LESAT Actions in IndustryMIT LAI Enterprise Tea

Hallam, Cory R. A.

DSpace@MIT

Research Sponsored By MIT LAI Enterprise TeamLESAT Actions in IndustryMarch 27, 2002Enterprise Value:The New Lean HorizonPresented By:Cory R. A. HallamMassachusetts Institute of Technology2 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduPresentation Overviewâ Observations from Beta testsâ Introduction to Beta test follow-up studyâ Classes of enterprise using LESATâSuccessfulâUnsuccessfulâ 3 categories of management feedback controlâ Acting on LESAT resultsâ Perceived cost/benefit of LESATâ Emergent needsâ Conclusions3 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduObservations from LESAT BetaTestsâ Significant progress in manufacturing and supplychain integration, but just beginning to addressother enterprise processesâ Lean progress sometimes reaches a plateau due tolow maturity in section I (Leadership) and section III(Enabling Infrastructure)â Differences in perception are often disclosedbetween management layersâ Variability in LESAT rating across enterpriseassessors is a revealing indicator of issues inexecutive team communication4 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduIntroduction to StudyâDevelop an understanding of how LESAT is(or is not) a part of management controlâ10 LESAT beta test sitesâPost-assessment interviews about LESAT-driven action plans5 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduClasses of Enterprise UsingLESATâSuccessfulâBusiness unitâDivisionâProgramâSiteâP&LâUnsuccessfulâSupport functions as enterprisesâBut Section I of LESAT applicable6 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.edu3 Categories of FeedbackControlâ Category 1 - Open Loop AssessmentEnterpriseImprovementPlanLeadershipDesiresOutputLESATResources7 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.edu3 Categories of FeedbackControlâ Category 2 - Dissociated Assessment, Closed LoopControlEnterpriseOtherImprovementPlanLeadershipDesires (a)OutputLESATResourcesLESATImprovementPlanLeadershipDesires (b)8 - Enterprise Team - C. Hallam  - 032602 '  2002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.edu3 Categories of FeedbackControlâ Category 3 - Integrated Strategy and Assessment,Closed-Loop ControlEnterpriseImprovementPlanLeadershipDesiresOutputLESATResourceså9 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduActing On LESAT Results â Performed assessment, no action takenâ Arbitrarily mandate 1 point improvement across theboard in 1 yearâ Fix numbers to look better to upper management10 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduActing On LESAT Results â Address practices with lowest maturityâ Address practices with largest maturity variabilityâ Address lowest maturity in leadership section firstâ Cross reference lowest maturity practices tobusiness strategyâ Integrate improvement actions into AnnualOperating Plans (AOP)â Perform annual LESAT, aim for continual(incremental) increase in maturity11 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduPerceived Cost/Benefit ofLESATâProsâAssessment process is as valuable as resultsâIncreased executive communicationâCreation of common vocabularyâIdentify and support those who need educationâOpen identification of enterprise-level issuesâClear picture of lean maturity of enterpriseâNext level of lean maturity obvious12 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduPerceived Cost/Benefit ofLESATâConsâ4-6 hours for intro session, rating, and report outâAdditional resources to conduct the assessmentand deal with logistics and dataâMigration actions to next maturity level areunclearâStarting point of improvement efforts is unclearâCoordinating executives is difficult13 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduEmergent NeedsâEnterprise Education and CurriculumâLESAT communication, sharing, and refinementâEnterprise-level decision aids and tools14 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduEnterprise Educationâ Formal concept of the “Lean Enterprise”â Enterprise Transition to Lean (TTL) trainingâ LESAT facilitator trainingâ Emphasis on:âExecutive educationâEnterprise-levelâWorkshopsâCourses15 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduLESAT Communication,Sharing, and Refinementâ Continued sharing of best practices and LESATexperiences across consortiumâ Assistance for new LESAT usersâ Continuing interaction between MIT and LESATusersâUpdate LESAT with knowledge learnedâIdentify research/development needsâ Electronic LESAT (real-time analysis)16 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduEnterprise Decision Aids andToolsâ Enterprise Metricsâ Value-based metricsâ Need for balanced scorecard in aerospace industryâ Multiple stakeholder optimization approach forsustainabilityâ Diagnostic Tools/Decision Aids for LESAT usersâ Maturity level analysis and interpretationâ Prioritization of action plansâ Cost/benefit knowledge for maturity level improvementsâ Simulation tools for high-leverage actions17 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduEnterprise Decision Aids andToolsâ Enterprise-level transformation methodologiesâ LESAT section I linked to TTLâ Section II and III are need to be linked to LEM and othertoolsâ Case studies on lean aerospace enterprise transformation(outcome measures)18 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduConclusionsâ Transformation is a continuous process that takesyearsâ LESAT acts as a “sensor” for closed-loop leanenterprise management controlâ LESAT users fall into 3 Categories of EnterpriseManagementâ Open Loopâ Closed-Loopâ Fully Integrated Closed-Loopâ Significant investment of time deemed worthwhileâ Increases understanding of the lean enterpriseâ Sustainable transformation successes will beclosely linked to Category 3 enterprises19 - Enterprise Team - C. Hallam  - 032602 © 002 Massachusetts Institute of TechnologyLeanAerospaceInitiativehttp:\\lean.mit.eduQuestions?Contact InformationCory R. A. Hallamcoryh@mit.edu781-643-0245

Enterprise Value: The New Lean Horizon

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Enterprise Value: The New Lean Horizon

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