Integrating the Lean Enterprise

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Abstract/Syllabus

Courseware/Lectures

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Integrating the Lean Enterprise

Fall 2005

A relational diagram showing how parts of a lean business are interrelated.

Diagram from Lecture 3 of this course shows the integration among business elements that is required for a lean enterprise. (Diagram by Prof. Deborah Nightingale.)

Course Highlights

This course features a full set of lectures and assignments, all relating to lean enterprise, and how it is implemented in business.

Course Description

This class addresses some of the important issues involved with the planning, development, and implementation of lean enterprises. People, technology, process, and management dimensions of an effective lean manufacturing company are considered in a unified framework. Particular emphasis is placed on the integration of these dimensions across the entire enterprise, including product development, production, and the extended supply chain. Analysis tools as well as future trends and directions are explored. A team project is a key component of this subject.

Syllabus

Introduction

This course addresses some of the important issues involved with the planning, development and implementation of lean enterprises. People, technology, process and information dimensions of an effective lean company will be addressed in a unified framework. Particular emphasis will be placed on the integration of these dimensions across the entire enterprise, including product development, production, and the extended supply chain. Information requirements and technology and process enablers for achieving enterprise integration will be addressed. Analysis and implementation tools as well as future trends and directions will be explored. Outside speakers and industry practitioners will be utilized.

Class Topics

Lean Fundamentals
Lean Enterprises
Value and Enterprise Stakeholders
Lean Manufacturing Enterprise Value Stream Mapping and Analysis (EVSMA)
Transition to Lean Roadmap (TTL)
Lean Supply Chain Management
Lean Engineering
Lean Systems Engineering and Integrated Concurrent Engineering
Enterprise Interactions
People and Organizational Issues in the Lean Enterprise
Strategy and Metrics in a Lean Enterprise
Lean Enterprise Self-Assessment Tool (LESAT)
Enterprise Information Systems
Knowledge Management
Transformational Leadership
Enterprise Case
Enterprise Integration
Industry Case
Lean and the Broad Institute
Lean at Pratt and Whitney

Team Project

A key component of this class will be team projects involving enterprise-level evaluation of value streams from concept development through product delivery and support. These term-long projects will include an assessment of current company process/information flows, resource requirements, technology utilization, and cycle times. The projects will culminate with a report and presentation of summary recommendations on actions required to transition to a "lean" enterprise.

Individual Assignments

Individual assignments will be distributed throughout the semester. They will consist of mapping exercises, stakeholder analysis, literature research and the creation of your own vision of a framework for the lean enterprise.

Required Readings

Womack, James P., and Daniel T. Jones. Lean Thinking. New York, NY: Simon and Schuster, 2003. ISBN: 0743249275.

Murman, Earll. Lean Enterprise Value. New York, NY: Palgrave Macmillan, 2002. ISBN: 0333976975.

References

Rother, Mike, John Shook, Jim Womack, and Dan Jones. Learning to See. Cambridge, MA: Lean Enterprise Institute, 2003. ISBN: 0966784308.

Womack, James, Daniel Jones, and Daniel Roos. The Machine That Changed the World. New York, NY: Harper Collins, 1991. ISBN: 0060974176.

Grading

The grade will be based 75% on the team assignments and project, 15% on individual assignments, and 10% on class participation and Web discussion.

ACTIVITIES	PERCENTAGES
Team Assignments and Project	75%
Individual Assignments	15%
Class Participation and Web Discussion	10

Calendar

The course schedule is given below. EVSMA refers to the semester-long project on Enterprise Value Stream Mapping and Analysis.

Course schedule.
SES #	TOPICS	KEY DATES
1	Introduction/Class Overview Team Projects Class Survey Desired Outcomes Syllabus Course Overview
2	Lean Fundamentals Lean Concepts and Principles MIT Lean Enterprise Model (LEM) Value Stream Analysis and Mapping (VSA/VSM) Enterprise Value Stream Mapping and Analysis (EVSMA) "Mapping Your Value Stream" Video
3	Lean Enterprises Enterprise Components and Stakeholders Enterprise Process Architecture Three Levels of Enterprises Enterprise Value Streams	Individual Assignment 1: Value Stream Mapping due
4	Value and Enterprise Stakeholders Value Creation Framework Identifying Stakeholder Values
5	Lean Manufacturing Concepts of Lean Manufacturing Supporting Toolset Value Stream Map Comparison of a Mass and Lean Production System Lean Concepts and Outcomes in Manufacturing Environments Society of Manufacturing Engineers Video	EVSMA step 1A due
6	Transition-To-Lean Roadmap (TTL) How do I Transform to Become a Lean Enterprise?	EVSMA step 1B due
7	Lean Supply Chain Management Introduction to Supply Chain Management Supply Chain Integration Supplier Partnerships and Strategic Alliances	EVSMA step 1C due
8	Lean Engineering Big Picture of Product Development Product and Process Definition Process Focus Value Stream Mapping an Information Process Information Wastes
9	Lean Systems Engineering and Integrated Concurrent Engineering	EVSMA step 2 due
10	Enterprise Interactions Information Characteristics and Handoffs Integrated Information Flow
11	People and Organizational Issues in the Lean Enterprise Organizational Objectives and Structures (Allen) Corporate Culture and Change (Schein) Empowerment and Motivation	EVSMA step 3C due
12	Strategy and Measurement in the Lean Enterprise Strategy, Positioning, and Operational Effectiveness Metrics Balanced Scorecard Approach	EVSMA step 3A due
13	Lean Enterprise Self-Assessment Tool (LESAT) How do I Assess My Progress? (LESAT)	EVSMA step 3B due
14	Enterprise Information Systems	Individual Assignment 2: Lean Enterprise Article due
15	Knowledge Management Knowledge Management Basics Implementing Knowledge Management Human Capital - Creating and Maintaining	EVSMA step 4A due
16	Transformational Leadership Management vs. Leadership Leading Organizational Change Leadership Characteristics	EVSMA step 3D due
17	Enterprise Case Interfacing vs. Integrating Enterprise Engineering	EVSMA step 4B due
18	Team Presentations (EVSMA Steps 1-4)	Presentation on EVSMA steps 1-4 due
19	Enterprise Integration Improvement vs. Design Strategies for Enterprise Architecting Institutionalizing Lean - Sustainment Caveats and Risk Mitigation Global Environment
20	Industry Case	EVSMA step 5 due
21	Improvement Initiative Comparison Fundamentals of Each Initiative Compare and Contrast Synergies - Putting them Together, Tailoring an Approach	EVSMA step 6 due
22	Student Presentations of Lean Enterprise Frameworks	Individual Assignment 3: Lean Framework due
23-25	Final Team Presentations	Final presentation and report due

Readings

Required Readings

Womack, James P., and Daniel T. Jones. Lean Thinking. New York, NY: Simon and Schuster, 2003. ISBN: 0743249275.

Murman, Earll. Lean Enterprise Value. New York, NY: Palgrave Macmillan, 2002. ISBN: 0333976975.

Additional articles throughout the term (see table below).

References

Rother, Mike, John Shook, Jim Womack, and Dan Jones. Learning to See. Cambridge, MA: Lean Enterprise Institute, 2003. ISBN: 0966784308.

Womack, James, Daniel Jones, and Daniel Roos. The Machine That Changed the World. New York, NY: Harper Collins, 1991. ISBN: 0060974176.

Readings by Session

Course readings.
SES #	TOPICS	READINGS
1	Introduction/Class Overview Team Projects Class Survey Desired Outcomes Syllabus Course Overview
2	Lean Fundamentals Lean Concepts and Principles MIT Lean Enterprise Model (LEM) Value Stream Analysis and Mapping (VSA/VSM) Enterprise Value Stream Mapping and Analysis (EVSMA) "Mapping Your Value Stream" Video	Readings Womack. Lean Thinking. Chapters 1-5. Murman. Lean Enterprise Value. Chapters 3-4. Spear, Steven, and H. Kent Bowen. "Decoding the DNA of the Toyota Production System." Harvard Business Review (September 1, 1999). References "Introduction to Lean Enterprise Concepts." On-line DAU module. Nightingale, D., and Alexis Stanke. EVSMA Guide: Enterprise Value Stream Mapping and Analysis. Release 1.0, August 2005. Lean Aerospace Initiative.
3	Lean Enterprises Enterprise Components and Stakeholders Enterprise Process Architecture Three Levels of Enterprises Enterprise Value Streams	Readings Murman. Lean Enterprise Value. Chapters 5-6. Womack. Lean Thinking. Chapters 12-13. Womack, James, and Daniel Jones. "From Lean Production to the Lean Enterprise." Harvard Business Review (March 1, 1994). Sundaram, Anant, and Andrew Inkpen. "The Corporate Objective Revisited." Organization Science 15, no. 3 (2004): 350-363. Freeman, R. Edward, Andrew Wicks, and Bidhan Parmar. "Stakeholder Theory and the Corporate Objective Revisited." Organization Science 15, no. 3 (2004): 364-369. Hallam, Cory. Executive Summary in "Lean Enterprise Self-Assessment as a Leading Indicator for Accelerating Transformation in the Aerospace Industry." MIT Thesis, May 2003.
4	Value and Enterprise Stakeholders Value Creation Framework Identifying Stakeholder Values	Readings Murman. Lean Enterprise Value. Chapters 7-8. Rebentisch, Eric, Edward Crawley, Geilson Loureiro, John Dickmann, and Sandro Catanzaro. "Using Stakeholder Value Analysis to Build Exploration Sustainability." Grossi, Ignacio. "Stakeholder Analysis in the Context of the Lean Enterprise." MIT Thesis, chapters 3-5, May 2003.
5	Lean Manufacturing Concepts of Lean Manufacturing Supporting Toolset Value Stream Map Comparison of a Mass and Lean Production System Lean Concepts and Outcomes in Manufacturing Environments Society of Manufacturing Engineers Video	Readings Womack. Lean Thinking. Chapters 6-7. References Dillon, Andrew, and Shigeo Shingo. A Study of the Toyota Production System: From an Industrial Engineering Viewpoint. University Park, IL: Productivity Press, 1989. ISBN: 0915299178. LAI Production Operations Transition-to-Lean Roadmap
6	Transition-To-Lean Roadmap (TTL) How do I Transform to Become a Lean Enterprise?	Readings Jobo, Ronald. "Applying the Lessons of Lean Now to Transform the US Aerospace Enterprise." LAI Working Paper, 2003. Lean Aerospace Initiative. Heman, Justin. "The Paveway Program Transformation." LAI Working Paper, 2005. Lean Aerospace Initiative.
7	Lean Supply Chain Management Introduction to Supply Chain Management Supply Chain Integration Supplier Partnerships and Strategic Alliances	Readings Liker, Jeffrey, and Yen-Chun Wu. "Japanese Automakers, U.S. Suppliers and Supply-Chain Superiority." Sloan Management Review (Fall 2000): 81-93. Dyer, Jeffrey, and Kentaro Noboeka. "Creating and Maintaining a High-Performance Knowledge-Sharing Network: The Toyota Case." Strategic Management Journal 21, no. 3 (2000): 345-367. MacDuffie, John Paul, and Susan Helper. "Creating Lean Suppliers: Diffusing Lean Production Through the Supply Chain." In Remade in America. Edited by Jeffrey Liker, Mark Fruin, and Paul Adler. Oxford, UK: Oxford University Press, 1999. ISBN: 0195118154. References Campbell, Ernest B., Jr. "Managing the Defense Industry Transition to Performance-Based Practices and Supply Chain Integration." MIT Thesis, chapter 3, May 1998. White, Eric A. "Lean Enterprise Distribution Tactics with Customer Supply Chain Integration." MIT Thesis, May 2003. Cutcher-Gershenfeld, Joel. "Customer and Supplier Integration Across the Supply Chain." LAI Implementation Team Workshop Paper, 1999. Lean Aerospace Initiative.
8	Lean Engineering Big Picture of Product Development Product and Process Definition Process Focus Value Stream Mapping an Information Process Information Wastes	Readings Womack. Lean Thinking. Chapters 8-10. Ferdowsi, Bobak, and Alexis Stanke. "LEAP Case Study: F-16 Case Study Report." LAI Working Paper, 2002. Lean Aerospace Initiative. McManus, Hugh, Al Haggerty, and Earll Murman. "Lean Engineering: Doing the Right Thing Right." Paper delivered to the 1st International Conference on Innovation and Integration in Aerospace Sciences, August 2005. McManus, Hugh, and Richard Millard. "Value Stream Analysis and Mapping for Product Development." Proceedings of the International Council of the Aeronautical Sciences 23rd ICAS Congress, September 8-13, 2002. Stanke, Alexis, and Earll Murman. "A Framework for Achieving Lifecycle Value in Aerospace Product Development." Proceedings of the International Council of Aeronautical Sciences, 2002. References Secor, Deb, and Dean Bliss. "Transforming the Enterprise Product Development Function." LAI Presentation, March 24, 2005. Lean Aerospace Initiative.
9	Lean Systems Engineering and Integrated Concurrent Engineering	Readings Bozdogan, Kirk, John Deyst, David Hoult, and Malee Lucas. "Architectural Innovation in Product Development Through Early Supplier Integration." R&D Management 28, no. 3 (1998): 163-173. Honour, Eric C. "Value of Systems Engineering." LAI Technical Report, 2004. Lean Aerospace Initiative. Browning, Tyson R. "Exploring Integrative Mechanisms with a View Towards Design for Integration." Advances in Concurrent Engineering CE97 (August 20-22, 1997): 83-90. Stagney, David B. "The Integrated Concurrent Enterprise." MIT Thesis, chapter 4, May 2003.
10	Enterprise Interactions Information Characteristics and Handoffs Integrated Information Flow	Readings Hammer, Michael. "Process Management and the Future of Six Sigma." Sloan Management Review (Winter 2002): 26-32.
11	People and Organizational Issues in the Lean Enterprise Organizational Objectives and Structures (Allen) Corporate Culture and Change (Schein) Empowerment and Motivation	Readings Beer, Michael, and Nitin Nohria. "Breaking the Code of Change." Harvard Business Review (May 1, 2000). Senge, Peter. "How to Set the Stage for a Change in Organizational Culture." Chapter 2 in The Dance of Change. New York, NY: Currency, 1999. ISBN: 0385493223. (Section IX) Emiliani, M. L. "Lean Behaviors." Management Decision 36, no. 9 (1998): 615-631. References Palmer, I., and R. Dunford. "Who Says Change Can Be Managed? Positions, Perspectives and Problematics." Strategic Change 11, no. 5 (2002): 243-251.
12	Strategy and Measurement in the Lean Enterprise Strategy, Positioning, and Operational Effectiveness Metrics Balanced Scorecard Approach	Readings Kaplan, Robert, and David Norton. "Using the Balanced Scorecard as a Strategic Management System." Harvard Business Review (January 1, 1996). Norreklit, Hanne. "The Balance on the Balanced Scorecard." Management Accounting Research 11, no. 1 (2000): 65-68. Kaplan, Robert, and David Norton. "Measuring the Strategic Readiness of Intangible Assets." Harvard Business Review (February 1, 2004). References Lohman, Clemens, Leonard Fortuin, and Marc Wouters. "Designing a Performance Measurement System: A Case Study." European Journal of Operational Research 156, no. 2 (2004): 267-286.
13	Lean Enterprise Self-Assessment Tool (LESAT) How do I Assess My Progress? (LESAT)	Readings Nightingale, Deborah, and Joe Mize. "Development of a Lean Enterprise Transformation Maturity Model." Systems Management 3 (2002): 15-30. References MIT Lean Enterprise Self-Assessment Tool
14	Enterprise Information Systems	Readings Mabert, Vincent, Ashok Soni, and M. A. Venkataramanam. "Enterprise Resource Planning: Common Myths Versus Evolving Reality." Business Horizons 44, no. 3 (2001): 69-76. Papatheodorou, Yorgos. "The Economic Case for Systems Integration." Industrial Management 45, no. 3 (2003): 8-15. Danvenport, Thomas. "Putting the Enterprise into the Enterprise System." Harvard Business Review (July 1, 1998). References Hines, Erisa, and Jayakanth Srinivasan. "IT Enabled Enterprise Transformation: Perspectives Using Product Data Management." LAI Working Paper, 2004. Lean Aerospace Initiative. Yusuf, Yahaya, A. Gunasekaran, and Mark Abthorpe. "Enterprise Information Systems Project Implementation: A Case Study of ERP in Rolls-Royce." International Journal of Production Economics 87, no. 3 (2004): 251-266. Robey, Daniel, Jeanne Ross, and Marie-Claude Boudreau. "Learning to Implement Enterprise Systems." Journal of Management Information Systems 19, no. 1 (2002): 17-46.
15	Knowledge Management Knowledge Management Basics Implementing Knowledge Management Human Capital - Creating and Maintaining	Readings Nonaka, Ikujiro, Ryoko Toyama, and Noboru Konno. "SECI, Ba and Leadership: A Unified Model of Dynamic Knowledge Creation." Long Range Planning 33, no. 1 (February 1, 2000): 5-34. Hansen, Morten, Nitin Nohria, and Thomas Tierney. "What's Your Strategy for Managing Knowledge?" Harvard Business Review (March 1, 1999). Holsapple, Clyde, and Kiku Jones. "Exploring Primary Activities of the Knowledge Chain." Knowledge and Process Management 11, no. 3 (2004): 155-174. References Cohen, Wesley, and Daniel Levinthal. "Absorptive Capacity: A New Perspective on Learning and Innovation." Administrative Science Quarterly 35 (1990): 128-152. Earl, Michael, and Ian Scott. "What Is a Chief Knowledge Officer?" Sloan Management Review (Winter 1999): 29-38. von Krogh, Georg, Ikujiro Nonaka, and Manfred Aben. "Making the Most of Your Company's Knowledge: A Strategic Framework." Long Range Planning 34, no. 4 (2001): 421-439. Davenport, Thomas, David De Long, and Michael Beers. "Successful Knowledge Management Projects." Sloan Management Review (Winter 1998): 43-57.
16	Transformational Leadership Management vs. Leadership Leading Organizational Change Leadership Characteristics	Readings Kotter, John. "Leading Change: Why Transformation Efforts Fail." Harvard Business Review (February 1, 2000). Collins, James, and Jerry Porras. "Building Your Company's Vision." Harvard Business Review (September 1, 1996). Hout, Thomas, and John Carter. "Getting it Done: New Roles for Senior Executives." Harvard Business Review (February 1, 2000). Breen, Bill. "High Stakes, Big Bets." Fast Company 57 (April 2002): 66-78. Useem, Jerry. "Conquering Vertical Limits." Fortune (February 19, 2001): 84-96. Schein, Edgar. "Transformative Change: Unlearning and Relearning Culture." Chapter 6 in The Corporate Culture Survival Guide. New York, NY: Jossey-Bass, 1999. ISBN: 0787946990. ———. "The Leader of the Future." Drucker Foundation Working Paper 3832, July 1995. References Collins, James. "Turning Goals Into Results: The Power of Catalytic Mechanisms." Harvard Business Review (February 1, 2000). Bartlett, C., and S. Ghoshal. "The Myth of the Generic Manager: New Personal Competencies for New Management Roles." California Management Review 40, no. 1 (1997): 92-116.
17	Enterprise Case Interfacing vs. Integrating Enterprise Engineering	Readings Kessler, William. "Company Transformation: A Case Study of Lockheed Martin Aeronautics Company." Systems Management 3 (2002): 5-14. Magretta, Joan. "The Power of Virtual Integration: An Interview with Dell Computer's Michael Dell." Harvard Business Review (March 1, 1998).
18	Team Presentations (EVSMA Steps 1-4)
19	Enterprise Integration Improvement vs. Design Strategies for Enterprise Architecting Institutionalizing Lean - Sustainment Caveats and Risk Mitigation Global Environment	Readings Murman. Lean Enterprise Value. Chapters 9-11. Shapiro, Benson. "Functional Integration: Getting All the Troops to Work Together." Harvard Business Review (November 9, 1989).
20	Industry Case	Readings Velocci, Anthony. "Grading the Industry." Aviation Week & Space Technology 159, no. 3 (2003): 50-54. Panchak, Patricia. "Lean Health Care? It Works!" Industry Week 252, no. 11 (2003): 34-40. Jordan, Michael. "Pulling Widgets into Lean Success." Industrial Engineer 35, no. 3 (2003): 34. Greenwood, Tom, Brad Greene, and Marianne Bradford. "Becoming a Lean Enterprise." Strategic Finance 84, no. 5 (2002): 32-40.
21	Improvement Initiative Comparison Fundamentals of Each Initiative Compare and Contrast Synergies - Putting them Together, Tailoring an Approach	Readings Garvin, David. "Leveraging Processes for Strategic Advantage." Harvard Business Review (September 1, 1995). Davenport, T. "The Fad that Forgot People." Fast Company 1 (1995). Sheard, Sarah. "Life Cycle of a Silver Bullet." CrossTalk: The Journal of Defense Software Engineering (July 2003): 28-30. Hammer, Michael, and Steven Stanton. "How Process Enterprises Really Work." Harvard Business Review (November 1, 1999). Bozdogan, Kirk. "A Comparative Review of Lean Thinking, Six Sigma and Related Enterprise Change Models." MIT Working Paper, 2004. (Unpublished)
22	Student Presentations of Lean Enterprise Frameworks
23-25	Final Team Presentations