David Cochran, Ph.D.Gordon Schmidt, Ph.D.

Jason Barnes, M.S.

Indiana University-Purdue University Fort Wayne

BUILDING AN INTEGRATEDLEADERSHIP AND LEAN SYSTEM DESIGN

MASTER’S DEGREE

STATE OF“THE ART”

• Companies need engineers and managers who understand Lean principles.

• Engineers are taught mostly to “fix” a problem with the product, not with the process or the company.

• Leadership and systems knowledge must go hand in hand.

CENTER OF EXCELLENCE INSYSTEMS ENGINEERING

• Mission:

• Offer IPFW students an education in Systems Engineering that enables the student to lead enterprise change and develop superior products.

• Provide the industries and enterprises of Northeast Indiana with the Systems Engineering leadership and research facilities to sustain and grow their businesses.

• Currently offers master’s degree specializing in Systems Engineering.

OUR VISION:INTEGRATING THREE ASPECTS OF SYSTEMS

• Product systems:

• Traditional SE focuses on the lifecycle of a product.

• Enterprise systems:

• The company or organizational design should also be considered a system (the value stream). There is a need for a language for system design.

• Leadership:

• Leaders provide the common vision for design development, implementation, and use. This must be achieved through collective agreement.

DEPARTMENT OF ORGANIZATIONAL LEADERSHIP & SUPERVISION

• Mission:

• To integrate theory and practical application in developing leaders for roles in the dynamic organizational environment of the 21st century.

• Located in the College of Engineering, Technology, and Computer Science.

• Has associate’s, bachelor’s, and master’s degrees in Leadership.

• Teach future leaders and HR professionals in Northeast Indiana.

THE IMPORTANCEOF LEADERSHIP

• Goal:

• Preparing leaders to lead workers in creating and sustaining an environment of continuous improvement

• Crucial concepts:

• Empowerment, Shared Leadership, Transformational Leadership,Path-goal Leadership, Goal Setting,Motivation, Engagement, Teamwork

John: The CounterWill: The GrillTed: The ManagerWelcome!

This restaurant is losing money due to a lot of waste. Orders often have mistakes and take longer than they

should to get out to the customers.

How should the manager Ted approach the problem to reduce the overall system waste?

EXAMPLE ORGANIZATION:BRUTUS’ BUCKEYE BURGERS

BRUTUS’ BUCKEYE BURGERS:AT THE GRILL

Will only cooks three burgers at a time.There are many times when Will is doing nothing but watching the burgers, even though extra grill space may be available and orders waiting.

Ted realizes that Will is inefficient and has him load the grill until it is either full

or there are no more orders waiting.No more waste… right?

BRUTUS’ BUCKEYE BURGERS:AT THE COUNTER

John rings up customers’ orders and writes them on a slip of paper used as an order ticket. Then John goes back into the kitchen to hand the order to Will.

Ted can’t cost justify a fancy electronic ordering system. But he has come up with an idea that cuts down on waste: John can just shout the orders to Will.

BRUTUS’ BUCKEYE BURGERS:SYSTEM VIEWPOINT

At the counter, Ted has eliminated a means of documenting the orders, possibly adding more errors.

Do the changes Ted has made at the counter and grill help reduce the restaurant’s waste?

At the grill, Ted has made the operation go faster, which will only increase the number of errors in a given time.

Ted has focused on improving individual operations (point Kaizen) rather than the waste of the overall

system (value stream). In doing so, he has eliminated the context of the waste.

Ted should instead focus on making sure that customers get what they ordered, a top-level

functional requirement of this restaurant system.

LANGUAGE FORCOLLECTIVE SYSTEM DESIGN

MFR /

KPPFR

PSStandard

Work

A PS is a hypothesisto achieve an FR

CustomerNeeds

1st Stepof Design

MPS /

KPP

3rd Stepof Design

(as needed)

2nd Stepof Design

4th Stepof Design

(as needed)

Functional Requirement

Physical Solution

Performance Measure(on the FR)

Performance Measure(on the PS)

FR

PS

FR2

PS2

FR3

PS3

FR1

PS1Collective System Design may be characterized as a sequence of design relationships:

Functional Requirement (FR)

Physical Solution (PS)

– Measure on an FR is MFR

– Measure on a PS is MPS

Not every FR or PS requires a measure.

MFR

MFR1 MFR3

MPS

MPS1

LEARNING LOOP TO SUSTAINENTERPRISE DESIGN

Plan (PSs)Standard Work

(Hypothesis)

DO (PSs)Standard Work

CHECK / StudyStandard Work &

Measures –MFR and MPS

ACTMake Changes

Change FRChange PSand Update Map

No ChangeED Map

Revised System

Design Map

FR1 FR2 FR3

PS1 PS2 PS3

New MFR and/or MPS

COURSES TO SUPPORT INTEGRATED DEGREE:SYSTEMS ENGINEERING

• Organizations as Systems (new course):

• Teach students to focus on the organization itself as a collective system design.

• Advanced Manufacturing Systems and Processes (new course):

• Lean as a system design and the resulting methods and outcomes.

• Systems Engineering Management (SE 53000):

• Roles and activities of the team in managing and coordinating product development.

COURSES TO SUPPORT INTEGRATED DEGREE:ORGANIZATIONAL LEADERSHIP

• Motivation in Organizations (new course):

• Learning how to motivate workers through goal setting and other motivational practices, as well as increase overall employee engagement.

• Leading Others (OLS 51000):

• Learning skills of being a leader with a focus on empowerment of a workforce and the mechanisms that help facilitate shared leadership.

• Collaborative Projects and Teams (OLS 54000):

• Learning how to develop and work within a wide variety of teams and engage in successful teamwork and shared leadership.

NEXT STEPS FORWARD

• Creating a 2 track system for entry to the program

• Students in the OLS master’s that take SE courses to do a concentration in Leadership & Lean System Design

• Students in the SE master’s that take OLS courses to do a concentration in Leadership & Lean System Design

• Create a detailed structural plan for program

• Decide on other courses and determine what is mandatory vs. elective

• Build support for the program within university

• Gain support of Vice Chancellor of Academic Affairs

• Increase level of support from Dean and relevant faculty

QUESTIONS AND DISCUSSIONDavid S. Cochran, Ph.D.Associate Professor and DirectorCenter of Excellence in Systems Engineering

Office (260) 481-0341Email cochrand@ipfw.edu

Gordon B. Schmidt, Ph.D.Assistant ProfessorDivision of Organizational Leadership and Supervision

Office (260) 481-6549Email schmidtg@ipfw.edu

Jason BarnesAssociate DirectorCenter of Excellence in Systems Engineering

Office (260) 481-6370Email barnesj@ipfw.edu

THE 7 FRS OF THE ENTERPRISE DESIGNFOR STABILITY

FR DescriptionFR1 Provide a safe, clean, quiet, bright, ergonomically sound environment –

fundamentalFR2 Produce the work as the customer needs it – from JIT

FR3 Produce what the customer wants – from JIT

FR4 Do not advance a defect to the customer of the work – from Jidoka

FR5 Achieve FR2‑FR4 in spite of operation variation – robustness

FR6 When a problem occurs in accomplishing FR2‑FR4, rapidly identify the problem condition and respond in a pre-defined way – controllability

FR7 Produce product with the Least Time in System