Enterprise transformation & lean implementation in a globally dispersed organization

Abstract

In July 2007, the Supply Planning Organization (SPO) decided to begin its Lean journey. Through some analysis the decision was made to take a culture first approach and then follow with the use of Lean tools. The time had come to use Lean tools to help facilitate in the process of both driving business results and Lean culture acceptance. This thesis and research study set to prove the hypothesis that "Lean tools can be as effective in a non-traditional globally dispersed information environment as they are in the traditional plant floor environment". In addition, this research study set out to show that Lean training and implementation can be successfully completed virtually through simple tools such as a PowerPoint presentation, Microsoft Live Meeting, and a telephone. The research study also shows how two mutually exclusive enterprise tools, X-matrix analysis and Value Stream Mapping, point to the same conclusion around effectiveness of metrics within an organization. The core project within this research study is focused on designing the 2010 organizational improvement strategy and structure of Initech's supply planning division through rigorous analysis of existing configurations and opportunities for process improvement and waste elimination. Initech's Supply Planning division is an 800-person group that is globally dispersed across 23 sites. The supply planning organization is responsible for planning the quantity, timing, and location for product build. The current state analysis was completed through the use of direct observation, 1:1 interviews, and value stream mapping tools. This analysis is focused on identifying non-value added activity and identifying opportunities for improvement through simplified connections and streamlined processes. In addition, this process will also drive improvement and help eliminate the current silo's that exist within the divisions. The enterprise focus around process improvement, waste elimination, Lean cultural adoption, and metric effectiveness will help create a more robust and high performing organization.