Lycoming Engines` Shingo Prize Winning Journey to

Lycoming Engines’ Shingo Prize
Winning Journey to Premier
Don Wagner, VP Operations
Gary Naculich, Manager,
Advanced Technology Center
Lycoming Engines
MWCC Mid-Atlantic Lean Conference
7-8 November, 2012
Lycoming Engines’ Shingo Prize Winning
Journey to Premier
2012 Mid-Atlantic Lean Conference
2
This Information is Company Private - Not for Public Release
Not for Further Dissemination Beyond Textron Companies
Lycoming Engines
FAA Production Certificate #3
AS9100 C Registered NSF
2010 Shingo Prize (Enterprise)
4 Generations at “The Motors”
Early Days: Cord, Duesenberg…
• 1929: Introduced First Aircraft Engine - R-680
• 9-cylinder, 200+ hp piston radial
• 1936: O-1230 Horizontal
• 12-cylinder, 1,200 hp
• USAAF Funded
•1944: XR-7755 Radial
•
•
•
•
36-cylinder, 5,000 hp
USAAF Funded
30 years advanced from automotive
Stopped by emerging jet turbines
From Automobiles to Aerospace
80 Years in General Aviation
• 100-500+ hp engines
• 325,000 built
• 65% Share
Legendary Aviation Engine Dynasty
5
“First” to Challenge….
Lycoming Engines
“Journey to Premier”
Milestones:
Awarded Shingo Silver Medallion (Enterprise) 2008
Awarded Shingo Prize (Enterprise) 2010
6
“We’ll Be BACK”
This Information is Company Private - Not for Public Release
Not for Further Dissemination Beyond Textron Companies
“The Way We Were”
“est.” 2003
2004
• RTIR = 4.7
LTIR= 1.3
• WC Reserve ~ $ 5 Million
SAFETY
QUALITY
• PPM ~ 900,000
• $ 50 Million Field Issue Mitigation
• 40 Receiving Inspectors @ “100%”
DELIVERY
• OTD ~ 49 %
• Customers defecting x value streams
• Elephant Cycle/Crisis of the hour
COST
• Negative Profit / Cash Flow 5 years
• Inventory Control = Annual Physicals
• No Continuous Improvement focus
LEADERSHIP &
TEAMWORK
• NLRB Dictate for 8 years (paralysis)
• No Focus on Competitive Position
• No Trust X payroll X function, X suppliers
Surviving on the Legend….
7
The Way We “ARE”
“est.” 2003
SAFETY
QUALITY
DELIVERY
COST
2010
• RTIR = 0.44 LTIR = 0.22 Near Miss Index = 34:1
• WC Reserve $ 396 K ….. reduced 12 X
• PPM = 30000/9000
• 70 % improvement in Quality Impact Score
• 5 Receiving Inspectors audit Supplier Data on Dock
• Value Stream Approach is a competitive dvantage
• Customer Response Times reduced up to 85%
• Growing Market Share / Entering New Markets
• Continuing to invest in competitive advantage
• Inventory reduced 30% in ‘09
• Reduced Cost > $50 M in last 6 years
• IBB / 5 year competitive labor agreement
LEADERSHIP & • Joint Competitive Review / In-sourcing Work
TEAMWORK
• Cascading/Embedded “Relationship By Objective”
Living the Legend….
8
Continuing the Journey
The Rest of the Story…..
Cultural Enablers…
CE
Relentless Improvement…
RI
Enterprise Alignment…
EA
Sustainment
S
9
Build a Strong Foundation
 Top Level Commitment
 Create the Vision
 Appoint a Champion with Authority to Direct
 Integrate Departments - Eliminate “Silos”
 Align Cross-Functionally
 Visual Implementation Plan
 Involve Everyone
 Measure & Advertise Progress
 Allocate Time
CE
10
Lycoming Leadership Team
BB
Michael Kraft
Sr VP& General
Manager
GB
T. Harrington
General Counsel
GB
BB
D. Racine
Vice President
Program
Management
A. Anderson
G. Defever
D. Wagner
Director
Human Resources
Vice President
R&D and
Engineering
Vice President
Operations
GB
D. Dawes
Director
Finance
SLT
GB
GB
GB
D. Bubb
President Local
787
CE
BB
K. Samson
S. Logue
J. Mankad
A. Kar
Director, Strategy,
Marketing & Comms
Director Business
Development
Director
Quality
Manager
Information Tech
Walking the Talk
GB
M. Everhart
Vice President
Products and
Services Delivery
V. Wepener
Vice President
Strategic Alliances
Journey to “Premier”
“To be the premier aviation engine company
recognized for our products, innovation, and
customer service.”
Lycoming’s “10 Principles of Premier”
Safety
Teamwork
Six Sigma Quality
Organizational Velocity
Personal Accountability
Complete Customer Focus
Relentless Improvement
Innovative Spirit
Positive Attitude
Honor
CE
Communicating the Transformational Vision
12
Operations Leadership Team
Six Sigma/Lean Certified Depth
CE
13
Leadership Standard Work
7:00-7:15
7:15-8:00
8:00-8:30
8:30-9:30
9:30-11:00
11:00-Noon
Noon-1:00
1:00-3:00
3:00-3:30
3:30-5:00
GEMBA/Shop Talk
Production Meeting
GEMBA Walks 5S/Training
QIP/VSIP/IMP/PFP
Problem Solving Team Time
Shop Floor Support
Lunch
Cross Functional Meetings
KPI/SQDIP Review
Business Level Meetings
LSW…..BREAKTHROUGH ENABLER
CE
14
Meeting
Effectiveness
Process
CE
If You Lead You Teach and Coach
15
Practice Effective Communication
1. What is the PROBLEM?
2. Who is the CROSS-FUNCTIONAL Team?
3. How Does This Tie to a COMPANY OBJECTIVE?
4. What were the RESULTS?
Standardize Everything You Can
CE
16
A Foundation for Excellence…
1. Safety
2. Quality
3. Delivery
4. Cost
5. Leadership and
Teamwork
Clear and Consistent…since ‘03
CE
17
Become Data Driven
•
Create Support (SMEs) for Teams
…Continuously Train them to become experts
•
Measure, Measure, Measure
•
Determine What is NORMAL & ABNORMAL
•
Make it Visual
•
Make it Standard
Manage by Walking Around
CE
18
Safety: Near Miss Mentality
Injury & Illness Pyramid
0
Fatality
1
Lost Time Injury
2
Medical Treatment Injury
26
First Aid
Near Misses & 1st Aids to
Recordables
2005 Ratio = 6 to 1
2006 = 17 to 1
2007 = 10 to 1
2008 = 33 to 1
2009 = 23 to 1
2010 = 34 to 1
42
Near Miss
????
Human Error & Equipment Failures
CE
Culture, Mindset and Behaviors
19
Culture of Prevention
New added in 2009: Customer Comp. including
Spares & A.M. Eng.
QIP at Each of these
VSM of OEM / AM /
Spares
Metric Leverages Discovery
RI
20
Customer Response Time by
Value Stream
2010 Improvement
> Goal
</= Goal
Goal
2010
AM
AM Spec 1
ATC
KIT ENG
NEW SERV
CYL KITS
SPARES
(calendar
days)
JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
30
8
60
60
60
5
5
58
26
18
48
61
6
17
53
34
23
47
34
5
13
39
8
42
44
64
5
13
30
6
5
60
68
5
15
26
7
4
0
58
4
17
30
7
5
59
57
5
17
44
6
0
41
56
4
11
29
3
2
0
41
10
10
Exploiting Lean as Competitive Advantage
RI
21
Customer Response Time by
Value Stream
2012 Actual Performance
by Value Stream:
> Goal
</= Goal
+ Late / - Early
by Breaking the Numbers….
S
Just Start!
 Train Your People the Basics
 Establish a Beachhead
 Don’t Let Perfect Get in the Way
 Do it Wrong the 1st Time
 Learning Organization
 Train on Demand
 Resources Will Materialize
If You Lead, Others Will Follow
RI
23
“BULLETPROOF” AWARDS
Practical Problem Solving Teams
Feb 2004 to Sept 2010: 99.1%
“Engine 49” Enables Relentless Improvement
RI
24
Practical Problem Solving (PPS) Process
Global Application
Suppliers
Customers
Asia
USA
Europe
Australia/New Zealand
Hardware
RI
Administrative
Why do Lean?
Aircraft OEMs
Factory Rebuilds / Overhauls
Service Parts
RI
3 Legacy Value Streams
26
6 NEW Value Streams
RI
Thunderbolt
LSA
Kit Engines
IE2
We are “Doing Lean” for 1 Reason….
27
Piston Engines for Aerospace
RI
If it flies on Pistons … it’s probably a Lycoming
Plan for Competitiveness
PFC Savings
$18.0
$15.1
$16.0
PFP
Suggestion
process
Savings(Million Dollars)
$14.0
$12.0
$8.9
$7.7
Employee
Empowerment
$8.3
$5.9
Management
Challenge
$3.0
Add
Practical
Problem
Solving
LLT
Entitlement
PFP
Started in
2005
$8.0
$4.0
CTQ Flow
$10.7
$10.0
$6.0
$68.8M Hard Savings so far
$5.7
$3.5
$2.0
$0.0
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Relentless Improvement …Core Competency
S
RI
Ownership of Relentless
Improvement
Roof
Output
Strategy
Enablers
Constraint
Defect @
50,000 ft
D
• VSM
• Theory of
Constraints
Supplier's Impact on Lycoming Operation
1400
1200
1000
Defect @
5,000 ft
800
System Level
Process
600
400
M
200
0
Kurt
Techi
• Cascaded Paretos
• MSA
300
250
Crane
Unison
A
Corrective
Action Plan
Control @
5,000 ft
Control @
50,000 ft
I
150
Project #
Annual Objective/Improvement Priority
Increase OTD to >95%, decrease PPM <20k, move
to B and B in Valencia, CA
Team Members Names
100
50
GDP Owner
Wepener
Process Owner
Project Leader
Bacher
0
LW-12345
Pillar #2
Root Cause
Pillar #1
200
Date
Carroll
Next Review
Core Objective
Dabback, Straub, Snyder, Heath, Bacher, Carroll, Doherty (Systems), B and B Manufacturing
LW-19999
LW-14555
LW-23888
LW-12234
Milestone orPlanned
2006
2007 CY-06 Annual $
Action Step/ KaizenProcess
Events Owner
Recover DateDates J F M A M J J A S O N D J F M Impact
Define roles and responsibilities Team
Monitor QTD and PPM and issue
corrective action as needed
Dabback, Team
Complete
X
On-Going
X X X
FPY Layup
ENGINE 49
Task for B and B Move
Building Lycoming Cell
Cell Layout
Start Date End Date
100%
8/25/06
1/8/07
9/4/06
9/13/06
90%
X
X
80%
70%
60%
50%
40%
30%
J
F
M
A
20%
Goal
C
M
J
J
A
S
90 OEM Eng
O
Percent RTY
N
D
A.M. Eng
July
Aug
•
•
•
•
•
FPY
Control Charts
Jidoka
Poka-Yoke
QFD
• RTY
• Control Charts
70
50
30
• Action Plan (Owner,
Action, Deadline)
• PPS
• TAKT Time
• Flow & Pull
Sep
Oct
Lycoming Production System
Foundation
RI
INTEGRATION = Sum of f(VSIP) + f(QIP) +
f(PFP) +f(IMP)…
30
Relentlessly Improve
 Apply Relentless Improvement to
“Yourself” and “Your Processes”
 When You Reach the Bar, Raise It!
 Educate Cross Functionally
 Follow “Herbie” & Hang On!
RI
You’ll Know When You’re Successful, When You
Can’t Keep Up!
31
ISC Strategy Process
“To become a premier aviation engine company
recognized for products, innovation and
customer service”
1.
2.
3.
4.
Grow and Sustain EHS and Quality Culture of
Prevention
Customize Customer Response Capability as
competitive advantage by Value Stream
Sustain Relentless Improvement to achieve Plan for
Profit in ’10 and future competitive advantage
Leverage Leadership and Teamwork to make Lycoming
premier “employer/supplier/customer” and challenge
for Shingo Gold in 2010.
Vertical and Horizontal Business Alignment
EA
32
Strategy Effectiveness Indicators
Strategy
Indicators
Culture of
Prevention
BMP; AON, Walking Track utilization, Safety Poster
Contests….
QIP expanded incl Process Control/ Reliability/ DLC Tappets
(Process) Data on Dock/ Electronic Torque Control
Customer
Response
3rd Cessna Stars Award, AVIALL @ 99.94 %
AM Spec Engines 50% ship < 8 days )
Cylinder Share ~ 94% / Spares ~ 72%
Relentless
Improvement
Qtr 2 “TBSA” confirmed progress, Shingo Application
Accepted
BB/GB/PPS/Engine 49 Projects driving PFP savings ytd.
“Green Tm,” Pocking Materials, Jt Fuel Control Tms working
Leadership
and
Teamwork
Jointly Cascading RBO in Engineering/Tech Unit
Shop Leaders / Final Inspectors / Process Ownership
BMP: AAI, AVSTAR, COSWORTH / TAKISAWA
S
Embedded Annual Process / Quarterly Review
33
Integration Champion’s Toolbox
TEXTRON 6Sigma
Lycoming Engines
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
S
TSS Training
Project Contract
Team Charter/Checklist
Ishikawa/Fishbone
Pareto
Visual Tools
Statistical Methods
Teaching
Take time to Explain
Mentoring
Kaizen
GRPI
Engagement Survey..
Leadership by Example
Ownership of Integration
Meeting Effectiveness
Near Miss Management
RBO / IBB / WT101/
Benchmarking as Std Work
QIP / VSIP / PFP / IMP
Practical Problem Solving
Bulletproof Award
Leadership Standard Work
6 S / Training Walks
Gemba Walk
AEE / Roundtables
Competitive Review
“Integration” Leadership and Teamwork
34
Integration Benefits/Challenges
Benefits
•
•
•
•
•
•
•
•
•
•
•
•
Safer place to work
Made money
Removed waste
Recovered from c-shaft
debacle
Encouraged idea flow
Restored hope
Willingness to change
growing
“My area is next”
Builds Trust
Eliminated elitism of TSS
X functional teams
Involvement is growing
•
•
•
•
•
•
•
•
•
•
Challenges
“Keeping car running is
tough”
Maintaining accountability
Overcoming legacy systems &
monuments
Tough to let go (of past)
Avoid creating new
monuments
Explain to enable
understanding
Visual communication of
progress to leverage success
Maintaining TRUST
Resources are not always
available
Constraint is not always
money
“Lycoming is a Learning Organization”
S
35
Our Lessons Learned
All Change is Hard
Expect Resistance
All Changes Take Time & Patience, but
Sustainable Changes Take MORE Time &
Patience
After 8 Years and the Shingo Prize, We are Still Learning!
S
36
DO YOU HAVE QUESTIONS?
37
Question & Answer
Please fill out your session feedback and leave it
at the back of the room!
This Session Is: 02-05-01 Wagner & Naculich
Are you a future presenter?
Contact Jeff Fuchs, [email protected]
About presenting at next year’s
Mid-Atlantic Lean Conference.
MWCC Mid-Atlantic Lean Conference
7-8 November, 2012