Lean Performance ERP Project Management: Implementing the Virtual Lean Enterprise | Brian J. Carroll

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Lean Performance ERP Project Management: Implementing the Virtual Lean Enterprise, Second Edition
By Brian J. Carroll

Lean Performance ERP

Contents

Figures……………………………………………………………………………………………….xi
Foreword…………………………………………………………………………………………..xv
Preface…………………………………………………………………………………………..xxvii
Acknowledgments…………………………………………………………………………xxxvii
About the Author……………………………………………………………………………… xli

Part I: Introduction to Lean Performance
Chapter 1 Foundations of Lean Performance…………………………….3
When the ERP Project Manager Is the Lean Champion…………………………3
The Organizational Consequences of Mass Production…………………………..8
The Origin of Lean Production………………………………………………………….10
What Is Lean Production?………………………………………………………………..14
Why Aren’t More Firms Lean?…………………………………………………………..16
What Is Required to Become Lean?……………………………………………………18
Chapter 2 Extending Lean Performance Foundations……………..21
Implementing Lean Cross-Functional Processes…………………………………..21
Lean Quality Management…………………………………………………………..23
Lean Maintenance……………………………………………………………………….24
Lean New Product Introduction……………………………………………………25
Lean Design and Engineering……………………………………………………….26
Lean Accounting…………………………………………………………………………27
Chapter 3 Lean Performance Methodology……………………………..33
What Is the Virtual Lean Enterprise?………………………………………………….33
Lean and ERP: Why Can’t We All Just Get Along?………………………………35
The Failure of ERP Implementations………………………………………………… 42
Lean and Six Sigma……………………………………………………………………….. 44
Why Should Our Enterprise Be Lean?………………………………………………..45
The Three Levels of Lean Business Process Management……………………….49
Lean Business Process Strategic Level: Lean Policy Deployment…………50
Lean Business Process Organizational Level: Lean Process Innovation..53
Lean Business Process Activity Level: Lean Performance
Implementation…………………………………………………………………………..62
What Is Lean Performance?…………………………………………………………….. 66
How Does Lean Performance Improve Processes?………………………………..68
Why Lean Performance Is the Best Lean Methodology…………………………69
Chapter 4 Lean Cross-Enterprise Processes………………………………81
What Is Lean Commerce?………………………………………………………………..81
Lean Customer Relationship Management……………………………………..88
Lean Production Smoothing……………………………………………………….. 90
Lean Supply-Chain Management…………………………………………………100
Lean Performance China Strategy………………………………………………..103
Supporting a Lean Factory Flow………………………………………………….104
Toyota Production System and Lean Commerce…………………………….108
Implementing a Virtual Lean Enterprise……………………………………………110
Chapter 5 Lean Principles, Tools, and Practices…………………….113
Lean Cultural Principles…………………………………………………………………113
Process-Oriented Thinking Means What Before How……………………. 115
Product Quality Results from Process Quality………………………………. 115
Every Process Needs a Process Standard………………………………………..116
The Process Owners and Operators Are the Process Experts……………. 117
The Next Process Is Your Customer…………………………………………….. 119
Loyalty to People Enables Continuous Improvement……………………… 119
Process Data and Measurements Drive Process Continuous
Improvement…………………………………………………………………………….122
Lean Cultural Principles Checklist…………………………………………………..122
Process-Oriented Thinking Means What Before How…………………….122
Product Quality Results from Process Quality……………………………….123
Every Process Needs a Process Standard………………………………………..124
The Process Owners and Operators Are the Process Experts…………….125
The Next Process Is Your Customer……………………………………………..126
Loyalty to People Enables Continuous Improvement………………………126
Process Data and Measurements Drive Process Continuous
Improvement…………………………………………………………………………….128
Lean Transformational Principles…………………………………………………….129
Precisely Specify Value by Product or Family…………………………………129
Identify the Value Stream for Each Product…………………………………..129
Make Value Flow Without Interruption………………………………………..129
Let Customer Pull Value from the Process Owner………………………….129
Pursue Perfection………………………………………………………………………129
Lean Transformational Principles Checklist………………………………………130
Precisely Specify Value by Product or Family…………………………………130
Identify the Value Stream for Each Product…………………………………..130
Make Value Flow Without Interruption………………………………………..131
Let the Customer Pull Value from the Process Owner…………………….131
Pursue Perfection………………………………………………………………………131
Lean Diagnostic Tools……………………………………………………………………132
3 MUs……………………………………………………………………………………..132
5 Ss………………………………………………………………………………………….137
5 Ws-1 H………………………………………………………………………………….142
4 Ms………………………………………………………………………………………..146
Lean Performance Practices…………………………………………………………….152
Management Policy Deployment…………………………………………………152
Lean Performance Teams……………………………………………………………154
Visual Management………………………………………………………………….. 155
Lean Performance Analysis………………………………………………………… 155
Chapter 6 Steering a Lean Performance Project…………………….161
Management in the Lean Performance Project…………………………………..161
Advocate………………………………………………………………………………….162
Champion………………………………………………………………………………..162
Sponsor……………………………………………………………………………………162
Communicator………………………………………………………………………….162
Motivator…………………………………………………………………………………163
Team Builder/Team Player………………………………………………………….163
Educator/Developer…………………………………………………………………..163
Change Agent…………………………………………………………………………..163
Facilitator/Coach/Catalyst………………………………………………………….164
Mediator/Negotiator………………………………………………………………….164
Completing the Lean Performance Assessment…………………………………..166
Lean Performance Assessment…………………………………………………………167
Lean Enterprise Future State……………………………………………………………167
In Our Future Lean Enterprise…………………………………………………….171
Enterprise Lean Vision Elements (Add/Change to Fit Your Lean
Enterprise)………………………………………………………………………………..172
Our Process Owners (Managers and Supervisors)…………………………..173
Company Readiness………………………………………………………………………173
Opportunity to Make Lean Applications…………………………………………..176
Company Capability to Become Lean………………………………………………177
Lean Performance Project Constraints………………………………………………180
Analyzing Lean Performance Assessment Results……………………………….183
Preparing for the Lean Performance Project………………………………………184

Part II: Lean Performance Planning Modules
Chapter 7 Deploying Management Policy Module………………..189
Management Tasks………………………………………………………………………..189
Organizing the Steering Committee…………………………………………….189
Confirming the Lean Vision……………………………………………………….191
Identifying and Deploying Lean Business Policies………………………….191
Identifying and Deploying Lean Project Strategies………………………….192
Defining the Project Mission……………………………………………………….195
Defining the Project Scope………………………………………………………….196
Setting Up the Project Organization…………………………………………….197
Identifying and Deploying the Project Objectives…………………………..199
Conducting Steering Committee Meetings……………………………………203
Chapter 8 Ev aluating and Selecting Software Module…………. 209
Management Tasks………………………………………………………………………..212
Organize the Software Evaluation and Selection Project Team…………212
Project Team Tasks………………………………………………………………………..213
Organize the Project Office and Conference/Education Room…………213
Determine Key Lean Software Features Workshop Attendees…………..213
Review All Lean Strategy/Policy/Project Objectives LPA Masters……..214
Conduct Process Area Workshops………………………………………………..214
The 9 Forms of Office MUDA Checklist……………………………………… 215
The 5 Ss in the Office Checklist…………………………………………………..216
The Office 5 Ss Checklist……………………………………………………………217
5 Ss in the Computer Room Checklist………………………………………….219
Conduct Key Lean Software Features Workshops…………………………. 220
Process Stream Key Lean Features Checklist………………………………….221
Prepare a Draft of the Key Lean Software Features Checklist…………..223
Report Progress to Management Steering Committee……………………..223
Chapter 9 Managing Project Module………………………………………229
Project Team Tasks………………………………………………………………………..229
Maintaining the Project Summary Bar Chart………………………………..229
Maintaining Project Communications………………………………………….229
Maintaining the Project Plan…………………………………………………….. 230
Maintaining an Open Issues Resolution Process…………………………… 230
Maintaining the Project Organization………………………………………….235
Maintaining the Quality Assurance Process…………………………………..236
Reporting Progress to the Steering Committee………………………………239
Chapter 10 Developing Lean Performance Teams Module……241
Project Team Tasks………………………………………………………………………..241
Finalizing Projects and Strategies…………………………………………………241
Developing the Site Configuration……………………………………………… 242
Identifying All Processes…………………………………………………………… 244
Developing Site Teams……………………………………………………………….254
Developing Lean Performance Team Training……………………………….254
Reporting Progress to the Steering Committee………………………………265
What Follows Lean Performance Planning?………………………………………265

Part III: Lean Performance Improvement Modules
Chapter 11 Improving Process Performance Module…………….273
Management Tasks………………………………………………………………………..273
Maintaining Lean Performance Teams…………………………………………273
Conducting Steering Committee Meetings……………………………………274
Project Team Tasks………………………………………………………………………..275
Lean Performance Team Education……………………………………………..275
Human Resource Team Tasks……………………………………………………..278
Finance Team Tasks…………………………………………………………………. 286
Engineering Team Tasks…………………………………………………………… 288
Materials Team Tasks…………………………………………………………………292
Operations Team Tasks………………………………………………………………294
Information Team Tasks…………………………………………………………….296
Lean Commerce Team Tasks………………………………………………………299
Completing Lean Performance Analysis………………………………………….. 304
Challenging Processes Checklist………………………………………………….320
Producing Work Instructions………………………………………………………329
Chapter 12 Integrating Systems Module………………………………….337
Project Team Tasks………………………………………………………………………..337
Installing Hardware and Software………………………………………………..337
Initiating the System………………………………………………………………….338
Setting Up System Security…………………………………………………………338
Creating Test and Training Environments…………………………………….339
Creating Production Databases……………………………………………………339
Testing System Setup…………………………………………………………………339
Managing the Data Conversion Process ……………………………………….339
Evaluating Additional Software Packages and Interfaces………………… 340
Conducting Process-Oriented System Design………………………………. 342
Summarizing Proposed Modifications………………………………………… 342
Completing Hardware and Communications Analysis………………….. 344
Preparing Detailed Design Specifications…………………………………….. 344
Managing Outsourced Programming…………………………………………..345
Defining Interface and Database Testing…………………………………….. 346
Chapter 13 Testing Improved Processes Module……………………347
Project Team Tasks………………………………………………………………………..347
Objectives of Testing………………………………………………………………….347
Prototype and Pilot Testing……………………………………………………….. 348
Establishing the Test Team……………………………………………………….. 348
Test Team Kick-Off Meeting………………………………………………………355
Process Test………………………………………………………………………………356
Stress Test………………………………………………………………………………. 360
Process Workflow and Work Instruction Update……………………………361
Conducting the User Training Program………………………………………..362
What Follows Lean Performance Improvement?…………………………………362

Part IV: Continuous Lean Performance Modules
Chapter 14 Implementing Improved Processes Module………..365
Management Tasks………………………………………………………………………..365
Maintaining Lean Performance Teams…………………………………………365
Implementing Lean Performance Management…………………………….. 368
Continuously Deploying Lean Policy and Strategy…………………………372
Auditing Lean Performance………………………………………………………..374
Project Team Tasks………………………………………………………………………..376
Completing the Implementation Readiness Assessments………………….376
Verifying System Integration……………………………………………………….377
Counting Down to Implementation……………………………………………..377
Implementing Improved Processes……………………………………………….378
Providing Additional Training…………………………………………………….378
Providing Production Start-Up Support………………………………………..378
Chapter 15 Continuously Improving Lean Performance
Module………………………………………………………………………………….379
Project Team Tasks………………………………………………………………………..379
Defining and Initiating Lean Performance Measurements……………….379
Continuously Improving Lean Performance………………………………385
Deploy Management Policy…………………………………………………….387
Deploy Information Process Technology…………………………………..388
Identify Processes and Teams………………………………………………….388
Complete the Lean Performance Analysis………………………………….388
Build New Information System Supports………………………………….389
Complete Updated Process Standards……………………………………….389
Continuously Improve Lean Performance…………………………………389
Index………………………………………………………………………………………………391

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