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Lean Enterprise
Definition & Transformation
Fatma Ürek Uludağ
–Womack and Jones, Lean Thinking
“precisely specify value by specific
product,
identify the value stream for each
product,
make value flow without interruptions,
let the customer pull value from the
producer,
and pursue perfection”
Lean?
–Humble, Molesky and O’Reilly, Lean Enterprise
“a complex, adaptive system composed
of people who share a common
purpose”
Enterprise?
NUMMI
http://www.thisamericanlife.org/radio-archives/episode/403/nummi
NUMMI
Technology is not
enough!
Creative Destruction
https://www.technologyreview.com/s/519226/technology-is-wiping-out-companies-faster-than-ever/
McKinsey Global Digital
Survey 2014
tp://www.mckinsey.com/business-functions/business-technology/our-insights/the-digital-tipping-point-mckinsey-global-survey-resu
• High-performing IT organizations experience 60X fewer
failures and recover from failure 168X faster than their
lower-performing peers. They also deploy 30X more
frequently with 200X shorter lead times.
• Lean management and continuous delivery practices
create the conditions for delivering value faster,
sustainably.
• IT managers play a critical role in promoting diversity and
limiting burnout.
2015 State of DevOps Report:
10
2014 State of DevOps Report:
11
• Companies with high-performing IT organizations are twice
as likely to exceed their profitability, market share and
productivity goals.
• Culture matters. The cultural practices of DevOps are
predictive of organizational performance.
• Job satisfaction is the No. 1 predictor of performance
against organizational goals.
Continuum of Safety
Cultures
by Ron Westrum - sociologist
Portfolio Management
Lifecycle of Innovation
14
Technology Adoption
Lifecycle
15
Product Category Lifecycle
16
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
INNOVATION
PORTFOLIO
DISRUPT!!!
Explore
• Cross-functional multi-disciplined teams
• Lots of small bets
• Safe to fail experiments - only failure, is failure to learn
• Enough funding to do something, but no so much as to
do nothing
• Create a sense of urgency
• Demonstrable evidence of value to proceed
Exploit
• Create end to end value stream customer facing teams
• Continuous evaluation for funding model
• Achieving break even point
• Data-driven fact based decisions
• Maintain a sense of urgency
• Set a vision, trust the team to get there, clear blockers and
support as they proceed
• Make sharing and organisational learning easy
Sustain
• Beware of feature factory fallacy
• Keep laser focus on what is valuable - where we can
win
• Do no get lazy, success hides sub-optimal issues
• Keep discipline with fact based decisions
• What is being used, improved or removed?
• How could we disrupt or get disrupted - do we care?
Retire
• Has it serviced its purpose? Sunset
• It is providing value? Kill it?
• Are there better opportunities to invest in?
• Remove product and system complexity
• Simplify to support further innovation
• Free up funds and capability
Lean Transformation
https://www.youtube.com/watch?v=oeRXOT8lv0g
Lean Transformation Model by John
Shook
Thanks
what an organisation aspires to become.
vision is…
the business the organisation is in.
mission is…
Purpose?
- Graham Kenny, MD of Strategic Factors
“putting managers and employees in
customers’ shoes”
strategy
achieve
purpose
necessary
culture
for strategy
= +

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Lean enterprise fatma urek

Editor's Notes

  1. VALUE: Yalın Düşünce’nin başlangıç noktası “değer”dir. Değeri üretici yaratır, ama değer ancak nihai müşteri tarafından tanımlanabilir. Değeri yaratan üreticiler çoğu zaman değeri doğru tanımlayamazlar. Oysa asıl yapılması gereken, değeri müşteri perspektifinden bakarak yeniden düşünmektir. VALUE STREAM: Yalın Düşünce’nin ikinci adımı değer akışının tanımlanmasıdır. Değer akışı ham maddenin nihai ürüne dönüşme sürecindeki bir üreticiden diğer üreticiye ve son kullanıcıya kadar olan tüm aşamaları içerir ve inanılmaz boyutlarda israf barındırır. Yalın Düşünce, bir kavramın somut ürün tasarımına, uzak bir yerlerde üretilen ham maddenin kullanıcının elindeki ürüne dönüşümünün gerçekleştiği ürün yaratma sürecindeki faaliyetlerin bütününe bakabilmeyi gerektirir. FLOW (SUREKLI AKIS): Akış ilkesinin potansiyelini ilk algılayanlar Henry Ford ve ortakları olmuştur. 1913 yılında T model arabanın üretimi için gerekli çaba, son montaj hattında sürekli akış uygulanarak %90 oranında azaltılmıştır. Ancak bu yaklaşım özel koşullarla sınırlı kalmıştır. Çünkü 19 yıl boyunca hep aynı modelden çok yüksek miktarlarda üretim yapmak ancak o günün pazar koşullarında mümkün olmuştur. Günümüzde ise bir üründen milyonlarca yerine sadece onlarca veya yüzlerce talep edilen ufak parti üretim ortamında, tüm ürün çeşitleri için sürekli akışı gerçekleştirmek ve bunu müşteri talebindeki dalgalanmalara uydurmak gerekmektedir. Bunu başaran işletmelerde üretkenlik ve kalite düzeyinde ciddi sıçramalar sağlanabilmiştir. PULL: Yalın Düşünce’nin çekme ilkesi değerin müşteri tarafından kaynağından çekilmesini öngörür. Çekme, sonraki aşamalarda yer alan müşteri istemeden önceki aşamalarda hiçbir şekilde ürün ya da hizmet üretilmemesi anlamına gelir. Çekme ilkesi, nihai müşterinin belli bir ürün için yaptığı taleple başlar, ürün müşteriye ulaşana kadar geçen tüm aşamaları geriye doğru izleyip her aşamanın bir öncekinden talep etmesiyle üretimi başlatmak şeklinde uygulanır. Çekme uygulandığında stoklara gerek kalmaz, istenmeyen üretimin yol açtığı hurda ve fireler engellenir, her tezgah için çizelgeleme yapmak gerekmez, prosesin baş tarafına doğru talep dalgalanmaları oluşumu engellenir, tüm ürünlerin her türlü kombinasyonda üretilmesi mümkün olur ve talepteki değişimlere anında uyum sağlanır. Müşteriler beklentilerinin zamanında karşılanacağından emin oldukları ve stokta kalmış ürünleri elden çıkarmak için kampanyalar gerekmediği için talep de istikrar kazanır. Çekme sisteminin önemi firmalar arası değer akışına uygulandığında daha da artar. PERFECTION: Yalın Yaklaşım uygulandığında işgücü verimliliği, işin tamamlanma zamanı, stoklar, müşteriye ulaşan hatalı ürünler ile hurda oranları, ürünü pazara sunma süresi gibi parametrelerin hepsinde birden radikal iyileşmeler görülecek, çok küçük ilave maliyetlerle ürün çeşitliliği artırılabilecek ve bunlar yeni teknoloji yatırımlarına gerek kalmadan, hatta mevcut bazı ekipmanlar satılarak negatif sermaye yatırımı ile ve birkaç yıllık bir süre içinde başarılabilecektir. Mükemmelliğin en önemli hızlandırıcısı şeffaflıktır. Yalın Üretim’i uygulayan şirketlerin deneyimi üretim akış süresinde %90 azalma, üretkenlikte %100 artış, stoklarda %80 azalma, ürün geliştirme süresinde dört misli hızlanma kapasitede %30 artış sağlanabildiğini göstermektedir. Kaynak: Lean Enterprise Institute
  2. New United Motor Manufacturing, Inc. (NUMMI) was an automobile manufacturing company in Fremont, California, jointly owned by General Motors and Toyota 1984-2010 At the time of its closure, the Fremont employees were "considered the worst workforce in the automobile industry in the United States", according to the United Auto Workers. The idea of reopening the plant emerged from the need that GM had to build high-quality and profitable small cars and the need Toyota had to start building cars in the United States, a requirement due to the possibility of import restrictions by the U.S. Congress Some employers sent to Japan to learn the Toyota Production System (Kaizen!) Workers who made the transition identified the emphasis on quality and teamwork by Toyota management as what motivated a change in work ethic And almost right away, the NUMMI factory was producing cars with as few defects per 100 vehicles as those produced in Japan Many people focus on the practices and tools popularized by the TPS, such as the andon cords. One GM vice president even ordered one of his man- agers to take pictures of every inch of the NUMMI plant so they could copy it precisely. The result was a factory with andon cords but with nobody pulling them because managers (following the principle of extrinsic motivation) were incentivized by the rate at which automobiles—of any quality—came off the line.
  3. Labor productivity, both corrected and uncorrected for differences in product and technology, was much higher at NUMMI than at the old GM-Fremont plant in 1978 and at the GM-Framingham plant. (Krafcik chose Framingham because it was a GM plant somewhat comparable in product and technology mix to NUMMI.) By 1986, NUMMI was almost as productive as its sister plant in Takaoka and more productive than any other GM plant. This performance is all the more impressive when it is recalled that the NUMMI work force was on average some 10 years older than Takaoka’s, and younger workers are in general better equipped to deal with the pressures of assembly line work.
  4. Creative Destruction (Yaratici Yikim) - Joseph A. Schumpeter: oluşan yeni olguların, diğer olguları eskiteceğini ve zamanla yıkacağını savunan görüş. ayrıca yeni bir sistem üretmek için eski sistemi yok etmek gerektiğini savunur. S&P 500 borsa endeksi, Standard & Poor's tarafından yapılmaktadır. 500 büyük Amerikan şirketini kapsamaktadır. Amerikan hisse senedi piyasasının yaklaşık %75'ini kapsar Bu arastirmaya gore; buyuk sirketler bile hayatlarini surdurebilmek icin varolan urunlerinin yani sira yeni urunler sunmaya mecburdur.
  5. Pathological organizations are characterized by large amounts of fear and threat. People often hoard information or withhold it for political reasons, or distort it to make themselves look better. Bureaucratic organizations protect departments. Those in the department want to maintain their “turf,” insist on their own rules, and generally do things by the book—their book. Generative organizations focus on the mission. How do we accomplish our goal? Everything is subordinated to good performance, to doing what we are supposed to do.
  6. Over time, all successful ideas, whether technologies, product categories, business models, or even methodologies, progress from being scarce and unevenly distributed to eventually becoming a commodity. They then form building blocks for new, higher-level, more valuable innovations. Of course the time it takes for innovations to progress through the various stages of the cycle can vary substantially. ubiquity: aynı zamanda birçok yerde mevcut olma
  7. Rogers believed people could be classified into groups based on how they respond to innovation Initially, new technologies and ideas are experimented with and tested by innovators, which form the smallest group of the overall population. As innovators discover technologies that provide competitive advantage (most will not), these technologies are taken up by the early adopters. In this way, success in each group leads to further diffusion through the other groups. Rogers’ ideas were popularized and built upon by Geoffrey Moore, who introduced the concept of the “chasm” a logical divide between uptake by early adopters and the early majority. This chasm was inspired by Moore’s observation that many innovations flounder once they are no longer seen as a source of competitive advantage by visionaries, but are not yet sufficiently established to be seen as a safe bet or proven practice by people in the early majority.
  8. Once the market has assimilated a disruptive new technology or idea, a whole range of product offerings gets spawned. A successful product category will initially see high growth (stage B), followed by a mature market (stage C) in which consolidation takes place. Growth in mature markets is typically driven by acquiring competitors and new customers as well as by efficiency gains. Finally, product categories decline (stage D). At any point, a category can be disrupted by some new innovation—indeed an innovation is defined as “disruptive” based on its effect on existing product categories and business models. Even in the face of disruption, it’s sometimes possible to maintain a lucrative niche market; for instance, feature phones are still an important category in many countries, and IBM still has a profitable mainframe business. The first point to observe is that products at different stages of maturity vary significantly in terms of how they are managed, developed, marketed, and funded. For example, in a mature market we have a good understanding of our customers and the value they get from the product; acquiring new customer or selling new products to existing ones is well understood, and new products in the category typically contain only incremental innovations. For new categories, the opposite is true. While there is a lot of detail involved in understanding these different stages of the lifecycle, such as whether our customers are other businesses or consumers, we can get to the important discussion by drastically simplifying the problem and looking at two key activities that all enterprises will engage in: exploring new product categories and business models, and exploiting the proven ones. Steve Blank refers to these activities as “search” and “execute” in the context of customer development.
  9. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  10. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  11. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  12. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  13. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  14. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  15. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  16. Startups begin by exploring new opportunities through business model innovation: they search for a new business model that is aligned with the founders’ purpose and vision, delivers value for customers, and can drive the profitability and growth of the organization. Once it is found, the business model is exploited by growing and scaling it, finding ways to drive down costs, improve efficiency, and increase market share and customer base. However, every business model is ultimately transient: eventually, every business model and product category will be disrupted by new ones—it is only a matter of time.
  17. Demonstrable:ispat edilebililr
  18. fallacy: yanilgi
  19. ‘Cost of Delay’ or the ‘Improvement Kata’ 1. What is the purpose of the change–what true north and value are we providing, or simply: what problem are we trying to solve? 2. How are we improving the actual work? 3. How are we building capability? 4. What leadership behaviors and management systems are required to support this new way of working? 5. What basic thinking, mindset, or assumptions comprise the existing culture, and are we driving this transformation?
  20. Creating, updating, and communicating the company’s purpose is the responsibility of the enterprise’s executives.
  21. Creating, updating, and communicating the company’s purpose is the responsi- bility of the enterprise’s executives. Their other responsibilities include creating a strategy through which the company will achieve its purpose and growing the culture necessary for that strategy to succeed. Both strategy and culture will evolve in response to changes in the environment, and leaders are respon- sible for directing this evolution and for ensuring that culture and strategy sup- port each other to achieve the purpose. If leaders do a good job, the organiza- tion will be able to adapt, to discover and meet the changing customer needs, and to remain resilient to unexpected events. This is the essence of good governance.