How can IT support a Lean Transformation?

Daniel T Jones,

The Lean Enterprise Academy

22-23 November, 2012 Paris, France

How can IT support a

Lean Transformation?

Daniel T Jones

The Problem

The challenges in managing and transforming

organisations are common

Explore the contributions of three perspectives

the IT folks > the Lean folks > the CEO

using the 5 Lean Principles

What does this tell us about Lean

Transformation and the Lean Enterprise?

Value

IT – think forward from the capabilities

of the technology

Lean – think back from the circumstances

of the customer/user

CEO – grow sales through better

products/service – today and tomorrow

Value Streams

IT – model, simulate and automate

the system

Lean – understand the context for actions

to unblock the flow of value creation

CEO – see why it is broken and takes too long

where to focus improvements

and how to design the future

Flow

IT – optimise activities and standardise

through compliance

Lean – develop the capabilities to stabilise

the work and improve the flow

CEO – free up cash by compressing

order to cash and time to market

Pull

IT – vertical communications to control

the use of resources

Lean – horizontal communications to align

the work with the rate of demand

CEO – reduce cost by needing less capacity

to meet demand

Perfection

IT – changes are designed and implemented

by experts

Lean – everyone is engaged in creating value

and improving their work

CEO – reduce the capital required for

future investments

A Lean Management System

Direction Focus Top Vital Few

Aligning Hoshin

Enabling Oobeya

The Value Stream

Stability Plan/Actual

Problems Gemba Kaizen

Stability Plan/Actual

Problems

Stability Plan/Actual

Problems

Stability Plan/Actual

Problems

Stability Plan/Actual

Problems

Fu

nctio

n Value Stream

End-to-End VS Analysis

Lean Transformation

Solve specific business problems

By developing the capabilities

To improve the flow of work

Enabled by leaders showing clear direction

and asking questions

Systematic use of PDCA by everyone

“Follow Me”

Leadership

Go See

Ask Why &

Show Respect

The Lean Transformation Path

After John Shook, LEI

By enabling

Front Line Staff to

unblock the Flow of Value

Creation

By

developing their

Capabilities through

Mentored Learning by

Doing

Solve Business Problems in their specific Context

So everyone learns to use the Scientific Approach

So What?

While the specific results are fine

The lasting value is the capability to solve

the next set of problems

Success is judged by the ability of the team

to sustain and improve after you leave

It is the responsibility of management

to focus these actions on the needs of

the business and its customers

Beyond Mass ….

Many experiments – quick feedback – with

experienced users/customers

No one best way – multiple, parallel solutions

with total connectivity

Simplify the experience, work, tools, IT etc.

Everyone has knowledge – experts as advisors

Save capital, minimise resources and

support local communities

22-23 November, 2012 Paris, France

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