INDEX
advancing to lean maturity, 60–63, 111–124
lean dynamics transformation cycle, 112–114, 120, 158, 167
levels of lean transformation, 58–60, 61–63, 114, 115–121
starting point, 61–63, 159, 165–167
aerospace industry, 53–57, 80–81, 96, 119–120, 125–126, 128–130, 143, 147
airline industry, 5–6, 9–10, 27–29, 30, 45–46, 60, 86–87, 89, 122–123, 133, 137–138, 142–143, 146, 153
assessment, see dynamic value assessment
automotive industry, 3–5, 10, 17–24, 30, 32, 33, 44–45, 60, 70, 94–95, 117–118, 122–123, 133, 134, 135–136, 140, 145, 147–148, 153–154, 169–170, 174
baselining dynamic value creation, 158–164
customer analysis, 161–163
data analysis, 164
environmental dynamics, 163–164
product assessment, 160–161
Beech Aircraft, 55
benchmarks
corporate examples, 5–6, 9–10, 30, 137–138, 142–143
limits of, 152
bill of materials (BOM), 75–76, 80
Boston Consulting Group, Most Innovative Companies list (2004), 127
Centers of Excellence (COE) programs, 56, 80–81, 147
Cessna Aircraft Company, 53–58, 72, 80–81, 119–120, 147
change
importance of, 30
in lean dynamics, 28–29
Chrysler, 17
continuous improvement, 8, 40–41, 57–58, 91–92, 114, 144, 158
control, in decentralization, 19, 85–86
coordinated control of decentralized operations, 19
cost consciousness, 23–24
crisis, 137–149
crisis of 2008-2009, 9–10, 20–21, 120–121, 143, 147, 153
leveraging downturns, 146–147
September 11, 2001 terrorist attacks, 6, 27, 45–46, 137–138, 146
criticism, embracing, 105–106
cross-functional teams, 56, 99
culture of workarounds, 32–33
customer(s)
analyzing, 161–162
creating customer-driven solutions, 143–146
dynamic customer solutions, 147–149
trust with, 144
value creation through relationships with, 139–142, 161–163
values of, 162–163
Customer Relationship Management (CRM), 141–142
customer solutions, 140–141
cycle time variation, 96–97, 100–101, 130–131
decentralization, 18–19, 21–22, 84–89
importance of, 93
inclusion versus control, 85–86
insight versus information, 86–87
as lean dynamics principle, 132
principles of, 103–104
value versus volume or velocity, 85
defects waste, 23
Defense Logistics Agency (DLA), 78–81, 116–117, 123–124
Delta Air Lines, 142–143
disconnects
bridging, 141
recognizing, 89–90
dynamic lean level, 59, 60, 62, 114, 119–120
dynamic needs, 43
dynamic value assessment, 43–48, 73–78, 113–114, 150, 151, 157–168
baseline for value creation, 158–164
continuous improvement and, 8, 40–41, 57–58, 91–92, 114, 144, 158
importance of, 157–158
lean dynamics transformation cycle, 112–114, 120, 158, 167
starting point in, 61–63, 159, 165–167
state of lean maturity, 158, 159, 167–168
transformational focal points in, 74–75, 78–81, 92–93, 97–99, 107–108, 112, 113, 119, 158, 165–166
dynamic vision
establishing, 42–46
nature of, 38–39
economies of scale, 5, 22, 27–28, 50, 138
educational institutions, 57, 154
embracing the details, 85
end items, 76
environmental dynamics, 163–164
continuous improvement, 8, 40–41, 57–58, 91–92, 114, 144, 158
Six Sigma, 2–3, 53–57, 95, 99–100, 120, 126–127
families of items, 32
family sourcing, 81
Feinstein, Karen Wolk, 88
Fifth Discipline, The (Senge), 24
5S methods, 40–41
5 Whys, 70–72
Ford, Henry, 3, 18–19, 84, 117–118, 147–148
Ford Motor Company, 3, 17, 18–19, 117–118, 147–148
Garrity, Don, 143
Garrity Tool Company, 120–121, 143
gasoline prices, 20–21
General Electric (GE), 89–90
General Motors (GM), 17–19, 44–45, 84–85, 148, 174
Greenblatt, Drew, 144–147
Grindstein, Jerry, 142–143
group technologies, 131
Grumman, 128–129
healthcare industry, 57, 87–89, 126, 154–155
Hibbett Sports, 9–10
hurricane Katrina, 6
implementation of lean dynamics, 2, 8, 67–81, 112
asking “why,” 71–72
demanding fundamental shift, 72–73
dynamic value assessment, 73–78, 119
5 Whys, 70–72
product families, 74–81
reasons for and types of waste, 22–23, 42–43, 70–72
transformational focal points, 74–75, 78–81, 92–93, 97–99, 107–108, 112, 113, 119, 158, 165–166
value stream map, 69–70, 73–78, 80, 123–124
variation leveling, 76–78
inclusion, control versus, 85–86
increments of value, 75
information flow, 26
innovation, 125–136
factors in advancing, 135–136
integrating with execution, 132–134
as ongoing enterprise, 131–134
organizational flow and, 132–134
in product design, 134–136
in product development, 126–131
promoting, 93
value curve and, 176
see also rethinking tradition
innovation flow, 26–27, 130–131
insight
information versus, 86–87
span of, 9, 40–42, 86–87, 89–92
inventory waste, 23
Jack Welch and the GE Way (Slater), 89–90
Joint Strike Fighter Program, 95
Jones, Daniel, 69
Kelleher, Herb, 27–28
Lafley, A. G., 131
lag problem, 24–27
drivers of operational lag, 98–99
fundamental source of lag, 99–100
mitigating lag versus chasing problem, 29–31
nature of lag, 24–25
product families in driving, 78–81
recognizing impact of lag, 25–27
on value-added map, 100–101
value curve and, 50
lean dynamics, 3–11
benchmark companies, 5–6, 9–10, 30, 137–138, 142–143
concept of, 1–3
deeper focus of, 6–7
demand for dynamic value, 28–29
implementation context, 8, 67–81, see implementation of lean dynamics
key distinctions, 34–35
levels of lean maturity, 58–60, 61–63, 114, 115–121, 158, 159, 167–168
organizational structure for, 6–7, 9, 56–57, 104
principles of, 5–6
promoting dynamic stability, 31–32, 33
shared sense of purpose in, 7–9
stability presumption in, 3–4, 20–22, 163
transformational nature, 2, 112–114, 120, 158, 167
uncertainty and change in, 28–29
variants, 2
workforce engagement in, 8–9, 40–41
lean maturity, 52–63
continuous improvement and, 57–58, 158
core challenges of, 98–99
levels of, 58–60, 61–63, 114, 115–121, 158, 159, 167–168
organizational structure and, 56–57
road to, 55–57
starting point, 61–63, 159, 165–167
transformation from the top, 102–108
lean product design, 127, 129–131
Lean Six Sigma, 99–100
Lean Thinking (Womack and Jones), 69
learning dilemma (Senge), 90
levels of lean transformation, 58–60
dynamic lean, 59, 60, 62, 114, 119–120
looking outside the company, 121–122
starting point assessment, 61–63, 159, 165–167
steady-state lean, 59, 60, 62, 83, 114, 117–118
strategic lean, 59, 60, 62, 114, 120–121
structure for advancement, 60–61
sustainable lean, 59, 60, 62–63, 114, 122–123
tactical lean, 59, 114, 115–117
Liker, Jeffrey, 134
Lion Brothers, 36–39, 133, 144, 145
manufacturing, 36–39, 120–121, 126–127, 133, 143–147, 155
Marlin Wire, 144–147
Morgan, James, 134
motion waste, 23
motivation, personal approach to transformation, 41–42
Mr. Potato Head toy, 68
operational flow, 26
operational lag, 98–99
organizational flow, 82–93, 112, 113
decentralization and, 84–89
disconnects versus, 89–90
establishing and promoting, 89–93, 151
innovation and, 132–134
organizational structure
for lean dynamics, 6–7, 9, 56–57, 104
steering committee for restructuring, 104–105
overproduction waste, 23
ownership, 92
performance measurement, value curve in, 177
Pharmacy Agents for Change, 88–89
piece-part approach, 36–37
Pittsburgh Regional Health Initiative (PRHI), 87–88, 155
processing waste, 23
Procter & Gamble, 131, 139–140
product assessment, 160–161
customer values and, 162–163
displaying increments of value, 160–161
rationale for value creation, 160
product design
as compartmentalized process, 132
innovation in, 134–136
lean product design, 127, 129–131
product development, 126–131
innovation decline, 126–127
lean product design, 127, 129–131
streamlining, 127–129
product families, 5, 32, 74–81, 93
as end items, 76
as foundation for lean, 75–76
identifying, 78
as transformational focal point, 74–75, 78–81, 92–93, 97–99, 107–108, 119, 158
variation leveling, 76–78
project orientation, 128–129
proportional relationship, in value curve, 170, 172
recession of 2008-2009, 9–10, 20–21, 120–121, 143, 147, 153
responsiveness, in lean operations, 145
rethinking tradition, 150–156
art of the possible and, 154–156
learning by doing, 151–154
limits of benchmarks, 152
staying the course, 152–154
scientific management, 67–68
September 11, 2001 terrorist attacks, 6, 27, 45–46, 137–138, 146
Six Sigma, 2–3, 53–57, 95, 99–100, 120, 126–127
Slater, Robert, 89–90
Sloan, Alfred, 18–19, 21–22, 84–85
Southwest Airlines, 5–6, 9–10, 27–29, 30, 45–46, 60, 86–87, 89, 122–123, 133, 137–138, 142–143, 146, 153
Southwest Airlines Way, The (Gittell), 86, 133
expanding, 91–92
information versus insight, 86–87
nature of, 40–41
recognizing disconnects, 89–90
speed, in lean operations, 145
stability
presumption of, 3–4, 20–22, 163
quantifying environmental dynamics, 163–164
of restructured activities, 112, 113
Starbucks, 68
starting point in dynamic value assessment, 61–63, 159, 165–167
categorizing findings, 165
identifying transformational focal points, 165–166, 167
managing the shift, 166–167
steady-state lean level, 59, 60, 62, 83, 114, 117–118
strategic lean level, 59, 60, 62, 114, 120–121
streamlining product development, 127–129
structured experimentation, 144
Supplier Utilization Through
Responsive Grouped
Enterprises (SURGE), 79–80
supply chain effect, 118
sustainable lean level, 59, 60, 62–63, 114, 122–123
tactical lean level, 59, 114, 115–117
Tanguay, Ray, 153
targeted continuous improvement program, 158
Taylor, Frederick Winslow, 67–68
technology trap, 141–142
3M, 126–127
Total Productive Maintenance, 119–120
Toyota Motor Corporation, 4–5, 10, 22–23, 30, 32, 60, 70, 77, 82–83, 89, 94–95, 122–123, 133–136, 140, 145, 146, 153–154, 169
Toyota Product Development System, The (Morgan and Liker), 134
Toyota Production System, 22–23, 89, 94–95, 169
traditional approaches, see rethinking tradition
transformation, 94–110
creating solutions versus chasing problems, 95–102
creating transformational shifts, 95, 166–167
dynamic, importance of, 31, 33–34
embracing criticism in, 105–106
leading with metrics, 99–102
lean dynamics transformation cycle, 112–114, 120, 158, 167
organizational structure for, 104–105
personal approach to, 41–42
from the top, 102–108
transformational focal points in, 74–75, 78–81, 92–93, 97–99, 107–108, 112, 113, 119, 158, 165–166
transformational focal points
examples of, 166
identifying, 97–99, 112, 158, 165–166, 167
in lean dynamics transformation cycle, 113
nature of, 74–75
product families as, 78–81
selecting, 107–108
shifting focus, 92–93
transportation waste, 23
trust
advancing through, 142–143
with customers, 144
of workers for company, 153
U.S. Defense Department, 78–81
U.S. Department of Transportation, 123
value
cost versus, 141–142
demand for dynamic, 28–29, 42–43
in dynamic value assessment, 43–48, 73–78, 112, 113–114, 119, 150, 151, 157–168
increments of, 75
loss in, 35
meaning of, 42–43
nature of, 28
versus volume or velocity, 84–85
value-added map, 100–101
value available, 45, 47, 48, 170–171, 172, 173
value creation
advancing through trust, 142–143
avoiding technology trap, 141–142
baselining, 158–164
customer-driven solutions in, 143–146
through customer relationships, 139–142
leveraging downturns for operational gains, 146–147
nature of, 43
new model for, 138–147
assessing challenges with, 48–49, 100
calculations for, 172–175
customer-specific, 100
defined, 44
elements of, 170–171
excellence on, 52–53
lag problem, 50
lean shift on, 51
in performance measurement, 177
potential indications, 175–176
shape of, 44–46, 48, 49–51, 85, 115, 137–138, 152–153, 174–175
value available, 45, 47, 48, 170–171, 172, 173
value required, 45, 47, 48, 171, 172, 173
value required, 45, 47, 48, 171, 172, 173
value stream map, 69–70, 73–78, 80, 123–124
variation, 22
cycle time, 96–97, 100–101, 130–131
variation leveling, 76–78
Viemeister, Peter, 129
vision
importance of, 49
volume
versus value or velocity, 84–85
Wagoner, Rick, 17
Walmart, 5, 9–10, 29, 30, 142, 146
waste
reducing or eliminating, 6–8, 22–23, 29, 35, 54
value curve and, 50
Welch, Jack, 33
Williams, Tim, 54
Womack, James, 69
workarounds
challenging culture of, 32–33
preventing, 43
Worldwide Web Industrial Capabilities Assessment Program (WICAP), 117
Y2K problem, 36–37