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

“Lean Production ” Was Named Exactly 25 Years

Ago

“The Triumph of Lean Production”

LeanEnterprise

Institute

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

Toyota City – Lean’s Incubator

New United Motor Manufacturing, Inc. – NUMMI – kick-started a revolution that led to us meeting here today.

Joint Venture

The Worst Factory in the World…

The Worst Factory in the World…

Certified

Worst!

From the Worst to the Best…

Certified!

NPR’s This American

Life:

“NUMMI”

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

It’s a Management SystemWith a Social Side and a Technical Side

14

Engage Everyone in Continuous Problem Finding and Experimenting

Easy to do right, hard to do wrongEasy to do right, hard to do wrongEasy to spot problemsEasy to spot problemsEasy to do P-D-C-AEasy to do P-D-C-AThen… Then…

Support to solve problemsSupport to solve problemsChallenge for continuous experimentationChallenge for continuous experimentation

Problems Happen…What Do We Do With Them?

Hiding Problems is the Most Anti-lean “Problem”

“No problem is a problem!”

Everyone an Expert Problem Finder and Experimenter

Ford Milpitas CA Plant Ford Milpitas CA Plant

Ford Milpitas CA Plant Today Ford Milpitas CA Plant Today

GM Fremont What went wrong?

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

Transformation.

Lean From the Start• Lean is about solving problems through

continuous experimentation.

• We ask: what is our purpose as an organization? What value to create or what problem are we trying to solve?

• Then, how do we improve the work and how do we develop the people?

Lean From the StartDo startups face problems that are different from those of established enterprises? More uncertainty? Greater risk?Fewer resources?

Lean, Whether Startup or Established…

• Engage Everyone in Problem Finding and Continuous Experimentation

• Give Everyone Permission to Fail and Ability to Succeed

Lean Thinking

• Principle of “Just Enough” • Practice of Questioning and Experimenting• A personal transformation

Lean EnterpriseTransformation Questions

What’s the PURPOSE? What value? What problem to solve?

How to improve the work?

How to develop the people?

What leadership role and management system?

What’s the BASIC THINKING?

www.lean.org

What’s the PURPOSE? What value? What problem to solve?

How to improve the work?

How to develop the people?

What leadership role and management system?

What’s the BASIC THINKING?

LeanEnterprise

Institute

www.lean.org

Define Your Purpose Improve the Work Develop the People

LeanEnterprise

Institute