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Winning Strategy
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Si l H ?Singles or Homeruns?
A Winning Strategy for ImprovementImprovement
Jeanie WadeProgram DirectorProgram Director
Northrop Grumman Corporation
The beginning
Opportunity
Deliveries behind
schedule (in Customer Customersschedule (in one case by hundreds of
units)
wants more if we can deliver
Customers unhappy
units)
Opportunity
Individual Playing defense
Many sitting on Moralestar
players
defense only
(reactive)
gthe bench
(dis-engaged)
Morale Low
e gaged)
Opportunity
Strategy Variable Minimal Work Strategy unclear
Variable outcomes
Minimal controls harder
culture
Improvement Strategy
Improvement Strategy
Major Project 1
Initial Performance
40 units per month required 12 units per month delivered (~300 units behind)
Continuous Improvement Process
Value-Stream Map Analysis of takt time
Continuous Improvement People Engagement
p y
Today’s Performance
Solutions identified by floor personnel Resources provided by management
Today s Performance
>70 units delivered consistently for the last 12 months
Today’s People Engagement
Management sees benefit of improvement activities Employees are empowered
Major Project 1 Continuous Improvement Efforts
TechniciansTechniciansAssemblersAssemblersDesign EngineersDesign EngineersMission AssuranceMission Assurance
Identify Parts Identify Parts with Preferred with Preferred CharacteristicsCharacteristics
Design Design ImprovementsImprovements=
ValueValue--Stream Stream MapMap
Process Process ImprovementsImprovements=
100
M1A2 Deliveries
Mission AssuranceMission AssuranceManufacturing EngineersManufacturing EngineersProgram ManagementProgram Management
Identify Supplier Identify Supplier IssuesIssues
Supply Chain Supply Chain ImprovementsImprovements=
60
70
80
90
100
ered
20
30
40
50
60
Uni
ts D
eliv
e
~700% increase in throughput
0
10
20
Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Actual Contract Forecast
Employee Involvement = Month
p yEmpowerment and Improvement
Major Project 2
Initial Performance
Impacting customer with late deliveries High customer return rate
Continuous Improvement Process
Step-by-step failure analysis and corrective action Clean room and handling contamination
Continuous Improvement People Engagement E l d i k
p y p y g
Today’s Performance
Daily Failure Review Board Meetings Design Changes Employees redesign work areas/processes
Today s PerformanceExceeded contract required deliveries consistently for the
last 12 months Customer returns significantly reduced
Today’s People Engagement
Management sees improvement benefits Employees are empowered
Major Project 2 – Data-Driven Improvements
Focused Actions Based on Data = Permanent Improvement
Major Project 3
Initial Performance
>90% First time through test yield required 51% first time through test yield seen
Continuous Improvement Process
Product Characterization Key Test failure analysis
Continuous Improvement People Engagement
y y
Today’s Performance
Value Stream Map Design changes Clean room improvements
Today s Performance
Contract deliveries met consistently
Today’s People Engagement
CI tools used to solve complex problems Employees are empowered
Continuous Improvement Culture
Belief and Understanding through Demonstration and Participation
QA-Driven~90 Champions
Culture-Driven~1000
Champions
A Continuous Improvement Culture is a Force Multiplier
Results
Deliveries meeting Customers Customersmeeting contract
requirements
want to buy more
Customers happy
Results
Teamwork (
Playing Everyone Mo ale(>40 projects in
work)
Playing offense
(proactive)
Everyone involved
(engaged)
Morale Improving
Results
Strategy Predictable Improved Work gyclearly defined
Predictable outcomes
Improved controls smarter
culture
Bottom Line
18