Managing Change in a Change
Averse Environment
Mike HerzogV.P. Quality and Mission Assurance
Pacific Scientific Energetic Materials Co.
Technologies
Safe and Arm devices Separation Devices Cartridge Activated Devices Propellant Activated Devices Vehicle Arresting Green Energetics Oil/Natural Gas Exploration
Facilities & Core CompetenciesFacilities & Core Competencies
AZ Operations Chandler - 57 Acre Site
~250 Non-Union Associates 100,000+ Square Feet Under Roof Core Competencies: Cartridge/Propellant
Actuated Devices (CAD/PAD), Specialty Devices (ISD, S&A) Initiators & Propellant Manufacturing
CA Operations Valencia Business Park Site
Advance Technology Site ~30 Non-Union Associates 37,000 Square Feet Under Roof Core Competencies: Smart Energetics
Architecture (SEATM), Smart Controllers, Detonators & Initiators
Hollister - 270 Acre Site ~360 Non Union Associates 200,000+ Square Feet Under Roof Core Competencies: CAD/PAD, Linear, Ordnance,
Electronic & Laser Systems, Vehicle Sub-Systems, High Volume & Propellant Manufacturing, Specialty Chemical Synthesis
Chandler, AZ Chandler, AZ
Valencia, CAValencia, CA
Hollister, CAHollister, CA
Space/Launch Vehicles Flight Termination Payload Deployment/Recovery Stage Separation/Termination
Missiles & Munitions Control/Initiation/Termination Munitions Deployment
Aircraft & Life Support Countermeasures/Stores Release Emergency Egress Fire Suppression
Ground Vehicles Active Protective Systems Fire Suppression
UAV Flight Termination & Recovery Engine Start / Vehicle Launch
Commercial Aircraft & Petroleum
Specialty Chemicals Borohydride Chemistry Energetic Materials
Total Annual Sales: Total Annual Sales: $150M$150M
MarketsMarkets
Change Management DilemmaChange Management DilemmaChange Management DilemmaChange Management Dilemma
For suppliers deep in the supply chain, process change approval is painful
Multiple layers of customers must approve the requested change
Contractual requirements typically dictate process, but not really
Suppliers want to avoid the ‘seek approval or beg forgiveness’ scenarioApproval process can easily stifle
continual improvement
Typical Shared Process Typical Shared Process Change ApprovalChange Approval
Typical Shared Process Typical Shared Process Change ApprovalChange Approval
PSEMCCommunication
Direct Customer
Customer Customer
Prime
Program Program
End CustomerEnd Customer
Typical layers ofTypical layers ofapprovals requiredapprovals requiredfor proposed PSEMCfor proposed PSEMCprocess changesprocess changes
Proactive Changes (Optional)Proactive Changes (Optional)
Continual improvement initiatives Design improvements Equipment and tooling improvements Lean and productivity improvements Poke-Yoke implementation PFMEA recommended actions Cost competitiveness (Ashton Carter
memorandum). Really optional?
Reactive Changes (Must)Reactive Changes (Must)
Changes as a result of FRB activities Changes as a result of a Corrective
Action Request Product or Process audit results Lot rejection Deviations and Waivers Obsolescence
Reactive change requests move through approval process relatively quickly
Industry ExpectationsIndustry Expectations
The Space and Defense Industry Quality Management System requirements include implementation of a robust change management system
Risk versus benefit of each change must be considered
An uncontrolled change is the biggest risk
Perceived small, insignificant changes do not always equal low risk
James Chiles’ James Chiles’ Inviting DisasterInviting Disaster contains several contains severalexamples of un-communicated, uncontrolled,examples of un-communicated, uncontrolled,perceived insignificant changes that resultedperceived insignificant changes that resultedin disastersin disasters
Planning for ChangePlanning for Change
Develop and implement a robust change management process to include documentation and records
Communicate to the organization that what they don’t think is a change is a change
Establish a standard forum where proposed changes can be discussed, documented and planned
Provide communication to customer(s) early on in the process
Purpose Of Change Management (PSEMC
Stance)
Purpose Of Change Management (PSEMC
Stance) To ensure that any proposed
changes are planned and implemented in a manner that ensures comprehensive validation activities are planned, scheduled, conducted and documented, PRIOR TO IMPLEMENTATION, in a way that ensures quality and reliability are not compromised.
Regardless of what customer requirements are, this process is designed to ensure PSEMC
is doing the right thing
Powder Weigh Station Case Study
Powder Weigh Station Case Study
Consolidate powder weighing, loading and pressing operations into 1 station
Weigh powder into actual parts versus vials
Eliminates batching and promotes 1 pc. Flow
Incorporate mistake proofing feature electronically connecting scale and press. Press will not operate if scale does not record acceptable value.
Utilize existing approved equipment Current process clearly defined in
manufacturing instructions
Before Process ChangeBefore Process Change
Bulk Powder
Weighing Vessel
Finished Vials
Vial poured into tooling within Press Station
Single Weigh Station Single Press Station
After Process ChangeAfter Process Change
Weigh ScaleConsolidation Press
Load Tooling
Consolidated Weigh and Press Station
Process Change Request Status
Process Change Request Status
Original communication requesting approval for change sent September 2010
Communication sent to 30 direct customers
A white paper explaining the change attached to communication
To date, 5 direct customers have approved the change
Lessons LearnedLessons Learned
No matter how simple you believe the proposed change is, the customer will think it is significant
Prepare and present a comprehensive validation plan with communication
Include ‘what’s in it for them’ in the communication
Anticipate customer questions and address them in the communication
Be prepared to field many questions and concerns
Be prepared to wait
PSEMC Change Management Process Improvements
PSEMC Change Management Process Improvements
Formal Change Management process documented
Process flow charted Proposed change form designed and
implemented Training conducted and documented Proposed changes presented by
originator at bi-weekly CCB
Change Management FormChange Management Form
ENERGETIC MATERIALS CO.
Change Management RAIL Number: _________
Describe the proposed change: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Why is this needed? (Justification/Urgency): _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Area: ____________ Date: _________ Desired Imp. Date:___________ Submitted by:___________ Cognizant Engineer:________________________ Area Manager/FFM:_____________________
CHECK ALL THAT WILL BE ADDRESSED AS A RESULT OF THIS CHANGE (MOC) Management of Change Documented Training Record (BOM) Bill of Materials Process Hazard Analysis Validation Test Plan recorded in AGILE (PFMEA) Process Failure Modes Effects Analysis Validation Report recorded in AGILE (FAI) First Article Inspection RIOS Preventative Maintenance Customer Notification/Approval (ATP) Acceptance Test Procedure Drawings Calibration Engineering Report Regulatory Approval (DCMA, BATFE, EPA) Engineering Work Order Tooling Facility layout Other (List below) Flowchart Forms Update (MP) Manufacturing Planning Internal Qualification and Report Other PSEMC Facility Notification
Recommendation(s) or Directives: Champion: ___________________________ Team Leader: __________________________________
Team Members: ______________________________________________________________________________ Signatures as required: Quality: ________________________________________________ Date: ________
Design Engineering: ______________________________________ Date: ________
EH&S: _____________________________________ Date: ________
Operations: ______________________________________________Date: ________
Manufacturing Engineering _________________________________ Date: ________
Program Management: _____________________________________Date: ________ NOTE: The signatures above only approve the proposal, the signatures do not give authority to make the change
until all relevant documentation has been reviewed, changed and/or approved and released in AGILE.
Obstacles to ChangeObstacles to Change
Legacy products and designs Cost implications Industry generally change and
risk averse No perceived benefit to
customer(s) Time to approve requested
changes Multiple tiers need to approve
requested change View may not be worth the climb
for suppliers
Overcoming ObstaclesOvercoming Obstacles
Ensure strict compliance to change management process
Ensure risks and benefits are identified Be confident in mitigating risks Ensure that appropriate actions are
planned to validate effectiveness of the change
Provide sufficient information to customers regarding proposed change so as to anticipate questions/concerns
Commit to the change…. no matter how long it may take to get approved.