The Lean Enterprise Institute (LEI) is a non-profit education and research institute based in Cambridge, MA with over 300,000 members from various industries. It was founded in 1997 by Dr. James Womack to promote lean thinking and practice through various programs. LEI helps organizations apply lean principles via collaborative partnerships that involve leadership development, training, improvement projects, and knowledge sharing among its partner organizations.

1. © Copyright 2015 Lean Enterprise Institute. All rights reserved.
Lean Enterprise Institute and the leaper image are registered trademarks of Lean Enterprise Institute, Inc.

2.  Non-profit education and research institute, based in
Cambridge, MA, with 15 global affiliates
 Over 300,000 members from all industries
What is the Lean Enterprise Institute?
2
Founded in 1997 by
Dr. James Womack,
principal scientist of the
MIT IMVP study that
resulted in The Machine
That Changed the World.
Our Mission: Make Things Better Through
Lean Thinking and Practice
CEO John Shook,
15 full time employees,
extensive list of faculty
and associates.

3. How We Learn, Share and Collaborate
 Lean Global Network
(LGN)
 Healthcare Value
Network
 Lean Education
Academic Network
 Public
 Onsites
 Online
Webcasts
3

4. LEI as a Collaborative Process
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Share learning within
lean community
Become Part of
Our Mission!
Partners share learning with
others in their organization
•Improved Systems
•Improved Performance
•Improved Capability
Partner LEI
Share with other
Organizations & Individuals
Share with other
organizations & Individuals
Lean Thinking
Everywhere

5. PROCESS
IMPROVEMENT
Continuous,
practical
changes to
improve the way
the work is done
CAPABILITY
DEVELOPMENT
Sustainable
improvement
capability
in all people
at all levels
SITUATIONAL APPROACH
- Value-Driven Purpose -
“WHAT PROBLEM ARE WE TRYING TO SOLVE?”
Basic Thinking, Mindset, Assumptions
That drive this transformation
Responsible Leadership
MANAGEMENT
SYSTEM
The Lean Transformation Model

6.  Foundation of PDCA for Purpose,
Process and People
 Clearly identify organizational need
and problem to be solved
 Understand what is the capability for change
 Joint hands-on collaboration through
experimentation & PDCA
 Focus on process improvement
& capability development
 Establish structure that ensures capability
for organization to improve on own
 Direct engagement of senior management
throughout co-learning partnerships
Basic Structure of Lean Transformation Model
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7. Partner Benefits
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PARTNER
Gemba
Learning
Peer to Peer
Relationships
with other
partners
Successes &
Challenges
Sharing
Access to
Thought
Leaders
Experiments
Knowledge
Share

8. 1. Executive leadership engagement
• Management development activities
• Coaching and mentoring senior leaders
• Hoshin Kanri planning
• Lean management behaviors
1. Training and capability development
• Workshops tailored to the partner’s specific need
• Multi-Partner Workshops
1. Lean transformation project support – co-learning/action research
• Gemba-based improvement activities
• Documentation of learning for the purpose of sharing with the broader community
(with permission of the partner)
1. Interaction with the Partner community
• Exclusive partner-to-partner learning activities
• Seats at public workshops
• Seats at annual Lean Transformation Summit
• Book and other product discounts
Partner Fees: Standard annual fee tailored to each Partner’s needs, especially through
transformation project (item 3)
Typical Partnership Agreement Contents
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9. Partner Lean Transformation/
Research Focus
Key Co-Learning
Activities
Challenges of reshoring manufacturing
from China to the U.S.
• Hoshin/management system
• Shop-floor support
• Top management coaching
• Product development
Making lean transformation through
targeted A3 development at the
executive level
• Senior management coaching
• Targeted mentoring and support
based on A3s focused on real
business problems
Lean transformation in a large
academic teaching hospital
• A3 mentoring
• Targeted front-line improvement
activities
• Top management coaching
Lean transformation in a retail
environment – improvement that
directly impacts the customer
• Creating the model store (starting
with a model area)
• End-to-end improvement in a
grocery division
Co-Learning Partner Examples
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10. Case Study:
GE Appliances & Lighting
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Global Headquarters of
GE Appliances & Lighting,
Louisville, KY

11. From…
Teams in functional silos
Multiple handoffs &
disconnects
Varying/competing goals and
metrics
To…
One team, one goal
All functions co-located & involved in
product development from beginning
Team owns the metrics
(Quality, Service, Cost)
Mission One Teams
Case Study: GE Appliances & Lighting
New Production Approaches
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Applying Lean to product development and dramatically
changing the way we work.

12.  Problem:
Increase output at reasonable cost for flagship product
 Model Area: Bottom Freezer Assembly Plant
• Can’t make output
• Costs high vs. Competitors
Case Study: GE Appliances & Lighting
The Problem to Solve
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13. Case Study: GE Appliances & Lighting
Lean Transformation
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2011 2012 2013 2014
Vague Problem
To Solve 
Leaders need
development
in “lean”
We need
help with the
work!
Can’t respond
to andon!
Shop floor mgmt
can’t sustain
improvement!
GE request to LEI:
Defining the culture
“Little Big Room”
Team Leader
Basic Thinking
Bottom Freezer Plant Support
•Output!
•Costs!
Focused
management
capability
development
activity
Hoshin
Management
Support
Misalignment of
goals among
executive
management!
Product Launches Start
Water
Heater
Bottom
Freezer
Fridge
Appliance Park
Production: Washing
Machine Dishwashers

14. Case Study: GE Appliances & Lighting
How the Problem Focus Shifted to the Work Itself
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100%
60%
30%
Kitting &
Mixed
Model
Support
Cycle time
reduction
in foam
and level
loaded
schedule
2012 2013 2014
Schedule Achievement For Bottom Freezers

15.  Visual tracking of cost reduction
targets for AP5 to ensure output
and achieve fundamental stability
 Results
• Decreased scrap
• Increased schedule
achievement [output]
• Decreased overtime
 Daily meetings (deep dive) by
dept. (Molding, Assy, etc.) to
confirm progress
 Weekly meetings with all
leadership
Case Study: GE Appliances & Lighting
How they clarified the problem and aligned
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17
Overall Cost Target
Counter-
measures
By Area

16. Reflection
Discussion
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Next Steps