LOGISTICS SUPPORTLOGISTICS SUPPORT Lean+/ Systems Engineering

Modina WilliamsProcess 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

2

Overview

• Introduction

• What is Lean/ +? • Lean Enterprise

• Lean Methodologies/ Tools

• Examples

• Lean /+ System Engineering

• Spirit of Lean

3

Common Process

Initiatives

BS In Industrial

Engineering

Certified Lean Integrator/ AIW

Facilitator

Sustainment Data Systems/Support

Systems

MS in Project Management

Shop Load IE

Sept 30, 2005Dion

Nehemiah

Process Reengineering

Team Lead

6 SigmaTrainin

g

AIW’s/ Sensing

Sessions/ 3P/ LMA’s /Value

Stream Mapping

4

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.

5

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

Systems Engineering

6

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…

7

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

Expand Market OpportunitiesMake More ProfitProvide Job StabilityEncourage Employee Involvement

8

Run healthy core businessesLeverage strengths into new products and servicesOpen new frontiers

Detailed customer knowledge and focusLarge-scale systems integrationLean enterprise

LeadershipIntegrityQualityCustomer satisfactionPeople working togetherA diverse and involved teamGood corporate citizenshipEnhancing shareholder value

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 andlow transaction costs.

9

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

Core CompetenciesDetailed Customer Knowledge and FocusWe will seek to understand, anticipate, and be responsive to our customers' needs.

Large-Scale System IntegrationWe 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.

People working togetheras a global enterprise for aerospace leadership*

Boeing - Forever New Frontiers*

10

Getting ResultsEducation - Define what is necessary for different levels.

OJT Training - for anyone implementing or authorizing implementation.

Leadership Commitment - (NOT just involvement, you can’t get

credit for checking a box!).

Metrics - The kind that really measures commitment.

Cycle reduction, quality, cost, and delivery.

Value 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.

Identify and prioritize opportunities.

11

Getting ResultsCreate the Implementation Plan and maintain same. (Yearly, but quarterly would be better.)

Perform a yearly Office Lean Assessment.

Train 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.)

Integrate Lean tools and maintain control of their use. Use the right tool for

the application.

Maintain the gain and never quit implementing improvements.

12

Getting ResultsReward the doers, and make sure everyone has the opportunity to be a doer.

Do not create an organizational chart until a Lean Plan is in place and everyone know what responsibility they will have

13

Lean Methodologies and ToolsIdentify the key area for improvementKey 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 MethodologyAccelerated Improvement WorkshopDistribution KaizenProduction Preparation Process6-SigmaTotal Productive Maintenance5s

Apply the Lean ToolsVisual ControlsStandard OperationsContinuous FlowMistake ProofingSet Up ReductionMeasures

14

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, 3P, 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

15

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

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North

Field Data Analysis Non-Factory AIW Timeline

0……….……….…....20 ……………. 115

Days

Fie

l d D

a ta

An

alys

is A

I W

5 /9

–5 /

12

Se

ns

ing

Ses

sio

n #

1 4

/12

/06

Se

ns

ing

Ses

sio

n #

2 4

/13

/06

Se

ns

ing

Ses

sio

n #

3 4

/18

/06

Co

nse

ns

us

Se

ns

ing

Se

ssio

n 4

/20

/06

Fie

l d D

a ta

An

alys

is A

I W In

itia

l R

eqm

ts f

or

Sp

i ral

4 R

epo

r t O

ut

6 /22

/06

Se

ns

ing

Ses

sio

n #

4 4

/19

/06

Fie

l d D

a ta

An

alys

is A

I W

Ex

e cu

tiv e

Ou

tbri

ef

Fie

l d D

a ta

An

alys

is A

I W 9

0 D

ayF

ina l

Ex

ecu

tive

Ou

t bri

ef T

BD

AIW

Fo

ll ow

On

Ac t

ivit

ies

AIW

Fo

ll ow

On

Ac t

ivit

ies

AIW

Fo

ll ow

On

Ac t

ivit

ies

Fin

al C

on

se

ns

us

Se

ns

ing

Se

ss

ion

4/2

6/0

6

Functional Team Requirements Process Overview (through SDR)

Re

qu

ire

me

nts

Su

bte

am

Cro

ss

-Fu

nc

tio

na

lIn

teg

rati

on

Su

bte

am

4/28/2006Functional TeamRequirements KO

6/7/2006Draft BRS for

Functional Team

7/18/2006Draft SRS for

Functional Team

9/6/2006Final SRS for

Functional Team

APRIL MAY JUNE JULY AUGUST SEPTEMBER

6/23/2006BRS Gate(Approval)

7/7/2006Final BRS for

Functional Area

8/4/2006

SRR9/15/2006

SDR

Develop Business Requirements for Functional Area

Develop System Requirements for Functional Area

Integrate SDS Business RequirementsSpecification (BRS)

Integrate SDS System RequirementsSpecification (SRS)

Nominal Dates(Varies for each team)

Scheduled Milestones

8/22/2006SRS Gate(Approval)

0

10

20

30

40

50

60

70

1st qtr05

2ndqtr 05

3rdqtr 05

4th qtr05

1st qtr06

2ndqtr 06

3rdqtr 06

4th qtr06

Projected

VSM

AIW

16

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 WebEx / teleconference for Follow-on completion of TMS Process Modeling

AIW: Accelerated Improvement Workshop

17

Examples…

Depot MxM 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 iGOLD as well as potential Depot Level Maintenance business opportunities

Recurring WebEx / teleconference for Follow-on completion

AIW: Accelerated Improvement Workshop

18

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 WebEx / teleconference for Follow-on completion

AIW: Accelerated Improvement Workshop

19

Examples…

AIW: Accelerated Improvement Workshop

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

20

Systems Engineering …John Tracy on Systems EngineeringJohn 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 @ BoeingThe systems engineering process at Boeing consists of four iterative steps that transform a customer's needs into a balanced design.   

21

Identify Potential Lean Activity

VSM, Lean Assessment

Define ScheduleGoals

Validate and Target Specific Lean Activity

Identify/Assign Lean Resources

Visibility with Core

Lean Office

Develop Internal Lean Expertise

Access Lean Resource Database

Report Results

Coordinate & Prioritize with Lean Focals

Conduct Events

O&R’sCommitted

Opportunities

Collect Aggregate Cost & Benefit Data

Leadership Team

Lean Network

Lean+/Systems Engineering

22

Execute Plan/ Monitor Metrics

Select The Process & Appoint Process Team

Understand The Current Process

Develop & Communicate Vision Of

Improved Process

Identify Action Plan/ Metrics

Select Process & Appoint Process Team

Basically……

23

The Spirit of LEAN

Discard your old attitudes.Follow-up the planning with Implementation.SUCCESS comes in “cans”; Failure comes in “can’ts”!Don’t accept excuses. What will it take to make your ideas work?Don’t expect perfection up front, a 50% improvement is okay.Don’t substitute money for brains. Improve the process first, and then

apply automation to improve efficiency.Correct problems immediately.The people, and management, working together as one team, making

improvements.Ideas from more people is better, especially the people closest to the

problem. Sharing ideas, and establishing common goals.There are NO LIMITS to process improvements.

24

?’s

25

Back-Up Slides

26

Lean+

LeanPAT

Lean Manufacturing

Processes

LeanEngineeringProcesses

LeanSM&P

Processes

BusinessExcellence

LeanContracts and

PricingProcesses

AssessmentsCustomers

LeanInformationTechnology

LeanProgramSupport

AssignsProcessOwnership

CommonSystemsIntegration

Schnettgoecketo Chair

PAT

CustomerSupportServices

27

Lean+Resource Team

BoeingOperations

Council

BoeingOperations

Council

Alan Mulally - SponsorJohn Van Gels - Chair

Alan Mulally – SponsorBill Schnettgoecke - LeaderProject Management Resources

Terry Finley Shared Services – LeanVince Tappel (IDS) Lean ManufacturingEd Dean (BCA) & Steve Junkel (IDS) Lean EngineeringRick Behrens (IDS) & Fredric Hale (BCA) Supplier Development/Global PartnersJohn Eash (IDS) Supplier QualityJohn Crutchfield (IDS) & Dwight Miller (BCA) Industrial EngineeringTom Spiegel (IDS) & Karsten Overa (BCA) Manufacturing EngineeringJohn Daniels (BCA) & Dave Thole (IDS) Materials Mgmt/Supply Chain MgmtDayde McLaughlin Connexion by BoeingPhil Howie Phantom Works – Lean & EfficientMike Trontell Internal Governance – EthicsLaurie Weise Technology – ITTBD Human Resources & Administration

Terry Finley Shared Services – LeanVince Tappel (IDS) Lean ManufacturingEd Dean (BCA) & Steve Junkel (IDS) Lean EngineeringRick Behrens (IDS) & Fredric Hale (BCA) Supplier Development/Global PartnersJohn Eash (IDS) Supplier QualityJohn Crutchfield (IDS) & Dwight Miller (BCA) Industrial EngineeringTom Spiegel (IDS) & Karsten Overa (BCA) Manufacturing EngineeringJohn Daniels (BCA) & Dave Thole (IDS) Materials Mgmt/Supply Chain MgmtDayde McLaughlin Connexion by BoeingPhil Howie Phantom Works – Lean & EfficientMike Trontell Internal Governance – EthicsLaurie Weise Technology – ITTBD Human Resources & Administration

InitiativeLeadership

InitiativeLeadership

LeanProcess Action

Team

LeanProcess Action

Team

Jan Martinson (IDS Lean) - ChairMike Herscher (BCA Lean)

Lean+ supporting the businessesLean+ supporting the businesses

28

• 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.

BOEING STANDARDS

29

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?

SENSING SESSION

30

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

SENSING SESSION cont’d

31

•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

SENSING SESSION DELIVERABLES

32

Non-Factory AIW Timeline

N o n - F a c t o r y A I W

N o n - F a c t o r y A I W T i m e l i n e

0 5 1 0 1 5 2 0 2 5 3 0 … . 7 0 7 5 8 0 9 0 … … 1 1 5

D a y s

Pre

lim

. L

ea

de

rsh

ip T

ea

m M

tg.

Se

ns

ing

Se

ss

ion

s

Le

ad

ers

hip

Me

eti

ng

Re

po

rt O

ut

90

Da

y R

ep

ort

45

Da

y R

ep

ort

33

Resources

Lean Enterprise Office - http://leo.web.boeing.com/home.cfm

Lean Lingo - http://lean.ks.boeing.com/glossaryr2.htm

Lean Aerospace Initiative - http://lean.mit.edu/