TABLE OF CONTENTS In this chapter we will begin to dissect the inner workings of the Lean Extended Enterprise Reference Model and focus on explaining the various panels of value stream integration. We will also present barriers to success and common pitfalls as organizations go through the framework of the model.
The Lean Extended Enterprise Reference Model (LEERM) in Figure 2.1 is a structured framework for assisting companies, their customers, and suppliers in their transition to a total value stream conversion of lean. The model provides a structured methodology for creating a customer-centric enterprise followed by aligned execution to increase customer value. The LEERM is a never-ending pursuit of perfection and velocity improvement targeted across the total value stream. New product launches, new customer requirements, acquisitions, or other major events create the need for organizations to either continue in their current cycle of improvement or shift back to a previous cycle.
The architecture of the LEERM includes four layers, which we refer to as Panels of Value Stream Integration (Figure 2.2). There are four distinct Panels of Value Stream Integration:
Strategic Journey Panel: Includes the fundamental building blocks for an inter-, intra-, and extra-enterprise-wide lean initiative.
Best Practices and Principles Panel: The flow of categories and criteria for implementing a successful Lean Extended Enterprise. It is an expansion of the five basic principles of lean into 42 distinct criteria covering the entire breadth and...
