acting your way to horizontal thinking jim womack, lean enterprise institute todd wyman, ingersoll...
TRANSCRIPT
Jim Womack, Lean Enterprise Institute
Todd Wyman, Ingersoll Rand
AME Toronto 2013 2
The Way of the World: Vertical
Senior LeadershipSenior Leadership
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Cu
sto
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sC
ust
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ers
Value: Horizontal
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How They Collide
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What We Need
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Ingersoll Rand Overview
• A $14 billion diversified industrial company
• Publicly-held; NYSE:IR
• Operations in every major geographic region
• Strategic brands are #1 or #2 in their markets –
• Club Car, Ingersoll Rand, Schlage, Thermoking, Trane
• Products and services for commercial, industrial and residential markets
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Engaged Employees | Delighted Customers | Confident ShareholdersEngaged Employees | Delighted Customers | Confident Shareholders
Path to Premier Performance
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Peer Group Performance
Improvements in Key Metrics Deliver Shareholder ValueImprovements in Key Metrics Deliver Shareholder Value
Qu
arti
les
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Lean Transformation Approach
• Programmatic
• Business Operating System
• Goal Deployment
• Inch Wide, Mile Deep
• Horizontal Value Streams
Concept to Launch
Order to Delivery (Fulfillment)
Delivery to Lifecycle (Service, Recycle)
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Leading Horizontally: Our Journey
Product Manager
Operations Lead
Engineering Lead
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Daily Management
• Standard Work• Takt / One-piece flow• Andon / Response / Escalation• Visual Management• Problem Solving• Leader Standard Work / Gemba Walks
DM
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Managing from the OfficeManaging from the Office
Managing at the GembaManaging at the Gemba
Executives “Going for a Walk”
Leading from the GembaLeading from the Gemba
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How Can We Do Better?
• Pick a value stream• Take a walk• Ask questions:
• Standard front-linemanagement
• Visible Takt Time• Valuable• Capable• Available• Adequate• Flexible• Leveled Flow• Up-to-Date Standard Work
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Compressor Value Stream
Production Control
Production Control
Production Control
Production Control
SalesOrdersSales
Orders
Distribution Warehouse
DealerCompressor Assembly
& Test
Warehouse Heat Pump Assembly
& Test
CustomerDie Casting Machining
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Compressor Value Stream Summary
Total Distance 4,667,520 ft.
Total Value Creating 630 ft.
% Value to Total 0.013%
Total Steps 73
Value Creating Steps 7
% Value to Total 9.6%
Total Time 44 days
Value Creating Time 14 minutes
% Value to Total 0.02%
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What Questions Did We Ask?
• Who designed the value stream?‑ No one
• Who is responsible for the “plan for every value stream”?‑ No one
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When You Are Ready
• Pick an end to end value stream
• Take a walk with everyone touching the value stream
• Create a summary of current performance and the gap
• Make someone responsible for creating a future state plan
• Discuss it in the presence of every vertical and reach an agreement
Act Your Way to Horizontal ThinkingAct Your Way to Horizontal Thinking