Lean Aircraft Initiative Plenary Workshop Organizational Change October 16, 1996 Presented by: Dave Driscoll Sikorsky LEAN AIRCRAFT INITIATIVE Agenda ◗ Background ◗ Research Methodology ◗ LAC Case Study – Technical Support Team – Self-Directed Work Team ◗ Questions/Answer Organizational Organizational Change101696-2 Change101696-2 LEAN AIRCRAFT INITIATIVE Background ◗ Aerospace technical organizations typically organized in “functional” organizations or “stovepipes” which are characterized by: – Organizational overlap – Redundant activities – Poor communication – Multiple “pass-offs” – Lack of responsiveness to production ◗ Industry has adopted various team structures for new product development – Despite clear advantages, most of industry has been slow to adopt similar organizational structures to sustain existing products or to support the development of manufacturing systems Organizational Organizational Change101696-3 Change101696-3 LEAN AIRCRAFT INITIATIVE Research Methodology ◗ Literature research to understand current theories ◗ Two site visits to establish industry norms or practices – Confirm existence of problem – Determine initiatives underway in other firms ◗ Eight day site visit and case study at division of a major US Aerospace Company – 21 individual interviews – 2 focus group interviews with 13 people – Attendance at a representative meeting for each type of team Organizational Organizational Change101696-4 Change101696-4 LEAN AIRCRAFT INITIATIVE Technical Support Team ◗ Philosophy was to support production with team of multi-functional technical personnel ◗ Goal was to create self-sufficient businesses within the business ◗ Approach driven by division executive and customer SPO Organizational Organizational Change101696-5 Change101696-5 LEAN AIRCRAFT INITIATIVE Organizational Overview IPT Organization - Phase II (March 1995) PROGRAM OFFICE BUSINESS DEVELOPMENT A&I IPT HOME ROOMS PROD. OPS IPT AIR VEHICLE IPT SUPPORT SYST IPT TRAINING IPT PEPI IPT ENGINEERING FUNCTIONS Organizational Organizational Change101696-6 Change101696-6 LEAN AIRCRAFT INITIATIVE Organizational Overview PRODUCTION OPERATIONS IPT WING IPT FUSE LAGE & MJR, JOIN IPT SYSTEMS INSTL IPT FINAL & RAMP IPT PRODUCTION INT. IPT PROD. ENGR MFG. ENGR IND. ENGR. LIAISON ENGR. (MRB) PLANNING TOOLING AUTOMATION QUALITY ASSURANCE IPT PRODUCTION CONTROL IPT Organizational Organizational Change101696-7 Change101696-7 LEAN AIRCRAFT INITIATIVE Organizational Overview Product Group IPT Organization PRODUCT GROUP IPT CELL TEAM (MFG. DEPT.) TASK TEAM TASK TEAM Director or Senior Manager level CELL TEAM (MFG. DEPT.) TASK TEAM Senior Manager or Manager level TASK TEAM ‘Worker’ level SHOP WORKERS AND / OR SELF DIRECTED WORK TEAMS / SUPPORT GROUPS Organizational Organizational Change101696-8 Change101696-8 LEAN AIRCRAFT INITIATIVE Organizational Overview PHASE III (PLANNED) PROGRAM OFFICE BUSINESS DEVELOPMENT PROGRAM INTEGRATION HOME ROOMS AIR VEHICLE IPT SUPPORT SYSTEMS IPT TRAINING IPT ADVANCED DESIGN (ATAD & PEPI) Organizational Organizational Change101696-9 Change101696-9 LEAN AIRCRAFT INITIATIVE Observations ◗ Strengths • Very strong champion • People at every level like change and feel that it has improved focus and improved program performance • Little concern over “career impact” • Significant improvement in communication • Moving toward total enterprise concurrency • People at every level are more involved • Automation Team Linked to IPT to develop technology with users Organizational Organizational Change101696-10 Change101696-10 LEAN AIRCRAFT INITIATIVE Observations ◗ Weaknesses • Early resistance • Lack of incentive systems • Additional training would help • Co-location very slow Organizational Organizational Change101696-11 Change101696-11 LEAN AIRCRAFT INITIATIVE Conclusions ◗ Best People MUST be selected to lead teams ◗ Training is essential ◗ Powerful “champion” is essential ◗ Changes on sound theoretical foundation ◗ Pace of transformation seems right ◗ Cultural transformation beginning ◗ Performance improvements reflect change in structure Organizational Organizational Change101696-12 Change101696-12 LEAN AIRCRAFT INITIATIVE Self-Directed Work Team ◗ Paint Shop History – Previous experience with SDT not effective – Team developed by accident but also by necessity • High rework cost • Customer unhappy with quality of product • High manager turnover • “Circus Like” atmosphere • Paint shop on verge of being closed • Cyclical nature of process worked against improvement Organizational Organizational Change101696-13 Change101696-13 LEAN AIRCRAFT INITIATIVE Evolution of SDWT ◗ New director recognized need to get workers involved ◗ Painters understood their jeopardy ◗ Process began with series of daily meetings - Initial participation was low – Director became champion of the employees – Tremendous effort expended to satisfy needs of painters • Demonstrate Commitment ◗ Initially, little encouragement or support from first line supervision ◗ Participation grew as management credibility increased – Elimination of TLO Organizational Organizational Change101696-14 Change101696-14 LEAN AIRCRAFT INITIATIVE Evolution of SDWT ◗ People had to learn to work together and trust each other – “Head Bashing” meetings – “Very Painful,” “Weird Experiences” – Started to jell team ◗ Team improved painting process ◗ November 1995 commendation for: – – – – 30% decrease in hours Reduction in defects from 420 to 50 Significant reduction in rework and repair Total savings of about $500,000 for aircraft ◗ Team established work assignments - Best people in most critical roles Organizational Organizational Change101696-15 Change101696-15 LEAN AIRCRAFT INITIATIVE Self-Directed Work Team ◗ Critical Success Factors – High level management champion – Strong desire from both management and labor to make it work • Mutual Benefit – Demonstrated managerial credibility • “Walk the Talk” Organizational Organizational Change101696-16 Change101696-16 LEAN AIRCRAFT INITIATIVE Impediments ◗ Resistance from management and workers not committed to change – Failure to adapt to changing roles ◗ Lack of training – Failure to understand changing roles ◗ Inability to develop trust within the organization Organizational Organizational Change101696-17 Change101696-17 LEAN AIRCRAFT INITIATIVE Conclusions ◗ Organizational structure and capability is a source of uniqueness that can lead to competitive advantage ◗ The lean enterprise should cultivate interdisciplinary capability ◗ Organizations that will excel are those that discover how to tap people’s commitment and capacity to learn ◗ Technology and organizations must be developed that collaborate with peoples skills ◗ Structure of jobs will include a dual responsibility - performing current function and learning new disciplines Organizational Organizational Change101696-18 Change101696-18