Lean Startup

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Lean Startup From Toyota City to Fremont to
YouJohn ShookChairman and CEOLean Enterprise
Institutewww.lean.orgDecember 2013
Lean Startup Conference San Francisco
www.lean.org
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Lean Production Was Named Exactly 25 Years Ago
The Triumph of Lean Production
Lean Enterprise Institute
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In Search of the Worlds Best Production and
Management Systems
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Toyota City Leans Incubator
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New United Motor Manufacturing, Inc. NUMMI
kick-started a revolution that led to us meeting
here today.
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Joint Venture
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The Worst Factory in the World
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The Worst Factory in the World

• Certified
• Worst!

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From the Worst to the Best
Certified!
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NPRs This American Life NUMMI
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So, How Did You Really Change the Culture at
NUMMI?
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Its a Management System With a Social Side and a
Technical Side
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Engage Everyone in Continuous Problem Finding
and Experimenting
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Easy to do right, hard to do wrong Easy to spot
problems Easy to do P-D-C-A Then
?Support to solve problems ?Challenge for
continuous experimentation
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Problems HappenWhat Do We Do With Them?
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Hiding Problems is the Most Anti-lean Problem
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No problem is a problem!
Everyone an Expert Problem Finder and
Experimenter
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Ford Milpitas CA Plant
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Ford Milpitas CA Plant Today
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GM Fremont ? What went wrong?
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• Its a Management System!
• Its an Organizational and a Personal
  Transformation.

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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?

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Lean From the Start

• Do startups face problems that are different from
  those of established enterprises?
• More uncertainty?
• Greater risk?
• Fewer resources?

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• Lean, Whether Startup
• or Established
• Engage Everyone in Problem Finding and Continuous
  Experimentation
• Give Everyone Permission to Fail and Ability to
  Succeed

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Lean Thinking

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

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Lean EnterpriseTransformation Questions
Whats the PURPOSE? What value? What problem to
solve? How to improve the work? How to develop
the people? What leadership role and
management system? Whats the BASIC THINKING?
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www.lean.org
Lean Enterprise Institute
Whats the PURPOSE? What value? What problem to
solve? How to improve the work? How to develop
the people? What leadership role and
management system? Whats the BASIC THINKING?
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www.lean.org
Lean Enterprise Institute
Define Your Purpose Improve the Work Develop
the People