2_lean_fundament

2_lean_fundament - i i le i i l i l / i i 2 Lean is a New...

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Unformatted text preview: i i le i i l i l / i i 2 Lean is a New Approach to Managing Enterprises Fundamentals of Lean Professor Deborah N ght nga September 12, 2005 Deborah N ght nga e, 2005 Massachusetts Inst tute of Techno ogy ESD.61J 16.852J: Integrat ng the Lean Enterpr se Page Origin and evolution of lean concepts Core lean principles & practices How lean differs from craft and mass production models of industrial organization Lean implementation steps Value stream mapping i i l i l / i i 3 - i i l i l / i i 4 / Deborah N ght nga e, 2005 Massachusetts Inst tute of Techno ogy ESD.61J 16.852J: Integrat ng the Lean Enterpr se Page Lean Enterprise Value: The Central Concept Lean is a process of eliminating waste with the goal of creating value for enterprise stakeholders. Lean Enterprise Value , Murman et al Deborah N ght nga e, 2005 Massachusetts Inst tute of Techno ogy ESD.61J 16.852J: Integrat ng the Lean Enterpr se Page Lean Works Everywhere Export licensing: 56 steps to 21 steps 52 handoffs to 5 handoffs Cycle time from 60 days to 30 days 50% 1st pass yield to >90% 1st pass yield Payroll: Reduced non-value added steps by 50% 15 forms to 1 form Reduced signatures approvals by 25% Recruiting: Cycle time from 14 days to 48 hours 50% reduction of paper resumes Proposal: Cycle time from 30.6 days to 7 days Program support: $3M savings Interface management: Proposal, contract, billing, and collection steps Generated $21M additional cash Engineering order release: Cycle time from 76 to 4 days Total queue time from 56 days to 60 minutes Process definition: Work package completion cycle from 4 months to 3 weeks Financial reporting: i i l i l / i i 3 - i i l i l / i i 4 / Deborah N ght nga e, 2005 Massachusetts Inst tute of Techno ogy ESD.61J 16.852J: Integrat ng the Lean Enterpr se Page Lean Enterprise Value: The Central Concept Lean is a process of eliminating waste with the goal of creating value for enterprise stakeholders. Lean Enterprise Value , Murman et al Deborah N ght nga e, 2005 Massachusetts Inst tute of Techno ogy ESD.61J 16.852J: Integrat ng the Lean Enterpr se Page Lean Works Everywhere Export licensing: 56 steps to 21 steps 52 handoffs to 5 handoffs Cycle time from 60 days to 30 days 50% 1st pass yield to >90% 1st pass yield Payroll: Reduced non-value added steps by 50% 15 forms to 1 form Reduced signatures approvals by 25% Recruiting: Cycle time from 14 days to 48 hours 50% reduction of paper resumes Proposal: Cycle time from 30.6 days to 7 days Program support: $3M savings Interface management: Proposal, contract, billing, and collection steps Generated $21M additional cash Engineering order release: Cycle time from 76 to 4 days Total queue time from 56 days to 60 minutes Process definition: Work package completion cycle from 4 months to 3 weeks Financial reporting: 13 weeks to 3 weeks i...
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This note was uploaded on 11/08/2011 for the course AERO 16.851 taught by Professor Ldavidmiller during the Fall '03 term at MIT.

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2_lean_fundament - i i le i i l i l / i i 2 Lean is a New...

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