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 Project Management

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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