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ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
1
MOONSHINE:The LEAN Power-Tool
As-Collected by Pete Laketa, Boeing 757 Program
The Moonshine Concept in Lean Manufacturing
Mr. Capone Mr. Clementi and Mr. Mangano
Are there any similarities with
these gentlemen?
…Perhaps!
moon-shine (moon’shin’) n. 1. A method of disruptive action, that occurs in secrecy, under and around organizational boundaries and procedures, producing order-of-magnitude improvement to any process. 2. A Lean Manufacturing tool that uses fast and inexpensive prototyping to develop and prove a concept, prior to full implementation.
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
2
Some Moonshine HistoryHenry Ford bets that a moving assembly line is the way to go.
Taichii Ohno figures out how to run multiple models through Toyota’s then-tiny assembly building.
Deming suggests that management needs to think differently about work, and their workers.
These and others have contributed to the concept. Moonshine is currently taught at Boeing by Shingijutsu Co. Ltd., The world’s leading consulting firm on Lean Manufacturing.
Moonshine in a Nutshell:“Try Before You Buy!” (aka Try-Storming)Do everything possible to simulate, test , model, prototype and experiment before committing to any one process or solution. The PHYSICAL nature of this research will lead to ideas previously impossible to originate. The learning is in the DOING. (not through meetings, or drawings, or computing, or delegating)
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
3
Moonshine Team Rules (in no particular order)
1.) No Money Spent = Creativity at a New Level
Gutzon Borglum did this through the Depression for 14 years!
Moonshine Team Rules (cont’d)
2.) Pick Self-Starters –gearheads, farmers tinkers, pickup truck owners work out well!
Has nuclear energy
Bow hunts
Thinks Moonshine is too restrictive
Can outrun the Devil with his
hot rod corvette
Machinist and
Fisherman
Would build a scale model of
New York if you let him
Thinks sledgehammers need love too
Alchemist with
machinery
Related to Bobby Knight
Stays out of
the way
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
4
Moonshine Team Rules (cont’d)
3.)The Moonshine Leader should report to an executive-level position.
This does two things:A.) It creates standing for the team and for the commitment to Lean B.) The exec is too busy, and just lets the team GO!
executive
Moonshine Team Rules (cont’d)
4.)The Moonshine Leader provides just-a-little direction at times, then gets out of the way;
A coral reef needs a place to start! (Ideas grow rapidly)
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
5
Moonshine Team Rules (cont’d)
5.) Being on the team is a reward position for people who earned it (as-opposed to a parking lot for less-than-productive units)
Moonshine Team Rules (cont’d)
6.) Formalized Moonshine = Death of Creativity and Speed
(Don’t try to contain Moonshine with forms, procedures, boundaries or other constraints – all of that is provided by the rest of your organization!)
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
6
Moonshine Team Rules (cont’d)
7.) Scrounge for EVERYTHING! EVERYWHERE!
Moonshine Team Rules (cont’d)
8.) Fast and Inexpensive is the ONLY way to Try-Storm
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
7
Moonshine Team Rules (cont’d)
9.) A 50% solution actually implemented, beats all hell out of a 100% perfect plan, created by meetings
before…
…after!
Moonshine Team Rules (cont’d)
10.) Get out of Kansas! To think differently you have to see and try different things – LEAVE YOUR WORKSITE! Frequently!
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
8
Moonshine is Risky Business,but it creates the organizational tensionrequired for change.
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
9
Lean Shipbuilding and Ship Repair Forum
Lean in an Airframe Production Environment
Lean Shipbuilding and Ship Repair Forum
Lean in an Airframe Production Environment
Ian MacAllisterManager, Lean IntegrationAir Combat Systems
April 2003
Seattle, WA
Agenda
• Air Combat Systems Business Area Overview– Product Demographics– People Demographics
• Where We’ve Been• What We’ve Learned Along the Way• Where We’re Going
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
10
Total Sales 2003(E): $25B to $26B
OFFICE OF THE CHAIRMAN
Kent KresaCHAIRMAN AND CEO
Ron SugarPRESIDENT AND COO
Bob IorizzoPresident
ElectronicSystems
~$6.1B
Herb AndersonPresident
InformationTechnology
~$4.7B
Scott SeymourPresident
IntegratedSystems
~$3.7B
Tom SchievelbeinPresident
NewportNews
~$2.5B
Wesley Bush President
SpaceTechnology
~$2.5B 2003ERevenue
Phil Dur President
~$2.6B
Ship Systems
Don Winter President
MissionSystems
~$3.9B
120,000 Employees Worldwide 25 Countries • 50 States
Integrated Capability Production CentersIntegrated Capability Production Centers
• J-STARS
El Segundo,El Segundo,CACA
Lake Charles,Lake Charles,LALA
Integrated SystemsIntegrated Capability Development CentersIntegrated Capability Development Centers
El Segundo,El Segundo,CACA
• Unmanned Systems Design• Targets
• Airborne Surveillance• Electronic Warfare• BMC4I
• Airborne Ground Surveillance• Mine Detection• Integrated Architectures• BMC4I
Rancho Bernardo,Rancho Bernardo,CACA
Bethpage,Bethpage,NYNY
Melbourne,Melbourne,FLFL
• F/A-18• F-5 / T-38• Composites
• Prototypes• B-2• Global Hawk• F-35• Targets
• E-2C• EA-6B
Palmdale,Palmdale,CACA
St Augustine,St Augustine,FLFL
Cyber WarfareIntegration Network
Cyber WarfareIntegration Network
• Long Range Strike• Tactical Air• Airframe Design• Stealth• Space Access• Weapons Integration
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
11
ACS Nationwide Locations
Antelope ValleyManufacturing & Mod
El SegundoManufacturing &
Fabrication
Hill AFBComposites Support
New TownElectrical Fab
Whiteman AFBField Mod Support
Tinker AFBSoftware Quality
Rancho BernardoDevelopment & Assembly
Agenda
• Air Combat Systems Business Area Overview– Product Demographics– People Demographics
• Where We’ve Been• What We’ve Learned Along the Way• Where We’re Going
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
12
1968 Hire
1980 HireEligible for Retirement in 5 Years
Very Few Under 30
Eligible forRetirement Now
Typical Aging Workforce Demographics
Age
%
30’s20’s 50’s 60’s40’s
Average Age = 49
*Ref: RAND Study
Vertical Bars: Military Aircraft Program Starts1950s 1960s 1970s 1980s 1990s 2000s 2010s 2030s
XP5YA2DXC120F4DF3HB52A3DX3S2FX2F10FF2YF100B57F102R3Y1F104A4DB66F11FC130F101T37
XFY1F8UF6M1U2XY3F105X13C133F107B58F106F5DX14C140T2F4A5T39T38AQ1X15F5AX1B
A6B52SR71SC4AX21X19C141B70XC142F111A7OV10X22X26BX5AX24
F14S8YA9A10F15F18YF-17B1YC15YC14AV8bF/A18
F117F20X29T46T45B2V22
F22 EMDYF22YF23JSF X36JSF X37C17
JSF EMDUCAV
2020s
40 Year Career Span
BX
“We Believe That a Declining Experience LevelHas Been a Contributing Factor to the Problems We Observe in Many Recent Aircraft Programs.”
RAND
Eligible for Retirement
RetiredRetired
Experience: 6+ ProgramsExperience: 1-2 Programs
Experience: 1 Program
Retiring
Mid CareerVery Few
Declining Experience Levels
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
13
Lean Enterprise Transformation Roadmap
Decision to
Transform The
Enterprise
Decision to
Transform The
Enterprise
Roadmap to Transformed
Enterprise
Adopt Lean
Paradigm
Adopt Lean
ParadigmLean
Vision
Focus on The Value StreamFocus on The Value Stream
Develop Lean Enterprise Structure
and Behavior
Develop Lean Enterprise Structure
and BehaviorLean Mission
Provide Enterprise Focus
Provide Enterprise Focus
Focus on ContinuousImprovement
Focus on ContinuousImprovement
Lean Implementation
FrameworkDetailed
Corrective Action Plans
Implement Lean Initiatives
Implement Lean Initiatives
Lean Plans
Lean Results
Enterprise Level
Corrective Actions
Long Term Cycle
Short Term Cycle
2 3 4
7
6
51
Lean Enterprise Transformation Roadmap
19991999 20002000
Decision to transform the enterprise
Adopt Lean paradigm• Establish ACS Lean Council
• Implement shop floor pilot projects
• Adopt common systems
Focus on the Value Stream• Programs Value Stream map and project roadmap
• ACS enterprise Value Stream map
• Establish Lean enterprise goals
Develop Lean structure and behavior• Establish Lean incentives
• Adopt process architecture
Provide enterprise focus• Establish enterprise metrics
• Implement beyond the floor pilot
• Develop training modules
• Commit resources
• Train the trainers
Implement enterprise Lean initiatives• Publish the roadmap
• Identify and work high payoffs--“Projects/ Programs”
• Integrate program initiatives
• Educate and train employees
20012001
Focus on continuous improvement• Integrate and implement roadmap action plans
• Follow-up on education and training
• Monitor Lean “Project/Program” progress and mid-course correction
• Nurture the process
• Capture and adopt new knowledge
• Establish infrastructure for growth
• Refine the process for lean
• Identify and work high payoffs--”Enterprise”
20022002 20032003
Focus on continuous improvement• Implement roadmap action plans/revisions
• Monitor Lean “Enterprise” progress and mid-course
• Nurture the process
• Capture and adopt new knowledge
• Adopt dynamic planning
• Refine the process for Lean
• Identify and work high payoffs--”Enterprise”
• Maximize Investment From Lean
• Value Stream Map Each Program & Key Processes
• Link Key program AOP tactics to VSM
• Eliminate waste with Lean tools and Six Sigma
• Move toward Single Piece Flow in all Product Value Streams
• Adopt Lean metrics for all key processes
• Reduce Throughput times by 50%
• Expand Lean Community of Practice role
• Conduct annual LEAP assessment
• Continue Lean Thinking Training
“Today”“Today”“Yesterday”“Yesterday”
Focus on increasing Enterprise Efficiency
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
14
ACS Lean Journey1998 1999 2000 2001 2002 2003
c. 1994 - F/A-18 “Workout” process (EMD Phase)
Q1 Q2 Q3 Q4
Lean Training @ LM Georgia
Operations Leadership Trained
El Segundo
Composites Wire Harness
Tube Shop1st Lean Training class given to ACS employees (16)
Palmdale B-2 Lean eventB2 Event
Lean Manufacturing presented at Leadership Training conferenceEl Segundo, Pico Rivera and Palmdale
NGC commenced Lean Aircraft Initiative participation
Lean Enterprise Organization createdLean Council formed
5-year plan developed
F/A-18 5-year Roadmap initiated
Aero Structures conducted Boeing-sponsored “Gemba Kaizen”
Sector-sponsored Enterprise Lean events (All Executives)
Six Sigma training commenced
F/A-18E/F Direct Line Feed project started
Lean Activities consolidated into Lean Integration organization
Lean Deployment – Phase 1
F-35 5-yearroadmap
Lean Deployment –Phase 2
Sector Common Processes Initiated
Acquisition Excellence SPI
Lean Leadership Training
KaizenTakt Time DPMO/DPU
PPM Quality
RTY
Variability
Six S
igma
Lean
Thi
nkin
g
5S
Kanban
SMED VSM
TPS
7 WastesTPM
Standardize
DOE
FMEACause/Effect
DMAIC
COPQTools for Flow
Pursuit of Perfection
Tools for Pull
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
15
Common Process Platform is the Sector Process Architecture
1.0 Direct the Enterprise
2.0 Provide Financial Services & Control
3.0 Provide Internal Services, Facilities & Infrastructure
7.0 DefineProduct
9.0 SupportProduct
8.0 ProduceProduct
6.0 AcquireBusiness
5.0 Manage Program (IPT)
4.0 Provide Material Acquisition Services
Enabling Processes
Core Processes
ValueValue
Stream Flow Pull Perfection
The Lean Response to Program Phases
Acquire Define Deliver Support
Global Hawk
F-35
F/A-18 E/F
B-2
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
16
Defect Prevention Phasing Enables CPIDefect
DetectionDefect
Prevention
No DesignInfluence
INSPECTING-INQUALITY
• Traditional Inspection
• Sampling• Self
Inspection• Test
Defects per Unit
Defects per Unit
Minimal DesignInfluence
EXISTING PROCESSCHARACTERIZATION
• Pareto Analysis• Statistical
Process Control• Root Cause
Analysis• Process Audit• Gage Study
Moderate DesignInfluence
PREPRODUCTIONCpk ASSESSMENTS
• Design of Experiments
• Six Sigma
High DesignInfluence
DESIGNING-INQUALITY
• Design for Six Sigma
• Design for Mfg• Key
Characteristics• Mistake
Proofing
Defects per Millions
Defects per Millions
FUTUREFUTURE
PRESENTPRESENT
1995 2003 2009
LOQA Supporting IPTs Across Business Area
Industrial Engineering
Production
Tooling
PEOPLE
PROCESS
TECHNOLOGY
HOMEROOMRESPONSIBILITY
Manufacturing Engineering
Business Management
Quality
Homerooms
Operations & QA
Co
mm
on
Pro
cesses
Program Managers
Advanced Fabrication
Centers
EXECUTION RESPONSIBILITY
Antelope Valley Manufacturing Center
El Segundo Manufacturing
Center
Rancho Bernardo Mfg. Center
Lo
ng
Ran
ge S
trike IPT
Dep
ot &
Main
tenan
ce Co
ntracts
F-35 IP
T
F/A-18E
/F IP
T
T-38 / F-5 IP
T
F/A-18C
/D IP
T
Fire S
cou
t IPT
Advanced U
n-Manned S
ystems
To
olin
g O
peratio
ns
Ad
vanced
Man
ufactu
ring
Cen
ter
Com
posites Center
No
rth D
akota M
anu
facturin
g P
lant
Targ
ets IPT
Global H
awk IP
T
Global H
awk IP
T
Targ
ets IPT
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
17
Agenda
• Air Combat Systems Business Area Overview– Product Demographics– People Demographics
• Where We’ve Been• What We’ve Learned Along the Way• Where We’re Going
Lean Implementation Process
• Define Value• Identify Value Stream• Establish Flow• Create Pull• Strive for Perfection
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
18
Common Terms
• Value Added Changes to the Size, Shape, Form, Fit or Function of a Part
• Non-Value Added Required Work that Does Not Change the Part (e.g...Packaging)
• Pure Waste The Operator Is Idle
Objective - Focus on Waste
• Shift the Focal Plane of Management to Differentiate Value From Waste
• Start With Primary Actions Affecting Each Product, Rather Than Organizations, Technologies and Assets
• Learn to Recognize Waste• Have the Courage to Call It Waste• Eliminate / Reduce the Waste
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
19
The Seven Wastes
• Over Production• Transportation• Waiting• Processing• Inventory• Unnecessary Movement• Defective Products
Hidden WasteRaw
Material
SEA OF INVENTORY
POORPOORSCHEDULINGSCHEDULING
MACHINE MACHINE BREAKDOWNBREAKDOWN
QUALITYQUALITYPROBLEMSPROBLEMS
LINELINEIMBALANCEIMBALANCE
LARGELARGELOTLOT
SIZESSIZES
LACK OFLACK OFHOUSE KEEPINGHOUSE KEEPINGLONG
SET-UPTIME
SUPPLIERSUPPLIERDELIVERYDELIVERY
LONGLONGTRANSPORTTRANSPORT
TIMESTIMES
ENGINEERINGCHANGES
INVENTORYINVENTORYINACCURACIESINACCURACIES
COMMUNICATIONCOMMUNICATIONPROBLEMS PROBLEMS
To Reduce the Level of Inventory,You Must Attack the Reasonsfor Inventory
Finished Product
to Consumer
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
20
Exposed WasteRaw
Material
SEA OF INVENTORY
POORPOORSCHEDULINGSCHEDULING
MACHINE MACHINE BREAKDOWNBREAKDOWN
QUALITYQUALITYPROBLEMSPROBLEMS
LINELINEIMBALANCEIMBALANCE
LARGELARGELOTLOT
SIZESSIZES
LACK OFLACK OFHOUSE KEEPINGHOUSE KEEPINGLONG
SET-UPTIME
SUPPLIERSUPPLIERDELIVERYDELIVERY
LONGLONGTRANSPORTTRANSPORT
TIMESTIMES
ENGINEERINGCHANGES
INVENTORYINVENTORYINACCURACIESINACCURACIES
COMMUNICATIONCOMMUNICATIONPROBLEMS PROBLEMS
As Inventory Levels Are Lowered, theFlow of Production Will be DisruptedWithout the Appropriate ProcessImprovements
Finished Product
to Consumer
Before
After
VTUAV Assembly Area at Rancho Bernardo
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
21
Lean On the Shop FloorComposites Tooling – Before and After 5S
BEFORE AFTER
Before
After
Storage Cabinets – 5 S
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
22
Large Parts/Skins Concept
ACS – Common Goods MovementGlobal Hawk Kit Cart Design
Integrating Suppliers On-Site
• Reduce Labor Costs• Elimination of Work In Process• Reduce Usage• Reduce Internal Transportation• Eliminate Hording• Reduce Shortages• Increase Quality
Standard Tools Vending Solution
Creating Solutions With On-Site Suppliers
YesterdayYesterday
TodayToday
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
23
Integrating Suppliers On-Site
• Issues Resolved– Commingled Hardware– Process Instability– Mechanic Hording– Material Shortages– Dissatisfied Customer
Standard Hardware Kitting Solution
TodayToday
YesterdayYesterday
Northrop Grumman Proprietary
46
Lean On the Shop FloorCreating Consistency With Standard Tools
Improved Quality Through Variability Reduction
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
24
Northrop Grumman Proprietary
47
Lean On the Shop FloorImproving Quality by Reducing Task Complexity
Multi-Step Hole Location
Single Step Hole Location
Before
After
Personal Toolbox
Community ToolboxTool Accountability
Lean On the Shop Floor
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
25
Organization Title: Customer/Linkage
Metric Formula: Process Owner
Other GoalsGoal 1 x x . x
Goal 2 x x . x
Goal 3 x x . x
Goal 4 x x . x
Notes
Goal
Customer Representative
Chart Prepared By: ACS Representative
TUBE ASSEMBLY MONTHLY AVERAGE THROUGHPUT TIME (M-DAYS)
METALLIC CENTER
2216
03 04
29 3125
36
1STQTR02
2NDQTR
02
3RDQTR02
4THQTR02
AVE. PART
24.4
0
20
40
60
80
100
N D J F M A M J J A S O N D
M-D
AY
SBlue = < GOAL, 3 CONSECUTIVE MTHSGreen = GOALYellow = >GOALRed = > GOAL 2 CONSECUTIVE MTHS OR MORE
MANAGE THROUGHPUT TIME
N. W.METALLIC MFG
J. S.
C.T.
Historical
2003Y.H.
R. F.
2002
Performance Metric – Tube ShopThroughput Reduction
7005
6022
8523
0
3000
6000
9000
12000
15000
PIE
CE
S
0
3000
6000
9000
12000
15000
WORK IN PROCESSTARGET8 WK. AVERAGE
WORK IN PROCESS 8523 6022 7 0 0 5 6 8 5 1 6550 6 2 8 0 7425 8548 9116 7792 6046 6222 5 9 2 3 6239 6885 6 7 6 8 6513 7052 5779 5510 5213 4920 4 5 2 3 4464 4504 4 4 2 7 4584
TARGET 9055 7917 6 6 7 9 6432 6036 5 4 6 2 4750 4750 4750 4750 4750 4750 4 7 5 0 4750 4750 4 7 5 0 4750 4750 4750 4750 4750 4750 4 7 5 0 4750 4750 4 7 5 0 4750 4750 4750 4750 4750 4750
8 WK. AVERAGE 5510 5362 5214 5 0 4 2 4926 4856 4 7 9 4 4768
2ND QTR
01
3RD QTR
01
4TH QTR
0 1
J a n-02
Feb-0 2
Mar-02
Apr-02
May-02
Jun -0 2
Jul -02 8/2 8/9 8/16 8/23 8/30 9 / 6 9/13 9/20 9/27 10/4 10/11 10/18
10/25 11/1 11/8 11/1511/22 11/29 12/6 12/13
12/20
12/27
Tube WIP Piece Count ProfileMETALLIC FABRICATION
Performance Metric – Tube ShopWIP Reduction
1
10 Units per Year
46 Units per Year
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
26
Agenda
• Air Combat Systems Business Area Overview– Product Demographics– People Demographics
• Where We’ve Been• What We’ve Learned Along the Way• Where We’re Going
Driving Lean Beyond the Floor
%
Typical Program
100
80
60
40
20
0
%
100
80
60
40
20
0
30%30%ReductionReduction
1.91% Red.In Total Costs
MarketingMarketing ProductDesign
ProductDesign
SupplyBase
SupplyBase
MaterielMateriel BusinessMgmt
BusinessMgmt
HR&AHR&A SchedSched Eng’rngEng’rng MfgMfg
Value Stream Mapping – A Strategic ApproachCapturing All Processes That Have a Hand in Designing, Producing
and/or Delivering a Product to the Customer
Value Stream Mapping – A Strategic ApproachCapturing All Processes That Have a Hand in Designing, Producing
and/or Delivering a Product to the Customer• Communication Links• Control / Reporting Systems• Communication Links• Control / Reporting Systems
• Metrics• Forms, Paper Work• Metrics• Forms, Paper Work
•• Factory Direct Touch Labor $Factory Direct Touch Labor $• Factory Direct Support Labor $• Engineering Direct $• Material $
• Other Manufacturing Direct $• (IWO, Data Processing & Misc.)
• Factory Indirect $• Other Indirect $• G & A $
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
27
050
100
150200
260 LEAN Projects at ACS
Floor30%
78
182 Beyond the Floor Examples
• Multi-Functional Device Deployment
• Recruitment & Hiring Process
• eSecurity BriefingsBeyond
the Floor70%
Provide Solutions to Optimize Build Activity
Advanced Planning Systems
Assembly Model
Assembly Model
Manufacturing ProcessPerformance System
eFactory
Assembly Labor Estimating Systems
Discreet Factory Simulation
acdfegbwe-89
Tool ManagementWebsite
Integrated Automation Systems
Advanced Shop Floor Control Systems
Video Stream Process Work Instructions
eFactory Network
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
28
ProcessProcess
ContinuousContinuous
ImprovementImprovement
eeProcessProcess
Factory of Today
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
29
Factory of the Future – TomorrowCommon Processes / PracticesCommon Processes / Practices
Shared TechnologiesShared Technologies
Optimized Capital Asset UseOptimized Capital Asset Use
Common Shop Floor Control SystemCommon Shop Floor Control System
Multi-Program Capable WorkforceMulti-Program Capable Workforce
Optimal Process PerformanceOptimal Process Performance
Creating a Creating a Culture of Culture of
Continuous Continuous ImprovementImprovement
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
30
Relationships…the Key to a Successful Lean Transformation
Presented By:Christiane Lee – DynaBil Industries
Larry Godt – Emerge Business Strategies
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
31
DynaBil Industries Background
• Ownership– Founded in 1976– Privately owned
• Products– Formed sheet metal products and assemblies
• Location– Coxsackie, New York
• Major customers– Boeing, Sikorsky, Lockheed, Vought, Bell, Monitor
Aerospace
Before Transformation
43%On-Time Performance
•72% of workforce less than 1 year on job
•Rapid increase in production rates•High amount of rework especially in trim
Critical Issues
2 – New York, CaliforniaDivisions
$43KTraining
$312KCapital Expenditures
$78KSales / Employee
285Employees
$25MSales
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
32
Outbound Logistics:
60% of shipments Incomplete
Over 150 jobs in queue
Work-in-Process
Typical throughputtime of ~12 weeks
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
33
Phases of Our Transformation
Identify need
for change
Develop Strategy
Implement Strategy
Cont. Improvement
Q4 ‘97 Q1 ‘98 Q2 ’98 – Q2 ‘99
Ongoing
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
34
Identify Need for Change
• Our customer (Boeing) was instrumental in this phase:– Supplier conference for introduction to program– Provided consultant to help with our
implementation– Shared lessons learned in their journey
• Facility tours• Lean office resources
Identify Need for Change
Workshops–Brakeform–Outbound Logistics–Contracts
Assessment
Management Education
Activity
94% â inventory90% â flow time40%â space75% â travel
•Demonstrate possibilities•Improve performance•Begin training internal experts
Customer – Mgt Team - Employee
Agreement to do workshops
•Establish baseline•Recognize opportunities
Customer – Mgt Team
ResultPurposeKey Relationship
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
35
Develop Strategy
• The strategy development phase is used to align the organization:– Vision (Technical, Political, Cultural)– Roadmap– Resources– Measures
Develop Strategy
Employee Survey
Strategy Rollout Meetings
Retreat prep work & study
Strategic Planning Retreats
Activity
•Personal plans more aligned with strategy•Common understanding
•Obtain employee input•Share strategy
Mgt Team -Employees
•Shared Vision•Roadmap to reach vision•Common understanding
•Build common foundation for strategic planning session•Alignment on vision, measures & roadmap
Mgt Team
ResultPurposeKey Relationship
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
36
Implement Strategy
• Phase 1: First Aid and Preparation (10 months)– Stop the bleeding– Build foundation for phase 2
• Phase 2: Model Line (4 months)– Application of lean principles “inch wide/mile deep”– Stress the system to find weaknesses and improve– Build internal capability – Greater understanding of needs for full transformation
Phase 1: First Aid & Preparation
•Audit current policies•Develop retention policy•Establish learning network•Create flexible job descriptions•Identify product families & model line•Create process to drive transformation•Develop supplier strategy•Align performance management system
Activity
Make sure systems support the new way of thinking
Mgt Team – Bus. Processes
PurposeKey Relationship
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
37
Phase 1: First Aid & Preparation
Prepare employees for the transformation
•Conduct 7 Habits and Lean training•Certify workshop leaders•Conduct skills assessment & train•Hold standard communication meetings•Remove “non-converters”
Mgt Team -Employees
•Conduct 1 – 2 workshops / mo.•Apply training to identify and eliminate waste•Map value streams
Activity
Improve processes and develop “lean muscles” in preparation for company wide improvement
Employees –Process
PurposeKey Relationship
Phase 2: Model Line
– Application of lean principles “inch wide/mile deep”
– Stress the system to find weaknesses and improve
– Build internal capability – Greater understanding of needs for full
transformation
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
38
Phase 2: Model Line
Ensure support systems will support the changes on the factory floor
•Accounting system changes •Strategic planning process •Production planning & control methods – integration w/ MRP•Quality system changes to support lean
Mgt Team – Bus. Processes
Activity PurposeKey Relationship
Phase 2: Model Line
Establish boundaries for ML, provide necessary support to make it a success
•Model line visioning and action planning•Cross-training on job skills•Financial commitment to make changes (facility, equipment etc.)
Mgt Team -Employees
•Creation of cells•Implement pull•Materials, tools, info at point of use•Reduce lot sizes, strive for single-pc flow•Apply lean tools
Activity
Strengthen lean muscles by application
Improve business results
Employees –Process
PurposeKey Relationship
ALL RIGHTS RESERVED Copyright 2003, The Boeing Company
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Continuous Improvement
• Complete cellularization of shop floor• Modify business systems to handle Lean• Create value streams• Link with customers and suppliers• Feedback to create the new strategies• Identify additional training needs• Identify additional improvement tools
Continuous Improvement
•Cross-training•Financial commitment to make changes
•Strategic planning process•Change business systems
Activity
Plans aligned with strategic objectives
Provide necessary support for success
Mgt Team -Employees
Strategic plans consider Lean with future initiatives
Business processes are Lean enabled
Identify next steps
Identify additional improvement tools
Mgt Team – Bus. Processes
ResultPurposeKey Relationship
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Continuous Improvement
•Identify part families•Implement pull•Point of use materials, tools, info•Reduce lot sizes•Apply lean tools
Activity
Additional value streams identified and implemented
Up to 1000% lead time improvement for value stream part families
Identify future value streams
Improve business results
Employees –Process
ResultPurposeKey Relationship
After Transformation (2001)
87%On-Time Performance
•Reduced sales due to industry downturn
•Higher percentage of sales is new work
Critical Issues
1 – New YorkDivisions
$75KTraining
$487KCapital Expenditures
$129KSales / Employee
135Employees
$17.7MSales
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Transformation Effects
65% increaseSales / Employee
56% increaseCapital Expenditures
75% increaseTraining
103% increaseOn-Time Performance
50% reductionDivisions
53% reductionEmployees
Since 9/11/2001
• Lean has enabled us to– Not lay-off any employees– Integrate new work into shop– Continue to decrease throughput time– Vertically integrate processes– Use our relationships to bring in new work
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Lean Improvements
Summary
Transforming an organization to a Lean Enterprise is hard work that involves many relationships.
Focusing on the relationships is critical!
It’s worth the hard work!