2. Kent Sears
Vice President
General Motors
North America
Manufacturing Processes
and GMS Implementation
Kent Sears
Vice President
General Motors
North America
Manufacturing Processes
and GMS Implementation
John Shook
Senior Advisor
Lean Enterprise Institute
President
TWI Network
John Shook
Senior Advisor
Lean Enterprise Institute
President
TWI Network
3. Today’s PresentationToday’s Presentation
History of Lean at GM
Taking Lean to the Enterprise
“Learning to See”
Value Stream Mapping
Nature of office work
History of Lean at GM
Taking Lean to the Enterprise
“Learning to See”
Value Stream Mapping
Nature of office work
4. The Awakening…The Awakening…
Feeling the competitive threat
Toyota introduces something new
GM and Toyota negotiate
NUMMI joint venture
– Toyota Production System
– Manufacturing in the United States
Feeling the competitive threat
Toyota introduces something new
GM and Toyota negotiate
NUMMI joint venture
– Toyota Production System
– Manufacturing in the United States
5. “All GM plants“All GM plants are a part of the same companyare a part of the same company
and must operate withand must operate with oneone production systemproduction system
with common elements…run common, run lean”with common elements…run common, run lean”
Jack Smith
past
GM Chairman
6. Lean HistoryLean History
GM Global Manufacturing System
Develop leadership
Deliver superior business results
Build value and reduce waste
GM Global Manufacturing System
Develop leadership
Deliver superior business results
Build value and reduce waste
8. Global Manufacturing SystemGlobal Manufacturing System
LEAN thinking leadership
Exceptional business results
Sustained performance improvement
Competition was not standing still!
Fierce competitive pressures
LEAN thinking leadership
Exceptional business results
Sustained performance improvement
Competition was not standing still!
Fierce competitive pressures
9. The ChallengeThe Challenge
Leverage the learning
Optimize the whole
Leverage the learning
Optimize the whole
Accelerate performance
Competitive challenge
Accelerate performance
Competitive challenge
10. Success with Lean in manufacturing was
difficult and took a long time.
Was taking GMS, GM’s Lean production
system, from the plant to the office even
possible?
Success with Lean in manufacturing was
difficult and took a long time.
Was taking GMS, GM’s Lean production
system, from the plant to the office even
possible?
Lean at General Motors:
From the plant to the office
Lean at General Motors:
From the plant to the office
11. NUMMI: The Success Story:
Lean Success with a UAW Workforce
Agreement between Toyota and GM:
Toyota manages the plant and
implements the Toyota Production System
Almost all former GM workers offered jobs:
Including the old “troublemakers”
Extensive training program:
Over 600 employees sent to Japan for training
Over 400 trainers sent from Japan to NUMMI
About 30 managers or "coordinators"
from Japan
Results: Quality Equal to Takaoka Japan
Productivity Close to Takaoka Japan
12. NUMMI: The Other Story
What did the JV partners really get?
The Business Agreement:
Toyota manages the plant and
implements the Toyota Production System
The Business Case for GM:
Small profitable car
TPS
Idle capacity – plant and people
The Business Case for Toyota:
??
Results: GM ??
Toyota ??
13. The Toyota Production SystemThe Toyota Production System
Just in TimeJust in Time
“The right part“The right part
at the right timeat the right time
in the right amount”in the right amount”
•Continuous Flow
•Pull System
•Takt Time
Leveled ProductionLeveled Production
JidokaJidoka
Production LinesProduction Lines
That Stop forThat Stop for
AbnormalitiesAbnormalities
•Automatic Machine Stop
•Fixed Position Line Stop
•Error Proofing
•Visual Control
•Labor-Machine Efficiency
Standardized Work Robust Products and Processes
Preventative Maintenance; 4S Supplier Involvement
Best QualityBest Quality -- Lowest CostLowest Cost -- Shortest Lead TimeShortest Lead Time
Through Shortening the Production Flow By Eliminating WasteThrough Shortening the Production Flow By Eliminating Waste
“Built“Built--in Quality”in Quality”
Operational Stability and KaizenOperational Stability and Kaizen
14. What could GM, or any company, do??
Toyota is Toyota.
We can learn from them, but we can’t
copy them exactly.
How can we operationalize the same
principles in our own organizations?
15. Lean Thinking
Womack and Jones’ Five-Step Approach has
been followed by many:
1. Find a change agent (how about you?)
2. Find a sensei (a teacher)
3. Seize or create a crisis
4. Map your value streams
5. Pick something and get started
But, many skipped Step Four and jumped from
Step Three to Step Five.
18. VALUEVALUE--STREAM IMPROVEMENTSTREAM IMPROVEMENT
and PROCESS IMPROVEMENTand PROCESS IMPROVEMENT
Raw
Material
PROCESS
VALUE STREAM
Finished
Product
PROCESSPROCESS
Stamping Welding
Assembly
Cell
• Order to Delivery
• Concept to Launch
• Life Cycle Maintenance and Service
20. What To Do?What To Do?What To Do?
Reduce Lead Time!Reduce Lead Time!
–– Get each process to produce only whatGet each process to produce only what
the next process needs when it needs it.the next process needs when it needs it.
–– Orchestrate (control, manage, regulate)Orchestrate (control, manage, regulate)
operations to get ever closer to this ideal,operations to get ever closer to this ideal,
ever shortening the lead time.ever shortening the lead time.
ORDER CASH
“All we’re trying to do is shorten the time line…”
Taiichi Ohno
23. Takt Time = 58
FutureFuture--State MapState Map
<5d
24. The Work Plan
and Implementation
The Work PlanThe Work Plan
and Implementationand Implementation
Product
Family
Current-
State
Drawing
Work Plan and
Implementation
Future-State
Drawing
A Detailed Plan of How to Get There
•Step-by-step -- When, Who, How
•Clear checkpoints with
•real deadlines and
•named reviewers
•reviewable outcomes
A Detailed Plan of How to Get There
•Step-by-step -- When, Who, How
•Clear checkpoints with
•real deadlines and
•named reviewers
•reviewable outcomes
25. EXTENDED V.S. GOALS Person REVIEW
V.S. OBJECTIVES (measurable) YEARLY TIMELINE In
and PLANT and Charge
OBJECTIVES ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12
Value-Stream
Value-Stream MANAGER
DATE
INITIALS
Value-Stream Plan
27. Lean: From the “Gemba” to the OfficeLean: From the “Gemba” to the Office
What’s so different, really, between the
“Gemba” (the plant floor or the “real place”)
and the office?
The office is also a “Gemba”.
How should we think about the Office
Gemba?
Let’s use the Value Stream Mapping tool.
How?
What’s so different, really, between the
“Gemba” (the plant floor or the “real place”)
and the office?
The office is also a “Gemba”.
How should we think about the Office
Gemba?
Let’s use the Value Stream Mapping tool.
How?
28. Applying VSM to the Office Gemba
-- What we knew
Applying VSM to the Office Gemba
-- What we knew
Lean works everywhere we’ve tried it.
Leadership will be key.
Learning must be the focus.
Lean works everywhere we’ve tried it.
Leadership will be key.
Learning must be the focus.
29. Applying VSM to the Office Gemba
-- What we thought
Applying VSM to the Office Gemba
-- What we thought
A workshop will be an effective process.
If we provide good training and clear
expectations, excellent GM people will
deliver results.
The specific benefits of the VSM tool are
natural for the Office Gemba.
A workshop will be an effective process.
If we provide good training and clear
expectations, excellent GM people will
deliver results.
The specific benefits of the VSM tool are
natural for the Office Gemba.
30. Applying VSM to the Office Gemba
-- Some initial bothersome questions
Applying VSM to the Office Gemba
-- Some initial bothersome questions
Can we distinguish work (“material”) flow from
information (“control information”) flow?
Can we do system Kaizen as well as process or
point Kaizen?
What is “waste” in the Office Gemba?
What about “creative” or “knowledge-based”
work?
How to think about the “core value stream”, the
real work of the business, versus support
processes?
How to think about internal customers vs.
external customers?
Can we distinguish work (“material”) flow from
information (“control information”) flow?
Can we do system Kaizen as well as process or
point Kaizen?
What is “waste” in the Office Gemba?
What about “creative” or “knowledge-based”
work?
How to think about the “core value stream”, the
real work of the business, versus support
processes?
How to think about internal customers vs.
external customers?
32. “The aim of the Product Development
process is the creation of Profitable Value
Streams.”
“The aim of the Product Development
process is the creation of Profitable Value
Streams.”
Product Development as an
example function…
Product Development as anProduct Development as an
example function…example function…
-- Al Ward
33. In Overall Value Stream Terms…
THE VALUE STREAM
Define value from the perspective of the customer
What the
customer wants
when he/she
wants it
Support
Processes
Support
Processes
Support
Processes
Support
Processes
Support
Processes
34. Insurance Claim Processing
Compile
Folder
with
Docs
Receiving:
Open &
Array Docs
Verify
Claim
Calculate
Amount &
Address
Print,
Stuff &
Mail
Check
Policy Holder’s
Family
Funeral Home
FIFO FIFO FIFO
2 Min 5 Min 10 Min 1 Min 1 Min
P/T =
L/T =
# inputs =
Reliability =
P/T =
L/T =
%C&A =
# ops =
P/T =
L/T =
% rejects =
Reliability =
P/T =
L/T =
% rework =
# ops =
P/T =
L/T =
Reliability =
% errors =
7 Days7 Days7 Days7 Days
FIFO
28 Days
19 Min
email mail
manualfinan
Process Box
Process Data
Box
Inbox Queue
Customer/
Supplier
Technology
Used
Work Priority:
FIFO
System Metric
Information System Output
35. Getting StartedGetting Started
Communicating the vision
Leadership buy-in
Mapping the flow of value
Let’s go big!
Communicating the vision
Leadership buy-in
Mapping the flow of value
Let’s go big!
36. Roll Out Process:Roll Out Process:
Shared vision
Leadership engagement
Dedicated resource
Clear objective
Simple metrics
Detailed strategy
Individual accountability
Monitoring and follow up
Shared vision
Leadership engagement
Dedicated resource
Clear objective
Simple metrics
Detailed strategy
Individual accountability
Monitoring and follow up
37. Shared VisionShared Vision
Lean principles apply equally well in the
office and on the factory floor
Using lean thinking to optimize the
enterprise
Lean principles apply equally well in the
office and on the factory floor
Using lean thinking to optimize the
enterprise
38. Leadership EngagementLeadership Engagement
“Top 50” leadership meeting
– Dr. James P. Womack
Extensive debate
“All in” consensus
Taking LEAN to the enterprise
“Top 50” leadership meeting
– Dr. James P. Womack
Extensive debate
“All in” consensus
Taking LEAN to the enterprise
39. Dedicated ResourceDedicated Resource
Candidate selection
Selection process
– High potential list
– North American Strategy Board approval
GMS Functional Implementation Leader
– 13 executives assigned
Candidate selection
Selection process
– High potential list
– North American Strategy Board approval
GMS Functional Implementation Leader
– 13 executives assigned
41. Dedicated ResourceDedicated Resource
Training
– Lean principles
– “Learning to See”
Value Stream Mapping
– Facilitation and coaching training
– Workshop mentoring
Training
– Lean principles
– “Learning to See”
Value Stream Mapping
– Facilitation and coaching training
– Workshop mentoring
42. Roles and ResponsibilitiesRoles and Responsibilities
Leadership development
– Leadership matrix
Deliver results
– Manage the process
– Coach and support
Leadership development
– Leadership matrix
Deliver results
– Manage the process
– Coach and support
43. Clear ObjectiveClear Objective
Confirm our original hypothesis
– “Lean Applies Everywhere”
Not just a philosophical exercise
Urgency and context
$1 Billion/year Structural Cost
Improvement
Confirm our original hypothesis
– “Lean Applies Everywhere”
Not just a philosophical exercise
Urgency and context
$1 Billion/year Structural Cost
Improvement
45. Detailed StrategyDetailed Strategy
Needed a NEW approach
Not just:
– Belt tightening
– Head count reduction
Lean Principles and Value Stream Mapping
Hidden processes
Optimize the Enterprise value streams
Needed a NEW approach
Not just:
– Belt tightening
– Head count reduction
Lean Principles and Value Stream Mapping
Hidden processes
Optimize the Enterprise value streams
46. The New Way: Lean ApproachThe New Way: Lean Approach
Planning R&D
Financial
HR
WWP
Labor Relations
IS & S
Legal
Communications
DesignDesign EngEng MfgMfgEngEng SellSell
ActAct
PlanPlan
DoDo
CheckCheck
Product
Plan
Product
Plan
Customer
Dealer
Customer
Dealer
Leadership
Board
Leadership
Board
47. ScopingScoping
Project sponsor
Process owner
Project purpose statement
Metrics
Customer and customer requirements
Process data set
Workshop participants
Leadership panel
Project sponsor
Process owner
Project purpose statement
Metrics
Customer and customer requirements
Process data set
Workshop participants
Leadership panel
48. Conducting the WorkshopConducting the Workshop
Participant training
Current state map
Waste and root cause identification
Applying lean principles
Future state map
Leadership review
Implementation planning
Leadership panel approval
Participant training
Current state map
Waste and root cause identification
Applying lean principles
Future state map
Leadership review
Implementation planning
Leadership panel approval
49. Enablers for SuccessEnablers for Success
Leadership engagement
Business objective
Project scope
Workshop participants
Quantifiable metrics
Bold moves
Implementation planning
Bottom line results
Leadership engagement
Business objective
Project scope
Workshop participants
Quantifiable metrics
Bold moves
Implementation planning
Bottom line results
50. Value Stream Mapping StatusValue Stream Mapping Status
Lean-VSM Training 4000
Workshops 200
Workshop participants 3500
Hundreds of $Millions Saved $$$
Lean-VSM Training 4000
Workshops 200
Workshop participants 3500
Hundreds of $Millions Saved $$$
51. How it went…How it went…
The EVSM Workshops were successful.
They were not easy:
- not easy to map the Current State
- not easy to map the Future State
- not easy to get enough learning in the
right people quickly enough
The project to apply Lean (GMS) to the enterprise
was successful by any measure.
The EVSM Workshops were successful.
They were not easy:
- not easy to map the Current State
- not easy to map the Future State
- not easy to get enough learning in the
right people quickly enough
The project to apply Lean (GMS) to the enterprise
was successful by any measure.
53. The Nature of Office WorkThe Nature of Office Work
Value is always assumed:
Question the value of everything!
Value is always assumed:
Question the value of everything!
54. The Nature of Office WorkThe Nature of Office Work
Office processes are not visible
All process steps are not comprehended
Business processes rarely operate as
expected
Mapping exposes the hidden
process
Office processes are not visible
All process steps are not comprehended
Business processes rarely operate as
expected
Mapping exposes the hidden
process
55. The Nature of Office WorkThe Nature of Office Work
Standardized work is the fundamental building
block of lean
There are two types of work in the office:
Creative and Transactional
Contrary to popular belief the majority of is
transactional
Even the creative process can be standardized
Standardized work has wide
application
Standardized work is the fundamental building
block of lean
There are two types of work in the office:
Creative and Transactional
Contrary to popular belief the majority of is
transactional
Even the creative process can be standardized
Standardized work has wide
application
56. The Nature of Office WorkThe Nature of Office Work
Are the customer requirements
understood?
Are they detailed and specific?
Unfortunately, in the office this is not the
case
First time quality is extremely low (5-15%)
Built-in-Quality is the key
Are the customer requirements
understood?
Are they detailed and specific?
Unfortunately, in the office this is not the
case
First time quality is extremely low (5-15%)
BuiltBuilt--inin--Quality is the keyQuality is the key
57. The Nature of Office WorkThe Nature of Office Work
What constitutes inventory in the office?
Primary value streams generally lack ownership
Process flow breaks down at the functional
intersection
There are few formal tools to manage this
discontinuity
Lean material flow strategies can
help
What constitutes inventory in the office?
Primary value streams generally lack ownership
Process flow breaks down at the functional
intersection
There are few formal tools to manage this
discontinuity
Lean material flow strategies can
help
58. The Nature of Office WorkThe Nature of Office Work
Performance metrics are not widely used
Process out-puts may be measured
Effectiveness and efficiency are not!
Waste reduction opportunity is
consistently greater than
Performance metrics are not widely used
Process out-puts may be measured
Effectiveness and efficiency are not!
Waste reduction opportunity is
consistently greater than
40%
59. Consider the Notion…Consider the Notion…
If nearly half of what we do in the office is
non-value added waste why would our
organization allow it to exist?
If nearly half of what we do in the office is
non-value added waste why would our
organization allow it to exist?
60. EVSM at GM
-- Reflections
EVSM at GM
-- Reflections
Value Stream Mapping proved to be even
more powerful in the office than it is in the
factory.
But, the real key to the project success was
the leadership provided by GM senior
management.
Value Stream Mapping proved to be even
more powerful in the office than it is in the
factory.
But, the real key to the project success was
the leadership provided by GM senior
management.