Sustaining Public Sector Enterprises: Educating a Lean Transformation Dennis F.X. Mathaisel Professor, Management Science ...
Outline <ul><li>Goal </li></ul><ul><li>Need </li></ul><ul><li>A Lean Enterprise Transformation Architecture </li></ul><ul>...
Goal To create value and save money for public sector enterprises by educating them in the principles and practices for a ...
Need <ul><li>The public sector depends on its ability to operate and maintain its systems in an agile, responsive, and rob...
The Lean Enterprise Architecture
What is LEA? <ul><li>Structure to organize the activities for the transformation  </li></ul><ul><li>Uses Lean enterprise a...
Life Cycle Components
<ul><li>Motivates and aligns the organization to achieve common goals and objectives </li></ul><ul><li>Aids tactical plann...
<ul><li>Performance-based acquisition strategy </li></ul><ul><li>A compelling case for change in depot transformation </li...
<ul><li>Documents the acquisition strategy and high level program structure and schedules </li></ul><ul><li>Uses an evolut...
<ul><li>Establish the motivation for change and a sense of urgency </li></ul><ul><li>Build a guiding coalition </li></ul><...
Phase 3 Transformation Implementation Plan <ul><li>Monitor schedules and performance </li></ul><ul><li>Manage risk  </li><...
Role of Systems Engineering in the LEA <ul><li>LEA  is an enterprise-wide structure based on the three phases of the life ...
Enterprise Transformation Engineering <ul><li>Enterprise Transformation Engineering uses system engineering tools and the ...
Enterprise Transformation Engineering
Putting It All Together:  Enterprise Transformation Engineering & LEA
LEA and Enterprise Transformation Engineering
Conclusions <ul><li>LEA uses Lean enterprise and systems engineering methodologies to  portray the overall flow of the act...
Definitions <ul><li>A  Lean Enterprise  is “an integrated entity that efficiently creates value for its multiple stakehold...
Definitions (Cont) <ul><li>Systems Architecting  is the “art and science of creating and building complex systems” [ Recht...
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  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • Background OC-ALC MRO Mission Program Objective Acquisition Strategy Toby Kaiser Market Research PWS Requirements Risk Assessment Acquisition Approach Source Selection Team Evaluation Criteria Funding Profile Contract, Sandra Geib Contract Type CLIN Structure Post Award Management Incentives Special Delegations/Waivers Summary
  • LEA Sustaining Publi..

    1. 1. Sustaining Public Sector Enterprises: Educating a Lean Transformation Dennis F.X. Mathaisel Professor, Management Science Babson College Clare L. Comm Professor, Marketing University of Massachusetts, Lowell 2004 Hawaii International Conference on Business June 2004
    2. 2. Outline <ul><li>Goal </li></ul><ul><li>Need </li></ul><ul><li>A Lean Enterprise Transformation Architecture </li></ul><ul><li>Enterprise Transformation Engineering </li></ul><ul><li>Conclusions </li></ul>
    3. 3. Goal To create value and save money for public sector enterprises by educating them in the principles and practices for a transformation to a lean enterprise.
    4. 4. Need <ul><li>The public sector depends on its ability to operate and maintain its systems in an agile, responsive, and robust manner. </li></ul><ul><li>The posture is influenced by: </li></ul><ul><ul><li>Downsizing of its operational force </li></ul></ul><ul><ul><li>Reduction of its infrastructure </li></ul></ul><ul><ul><li>Introduction of new technologies </li></ul></ul><ul><ul><li>Legislative changes </li></ul></ul><ul><ul><li>Limited resources for recapitalization </li></ul></ul><ul><ul><li>Aging systems, facilities, and equipment </li></ul></ul><ul><ul><li>Insufficient investment in the current infrastructure and equipment </li></ul></ul><ul><ul><li>An aging workforce, one-third of which is eligible to retire in the next five years </li></ul></ul><ul><li>To effectively respond to the increased, yet unpredictable, demand for its resources, the public sector must confront the challenges with an aggressive transformation plan at a price the nation can afford. </li></ul>
    5. 5. The Lean Enterprise Architecture
    6. 6. What is LEA? <ul><li>Structure to organize the activities for the transformation </li></ul><ul><li>Uses Lean enterprise and systems engineering methodologies </li></ul><ul><li>Developed from an enterprise perspective, paying particular attention to strategic issues, internal and external relations with all key stakeholders, and structural issues </li></ul><ul><li>Workforces are critical stakeholders and help define the system requirements and design selection </li></ul><ul><li>Fast clock speed, with ongoing action-monitoring corrective action activities </li></ul>
    7. 7. Life Cycle Components
    8. 8. <ul><li>Motivates and aligns the organization to achieve common goals and objectives </li></ul><ul><li>Aids tactical planning and execution </li></ul><ul><li>Assists in communications and workforce buy-in </li></ul><ul><li>Supports change planning and management </li></ul><ul><li>Supports development of processes and roadmaps </li></ul>Phase 1 Transformation Strategic Plan
    9. 9. <ul><li>Performance-based acquisition strategy </li></ul><ul><li>A compelling case for change in depot transformation </li></ul><ul><li>A clear future state objective for depot infrastructure and process </li></ul><ul><li>Meaningful metrics to monitor progress and to drive acquisition objectives </li></ul><ul><li>A clearly stated definition of success (exit criteria) </li></ul>Phase 2 A Requirements Package
    10. 10. <ul><li>Documents the acquisition strategy and high level program structure and schedules </li></ul><ul><li>Uses an evolutionary acquisition approach that leverages proven commercial best transformation practices </li></ul><ul><li>System engineering practices and methodologies are used to design, develop, evaluate, test, integrate, and implement transformation activities </li></ul>Phase 2 The Acquisition Plan
    11. 11. <ul><li>Establish the motivation for change and a sense of urgency </li></ul><ul><li>Build a guiding coalition </li></ul><ul><li>Develop a vision and strategy for change </li></ul><ul><li>Communicate the vision </li></ul><ul><li>Empower broad-based action </li></ul><ul><li>Generate short-term wins </li></ul><ul><li>Sustain the momentum: consolidate gains and produce more change </li></ul><ul><li>Anchor new approaches in the culture </li></ul>Phase 2 Change Management & Communication
    12. 12. Phase 3 Transformation Implementation Plan <ul><li>Monitor schedules and performance </li></ul><ul><li>Manage risk </li></ul><ul><li>Source selection planning </li></ul><ul><li>Prioritize (and obtain funding for) the highest payback initiatives (measure and ensure ROI) </li></ul><ul><li>Provide program/budget guidance and defend resources </li></ul><ul><li>Implement and monitor the difficult task of embedding cultural change within the depot </li></ul><ul><li>Foster a sense of urgency for task completion coupled with a commitment of time and resources and establish metrics that drive the proper behavior </li></ul>
    13. 13. Role of Systems Engineering in the LEA <ul><li>LEA is an enterprise-wide structure based on the three phases of the life cycle of a transformation. </li></ul><ul><li>LEA is also rooted in the foundations of Lean principles and systems engineering methods. </li></ul><ul><li>To demonstrate how the management tools of Lean and the technical tools of systems engineering work together within the phases of the LEA to ensure an effective transformation, the concept of “Enterprise Transformation Engineering” will now defined. </li></ul>
    14. 14. Enterprise Transformation Engineering <ul><li>Enterprise Transformation Engineering uses system engineering tools and the management practices of Lean to organize all of the tasks needed to design, implement, and operate an enterprise transformation. </li></ul><ul><li>Integration architectures (CIMOSA, GERAM, GRAI/GIM & PERA) </li></ul><ul><li>LEA selected and adapted the Generalized Reference Architecture and Methodology (GERAM) for MRO enterprise transformation project management </li></ul>
    15. 15. Enterprise Transformation Engineering
    16. 16. Putting It All Together: Enterprise Transformation Engineering & LEA
    17. 17. LEA and Enterprise Transformation Engineering
    18. 18. Conclusions <ul><li>LEA uses Lean enterprise and systems engineering methodologies to portray the overall flow of the action steps necessary to initiate, sustain, and continuously refine an enterprise </li></ul><ul><li>LEA developed from an enterprise perspective with particular attention paid to strategic issues, internal and external relations with all key stakeholders, and structural issues that must be addressed before and during a significant change initiative </li></ul><ul><li>To create value and save money for public sector enterprises, the key stakeholders must be educated in the principles and practices of a transformation to a lean enterprise </li></ul>
    19. 19. Definitions <ul><li>A Lean Enterprise is “an integrated entity that efficiently creates value for its multiple stakeholders by employing lean principles and practices” [Nightingale 1999] </li></ul><ul><li>Systems Engineering is “an interdisciplinary approach and means to enable the realization of successful systems” (IEEE 1998) </li></ul><ul><li>Systems Engineering Methods are the “logical systematic set of processes selectively used to accomplish systems engineering tasks” (IEEE 1998) </li></ul><ul><li>Systems Architecture is the “arrangement of elements, subsystems and allocation of functions to meet systems requirements” (IEEE 1998) </li></ul>
    20. 20. Definitions (Cont) <ul><li>Systems Architecting is the “art and science of creating and building complex systems” [ Rechtin 2000] </li></ul><ul><li>Organizational Architecting and Engineering “is the application of systems architecting to organizations” [Rechtin 1999] </li></ul><ul><li>Enterprise Engineering is the “collection of tools and methods which one can use to design and continually maintained an integrated state of the enterprise” (ISO WD 15704) </li></ul><ul><li>Architecture Frameworks describe basic concepts, descriptions and the related models of (views) to provide a standard for enterprise engineering (IEEE P1471) </li></ul>

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