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Summary
Summary
This book provides executives, managers and educators with a comprehensive implementation plan for implementing enterprise-wide lean. Using the Lean Extended Enterprise Reference Model (LEERM), it demonstrates that by deploying the right methodologies and technologies to the right situation you can achieve breakthroughs in performance. It also illustrates how to integrate lean, six sigma, kaizen and enterprise resources planning into a total business improvement initiative, beyond the four walls of an organization.
Author Notes
Terence T. Burton, President, Center for Excellence in Operations, Inc., has over thirty years of experience in manufacturing, quality assurance, engineering, materials management, purchasing, distribution, and management consulting. Terry holds a BS and MS in Industrial Engineering from the University of New Haven and an MBA from Boston University. He is a certified Six Sigma Black Belt, a national LEAN SIG Chairman and a CPIM certified member of APICS, and a frequent instructor/educator and speaker at various industry events. Terry has hundreds of published articles to his credit on Lean, Six Sigma, Supply Chain, and Accelerated Product Development and is the author of four books by Prentice-Hall and Harcourt Brace.Steven M. Boeder is currently Plant Manager at Traex Company, Unit of Libbey, Inc. Steve has over twenty-two years of experience in production, materials management, purchasing, quality, and information technology. Steve has extensive implementation experience in Lean Manufacturing, and serves as a frequent instructor on the subject at the University of Wisconsin's Management Institute. He holds a BS in Business Administration from the University of Wisconsin, an MBA from Edgewood College, and is a CPIM and CIRM certified member of APICS and AME. He has also served as National LEAN SIG Chairman of APICS.
Table of Contents
Preface | p. vii |
Acknowledgments | p. xv |
The Authors | p. xvii |
About APICS | p. xix |
Web Added Value | p. xxi |
1 Introduction to the Lean Extended Enterprise | p. 1 |
The Lean Extended Enterprise: The Next Frontier of Improvement | p. 8 |
Benefits of the Lean Extended Enterprise | p. 11 |
Learn Before You Lean | p. 12 |
Responding to the Demand-Slide Economy | p. 16 |
Case Study 1 Boeing | p. 18 |
Case Study 2 Dell Computer Corporation | p. 20 |
Case Study 3 Rockwell Automation Power Systems | p. 21 |
Case Study 4 Ford Motor Company | p. 22 |
Case Study 5 Lockheed Martin Tactical Aircraft Systems | p. 24 |
Chapter 1 Take-Aways | p. 25 |
Suggested Further Reading | p. 26 |
2 The Lean Extended Enterprise Reference Model | p. 27 |
Overview of the Lean Extended Enterprise Reference Model | p. 27 |
Strategic Journey Panel | p. 30 |
Best Practices and Principles Panel | p. 31 |
Implementation Panel | p. 32 |
Methodologies, Tools, and Enabling Technologies Panel | p. 41 |
Does the LEERM Apply to Service Organizations? | p. 44 |
Summary of the LEERM | p. 45 |
Chapter 2 Take-Aways | p. 46 |
Suggested Further Reading | p. 47 |
3 Leadership and Infrastructure Development for the Lean Extended Enterprise | p. 49 |
Strategic Improvement Is a Core Competency | p. 50 |
Top Ten Pitfalls of Strategic Business Improvement | p. 51 |
Cultural Transformation--Not Steady-State | p. 63 |
It's Not All Management's Fault | p. 64 |
Get Better or Get Worse | p. 65 |
Chapter 3 Take-Aways | p. 68 |
Suggested Further Reading | p. 70 |
4 Kaizen: Quick-Strike Opportunities in the Lean Extended Enterprise | p. 71 |
Kaizen Defined | p. 72 |
Application of Kaizen with the LEERM | p. 73 |
Categories of Waste | p. 76 |
Kaizen Types | p. 77 |
Selecting the Right Kaizen Events | p. 79 |
The Kaizen Framework | p. 80 |
Kaizen Blitz | p. 89 |
Kaizen Super Blitz | p. 92 |
Change Management | p. 93 |
Chapter 4 Take-Aways | p. 95 |
Suggested Further Reading | p. 96 |
5 The New Generations of Lean | p. 99 |
Beyond the Five Key Lean Principles | p. 100 |
Benefits of Lean Thinking | p. 103 |
Lean Tools for the Lean Extended Enterprise | p. 106 |
Reminder: Learn Before You Lean | p. 123 |
Chapter 5 Take-Aways | p. 124 |
Suggested Further Reading | p. 125 |
6 Six Sigma: A Management Revolution Well Under Way | p. 127 |
What Is Six Sigma? | p. 128 |
Perfection, Deep Core Drilling, and High Impact | p. 128 |
Understand, Explain, and Eliminate Process Variation | p. 130 |
3M: A Rapid Adopter of Six Sigma | p. 131 |
Statistical Engineering Meets Common Sense | p. 132 |
The Proof Is in the Process | p. 134 |
How to Become a Six Sigma Believer | p. 135 |
Project Selection: The Key to Success | p. 137 |
Design for Six Sigma | p. 138 |
How Six Sigma Enables the Lean Extended Enterprise | p. 139 |
The Future of Six Sigma | p. 142 |
Case Study 1 Process Capability Improves Inventory Performance | p. 143 |
Case Study 2 Gage R&R Reduces Supply Chain Costs | p. 144 |
Chapter 6 Take-Aways | p. 147 |
Suggested Further Reading | p. 148 |
7 Beyond ERP: Deploying the Right Enabling Technologies | p. 149 |
ERP: Building Block or Road Block | p. 150 |
ERP Enables Lean and Continuous Improvement | p. 152 |
Beyond ERP to the Extended Enterprise Architecture | p. 154 |
Supply Chain Management | p. 158 |
Advanced Planning and Scheduling | p. 160 |
Customer Relationship Management | p. 161 |
Product Life Cycle Management | p. 162 |
Supplier Relationship Management | p. 163 |
Networks, Exchanges, and Portals | p. 164 |
Third-Party Services | p. 165 |
A New IT Business Model Is Needed | p. 165 |
Chapter 7 Take-Aways | p. 167 |
Suggested Further Reading | p. 168 |
8 Everything Begins and Ends with Performance Measurement | p. 169 |
Performance Measurement and the Lean Extended Enterprise | p. 170 |
The Lean Extended Enterprise Assessment Process | p. 174 |
Chapter 8 Take-Aways | p. 177 |
Suggested Further Reading | p. 178 |
The Lean Extended Enterprise Assessment Process | p. 179 |
9 Value Stream Integration: A Key Element of Success | p. 225 |
Consistency of Integration | p. 225 |
The Dimensions of Value Stream Integration | p. 226 |
Integration of Improvement Methodologies | p. 229 |
Education, Knowledge, and Skills Development | p. 233 |
Find the Leadership and Hero within Yourself | p. 235 |
Improvement Is Always Necessary | p. 238 |
Stop the Ham Sandwich Improvements | p. 239 |
Chapter 9 Take-Aways | p. 240 |
Suggested Further Reading | p. 241 |
10 The Lean Extended Enterprise: Bring It On | p. 243 |
Lean Begins with Leadership | p. 245 |
Culture Is the Foundation | p. 246 |
It Takes Focus, Not Hocus Pocus | p. 247 |
Success Can Be Failure in Disguise | p. 250 |
On a Roll Versus Owning the Roll | p. 251 |
Personal Discovery Moments Transform Culture | p. 253 |
The Cycle of Improvement | p. 254 |
Ten Most Valuable LEERM Lessons Learned | p. 256 |
Parting Thoughts | p. 261 |
Chapter 10 Take-Aways | p. 262 |
Index | p. 265 |