August 3 - UTC Aerospace Systems

Aerostructures
August 3, 2016
Vol. 26, No. 26
Dropping the number of days inventory is on hand from 30 to about a dozen
With an eye toward “less is more,” Aerostructures’ Mexicali site
battles excess inventory from its largest supplier… and wins
(Continued)
These “before and after” photos illustrate one way that the Mexicali site has been able to make significant efficiency
improvements as part of a “Plan for Every Part” initiative with Castle Metals, the supplier of about 80% of the facility’s
detail parts. In the photo at left, Kitting Fabrication Group Leader Ana Delgadillo removes the heavy plastic shrink wrap
on brackets (see inset) used in the A320neo nacelle system. Before the Plan for Every Part initiative was launched, the
brackets were packaged this way by the supplier – the shrink wrap had to be removed before the brackets could be used
on the production line. The way the brackets arrive today – unwrapped in a point-of-use container, requiring no unwrapping and eliminating the need to deal with excess packaging – is pictured at right. Through the initiative with Castle
Metals, a team at the Mexicali site was able to reduce the cost of inventory on hand by two thirds and drop Days on Hand
from 30 to just over a dozen. At the same time, Castle Metals was able to reduce its costs and cycle times, making the
initiative a win/win proposition. In addition, reducing packaging offers an environmental benefit, with less material
going into the waste stream.
Editor: ext. 3635 / [email protected]
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Managing inventory from suppliers is one of the more difficult and involved balancing acts a business can do.
It’s easy to over-simplify it into a Goldilocks-like exercise of “not too much, not too little, but just right.” But it’s
no fairy tale. Carrying excess inventory can cost a company millions and having too little can bring operations to
a grinding halt.
That’s why the company has put such a high priority on inventory management and made it part of the Standard
Factory Assessment (SFA). It’s also why leadership at Aerostructures’ Mexicali plant worked with one of the site’s
major suppliers to see if they could develop scalable methods of managing the flow of parts that other UTC
Aerospace Systems sites could leverage.
“Challenge your suppliers to help you in eliminating waste.”
“The Standard Factory Assessment – which measures each organization’s rate of progress in maturing in 10 areas
of focus, including layout, flow and linkage, Standard Work and visual management and control – devotes an
entire column to materials management through ‘A Plan for Every Part,’” according to Mexicali General
Manager Jose Caballero. “To advance up the SFA Matrix, organizations must be able to show examples of
working with suppliers to establish lean material flow. Late last year, we decided that we would create an
initiative focused on inventory and materials presentation.”
The task of managing that initiative fell to Rene Ramirez, who joined the Mexicali team last fall as Senior
Campus Material Manager.
Making the supplier part of the extended team… and the solution
“During my first weeks at the company, I was requested to identify opportunities for inventory and materials
presentation,” said Ramirez. “We had enough data to designate Castle Metals as our top opportunity because
they supply about 80% of the detail parts that we use across multiple programs. We formed a team that included
a materials engineer, our raw material coordinator, our production control team leader and planning manager,
and me.”
The group set December 2015 as its baseline. At that time, the Mexicali site had 30 days’ worth of inventory from
Castle Metals on hand… about $1.8 million worth. Using the principles of Line Back Logistics – working backward from the production line to the supply chain, ensuring that all elements of delivery are providing materials
just in time, using the minimum amount of inventory possible – the team set out to synch deliveries of material
from Castle Metals with the needs of the production line. That meant bringing employees of the supplier into the
Mexicali plant, visiting their site, and generally making them part of the extended team… and the solution.
“Getting Voice of the Customer input from both Castle Metals as well as our internal kitting operators – the
employees responsible for gathering components and parts needed for the manufacture of a particular product
together as kits – was a good starting point. We followed that with time observations of their packaging and
shipping processes, as well as the Mexicali site’s receiving, kitting, and line supply processes,” Ramirez said.
“Material presentation to the line was a major opportunity.”
Working with the supplier was facilitated by the fact that Castle Metals had relocated the portion of its operation
that supplies the Mexicali plant across the street and less than a mile away from the Aerostructures location. That
close proximity didn’t have much, if any, impact at first, however.
“Even though they have been situated closer to us for more than a year, nothing at all changed initially. They just
moved from California to Mexicali and continued to send us the same products in the same packaging and
containers,” Caballero said. “There was no real advantage to having them next to us until this project was launched.”
Once Castle was engaged with the Aerostructures team, things began to change quickly. This started with the
packaging of parts, which used to arrive wrapped in plastic and/or paper and mounted on cardboard.
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The 5R’s
Ramirez said the team followed the “surgeon/nurse” principle. Just as you would want the surgical team operating
on you to have every instrument and necessary medical supply at hand and ready for use, Aerostructures’ goal
is for operators on the assembly line to be able to reach for a part that was delivered by a supplier just before
they needed it and in the order they needed it.
“We focused on achieving the 5R’s for parts – Right Time, Right Quality,
Right Place, and Right Quantity at the Right Price.”
“We began to receive the materials without the packaging material in the actual container that we use to process
the parts on the shop floor,” Ramirez said. “We focused on achieving the 5R’s for parts – Right Time, Right
Quality, Right Place, and Right Quantity at the Right Price.”
Not all the improvements were on the Castle Metals side. The supplier’s improvements were harmonized with
changes made on the Mexicali shop floor.
“Our kitting operators now receive the material without the plastic wrap, craft paper and masking tape that we
used to receive,” Ramirez said. “We revisited the layout of the kitting area, adding visual controls. We also
recently acquired new equipment to replace a manual activity that was not ergonomically friendly with an
automated one.”
With changes in place, the team began a validation loop that continues to this day.
“We created two different transportation prototypes in advance of our chosen Go-Live date of June 10. We performed
a pilot run, evaluated, re-designed, and then tested again. This process continues today,” Ramirez added.
How successful has the effort been? Two key performance indicators that the team has tracked throughout the
project offer the most dramatic evidence. Days on Hand of inventory fell from 30 days in December to just over a
dozen by mid-June. Meanwhile, the value of the held inventory was slashed from $1.8 million to about $623,000,
a reduction of about two-thirds.
“In addition to reducing inventory Days on Hand and liberating cash that had been held in inventory, close
behind in terms of success stories is the presentation of materials to our operators. These improvements help to
reduce cycle time on our products,” Caballero said. “Before, our operators had to unwrap the part, dispose of the
cardboard, dispose of the plastic. Now, they just get a container with parts ready for use.”
As a result of the initiative, Caballero has a couple of lessons learned for others who are embarking on a Plan for
Every Part journey.
“Don’t be shy about asking your suppliers questions, such as why you’re receiving goods from them with so
much packaging. Challenge them to help you in eliminating waste,” he said. “Also, look outside your own four
walls to see what opportunities are out there. There are people who can help you, but you have to articulate
what you want. And you have to really connect with your suppliers to realize the true benefits. Having Castle
Metals nearby was good, but it wasn’t until this project that things really changed. They used to send us 30 days’
supply of inventory, which wasn’t acceptable coming from a supplier so near. Now they send us five days’
worth. Our goal is to get them down to one.”
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Because
You Asked
Skylines thanks Chula Vista Facilities, Maintenance
and Utilities Manager Paul Sackos for his assistance
with this week’s question.
I’ve noticed a lot of construction activity taking place at
certain Chula Vista plant entrances. What’s the purpose of
this project?
The Chula Vista facility is implementing some heightened security measures.
More than 2,000 badged employees and long-term
contractors enter the campus on a typical day.
Identifying who’s on the campus at any given time is
essential in the event of a plant emergency, and also in
meeting many of the new International Trade
Compliance (ITC) standards. To ensure this required
information is available, swing arm vehicle gates
activated by badge readers are being installed at three
major entry gates at the Chula Vista site. The swing
vehicle gates are being installed at the north entry at
Lagoon Drive, the east entry between Buildings 29
and 99, and the west entry through Gate 66. A badge-activated security turnstile will also be installed at the
south entry through Gate 25 at H Street.
Not only will these measures provide a record of all facility entries and exits, they will also help protect the site
from unauthorized access by individuals with expired badges. In addition, these measures will enhance visual
identifications by security officers at the main points of entry, enabling security officers to concentrate on visitors
and other exceptions without impeding the flow of authorized employees.
Installation of a swing arm vehicle gate has begun at the east entrance between Buildings 29 and 99. Work has
also started on the badge-activated security turnstile at the south entry through Gate 25. Work will begin at the
north entrance at Lagoon Drive during the three-day weekend that includes the Monday, Aug. 8 furlough day.
The estimated completion date for the entire project is Aug. 31.
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Interns from Chula Vista and Riverside get glimpse into the
possibilities their futures with the company may hold during
July 20 networking event
Riverside Staff Materials/Structures Engineer Samadi (Sam) Yoeuth has been offered many opportunities that
have resulted in “amazing experiences” while working at Aerostructures. Last month, she had the chance to give
a group of Riverside and Chula Vista interns a glimpse into the possibilities their futures may hold as they begin
their associations with the company.
“One of the opportunities the company has to offer is working with top-notch industry professionals,” she said.
“In addition, working with all of our global sites and suppliers is a cultural learning experience. What’s more,
there’s mobility – lots of opportunities within the company to challenge yourself. Finally, you’re able to get involved
in shaping the company culture through Employee Resource Groups. For example, you can get engaged in
leading and organizing various events, supporting the community, and growing awareness of STEM (Science,
Technology, Engineering and Math) career opportunities to students through educational outreach events. Best of
all, you can do all of this while having fun!”
Sam was able to share these personal experiences with 10 Riverside interns and 45 from Chula Vista on July 20 at
a special networking event at the Chula Vista facility.
What was the genesis of the event and its goals?
In their shoes
“Each year at the end of the summer, we ask our summer interns to complete a survey based on their experience,”
explained Riverside Senior Human Resources Generalist Deanna Mayhugh. “One bit of feedback we heard last
Summer interns from Riverside visited the Chula Vista site last week to learn more about the Aerostructures headquarters
facility, network with their counterparts in Chula Vista, and listen to presentations from former interns about the
opportunities open to them at Aerostructures. “Networking is huge when you’re an intern,” said Chula Vista Senior
Human Resources Generalist Kristie Borjesson, a former intern with the Pratt & Whitney AeroPower business, who
was a guest speaker at the event. “Getting to know others who are at a similar point in their careers not only provides
support and encouragement, it allows for people to build a professional network of contacts.” Pictured above at the
July 20 event (in the foreground, from left to right) are interns: Daniel Carrete (Chula Vista); Angela Escobedo (Chula
Vista); Jessica Gonzales (Riverside); and Edgar Pahua Arango (Chula Vista).
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time from our Riverside interns is that, because they hear a lot about the Chula Vista facility and interact a great
deal with Chula Vista employees via email/phone, they would like to learn more about the site and what it’s all
about. So I reached out to Chula Vista HR Manager Deborah Cegielski and suggested conducting a day-long
event where the interns from both facilities could interact. The thought was that we could also have some guest
speakers, as well. Deborah was very supportive, so Chula Vista HR Staff Coordinator Tafeana McKray and I put
the event together.”
The day began with introductions and a visit to the Chula Vista Customer Center for an up-close look at
Aerostructures’ products. Next on the agenda was guest speaker Kristie Borjesson, a Chula Vista Senior Human
Resources Generalist, who discussed her journey in transitioning from intern to direct hire.
“I was very excited to share my story, as only two years ago I was in their shoes as an intern with Pratt &
Whitney AeroPower,” said Kristie. “My advice to them was to challenge yourself. It may sound like a cliché, but
an internship truly is what you make of it. If you’re open to being challenged, pushed to your limit, and ‘uncomfortable,’ you really will excel and jump start your career.”
After lunch, an opportunity for the interns to interact with each other, two additional guest speakers – Sam
Yoeuth and Riverside Materials & Processes Engineer Zachary Bowman – addressed the interns.
Based on the interns’ feedback afterward, the event was one of the highlights of their internship experience.
Ecstatic
Noted Louis Leonardi, who’s interning in Riverside’s EH&S (Environment, Health & Safety) department: “The day
was fun and interesting. The event provided both myself and the rest of the Riverside interns an opportunity to
not only connect with the interns in Chula Vista, but also strengthen our bonds with each other. One of the main
things I learned from the guest speakers was that these internships are designed to challenge us. It’s okay to feel
a tad overwhelmed by the magnitude of our projects because they allow us to develop skills that we may have
never used before.”
Commented Chula Vista Aftermarket intern Mylene Macias: “In my two prior internships with UTAS, I always
felt like there was a shortage of opportunities to network with interns from different departments, so I was
ecstatic about this event. What HR planned for us delivered on my expectations – the presentations were useful
and there was plenty of time to become acquainted with the other interns. The chance to talk to people that are
having the same experience as I am helped me develop a sense of belonging at UTAS. This event has become one
of the highlights of my internship. The speakers did an excellent job of being relatable; they were strong examples of people that were successful in their fields, yet were not far removed from the internship experience.”
Jacqueline Swift, a Riverside R&D intern, also found great value in the connections she made during the event.
“The highlight of the event for me was probably the time spent talking to the other interns about the projects
they are working on, where they go to school, and the types of degrees they are pursuing,” she said. “I’m originally from the Midwest and go to school in Chicago, and I found a couple of other interns from that area. I really
enjoyed talking to them and hearing how they got their jobs so far from home! One insight I walked away with
is don’t be afraid to speak your mind and suggest improvements, even if it’s not something that affects your
value stream.”
Event co-organizer Tafeana McKray concluded that the initial Chula Vista-Riverside intern get-together provided
much food for thought for future events of a similar nature.
“There were some interns who came up to us during the event, thanking us for coordinating it – one intern even
publicly thanked us in front of everyone at the end and we got a loud round of applause,” she said. “Even after
the event was over, a few of the interns emailed me or stopped by my desk to tell me what a great time they had.
We had a lot of fun and I’m looking forward to doing this again next year and making it even better.”
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Spotlighting Aerostructures’ Employee Resource Groups
“The Early Professionals Organization has enabled me
to meet people I may not have crossed paths with
otherwise”
The company’s emphasis on maintaining a diverse workforce applies not only to efforts to attract and
retain top talent throughout the business… it also extends to providing employees ways to connect and
network with others in the organization. One of the ways in which UTC Aerospace Systems facilitates
those connections is through its support of Employee Resource Groups (ERGs). This week, Skylines
continues its ERG profiles series by focusing on Chula Vista’s Early Professionals Organization (EPO)
ERG.
Year established: 2011
Mission: To promote sustained employee engagement and development through community outreach,
social and professional networking, and learning opportunities.
Current membership: 423 employees are on the EPO distribution list
Examples of group activities/projects:
n STEM (Science, Technology, Engineering, Math)
Career Fairs
n Charity drives for people in need
n Environmental cleanup activities
n Lunch and Learn professional development
seminars
n Educational outreach events
Member quotes:
“The EPO has enabled me to meet people I may not have crossed paths with otherwise. Starting a career at a large
company like UTC Aerospace Systems can be overwhelming… EPO was especially beneficial early on in my
career when I barely knew anyone.” (Aftermarket Global Supply Chain Administrator Brian Testa)
“The EPO holds professional development seminars at which company leaders are able to explain the different
career paths/options available within the organization. This information is great for those who are still building
their skills foundations and deciding which direction they want to take their careers.” (Fire Reliability and
Safety Engineer Justin Trinidad)
For further information about joining the group/establishing a local chapter, please contact:
n Early Professionals Organization, [email protected]
n HR Diversity and Inclusion Focal Allen Tai (email or x2033)
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Aerostructures team wins UTAS 2016 Inclusion Video Contest
“I think the concept was simple, we come in all shades and
sizes”
Inclusion: the addition of somebody or something to, or the presence of somebody or something in, a group or
mixture
“While we may have our unique differences, when united with a
common goal, we can make an impact. Including individuals with
different backgrounds, ideas and interests is an underlying advantage
for our business.”
Planning and executing the filming of the first-place entry in the UTAS 2016 Inclusion Video Contest was a group
effort for the members of Chula Vista’s Employee Professionals Organization (EPO). “I was impressed by the willingness of so many of our members to play an active role,” said Project Engineer Erik Van Esselstyn. “Everyone was
excited to participate in this project.” In the photo above, several EPO members view the winning video as a group,
including (from left to right): Nancy Tran; Travis Frazier; Lindsay Steenstra; Tayelor McKay; Shawn Mailo; Erik Van
Esselstyn; Jennifer Davis; Brooke Pfan; Elijah Lassiter; Michelle Kwong; and Justin Trinidad. A350 XWB Equipment
Engineer and EPO member Edwin Noriega (not pictured) served as producer of the video, spending many personal
hours editing the footage.
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Although “inclusion” may be simply defined in the dictionary, the real-world application of the practice in the
workplace can a challenge to successfully execute. But UTC Aerospace Systems employees demonstrate inclusion every day through their collaboration, teamwork and open embrace of diverse ideas. To give members of
the workforce a chance to showcase their efforts to create an inclusive workplace and share what makes them
feel welcome and included as part of the UTAS community, the company launched the 2016 Inclusion Video
Contest.
”I hope this video inspires others to be more involved in the workplace
and Employee Resource Groups (ERGs). I think it helped shed some
light on what an ERG does and the type of people that are involved
in them.”
Videos came in from both individuals and teams, from all levels of the organization and from across the enterprise. And after a review panel comprised of employees from various locations and functions viewed and rated
each video for creativity, technical quality and clarity of message, Aerostructures’ own Early Professionals
Group’s (EPO) entry was judged the best.
The team not only created a storyline that effectively demonstrated inclusion in action at the Chula Vista site,
they featured their membership as the stars of the video… members like Dontay Young.
Inclusive within the workplace, as well as outside of it
“I think the concept was simple, we come in all shades and sizes,” said Young, Design Methods and Standards
Manager. “While we may have our unique differences, when united with a common goal, we can make an
impact. Including individuals with different backgrounds, ideas and interests is an underlying advantage for our
business.”
Added Supply Chain Buyer and EPO chair Nancy Tran, who describes herself as an advocate for diversity and
inclusion within the organization: ”I hope this video inspires others to be more involved in the workplace and
Employee Resource Groups (ERGs). I think it helped shed some light on what an ERG does and the type of
people that are involved in them. We were also careful to include snippets of activities both inside and outside of
work to show that our member base is inclusive within the workplace, as well as outside of it.”
Tool Design Senior Engineer Aron Zifko agreed with Tran’s sentiments about the emphasis the EPO places on
promoting diversity and inclusion.
“Everyone is welcome to join,” he said. “When you look at a cross section of our membership, you’ll see it’s just
as diverse as our employee base.”
Added A350 Equipment Engineer Edwin Noriega: “While creating the video required a lot of hard work and
devotion, the overall process was quite rewarding. I had the privilege to bond with many coworkers and
develop a video that incorporates what UTAS offers in terms of diversity and inclusion.”
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The aerospace industry can be fiercely competitive…
2016 Aerospace Summer Games replaced the “fierce” with
“friendly”
If the aerospace business is anything, it’s competitive. Companies fight for contracts from customers, battle over
market share, vie for the best talent. But there’s a softer counterpart to all that bare-knuckle competition that gets
played out each year on a beach near Los Angeles. The “Aerospace Summer Games” brings together employees
from companies across Southern
California to set aside that hardfought business competition for
the day and replace it with
friendly – but still hard-fought
– athletic competition involving
various beach games.
For the fifth consecutive year, the
Aerostructures Early Professionals
Organization (EPO) employee
resource group organized a team
to participate in the 2016 games.
But there was a new wrinkle this
year. In addition to the three
dozen-plus members of the Chula
Vista-based EPO, employees from
Riverside participated on the team
for the first time. Meanwhile,
participants from the UTAS Sensors
& Integrated Systems site in Brea,
California made a return
appearance.
As usual, the games included such
beach favorites as volleyball,
tug-o-war, human pyramid and
watermelon eating. And the UTAS
team finished in the top 10, in line
with its showings in the previous
four years.
You can’t have a decent beach competition without a human pyramid or two.
Here, members of the UTAS team that competed in the 2016 Aerospace
Summer Games – a friendly annual competition among Southern California
area aerospace companies – show how it’s done. This is the fifth year that
Aerostructures’ Early Professionals Organization employee resource group
has organized a team to participate in the Games.
“Our bench strength wasn’t as deep”
“We’ve been fairly consistent; we finished in 5th place in 2012, our first year, and have bounced between 6th and
8th on other years,” according to EPO President and Games lead organizer Nancy Tran. “This year, we ended up
in 7th place. Attendance was down a little from last year, so our bench strength wasn’t as deep.”
Senior Tool Engineer Aron Zifko, who co-organized the event with Tran, said there was a good reason some folks
couldn’t make it.
“The date selected for the Games this year was in July rather than August. Also, we do not have very many new
associates or interns this year,” he said. “Additionally, several individuals who have participated in the past
were either too busy or had schedule conflicts on the event date.”
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This UTAS team – which included employees from Aerostructures’ Chula
Vista and Riverside locations, as well as the Sensor & Integrated Sensors site
in Brea – competed against teams from several other Southern California
aerospace companies at the July 16 Aerospace Summer Games. The annual
event, conducted at Dockweiler Beach near Los Angeles, provides the companies’ workforces with an opportunity to set aside the usual business
competition for a day to take part in spirited beach athletic contests.
“We encourage
everyone to go
out and have fun.
We want to be
competitive, but
we don’t stack
our teams with
the fastest,
strongest, or best
players. We
assign people to
teams and events
based on their
interest, rather
than skill level or
physical aptitude.”
Being a little short-handed meant juggling participants to cover all the events. Tran said this meant deploying a
few new tools this year.
“We had great pop-up tents featuring the UTC logo, which made our booth easy to find,” she said. “We had
prepared a military style schedule with a clock taped on top and list of specific activity teams to make sure
everyone knew what was going on and where they had to be at any point in time. We also did checks frequently
to see if the people signed up for certain activities were checked in/present; if they weren’t, they got crossed off
and replaced with someone who was available. We kept all of the Games activities staffed this way.”
Both organizers are already looking ahead to figure out how to improve the UTAS participation rate in 2017.
Focusing on a bigger team
“We encourage everyone to go out and have fun. We want to be competitive, but we don’t stack our teams with
the fastest, strongest, or best players. We assign people to teams and events based on their interest, rather than
skill level or physical aptitude,” said Zifko. “Next year, we’ll try to encourage our teams to meet as a group at
least once before the games and – if possible – practice as a team at least once in advance of the event.”
Tran, meanwhile, is focusing on a bigger team.
“I take pride and joy in this being EPO’s event. Next year, I’d like to recruit more help and have more people to
staff the games,” she said. “I’d also like to add more sites if possible! I hope Santa Fe Springs decides to come
back for 2017. Since they had so much fun, Riverside and Brea have already committed to doing it again next
year.”
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“I take pride and
joy in this being
EPO’s event.”
Zifko had special thanks for one
attendee, who stepped in to
participate in the Executive Golf
event when EPO’s executive
sponsor was unable to attend this
year’s games.
“Great job and thank you to Allen
Tai of HR, who coordinates all of
the employee resource groups, for
championing this event,” he said.
“We were very pleased to have HR
actively involved in not only the
planning for the event, but also for
participating in the Games!”
The roster of competitors at the 2016 Aerospace Summer Games reads like an
industry Who’s Who, with Boeing, NASA, Honeywell and SpaceX among
the companies fielding teams for a day of fun and friendly competition at the
beach. In all, 21 Southern California companies went head-to-head in events
ranging from tug-o-war to beach golf and dodgeball. The UTAS team
finished in a respectable 7th place at this year’s Games.
No Skylines next week
Due to next week’s furlough-shortened work week, Skylines will not be published on Wednesday, Aug. 10.
Please watch for the next issue on Wednesday, Aug. 17.
Monday, Aug. 8 is the third of five 2016 furlough days for UTC Aerospace Systems locations included
in the furlough program. Employees at these locations are not expected to work on this day. Any
exceptions have been communicated locally. Employees included in the furlough program should be
aware that the event has been set up as “Furlough” within the AutoTime system and that the August
furlough day WILL NOT automatically post within the AutoTime system. As a result, office employees
are responsible for posting this event and supervisors of shop employees are responsible for posting
this event to their employees’ time cards.
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