15th Industrial Engineering Research Conference presentatio

Nightingale, Deborah

Valerdi, Dr. Ricardo

DSpace@MIT

Coupling Lean Thinking and Systems Thinking at the Enterprise LevelProf. Deborah Nightingale Dr. Ricardo ValerdiLean Aerospace InitiativeMassachusetts Institute of TechnologyIERCOrlando, FLMay 22, 2006Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 2web.mit.edu/leanThe 21st Century Enterprise ChallengeAerospace has four core missions:• Enabling the global movement of people and goods• Enabling the global acquisition and dissemination of information and data• Advancing national security interests• Providing a source of inspiration by pushing the boundaries of exploration and innovationThese missions will never be routine and require the best technology and the best organizationsThese enterprise level capabilities are at the intersection of lean thinking and systems thinking. Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 3web.mit.edu/leanA national consortium for research, implementation and diffusion of lean practicesLean Aerospace Initiative Formed in 1993• Industry• Airframe, engine, avionics, missileand space companies• Government• Air Force agencies, system program offices, and headquarters• NASA, Army, Navy• Department of Defense• Academia• MIT - Schools of Engineering and Management• Educational Network (2003)Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 4web.mit.edu/lean1.How can I understand how my organization/enterprise currentlyoperates within its larger context?2.How can I define and evaluate the futurepossibilities for a more efficient and effective enterprise?3.What are the most effective strategies and tactics to achieve these future possibilities for my enterprise?Four Grand Questions Derived from the Transformation Imperative4.How can I best manage the enterprisechange process?Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 5web.mit.edu/leanSeven Research Clusters to Answer the Four Grand Questions1. How can I understand how my organization/enterprise currentlyoperates within its larger context?2.How can I define and evaluate the futurepossibilities for a more efficient and effective enterprise?3.What are the most effective strategies and tactics to achieve these future possibilities for my enterprise?4.How can I best manage the enterprisechange process?Strategies for High Performance EnterprisesEnterprise Modeling & DesignEnterpriseProductDevelopmentIT-EnabledEnterpriseIntegrationEnterprise &Cost MetricsValue-BasedArchitectingEnterpriseChange ProcessesNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 6web.mit.edu/leanLean Engineering: Doing the Right Thing Right• Creating the right products…• Creating product architectures, families, and designs that increase value for all enterprise stakeholders.• With effective lifecycle & enterprise integration…• Using lean engineering to create value throughout the product lifecycle and the enterprise.• Using efficient engineering processes.• Applying lean thinking to eliminate wastes and improve cycle time and quality in engineering.Source: McManus, H.L. “Product Development Value Stream Mapping Manual”, LAI Release Beta, April 2004Framework based upon a decade of Lean Aerospace Initiative research & industry/government implementationNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 7web.mit.edu/leanSource: Fabrycky & BlanchardConceptual/preliminaryDesignDetaildesign/developmentProductionand/orconstructionProduct use/support/phaseout/disposal100%80%66%Ease of ChangeLCC committedCost IncurredEarly decisions are critical - Disciplined lean systems engineering process is essential“Fuzzy Front End” ChallengesUnderstanding what the customer valuesDeciding which product to pursue from amongst many opportunitiesSelecting the right product conceptEngineering Drives CostNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 8web.mit.edu/leanSimplified Systems Engineering ProcessSource: Adapted f rom Jackson, S. Systems Engineering for Commercial AircraftSystems engineering process is applied at multiple levels: system, subsystem, component.Functional AnalysisStakeholder’sNeeds:•End user•Customer •Enterprise •RegulatoryRequirements VerificationSynthesis/ Architecture developmentValidationProduction,Delivery & OperationSource: “Lean Engineering”, LAI Lean Academy™, V3, 2005Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 9web.mit.edu/leanLean Engineering Reduces Manufacturing LaborProduction UnitsMfg.Labor(hrs)01 5 10 15 20 25 30 35-5Before Lean EngineeringAfter Lean Engineering-10Additional Reduction in T1 viaVirtual Mfg. of Approx. 9 Units76% Slope83% SlopeReduction inWork Content viaImproved Design48% SavingsSource: “Lean Engineering ”, John Coyle (Boeing),  LAI Executive Board Presentation, Jun 2000Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 10web.mit.edu/lean• Effort is wasted• 40% of PD effort “pure waste”, 29% “necessary waste” (workshop opinion survey)• 30% of PD charged time “setup and waiting” (aero and auto industry survey)• Time is wasted• 62% of tasks idle at any given time (detailed member company study)• 50-90% task idle time found in Kaizen-type eventspure wastevalue addednecessary wastetask activetask idleSource: McManus, H.L. “Product Development Value Stream Mapping Manual”, LAI Release Beta, April 2004Source: “Lean Engineering”, LAI Lean Academy™, V3, 2005Waste Exists in EngineeringNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 11web.mit.edu/leanApplying Lean Fundamentals to Engineering Lean Thinking Steps Manufacturing EngineeringValue Visible at each stepGoal is definedHarder to seeGoal is emergentValue Stream Parts and materialsflowsInformation andknowledge flowsFlow Iterations are waste Planned iterations OKMust be efficientPull Driven by takt time Driven by enterpriseneedsPerfection Process repeatablewithout errorsProcess enablesenterpriseimprovementSource: McManus, H.L. ŅProduct Development Value Stream Mapping ManualÓ, LAI Release Beta, April 2004Key step to application of lean thinking is the Product Development Value Stream Mapping- PDVSMNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 12web.mit.edu/leanResults of Applying Lean toEngineering Release Process Reduced Cycle time by 73% Reduced Rework of Released Engr. from 66% to <3%  Reduced Number of Signatures 63%Traditional LeanCycle TimeStd DevTime Value stream mapped and bottlenecks found Process rearranged for sequential flow Waiting and delays removedSource:  Lean Aerospace InitiativeNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 13web.mit.edu/leanLean Applies to Development of Many Types of Products Value-stream based rationalization of processes yields impressive results across a range of environments:• Aircraft structure drawing release: 75% cycle time, 90% cycle time variation,  and 95% rework rate reductions• Satellite environmental testing: 41% cycle time, 58% labor, 76% material, and 92% travel reductions• Printed circuits: 23% design cycle time reduction• Avionics: 74% change order cycle time reductionCombined with technological changes at bottleneck processes, results can be even more dramatic:• Electronic modules: increase yield from 10% to 90%• IC design: 70% cycle time, 80% cost reductions Sources:Lockheed Martin, Rockwell Collins, ITTNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 14web.mit.edu/leanSystems Engineering and Lean Thinking• Systems Engineering grew out of the space industry in response to the need to deliver technically complex systems that worked flawlessly upon first use• SE has emphasized technical performance and risk management of complex systems.• Lean Thinking grew out of the Japanese automobile industry in response to the need to deliver quality products with minimum use of resources.• Lean has emphasized waste minimization and flexibility in the production of high quality affordable products with short development and production lead times.Apparent differences overcome by common objectives, emerging vision of lean enterpriseNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 15web.mit.edu/leanLean and SE Commonalities• Lean and Systems Engineering: processes that evolved through experience and practice • Shaped by different contexts with different areas of emphasis• Bodies of Knowledge (BOKs) based upon observed best practices• Both emphasize process as a key enabler• Both have the objective of better delivering best lifecycle value to the customer (end user)• Lean: right product at the right time and cost• SE: right product that meets customer requirements on schedule and budgetCan the combination of Lean and SE BOKs lead to a more effective and efficient SE approach?Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 16web.mit.edu/leanIPPD EnvironmentSource: Al Haggerty, “The F/A-18E/F Super Hornet as a Case Study in Value Based Systems Engineering”, INCOSE Panel on Lean Systems Engineering, June 2004F/A-18E/F Systems Engineering• Rigorous Requirements Flowdown• Disciplined Technical Reviews• Configuration / Data Mgt.• Systems Cost-effectiveness/• LCC Trade studies• Producibility / DFMA• Risk Management / TPM• Program Independent Audits• Reliability/ Maintainability/Safety• Human factors engineering • Integrated LogisticsNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 17web.mit.edu/leanHAND PICKED LEADERSINTEGRATED PRODUCT DEFINITIONSYSTEMS ENGINEERINGCONFIGURATION CONTROLRISK MANAGEMENTINTEGRATED MANAGEMENT CONTROL SYSTEMWEIGHT MANAGEMENTCO-LOCATED TEAMSEARNED VALUE MGT.SUPPLIER INTEGRATIONLEADERSHIPPRINCIPLES•CUSTOMER SATISFACTION•OPEN, HONEST COMMUNICATION•SUPPLIERS AS PARTNERS•TEAMWORK•PERFORMANCE TO PLANThe ProcessSource: Al Haggerty, “The F/A-18E/F Super Hornet as a Case Study in Value Based Systems Engineering”, INCOSE Panel on Lean Systems Engineering, June 2004Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 18web.mit.edu/leanLean EnterprisePrinciples Applied to F-18E/F• Continuous Improvement• Optimal First -Unit Delivered Quality• Metrics Tracked Weekly Across the Extended Enterprise• Seamless Information Flow (USN, NGC, GE Engines, Suppliers)• Decisions Made at the Lowest Level of WBS Via “Delegated” RAA• Joint Configuration Change Board• Disciplined Weekly Earned Value Mgt. & ReportingPerformance To Plan!  Source: Al Haggerty, “The F/A-18E/F Super Hornet as a Case Study in Value Based Systems Engineering”, INCOSE Panel on Lean Systems Engineering, June 2004Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 19web.mit.edu/leanTHE PROCESS WORKS!• 42% Fewer Structural Parts• The Parts Fit the First Time• 1029 Lbs. Below Specification Weight• Reduced Engineering Change Activity• Development Completed On Budget- $4.9B• 1ST Flight Ahead of Schedule!Achievement Recognized:1999 Collier Trophy!Source: Al Haggerty, “The F/A-18E/F Super Hornet as a Case Study in Value Based Systems Engineering”, INCOSE Panel on Lean Systems Engineering, June 2004Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 20web.mit.edu/lean• SE processes recognized as sound, but not always applied effectively • “Lean” provides an approach to maximize value while minimizing wasted effort • Synergies of lean practices and SE practices are being explored• Working name is “Value Based SE”+ Systems Engineering LAI EdNet Lean SE Working GroupPossible WG outputs• Lean SE Learning community • Value based Systems Engineering Framework• Course materials • ResearchStanfordMITU MO-Rolla AFITLMUUSCGA TechUNOStevensNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 21web.mit.edu/leanValue Based Systems Engineering• Emphasize common objectives for Lean and SE: Value• Overarching objective of value based systems engineering is to deliver the expected value to the system stakeholders• Critical functions are those that create/deliver that value• Measures of success are based on value created/delivered to stakeholders• Value based SE is an enterprise level function• Value based SE must be scaleable, from systems of systems to major subsystems• Software Engineering community is already making progress• “Value-Based Software Engineering” by Biffl, S., Aurum, A., Boehm, B., Erdogmus, H., Grunbacher, P., (Eds.), Springer, 2005.Nightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 22web.mit.edu/leanEnabling  and Supporting PracticesMeta-PrinciplesResponsiveness to Change          Waste MinimizationEnterprise PrinciplesRight thing, in the right place, at the right time, in the right quantityEffective relationships in the value chainContinuous improvementOptimal first unit delivered qualityLean Enterprise Model -A Tool for Benchmarking Lean EnterprisesSource: web.mit.edu/leanOverarching PracticesOptimize Capability & Utilization of PeopleContinuously Focus on the CustomerMake Decisions at Lowest Possible LevelPromote Lean Leadership at all LevelsDevelop Relationships Based on Mutual Trust & CommitmentNurture a Learning EnvironmentHuman Oriented PracticesEnsure Process Capability and MaturationIdentify & Optimize Enterprise FlowImplement Integrated Product & Process DevelopmentMaintain Challenge of Existing ProcessesAssure Seamless Information FlowMaximize Stability in a Changing EnvironmentProcess Oriented PracticesNightingale & Valerdi, IERC - May 2006© 2006 Massachusetts Institute of Technology - 23web.mit.edu/leanRight Job Efficient Process ExecutionJob Right Engineering ExcellenceLeadership &OrganizationalEffectivenessMeta PrinciplesLean SE Tool: Draft Value Based Systems Engineering ModelSE Enterprise PrinciplesOverarching PracticesMetrics: Programmatic Success? ? ? ? ? ?? ? ? ? ? ?

Coupling Lean Thinking and Systems Thinking at the Enterprise Level

http://dspace.mit.edu/bitstream/1721.1/84188/1/cps_060516_valerdinightingale_ierc_final.pdf

Coupling Lean Thinking and Systems Thinking at the Enterprise Level

Abstract

Similar works

Full text

Available Versions

DSpace@MIT