lean Roadmap
Supply Chain/External Environment

Legal
Environmental
Financial
Information
Phase 0
Adopt Lean
Paradigm
Build
Build vision
vision
Establish
Establish need
need
Foster
Foster lean
lean
learning
learning
Make
Make the
commitment
commitment
Obtain
Obtain Sr.
Mgmt.
Mgmt. buy-in
buy-in

ENTRY

Enterprise / Production System Interface

Procurement
Engineering
Phase 1

Top
Leadership
Commitme
nt

Prepare
Integrate
Integrate with
with
Enterprise
Enterprise
Level
Level
Establish
Establish an
an
Operations
Operations
Lean
Lean
Implementation
Implementation
Team(s)
Team(s)
Develop
Develop
implementation
implementation
strategy
strategy
Develop
Develop aa plan
plan
to
to address
address
workforce
workforce
changes
changes
Address
Address Site
Site
Specific
Specific
Cultural
Cultural Issues
Issues
Train
Train key
key
people
people
Establish
Establish target
target
objectives
objectives
(metrics)
(metrics)

Expand
Internally/Externally

Government Reqd. Systems

(MMAS, EVMS, etc.)

Lean
Roadma
p

Phase 2
Define
Value
Select
Select initial
initial
implementation
implementation
scope
scope
Define
Define
customer
customer
Define
Define value
value Quality,
Quality,
Schedule,
Schedule, and
and
Target
Target Cost
Cost

Optimize
Optimize quality
quality
Institutionalize
Institutionalize 5S

Quality
Safety
Phase 3
Identify
Value Stream
Record
Record current
current
state
state value
value
stream
stream
Chart
Chart product
product
and
and
information
information
flow
flow
Chart
Chart operator
operator
movement
movement
Chart
Chart tool
tool
movement
movement
Collect
Collect
baseline
baseline data
data

Training and Human Resources

Workforce/Management Partnership
Phase4
Phase5
Phase 6
Design
Implement Total
Production System
Implement Flow
System Pull
Achieve
Select
Develop
Achieve process
process
Select
Develop aa future
future
control
appropriate
state
control
appropriate
state value
value
Implement
production
stream
Implement TPM
production
stream map
map
Implement
system
Identify
Implement selfselfsystem control
Identify takt
takt time
time
inspection
mechanism
requirements
inspection
mechanism
requirements
Eliminate/
Strive
Review
Eliminate/
Strive for
for single
single
Review
reduce
item
make/buy
reduce waste
waste
item flow
flow
make/buy
Cross
Level
decisions
Cross train
train
Level and
and
decisions
workforce
balance
Plan
workforce
balance
Plan new
new layout
layout
Standardize
production
Integrate
Standardize
production flow
flow
Integrate
operations
Link
suppliers
operations
Link with
with
suppliers
Reduce
suppliers
Design
Reduce set-up
set-up
suppliers
Design visual
visual
times
Draw
control
times
Draw down
down
control system
system
Mistake
inventories
Estimate
Mistake proof
proof
inventories
Estimate and
and
processes
Re-deploy
justify
processes
Re-deploy
justify costs
costs
Implement
people
Plan
Implement cell
cell
people
Plan TPM
TPM
layout
Re-deploy/
system
layout
Re-deploy/
system
Implement
dispose
Implement
dispose assets
assets
visual
visual controls
controls

Phase 7
Strive for Perfection
Team
Team development
development
Institute Kaizen events
Remove
Remove system
system barriers
barriers

Expand
Expand TPM
Evaluate against
target
target metrics
metrics

Evaluate progress
using lean maturity
matrices
matrices
IMPROVED COMPETITIVE
POSITION