Taking Lean to the Enterprise

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Louis Farinola of General Motors Corporation shown at the Lean Service Summit on 23rd June 2004 ran by the Lean Enterprise Academy

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Taking Lean to the Enterprise

  1. 1. 1 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement TakingTaking LeanLean Enterprise - A Project Review Enterprise - A Project Review to theto the Louis Farinola Director GM-Global Manufacturing System
  2. 2. 2 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Project Review Agenda • Getting Started – Integration vs. “Program of the Month” – Preparing the Team – Standardizing the Approach • Project Reviews – Purpose – Maps – Results – Learnings • List of additional projects • Suggestions for How to Get Started
  3. 3. 3 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Integration vs. “Program of the Month”
  4. 4. 4 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement
  5. 5. 5 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement In Manufacturing, the Global Manufacturing System is “the method” for achieving superior business performance in all measures: • Safety • People • Quality • Responsiveness • Cost
  6. 6. 6 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement NonNon--ManufacturingManufacturing •• EngineeringEngineering •• VSSMVSSM •• HRHR •• WWPWWP GMSGMS •• 5 Principles5 Principles •• 33 Elements33 Elements GMSGMS •• 5 Principles5 Principles •• 33 Elements33 Elements •• Vehicle Mfg.Vehicle Mfg. ••PowertrainPowertrain Manufacturing
  7. 7. 7 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement “Expanding GMS to the Enterprise” • Established that the only difference between Mfg. And Office Lean was that the fact that the processes were not as visible • Introduced Value Stream Mapping as a “tool” within the GMS Toolbox that would make the office processes visual • Used GMS language throughout and retained the notion of increasing value while while we worked to eliminate waste. • Identified 6 GMS elements as “foundational” to implementing lean principles in the office.
  8. 8. 8 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Foundational Elements of GMS in the Office • Business Plan Deployment • Simple Process Flow • In Process Control and Verification • Standardized Work • Workplace Organization • People Involvement (level schedules) (Andon) (Shop Floor Management)
  9. 9. 9 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Preparing the Team
  10. 10. 10 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Preparing the Team - Selection 13 Functional Implementation Leaders – Design – Vehicle Engineering – Powertrain Engineering – Manufacturing Engineering – Manufacturing Support – Vehicle Sales Service & Marketing – Planning – Quality – Purchasing – Human Resources – Information systems – Legal – Finance
  11. 11. 11 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Preparing the Team Training-Week One Monday • Introductions • GMS Overview • Simulated Work Environment •Debrief Tuesday •Learn by Doing: Conduct a Plant project using the Value Stream Mapping Tool Wednesda y •Finish Project •Present to Future State Proposal to Plant Leadership •Debrief Thursday •Learn by Doing: Conduct an Office project using the Value Stream Mapping Tool Friday •Finish Project •Present to Future State Proposal to Office Leadership •Debrief
  12. 12. 12 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Simulated Work Environment
  13. 13. 13 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Preparing the Team Training-Week One Monday • Introductions • GMS Overview • Simulated Work Environment •Debrief Tuesday •Learn by Doing: Conduct a Plant project using the Value Stream Mapping Tool Wednesda y •Finish Project •Present to Future State Proposal to Plant Leadership •Debrief Thursday •Learn by Doing: Conduct an Office project using the Value Stream Mapping Tool Friday •Finish Project •Present to Future State Proposal to Office Leadership •Debrief
  14. 14. 14 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Preparing the Team – Training Weeks Two and Three • Week Two – Develop Process and Materials – To Identify and scope projects – To Facilitate GMS Projects – To Develop implementation plans • Week Three – Learning by Doing – Participated in Vehicle Engineering Interiors project – Debriefed learnings and implemented countermeasures – Created a project plan – Completed a war room template
  15. 15. 15 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Standardizing the Approach
  16. 16. 16 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Implementation 90 days or less - Establish Review sessions (up to 4) - Measure Results to bottom line - Update War Room Scoping 4 sessions completed at least 1 wk prior to workshop to define the project scope Workshop 3 days - Day 1: Training & Current State - Day 2: Training & Future State & Leadership Panel - Day 3: Implementation Planning & Leadership Panel GMS Project Structure
  17. 17. 17 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Objectives Timing Owner Methods Status Targets Business Plan Deployment
  18. 18. 18 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Functional Implementation War Room 3GM ConfidentialWar Room 4-7-03 Individual Project Tracking Wall Overall Layout Team Selection Criteria GMS Project Plan Current State Map Future State Map Approved Changes Kaizen Bursts Project BPDs Metrics Measures Overall Status Countermeasures PLAN DO CHECK ACT Picture/ Powerpoint Map or Scroll Picture/ Powerpoint Map or Scroll Sponsor Owner Team Leadership Panel Why was this project selected Plan from Pre-scoping through Workshops Listing of Kaizen Projects Listing of Changes Approved By Leadership Panel BPD Forms for Implementation BPD Forms for Implementation BPD Forms for Implementation BPD Forms for Implementation Metric /Target/Status G Countermeasure Countermeasure Countermeasure Countermeasure Project Title
  19. 19. 19 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement Example Projects by Function Design/Pre-Production Process Interior Design Process Trans. Shift Algorythm Development Process Air Quality Permitting Process Die Development Process Dealer Communication Process Research Acquisition Process Warranty Analysis Reporting Process Tooling Purchasing Process New Hire Process Appropriation Approval Process Outside Legal Retention Process Hourly Timekeeping Process • Design • Vehicle Eng. • Powertrain Eng. • Mfg. Eng. • Mfg. Support • Sales • Planning • Quality • Purchasing • H.R. • I.T. • Legal • Finance
  20. 20. 20 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement What Have We Learned about Applying “Lean” in the Office? • GMS Principles apply throughout the enterprise • Value Stream Mapping is the right tool – Technically – Psychologically • There is an absence of standardized work and clear performance metrics in every function • There is often no owner for the entire value stream • Customer requirements are not known or are unclear • Handoffs, even within functions, are a source of waste • First Time Quality in the office is extremely low • We have a lot more to learn!
  21. 21. 21 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement So How Can You Get Started? • Learn about Lean – Read Lean Thinking – Read Learning to See • If you are a leader, get personally engaged in a project with your staff, at least as a sponsor – Ask a sensei to help (internal or external) – Find out for yourself that it works – Determine how to integrate the process into your current approach to lean • Challenge the organization to make significant improvement • Develop internal resources (coaches) • Expand the process throughout the enterprise (let the results sell it)
  22. 22. 22 GM-GMSGM-GMS ContinuousContinuous ImprovementImprovement StandardizationStandardization Built-In-QualityBuilt-In-Quality ShortShort Lead TimeLead Time PeoplePeople InvolvementInvolvement What’s in it for you? • Higher Quality Products • Lower Operating Costs • Faster to Market • Excited Employees

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