Growing the Lean Community An LAI Plenary Conference Production Operations Transition-to-Lean April 11, 2001 Presented By: Tom Shields MIT Research Sponsored (Jointly) By LAI and ManTech Lean Aerospace Initiative Objective Develop a transition to lean roadmap for production operations utilizing models which have been shared with us by LAI members and LAI researchers 2 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative John Crabill – Don Meadows – Ron Milauskas – Craig Miller – Tom Shields – Brian Schwartz – Bob Torrani – Roadmap Team U.S. Air Force Research Lab Lockheed Martin Textron Northrop Grumman MIT - LAI Pratt and Whitney Textron 3 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Roadmap Development Process ➢ Develop understanding of each shared model ➢ Acknowledge each model’s parameters ➢ Review pros and cons of each model ➢ Define requirements for a common model ➢ Integrate requirements and pros of each into a common TTL roadmap ➢ Review product with LAI team members ➢ Obtain feedback and suggestions on further improvements 4 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Roadmap Requirements ➢Consistency and synergy with enterprise TTL roadmap ➢Show precedence order and continuous improvement loops ➢Summarize scope and breadth on one page ➢Provide common framework for communicating to all organizational levels ➢Can be enhanced by providing a description manual to explain each phase and step within the phase 5 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Model Integration into a Common Roadmap Textron Pratt & Whitney Entry Vision Northrop Grumman Lockheed Martin Top Level Flow MIT Cochran MIT Reynal Detailed Activity Flow 6 - Team Initials/Presenter - 041001 © 2001 Massachusetts Institute of Technology Transition to Lean in Production Operations web.mit.edu/lean Production Operations Transition-To-Lean Roadmap Supply Chain/External Environment • Legal • Environmental • Government Reqd. Systems (MMAS, EVMS, etc.) Enterprise / Production System Interface • Financial • Information • Procurement • Engineering • Quality • Safety • Training and Human Resources • Workforce/Management Partnership Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Adopt Lean Paradigm Prepare Define Value Identify Value Stream Design Production System Implement Flow Implement Total System Pull •Build vision •Build vision •Establish •Establish need need •Foster lean •Foster lean learning learning •Make the •Make the commitment commitment •Obtain Sr. •Obtain Sr. Mgmt. buy-in Mgmt. buy-in •Integrate with •Integrate with Enterprise Enterprise Level Top Lean Level an Leadership •Establish Roadmap •Establish an Operations Operations Lean Lean Commitment Implementation Implementation Team(s) Team(s) •Develop •Develop implementation implementation strategy strategy •Develop a plan •Develop a plan to address to address workforce workforce changes changes •Address Site •Address Site Specific Specific Cultural Issues Cultural Issues •Train key •Train key people people •Establish target •Establish target objectives objectives (metrics) (metrics) •Select initial •Select initial implementation implementation scope scope •Define •Define customer customer •Define value •Define value Quality, Quality, Schedule, and Schedule, and Target Cost Target Cost •Record current •Record current state value state value stream stream •Chart product •Chart product and and information information flow flow •Chart operator •Chart operator movement movement •Chart tool •Chart tool movement movement •Collect •Collect baseline data baseline data + •Develop a future •Develop a future state value state value stream map stream map •Identify takt time •Identify takt time requirements requirements •Review •Review make/buy make/buy decisions decisions •Plan new layout •Plan new layout •Integrate •Integrate suppliers suppliers •Design visual •Design visual control system control system •Estimate and •Estimate and justify costs justify costs •Plan TPM •Plan TPM system system + •Standardize •Standardize operations operations •Mistake proof •Mistake proof processes processes •Achieve process •Achieve process control control •Implement TPM •Implement TPM •Implement self•Implement selfinspection inspection •Eliminate/ •Eliminate/ reduce waste reduce waste •Cross train •Cross train workforce workforce •Reduce set-up •Reduce set-up times times •Implement cell •Implement cell layout layout •Implement •Implement visual controls visual controls + + Phase 7 •Select •Select appropriate appropriate production production system control system control mechanism mechanism •Strive for single •Strive for single item flow item flow •Level and •Level and balance balance production flow production flow •Link with •Link with suppliers suppliers •Draw down •Draw down inventories inventories •Reassign •Reassign people people •Re-deploy/ •Re-deploy/ dispose assets dispose assets + Strive for Perfection Expand Internally/Externally •Team development •Optimize quality •Institutionalize 5S •Institute Kaizen events •Remove system barriers • Expand TPM • Evaluate against target metrics • Evaluate progress using lean maturity matrices ENTRY © 2000 Massachusetts Institute of Technology IMPROVED COMPETITIVE POSITION 6/5/00 Managing Lean Transition In Production Operations* Supply Chain/External Environment Enterprise / Production System Interface • Business Management • R&S • Engineering • AMMC Phase 0 Adopt Lean Paradigm • Build Vision • Establish Need • Foster Lean Learning • Make the Commitment • Obtain Sr. Mgmt. Buy-In • Product Support • Bargaining Units • Program Offices • Business Development Phase 1 Phase 2 Define Value Prepare • CAV • Legal • Communications • Business Ethics Su Phase 3 Identify Current Value Stream • Customer • Suppliers • Government Reqd. Systems (MMAS, EVMS, etc.) Phase 4 Phase 5 Design Future Develop Value Stream Implementation Plan Phase 6 Execute The Plan • Integrate With • Define Area to • Document • Develop a Future • Perform Gap • Drive To Change Enterprise Executive Level Lean Commitment • Create a Climate Roadmap for Change • Establish Lean Implementation Team • Develop and Articulate Strategy • Resolve how to Maintain Mutual Trust While Rightsizing • Address SiteSpecific Cultural Issues • Train Key People • Establish Target Objectives be Transitioned • Define Customer • Define Value Quality, Schedule and Cost Targets Current State Production System • Map People, Product and Information Flows • Collect Baseline Data • Determine Level of Lean Conduct State Production System • Project the Level of Desired Lean Conduct • Integrate Suppliers • Estimate and Justify Investment Analysis Between Current State And The Desired State • Establish Attainment Criteria: Goals, Measures And Clearly Defined Timelines • Develop Impact Statement And Interfaces • Perform Resource Evaluation The Way People Do Their Work • Understand That People Must Make The New System Work • Continually Monitor Progress And Assess Impact Of Adverse Trends • Take Action On Deviations To Plan And Communicate Revisions • Guide Behavior Modification • Realign Critical Systems And Structure LTS Toolkit & Workbook SMC Group Analysis Tools Phase 7 Strive For Perfection Expand Internally/Externally * Adapted From LAI • Continuous Improvement Culture • Institute Kaizen Philosophy • Learning Transferred Throughout Organization • Evaluate Against Target Metrics and Lean Maturity Matrices