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www.lean.org

Lean Startup Conference
San Francisco

Lean Startup – From Toyota City to
Fremont to You
John Shook
Chairman and CEO
Lean Enterprise Institute
www.lean.org
December 2013
Lean…
“Lean” was named exactly 25 years
ago

“The Triumph of
Lean
Production”
-John Krafcik
1988

3
“Flow Production ” Was Born Exactly 100 Years
Ago

4
The Birth of Flow Production
– Ford Highland Park
In Search of the World’s Best Production and
Management Systems
In Search of the World’s Best Production
and Management Systems
Toyota City – Lean’s Incubator
Never Overproduce; Never Pass on a
Defect

“Customer First”…and the Following Process is a Customer!
Earliest Photo of a Kanban
One-Piece Flow…
Where’s
mine?!

Don’t “Starve” the Customer
Together…

…Smooth,

Uninterrupted Flow of Value
aka  JIT
Lean…
New United Motor Manufacturing, Inc. –
NUMMI – built its first car in December 1984
and its last on April 1, 2010.
NUMMI kick-started a revolution.
Joint Venture
The Worst Factory in the World…
Certified
Worst!
17
From the Worst to the Best…

Certified!
Eij
i
So, How Did You Really Change
the Culture at NUMMI?
Two Things…
Manage to Engage Everyone in
Continuous Experimentation

22
Problems Happen…
What Do We Do With Them?
Hiding Problems is the Most Anti-lean Problem.

“No problem
is a problem!”
Ford Milpitas CA Plant
Ford Milpitas CA Plant Today
Ford’s Model T Plaza
Highland
Park
Today
GM Fremont  What went wrong?
• It’s a Management System!
• It’s an Organizational and a Personal Transformation.

This is not a pipe.
Lean Startup?
• Lean is about solving problems
through continuous experimentation.
• We ask: what is our purpose as an
organization or what problem are we
trying to solve?
• So, what problems do startups face?
Lean Startup?
What problems do startups face that are
different from those of established
enterprises?
More uncertainty?
Fewer resources?
Greater risk?
Anything else really?
• It’s a Management System!
• It’s an Organizational and a Personal Transformation.

This is not a pipe.
www.lean.org
Define Your Purpose
Improve the Work
Develop the People

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