CLEZXN84302-19-99HolisticFramework-AllwayCONFIDENTIALFebruary19,1999LeanManufacturingImplementation(AHolisticFramework)McKINSEYMANUFACTURINGPRACTICEMcKinseyManufacturingPracticeOffSiteMeetingCLEZXN84302-19-99HolisticFramework-Allway2DOCUMENTPURPOSEAleantransformationisacomplexprocessencompassingalldisciplineswithinanorganization.Asuccessfultransformationrequiresthatalldisciplinesunderstandandworktowardasharedgoalofproducingthehighestqualitygoods,ontime,andatthelowestpossiblecostbysystematicallyeliminatingwaste.TheMMPleantransformationmethodemploysaholisticviewtoemployallaspectsoftheorganization.Thepurposeofthisdocumentistoserveasa“checklist”andprovideaframeworktoholisticleantransformations.Itisintendedtobedynamicandthereforeshouldberegularlyupdatedandmodified.ThefundamentalmissionoftheMMPHolisticApproachistoaligntheorganizationtothephilosophiesofleanproductionandensuresuccessfulandtimelytransformationoftheorganization.CLEZXN84302-19-99HolisticFramework-Allway3ASSUMINGTHEBUSINESSCASEISMADE,THEMMPHOLISTICAPPROACHEMPLOYSFIVEBASICSTEPSBuildwilltochangeDefinevisionandchangeprogramCommunicatethevisionBuildSustainAssumption:BusinesscaseforleantransformationunderstoodDevelopvision&implementationplanCurrentconditionVisionofidealcondition1Changeprogramandimplementationplans3Targetlevelofideal20CommunicationUnderstandingCommitmentActionModelcellModel/productlineLeanplantLeanenterpriseLeansupplychainLeadershipmaturationSupplychainintegration&maturationPhysicaltransformationOrganizationaltransformationSeniormanagementunderstandingSeniormanagementcommitmentBusinesscaseAPDCCLEZXN84302-19-99HolisticFramework-Allway4Leadershipcommitment•Clearmanagementperformanceexpectationsandtargets•Personalownershipandbuy-in•Processestablishedtomaintainaccountability•Haveandcommunicatesenseofurgency•Reinforcebysymbolicactions(barrierelimination)Businesscase•Performancegap•Financialcaseestablished•ApproachsolvesbusinessproblemsUnderstandingof:•Principlesofleantransformation•Howleanwillsolvebusinessproblems•Scope,scale,timeframeofchange•Leadershiprolesandresponsibilities•Organizationalresources•Opportunitiestochange“thegame”Understandingofstrategy-operationslinkSENIORMANAGEMENTPLAYSASIGNIFICANTROLEINTHESUCCESSOFAHOLISTICLEANTRANSFORMATIONSeniorManagement’sexpectationmustbeclearlycommunicatedandunderstoodbytheorganizationStep2Step3Step4Step5AssumptionStep1Leadership“will”tochangeestablishedCLEZXN84302-19-99HolisticFramework-Allway5KeyItems:•Utilizingtheinitialdiagnostictodefinemarketproducts,costtargets,andexternalforces(market,environment,government,workforce,technology)•Creatematerialandinformationflowdiagramsforcurrentandfuturestate;evaluateorganizationalstructureandvision•Determinetheapplicationbasedoncurrentleanknowledge,changecapability,andimpact•Defineimplementationplanandattainmanagementbuy-in•Appointmentofappropriatechangeagents•Definitionofnecessaryresourcesrequired•Clearlydefineperformanceimprovementtargets•Identifybarriersandplanforcountermeasures•Identifynecessarychangesinorganizationalleadershipandsupportsystems•DoestargetlevelofidealsolvebusinessproblemandensurecommitmentofseniormanagementDEFINETHEVISIONANDCHANGEPROGRAMThejourneymuststartwithathoroughunderstandingofthecurrentstate,aswellasthevisionofthefuturestate.DevelopimplementationplanstoattainvisionDeve...
