the lean power -tool - makigami.info moonshine.pdfall rights reserved copyright 2003, the boeing...

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.


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)


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


4


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


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)


5


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)


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!)


6


7.) Scrounge for EVERYTHING! EVERYWHERE!


8.) Fast and Inexpensive is the ONLY way to Try-Storm


7


9.) A 50% solution actually implemented, beats all hell out of a 100% perfect plan, created by meetings

before…

…after!


10.) Get out of Kansas! To think differently you have to see and try different things – LEAVE YOUR WORKSITE! Frequently!


8

Moonshine is Risky Business,but it creates the organizational tensionrequired for change.


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


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


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




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


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


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


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


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


17

Agenda



Lean Implementation Process

• Define Value• Identify Value Stream• Establish Flow• Create Pull• Strive for Perfection


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


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


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


21

Lean On the Shop FloorComposites Tooling – Before and After 5S

BEFORE AFTER

Before

After

Storage Cabinets – 5 S


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


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


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


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


26

Agenda



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 $


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


28

ProcessProcess

ContinuousContinuous

ImprovementImprovement

eeProcessProcess

Factory of Today


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


30

Relationships…the Key to a Successful Lean Transformation

Presented By:Christiane Lee – DynaBil Industries

Larry Godt – Emerge Business Strategies


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


32

Outbound Logistics:

60% of shipments Incomplete

Over 150 jobs in queue

Work-in-Process

Typical throughputtime of ~12 weeks


33

Phases of Our Transformation

Identify need

for change

Develop Strategy

Implement Strategy

Cont. Improvement

Q4 ‘97 Q1 ‘98 Q2 ’98 – Q2 ‘99

Ongoing


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


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



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


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


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


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


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




39

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


•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




40


•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



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


41

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


42

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!

the lean power -tool - makigami.info moonshine.pdfall rights reserved copyright 2003, the boeing...

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