Leading the Lean Enterprise Transformation
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At The Danaher Corporation, George Koenigsaecker led the lean transformations of both the automotive and tool groups. He also led The Hon Company’s successful lean conversion, which doubled productivity and tripled revenues, leading Industry Week to recognize HON on their list of the "World’s 100 Best Managed Firms." Written to help executives in determining right from wrong during a lean initiative, Leading the Lean Enterprise Transformation shows that lean is more about an approach than it is about tools. It presents the successful strategies and case histories of several key American leaders who have been instrumental in bringing lean to the forefront of various industries.Organized in the chronological sequence that a leader embarking on a lean journey would experience, this lively work:Describes the simple, yet powerful, True North metrics used by Toyota and describes how they drive every line item in the good directionExplains the use of value stream analysis at the leadership level Shows how to structure successful kaizen events that improve the value streamPresents tactical organizational steps necessary to sustain double-digit improvementsExplores the development of a corporate assessment and review structure in support of a lean transformationIntroduces leadership tools such as strategy deployment, transformation value stream analysis, and transformation plan of careLastly, the book discusses what may well be the least understood and most critical aspect of a lean transformation: the building of a lean culture. That ability is what separates the tactician from the technician. While many books exist that detail all the tools needed for a lean implementation, this book explains those tools needed at the enterprise level by executives, but more importantly it provides potential change agents with the skills to define, develop, and communicate a vision. It helps cultivate the willingness to innovate and learn by doing. Such a course is not for everyone, just leaders.
Acknowledgments ixIntroduction xiChapter 1 My Journey of Lean Learning: Eleven Corporate Transformations 1Deere & Company 1Rockwell International 3Jake Brake (Danaher) 4HON Company 7Summary 8Chapter 2 What Is Lean? 9What Toyota Does 9Two Pillars 10Identifying and Removing Waste 10A Problem-Identifying and Problem-Solving System 13Summary 15Notes 15Chapter 3 Measurement Can Be Easy 17Understanding Financial Measures: Personal Examples 17Toyota's True North Metrics 18How High Is High? 20The Four True North Metrics in Detail 26Quality Improvement 26Delivery/Lead Time/Flow Improvement 28Cost/Productivity Improvement 31Outside Purchases 31People 31Human Development 33Linking the True North Metrics with Financial Measures 35Summary 37Notes 38Chapter 4 Value Stream Analysis Provides the Improvement Plan-And Kaizen Events Make It Happen 39Taking a Walk to Create an Initial-State VSA 40Initial-State VSA and the True North Metrics 41Helping You See the Waste 41Brainstorming to Create an Ideal-State Value Stream 43Creating a Future-State Value Stream 43Improvement Goals 44Work Plan and Responsibilities 48The Rule of 5X 48A Model Value Stream 54The Power of Weeklong Kaizen Events 56Summary 61Notes 61Chapter 5 Tactical Organizational Practices 63The n/10 Rule 63Designing Improvement Teams 66Key Event Failure Mode 68The 3 Percent Guideline 69Administrative Teams 73Redeployment 75Other Lean Training 76Summary 77Chapter 6 Strategic Organizational Practices 79Understanding Governance 79Immersion 80Guiding Coalition 81Communication84Lean Simulation 85Strategy Deployment 85Antibodies 87Lean Year by Year 90Year One 90Year Two 91Year Three 91Year Four 92Summary 92Chapter 7 Building a Lean Culture 93Defining Culture 94The Building Blocks of Lean/Toyota Culture 96Serve the Customer 97Seek What's Right, Regardless 97Decide Carefully, Implement Quickly 97Candidly Admit Imperfections 98Speak Honestly and with Deep Respect 99Go See and Listen to Learn (Genchi Gembutsu) 99Deliver on Meaningful Challenges 100Be a Mentor and a Role Model 101The Action Plan 102Giving Your Leadership Team Personal Experience 102Daily Improvement 104Challenging Your Team to Build Knowledge 105Summary 106Author's Note 107Notes 108Index 109The Author 121
