The University and the Lean Learning Agenda

Document Sample
The University and the Lean Learning Agenda Powered By Docstoc
					The University and the Lean
     Learning Agenda
  Productivity’s Building Lean
      Leaders Conference
       October 15, 2001
             Peter Ward
     Fisher College of Business
        Ohio State University
       Discussion Overview
 The landscape: Universities and Lean
 University as a supply chain partner
 Teaching Lean: An example
 An agenda for action
              The Landscape

   Business     Engineering        Functional
    Schools        Schools           Centers

Little course   Lots of courses.     Pockets of
work of any     Largely narrow,      excellence.
kind              cell-level         Examples:
                  view of Lean.      U. Michigan
                                     MIT
        B-Schools and Lean
 Lean production is relegated to a narrow
  technical issue in business school
  curriculum.
 The technical parts of lean production are
  important but at its core, lean production
  presents a revolutionary way to
  MANAGE the value stream.
                         Top Managers Think About Lean Differently
Upper level




                          Flow Kaizen
                          Value stream / System level
   Level of Management




                                                   Process Kaizen
                                                   Cell level




Lower level
                                                  Focus
Lean Thinking is Largely
 Absent from B-School
   MBA Courses
   Doctoral Dissertations
   Articles in research journals
             Consequences
 Traditional manufacturing is perceived by
  students as boring, overly-technical and
  underpaid. MBAs don’t get to see the
  bright side!
 Professors are similarly uninformed.
  Productivity gains are attributed to a variety
  of programs and technologies.
 The organizing principles provided by lean
  thinking is missing.
     More Consequences-MBA
    Schools Influence Corporate
              Leaders
 Teaching new managers
 Executive education
 Consulting by faculty
 Writing by faculty
       Supply Chain View
Universities are key links in the knowledge
and human resources supply chains.
– It only makes sense for businesses to provide
  help to key suppliers when they need it.
– We’ve already established that most
  universities need plenty of help when it comes
  to lean!
  An Example of a Lean MBA
   Curriculum at Ohio State
  Grounded in a Supply Chain
             View:
  Tomorrow’s Lean Enterprise
            Leaders
(Taken by 50 Full time MBA Students in Spring
    2001. This is about 1/3 of the class!)
Physical Supply Chain:
Auto Industry Example
         Dealers


          OEM


      Tier 1 Suppliers

      Tier 2 Suppliers


       Tier 3 Suppliers
Knowledge Supply Chain: Auto
     Industry Example
   Organizations        Dealers
    (e.g., SME)
                        OEM
   Consultants &
   “Think Tanks”    Tier 1 Suppliers

                    Tier 2 Suppliers
   Universities &
      Colleges
                    Tier 3 Suppliers
 Tomorrow’s Lean Enterprise
         Leaders
Helping MBAs to develop a passion
 for manufacturing
  – Spring: Developing Lean Manufacturing
    Tools
  – Summer: Applying Lean Tools
  – Fall: Integrating Lean Manufacturing
    with MBA experience
Developing Lean Manufacturing
            Tools
 30 plus classroom hours of material adapted
  from Ford teaching programs and delivered
  by top educators from industry
 Real time value stream mapping experience in
  supplier plant; student teams led by Ford
  engineers and plant personnel.
 Additional 8 hour “boot camp” instruction is
  provided by people from key Ford suppliers.
       Applying Lean Tools

             Ford or Ford Supplier
 Internship at
 working on projects related to lean
 manufacturing.
 Integrating Lean Manufacturing
      with MBA experience
 20  classroom hours with MBA
  professors.
 Consider how lean thinking should
  integrate with management and what
  roadblocks exist.
 Develop and present case studies to
  audience comprising of faculty and
  executives.
         Topics covered in Lean
               Curriculum
   Simulation exercise contrasting mass production with
    lean production.
   Lean manufacturing metrics and measurables.
   Value stream mapping.
   Production system design, implementation issues, and
    planning.
   Hoshin Kanri.
   Problem solving.
   Poka-Yoke (mistake proofing).
   Standardized work.
   Quick changeover.
   Lean accounting and performance measurement
               Outcomes
 Participating companies
 MBA student participants
 Scholarly research
 Dissemination of lean thinking
         Internships: Benefits To
       Employers Outweighed Costs
   Achieved potential savings of over $330,000 per year by
    redeployment 11 shop floor associates
   Identified major causes of downtime and assisted in
    establishing plan to increase productivity for an annual
    savings of $200K
   Set up a Kanban simulation that can potentially reduce
    finished goods inventory up to 70%
   Created action plan to reduce raw materials inventory
    received from Japan by 84%
   Discovered potential $30,000 in daily inventory savings
    through card-for card and lot box Kanban training and
    implementation
   Led team working on product flow improvements between
    work areas through value stream mapping activities.
   Participated in and led trainings and workshops teaching
    and implementing lean manufacturing concepts with
    suppliers.
What the MBA Students Said
They Knew Before but Really
 Learned on the Internship
 Lean philosophy is applicable to all
  business processes
 The importance of training and employee
  involvement
 Change management skills
    – Top-down support
    – Buy-in at implementation level
    What I Observed That The
       Students Learned
 To appreciate the power of lean thinking
 To be passionate about manufacturing
 To understand that there is more to
  managing than pushing the numbers
 In addition, each individual learned
  particular lessons that they needed to learn
         Scholarly Research
 Article submitted to a research journal on
  implementation of lean production
 New Ph.D. Dissertation in lean under way
        Dissemination of Lean
              Thinking
   Tomorrow’s Lean Enterprise Leaders program
    expected to double in size between 2000 and 2002
   Executive education programs
   Academy of Management presentation by faculty
    and executives
   Faculty workshops at Univ. of Michigan-LEI
    conference and at Ohio State
   Beginning to capture a share of the best and
    brightest management students for manufacturing
              Agenda for Action
   Business leaders influence through supply
    chain partnerships
    –   Begin where you hire
    –   Constructive relationships with deans
    –   Speak in university classes and tell your story
    –   Encourage faculty to become involved in
        training
           Agenda for Action
   Faculty teaching faculty
    – Summer camps
    – Thought leaders (like Productivity) must be
      involved
    – Research influences faculty interests
                      Benefits
   Core of young management talent with a bias
    toward manufacturing
   Common vocabulary linking lean with running the
    business
   Investigation of critical topics, e.g.
    – Documenting lean programs with improvements in
      bottom line and strategic position
    – Applying lean in environments other than discrete part
      manufacturing
Universities can be powerful
  allies in preparing future
 leaders and disseminating
lean thinking or they can be
       largely irrelevant.
 Business leaders must also
   lead in developing a
   constructive alliance.