LOGISTICS SUPPORT Lean Systems Engineering Modina Williams Process

LOGISTICS SUPPORT Lean+/ Systems Engineering Modina Williams Process Reengineering Team Lead Sustainment Data Systems, Systems Support Presented to the Midwest Gateway Chapter of the International Council on Systems Engineering (INCOSE) July General Meeting July 26, 2006

Overview • Introduction • What is Lean/ +? • Lean Enterprise • Lean Methodologies/ Tools • Examples • Lean /+ System Engineering • Spirit of Lean 2

Certified Lean Integrator/ AIW Facilitator Process Reengineering Team Lead AIW’s/ Sensing Sessions/ 3 P/ LMA’s /Value Stream Mapping Common Process Initiatives BS In Industrial Engineering 6 Sigma Trainin g Sept 30, 2005 Dion Nehemiah 3 Sustainment Data Systems/Support Systems MS in Project Management Shop Load IE

What is …. . ? Lean: The relentless, systematic elimination of waste to create sustained competitive advantage. Lean+: The one overarching continuous improvement approach Overarching Principles – Responding to customer demand – Eliminate Waste – Being responsive to change – Enhancing the effectiveness of the workforce – Creating a mindset of Continuous Improvement Lean+ Mission: Expand the Lean principles throughout the value stream to enable continued improvement in productivity and long term growth through the business and functions. 4

Waste exists… Wasteful, Non-Value Added Steps Exist in Nearly Every Process in any business New Product Research Conceptual and Detail Design Human Resources Marketing Contracts and Pricing Supply Chain Management Scheduling Transportation Manufacturing Product Support Information Systems Engineering 5

Typical causes of Waste · Layout (distance) · Long set-up time · Poor work methods · Lack of training · Functional organizations · Technology Gaps · Historic supervisory roles · Irrelevant performance measures · Lack of workplace organization · Supplier quality/reliability · More… 6

Why Is the Elimination of Waste So Important? Increase Profit Reduce the Cost of Our Products Shorten Time to Market on New Products Shorten Order Lead Time Improve Quality and Delivery Performance Provide Better Customer Service Integrate New Technologies into our Products quicker, and more effectively ØExpand Market Opportunities ØMake More Profit ØProvide Job Stability ØEncourage Employee Involvement 7

Run healthy core businesses Leverage strengths into new products and services Open new frontiers Lean Enterprise * Our entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs. 8 Detailed customer knowledge and focus Large-scale systems integration Lean enterprise Leadership Integrity Quality Customer satisfaction People working together A diverse and involved team Good corporate citizenship Enhancing shareholder value

Why A Lean Enterprise? Becoming a Lean company is vital to reducing costs and thereby giving Boeing a competitive advantage. By implementing Lean practices we can achieve the 2016 Vision: to have a production system that is among the best in the world, characterized by efficient use of assets, short flow times, short cycle times, high quality, and high inventory turn rates. From the ‘Becoming a Lean Company’ brochure: Message from Fred Mitchell and Alan Mulally, October 1999 9 People working together as a global enterprise for aerospace leadership* Boeing - Forever New Frontiers* Core Competencies Detailed Customer Knowledge and Focus We will seek to understand, anticipate, and be responsive to our customers' needs. Large-Scale System Integration We will continuously develop, advance and protect the technical excellence that allows us to integrate effectively the systems we design and produce. Lean Enterprise* Our entire enterprise will be a Lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.

Getting Results ØEducation - Define what is necessary for different levels. ØOJT Training - for anyone implementing or authorizing implementation. ØLeadership Commitment - (NOT just involvement, you can’t get credit for checking a box!). ØMetrics - The kind that really measures commitment. Cycle reduction, quality, cost, and delivery. ØValue Stream Mapping (VSM) - or some flowcharting version thereof. Somehow the critical path has to be visualized so prioritization can occur and cycle waste can be reduced. ØIdentify and prioritize opportunities. 10

Getting Results ØCreate the Implementation Plan and maintain same. (Yearly, but quarterly would be better. ) ØPerform a yearly Office Lean Assessment. ØTrain Lean Facilitators reporting to one person or to the Lean PAT. These Lean experts need to be committed, just like Lean management. If these people are allowed to facilitate part-time, they will loose the commitment. ) ØIntegrate Lean tools and maintain control of their use. Use the right tool for the application. ØMaintain the gain and never quit implementing improvements. 11

Getting Results ØReward the doers, and make sure everyone has the opportunity to be a doer. ØDo not create an organizational chart until a Lean Plan is in place and everyone know what responsibility they will have 12

Lean Methodologies and Tools Identify the key area for improvement Key Process Identification Sensing Sessions Value Stream Mapping Lean Assessments Operational Assessment (Quality Function Deployment QFD Analysis) Root Cause Analysis Comparative Studies (Benchmarks) Failure Modes Effects Analysis (Preventive Action) Other… Determine the best Lean Methodology Accelerated Improvement Workshop Distribution Kaizen Production Preparation Process Apply the Lean Tools 6 -Sigma Visual Controls Total Productive Maintenance Standard Operations 5 s Continuous Flow Mistake Proofing Set Up Reduction Measures 13

Common Methodology • Understanding and mapping the Value Stream is the foundation –Utilize IDS Standard Value Stream Analysis and Value Stream Mapping Process (Current State / Future Vision / Future State, and Implementation Plan) –Ensure Vision Support Process (VSP) is linked to Future State Map (flow down improvement opportunities) • Organization and Execution –Implementation plan listing overall person(s) responsible, dates and improvement methodology –Utilize standard / simple CI methodologies (AIW, 3 P, 6 Sigma, Team Projects) to execute VSM implementation –Conduct reoccurring Lean meetings to review and update implementation progress (at least 1 meeting / month) • Performance Tracking/ Metrics 14

Metrics – Critical Tools · Keep it simple · Measure what’s important · Use to drive continuous improvement · Share with everyone · Update often · Drive to the lowest level possible 15

Examples… Training Management Systems AIW Mission: To define the future state business processes for SDS Training Management Systems (TMS). …by drive towards identifying the requirements that will allow SDS to integrate and enable a wide array of processes that comprise TMS functions. Sensing Sessions AIW’s Recurring Web. Ex / teleconference for Follow-on completion of TMS Process Modeling AIW: Accelerated Improvement Workshop 16

Examples… Depot Mx. M Business Process Modeling AIW Mission: The Depot Level Maintenance Management AIW seeks to model, review, and enhance existing processes for depot-level maintenance, repair, and modification organizations internal to Integrated Defense Systems Identified Tiger Team to further develop “to-be” process model incorporating Lean initiatives and best practices The team reviewed current process challenges, investigated future-state solutions, and identifed touch points and possible synergies between SDS and i. GOLD as well as potential Depot Level Maintenance business opportunities Recurring Web. Ex / teleconference for Follow-on completion AIW: Accelerated Improvement Workshop 17

Examples… Supply Chain Management AIW Mission: To leverage and build upon existing Supply Chain Management process and tools to develop a framework to deliver a common SDS supply chain management offering for IDS. Held Sensing Session early to determine scope for SDS-SCM Integration AIW Conducted AIW’s to build level 4 SCOR processes for planning; part of SPO implementation processes Processes molded into SCS Value Stream Mapping (VSM) – used SCOR as baseline for spares and repairs processes Recurring Web. Ex / teleconference for Follow-on completion AIW: Accelerated Improvement Workshop 18

Examples… Field Data Analysis (FDA) AIW Mission: To enhance existing/create new (Field, Operations, Logistics & Design Data) Data Analysis processes in support of current and future customer/program needs. To enable Boeing to offer superior support services and product improvement. Conducted Sensing Sessions FDA AIW - Create common, future state, integrated process for data analysis. Inclusive of Engineering, Logistics, and other disciplines (IVHM, R&M, SCM, Field Service, LSA, etc. ) Currently meet on regular basis with SME’s and entire team AIW: Accelerated Improvement Workshop 19

Systems Engineering … John Tracy on Systems Engineering John Tracy, VP Engineering, spoke to IDS on the importance of Systems Engineering to Boeing's ultimate success as a LSI (Large System Integrator). "It provides a systematic approach for you to make sure you're meeting the customer's needs across the full lifecycle of the product. " Systems Engineering @ Boeing The systems engineering process at Boeing consists of four iterative steps that transform a customer's needs into a balanced design. 20

Lean+/Systems Engineering Leadership Team Lean Network Identify Potential Lean Activity VSM, Lean Assessment O&R’s Committed Opportunities Develop Internal Lean Expertise Collect Aggregate Cost & Benefit Data Conduct Events Define Schedule Goals Validate and Target Specific Lean Activity Report Results Identify/Assign Lean Resources Access Lean Resource Database Visibility with Core Lean Office 21 Coordinate & Prioritize with Lean Focals

Basically…… Select The Process & Appoint Process Team Select Process & Appoint Process Team Understand The Current Process Develop & Communicate Vision Of Improved Process Identify Action Plan/ Metrics Execute Plan/ Monitor Metrics 22

The Spirit of LEAN ØDiscard your old attitudes. ØFollow-up the planning with Implementation. ØSUCCESS comes in “cans”; Failure comes in “can’ts”! ØDon’t accept excuses. What will it take to make your ideas work? ØDon’t expect perfection up front, a 50% improvement is okay. ØDon’t substitute money for brains. Improve the process first, and then apply automation to improve efficiency. ØCorrect problems immediately. ØThe people, and management, working together as one team, making improvements. ØIdeas from more people is better, especially the people closest to the problem. Sharing ideas, and establishing common goals. ØThere are NO LIMITS to process improvements. 23

? ’s 24

Back-Up Slides 25

Lean+ Schnettgoecke to Chair PAT Lean Manufacturing Processes Lean Information Technology Common Systems Integration Lean PAT Assigns Process Ownership Lean Engineering Processes Lean SM&P Processes Lean Contracts and Pricing Processes Business Excellence Assessments Customers 26 Lean Program Support Customer Support Services

Lean+ Resource Team Alan Mulally Sponsor John Van Gels Chair Boeing Operations Council Initiative Leadership Lean Process Action Team Terry Finley Vince Tappel (IDS) Ed Dean (BCA) & Steve Junkel (IDS) Rick Behrens (IDS) & Fredric Hale (BCA) John Eash (IDS) John Crutchfield (IDS) & Dwight Miller (BCA) Tom Spiegel (IDS) & Karsten Overa (BCA) John Daniels (BCA) & Dave Thole (IDS) Dayde Mc. Laughlin Phil Howie Mike Trontell Laurie Weise TBD Alan Mulally – Sponsor Bill Schnettgoecke - Leader Project Management Resources Jan Martinson (IDS Lean) Chair Mike Herscher (BCA Lean) Shared Services – Lean Manufacturing Lean Engineering Supplier Development/Global Partners Supplier Quality Industrial Engineering Manufacturing Engineering Materials Mgmt/Supply Chain Mgmt Connexion by Boeing Phantom Works – Lean & Efficient Internal Governance – Ethics Technology – IT Human Resources & Administration Lean+ supporting the businesses 27

BOEING STANDARDS • Sensing Session – A Sensing Session is a facilitated brainstorming session in which we will set the goals, objectives, scope, and boundaries of the upcoming AIW. • Accelerated Improvement Workshop (AIW) – A rapid, learn/do, rigorous and disciplined workshop requiring detailed planning and commitment to action. It brings all functional people involved in the process together as One Team to achieve improvements in cycle time, cost, quality and customer satisfaction by envisioning possibilities, energetically pursuing opportunities and rapidly implementing process changes. • Business Event Flows – A pictorial depiction of the business process including process activities, inputs/outputs, data elements, connectivity between processes, system and manual tasks, and roles and responsibilities. 28

SENSING SESSION What are we doing today? – Is it a core competency? – Is it profitable? – Is it the right thing to be doing—is it meeting the Customers’ current needs/requirements for Boeing Support? – Is it common/consistent across Boeing (common processes)? · Determine Best Practices – Can it be improved or should it be discontinued? 29

SENSING SESSION cont’d · What do we want to do in the future (5 years out)? – Do we have · Vision Statement? · Strategy? · Goals and Objectives? · Time Table? – Do we have the resources to achieve the goals and objectives? · Financial Resources · Organizational/Leadership Support · Human Resources – Do the Skills currently exist in the organization to support the goals? – If not, are we growing/acquiring the skills? » What is the timeline? » What is the training plan, if growing resources? » From where are we planning to acquire, if acquiring? · Facilities and Equipment 30

SENSING SESSION DELIVERABLES • Goals, Objectives, Mission Statement, Scope and Boundaries for the AIW • Assumptions documented • Agreed upon Baseline processes to align/integrate • Deliverables, outputs, & expectations of the AIW identified • Inputs/Deliverables needed to conduct the AIW identified • KEY participants from your organization for the AIW identified 31

Non-Factory AIW Timeline 32

Resources · Lean Enterprise Office - http: //leo. web. boeing. com/home. cfm · Lean Lingo - http: //lean. ks. boeing. com/glossaryr 2. htm · Lean Aerospace Initiative - http: //lean. mit. edu/ 33