lean startup--from toyota city to fremont to you by john shook

Lean Startup – From Toyota City to Fremont to You

John ShookChairman and CEOLean Enterprise Institutewww.lean.org

December 2013

Lean Startup ConferenceSan Francisco

www.lean.org

Lean…

“Lean” was named exactly 25 years ago

3

“The Triumph of Lean

Production”-John Krafcik

1988

“Flow Production” Was Born Exactly 100 Years Ago

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The Birth of Flow Production – Ford Highland Park

In Search of the World’s Best Production and Management Systems

In Search of the World’s Best Production and Management Systems

Toyota City – Lean’s Incubator

Never Overproduce; Never Pass on a Defect

“Customer First”…and the Following Process is a Customer!

Earliest Photo of a KanbanEarliest Photo of a Kanban

One-Piece Flow…

Where’Where’s s

mine?!mine?!

Don’t “Starve” the Customer

Together…

…Smooth, Uninterrupted Flow of Value

aka JIT

Lean…

New United Motor Manufacturing, Inc. – NUMMI – built its first car in December 1984 and its last on April 1, 2010.

NUMMI kick-started a revolution.

Joint Venture

The Worst Factory in the World…

Certified

Worst!

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From the Worst to the Best…

Certified!

Eiji

So, How Did You Really Change the Culture at NUMMI?

Two Things…

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Manage to Engage Everyone in Continuous Experimentation

Problems Happen…What Do We Do With Them?

“No problem

is a problem!”

Hiding Problems is the Most Anti-lean Problem.

Ford Milpitas CA Plant Ford Milpitas CA Plant

Ford Milpitas CA Plant Today Ford Milpitas CA Plant Today

Model T PlazaFord’sHighland

Park Today

GM Fremont What went wrong?

• It’s a Management System!• It’s an Organizational and a Personal Transformation.

This is not a pipe.

Lean Startup?• Lean is about solving problems

through continuous experimentation. • We ask: what is our purpose as an

organization or what problem are we trying to solve?

• So, what problems do startups face?

Lean Startup?What problems do startups face that are different from those of established enterprises? More uncertainty? Fewer resources? Greater risk?Anything else really?

• It’s a Management System!• It’s an Organizational and a Personal Transformation.

This is not a pipe.

www.lean.org

Define Your Purpose Improve the Work Develop the People