Fleet Readiness Center Southwest E2/C2 Product Line Fleet

5/22/2009
Fleet Readiness
Center Southwest
E2/C2 Product Line
Briefing Points:
• Naval Aviation Enterprise
– Our business
– Lean and HPO
• Change Enablers
• Developing a High‐performing E2/C2 Team
Creating a High-Performing
Organization
– Transformation journey
• Summary
Joe Caoile
6 May 2009
Version 6
1
5/22/2009
Overview
Naval Aviation is
Unique !
AIMD
NAE Guidance
NAVAL AVIATION
ENTERPRISE
Enterprise
Framework
Enterprise
Framework
Vision
"Naval Aviation Forces,
Efficiently Provided
and Ready for Tasking,
Now and in the Future"
Fleet
Requirements
CNAF / DCA
Direct and
Monitor
Rqmts
– Naval Aviation 2030
Goals
Balance Current & Future Readiness
Reduce the Cost of Doing Business
Enhance Agility
Improve Alignment
Attain & Maintain Visibility Across
the Enterprise
The Fleet
Providers
Execute
Rqmts
Fund
Rqmts
Resource
Sponsors
OPNAV / HQMC
and more . . .
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5/22/2009
Naval
Aviation Enterprise
EnterpriseSystem
System
Naval Aviation
Goals
Naval Aviation
Enterprise Goals
-Established the Strategic Level Vision
Commander Naval Air Forces
Right Readiness at the Right Time at the Right Cost
Commander, Fleet Readiness Centers
Goals
Training
Aircrew
Pers
Training
Techs
Aircraft
$$$
Procurement
RFT Aircraft
Production
Flight
Hours
Flying Hour
Program
Readiness
- Focused on
Maintenance and Repair
off aviation
i ti
systems
t
to
t
generate aircraft Ready
for Tasking (RFT)
On Time Delivery, At Unit Price
Fix It Once, Fix It Right, Fix It On-Time
Commanding Officer,
Fleet Readiness Center, Southwest
Goals
Weapons
Simulators
Adversaries
Ranges
TAD
Parts
Metrics:
RFT & CPH
AVDLR
AFM
$$$
Fuel
-Provides the right aircraft,
part or service at the right
time, in the right quantity to
support operational level
mission (RFT)
Metrics:
Readiness &
Execution
$$$
Organizational Level (O)
Off-Aircraft
Three
Levels
Maintenance
of Aircraft
Maintenance
Depot Level (D)
Overhaul
Rework
Produce at TAKT Times Meeting NAE
Flightline and RFT Entitlement at or
Below Budgeted Cost
Fleet Readiness Centers
Naval
Aviation
Maintenance
Naval Aviation
Maintenance
Squadron Level
Servicing
Replace Parts
-Established the priorities that will
address strategic level gaps
Meet Ready for Tasking Entitlements at Less Cost
Pers
NORTHWEST
WEST
MID ATLANTIC
AIMD WHIDBEY ISLAND
(Crane ALQ-99 workload)
Site Patuxent River
AIMD LEMOORE
NADEP NI Det Lemoore
Site Fallon
NADEP NI Det Fallon
Site Pendleton
MALS-39 Pendleton
NADEP NI Det Pendleton
Site China Lake
AIMD OCEANA
AIMD Norfolk
AIMD NAS Corpus Christi
NADEP CP Det Oceana
NADEP JAX Det Norfolk
NADEP JAX Det Oceana
NAWC Lakehurst
X Det Norfolk
EAST
Site N. Orleans
AIMD Atlanta (E-2C Support)
NAVAIRES New Orleans
NADEP CHERRY POINT
MALS-14 Cherry Point
AIMD Willow Grove
FRC East Det Lakehurst
Site Pt.
Pt Mugu
Site Fort Worth
Intermediate Level (I)
Component Repair
-Afloat & Ashore
On-Aircraft
Maintenance
Fleet
Readiness
Centers
AIMD Atlanta (FA-18 Support)
NAVAIRES Fort Worth
Site
Kaneohe
Bay
Site New River
MALS-26 & 29 New River
NADEP CP Det New River
SOUTHWEST
MALS-11 & 16 Miramar
NADEP NI Det Miramar
AIMD North Island
NADEP North Island
NADEP North Island DET NI
Site Beaufort
MALS-31 Beaufort
NADEP JAX Det Beaufort
SOUTHEAST
Site Yuma
MALS-13 Yuma
NADEP NI Det Yuma
Site Mayport
AIMD Mayport
NADEP JAX Det Mayport
NAWCAD LKE Det Mayport
NADEP JACKSONVILLE
NADEP JAX Det Cecil Field
AIMD Brunswick
AIMD JAX
Site Key West
A MAJOR TRANSFORMATION IN DELIVERY OF AVIATION MAINTENANCE!
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5/22/2009
Fleet Readiness Centers provide:
In Times of Peace
In Times of Conflict
• “Ready & Controlled” Source
• Partner & Peer to Industry
• Last Source of Repair
• Force-Multiplier
• Operationally Ready
• No Contract Required
Distributed Maintenance Concept
Fleet Readiness Center Southwest
Maintenance,
Repair,
Overhaul
Fleet Readiness Center Southwest
A World Class Aviation MRO Facility supporting the
World’s Greatest Team Sport – Naval Aviation
FRCSW at North Island
FRCSW
Creating Value across
the Enterprise
Iraq
Japan
China Lake
Whidbey
Island
Pt. Mugu
Camp Pendleton
North Island
Kaneohe
Miramar
El Centro
Yuma
Lemoore
Strategically Positioned to
Support our Navy and
USMC Warfighters
A National asset, providing flexible, responsive,
integrated maintenance solutions and cost-wise
readiness to our nation’s Warfighters
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5/22/2009
FRCSW: A Major Aerospace Complex
FRCSW Competencies
Aircraft Throughput
286 Total Aircraft FY08
47 H-60
8 AV-8B
63 H-1
28 EA-6B
9 H-53
H 53
10 E
E-22
111 F/A-18
10 C-2
15% of the
Hawkeye
Industrial
Forge & Drop Hammer
Manufacturing
Composite Repair &
Manufacturing
Laser & Water Jet
Cutting
Calibration & Materials
Analysis Labs
Shipping, Receiving
& Tracking
p
Components
Stress Analysis
& Repair
Component
Design
Engineering
29% of the
COD Fleet
Multi-axis & Chemical
Machining
Clean Room
Component Repair
Logistics
$537 million annual revenue
81 Buildings, 2.6M sq. ft., 358 acres
The largest aerospace employer in San Diego County
Delivering the Right Readiness at the Right Cost
Strategic Improvement Model
Process Axis
Product Axis
F/A-18 PMI-1/CBR+
Lean Effort
E-2/C-2 Value Stream
Y = F(x)
F/A-18
Manufacturing
BB Project
=Y
FISC Supply
Lean 6 Sigma
E2/C2 PMI-2/PMI-3
SLEP Lean Effort
E2/C2
Manufacturing
BB Project
Item Criticality
GB Project
Tech Library
GB Project
Material Testing
GB Project
=Y
Business Unit Material
Ordering Projects
=Y
CH-53, H-1, H-60
Lean Effort
BOM Improvement
Projects
Components
Lean Effort
Manufacturing Lean Effort
=Y
A Holistic, Dynamic, and Closed
Closed--looped System designed to meet
NAE Goals and Objectives
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5/22/2009
Holistic,
Dynamic,
and Closed Loop
HPO+AIR
Speed=FRCSW
DIAGNOSTIC/CHANGE MODEL FOR BUILDING
HIGH-PERFORMANCE
World-Class MRO
for the World’sORGANIZATIONS
Greatest Team Sport
High‐Performance Focus
II-21
Commonwealth Centers
FOR HIGH-PERFORMANCE ORGANIZATIONS
ORGANIZATIONAL LEADERSHIP
PHILOSOPHY
 What Is/should be the organization’s/unit’s beliefs (as
expressed in its culture, behaviors, and systems) about
the following:
 The “nature of people” and their attitudes toward
work.
 How most people are motivated.
 The distribution of knowledge and creativity and,
therefore, how decisions should be made.
 The “nature of work?”
This is the feedback loop needed
for fundamental change– i.e.,
Transformational Change
1. WHAT IS/SHOULD BE THE DEFINITION OF HIGH-PERFORMANCE FOR US? What are we trying
to accomplish; what is our unique Mission/Niche; what is our Desired Future State?

2. HOW WOULD WE KNOW IF WE WERE HIGH-PERFORMING? How do/should we define the
following elements of High-Performance?
1. QUALITY OF PRODUCTS AND SERVICES
• Design and Features Quality
• Execution Quality
2. CUSTOMER “VALUE”
• Cycle Time
• Convenience
• Relationship/Responsiveness
• Other
 How and at what levels are problems solved and decisions
made? How and at what levels should they be
solved/made? Is power shared appropriately in our
organization/unit?
 Do we have organizational/unit “Change Mechanisms” at
all levels of the organization to ensure that the “Work of
Leadership” occurs appropriately (an effective “Parallel
Organization”)?
 Do we have a good balance between “thinking” and
“doing”? A good “handoff” between the two modes?
Does our definition of high-performance require the simultaneous delivery of all three of these elements
consistently over time – “PICK 3+”?
According to whom are we high-performance? (see the “Environment Box” for detailed questions)
Is our vision understood and shared by everyone at all levels of our organization/unit? Is there “passion”
to achieve the vision?
Cell-Based
Cell
Based Work
Environment
ENVIRONMENT
AS9100
AS9110
Quality
Mgmt.
Systems
3. ACCORDING TO WHOM ARE WE HIGH-PERFORMING? Conduct a Strategic

Customer Value Analysis (SCVA) looking at: Who are our customers and other stakeholders
(food chain, beneficiaries, suppliers, collaborators/partners, others)?
 What do they “value” (wants/needs/expectations) now? In the future?Are there conflicting
wants/needs/expectations)
among
our
customers/stakeholders?
Do
we
have
effective/appropriate methods for setting priorities among them when necessary?
 Do we understand the politics of our environment?
 What other environmental changes/conditions are important for us?
GAP
 How large/serious is the gap between our customers’/stakeholders’
wants/needs/expectations and our performance? Between our potential
performance and our actual results?
 What must we do to narrow the gap?
HIGH PERFORMANCE/RESULTS
(Outcomes/Impacts)
 Do we know what our results (outcomes/impacts) are?
 Can we measure them in terms of Quality, Customer Value, and Financial Performance —
PICK 3+?
 How well have we met our High-Performance definition in the judgment of our
customers/stakeholders?
AIRSpeed
Tools:
Linked Metrics
 Do we have an effective
way to prioritize our
actions?
Lean
Six Sigma
TOC
THEORY OF THE BUSINESS
6.
HOW GOOD ARE WE AT DELIVERING OUR MISSION/NICHE? Are we as EFFICIENT as we can be in delivering our key products and
services? Do we have the right strategy/structure/systems? Are they being done right?
 STRATEGY: Are our organization’s/unit’s “business model” (“economic engine”) and delivery strategy sound? Will they allow us to
effectively/efficiently accomplish our Vision/Mission? What is our “competitive advantage” based on? Do we know our key business functions? Do
we need to reengineer/reinvent? Do we have a sound approach to address “make” or “buy” decisions? How do we handle “surge” demand?
Surplus capacity? Can we explain our key business assumptions and our causal model for getting results?
 STRUCTURE: Are we correctly structured to support our Vision and Strategy? Have we broken our work down correctly so as to most effectively
deliver our products and services? Have we provided for the integration of the parts of the organization to produce a seamless higher-level whole?
Should we use matrix, business centers, process/product structures, … ?
 SYSTEMS: Do we have the right support systems and work processes to most effectively/efficiently operate our organization/unit and deliver our
products and services to customers? Are we as good as we should be in the execution of our strategy, structure, and processes? Do we have
effective/efficient systems/processes in all the following areas:
• Support Systems: human resources (i.e. do we have the right people with the right skills, competencies, attitudes, and behaviors and the right
supporting HR systems for job design, recruitment, compensation, classification, retention, rewards, appraisal, accountability);
financial/procurement; facilities and equipment; information and communication, technology, etc. Have we put our systems “under control?”
• Work Processes: do we have the “right” work processes and are we “doing them right?” Have we put our processes “under control?”
• Work Management & Control Processes: does every member at every level of the organization have the systems/competency to monitor/take
appropriate corrective actions on their key success factors? Can we measure our success? Do we have the tools – e.g., Balanced Scorecard?
• Continuous Process Improvement: do we have the tools/discipline for continuous process improvement – e.g., Lean/6 Sigma/ToC,
Reengineering, Baldrige?
Financial/
Resource Plan
 Do we have an efficient
financial/ resource plan for
tying together work-load
forecasting, budget/
financial planning, and
human resources/
facilities/ technology
planning
 Do our systems give us
adequate financial/
resource management
data?
PEOPLE + WORKFORCE DEVELOPMENT
Strategic Plan + Operational Plan = Business Plan
[email protected]
www.highperformanceorg.com
Do we have a sound Business Plan for our organization/unit?
Cell‐based work environment
Workplace and workforce ready environment
Linked Metrics
Catch‐ball – vertical and horizontal understanding of KPI
understanding
of KPI’ss
Micro‐business
Strategic Business Teams (SBT) ‐
Customer‐focused organizational structure
Mission/Niche + Theory of the Business = Strategic Plan
 Do we have a sound Strategic Plan for our organization/unit?
VER
4.7/21/2008
Airspeed Toolsets
Lean, TOC, Six‐Sigma practices
Best Industry Practices (Compliance e.g. AS9110, ISO‐1400, MB, etc.)
Removing the barriers for market entry
People Focus (Learning and Growth)
Developing the leaders and workforce of today and the future
© 1989-2008 Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation
E2/C2 PRODUCT LINE
High Performance
Journey
For More Info, Contact:
[email protected]
(619) 545-3415
Maintenance,
Knowing our customers and our customers knowing us intimately
Box” here to answer questions about our microbusiness partners, beneficiary and food chains, other stakeholders, competition and our
environment; can we demonstrate (measure) how effective we are at meeting our customers’/stakeholders’ wants/needs/expectations around these
products and/or services?

Develop the Micro
Businesses
Action Plan
 Are our day-to-day actions/behaviors/policies/ programs
tested against our End and Means Values and our Work
Culture?

ARE WE DELIVERING THE RIGHT “WHAT” – RIGHT KEY PRODUCTS AND SERVICES TO THE RIGHT CUSTOMERS WITH
EXCELLENT CUSTOMER VALUE? Are we as EFFECTIVE as we can be in serving our customers?
 Specifically, what is/should be our organization’s/unit’s unique niche? Who would miss us if we were gone? What are/should we be taking
responsibility for accomplishing in the near future (three – five year concrete mission); longer-term (ten to thirty year “major impact” goal)? How
does our mission/niche contribute to accomplishing the overall vision of the larger whole? What are/should be our key products and services?
How do we know they are the right ones? Are we delivering our products and services with excellent customer value?
 With whom do we need to integrate/collaborate/partner to accomplish our and the larger whole’s vision?
 NOTE: also apply the results of the SCVA analysis (answers the
3. “ACCORDING TO WHOM?” question) done in the “Environment
TACTICAL/OPERATIONAL PLAN
 Do we have an effective Tactical/ Operational Plan
connecting our action plan and financial/ performance
plan to our strategic plan?
 Do we have clear
“tactical” goals and
objectives at every level
of the organization to
operationalize our
strategic plan and ensure
results which meet
customer needs?
7. HOW ARE WE GOING TO TREAT EACH OTHER
AND OUR CUSTOMERS/STAKEHOLDERS? What “Means
Values” are we going to use to guide/bound the decisions,
actions, and behaviors of our organization/unit and each of
us personally?
 Is our organization/unit Work Culture conducive to
accomplish-ing our vision? What do we need to do to
improve our Work Culture?
On What
Customer Focus (Naval Aviation Enterprise)
MISSION/NICHE
5.
This loop also misses the Mission/Niche and
Strategy/Structure/Systems change levers
4.
WHY DO WE NEED TO BE HIGH-PERFORMING IN
THE FIRST PLACE? Why isn’t “good” good enough? What
are the “End Values” we are seeking? What is our
ultimate/core reason for being – our “Higher Moral
Purpose?” This “End Values” work starts the “Vision Spiral.”

3. FINANCIAL PERFORMANCE
• Revenue/Cost
• Affordability
• “Profitability” (or equivalent measure)
• Other
Executive Steering Committee
These are the “normal” feedback loops for most organizations;
these loops lead to Transactional Change;
they miss the Leadership, Vision, Values Change Levers
Focus
VALUES

Performance Organization
FORM
FUNCTIONS
 Are the Functions of Leadership (as well as the
“functions of management”) getting performed at all levels
of the organization? What is the appropriate content at
each level?
 Strategic Customer Value Analysis (SCVA)
 Vision/ValuesStrategy/Structure/Systems
 Suprasystems Integration/Stewardship
 Learning/Thinking/Changing/Renewing
 Enabling/Empowering/Energizing
High
Naval
Aviation
VISION

 What should be our organizational/unit “nature of work”
paradigm and Leadership Philosophy?
 “Networked Talent” Model vs. “Industrial” Model
 “Leadership/Management/Task/Team Skills” as “job”
vs. ”Task-only” as “job”
 “Consultative/participative” leadership philosophy vs.
“exploitative/benevolent autocratic” leader-ship
philosophy
Repair,
Overhaul
Fleet Readiness Center
Southwest
Fix it Once, Fix it Right,
Fix it On Time
6 May 2009
Charlottesville, VA
Version 6
6
5/22/2009
E2/C2 Change Model
have to explain why the affected people should want to change, and thereby cultivate readiness Mo
tiv
ati
on
change management is clear: In a nutshell, you Need
much as they resist “being changed.” So the job of Ch
C
ha
an
ng
ge
e
“It’s often said that people don’t resist “change” so s
es
in
ns
tio
ad
e
Ac
R
Outcome
Outcome
Vision
Vision
Clarity
Clarity
Compelling
Compelling
Desire
Desire
Incentive
Incentive
Willingness
Willingness
WIIFM
WIIFM
Ability
Ability
Knowledge
Knowledge
Skills
Skills
Resources
Resources
Support
Support
Collaboration
Collaboration
Reinforcement
Reinforcement
Positive
Positive Feedback
Feedback
Rewards
Rewards
Acknowledgement
Acknowledgement
Recognition
Recognition
Celebration
Celebration
instead of resistance.” C h a n g e T a c tic s
Excerpted from Brien Palmer, Making
Change Work: Practical Tools for
Overcoming Human Resistance to
Change, ASQ Quality Press, 2004, pages
xv-xvi, 7-9
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Information Concerns
• What are we trying to do?
• What is required?
Concerns and Issues that we had to address for change to occur
address for change to occur
• What is wrong with the way things are right now?
• What
Wh t iis the
th scope off our activities?
ti iti ?
• How much can we do?
• How fast should we do it?
• Is leadership on board with what we are trying to do?
• Other information concerns?
7
5/22/2009
Personal Concerns
Implementation Concerns
• What do we do first? Second? Third? Etc.
• WIFM?
• How do we manage all the details?
• How will this impact me?
• Who will manage all the details?
• How will this impact my organization?
• What happens if we run into opposition? Who do we go
to for help?
• How will I find the time to do what is being asked of me?
• Will I have to give up something?
• Do I need new knowledge or skills?
• How long will this effort take?
• Do we have the right resources?
• Other implementation concerns?
Impact Concerns
Collaboration Concerns
• Is this effort worth it?
• Will this effort make a difference?
• Who else should be involved?
• How
H
will
ill we k
know?
?
• How do we get others to get involved?
• How much will this cost?
• How do we spread the word and to get buy in?
• Other impact concerns?
• Other collaboration concerns?
8
5/22/2009
What happens when we don’t answer the concerns?
The Human Side of Change
“It’s all about people”
X
Clarity of
purpose
Skills
Incentives
X
Skills
Incentives
Clarity of
purpose
Skills
Incentives
X
Clarity of
purpose
Skills
Incentives
Clarity of
purpose
Skills
Incentives
Clarity of
purpose
Resources
Resources
Action Plan
Success
Confusion
Action Plan
Anxiety
Resources
Action Plan
Gradual
Change
Resources
X
Action Plan
Frustration
Resources
Action Plan
E2/C2
Product Line
Norming
Storming
X
False Starts
Withdrawing
Forming
Clarity of
purpose
Skills
Incentives
Resources
Action Plan
Success
Failure
Improving Performance and The Problem
Developing a High Performance •Product line experienced significant
challenges
E2/C2 Team
•Diminished customers’ confidence:
The Journey
– In Team’s ability to deliver on time, cost-wise,
quality products
– Quality problems elevated the issues
9
5/22/2009
The Challenge
•Improve overall performance
•Restore customers’ confidence in
NADEP North Island’s
Island s ability to
produce:
Quality
The Goal
• Restore customers’ confidence quickly.
• Identify the bottlenecks and constraints
– create flow
• Reduce work-in-process and deliver
promised products.
products
• Identify the sources of quality problems
and resolve them.
Cost-wise
• Restore the workforce confidence in it’s
ability and capacity to produce.
Ready for tasking E2 and C2 aircraft
• Create a high-performance Team.
The Plan
Team Assessment
• Short Term: Phase 1 – Lean Focused
 Meet customers and get clarity on their needs.
 Meet the workforce and convey the sense of urgency.
 Meet key team leaders/members and identify their areas of concerns and issues.  Review current capabilities and capacities – strengths and weaknesses
 Implement and accelerate AIRSpeed activities focused on flow and throughput – unclog the bottlenecks
 Deliver quality products as promised
 Control and reduce overall costs.
• Long‐term: Re‐make the current team into a High‐performing Team that produces on time, affordable, reliable products.
 Phase 2 – TOC focused
 Phase 3 – Six Sigma focused
 Phase 4 ‐ CPI
• Success Barriers
– Material concerns
– People concerns
• Short‐term team decisions and actions
– Create flow – Lean Visual factory
– Improve quality – Improve workforce capability
10
5/22/2009
Understanding the Material Issues
e
ftw
ar
D
at
ck
h
–
Going behind the system because we –
Failure to move parts timely to destinations in the material support value streams
2
10%
0
0%
IT
Frequency
20%
Ordering from multiple sources
–
Poorly controlled back‐robbing and diverting
–
Hoarding
–
Failure to properly preserve, handle, and store material in custody
–
So
ed
ba
Te
c
ur
ce
d
ro
y/
P
40%
30%
–
don't trust the delivery dates and exacerbating the problem
•
Po
l
ic
Fe
p
ng
ffi
rs
hi
St
a
w
ne
O
60%
50%
4
Da
ta
0%
70%
8
6
E&
E
So
ft w
are
10%
0
90%
80%
12
10
Pa
y
Fe
ed
ba
ck
20%
2
l
Ordering more than is needed
14
Te
ch
30%
4
in
–
100%
18
16
ffin
g
O
wn
ers
Po
lic
hip
y/P
ro
ce
du
re
s
6
Tr
a
Ordering too late in the process
in
in
g
40%
Con
ntribution
50%
8
IT
60%
10
a
12
E&
E
70%
es
14
Pa
y
80%
er
ia
–
100%
16
M
at
E2/C2 Barriers-to-Success Factors
20
90%
in
g
Fre
equency
18
Poor Product Line behaviors:
Sta
20
•
Tra
Team Primary
concerns: Lack
of Material and
need for Training
M
ate
ria
l
E2/C2 Barriers-to-Success Factors
Contribution
E2/C2 Barriers-to-Success Factors
Product Line Specific Concerns
Ineffective communication with all the players
Inadequate Internal and External Supply Chain:
–
Not adequately postured to provision fleet needs
–
Local Manufacturing – this critical source is not agile
Level Loading
Reduce Setups
Create Flow
Create flow
Link Suppliers
Value Stream Map:
Understanding the current
process flow
TPM
Balanced Score
Card
Lean Production
Vision
Vision
We
Weare
arethe
the Leader
Leaderin
inE2
E2 and
and C2
C2innovative
innovativeaviation
aviationmaintenance
maintenance solutions,
solutions, committed
committedto
to
customer,
customer, workforce,
workforce, and
and community
community
Begin
Disassembly to
Assembly
Teaming process
Assembly Load
profile
established
Early material ID
and demand
process
FISC (Supply)
single supply
broker
Purge all spares
from all shops
and lockers
Medical
Surveillance
(organic and
contractor)
March
Complete
review of all skill
and certification
requirements
WarfighterWarfighter- Focused
Focused
Delivery
Delivery
4T’s (Right Tools,
Training, Tech
Data, Time) in
place
AIRSpeed Basic
Training
Complete
Improved
Technical
Training and
documentation
April
May
Customer
Customer
Significantly
reduce FOD
CostCost-wise
Aircraft RFT
and
Restored
Customer
Confidence
Improved
Product
Quality
Zero critical ADR
defects
Zero critical
DWO and QCN
deficiencies
Internal
Internal
processes
processes
Organizational
Organizational
Capabilities
Capabilities
Trained artisans
and technicians
R
Requirement
i
t
Improved
p o ed
Workforce
capability
Trained Support
Staff
Financial
Financial
Health
Health
Improved IT and
Software support
June
July
Warfighter-Focused
Warfighter-Focused
Responsiveness
Responsiveness
Reduce Variation
E2/C2 Barriers-to-Success Factors
100%
18
90%
16
80%
14
70%
12
60%
10
50%
8
40%
6
30%
4
20%
2
10%
Factory
Factory
Consistent
Consistentproduct
product
quality
quality and
and
reliability
reliability
Implement
Implement
Standard
Standard work
w orkand
and
Six
SixSigma
Sigma
Provide
Prov ide Airspeed
Airspeed
Training
Training (Lean,
(Lean,
TOC,
TOC,and
and Six
Six
Sigma
Sigma
Create
Createpartnership
partnership
with
with Engineering,
Engineering,
Quality
Qualityand
and
artisans
artisans
Budget
Budget and
and
invest
investin
in Airspeed
Airspeed
Training
Training and
and
support
support
Improved
Improved
w
orkforce
workforce
capability
capability
Autops
y
Create
CreateaaLean-cell
Lean-cell
and
and Skill-based
Skill-based
training
trainingand
and
certification
certification
Establish
Establish an
an E2/C2
E2/C2
University
University
Budge
t and
Budget
andinvest
inv est
in
inestablishing
establishing
Standard
ork and
Standardw
work
and
Six
SixSigma
Sigma
Forec
ast
IMA
C
Budget
est
Budge tand
and inv
invest
in
in establishing
establishingan
an
E2
E2 /C2
/C2 University
University
Warfighter Focus
Measure
“How
“How isisthe
the
current
currentprocess
process
performing?”
performing?”
Purchase
Orders Placed
Order & Track
Purcha
se
Orders
Placed
Receive &
Position
IIR/ACWT
Analyze
“What
“Whatisisdriving
driving
the
the current
current
performance?”
performance?”
Six Sigma Culture
IT
E&
E
Sof
tw
ar
e
Pay
Fe
ed
ba
Tec ck
h
Da
t
0%
M
a te
ria
l
Tra
in
in
g
Sta
ffi
ng
O
w
ne
Po
rs
lic
hi
y/
p
Pro
ce
du
0
Implement
Implement Lean
Lean
and
and Visual
Visual
Contribution
20
Improve
“What
“What solutions
solutions
would
would positively
positively
impact
impactcurrent
current
performance?”
performance?”
throughput
throughput
Long-term
Long-term Disciplined
Disciplined Actions
Actions
“What
“Whatcritical
critical
customer
customer
measure
measure should
should
we
we focus
focuson?”
on?”
Control
“What
“Whatcontrol
control
plan
plan will
willensure
ensure
improvement
improvementisis
sustained?”
sustained?”
Improved
Improvedproduct
product
flow
flowand
and
20
Define
August
Action Plan: Establishing new
behaviors
Frequency
Mission-Focused
Mission-Focused
Reliability
Reliability
Improved
product
Flow and
Throughput
Visual Factory
Implement
standard work
and SOPs for
every cell
Develop new
behaviors
concurrent with
new Cell flow
Eliminate
production
bottlenecks
POU Tools, equip,
PEB, Hazmat, TD
Other E2/C2
Kaizen events
Implement
Engineering,
Quality, Production
Teaming
Review,
measure, and
analyze current
cell behaviors
Determine level
off ttraining
i i
Forecast and
IMAC precedes
Pre-induction
Mission
Mission
Consistently
Consistentlydeliver
deliverquality,
quality, cost-wise
cost-wise ready-for-tasking
ready-for-taskingE2
E2and
and
C2
C2aircraft
aircraft to
to the
the warfighter
warfighter
E2/C2 Product Line Short Term Actions
Product Line Specific Concerns
Change Readiness: Understanding
the barriers to success
E2/C2 Product Line Path to Excellence
11
5/22/2009
E2/C2 Airspeed Phased Approach
Phase 1
Phase 2
Phase 3
Phase 4
Establish New
Behaviors
Synchronize Internal
and External Supply
chain
Reducing
Variation
Sustaining
Gains
Lean Focused:
Focused:
•6S
•VSM
•FISC - SingleSingle-Supply Broker
•Divest excess material
•POU environment
•Cell
Cell--based
•Visual Factory
•Standard Work
•Single piece flow
TOC Focused:
•Customer
–Induction rhythm –
workload leveling
•External
E t
l Supply
S
l
–NAVICP
–DLA
•Internal Supply
Six Sigma Focused
•Improve throughput and
Yield
–Hidden factories
–Defects
D f t
–Scrap
–Material delivery
–Process capability
–FISC
–Depot
•BOMS/BOWS - accuracy
–Right work
–Right place
–Right time
–Right people
–Right Quality
–Right Cost
Continuous
Improvement
Before Airspeed
•Lean-Sigma organization
•Cellular – lean
production
•ISO/AS9110
•War Rooms
–Production
–Material
–Admin
Before AIRSPEED
E-2/C-2 - Single Piece Flow
After Airspeed
Synchronized Pull system based on Fleet Flight line
Requirement
C2 S LE P E LE CTRICA L B UILDUP
85'
52'
40'
85'
85'
E 2 A S S E M B LY
C2 A S S E M B LY
41'
41'
37'
E2
E 2 / C2 DIS A S S E M B LY
E&E
E2
M E TA L
E&E
E LE CT
M E TA L
DITM CO
E LE CT
C2 S LE P
C2 S LE P
C2 S LE P
E LE CT
M E TA L
M E TA L
14'
75'
17'
C2 S LE P K IT CA G E
After AIRSPEED
12
5/22/2009
Before POU Tool
“The MUDA Pile”
POU Team Special Gear
POU Team Toolboxes
13
5/22/2009
Orange Cell – Designed for Orange Cell –
Disassembly and Kitting
Blue Cell Consumable Tool Vending Machine
Cell-Based Work Environment
E2/C2 Cell-Based Work Environment (CBWE)
Key Features: VISUAL FACTORY
Customer (TYCOM)
Input
•Assembly will be the “drum-beat”
•Entire Supply-chain will have to
react to that drum-beat
Disciplined Planning
JIT (RFT)
Delivery
Fligh
Flightt Line
Line
GB
•Moving line – balance the activity
of upstream activities tomatch the
drumbeat
MRT
MRT
•Measure individual cell
performance – reduce any
variation n
i cell yield (Six Sigma)
A cell based work environment is designed to deliver to customers' requirements. To do this, the cell
environment must have the appropropriate framework and support infrastructure that will support flow and
throughput. Critical to this is in making sure that all the logistics elements, cross-functional processes,
standard operating procedures, and performance measures are in place and available to the cell in order to
succeed. Finally, for CBWE to work, the framework and infrastructure must be organized and aligned in the
way work is actually done.
•Cell-based Staffin g
C2 S LEP E LECTRICA L B UILDUP
10 ILS
85'
52'
E& E
E2
E2 / C2 DISA SS EM B LY
M E TAL
E &E
ELE CT
M E TAL
DITM CO
E LECT
GB
40'
85'
85'
E 2 AS SE M BLY
C2 AS SE M B LY
41'
41'
Elements of a good CBWE:
37'
1. Workload is loaded according to customer requirements (right takt, cost, and specifications)
E2
Workload
Assembly Kitting
d uring Disassembly
C2 SLE P
C2 S LEP
E LECT
M E TA L
C2 SLE P 14'
M E TA L
75'
17'
Customer
Feedback
Cell Weekly 6S Inspections –
AIRSPeed Warrior Program
C2 SLE P K IT CA GE
Controlled Execution
QA Cell Audits
2. Visual factory environment - eliminates confusion and non-value added activities
p
of p
people
p to veryy specific
p
cell-based-work-sequenced
q
tasks
3. Focuses on availabilityy and competence
4. Mandates availability of required material - (synchronized supply chain)
5. Mandates the availability, access and suitability of cell-based tools, equipment, and consumables
6. Mandates the availability, access and currency of technical information
Engineering/Quality/Production Teaming
(LEAN/Sigma Team)
Continually measure the cell-based
work environment’s (CBWE) ability to
meet customer (quality, schedule,
cost) demands
CBWE Expectations:
•Perform all assigned tasks – Multi
(Skills, Trade, Schedule)
•Maintain and sustain all 4Ms –
SOPs/standard work
•Maintain certifications and licenses
•Quality at the Source – 3D’s (Don't
get it; Don’t make it; don’t Send it)
Moving towards a
fundamental Shift in
the way we deploy
our people
7. Focuses on throughput (first-pass yield) through simplified and sequenced standard work
8. Measures leading (CBWE process capacity and capabilitiy) and lagging (quality, cost and cycle-time)
metrics
9. Mandates the involvement of Engineering as the technical conscience, Quality as the process
conscience, and Production as the execution conscience
10. Focuses on customer target variations and in isolating root causes to these variations
11. Focuses on continual process improvement - "Follow the standards. Find a Better Way". In the
absence of a better way, follow the standards.
14
5/22/2009
E2/C2 Production War Room
E2/C2 M t i l W R
E2/C2 Material War Room
ADMIN War Room
NAMP Programs Overall Status
SE/Tools and Facilities
Manpower Training and IQR
CM – Tech Data Control
CBWE 6S Metrics
Safety
Quality
15
5/22/2009
Kitted Material
Kitted Material
EVAL
C2 PMI-3/SLEP/Rewire Cycletime
Performance
700
FY04
FY08
FY 04
FY 09
FY05
FY 06
350
C a le nda r D a y s
600
CalendarDays
500
400
300
EVAL
Actual
Spec
E2 PMI-2 Cycletime Performance
Spec
400
FY07
FY06
FY05
Actual
FY 07
FY 08
FY 09
300
250
200
15 0
10 0
50
200
0
100
E534 E535 E536 E537 E538 E540 E541 E542 E543 E544 E545 E546 E547 E548 E549 E550 E551 E552 E553 E554 E555 E556 E557 E558
Airspeed Begins- 5S
and Lean
The Good:
• 5S
•CBWE
•Single Piece flow
•Established new
good behaviors
CBWE, SPF and Supply Chain
synchronization Activities
The Good:
•Critical excess (locker buffers) eliminated
•BOM Accuracy
•Material forecast and IMACs – accurate ordering
•New DCNs added
•MFG Black belt
•Moved fixtured workload to Bldg 250
The Bad:
• DLA BB increased with BSM rollout; Back robs up
•Unplanned 7R failures (surface ftgs, flap actuator,
flap gearbox, landing gear)
•Tail surfaces delayed – bits and piece material not
available; Bldg 250 learning curve
N
73
1
N
73
0
N
72
9
N
72
8
N
72
7
N
72
6
N
72
5
N
72
4
N
72
3
N
72
2
N
72
1
N
72
0
N
71
9
N
71
8
N
71
7
N
71
6
N
71
5
N
71
4
N
71
3
N
71
2
N
71
1
N
71
0
N
70
9
N
70
8
N
70
7
N
70
6
0
Airspeed Begins- 5S
and Lean
CBWE, SPF and Supply Chain
synchronization Activities
Airspeed and Supply chain synchronization Activities
plus TOC
The Good:
•DLA BSM gets well – SMA effectiveness
improves
•Roadrunner implemented - TOC
•Production and Material War Rooms deployed –
early expediting and alternate material sourcing
•PMI spec discipline – focus on non-matl solutions
•Concert Program (AI) – Quality at point of
execution deployed
•Engines and props to Pt Mugu
•F2F IMAC and increased BOM accuracy
•Flights to sell improves – AoA BB; Assy/Testline
process integration
The Good:
• 5S
•CBWE
•Single Piece flow
•Established new
good behaviors
The Good:
•Critical excess (locker buffers) eliminated
•BOM Accuracy
•Material forecast and IMACs – accurate ordering
•New DCNs added
•MFG Black belt
•Moved fixtured workload to Bldg 250
The Bad:
• DLA BB increased with BSM rollout; Back robs up
•Unplanned 7R failures (surface ftgs, flap actuator,
flap gearbox, landing gear)
•Super Modules delayed - tail fitting failures and
Bldg 250 learning curve
Airspeed and Supply chain synchronization Activities
plus TOC
The Good:
•DLA BSM gets well – SMA effectiveness
improves
•Roadrunner implemented - TOC
•Production and Material War Rooms deployed –
early expediting and alternate material sourcing
•PMI spec discipline – focus on non-matl solutions
•Concert Program (AI) – Quality at point of
execution deployed
•Engines and props to Pt Mugu
•F2F IMAC and increased BOM accuracy
•Flights to sell improves – AoA BB; Assy/Testline
process integration
16
5/22/2009
E2C2 Logistics Supply Chain Management – Synchronizing the Supply Chain
E2/C2 NIIN Frequency of all E2/C2
Pu rchase Orders created since MPT/STP Cut over
1/24/2008
Synchronizing Supply Chain
Level Load
Induction
Schedule
(TYCOM
Distro
Meeting)
FISC, DLA, ICP
info PMA of
Material NonAvailability
PMA-231:
Lead, Monitor,
oversea overall
material health
Info Fleet of
Material nonAvailability and
Get well plans
N OT o n B OM s wi t h T r e nd l i n e s
2000
Over twe nty, 36 0, 5 %
Te n to Twe nty, 46 4, 7 %
2004
1800

2005

2006

2007

C2 S LE P E LE CTRICA L B UIL DUP
Nin e, 8 6, 1 %
Eigh t, 113 , 2%
Seven , 15 5, 2 %
1600
Focusing on the Risk
On e Hi t: 1 R/7R, 168 , 2%
1400
Si x, 180 , 3%
1200
Fi ve, 2 70, 4%
BOM
universe of
potential
requirements
On e Hi t: 9 C og, 166 3, 24%
324 5 Line Ite ms
46%
One Fr e que ncy
Fo ur, 3 61 , 5%
Material
Available
One Hit: Cre dit Card , 49 3, 7 %
One Hit: Focus Store, 124 , 2%
Thre e, 6 19, 9%
1000
800
600
One Hit: Lo cal Man, 720 , 10 %
400
One Hit: Lo cal Purch ase, 77,
1%
200
Two , 11 49, 16%
0
De
62% of all E2/C2 Purc hase Orders les s then two Hits
Fe
Ja n
c
A c ftN O T o n B O M
Two
Three
Four
Fi ve
Six
Ten to Twe nty
Seven
Ove r twen ty
Eigh t
On e Hit: 1R/7R
Ni ne
On e Hi t: 9 C og
One Hit: Cred it C ard
One Hit: Fo cus Sto re
On e Hit: Loca l Man
On e Hi t: L ocal Pur ch ase
Expedite
or
alternate source
procurement
Ma r A p r Ma y u
J n
b
Au
Se
g
p
No
De
v
c
Fe
Ja n
Oc t
Ju l
Ma r
A p r M a y Ju n
b
Au
Se
g
p
u
J l
No
De
v
c
Oc t
Ju n
Fe
Ma r A p r M a y
Ja n
Au
Se
Ju ly
e
b
No De
Oc t
g
p t
Fe
Ja n
v
c
Ju n
Ma r A p r Ma y
b
Au
Se
g
p t
Ju yl
e
No
De
Oc t
Fe
Ja n
v
c
Ma r
A p Ma y
b
6 9 0 7 07 8 3 4 1 2 6 8 7 4 8 6 9 7 8 8 5 7 1 6 9 1 5 8 4 507 6 4 2 4 7 7 7 9 4 5 5 9 7 6 0 7 4 4 7 7 6 8 3 8 2 4 7 4 8 6 05 5 3 3 4 3 4 3 3 0 2 9 0 8 2 6 1009 9 04 9 3 1 9 8 7 6 8 1 8 6 1 7 8 4 8 06 6 5 5 9 5 6 8 1 8 3 2 9 8 6 8 5 1 7 5 8 7 5 6 8 1 7 83 7 3 06 1 5 3 8 1 5 3 5 4 5 8 6 8 3 7 7 7 1 7 6 7 6
4 7 5 4 8 4 8 8 5 7 2 4 3 4 4 6 4 4 9 1 5 1 5 5 4 7 3 6 8 304 2 9 2 3 2 3 3 01 3 1 8 3 5 3 3 2 9 2 4 6 3 8 2 2 0 2 3 9 2 1 9 2 1 8 1 9 4 1 6 4 2 3 3 2 2 6 32 1 2 7 1 4 04
3 4 0 2 8 8 3 3 2 2 9 0 2 8 6 1 8 1 8 8 2 3 2 3 2 3 3 08 2 5 2 2 6 9 2 5 1 2 3 9 23 4 2 3 4 2 6 4 3 00
1 9 7 3 4 5 3 8 9 3 4 4 4 1 4 2
C o mp N O T o n B O M
Critical Material
not
Available
A lP g msN O T o n B O M
1 1 6 9 8 1 3 2 1 8 3 1 3 0 1 3 3 1 2 7 1 08 1 2 3 9 5 2 81 1 9 3 4 8 00 1 09 8 7 7 1 1 1 1 07 1 02 1 2 1 04 9 8 7 8 2 4 7 5 1 6 2 8 4 9 4 5 2 3 1 05 13 3 1 1 7 1 3 3 1 3 2 9 6 9 1 1 9 1 07
1 09 8 4 7 8 3 9 1 3 1 1 5 1 2 9 1 1 0 1 02 1 007 1 05 107 5 4 0 1 7 9 1 1 1 5 5 1 9 3 1 1 2 2 1 1 1 1 1 1 1
Acf t NOT onBOM
Comp NOT on BOM
Al l Pgms NOT on BOM
Li near (Al l Pgms NOT on BOM)
Li near (Acft NOT on BOM)
Li near (Comp NOT on BOM)
SBT 8Qtr
Material
Forecast
FISC, DLA,
ICP
Review
Striving for earlier identification of the requirement in the production sequence
C2 Purchase Order Trends
PreInduction
IMAC
Report
Induct
aircraft
85'
52'
E 2 / C2 DIS A S S E M B LY
M E TA L
E&E
E L E CT
M E TA L
4 0'
DITM CO
E LE CT
8 5'
8 5'
E2 ASSEM BLY
C2 A S S E M B L Y
41 '
41 '
37'
E2
E&E
E2
C2 S LE P
C2 S LE P
C2 S LE P
E LE CT
M E TA L
M E TA L
14 '
75 '
17 '
N71 6 P urc ha se Order Tre nds
25 0
Pu rc has e Or der s
20 0
M on th /Yea r
9/3 0/05 Induction
10/12/05 Disassembly
15 0
C2 S LE P K IT CA G E
1/17/06 E& E Sta rt
10 0
Source
and
Provision
3/10/06 E& E End
8/28/ 06 A ssembly
50
5 /1/07 Log S ell
N71 8 P urcha se Order Tre nds
0
Ju n- 07
Ju l-0 7
Au g- 07
Se p- 07
No v- 06
De c- 06
Ja n- 07
F eb -0 7
M ar -0 7
Ap r-0 7
M ay- 07
M ar -0 6
Ap r-0 6
M ay- 06
Ju n- 06
Ju l-0 6
Au g- 06
Se p- 06
Oc t-0 6
Oc t-0 5
No v- 05
De c- 05
Ja n- 06
F eb -0 6
3 00
6/15/ 06 n
I duction
6/26/ 06
Purc ha se O rd ers
Purc has e Ord ers
2 50
8/15/06 E&E S tart
M on th/Ye ar
2 00
9/15/06 E&E End
1 50
4/26/ 07 Assembly Star t
1 00
8/17/07 Log S ell
50
0
Ju n- 07
Ju l-0 7
Aug -0 7
Sep -0 7
Oct- 07
De c-0 6
Ja n- 07
F eb -07
M ar -07
Apr -0 7
M ay- 07
Ju l-0 6
Aug -0 6
Sep -0 6
Oct- 06
No v-0 6
Ju n- 06
C2 Inventory Material Availability Conference (IMAC)
Source of Supply (SOS) Compared to Net Availability
Purc has e Orde rs
3000
DLA/FISC
Expedite
Non-Avail.
100%
90%
2500
50%
40%
1000
FRC Product Mgr
30%
1000
800
Com po n en
n ts
60%
1500
% of Av ailability
Line Chart
T
Team
C
Coordinator
di t
FRC Info
Technology
G Com p one nt by Prog ram
80%
70%
Trend Line
2000
Line Items
Stacked Bar
S
Team Members
20%
500
600
400
10%
0
Demand
Planner
MISC
BOM Team Leader
FISC Inventory
Control
N718
N719
1
4
N720
2
N721
N722
4
3
N723
10
N725
200
0%
0
13
Ot her
S uppo rt S yst e ms
MAN UF (LLM)
NAVICP 7R/1R
Forecast Mgr
293
308
309
227
229
231
300
211
514
243
420
262
717
196
205
205
209
268
236
207
DLA All Cogs
921
964
964
849
1055
1050
1204
Net Availability
90%
82%
82%
87%
91%
3/07
5/07
7/07
87%
85%
S H-6 0 / H- 2
S -3
291
FOCUS LLN D
7/06
10/06
1/07
45
5
0
Feb
Mar
0
28
4
0
5
0
A pr
0
5
0
Ma y
Jun
30
30
5
1
J ul
37
0
1
2
4
5
0
0
1
6
5
4
7
0
6
5
5
5
6
0
3
2
1
3
8
0
11
H1
F/ A -18 CD
E 2 C/ C2
A ug
Se p
Oc t
Nov
Dec
39
29
39
41
37
1
1
8
6
7
E A -6 B
406
Net Availability: Standard stock availability
J an
P -3
H-5 3 / H- 3
H4 6
0
1
0
1
1
0
0
0
0
0
288
278
3 55
406
364
37 3
401
39
54
58
59
5
4
4
10
4
12
16
17
18
24
4
80
Feb
Mar
A pr
30
27
27
2
2
0
0
8
4
89
5
0
0
8
0
47
J an
2
0
0
7
0
0
0
0
6
32
13
4
79
1
0
1
0
0
0
0
0
0
17
18
17
13
4
3
3
30
12
12
4
60
0
0
0
0
0
0
0
0
0
378
424
381
377
3 54
305
2 16
16 2
1 54
5
5
5
5
6
20
22
14
12
26
27
4
5
27
IMAC Source of Supply (SOS)
0
0
0
6
5
22
25
Receive
and Store
Date
NAVICP Rep
FISC Industrial
Support
Mater
Comp Materi ial Usage
onent al Contr
Induc ol
tion
Receive and
Position
eive
Rec us
Foc
Kits
Receive &
Position
Dock to Stock
G-Condition
Analyze
& Revise
Performance!
40
FY08 E2C2
Immediate Issue Rate
1
90.00%
0%
2006

2007
MPT-STP I mpl ement ed
0

2008

Immediate Issue Rate
80.00%
6%
3
60.00%
19%
62%
50.00%
0.
5
0.5
Bill Of Material
0
JUN JUL AUG
SEP
OCT NOV
10
FISC
5
0
Oct- Nov- Dec- Jan- Feb- Mar- Apr- May07
07
07
08
08
08
08
08
39
36
25
19
30
24
31
22
Spares
-Review History of Sales
-Demand Trend Analysis
Fai r
M AY
Supply
20
Days
70.00%
Poor
Very Good
Execell ent
1
Depot
Retail/Wholesale 8 Qtr Forecasting
Unsatisfactory
2
1.
5
1.5
Oct- Nov- Dec- Jan- Feb- Mar- Apr- May07 07 07 08 08 08 08 08
74% 68% 70% 82% 55% 71% 87% 71%
PMA-231
35
15
0.4
0.2
E- 2 / C - 2 B OM A c c ur a c y
Did the Representative demonstrate initiative and tenacity in resolving your issue?
What was your overall level of satisfaction with F RCSW Supply?
3.
5
3.5
30
25
0.8
0.6
E2/C2 Customer Surveys Trends
Customer Service Su rvey
–
Was someone available to assist you at the time needed?
–
How would you rate Supply's ability to process requirements in a timely manner?
–
Did the items or services acquired meet your needs?
–
How would you rate the overall knowledge and competency of the representative?
–
Did the Representative maintain a positive and courteous attitude during
4.
5
4.5
2.
5
2.5
Replacement
Factor
Unit Per
Assembly
40.00%
DEC JAN FEB MAR APR M AY
x
BOM
May 2008 Outstanding R equisiti on By Age
(E2/C2 Progra m)
Adjusted
Schedule
N0244 included,
previ ousl y only
N65888.
1000
900
x
800
30.00%
700
600
-
20.00%
$$ DLA
Wholesale
10.00%
GDP
Apr May June J uly
Aug Sept Oct
Nov D ec J an
Feb
Mar
A pr M ay
Jun e July
A ug S ept
Oct
N ov D ec
Jan
Feb M ar
Apr
0
79 . 7 7 8. 0 7 9 . 5 78 . 4 78 . 2 7 9. 0 81. 1 79 . 3 7 9. 9 8 1. 6 81. 7 8 1. 9 7 7. 3 77 . 1 70 . 6 7 8. 7 81. 9 69 . 1 7 7. 47 0. 0 80 . 0 7 5. 18 4. 8 77 . 9 72 . 0 7 5. 07 7 . 2 72 . 6
61. 7 5 9. 8 6 1. 3 59 . 0 60 . 0 6 6. 2 65 . 2 65 . 0 6 3. 3 6 4 . 9 64 . 3 6 5. 26 3. 1 61. 5 59 . 9 6 4. 3 63 . 4 60 . 7 6 3. 26 2. 6 68 . 5 6 0. 87 3. 4 68 . 3 63 . 8 6 5. 76 7 . 6 69 . 4
300 +Days
181-300 Days
Qtrs 3 to 8
DLA and
NAVICP
Local or
outside
Mfg
sources
Back-rob
or other
expedite
actions
200
100
BSM/CDD Req
M ay
E -2 / C- 2 A/ C Pr og
A lA / C P rog
Focus
Stores
300
Calculated Req
Feb M ar
500
400
$$ BP-28 Buys
Retail
0.00%
Qtrs 1 & 2
6-Oct
52
111
6-Nov
53
146
6-Dec
58
156
7-Jan
81
150
173
7-F eb
108
196
91-180 Days
198
176
188
31-90 Days
205
203
243
167
133
0- 30 Days
196
268
154
294
254
208
7- Ma r
134
140
172
7-A pr
128
124
164
201
2 20
261
2 49
0-30 Days
7-M ay
114
160
126
7-Jun
136
142
137
169
150
193
283
31-90 Days
7-Ju l
70
99
135
7- Aug
58
99
141
157
149
161
205
91-180 Days
S ep-07
Oct- 07
325
Nov- 07
Dec-07
Jan-08
Feb-08
M ar-08
A pr -08
M ay- 08
306
300
299
3 00
241
22 7
150
149
85
84
84
83
98
126
136
128
123
122
116
98
81
135
129
122
111
110
83
94
43
48
158
211
175
168
149
183
78
211
113
181-300 Days
83
99
56
62
36
300+Days
High Performance Change Enablers
E2/C2 Performance Enablers
•
Roadrunner – Daily and Weekly Production War Room meeting with Cell Champions
•
Bi‐weekly customer communications – Leadership and Triad phonecon
•
Daily and Weekly Supply Chain communications – Fully Operational Material War Room
•
•
Healthier Supply Chain via Synchronization Efforts with all stakeholders BOM Accuracy and Induction Material Availability Conference (IMAC) – rigorous review
•
Si l i
Single piece flow (SPF) and Cell‐based Work Environment
fl (SPF) d C ll b d W k E i
(CBWE) Quality at the (CBWE) ‐
Q li
h
Point of Execution – Artisan Inspectors (AI)
Shingo – Accelerated LEAN improvements and leveraged the award submission to align resources and support
•
Cross Functional
Team Conduct
Autopsy on Log
Sold Aircraft
s
Sch
Bill edu
Arti of le
Mat
Bus san
eria
ines
l
s Rule
Induct and
Control
Order and
Track
Induction
& Control
13%
FISC (SingleSupply Agent)
obtain material
Inv
Tra ent
Exp ck ory
edi Ord Ord
te er
er
lysis
Ana lysis
Lined Ana iew
Rev lysis
Prod Ske
BOM Ana
rial
Mate
Order &
Track
Material
Source
Solution
Team
(MSST)
Forecast
Analyze and
Revise
Forecast
BOM Team
Integrated ADP
FY08 Average Customer
Wait Time
–
–
Deliver over and
above repair
material and
load assembly kits
IAW Cell
Standard Work
Current Industrial Enterprise
DLA Rep
FISC Product
Support
4
Build Assembly Kits
during Disassembly ;
ID and order
Assembly and over
and above material
requirements
•
•
Bi‐monthly Financial and Quality Reviews
5S +1
•
•
•
Execution Discipline – Being good and staying good with the basics
Developing a culture of always on the lookout for NVA activities
Communication, Communication, Communication, Communication
• Clarity of Purpose – Understanding of mission and reason for existence; A Higher Moral Purpose
• Values based – understanding the burning platform; sense of urgency
• Customer (Warfighter) focused – Understanding and fulfilling their needs
• Responsive, effective and efficient ‐ Delivering just what the fl t
fleet needs ‐
d
–
–
–
–
Planning the work – with the customer
Packaging the work – with production and production partners
Processing the work – in a disciplined way
Enabling the work – to ensure capabilities are healthy
• People focused
– Building the capability and capacity of people
– Creating an environment where people can thrive and innovate
– Respecting each other
17
5/22/2009
E2/C2 Lean Journey: Results
•
•
•
•
•
•
Quality:
– Flights to sell ‐ C2 from 7 – 2.2; E2 from 4 to 2
– Critical ADR’s – Zero over the past 2.5 years
Labor hours: – C2 PMI‐3 reduced by 11%; E2 PMI‐2 reduced by 14%; E2 PMI‐1 reduced by 80%
Cycle time:
– C2 PMI‐3 from 475 to 330 ; E2 PMI‐2 from 265 to 180
M
Material buys:
i lb
– Reduced material requirements by 60% through use of non‐material solutions and supply chain synchronization efforts; application of Material War Room
Safety:
– Zero mishaps; zero lost days in FY08
Financial Results:
– $3.0M better than plan in FY08 – 3.68M better than plan in FY09 ytd
2008 Shingo Medallion Silver Operational Excellence Award Winner
Summary
• Cultural change - Transformational
• Behavior changes – attitudes and habits
• Single fleet driven metric – (FLE/RFT) – drumbeat
• Physical Transformation
• Standard Work – BOM/BOW accuracy
• Cell-based work environment
• Single piece flow – synchronized with the FLE/RFT
• Supply chain synchronization – open and honest
communication
• Quality at point of execution – 3D Quality (Don’t get
it; Don’t make it; Don’t send it)
18