Lean Enterprise Value Insights from MIT's Lean Aerospace Initiative

by Murman, Earll; Allen, Tom; Cutcher-Gershenfeld, Joel

• ISBN13: 9780333976975
• ISBN10: 0333976975
• Format: Hardcover
• Copyright: 2002-05-17
• Publisher: Palgrave Macmillan

Summary

Lean Production transformed the way that companies think about production and manufacturing. This book provides a new challenge. It arises from the work of the Lean Aerospace Initiative at MIT and provides a new agenda and bold vision for the aerospace industry to take it out of crisis. It also redefines and develops the concept of Lean as a framework for enterprise transformation and this will be relevant and critical for all industries and enterprises.

Author Biography

Earll Murman is Professor of Aeronautics and Astronautics, and Program Director of the Lean Aerospace Initiative at Massachusetts Institute of Technology.

Tom Allen is Howard W Johnson Professor of Management at the Sloan School of Management, Massachusetts Institute of Technology and Co-Director of the Lean Aerospace Initiative.

Joel Cutcher-Gershenfeld is Executive Director, Engineering Systems Learning Center and Senior Research Scientist, Sloan School of Management, Massachusetts Institute of Technology.

Table of Contents

List of Boxes	x
List of Figures and Tables	xii
Foreword	xiv
Acknowledgements	xx
List of Abbreviations	xxiii
Part I Higher, Faster, Farther	1	(84)
The 21st-Century Enterprise Challenge	3	(22)
Lean Enterprise Value	4	(4)
Value as `True North'	8	(4)
Principles of Lean Enterprise Value	12	(2)
The Aerospace Challenge	14	(10)
Moving Forward	24	(1)
The Cold War Legacy	25	(30)
1945-69: A Bullish Quarter-Century	27	(11)
1970-89: Shifting National Priorities	38	(16)
Challenges of the Cold War Legacy	54	(1)
Monuments and Misalignments	55	(30)
Dynamics of Industrial Innovation	56	(10)
Actions and Reactions	66	(7)
Barriers to Change	73	(9)
The Challenge Ahead	82	(3)
Part II Better, Faster, Cheaper	85	(90)
Lean Thinking	87	(30)
Lean Thinking Defined	89	(7)
Lean Thinking in its Historical Context	96	(11)
Lean Thinking and Other System-Change Initiatives	107	(7)
Implications of Lean Thinking for the Aerospace Industry	114	(3)
Islands of Success	117	(25)
A Herculean Island: Transforming Production on the C-130J	118	(2)
A Byte-Sized Island: Improving Code Generation	120	(3)
A Better-Practice Island: Manufacturing F-22 and RAH-66 Electronics Using Commercial Practices	123	(2)
An Engineering Support Island: The F-16 Build-To-Package Center	125	(2)
A Cultural Island: New Ideas and Methods for 777 Floor Beams	127	(3)
An Island Chain: The Pratt & Whitney Story	130	(3)
An Awakening Island: Diffusing Lean Practices to the Delta IV Launch Vehicle	133	(2)
An Island of `Pull': Integrating Supplier and Material Management at GE Lynn	135	(3)
A Mini-Enterprise Island: Joint Direct Attack Munition	138	(3)
Summing Up	141	(1)
Lean Enterprises	142	(33)
The `Whats' of a Lean Enterprise: Lean Principles and Practices	146	(8)
The `Hows' of Lean Enterprise Transformation	154	(2)
Assessing the `Where' on a Lean Jouney	156	(3)
Integrated Entities	159	(9)
Enterprise Stakeholders	168	(4)
A Long Jouney	172	(3)
Part III Creating Enterprise Value	175	(116)
A Value-Creation Framework	177	(13)
What is Value?	178	(2)
Value Streams and Doing the Job Right	180	(2)
Introducing the Framework	182	(2)
Value Identification	184	(1)
Value Proposition	185	(2)
Value Delivery	187	(1)
Linking the Value-Creation Framework Across Three Levels of Enterprise	187	(1)
Summing Up	187	(3)
Program Value	190	(27)
Value Identification	193	(7)
Program Value Proposition	200	(7)
Delivering Program Value	207	(5)
Adapting to Change	212	(3)
Summing Up	215	(2)
Value in Corporate and Government Enterprises	217	(30)
A Value Stream Approach to Understanding Enterprise Integration Challenges	217	(1)
Above the Level of a Single Program Value Stream	218	(2)
Identifying Value Across the Enterprise	220	(8)
Creating Enterprise Value Propositions	228	(13)
Delivering Enterprise Value	241	(5)
Summing Up	246	(1)
Value at National and International Levels	247	(34)
A `Crisis' in Defense Aerospace?	248	(3)
Value Identification	251	(9)
Creating the Value Proposition	260	(5)
Value Delivery	265	(13)
Summing Up	278	(3)
Future Value	281	(10)
Five Guiding Principles for Lean Enterprise Value	281	(8)
Conclusion	289	(2)
Part IV Appendices	291	(7)
Appendix A Lean Aerospace Initiative Member Organizations (October 2001)	293	(3)
Airframe	293	(1)
Avionics/Electronics	293	(1)
Propulsion, Power Systems and Controls	293	(1)
Space	294	(1)
US Air Force	294	(1)
Other Government Entities	294	(1)
Invited Participants - Labor	294	(1)
Invited Participants - Industry and Government	295	(1)
Appendix B
LAI Supported Students Completing Theses	296	(1)
Other Graduate Students Participating in LAI	297	(1)
Other Graduate Students Whose Theses have Contributed to LAI	297	(1)
Notes	298	(25)
Index	323