Lean Aircraft Initiative Plenary Workshop presentatio

Bozdogan, Kirk

Deyst, John

Hoult, Dave

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October 16, 1996Presented by:Kirk BozdoganJohn DeystDave HoultMITLean Aircraft InitiativePlenary Workshop SUPPLIER INTEGRATION INTO DESIGN AND DEVELOPMENTSR101696-2  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Outlinew Focus on integrative research:  Supplier Integration into Design and Development– Joint with Product Development and Supplier Relations Focus Teams– Part of longer-term research on technology supply chain managementw Report on interim findings– Research overview: Kirk Bozdogan– JDAM Case Study:  John Deyst– F119 Engine Nozzle Case Study:  Dave Hoult– Summary and next steps:  Kirk BozdoganSR101696-3  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Lessons from Auto IndustryEarly supplier integration key to efficient product development (shorter cycle time, lower cost, higher quality, enhanced competitive advantage)w Reduction in design change trafficw More efficient coordination; fosters innovationw Up-front design/process integration; improved producibilityw Reduction in rework cyclew Early supplier involvement in designw Supplier participation IPPTsw High design content by suppliers w Joint engineering problem-solvingw Pre-sourcing; long-term commitmentsw Target costingw Supplier-capability-enhancing investmentsw Strong communications linksKey EnablersSR101696-4  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEDefense Aircraft Industry Moving in Same DirectionEarly Supplier Involvement in Military Product Development Programs and in Integrated Product & Process Development Teams (IPPTs)75.941.420.767.921.410.70102030405060708090100Major components Subassemblies PartsPercent of responding business unitsPrograms (22,12,6)IPPTs (19,6,3)(By responding business units, before Milestone 1*, by type of component)* During requirements definition and concept exploration & definition; before demonstration & validation(N1,N2 = 29,28: Total number of business units responding to questions on programs & IPPTs, respectively)Suppliers involved in:Source: MIT Product Development Survey (1993-94)SR101696-5  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEEarly Supplier Involvement in IPPTs Impacts Producibility and CostEarly Supplier Involvement in IPPTs in Military Product Development Programs vs. Cost-Related Requirements Changes Primarily Driven by Producibility Problems during Dem/Val and EMD Phase22.277.80102030405060708090100Group A(With)Group B(Without)Percent of responding business units in each group% of Respondents in Group A (4/18)% of Respondents in Group B (7/9)Group A: With early supplier involvement in IPPTs (N=18)Group B: Without early supplier involvement in IPPTs (N=9)Note: Early supplier involvement before Miliestone 1: during requirements definition and concept exploration & definition; before demonstration & validationSource: MIT Product Development Survey (1993-94)SR101696-6  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Major Hypothesisw Early supplier integration into IPPTs is a critical enabler of “architectural innovation” in product developmentw “Architectural innovation”*:  Major modification of how components in a system are linked together, resulting in significant new benefits for entire value stream including changes in:– Physical system form and structure– Functional interfaces – System configuration; relationships among components– Materials– Manufacturing processes– Tooling– Assembly methods* Concept draws on  Henderson and Clark (1990)SR101696-7  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Innovation Framework*Impact of Innovation on:*Framework draws on Henderson and Clark (1990)Existing Technology      Incremental      Modular(e.g., 286,386,486 processors) (e.g.,analog to digital telephone, electronic  engine controls in diesel engines)     Architectural      Radical(e.g., Front wheel drive cars; small copiers)         (e.g., jet engine,microprocessor, radar)Further Exploited                  ReplacedUnchangedChangedLinkages Among ComponentsSR101696-8  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEArchitectural Innovation Concept Extendedw Concept originally developed in context of single product development organizationw Emphasis on impact of architectural innovation upon firm’s technological capabilityw Narrow focus on new system configuration (how components are linked together)w First-time application of concept here in inter-organizational context (over supplier web)w Emphasis on value chain (prime-key suppliers-subtiers)w Broader focus on enablers & incentive systems for integration of specialized knowledge bases over supplier webIntra-Organizational Perspective Inter-Organizational PerspectiveSR101696-9  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEEvolution of Supplier Rolein Product Development*Increasing BenefitsSupplier HighwayIncreasing Supplier RoleBuild-to- Print            Black Box             Integration into IPPTsSupplier proprietaryparts           Supply simpleor standard parts(parts)Arm’s Length             Cooperative Relationships     Long-term Strategic PartnershipsIncreasing Supplier IntegrationManufacturing Consultation(Components)Design(Major Sub-Assemblies)KnowledgeIntegrationArchitectural Control(Systems Integration)*Extends general idea expressed in Virag and Stoller (SAE,1996)SR101696-10  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Focus on Two Case Studiesw JDAM case study -- John Deystw F119 Engine Nozzle Case Study - Dave HoultSR101696-11  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE JDAM Tail KitSR101696-12  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEJDAM(Smart Munition)w Guidance kit that attaches to 1,000 or 2,000 lb. bombs– Tail fairing/structure– Actuator subsystem and fins– IMU/GPS guidance control unit– Battery– Wire harness assembly– Strakes– ContainerSR101696-13  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVESix “Live or Die” Requirements1. Low unit cost (target of $40K)2. Adverse weather capability3. Multiple aircraft compatibility4. Aircraft carrier suitability5. In-flight re-targeting6. Warhead compatibilitySR101696-14  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Program Factorsw Long term programw Strong price competitionw Contractor configuration controlw Long term warrantyw Joint government/prime-contractor/supplier teamsSR101696-15  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Team Formation Factorsw Protection of trade secretsw Allowance for commercial pricing strategyw Preferred supplier programw Supplier trainingw Open communications with many informal linksw Shared win strategySR101696-16  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEArchitectural Innovation Through Supplier Involvementw Program created strong incentives for cost reductionw Architectural innovation was key to cost reductionsw Supplier knowledge base necessary for– Architectural innovation– Design for manufacturing and assemblyw Shared goals allowed give and take on workshareSR101696-17  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEArchitectural Innovation in the GCUw Single battery design to supply both 28v and 100vw Change from SEM-E module configuration to a highly integrated mission computer design resulted in:– Elimination of a circuit module– Reduced heat management requirements– Inherent EMI shielding– Reductions in wire harness assemblies and connectors– Better DFM/DFA– More economical/efficient workshare structure– Greater vibration tolerance– Reduced parts count/increased reliabilitySR101696-18  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEArchitectural Innovation in the GCU (cont.)w Front end receiver functions moved to antenna module– Reduced cost for antenna/receiver combinationw Overall cost reduction of 40%-60% in GCUw Cost reduction impact on other areas (e.g. heat, power, volume, etc.)SR101696-19  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Mission Computer Architecture InnovationOriginal Mission Computer Design ConceptMission Computer Design for the Low Cost GCUSR101696-20  '1996 Massachusetts Institute of Technology-   '  tt  I tit t  f lLEAN AIRCRAFTINITIATIVE BenefitsBenefits To BenefitsGovernment •  AUPP reduction ($68K Õ  $15K)•  Development time reduction (46 mo. Õ  30 mo.)•  Procurement cycle length reduction (15 yrs Õ 10 yrs)•  Warranty length increase (5 yrs Õ  20 yrs)•  Program office staff decrease (70 people Õ 40 people)•  No degradation on accuracyPrimeContractor•  Increased design flexibility and configuration control•  Reduced MIL-SPECS (87 Õ  0)•  Reduced SOW (137 pgs Õ  2 pgs)•  Reduced proposal length (1000+ pgs Õ 15 pgs)•  Reduced government-mandated contract terms (243 reports Õ  15)•  Long term stable programSuppliers •  Protection of trade secrets•  Relaxed requirements for pricing data•  Elimination of MIL-SPECS•  Training program•  Long term business relationship (Preferred Suppliers Program)Key SR101696-21  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEF119 Engine Nozzle: IntroductionSR101696-22  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile:  Key Issue w The key issue of the F119 Nozzle– High exhaust temperature (4300oF)– Thermal cycling of nozzle (Fatigue)– High tolerance requirements (to prevent leaks)w Very tight coupling between:– (A) Design– (B) Manufacturing process– (C) Materialsw Each of the ABCs impact the others stronglySR101696-23  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile: 1980sw Prime responsible for all design and engineeringw Role of suppliers:  build-to-printw Went through four generations of design; each one a separate invention (different materials, design, technology, processes) w Traditional design/development process did not deliver optimal productSR101696-24  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile:  1990s w New material technology driving design and manufacturing/assembly processw Co-located design teams (prime,key potential suppliers); supplier downselectw Prime adopted new design approach based on make/buyw Joint design/development with selected suppliers; design control by primew IPT approach; concurrent engineeringw Electronic integration with suppliersw Not-to-compete agreement with suppliers (until Lot X)SR101696-25  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile: OrganizationF119 Nozzle TeamPratt + Whitney - West Palm Beach (Prime for F119 Engine)Key SupplierConvergentSector(now P+W)Divergent Flap DuctsSide WallsTool SupplierStamping ToolsPrime:Tier 1:Tier 2:SR101696-26  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile:  The Playersw Pratt + Whitney, West Palm Beach - Prime for F119 Enginew Key supplier of convergent-divergent component of nozzlew Tool supplier next door to key supplier, makes stamping toolingSR101696-27  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile: Information Flows &Knowledge Integration P+W (West Palm Beach)MaterialsDesign, TestingWelding FabricationKey SupplierFabrication(Welding, Machining)Tool SupplierStamping toolDesignSheet metal fabricationNEWP+WTool SupplierKey SupplierOLDInformation flows:•contractual requirements•blueprintsKnowledge integration (pooling of specializedcore competencies)SR101696-28  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVECase Study Profile:  The Story w Pratt & Whitney make-buy decision– not to invest in new capital equipmentw Selection of Key Supplier because of its welding capability for convergent nozzle componentw Pratt & Whitney agrees not to compete with Key Supplier (until Lot X)w Virtually no investment risk by suppliersSR101696-29  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Architectural Innovationw The IPT jointly agrees to rivet rather than weld the nozzle assembly, based on– Tool supplier’s stamping experience– Key supplier’s riveting experience– Prior sharing of this information with P&Ww Result:  New way of linking components together; new manufacturing and assembly process; much improved productRiveting idea originated from key supplier and its tool supplierSR101696-30  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVEArchitectural Innovation: Impact StreamNew joining method for all componentsChanges in how componentsassemble (interfaces, alignment)Redesign at detail levelUnique riveting sequenceHeat treatment sequenceNearly toolless assemblyImproved performance,cost and qualityRivetingDenotes iterative processSR101696-31  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE BenefitsProgramPrimeKey SupplierTool Supplierw Substantial risk reductionw Major cost reduction (more than 5-fold reduction in unit cost)w Significant improvement in cost performancew Significant savings of capital investmentw Control of new process by prime through proprietary technologyw Repeat business in future; incentivized by not-to-compete agreement--nozzle is a wear partw Enhanced capability for similar future programsw Develops new technical capability w Transfers technology to automotive practice, gaining new business (from .020” tolerance to .002” tolerance)Benefits To: Key BenefitsSR101696-32  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Link to LEMw Implement integrated product and process development w Develop relationships based on mutual trust and commitmentw Assure seamless information floww Identify and optimize enterprise floww Optimize capability and utilization of peoplew Make decisions at lowest possible levelw Nurture a learning environmentEarly supplier integration into design and development key enabler of major enterprise-wide overarching practicesSR101696-33  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Key Lessonsw Follow proactive “make-buy” strategy based on understanding of core competency over entire value chain w Integrate specialized knowledge bases over supplier web (key suppliers, subtiers)w Facilitate early integration of key suppliers in design and developmentw Retain flexibility in defining system architecturew Develop incentive mechanisms for mutual gain, both internally and externallySR101696-34  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Summaryw Early supplier integration into design and development can yield potentially significant benefitsw Major source of benefits: Enabling “architectural innovation” in product developmentw Requires proactive integration of core competency of suppliers into design processw Innovative government acquisition and oversight practices essentialw Current and future research aimed at helping industry in this journey (e.g., define best practices,metrics, enablers, benefits, formal analytical methods)SR101696-35  ©1996 Massachusetts Institute of Technology-    tt  I tit t  f lLEAN AIRCRAFTINITIATIVE Next Steps (Joint PD and SR)w Identify strategies and systematic methods for cycle time reduction and risk management– Key characteristics– Design structure matrix– Software factories (continuing)– Dynamic modeling of design process– Reducing DOD product development timew Technology supply chain design and management– Strategic make-buy decisions– Concurrent design of product development, technology supply chains and production supplier networks– Parts obsolescence and diminishing manufacturing resources w Information infrastructure requirements and approaches– Vertical design/process integration information requirements– Structured methods (function/design/process decomposition; data flow management)

Supplier Integration Into Design and Development

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Supplier Integration Into Design and Development

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