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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
 Top                                     Focus                                          Vital Few


                                        Aligning                                            Hoshin




                                                     Function
End-to-End                                                                           VS Analysis
                                    Value Stream



                                       Enabling                                             Oobeya

          Stability     Stability        Stability                Stability     Stability
Gemba   Plan/Actual   Plan/Actual      Plan/Actual              Plan/Actual   Plan/Actual    Kaizen
         Problems      Problems         Problems                 Problems      Problems




                                The Value Stream
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
The Lean Transformation Path

              Solve Business Problems
               in their specific Context

                    “Follow Me”
         By          Leadership             By
      enabling                         developing
     Front Line                            their
       Staff to                        Capabilities
    unblock the                          through
       Flow of                          Mentored
        Value                          Learning by
      Creation         Go See             Doing
                     Ask Why &
                    Show Respect

   So everyone learns to use the Scientific Approach

                                      After John Shook, LEI
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
How can IT support a
Lean Transformation?

      Daniel T Jones

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Lean and IT by Daniel T Jones

  • 1. How can IT support a Lean Transformation? Daniel T Jones
  • 2. 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?
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. A Lean Management System Direction Top Focus Vital Few Aligning Hoshin Function End-to-End VS Analysis Value Stream Enabling Oobeya Stability Stability Stability Stability Stability Gemba Plan/Actual Plan/Actual Plan/Actual Plan/Actual Plan/Actual Kaizen Problems Problems Problems Problems Problems The Value Stream
  • 9. 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
  • 10. The Lean Transformation Path Solve Business Problems in their specific Context “Follow Me” By Leadership By enabling developing Front Line their Staff to Capabilities unblock the through Flow of Mentored Value Learning by Creation Go See Doing Ask Why & Show Respect So everyone learns to use the Scientific Approach After John Shook, LEI
  • 11. 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
  • 12. 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
  • 13. How can IT support a Lean Transformation? Daniel T Jones