Industry Future State
and LAI
Executive Panel
Presented by:
Christopher Cool
LAI Executive Board Industry Co-Chair
April 18, 2006
Caveat
• Industrial Enterprises is too big a scope to
envision one future state other than PERFORM for
the Shareholders
• I looked at the industrial complex of Defense and
Aerospace but there are others we should
consider in the context of LAI going forward;
–
–
–
–
–
Commercial Aerospace and Space
Bio Medical and Health
Financial
Electronics
Automotive (Toyota is still the place to learn and
understand)
Chris Cool 4-17-, 2006 - 2
Industry Future State
Bottom Line
Increased speed …
In fighting a war
In developing and fielding new capabilities
In conducting business
Increased flexibility, in the face of …
A broad range of threats
Uncertain budgets
A transforming customer
Customer Focus
Internal Focus
A transforming company
Increased collaboration …
With customer community
Across our companies
Across our supply chains
Chris Cool 4-17-, 2006 - 3
Industry Future State Focus…..
•
Performing for the Shareholders
1. Best Value Provider In Industry ("Value Creation")
2. Organic Growth
A. Market Expansion
B. Profitability
C. Discriminating Capabilities
•
Support of this and next QDR strategic direction
1. Transformation and Reducing Acquisition Timelines
2. Joint Forces
•
Rationalization and
Scoping due to Budgetary variables
“Believe me: the crunch is coming. The budget crunch is coming, and it’s not going
to be pretty.” General David Walker, US Comptroller General (and Blaise too!!)
•
Dealing with the reality of the brain drain and leadership
1.
2.
3.
4.
5.
Executive and individual Leadership
Telecommuting/Flexible work schedules
Virtual Workplace
Generational Skill Mix
Knowledge and Capability
Chris Cool 4-17-, 2006 - 4
Industry needs LAI….
Value Streams
• Maximizing our Performance/Efficiency
– Help us to see the money through processes
Integrating the various ‘views’ needed to manage
our business:
s
m
• Program
a
r
g
o
• Functional
Pr
• Value Stream
Help us see the
MONEY!!!!!
Processes
Chris Cool 4-17-, 2006 - 5
70% of the total
cost to deliver on
Product A
Value
Stream Managers
Value Stream
Management
($$$)
systems/components
Test functional
systems
Inspect and
test
Accept Delivery
Contract
Settlements
Manufacturing
Operations
Production Control
Erect and assemble
nits/structure
Install
Machine components
Assemble
units/components
Test
units/components
Fabricate structural pieces,
pipe, sheet metal, and electrical components
Detail
Planning
Production Control
Issue work instructions
PBOM issue (demand)
definition
Work center routing
• Provide us with tools to execute the thoughts –
increase the level of “saturation”
– Help us to implement. Make VSM/EE part of
Program Management or Systems Engineering 101.
– Make this a leadership MUST HAVE
Functional Process Managers
Supply Chain
Mgmnt
BOM & Activity
Breakdown
Perform lofting
& NC
Store, kit, issue
Receive material
Stock management
Work release
Planning
Material acquisition
plan
Budget/progress/EVM
Design/Eng
Build strategy
Financial work breakdown structure
(WBS)
High and intermediate
level
Material Planning
Labor resource
planning
Capacity analysis
Develop drawing and BOM
Detail design
Contracts
& Pricing
Specification
definition
Arrangement design
Negotiation/contract award
Bid development
Scope development
Cust
Requirements definition
Issue RFP
Define Threats
Define requirements
Industry needs LAI….
Assembly
Operations
Cust
80% of the total
labor cost to
deliver Product B
Chris Cool 4-17-, 2006 - 6
Industry needs LAI….
• Help us to help customers, ourselves and the supply
chain decipher the complexity and transform the
industrial base enterprise
– Keep facilitating Tools and Transformation Activities
Characterization
& Maturity
Peop
le &
Cult
ur
Focu e
s
Measurement &
Improvement
Process &
Systems
Focus
Agile & Flexible
Value Stream Focus
Platform
Mission
Learning
Organization
Change
Management
Knowledge Supply
Systems
of Systems
Enterprise Transformation Complexity
Chris Cool 4-17-, 2006 - 7
Industry needs LAI….
• Maximizing our Performance/Efficiency
– Help us to see the money through processes
• Provide us with tools to execute the thoughts –
increase the level of “saturation”
– Help us to implement. Make VSM/EE part of
Program Management or Systems Engineering 101.
Keep research on value added topics
• Help us to help customers, ourselves and the supply
chain transform the industrial complex
– Keep facilitating Tools and transformation activities
• Developing our Human Capital and working the gap of
the brain drain on our customers and ourselves
– Collaborate & Research Solutions in other
Industries
– Enterprise leadership tools and principles
Chris Cool 4-17-, 2006 - 8
Leadership to close the gap
Success through
networked enterprises
I
TH
N
A
LE
N
NG
I
K
SE
I
P
R
Transition
from waste
TE
N
E Minimization to value
F through
Successes
O
interaction
between
N
O
functions
TI
creation
Success through
enterprise integration
Expanding the
lean boundaries
• Suppliers
• Customers
• Partners
Success through total
enterprise integration of all
stakeholders
• Industry
• Government
• Suppliers
• Employees
LS
O
O
G/T
KIN
N
I
TH
E
Functional lean
S
I
U Lean applied to
RP
successes
L
E
T
O
EN
• Manufacturing
enabling processes
V
N
A
E
• Product Dev.
E
• HR
• Supplier Network
OF L
•N
IT, etc.
Phase III
Phase IV
O
I
T
OP
“Islands” of
ADSuccess
Phase I
Phase V
Phase II
Products
LEM
++
++
TTL
Knowledge
Cycle Time
(~6 mo)
(~1 yr)
LEM
•Focus on Expanding
Interface Efforts Lean
now started
EVSMA Architecting Toolset
(~2 yrs)
(~3 yrs)
(>4 yrs)
Chris Cool 4-17-, 2006 - 9