Steven J. Spear - MIT SDM – System Design and Management€¦ · Steven J. Spear Sr. Lecturer,...

© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]

Steven J. Spear�Sr. Lecturer, !MIT Sloan School of Management �Sr. Lecturer, !MIT Engineering Systems Division �Sr. Fellow, !Institute for Healthcare Improvement �Author,!The High Velocity Edge�

Eureka!!!


Creative experimentation�

Jester Image Source: http://www.zebraentertainmentandevents.com/entertainers.html#.Twn2nSM9x6o



Relentless building of useful knowledge��-- Everybody�-- Everywhere�-- All the time�

Time

Know

ledge


(*) See chapter 2 and 3 for examples

Modified: May 9 11

Simple to Complex�

Value creation


Time

Volume

X 75% X 56% X 42% X

Target production volume


“We no longer do high volume manufacturing…�

…we do high volume engineering!”�


Creative experimentation�•  Strategy�

•  Identify targets�

•  Operations�•  Hit targets�


Discovering Targets�

Source: Toyota



Source: Toyota



• What problem? •  At point of use?

• Data •  Interview • Focus groups

Source: Toyota


Hitting Targets�


Decoding Mary�

H SNF

Decoding Phil�


Experimentation�

Double blind�Random controlled�

Large sample�


Customer Satisfaction�Routing

Communi- cation

Escalation

Solution

KBM

Training


Hitting Targets�

Great Point Energy

Source: Spear


Hitting Targets�

Great Point Energy USS Nau'lus

I: Sustaining vs. disrupIve innovaIon II: Jobs to be done III: Discovering Jobs to be Done IV: Relentless experimentaIon V: “Right way to organize” Source: Spear


Hitting Targets�


•  See problems

• Solve problems

• Share learning I: Sustaining vs. disrupIve innovaIon

II: Jobs to be done III: Discovering Jobs to be Done IV: Relentless experimentaIon V: “Right way to organize” Source: Spear


Hitting Targets�


•  See problems

• Solve problems

• Share learning

• Leader lead

I: Sustaining vs. disrupIve innovaIon II: Jobs to be done III: Discovering Jobs to be Done IV: Relentless experimentaIon V: “Right way to organize” Source: Spear


Shaping Informational Space�


Results…�Central Line Infections…�

!Infections: !200,000 per year�!Costs: !$20,000 per treatment �!Deaths: !20% mortality�

$2,000,000,000 per year with 40,000 deaths�

Pittsburgh…70% reduction…�Allegheny General Hospital…complete elimination �

Primary care…�!Increase capacity�!Eliminate “out of session” overwork �

Emergency Care…�!Time to care…�!90 minutes down to 18…�


Results…�

Throughput time…�55% reduction…�

Capacity…�!25% increase�

Unit cost…�!30% decrease�

Fab 17 8” wafers in a 12” world �

Decoding and replicating DNA of Toyota Production System�!Conventional wisdom: TPS DNA = technology�!Discovery: TPS DNA = learning behaviors�

Pratt and Whitney: Jet Engine Design �!Design cycle time: 4 years to 3 �!Engineering Change orders: cut by 1/2 �

Win F-35 Program!!! �


Eureka!!!

Steven J. Spear - MIT SDM – System Design and Management€¦ · Steven J. Spear Sr. Lecturer,...

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