LAI Annual Conference presentation, Baltimore, Marylan

Roth, Dr. George

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Merging Lean and Six Sigma Programs to Realize Enterprise Excellence LAI Annual Conference, Baltimore, MarylandDr. George Roth, ChairMassachusetts Institute of TechnologyApril 1, 2009web.mit.edu/lean © 2009 Massachusetts Institute of Technology   George Roth / 1 April 2009 - 2Merging Lean & Six Sigma Programs AgendaThese materials spans two breakout sessions:1:30 to 3:15: Presentations• Overview and framing (5 min)• Company program updates (10 min ea.)• History time line of the LSS program, corporate program design (methods, staff, training, certification, resources, assessment), and linkage(s) to corporate strategy• Deployment illustration (mini case that illustrates program in its results) 3:45 to 5:30: Q & A Panelhttp://lean.mit.edu© 2009 Massachusetts Institute of Technology   D. Nightingale 04/01/2009- 3LAI Research Agenda: Groups Address Grand QuestionsFOCUS of RESEARCH• ESE Approaches• SE Effectiveness Indicators• Studies of ESE Practices (with MITRE)1.How can I understand the way my organization currently operates within its larger context?2.How can I define and evaluate the future possibilities for a more efficient and effective enterprise?3.What are the most effective strategies and tactics to achieve these future possibilities for my enterprise? 4.How can I best manage the enterprisechange process?FOCUS of RESEARCH• Enterprise Value Analysis • Enterprise Architecting• IT as Enterprise Enabler • Enterprise Cost and Metrics• Enterprise ModelingFOCUS of RESEARCH• Lean Product Development • Lean Systems Engineering• Lean SoftwareFOCUS of RESEARCH• Change Management• Enterprise Change Philosophy• Studies of Successful Change• Distributed LeadershipEA-ET Enterprise Architecting - Enterprise TransformationECM Enterprise Change ManagementESE Enterprise Systems EngineeringLEPD Lean Enterprise Product Developmentweb.mit.edu/lean © 2009 Massachusetts Institute of Technology   George Roth / 1 April 2009 - 4Lean Enterprise ChangeWhat does it take?… capabilities in each of the following areas1. Rethinking organizational boundaries• Long-term system view that includes relationships across units and with suppliers and customers as a common value stream2. Installing sets of innovations• Complementarities of changes beyond process improvement3. Pulling and pushing change• Based on deeper cultural assumptions that enable a virtuous learning process within a “community of scientists”4. Seeking growth opportunities• The positive vision for continual renewal5. Distributing leadership• Interdependent roles in a system of leadershipCalling these the “five capabilities for en erprise change”Company  - organizational level and change  Summary Case Study Timeframe Garden State Tanning Plant case on leather automobile seats  (Liker 1999)  Had fallen several months behind in production; first US supplier taught lean by Toyota engineers 4 years (1992-1995) Delphi Saginaw Plant level case on automobile steering columns (Liker 1999) Plant produced only for General Motors (GM), but because of quality and cost problems, GM was considering finding another supplier 7 years (1991-1997) Donnelly (Grand Haven)  Plant level case on automobile mirrors (Liker 1999)  Plant was launched to serve Honda, but subsequent delivery, cost and quality issues threaten Honda’s business 2 years (1996-1997) Freundenberg NOK  Company (multi-plant) case on automotive rubber and plastic parts (Liker 1999, Womack and Jones 1996) Business was barely profitable and lean was seen as the way to become more profitable   5 years (1992-1996) Western Geophsyical One production line producing underwater cables (Liker 1999) Cables produced by Western Geophysical (WG) then used by WG service crews; poor quality and lead times were hampering the success of service crews 5 years (1991-1995) Cedar Works Company (two plant) case on bird houses and animal feeders (Liker 1999) Experiencing exponential growth, the small company could not keep up with demand 5 years (1993-1997) Lantech Plant level case on pallet wrapping machines (Womack and Jones 1996) The key patent of this founder-led company had just expired and the company faced competition for the first time 4 years (1991-1994) Wiremold Main company plant producing wire management systems (Womack and Jones 1996) Rising costs struck the once-profitable company; Art Byrne, who had previously learned lean from Japanese experts, took over 6 years (1991-1996) Pratt & Whitney Plant level case on aircraft engine production (Womack and Jones 1996) Competition with General Electric and Rolls Royce was heightening; fell behind in engine market for single-aisle commercial jets 5 years (1991-1995) United Electric Controls  Plant level case on control and sensor production  (Ryckebusch 1996)Long lead times and high costs led to a record loss in 1987; a  new VP of manufacturing, Bruce Hamilton, was appointed 10 years (19871996) Gelman Sciences Plant level case on microfilter production  (Liker 1999)  Did not want to fall behind the competition as US auto manufacturers had; adopted lean to become more generally competitive 5 years (1993-1997) Porsche Assembly plant case (Womack and Jones 1996) The strengthened Deutschemark led to decreased sales to its largest market – North America; sales  plummeted 6 years (1992-1997) Raytheon & PavewayWarner Robins ALCRockwell CollinsAriens CompanyCol. Guinn succeeded by Col. Swenson30 August 2005HMMMV flow line operationalMay 2005Lean launched on HMMMV RECAP programMarch 2005$2.5 million total in refunds to Patriot & Avenger Reset programsAugust 2004$0.99 million refund check on SOCOM GMVsFebruary 2004$1.3 million refunds to Patriot RECAP programSeptember 2003Lean launched on 3 other Patriot programsFeb-Oct 2003Lean launched at LEAD on Patriot RECAP program*October 2002Col. Guinn joins as Commander LEAD18 July 2002LetterkennyArmy DepotFinance case1. Leadership  developments at Letterkenny Army Depot (“LEAD”).Cases builds off introduction of lean into Patriot missile recapitalization.2. LEAD’s context: its work and the Army’s budget process.3. LEAD’s finance innovations.4. Extended enterprise implications of LEAD’s innovations.Research onLeanResearch onEnterpriseResearch onChangeweb.mit.edu/lean © 2009 Massachusetts Institute of Technology   George Roth / 1 April 2009 - 5Rethinking boundariesInstalling innovation setsPulling & pushing changeSeeking growthDistributing leadershipCapabilities for Enterprise Lean ChangeCapabilities…• are resources, talents, and abilities of an organization and its people• that have the potential for development and use, and in their use, • create expected outcomes while further developing themselvesThe system of change ~ leads to a ~lean enterprise systemweb.mit.edu/lean © 2009 Massachusetts Institute of Technology   George Roth / 1 April 2009 - 6Examining Enterprise Improvement & ChangeMulti-enterprise change requires attention to four levels:1) efforts and results in the local organization, 2) integrity and coherence of local organization efforts with enterprise changes, 3) alignment of local to enterprise efforts, and 4) accommodation of external factors found in the broader environment.Source: “Lean Enterprise Change at Warner Robins ALC” Case Study, June 1, 2006web.mit.edu/lean © 2009 Massachusetts Institute of Technology   George Roth / 1 April 2009 - 7BAE Systems Nicole Marin Boeing Jan Martinson Lockheed Martin Gerald Boisvert Northrup Grumman Mary Anne Jones Pratt & Whitney/UTC Ida Gall Raytheon Mark Edmondson Textron Systems Geoff Bentley 1:30 to 3:15: Presentationsweb.mit.edu/lean © 2009 Massachusetts Institute of Technology   George Roth / 1 April 2009 - 83:45 to 5:30: Q & A with panel Merging Lean and Six Sigma Programs BAE Systems Nicole MarinBoeing Jan Martinson Lockheed Martin Gerald BoisvertNorthrup Grumman Mary Anne JonesPratt & Whitney/UTC Ida Gall Raytheon Mark Edmondson Textron Systems Geoff Bentley Geor e RothQ & A process:• Start with submitted questions• Open to audience• Closing comments from panel (starting @ 5:15)P a n e l

Merging Lean and Six Sigma Programs to Realize Enterprise Excellence

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Merging Lean and Six Sigma Programs to Realize Enterprise Excellence

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