Jim Womack, Lean Enterprise Institute

Todd Wyman, Ingersoll Rand

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The Way of the World: Vertical

Senior LeadershipSenior Leadership

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Value: Horizontal

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How They Collide

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What We Need

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Ingersoll Rand Overview

• A $14 billion diversified industrial company

• Publicly-held; NYSE:IR

• Operations in every major geographic region

• Strategic brands are #1 or #2 in their markets –

• Club Car, Ingersoll Rand, Schlage, Thermoking, Trane

• Products and services for commercial, industrial and residential markets

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Engaged Employees | Delighted Customers | Confident ShareholdersEngaged Employees | Delighted Customers | Confident Shareholders

Path to Premier Performance

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Peer Group Performance

Improvements in Key Metrics Deliver Shareholder ValueImprovements in Key Metrics Deliver Shareholder Value

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arti

les

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Lean Transformation Approach

• Programmatic

• Business Operating System

• Goal Deployment

• Inch Wide, Mile Deep

• Horizontal Value Streams

Concept to Launch

Order to Delivery (Fulfillment)

Delivery to Lifecycle (Service, Recycle)

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Leading Horizontally: Our Journey

Product Manager

Operations Lead

Engineering Lead

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Daily Management

• Standard Work• Takt / One-piece flow• Andon / Response / Escalation• Visual Management• Problem Solving• Leader Standard Work / Gemba Walks

DM

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Managing from the OfficeManaging from the Office

Managing at the GembaManaging at the Gemba

Executives “Going for a Walk”

Leading from the GembaLeading from the Gemba

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How Can We Do Better?

• Pick a value stream• Take a walk• Ask questions:

• Standard front-linemanagement

• Visible Takt Time• Valuable• Capable• Available• Adequate• Flexible• Leveled Flow• Up-to-Date Standard Work

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Compressor Value Stream

Production Control

Production Control

Production Control

Production Control

SalesOrdersSales

Orders

Distribution Warehouse

DealerCompressor Assembly

& Test

Warehouse Heat Pump Assembly

& Test

CustomerDie Casting Machining

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Compressor Value Stream Summary

Total Distance 4,667,520 ft.

Total Value Creating 630 ft.

% Value to Total 0.013%

Total Steps 73

Value Creating Steps 7

% Value to Total 9.6%

Total Time 44 days

Value Creating Time 14 minutes

% Value to Total 0.02%

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What Questions Did We Ask?

• Who designed the value stream?‑ No one

• Who is responsible for the “plan for every value stream”?‑ No one

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When You Are Ready

• Pick an end to end value stream

• Take a walk with everyone touching the value stream

• Create a summary of current performance and the gap

• Make someone responsible for creating a future state plan

• Discuss it in the presence of every vertical and reach an agreement

Act Your Way to Horizontal ThinkingAct Your Way to Horizontal Thinking