Lean Aerospace Initiative Plenary Workshop presentatio

Murman, Earll M.

DSpace@MIT

Lean Aerospace InitiativePlenary WorkshopWelcome and Theme IntroductionOctober 14, 1998Presented By:Earll M. MurmanMITPM Murman 101498-2  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiativeLAI Vision Statement“To significantly reduce the costand cycle time for militaryaerospace products throughoutthe entire value chain whilecontinuing to improve productperformance.”PM Murman 101498-3  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Today’s Introductionl Workshop formatl Today’s themel Recent eventsl Progress towards Phase II goalsl Workshop notes(Team activity reports in binders)PM Murman 101498-4  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Plenary Workshop FormatDay One - Oct. 14A.M. - General SessionKeynote: Rebecca Henderson    Sloan SchoolThe Value StreamLean Production SystemsP.M.Breakout SessionsFour TracksBreakFour TracksReceptionDay Two - Oct. 15A.M. - General SessionKeynote: Ed Schein    Sloan SchoolIndustry PanelImplementation ActivitiesP.M.Focus Team MeetingsTraining Module DemoReceptionDinnerPM Murman 101498-5  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Value Stream Analysisl Well developed for production applications– e.g. “Lean Thinking” by Womack and Jonesl Not well developed for activities “above thefactory floor”l Candidate definition for value stream:The network of activities in which there is acontinuous addition of product attributesincluding quality, functionality and usefulness,which directly address customer needs.PM Murman 101498-6  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative LEM Principlesl Meta Principles– Waste Minimization– Responsiveness to Changel Enterprise Principles– Right Thing at Right Place, Right Time, and in the RightQuantity– Effective Relationships within the Value Stream– Continuous Improvement– Optimal First Delivered Unit Quality  OBJECTIVE IS TO ADD VALUEPM Murman 101498-7  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative This  Morning’s Plenary SessionObjective: learn more about value streamsl Introductions to value streams– Keynote talk– Introduction to Product Value Streaml Presentations of value stream work in progress– F-22 Enterprise– Identifying the Product Development Value Streaml Examples from production operations– Lean Production System Design– Implementing Lean Manufacturing at GE EngineAssemblyPM Murman 101498-8  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Recent Eventsl 5 May Executive Board meeting outcomes– Initiate planning for Phase III (Sep 99 - Aug 02)– Approved International Collaborations Policy andcollaborations with– UK Lean Aerospace Initiative– Swedish Lean Aircraft Research Program– Consider roadmap for LAI interaction/integration with theLean Sustainment Initiative– Approved policy recommendations on Cycle TimeReductionl New LAI Members– Rockwell Collins– Aerojet GencorpPM Murman 101498-9  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Recent Events (Con’t)l Labor Aerospace Research Agenda (LARA)project initiated– Research objectives– Quantifying the impacts of instabilities on the workforce– Changes in program funding– Changes in organization (merger, restructuring….)– Changes in technology– Identifying the diffusion of new work practices within andbetween organizations– Participants– MANTECH funded– UAW sponsored– IAM participation– MIT researchersPM Murman 101498-10  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiativePhase II: Goals & Recent Progressl Develop the LEM and populate it viabenchmarking, case studies and research– 21 new data sheets from LAI findings– 38 new data sheets from external sources– Transition-to-Lean module development startedl Integrative research thrusts on cross-cuttingtopics:Concentrated efforts underway for:– Value stream analysis– Lean production system design– Integrated supplier networks– Requirements definition– Space operations and testingPM Murman 101498-11  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Phase II Goals & Recent Progress(Continued)l Telling the LAI story– LAI Communications Toolkit debutl Facilitating and enabling enterprise wide systemicchange– Regional Supplier Workshops pilots– Policy recommendations on Cycle Time Reduction sent toOSD/A&T– Implementation workshop on “Flow OptimizationThroughout the Value Stream”l Extending and enhancing the collaborative nature ofthe project– Collaborative research projects initiated with UK & Sweden– Developing ties with Industrial College of the Armed Forces– Participation of ESC in Plenary Workshop & Executive BoardPM Murman 101498-12  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiativeWorkshop Notesl Presentations available in the take-home notebook;and on our web site on or about Oct. 23, 1998l A workshop evaluation included with materialsl On-site business services available  – see registrationarea for detailsl Team agendas for tomorrow can also be located inthe registration areal A list of scheduled meetings and room assignmentsis included in welcome packetl Two scheduled breaks - central refreshment areaoutside this ballrooml Reception with cash bar starting at 5:30l LEM IPT dinner meeting at 6:30l Finally, the bus back to the Cambridge Inn will departat 6:40p.m. this evening - gather in lobby.  It will leavefrom the Cambridge Inn tomorrow at  7:00a.mPM Murman 101498-13  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiativeTeam Activity ReportsPM Murman 101498-14  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Product  DevelopmentFocus TeamActivitiesEstablishing Software Requirements from System RequirementsUsing Modeling and Simulation in Requirements GenerationTechnology Insertion and the Product Development Process Strategic Technology Investment DecisionsJ- SR: Engineering Changes, Technology Supply, Info. InfrastructureProductsFinishing:  Complex System PD Risks, Best Practices in SystemsEngineering, Design Methods: Set-Based PracticesWorkshop + whitepaper: Product Development Value StreamPlansEffective Use of Process Capability Databases for DesignJ- SR: Implementing Technology Throughout a Supplier Network      MIT    Industry GovernmentEarll Murman Ray Summers    Bob DeemHugh McManusPM Murman 101498-15  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiativeFactory Operations Focus TeamActivities– June Focus team meeting on the Lean Production System Design– Development of a maturity matrix for lean production system design– Airframe sector wing assembly study– Schedule control policy experiment startedProducts– Lean production system design decomposition to focus team– Maturity matrix for lean production system design– Additional 10 LEM data sheetsPlans– Conclude airframe sector research– Expanded transition to production study– Continue schedule control policy experiment     MIT Industry GovernmentTim Gutowski Fred Stahl Bill HumphreyTom ShieldsPM Murman 101498-16  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiativeSupplier Relations Focus TeamActivities– Information systems for supplier integration (w/PD team & w/LARP)– Make-buy and strategic outsourcing (w/LARP)– Supplier coordination mechanisms– Implementing world-class technology throughout supplier network– Regional supplier workshops (w/USAF ManTech)Products– Innovation in product architecture through supplier integration– LEM data sheetsPlans– Comparative international benchmarking survey (w/UK LAI & LARP)– Best practices in flowing down lean concepts throughout supplier stream– Early supply chain design for robust transition to production       MIT Industry GovernmentKirk Bozdogan          George Reynolds    Hamid Akhbari  Charlie FinePM Murman 101498-17  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Policy and ExternalEnvironment Focus TeamActivities– Simulation model of cycle time cost and schedule control– Lean user (needs and requirements definition) research (joint w/PD)– Managing subsystem commonality research– Developing research ties to the Center for Innovation in ProductDevelopment (CIPD) at MIT and the Industrial College of the ArmedForces (ICAF)Products– Master’s thesis on economic incentives in procurement– Policy recommendations to DoD for cycle time reductionPlans– Continue research as indicated while exploring new opportunitieswith affiliated groups      MIT  Industry  Government  Wes Harris  Brad GaleEric RebentischPM Murman 101498-18  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Test & Space OperationsFocus TeamActivitiesIdentifying and evaluating satellite integrated system test anomalydataApplying lean principles and value stream to spacecraft testCollection of launch failure data and looking at the implications ofverification and validation approachesResearch productsEvaluation of effectiveness of satellite integration system integrationtesting.LEM data sheetsResearch plansEffectiveness of satellite  system testingLaunch operations evaluationCommand and control approaches      MIT    Industry GovernmentJoyce Warmkessel Frank Goodell    Art TemmesfeldEd GreitzerPM Murman 101498-19  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Lean Enterprise Model IPTl Research Activities– Additional data sheets added to Web LEM 2.0– 21 LAI Research, 38 External– Transition-to-Lean (TTL) Module development underway– Pilot inclusion of external benchmarking and bestpractice datal Research plans– TTL precedence diagrams, descriptions and linkage toLEM for enterprise and factory operations– Enhancement of LEM architecture– Updates to LEM from LAI research & external sources         MIT   Industry  GovernmentDebbie Nightingale Ed Harmon   John CantrellPM Murman 101498-20  ©1998 Massachusetts Institute of TechnologyLean AerospaceInitiative Communications IPTActivities– May 98 Meeting and Site Visit w/ Aviation Week present– LMTAS, Ft. Worth, Raytheon Systems Co. Lewisville– August 98 Meeting and Site Visit w/ Aviation Week Interviews– Raytheon Aircraft Co., Wichita KSProducts– LAI Toolkit debut– Constructed Exhibit Booth (as seen outside)– Local communication products developed by team membersPlans– Trade Shows and Expos - DMC Dec. 1998– Second wave of products for Toolkit - success vignettes– Team growth - space sector interests     MIT   Industry  GovernmentDeneen Silviano             Don Cook             Bob Reifenberg  Bob Such

Welcome and Theme Introduction

Lean Aerospace InitiativePlenary WorkshopWelcome and Theme IntroductionMarch 23, 1999Presented By:Earll M. MurmanMITPM Murman 032399-2  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Presentation Outlinel Introduction to LAIl Impact of lean and the benefits of LAIl A framework for the futurel Workshop overviewl SummaryPM Murman 032399-3  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative LAI Sponsors and ParticipantsAirframeThe Boeing Company (St. Louis, Seattle)Lockheed Martin Aeronautical SystemsNorthrop Grumman Corp.Raytheon Aircraft Co.PropulsionRolls Royce AllisonGeneral Electric Aircraft EnginesPratt & Whitney Gov’t EnginesSundstrand Corp.Avionics/MissilesApplied Materials Inc.Hewlett PackardRaytheon Systems Co. (Dallas and El Segundo)Lockheed Martin Electronics & MissilesTextron Systems DivisionRockwell Collins, Inc.TRW Inc.Other GovernmentDARPADLA NASANAVAIRAMCOMOUSD(A&T)NROUS Air ForceAeronautical Systems CenterAir Force Research Laboratory(Materials and Manufacturing Directorate)Space and Missile CenterSPOS: JSF, F-22, C-17, Training (JPATS)Other Participants UAWAIADSMC IDAWharton (Univ of Penn)Univ of ChicagoInternational Collaborations:Univ of LinköpingUK LAISpaceLockheed Martin Space & Strategic MissilesBoeing Space TransportationPratt & Whitney Space PropulsionHughes Space & CommunicationsGenCorp AerojetTRW Inc.MIT• Lead ResearchersFaculty, staffStudents• Neutral Catalyst50/50 Cost Share between Government & Industry: Total $3.2M/yr.50/50 Cost Share between Government & Industry: Total $3.2M/yr.PM Murman 032399-4  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Lean Aerospace Initiative History1993 - 1996Consortium formed with industry/government/labor/MITFocus on defense aircraftResearch on benchmarking best practicesLean Enterprise Model (LEM) conceptualizedIndustrial base pilot projects started to accelerate improvement1996 - 1999Government membership expanded and Space Sector addedResearch on improving practicesCollaboration with international programs initiatedFocus on products; e.g. LEM, policy recommendationsImpact of lean and LAI on industry/government assessed1999 - 2002   Planning for LAI Phase III in progressFocus on “Best Life Cycle Value” and five key themesAddress barriers to implementation and transition to leanEnhance effectiveness of the national workforceEmphasize knowledge deploymentPM Murman 032399-5  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative[LAI’s Process FlowMITIndustry,LaborGovernmentLAI’s laboratory is the real world!Research PrioritiesImperativeProductsImplementationExperienceResearchDataDrivers:Economic RealitiesLeadershipAwarenessPM Murman 032399-6  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiativeIntegrated TopicsCurrent LAI Research and Products(Detailed write ups for each research project in tab 15 of binders)Test and Space Ops• Lean S/C testing• Lean launch ops• Lean on-orbit opsSupplier Relations• Info infrastructure• Strategic outsourcing• Supplier integration• BenchmarkingProduct Development• Req’ts gen/System eng• Risk and variability• Technology insertion• PD value streamLAI ProductsWorkshopsImplementation AidsLean Enterprise ModelPolicy RecommendationsReports/briefings/articlesFactory Ops• Lean productionsystem design• Benchmarkingassembly systems• Transition toproductionPolicy & ExternalEnvironment• Incentives for lean• Lean user req’ts• Subsystemcommonality• Lean overheadPM Murman 032399-7  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Key LAI EventsSince Last Plenaryl 13 Nov LAI Executive Board– Approved Prof. Widnall as Co-Chair representing MIT– Approved adding a MIT LAI stakeholder Co-Director– Cliff Harris was selected and joined LAI in Jan 1999– Approved making LEM architecture (practices, metrics,definitions, but not data sheets) publicly available 1Q 99– Approved preliminary plans for Phase IIIl 19-20 Jan Product Development Workshop– Product Development Value Streaml 3-4 Feb Implementation Workshop– System Barriers to Implementationl 18 Feb Supplier Relations Symposium– Electronic Integration of the Lean Enterprise SupplierValue StreamPM Murman 032399-8  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative External EventsSince Last Plenaryl 8 Nov article in Dallas Morning Newsl 10 Nov Presentation to SecAF Space Conferencel 1-4 Dec Defense Manufacturing Conferencel 15 Jan meeting with IAM representativesl Feb Regional supplier workshop at the CaliforniaManufacturing Technology Center, Los Angelesl 3 Mar Co-Chair briefing to Gen. Babbitt, AFMC/CC5 Mar Co-Chair briefing to Dr. Gansler, OUSD (A&T)– Briefed “Impact of lean and benefits of LAI”l 9 Mar article in NY Times business sectionl 11 Mar briefing to Business Executives for NationalDefensePM Murman 032399-9  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiativel 28 Letters received from LAI Executive Board members(16 industry, 11 government, MIT)l White paper on web page and in back pocket of bindersl Briefed to Gen. Babbitt and Dr. GanslerImpact of Lean and Benefits of LAI“What are the benefits which have been realizedfrom implementation of lean practices in yourorganization, with an emphasis on specific andquantitative results”“What are the contributions of the LAI toachieving these benefits”“ hat are the benefits hich have been realizedfro  i ple entation of lean practices in yourorganization, ith an e phasis on specific andquantitative results”“ hat are the contributions of the L I toachieving these benefits”PM Murman 032399-10  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Impact of Lean on StakeholdersLAI16 endorsementletters from industryLAI16 endorsementletters from industryLAI11 endorsementletters fromGovernment agenciesLAI11 endorsementletters fromGovernment agenciesSubstantialimprovements inmanufacturingefficiencyBeginning to impactlower tier supply baseand SPO organizations Opportunity to  increase impact in -• Product development• Business processes• AcquisitionSource:  “Benefits of Implementing Lean Practices and  the Impact of the Lean Aerospace Initiative in the Defense Aerospace Industry andGovernment Agencies”,  LAI White Paper, January 31, 1999PM Murman 032399-11  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative  Selected Examples of Impact ofLean in the Product Value Stream30% Reductions in ProductDevelopment costsdemonstrated in pilot projectsProduct DevelopmentSupplier Integration40% Supplier Lead-timeReduction35% Overall ProductionOperations ProductivityImprovementsUp to 60% Reduction in FloorSpace with Same Capacity> 60% Manufacturing   Productivity ImprovementsManufacturingAcquisition System& PolicyOpportunitySource:  “Benefits of Implementing Lean Practices and  the Impact of the Lean Aerospace Initiative in the Defense Aerospace Industry andGovernment Agencies”,  LAI White Paper, January 31, 1999PM Murman 032399-12  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Lean Implementation andOpportunities in Product Value StreamLean “converts”are just beginning to realize thebenefitsLean “converts”are just beginning to realize thebenefitsAcquisition Interface Business ProcessesManufacturingProduct Development15-20%Supplier Integration20-30%25-40%2-10%<10%Lean Leaders -% Implementation**LAI Integration Team AssessmentPM Murman 032399-13  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiativeCustomer Practices & PoliciesIncentives for Lean Behavior on C-170NonconformanceHoursProduction EfficiencyACTUAL HEADCOUNTP-33P-24P-41ASSEMBLY PERFORMANCE(% efficiency)HeadcountResultsDeliveries ahead of scheduleProduction efficiency up 50%Nonconformance hours down 70%Lean Business Practices• Strong Integrated Product Teamsproponent• Shared metrics and data• Creative Incentives– Separate contracts to provideinsight (delivery, affordability,support)– Award fee for each contract tied tocomplementary goals andmeasures– Unique incentives in multi-yearcontract (e.g. sell place in line ifFMS opportunities arise)Source: C-17 SPOPM Murman 032399-14  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Pilot & Demonstration ProjectsMODULAR FACTORY FORELECTRONIC WARFARECOMPONENT MFG(CEC Program, ALQ-135)50% reduction in microwavepower module (MPM) costsADVANCED MODULARMISSILE FACTORY40% reduction in AMRAAM cycletime, 25% plant-wide inventoryreduction ObjectivesAlready Met!C-17 LEAN FACTORY$18M Price Reduction on MainLanding Gear Pod and CargoDoorTo Date:•16 Lean Forumprojects initiated•Linked to LAIresearch findings•$96M invested,ManTech & SPO•2:1 returndocumented•All projects tied toa weapon systemsponsor (JSF, F-22, C-17, AIM-120)to insureimplementationExamplesSource: ManTechPM Murman 032399-15  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Major Reported LAI Benefitsl Consortium-guided, university led research program evolving aknowledge base to support transitioning to leanl Research products, e.g. the Lean Enterprise Model (LEM), providereference tools for common awareness, language andunderstanding of lean principlesl Focus and framework for implementationl Neutral forum for exchange of information, ideas, andunderstanding“Everyone in the defense establishment shares the benefits of LAI.Through mutual commitment to improvement, shared knowledge,and leveraged implementation, we have raised the level ofcompetency in the US defense industry and fueled the acquisitionreform process.” - Industry letter“Everyone in the defense establishment shares the benefits of LAI.Through mutual commitment to improvement, shared knowledge,and leveraged implementation, we have raised the level ofcompetency in the US defense industry and fueled the acquisitionreform process.” - Industry letterSource:  “Benefits of Implementing Lean Practices and  the Impact of the Lean Aerospace Initiative in the Defense Aerospace Industry andGovernment Agencies”,  LAI White Paper, January 31, 1999PM Murman 032399-16  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiativel Faculty & graduate students in LAIengaged in real world problemsaddressing a national needl Graduating students placed in U.S.aerospace organizationsl Collaboration between Engineering &Management Schools and facultyl Impact on degree programs andcurriculuml A new academic model forcollaboration with industry andgovernmentLAI Impact on EducationScholarship and EnhancedEducational Programs:“LAI aligns MIT closerto industry andgovernmentconcerns.”Source:  “Benefits of Implementing Lean Practices and  the Impact of the Lean Aerospace Initiative in the Defense Aerospace Industry andGovernment Agencies”,  LAI White Paper, January 31, 1999PM Murman 032399-17  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative A Framework For The FutureBest Life Cycle ValueA system offering best life-cycle value isdefined as a system introduced at the right timeand right price which delivers best value inmission effectiveness, performance,affordability and sustainability and retains theseadvantages throughout its lifet if  l  l syste  offering best life-cycle value isdefined as a syste  introduced at the right ti eand right price hich delivers best value inission effectiveness, perfor ance,affordability and sustainability and retains theseadvantages throughout its lifePM Murman 032399-18  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Five Enterprise Themes For“Best Life Cycle Value”l Time as measured by cycle time and clock speeds– Shift to “economies of time” from “economies of scale”è Organization and people as essential to success– Related to largest number of LEM Overarching Practicesè Knowledge & information infrastructures as enablers– Linkages for the lean enterprise value streamsl Government as a lean customer and operator– Central driver in the pace of change to leanl Measuring the added value to the enterprise– Workforce, customers, shareholders, the publicè Themes for this morning’s plenary speakersPM Murman 032399-19  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Plenary Workshop FormatDay One - Mar. 23A.M. - General SessionLAI Perspective: Tom FergusonKeynote: Doug EngelbartSpeaker: Tom  KochanPanel DiscussionDay Two - Mar. 24A.M. - General SessionImplementation ActivitiesLean DebateCoordination Strategies withSpeakers: Marc Knez, JanSummers, Sandy JapP.M.Focus Team MeetingsReceptionP.M.Breakout Sessions7 different topical areasReceptionDinnerPM Murman 032399-20  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Workshop Notesl Presentations are in your binders; also onour web site on or about April 4, 1999l A Workshop Evaluation is also includedl On-site business services 4th floor orlimited assistance at LAI registration deskl Two scheduled breaks - please keepprogram running smoothly by adhering totimesl Refer to Tab 1 for complete list ofscheduled meetings and roomassignmentsl Videotaping in progress to help extendlearning and outreachl Reception with cash bar starting at 5:30SCHEDULEPM Murman 032399-21  ©1999 Massachusetts Institute of TechnologyLean AerospaceInitiative Summaryl LAI has evolved since 1993 to provide theknowledge base and implementation focus fortransitioning the national defense aerospaceenterprise to leanl Lean has demonstrated reduced cycle times andcosts for military aerospace products, withimproved performancel A focus for the future is “Best Life Cycle Value”with accompanying key enterprise themesl Welcome to the Spring 99 LAI Plenary Workshop

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