Professional Documents
Culture Documents
Outline
LESAT Architecture and Practices
Assessment Process
Case Studies Discussion
Assessment Results
Transformation Insights
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 2
To-Be Vision
Page 3
What Is LESAT?
Tool for executive
self-assessment of
the present state of
leanness of an
enterprise and its
readiness to change
As
s
es
sm
e
nt
M
atr
ix
World
Class
Capability
maturity
model
Supporting
materials
Page 4
Page 5
Process Architecture
View of Lean Enterprise
Enabling Infrastructure
Processes
Enterprise Leadership
Processes
Page 6
Section II
Section III
Lean
Life
Enabling
Transformation
Cycle
Infrastructure
/ Leadership
Processes
Processes
Processes
Enterprise Leadership
Processes
Page 7
Level 5
Level 4
Level 3
Level 2
Level 1
Page 8
Page 9
Enterprise Level
Section I
Section I:
Lean Transformation/Leadership
Strategic integration
Leadership and commitment
Value stream analysis and balancing
Change management
Structure and systems
Lean transformation planning,
execution and monitoring
Page 10
Enterprise Level
Roadmap
I.B
I.B
Entry/Re-entry
Cycle
Decision to
Pursue
Enterprise
Transformation
I.A
I.A
Adopt Lean
Paradigm
Build Vision
Convey Urgency
Foster Lean Learning
Make the Commitment
Obtain Senior Mgmt.
Buy-in
I.C
I.C
Initial
Lean
Vision
Detailed
Lean
Vision
+
Environmental
Corrective
Action Indicators
I.G
I.G
Enterprise
Strategic
Planning
Focus on Continuous
Improvement
Detailed
Corrective Action
Indicators
I.F
I.F
I.E
I.E
Lean
Transformation
Framework
+
Implement Lean Initiatives
Develop Detailed Plans
Implement Lean Activities
Enterprise
Level
Transformation
Plan
Page 11
LESAT Section I
28 Lean Practices
I.A. Enterprise Strategic Planning
Page 12
Level 2
Level 3
Level 4
Level 5
Page 13
LESAT Section II
Section II: Life Cycle Processes
Assess:
Enterprise level core processes
Acquisition
Program Management
Requirements Definition
Product/Process Development
Supply Chain Management
Production
Distribution and Support
Page 14
Develop
Product
Produce
Product
Service
Product
Dispose/
Update
Product
Page 15
LESAT Section II
18 Lean Practices
Page 16
Level 2
Level 3
Level 4
Level 5
Page 17
Finance
Information Technology
Human Resources
Environmental Health & Safety
8 Lean Practices
Lean Organizational Enablers
Lean Process Enablers
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 18
Page 19
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Outline
LESAT Architecture and Practices
Assessment Process
Case Studies Discussion
Assessment Results
Insights
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 21
Page 22
Page 23
Capability Level
Gap
Current Capability
Page 24
Ground Rules
Perform the assessment from a total enterprise
perspective, NOT individual functional area
Attempt to assess every practice; leave blank if N/A or
if you dont know
Scoring the practices
Page 25
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
Transformation
Enterprise
Strategic
Planning
Are
enterprise
leaders familiar with the dramatic increases in competitiveness that many companies have
Nurture the Process
Commit Resources
realized as a result of transitioning to lean?
Refine the Plan
Provide Education & Training
Has a suitable strategy for growth been identified to utilize resources freed up by improvements?
Capture & Adopt New Knowledge
Lean Indicators
Lean implementation is included explicitly in the enterprise strategic plan.
Enterprise
Results of
lean implementation impact
future strategic planning.
PROGRAM:
Outcomes on
Implement Lean Initiatives
Level is strongly influenced by stakeholders and customers value.
Strategic planning
Enterprise
Section
I.A:
Lean Transformation / Leadership
LP
Lean
Capability
Levels
Transformation
Develop Detailed
Plans
Metrics
#
Level 1
Level 2
Level 3
Level 4
Level 5
Practices
Plan
ImplementA.1
Lean Integration
Activities
be completed by
Strategic plans
leverage
Lean is recognized butObjective
The business growth
Transitioning to lean
Concepts and benefits
of
Impacts
/ Issues (to
responsible per son)
relegated to lower
implications of lean are adopted as a key
of lean principles and
the results of lean
Lean in Strategic
The understood
decisionand
tolean
pursueenterprise
a lean strategy
transformation
is Imtopact:
levels & is fragmented
and
practices are not
implementation
Planning Process
implementation
plans Its impact
is includedthroughout
in strategic
evident in culture or
achieve
strategic
in nature.
the growth,
Initial
Lean
Vision
Focus on
Customer Value
Customers pull value
from enterprise value
stream
A.3
Leveraging the
Extended
Enterprise
Value stream extends
from customer through
the enterprise to
suppliers
business plans
Means of defining
value to customer(s) is
informal &
unstructured
Relations with
customers and suppliers
reflect a "We-They"
mentality
well defined
Initial opportunities
Strategic planning
identified for
process explicitly
establishing extended Responsibility:
includes consideration
enterprise linkages
of key stakeholders in
value streams
predominant driving
force throughout the
extended enterprise
Success Criteria
Integration of the
extended enterprise
contributes to
innovation, growth,
increased profitability
& market position
Major Milestones
Task
01
02
1 2 3 4 1 2 3 4
Page 26
Outline
LESAT Architecture and Practices
Assessment Process
Case Studies Discussion
Assessment Results
Insights
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 27
Outline
LESAT Architecture and Practices
Assessment Process
Case Studies Discussion
Assessment Results
Insights
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 28
(Lagging Indicators)
Customer focus of Sec
II creates
Customer
Customer Value
Value
Enterprise Leadership
Processes
(LESAT Section I)
Reduced waste in
Sec II & III cuts
costs and creates
Financial
Financial Value
Value
Employee
Employee Value
Value
Page 29
Enables
Leads,
Enables
Enabling Infrastructure
Processes
(Support LCPs)
Leads,
Enables
Enterprise Leadership
Processes
(Drive Lean Change)
Page 30
4.0
y = 0.9666x + 0.2881
R2 = 0.6237
3.5
3.0
2.5
Leads,
Enables
2.0
Enables
Leads,
Enables
Enabling
Infrastructure
Processes
(Support LCPs)
Enterprise Leadership
Processes
(Drive Lean Change)
1.5
1.0
1.0
1.5
2.0
2.5
3.0
Page 31
3.0
2.5
2.0
Leads,
Enables
Enables
Leads,
Enables
1.5
Enabling
Infrastructure
Processes
(Support LCPs)
Enterprise Leadership
Processes
(Drive Lean Change)
y = 0.7458x + 0.7466
R2 = 0.6438
1.0
1.0
1.5
2.0
2.5
3.0
Page 32
4.0
y = 1.0779x - 0.2044
R2 = 0.6699
3.5
3.0
Leads,
Enables
2.5
Enables
Leads,
Enables
2.0
Enabling
Infrastructure
Processes
(Support LCPs)
Enterprise Leadership
Processes
(Drive Lean Change)
1.5
1.0
1.0
1.5
2.0
2.5
3.0
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Categories of Enterprise
Management
LSM2 - Lifecycle Process Average Lean Maturity
LSM2 - Lifecycle Process Average Lean Maturity
4.0
4.0
3.5
3.5
Integrated
Closed
Loop (C) CC
y = 0.966 6x + 0.288 1
y = 0.966 6x + 0.288 1
R 2 2= 0.6237
R = 0.6237
Dissociated
Closed
Loop (B) B
3.0
3.0
B
Open
Loop
(A)
2.5
2.5
2.0
2.0
1.5
1.5
A
A
B
B BC
C
A B
AB
B
A
B A
B
A
B B
A A B
B
B
A
A
A
B
A
A
B
A
A
B
B
A
A
B
A
A
B B
C
C
C
C
B
B
1 .5
2.0
2 .5
1 .5
2.0
2 .5
LSM 1 - Leadership/Tra nsform ation Ave rage Le an Maturity
LSM 1 - Leadership/Tra nsform ation Ave rage Le an Maturity
3.0
3.0
Page 35
Outline
LESAT Architecture and Practices
Assessment Process
Case Studies Discussion
Assessment Results
Insights
ESD.61J / 16.852J: Integrating the Lean Enterprise
Page 36
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