From Lean Production to Lean Enterprise How lean can help to deal with crises. Claudio Brusatori Project Manager, Porsche Consulting
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1 From Lean Production to Lean Enterprise How lean can help to deal with crises Claudio Brusatori Project Manager, Porsche Consulting Il Cenacolo dell Impresa Peschiera Del Garda, May 22 nd, 2012
2 100 Years of Crisis First World War 1982/83 Second Oil Crisis 2001 DotCom Bubble 1929 Great Depression 1974/75 First Oil Crisis 1997 Russia Crisis today Debt Crisis Second World War 1990 Japan Crisis 2007 Financial Crisis 1994/95 Mexico Crisis Source: Handbuch Länderrisiken 2009, Mai 2009 Coface Deutschland; Porsche Consulting 4
3 How can a company prepare itself for crises? How could lean principles help in doing so? 5
4 Preparation for crises The question is not whether you will experience crises, because inevitably you will. The question is whether you can reinvent yourself quickly enough, to cope with them. Richard Danzig, Ph.D, Former Secretary of the US Navy Source: Civilization, Feb/Mar
5 Flexibility is at the top of the press agenda today 6
6 The German economy has a strong focus on flexibility 7
7 A new way to compete has to be defined for the Italian industry Japanese Process- Excellence German Focus, Organization & Quality Culture Italian fantasy & Innovation Ability 10
8 1 Growth Most companies are hit by the crisis, predictions about the future are difficult 2 Crisis 3 New reality Conceptual Growth Continuous improvement Restructuring/ resizing Flexibility Source: Porsche Consulting 8
9 Why was Lean management so important to Porsche? (The need of a Strategic competitive advantage based on process excellence) How did Porsche implement lean principles? (The Lean Transformation from Production up to Development, Supply Chain and Sales) What did we learn? (The difficulties of the deployment) 11
10 Why was Lean Management so important to Porsche? (The need of a Strategic competitive advantage based on process excellence) 12
11 The Porsche system is based on highly efficient processes allowing quick response to market changes If the number of orders would decrease due to the financial crisis, Porsche could adjust the number of vehicles to the market, because of its flexible production system The main advantage of our system is its efficiency and its flexibility ( ) both we and our partners can benefit from. Michael Macht, CEO Porsche AG Source: Press Release Porsche AG, Nov 3, 2008; Automobil Produktion, June
12 How did Porsche implement Lean principles? (The Lean Transformation from Production up to Development, Supply Chain and Sales) 17
13 Waste can be identified in different areas Redundancy Inventory Bottle necks Etc. Process Product Exceeding performance requirements Unnecessary range of functions Volume of unused variants Etc. Organization Complex structures Unclear responsibility Wasted employee capabilities Etc. Source: Porsche Consulting 18
14 Waste can be identified in different areas Redundancy Inventory Bottle necks Etc. Process Product Exceeding performance requirements Unnecessary range of functions Volume of unused variants Etc. Organization Complex structures Unclear responsibility Wasted employee capabilities Etc. Source: Porsche Consulting 31
15 Waste can be identified in different areas Redundancy Inventory Bottle necks Etc. Process Product Exceeding performance requirements Unnecessary range of functions Volume of unused variants Etc. Organization Complex structures Unclear responsibility Wasted employee capabilities Etc. Source: Porsche Consulting 42
16 How did Porsche create a sustainable Culture of Lean? (The difficulties of the deployment) 47
17 Lean system Production system Management system Behaviors Lean leadership culture Attitudes Beliefs 48
18 Head Hands Heart 51
19 Lean transformation works independently from products or quantities pcs./year 3 pcs./year 56
20 Single units Massproduction Medium-sized companies Big Players Raw Materials Services Stable Highly Flexible Simple High-Tech Local Global 57
21 100% power, 0% fat Vale anche per le aziende italiane Porsche Consulting 59
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