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16_ent_integrat - Enterprise Integration for Value Creation...

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Professor Deborah Nightingale November 7, 2005 Enterprise Integration for Value Creation
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Lean Enterprise Transformation Issues Why do many lean transformation activities fail? What are the key success factors in implementing lean enterprise wide? How can we better assure that lean will impact bottom line results? Are there certain activities that are ideally performed before others? How do we assess an organization’s “readiness to change”? ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 2
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Key Questions Regarding Enterprises What are the key elements and interrelationships that comprise the “enterprise system”? What are the key attributes of the successful enterprise? How do you organize to deliver best value to the full set of enterprise stakeholders in context of a given business model? What measures and incentives are most effective in context of enterprise structural and behavioral factors? Are enterprises are more effective if processes are standardized and managed at the enterprise level rather than localized level? How can knowledge be integrated across an extended enterprise that crosses individual single enterprise (e.g., company) boundaries? How do you architect an enterprise that can most effectively produce a desired ‘product system’ ? ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 3
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Define Enterprise in a Lean Context “A lean enterprise is an integrated entity that efficiently creates value for its multiple stakeholders by employing lean principles and practices.” Source: Murman et al., Lean Enterprise Value , Palgrave, 2002 ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 4
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Customer Product Development Supplier Network Product Support Finance, H/R, Legal, etc... Manufacturing Integrated Enterprise Operations ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 5
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Lean Enterprise System • A Lean Enterprise Requires the Integration of • Processes • People / Organization • Information • Technology • Products • Holistic View • Enterprise as a System ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 6
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What Does It Mean to Integrate? Why Integrate? Where in the enterprise should integration take place? How much integration? Who needs to be involved in the integration process? ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 7
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Enterprise System Issues • Standardization Across products, processes, technology and information management • Integration Within and across enterprise boundaries • Leadership Required for complex transformation “Enterprise Engineering” New expanded tool set required ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 8
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