16.852J | Fall 2005 | Graduate

Integrating the Lean Enterprise

Readings

Required Readings

Womack, James P., and Daniel T. Jones. Lean Thinking. New York, NY: Simon and Schuster, 2003. ISBN: 0743249275.

Murman, Earll. Lean Enterprise Value. New York, NY: Palgrave Macmillan, 2002. ISBN: 0333976975.

Additional articles throughout the term (see table below).

References

Rother, Mike, John Shook, Jim Womack, and Dan Jones. Learning to See. Cambridge, MA: Lean Enterprise Institute, 2003. ISBN: 0966784308.

Womack, James, Daniel Jones, and Daniel Roos. The Machine That Changed the World. New York, NY: Harper Collins, 1991. ISBN: 0060974176.

Readings by Session

SES # TOPICS READINGS
1

Introduction/Class Overview

Team Projects

Class Survey

Desired Outcomes

Syllabus

Course Overview

 
2

Lean Fundamentals

Lean Concepts and Principles

MIT Lean Enterprise Model (LEM)

Value Stream Analysis and Mapping (VSA/VSM)

Enterprise Value Stream Mapping and Analysis (EVSMA)

“Mapping Your Value Stream” Video

Readings

Womack. Lean Thinking. Chapters 1-5.

Murman. Lean Enterprise Value. Chapters 3-4.

Spear, Steven, and H. Kent Bowen. “Decoding the DNA of the Toyota Production System.” Harvard Business Review (September 1, 1999).

References

Introduction to Lean Enterprise Concepts.” On-line DAU module.

Nightingale, D., and Alexis Stanke. EVSMA Guide: Enterprise Value Stream Mapping and Analysis. Release 1.0, August 2005. Lean Aerospace Initiative.

3

Lean Enterprises

Enterprise Components and Stakeholders

Enterprise Process Architecture

Three Levels of Enterprises

Enterprise Value Streams

Readings

Murman. Lean Enterprise Value. Chapters 5-6.

Womack. Lean Thinking. Chapters 12-13.

Womack, James, and Daniel Jones. “From Lean Production to the Lean Enterprise.” Harvard Business Review (March 1, 1994).

Sundaram, Anant, and Andrew Inkpen. “The Corporate Objective Revisited.” Organization Science 15, no. 3 (2004): 350-363.

Freeman, R. Edward, Andrew Wicks, and Bidhan Parmar. “Stakeholder Theory and the Corporate Objective Revisited.” Organization Science 15, no. 3 (2004): 364-369.

Hallam, Cory. Executive Summary in “Lean Enterprise Self-Assessment as a Leading Indicator for Accelerating Transformation in the Aerospace Industry.” MIT Thesis, May 2003. (PDF)

4

Value and Enterprise Stakeholders

Value Creation Framework

Identifying Stakeholder Values

Readings

Murman. Lean Enterprise Value. Chapters 7-8.

Rebentisch, Eric, Edward Crawley, Geilson Loureiro, John Dickmann, and Sandro Catanzaro. “Using Stakeholder Value Analysis to Build Exploration Sustainability.” (PDF)

Grossi, Ignacio. “Stakeholder Analysis in the Context of the Lean Enterprise.” MIT Thesis, chapters 3-5, May 2003. (PDF - 1.5 MB)

5

Lean Manufacturing

Concepts of Lean Manufacturing

Supporting Toolset

Value Stream Map Comparison of a Mass and Lean Production System

Lean Concepts and Outcomes in Manufacturing Environments

Society of Manufacturing Engineers Video

Readings

Womack. Lean Thinking. Chapters 6-7.

References

Dillon, Andrew, and Shigeo Shingo. A Study of the Toyota Production System: From an Industrial Engineering Viewpoint. University Park, IL: Productivity Press, 1989. ISBN: 0915299178.

LAI Production Operations Transition-to-Lean Roadmap (PDF)

6

Transition-To-Lean Roadmap (TTL)

How do I Transform to Become a Lean Enterprise?

Readings

Jobo, Ronald. “Applying the Lessons of Lean Now to Transform the US Aerospace Enterprise.” LAI Working Paper, 2003. Lean Aerospace Initiative.

Heman, Justin. “The Paveway Program Transformation.” LAI Working Paper, 2005. Lean Aerospace Initiative.

7

Lean Supply Chain Management

Introduction to Supply Chain Management

Supply Chain Integration

Supplier Partnerships and Strategic Alliances

Readings

Liker, Jeffrey, and Yen-Chun Wu. “Japanese Automakers, U.S. Suppliers and Supply-Chain Superiority.” Sloan Management Review (Fall 2000): 81-93.

Dyer, Jeffrey, and Kentaro Noboeka. “Creating and Maintaining a High-Performance Knowledge-Sharing Network: The Toyota Case.” Strategic Management Journal 21, no. 3 (2000): 345-367.

MacDuffie, John Paul, and Susan Helper. “Creating Lean Suppliers: Diffusing Lean Production Through the Supply Chain.” In Remade in America. Edited by Jeffrey Liker, Mark Fruin, and Paul Adler. Oxford, UK: Oxford University Press, 1999. ISBN: 0195118154.

References

Campbell, Ernest B., Jr. “Managing the Defense Industry Transition to Performance-Based Practices and Supply Chain Integration.” MIT Thesis, chapter 3, May 1998. (PDF)

White, Eric A. “Lean Enterprise Distribution Tactics with Customer Supply Chain Integration.” MIT Thesis, May 2003. (PDF - 7.9 MB)

Cutcher-Gershenfeld, Joel. “Customer and Supplier Integration Across the Supply Chain.” LAI Implementation Team Workshop Paper, 1999. Lean Aerospace Initiative.

8

Lean Engineering

Big Picture of Product Development

Product and Process Definition

Process Focus

Value Stream Mapping an Information Process

Information Wastes

Readings

Womack. Lean Thinking. Chapters 8-10.

Ferdowsi, Bobak, and Alexis Stanke. “LEAP Case Study: F-16 Case Study Report.” LAI Working Paper, 2002. Lean Aerospace Initiative.

McManus, Hugh, Al Haggerty, and Earll Murman. “Lean Engineering: Doing the Right Thing Right.” Paper delivered to the 1st International Conference on Innovation and Integration in Aerospace Sciences, August 2005.

McManus, Hugh, and Richard Millard. “Value Stream Analysis and Mapping for Product Development.” Proceedings of the International Council of the Aeronautical Sciences 23rd ICAS Congress, September 8-13, 2002.

Stanke, Alexis, and Earll Murman. “A Framework for Achieving Lifecycle Value in Aerospace Product Development.” Proceedings of the International Council of Aeronautical Sciences, 2002.

References

Secor, Deb, and Dean Bliss. “Transforming the Enterprise Product Development Function.” LAI Presentation, March 24, 2005. Lean Aerospace Initiative.

9 Lean Systems Engineering and Integrated Concurrent Engineering

Readings

Bozdogan, Kirk, John Deyst, David Hoult, and Malee Lucas. “Architectural Innovation in Product Development Through Early Supplier Integration.” R&D Management 28, no. 3 (1998): 163-173.

Honour, Eric C. “Value of Systems Engineering.” LAI Technical Report, 2004. Lean Aerospace Initiative.

Browning, Tyson R. “Exploring Integrative Mechanisms with a View Towards Design for Integration.” Advances in Concurrent Engineering CE97 (August 20-22, 1997): 83-90.

Stagney, David B. “The Integrated Concurrent Enterprise.” MIT Thesis, chapter 4, May 2003. (PDF)

10

Enterprise Interactions

Information Characteristics and Handoffs

Integrated Information Flow

Readings

Hammer, Michael. “Process Management and the Future of Six Sigma.” Sloan Management Review (Winter 2002): 26-32.

11

People and Organizational Issues in the Lean Enterprise

Organizational Objectives and Structures (Allen)

Corporate Culture and Change (Schein)

Empowerment and Motivation

Readings

Beer, Michael, and Nitin Nohria. “Breaking the Code of Change.” Harvard Business Review (May 1, 2000).

Senge, Peter. “How to Set the Stage for a Change in Organizational Culture.” Chapter 2 in The Dance of Change. New York, NY: Currency, 1999. ISBN: 0385493223. (Section IX)

Emiliani, M. L. “Lean Behaviors.” Management Decision 36, no. 9 (1998): 615-631.

References

Palmer, I., and R. Dunford. “Who Says Change Can Be Managed? Positions, Perspectives and Problematics.” Strategic Change 11, no. 5 (2002): 243-251.

12

Strategy and Measurement in the Lean Enterprise

Strategy, Positioning, and Operational Effectiveness

Metrics

Balanced Scorecard Approach

Readings

Kaplan, Robert, and David Norton. “Using the Balanced Scorecard as a Strategic Management System.” Harvard Business Review (January 1, 1996).

Norreklit, Hanne. “The Balance on the Balanced Scorecard.” Management Accounting Research 11, no. 1 (2000): 65-68.

Kaplan, Robert, and David Norton. “Measuring the Strategic Readiness of Intangible Assets.” Harvard Business Review (February 1, 2004).

References

Lohman, Clemens, Leonard Fortuin, and Marc Wouters. “Designing a Performance Measurement System: A Case Study.” European Journal of Operational Research 156, no. 2 (2004): 267-286.

13

Lean Enterprise Self-Assessment Tool (LESAT)

How do I Assess My Progress? (LESAT)

Readings

Nightingale, Deborah, and Joe Mize. “Development of a Lean Enterprise Transformation Maturity Model.” Systems Management 3 (2002): 15-30.

References

MIT Lean Enterprise Self-Assessment Tool

14 Enterprise Information Systems

Readings

Mabert, Vincent, Ashok Soni, and M. A. Venkataramanam. “Enterprise Resource Planning: Common Myths Versus Evolving Reality.” Business Horizons 44, no. 3 (2001): 69-76.

Papatheodorou, Yorgos. “The Economic Case for Systems Integration.” Industrial Management 45, no. 3 (2003): 8-15.

Danvenport, Thomas. “Putting the Enterprise into the Enterprise System.” Harvard Business Review (July 1, 1998).

References

Hines, Erisa, and Jayakanth Srinivasan. “IT Enabled Enterprise Transformation: Perspectives Using Product Data Management.” LAI Working Paper, 2004. Lean Aerospace Initiative.

Yusuf, Yahaya, A. Gunasekaran, and Mark Abthorpe. “Enterprise Information Systems Project Implementation: A Case Study of ERP in Rolls-Royce.” International Journal of Production Economics 87, no. 3 (2004): 251-266.

Robey, Daniel, Jeanne Ross, and Marie-Claude Boudreau. “Learning to Implement Enterprise Systems.” Journal of Management Information Systems 19, no. 1 (2002): 17-46.

15

Knowledge Management

Knowledge Management Basics

Implementing Knowledge Management

Human Capital - Creating and Maintaining

Readings

Nonaka, Ikujiro, Ryoko Toyama, and Noboru Konno. “SECI, Ba and Leadership: A Unified Model of Dynamic Knowledge Creation.” Long Range Planning 33, no. 1 (February 1, 2000): 5-34.

Hansen, Morten, Nitin Nohria, and Thomas Tierney. “What’s Your Strategy for Managing Knowledge?” Harvard Business Review (March 1, 1999).

Holsapple, Clyde, and Kiku Jones. “Exploring Primary Activities of the Knowledge Chain.” Knowledge and Process Management 11, no. 3 (2004): 155-174.

References

Cohen, Wesley, and Daniel Levinthal. “Absorptive Capacity: A New Perspective on Learning and Innovation.” Administrative Science Quarterly 35 (1990): 128-152.

Earl, Michael, and Ian Scott. “What Is a Chief Knowledge Officer?” Sloan Management Review (Winter 1999): 29-38.

von Krogh, Georg, Ikujiro Nonaka, and Manfred Aben. “Making the Most of Your Company’s Knowledge: A Strategic Framework.” Long Range Planning 34, no. 4 (2001): 421-439.

Davenport, Thomas, David De Long, and Michael Beers. “Successful Knowledge Management Projects.” Sloan Management Review (Winter 1998): 43-57.

16

Transformational Leadership

Management vs. Leadership

Leading Organizational Change

Leadership Characteristics

Readings

Kotter, John. “Leading Change: Why Transformation Efforts Fail.” Harvard Business Review (February 1, 2000).

Collins, James, and Jerry Porras. “Building Your Company’s Vision.” Harvard Business Review (September 1, 1996).

Hout, Thomas, and John Carter. “Getting it Done: New Roles for Senior Executives.” Harvard Business Review (February 1, 2000).

Breen, Bill. “High Stakes, Big Bets.” Fast Company 57 (April 2002): 66-78.

Useem, Jerry. “Conquering Vertical Limits.” Fortune (February 19, 2001): 84-96.

Schein, Edgar. “Transformative Change: Unlearning and Relearning Culture.” Chapter 6 in The Corporate Culture Survival Guide. New York, NY: Jossey-Bass, 1999. ISBN: 0787946990.

———. “The Leader of the Future.” Drucker Foundation Working Paper 3832, July 1995.

References

Collins, James. “Turning Goals Into Results: The Power of Catalytic Mechanisms.” Harvard Business Review (February 1, 2000).

Bartlett, C., and S. Ghoshal. “The Myth of the Generic Manager: New Personal Competencies for New Management Roles.” California Management Review 40, no. 1 (1997): 92-116.

17

Enterprise Case

Interfacing vs. Integrating

Enterprise Engineering

Readings

Kessler, William. “Company Transformation: A Case Study of Lockheed Martin Aeronautics Company.” Systems Management 3 (2002): 5-14.

Magretta, Joan. “The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell.” Harvard Business Review (March 1, 1998).

18 Team Presentations (EVSMA Steps 1-4)  
19

Enterprise Integration

Improvement vs. Design

Strategies for Enterprise Architecting

Institutionalizing Lean - Sustainment

Caveats and Risk Mitigation

Global Environment

Readings

Murman. Lean Enterprise Value. Chapters 9-11.

Shapiro, Benson. “Functional Integration: Getting All the Troops to Work Together.” Harvard Business Review (November 9, 1989).

20 Industry Case

Readings

Velocci, Anthony. “Grading the Industry.” Aviation Week & Space Technology 159, no. 3 (2003): 50-54.

Panchak, Patricia. “Lean Health Care? It Works!” Industry Week 252, no. 11 (2003): 34-40.

Jordan, Michael. “Pulling Widgets into Lean Success.” Industrial Engineer 35, no. 3 (2003): 34.

Greenwood, Tom, Brad Greene, and Marianne Bradford. “Becoming a Lean Enterprise.” Strategic Finance 84, no. 5 (2002): 32-40.

21

Improvement Initiative Comparison

Fundamentals of Each Initiative

Compare and Contrast

Synergies - Putting them Together, Tailoring an Approach

Readings

Garvin, David. “Leveraging Processes for Strategic Advantage.” Harvard Business Review (September 1, 1995).

Davenport, T. “The Fad that Forgot People.” Fast Company 1 (1995).

Sheard, Sarah. “Life Cycle of a Silver Bullet.” CrossTalk: The Journal of Defense Software Engineering (July 2003): 28-30.

Hammer, Michael, and Steven Stanton. “How Process Enterprises Really Work.” Harvard Business Review (November 1, 1999).

Bozdogan, Kirk. “A Comparative Review of Lean Thinking, Six Sigma and Related Enterprise Change Models.” MIT Working Paper, 2004. (Unpublished)

22 Student Presentations of Lean Enterprise Frameworks  
23-25 Final Team Presentations  

Course Info

Learning Resource Types
Lecture Notes
Written Assignments