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Lean Startup – From Toyota City to Fremont to You John Shook Chairman and CEO Lean Enterprise Institute www.lean.org December 2013 Lean Startup Conference San Francisco www.lean.org

Lean Startup--From Toyota City to Fremont to You by John Shook

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Lean Startup--From Toyota City to Fremont to You by John Shook The Lean Startup Conference 2013 http://leanstartup.co/

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Page 1: Lean Startup--From Toyota City to Fremont to You by John Shook

Lean Startup – From Toyota City to Fremont to You

John ShookChairman and CEOLean Enterprise Institutewww.lean.org

December 2013

Lean Startup ConferenceSan Francisco

www.lean.org

Page 2: Lean Startup--From Toyota City to Fremont to You by John Shook

Lean…

Page 3: Lean Startup--From Toyota City to Fremont to You by John Shook

“Lean” was named exactly 25 years ago

3

“The Triumph of Lean

Production”-John Krafcik

1988

Page 4: Lean Startup--From Toyota City to Fremont to You by John Shook

“Flow Production” Was Born Exactly 100 Years Ago

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Page 5: Lean Startup--From Toyota City to Fremont to You by John Shook

The Birth of Flow Production – Ford Highland Park

Page 6: Lean Startup--From Toyota City to Fremont to You by John Shook

In Search of the World’s Best Production and Management Systems

Page 7: Lean Startup--From Toyota City to Fremont to You by John Shook

In Search of the World’s Best Production and Management Systems

Page 8: Lean Startup--From Toyota City to Fremont to You by John Shook

Toyota City – Lean’s Incubator

Page 9: Lean Startup--From Toyota City to Fremont to You by John Shook

Never Overproduce; Never Pass on a Defect

“Customer First”…and the Following Process is a Customer!

Page 10: Lean Startup--From Toyota City to Fremont to You by John Shook

Earliest Photo of a KanbanEarliest Photo of a Kanban

Page 11: Lean Startup--From Toyota City to Fremont to You by John Shook

One-Piece Flow…

Where’Where’s s

mine?!mine?!

Don’t “Starve” the Customer

Page 12: Lean Startup--From Toyota City to Fremont to You by John Shook

Together…

…Smooth, Uninterrupted Flow of Value

aka JIT

Page 13: Lean Startup--From Toyota City to Fremont to You by John Shook

Lean…

Page 14: Lean Startup--From Toyota City to Fremont to You by John Shook

New United Motor Manufacturing, Inc. – NUMMI – built its first car in December 1984 and its last on April 1, 2010.

NUMMI kick-started a revolution.

Page 15: Lean Startup--From Toyota City to Fremont to You by John Shook

Joint Venture

Page 16: Lean Startup--From Toyota City to Fremont to You by John Shook

The Worst Factory in the World…

Certified

Worst!

Page 17: Lean Startup--From Toyota City to Fremont to You by John Shook

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Page 18: Lean Startup--From Toyota City to Fremont to You by John Shook

From the Worst to the Best…

Certified!

Page 20: Lean Startup--From Toyota City to Fremont to You by John Shook

So, How Did You Really Change the Culture at NUMMI?

Page 21: Lean Startup--From Toyota City to Fremont to You by John Shook

Two Things…

Page 22: Lean Startup--From Toyota City to Fremont to You by John Shook

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Manage to Engage Everyone in Continuous Experimentation

Page 23: Lean Startup--From Toyota City to Fremont to You by John Shook

Problems Happen…What Do We Do With Them?

Page 24: Lean Startup--From Toyota City to Fremont to You by John Shook

“No problem

is a problem!”

Hiding Problems is the Most Anti-lean Problem.

Page 25: Lean Startup--From Toyota City to Fremont to You by John Shook
Page 26: Lean Startup--From Toyota City to Fremont to You by John Shook

Ford Milpitas CA Plant Ford Milpitas CA Plant

Page 27: Lean Startup--From Toyota City to Fremont to You by John Shook

Ford Milpitas CA Plant Today Ford Milpitas CA Plant Today

Page 28: Lean Startup--From Toyota City to Fremont to You by John Shook

Model T PlazaFord’sHighland

Park Today

Page 29: Lean Startup--From Toyota City to Fremont to You by John Shook

GM Fremont What went wrong?

Page 30: Lean Startup--From Toyota City to Fremont to You by John Shook

• It’s a Management System!• It’s an Organizational and a Personal Transformation.

This is not a pipe.

Page 31: Lean Startup--From Toyota City to Fremont to You by John Shook

Lean Startup?• Lean is about solving problems

through continuous experimentation. • We ask: what is our purpose as an

organization or what problem are we trying to solve?

• So, what problems do startups face?

Page 32: Lean Startup--From Toyota City to Fremont to You by John Shook

Lean Startup?What problems do startups face that are different from those of established enterprises? More uncertainty? Fewer resources? Greater risk?Anything else really?

Page 33: Lean Startup--From Toyota City to Fremont to You by John Shook

• It’s a Management System!• It’s an Organizational and a Personal Transformation.

This is not a pipe.

Page 34: Lean Startup--From Toyota City to Fremont to You by John Shook

www.lean.org

Define Your Purpose Improve the Work Develop the People