GE Lean and FastWorks
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Transcript of GE Lean and FastWorks
![Page 1: GE Lean and FastWorks](https://reader035.fdocuments.in/reader035/viewer/2022070516/5872a9681a28ab07208b7571/html5/thumbnails/1.jpg)
Lean Practices
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About GE
est 1892
co- founder Thomas Edison
Fortune 500 # 4
Employees > 300k
Revenu > $100B
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Global Research Center founded in 1900
“Innovation in great technology is the heart of a great industrial company”
GE reverse innovation: innovation in developing countries instead of developed high concurent
Historical approach to innovations
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Innovations todaySpending $5B/year on innovation
Global Research Center employs 50k engineers
Placing R&D centers in different counties and cultures to grab the best people
Inviting Eric Ries and lean startup principles (in 2012) and introducing FastWorks
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Lean startup principles applied to global company
1.Get closer to customer
2.Increase chance of success
3.Increase speed to market
4.Make it easier to get things done
Rejecting process complexity (spread teams focused on activity) in favour of simplicity (dedicated teams focused on learning)
FastWorks idea
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FastWorks ideaSalespeople give design requirements and customers would be involved throughout.
“With FastWorks we learned that SPEED - our competitive approach”
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Training leaders and teams
Team of 150 trained coaches
Launched 100s of FastWorks projects
Launched growth boards that allocate resources
FastWorks implementation
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FastWorks Implementation aspects
Switch expected tons of money for periods of years to secure funding for short periods
Justifying programs to make people feel confident about their jobs
Dedicated team, not scattered all around the place
Changing culture: from understanding that “everything should be perfect from top to bottom” to “change in an inevitable thing in the business”
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FastWorks challengesa) SUPPLIER RELATIONSHIP - suppliers should be engaged sooner in the product development, were grateful to be asked to be involved, and have provided more flexibility.
b) FINANCE - required rethinking as teams speed up, it is hard to put dollar value to the learning. Traditional financial systems are risk mitigation tools, and there is typically no weighting on speed.
c) LEADERSHIP ROLES AND RESPONSIBILITIES - they inverted pyramid and research and development team moved leadership even faster then CEO.
d) EDUCATION FOR MIDDLE AND TOP EXECUTIVES, for Lean and FastWorks approach
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Case: Series X diesel engine
product release in 6 years
After talking to Eric - series of MVPs, first – in 2 years
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Case: Multiphase FlowmeterNeed: super precise meters
adapted existing technology
Internal startup that grew to a $100M business
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Case: 500 MW Gas Turbine (2012)
7 years and $500M for first plant (to be built in 2019)
short development cycle
tricked existing turbines with little engineering to performs 10% better
Then added more engineering and achieved +22%
Released 4 MVPs, first in 2015, final in 2017
Put GE in “high-efficiency power” space early
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Case: C-Arm (healthcare stuff)
First lab mockup in 3 weeks
Got customer feedback
Sold 4 pieces during first weeks
11 MVPs
Released new product in < 6 months
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Case: Industrial circuit breakerReduced typical to this industry
60 month development cycle to 30 month
7 MPVs
20 customer sessions
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Case: Silicon Carbide Power Semiconductor
Totally new internal startup that will effect all GE businesses
$250M of investment
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ConclusionsSlides has been made in scope of course “Innovation Management” | MSIE4 | LvBS | 2016You can ping our team via prokopenko.serhii@gmailcom
Sources:
Video (12:43): Mark Little, GE’s Chief Technology Officer and Leader of GE’s nine Global Research Centers Lean Startup at GE, LSC15https://www.youtube.com/watch?v=TgAk7xP2a1M&index=2&list=PL1M9pu1POlekMxS-EKorIuuO_JynFHQRmVideo (58:27): Johanna Wellington, GE–Fuel Cells: Running a Lean Startup Inside a Big Corporation, LSC15https://www.youtube.com/watch?v=FS07NcNdBn8&list=PL1M9pu1POlekMxS-EKorIuuO_JynFHQRm&index=31
And a lot more