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© 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!!!
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Creative experimentation�
Jester Image Source: http://www.zebraentertainmentandevents.com/entertainers.html#.Twn2nSM9x6o
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Creative experimentation�
Relentless building of useful knowledge��-- Everybody�-- Everywhere�-- All the time�
Time
Know
ledge
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
(*) See chapter 2 and 3 for examples
Modified: May 9 11
Simple to Complex�
Value creation
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Time
Volume
X 75% X 56% X 42% X
Target production volume
Creative experimentation�
“We no longer do high volume manufacturing…�
…we do high volume engineering!”�
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Creative experimentation�• Strategy�
• Identify targets�
• Operations�• Hit targets�
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Discovering Targets�
Source: Toyota
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Discovering Targets�
Source: Toyota
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Discovering Targets�
Source: Toyota
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Discovering Targets�
• What problem? • At point of use?
• Data • Interview • Focus groups
Source: Toyota
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Decoding Mary�
H SNF
Decoding Phil�
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Experimentation�
Double blind�Random controlled�
Large sample�
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Customer Satisfaction�Routing
Communi- cation
Escalation
Solution
KBM
Training
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Hitting Targets�
Great Point Energy
Source: Spear
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
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
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Hitting Targets�
Great Point Energy USS Nau'lus
• 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
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Hitting Targets�
Great Point Energy USS Nau'lus
• 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
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
Shaping Informational Space�
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
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…�
© Steven J. Spear 2012 http://TheHighVelocityEdge.Com [email protected]
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!!! �