Updated with new information, illustrations, and leadership tools, Leading the Lean Enterprise Transformation, Second Edition describes how the metrics used by Toyota drive every line item in a financial statement in the right direction. Rather than focus on Lean tools and principles, the new edition of this bestselling reference focuses on what may be the least understood and most critical aspect of a Lean transformation: the building of a Lean culture. In addition to new appendices with background information and insightful stories on Lean leadership and implementation, it includes new information on tactical organization practices, strategy deployment, and Lean culture.
An inductee to IndustryWeek's Hall of Fame, George Koenigsaecker illustrates successful strategies and valuable lessons learned with case histories of U.S. leaders who have been instrumental in bringing Lean to the forefront. He explains the use of value stream analysis at the leadership level and describes how to structure kaizen events that can improve the value stream. Organized in the chronological sequence that a leader embarking on a Lean journey would experience, the book discusses the methods used by the author during the Hon Company’s successful Lean conversion, which doubled productivity, tripled revenues, and led IndustryWeek to recognize Hon as one of the "World’s 100 Best Managed Firms."
The book not only introduces powerful leadership tools—including strategy deployment, transformation value stream analysis, and transformation plan of care—but also arms potential change agents with the soft skills needed to define, develop, and communicate their vision. Detailing the steps required to sustain improvements, it supplies time-tested guidance for effective leadership throughout a Lean transformation in any organization.
Preface to Second Edition
Acknowledgments
Introduction
The Author
Chapter 1 : My Journey of Lean Learning : Eleven Corporate Transformations
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Deere & Company
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Rockwell International
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Jake Brake (Danaher)
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HON Company
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Summary
Chapter 2 : What Is Lean?
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What Toyota Does
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Two Pillars
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Identifying and Removing Waste
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A Problem-Identifying and Problem-Solving System
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Six Sigma or Lean…or Both?
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Summary
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Notes
Chapter 3 : Measurement Can Be Easy
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Understanding Financial Measures: Personal Examples
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Toyota’s True North Metrics
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How High Is High?
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The Four True North Metrics In Detail
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Linking the True North Metrics with Financial Measures
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Summary
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Notes
Chapter 4 : Value Stream Analysis Provides the Improvement Plan - And Kaizen Events Make It Happen
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Plan-And Kaizen Events Make It Happen
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Taking a Walk to Create an Initial-State VSA
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Brainstorming to Create an Ideal-State Value Stream
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Creating a Future-State Value Stream
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The Rule of 5×
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A Model Value Stream
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The Power of Weeklong Kaizen Events
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Summary
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Notes
Chapter 5 : Tactical Organizational Practices
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The n/10 Rule
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Designing Improvement Teams
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Key Event Failure Mode
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The 3 Percent Guideline
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Administrative Teams
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Redeployment
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Other Lean Training
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Summary
Chapter 6 : Strategic Organizational Practices
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Understanding Governance
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Immersion
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Guiding Coalition
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Communication
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Antibodies
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Lean Year by Year
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Summary
Chapter 7 : Building a Lean Culture
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Defining Culture
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The Building Blocks of Lean/Toyota Culture
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The Action Plan
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Summary
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A Final Thought
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Author’s Note
Appendix A : A Lean Tutorial
Appendix B : Building a Sustainable Lean Culture : The Watlow Way
Appendix C : Watlow’s Enterprise Visual Management System : Mission Control
Appendix D : The Origin of Simpler’s Transformation ContinuumSM
Appendix E : Red River Army Depot : Accelerating Lean through Leadership Immersion
Appendix F : A New Product Design System That Uses Lean Principles
Appendix G : Autoliv : Empowered to Solve Problems
Index