Lean Aerospace Initiative
Supplier Networks Research
Team
Lean Enterprise
Self-Assessment Tool
(“LESAT”)
January 30, 2001
Presented By:
Debbie Nightingale
MIT
Research Sponsored By LAI
Lean
Aerospace
Initiative
Overview
➢Background
➢LESAT Development Process
➢LESAT Architecture
➢Beta Testing
➢Next Steps
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Lean
Aerospace
Initiative
What Is LESAT?
World
Class
➢ A tool for self-assessing the present
state of leanness of an enterprise and its
readiness to change
➢ Capability maturity model for enterprise
leadership, life cycle and enabling processes
➢ Supporting materials: (instructions manual,
scoring guide, etc.)
As
se
ss
me
nt
Ma
tr
ix
➢ Comprised of:
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Lean
Aerospace
Initiative
LAI Enterprise Tool Triad
TTL
TTL
Roadmaps
Roadmaps
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es
Im
ic
pl
ct
em
ra
en
tP
ta
es
tio
B
n
LEM
LEM
Principles
Principles &
& Practices
Practices
Assessment
LESAT
LESAT
Self
Self Assessment
Assessment
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Lean
Aerospace
Initiative
Approach: Evaluation of Existing
Assessment Tools
➢ Conducted analysis of existing tools vs. requirements
➢ Types of assessment tools
➢ Maturity matrices (Boeing, SEI, SAE J4000)
➢ Quality of document processes (Baldrige, Shingo Prize)
➢ Outcome based, measured change in performance (Evidence of
Lean, Financial Scorecard)
➢ None of the existing tools met key requirements
➢ Did not address entire enterprise (most focused on factory floor)
➢ Did not provide both a measure of lean and gap analysis
➢ Did not identify “next steps” to take
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Lean
Aerospace
Initiative
LESAT Tool Requirements
(Survey of LAI Stakeholders)
➢ Simple, easy to use and minimal time to create
➢ Instructions and mechanism for use
➢ Standard and clear definitions
➢ Focus on lean attributes
➢ Alignment with business performance planning (goals
and results)
➢ Provides guidance for “next steps”
➢ Gap analysis capability
➢ Ability to accommodate both single and aligned
organizations (teaming, partnerships, suppliers) within
an enterprise
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Lean
Aerospace
Initiative
Maturity Model Approach
Scores Highest
Candidate Tool Process
Needs / Requirements
Assesses Degree of “Lean-ness” for an
Enterprise and all its Core Processes
Provides Feedback for Improvement.
Provides Guidance for “Next Steps”
Objective Evidence / Data Driven
Matches / Aligns with LEM Attributes
Leverages LAI / Industry Tools
Minimal Time / Effort to Create Tool
Scaleable / Flexible for Different Users
Simple - Easy to Use
Aligns with Business Planning Process /
Goals and Results
Able to Accommodate Simple and
Partnership Self-Assessments
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Wt.
Maturity
Matrix
Baldrige
Type
Outcome
Based
5
250
130
80
240
150
120
108
230
114
63
75
78
132
48
36
3
96
34
102
78
90
90
114
78
54
1
32
30
30
1
36
32
26
1218
816
718
5
3
3
3
3
3
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LESAT Desired Score Can be
Tailored for Each Process Area
Lean
Aerospace
Initiative
A Company’s Strategic Plan for a Tailored
Capability Goal matched to the business objectives.
Capability Level
5
4
3
Current Capability
Gap
2
1
0
LESAT Enterprise Process Areas
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Lean
Aerospace
Initiative
Lean Enterprise Self Assessment
Tool Architecture
EnterpriseLevel
LevelModule
Module
Enterprise
Sub-enterpriseLevel
LevelModules
Modules
Sub-enterprise
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Lean
Aerospace
Initiative
Consortium Involvement
Avionics/Missiles
Space
Northrop Grumman ESSS Engineering & Manufacturing
Raytheon Systems and Electronics Sector
Rockwell Collins, Inc.
Textron Systems
Boeing Space and Communications Group
GenCorp Aerojet
Lockheed Martin Space & Strategic Missiles
Airframe
Boeing Military Aircraft and Missile Systems Group
Boeing Phantom Works
Boeing Commercial Airplane Group
Lockheed Martin Aeronautical Systems Sector
Northrop Grumman ISS
MIT
Propulsion
Rolls Royce Allison
• Lead Researchers
Faculty and Staff
Other Government
Other Participants
Defense Contracts Management Agency
OUSD(A&T)
IAM
DSMC
Arizona State University
Massachusetts Institute of Technology
International Collaborations:
UK LAI
US Air Force
Aeronautical Systems Center
Air Force Research Laboratory
(Materials and Manufacturing Directorate)
Space and Missile Center
SPOS: F-22, Training (JPATS)
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Lean
Aerospace
Initiative
Activity
Enterprise Level Module
Development Effort To Date
June
July
August
September October November December
Executive
Board Approval
Architecture
Definition
Prototype
Development
UK LAI Input
Alpha Version
Development
& Test
Beta Version
Development
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Lean
Aerospace
Initiative
Collaboration With UK LAI
➢ In August, a UK LAI meeting discovered also developing
enterprise-level assessment tool
➢ Researchers exchanged “alpha” models and found
similar approach (e.g., both employed capability maturity
models)
➢ Common architecture was defined and knowledge from
both consortiums leveraged to develop LESAT Beta
➢ Multiple benefits from single model:
➢ Many common US & UK suppliers
➢ Potential single standard
➢ Synergy of research knowledge for future detailed assessment
modules development
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Lean
Aerospace
Initiative
Enterprise Level Module
Alpha Testing Feedback
5 Companies (9 sites)
7 Government (2 SPOs, 5 DCM sites),
2 Lean Aerospace Initiatives (LAI, UK LAI)
➢ High enthusiasm for executive-level tool
➢ Strong support for linkages to enterprise transition
to lean roadmap
➢ Suggested simplification and strong integrative
focus for practices
➢ Strategic and enterprise-level issues given high
priority
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Lean
Aerospace
Initiative
LESAT Architecture
Section I
Section II
Section III
Lean
Transformation
/ Leadership
Life
Cycle
Processes
Enabling
Infrastructure
Processes
Enterprise Level Module
Sub-enterprise Level Modules
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Lean
Aerospace
Initiative
LESAT Architecture
Section I
Section II
Section III
Lean
Transformation
/ Leadership
Life
Cycle
Processes
Enabling
Infrastructure
Processes
Enterprise Level Module
Sub-enterprise Level Modules
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Lean
Aerospace
Initiative
Section I:
Enterprise Level Section I
Lean Transformation/Leadership
➢Practices directly linked to enterprise Transition to
Lean Model (TTL)
➢Assesses the following elements:
➢Strategic integration
➢Leadership and commitment
➢Value stream analysis and balancing
+
+
➢Change management
➢Structure and systems
➢Lean transformation planning, execution and monitoring
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Lean
Aerospace
Initiative
Enterprise Level Roadmap
Long Term Cycle
Entry/Re-entry
Cycle
Adopt Lean
Paradigm
Focus on the
Value Stream
Initial
Lean
Vision
Decision to
Pursue
Enterprise
Transformation
Enterprise
Strategic
Planning
Develop Lean Structure &
Behavior
Detailed
Lean
Vision
+
Detailed
Corrective Action
Indicators
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
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Lean
Implementation
Framework
Short Term Cycle
Environmental
Corrective
Action Indicators
Create & Refine
Implementation Plan
+
Implement Lean Initiatives
Enterprise
Level
Implementation
Plan
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Lean
Aerospace
Initiative
Enterprise Level Section I: Example
Lean Enterprise Vision - new mental model of the enterprise
Level 1
Senior leaders have varying visions of lean, from none to
well defined
Level 2
Senior leaders adopt common vision of lean
Level 3
Lean vision has been communicated and is understood
by most employees
Level 4
Level 5
Common vision of lean shared by the extended enterprise
All stakeholders have internalized the lean vision & are an
active part of achieving it
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Lean
Aerospace
Initiative
LESAT Architecture
Section I
Section II
Section III
Lean
Transformation
/ Leadership
Life
Cycle
Processes
Enabling
Infrastructure
Processes
Enterprise Level Module
Sub-enterprise Level Modules
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Lean
Aerospace
Initiative
Enterprise Level Section II
Section II: Life Cycle Processes
Assess:
➢ Enterprise level core processes
➢ Acquisition
➢ Program Management
➢ Requirements Definition
➢ Product/Process Development
➢ Supply Chain Management
➢ Production
➢ Distribution and Support
➢ Key integrative practices
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Lean
Aerospace
Initiative
Enterprise Level Section II: Example
Supplier relationships focus on optimizing the value
stream - partnering with suppliers
Level 1
Supplier relationships are at arm’s-length & adversarial
Level 2
Long term purchase agreements are being introduced to focus on
affordability & cost reduction; limited visibility into supplier business
processes
Level 3
Long-term relationships are in place with a limited number of certified
suppliers; early involvement of suppliers in design process
Level 4
Strategic alliances are in place that emphasize a high level of
information sharing, risk sharing, benefit sharing & synchronization of
production flow over the supplier network
Level 5
Dynamically optimizing the value stream to achieve long term
sustainable competitive advantage, thereby impacting strategic
planning
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Lean
Aerospace
Initiative
LESAT Architecture
Section I
Section II
Section III
Lean
Transformation
/ Leadership
Life
Cycle
Processes
Enabling
Infrastructure
Processes
Enterprise Level Module
Sub-enterprise Level Modules
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Lean
Aerospace
Initiative
Enterprise Level Section III
Section III: Enabling Infrastructure
Assess critical supporting processes
➢ Finance
➢ Information Technology
➢ Human Resources
➢ Quality
➢ Environmental Health & Safety
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Lean
Aerospace
Initiative
Enterprise Level Section III: Example
Financial system supports lean transformation - Lean
requires accurate assessment of value stream activities
Level 1
Level 2
Finance system provides basic balance sheet & cost accounting data;
there is little awareness & exploration of broader support roles for
finance
Analytical tools are provided by the financial systems to assist users in
planning & programming activities (e.g., cash flow, returns, NPV, etc.)
Level 3
Initiatives are under way to apply new & systematic approaches to the
use of financial data across the enterprise (e.g., activity-based costing,
lifecycle cost accounting, total cost accounting, etc.)
Level 4
Set of financial measures integrates with non-traditional measures of
value creation (e.g., intellectual capital, balanced scorecard, etc.)
Level 5
Seamless integration across the extended enterprise with emphasis on
measurement of value creation for all stakeholders
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Lean
Aerospace
Initiative
Enterprise Level Module
Supporting Materials
➢ Introductory Presentation
➢ Assessor’s Guide
+
+
➢ TTL Roadmap & Guide
➢ Summary Score Sheet
➢ Glossary of Terms
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Lean
Aerospace
Initiative
Executive Level Module Beta
Testing and Refinement
➢Utilize LESAT in actual enterprise executive level
assessments
➢Multiple industry and government sites (6-8)
➢Test site nominations have been submitted by
executive board members
➢Subject matter experts provide detail for tool
development
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Lean
Aerospace
Initiative
LESAT
Suggested Methodology for
Employing LESAT
Step 1: Facilitated meeting to introduce tool.
Enterprise leader champions
Step 2: Enterprise leaders and staff conduct
LESAT assessment
Step 3: Leadership reconvenes to jointly
determine present maturity level
Step 4: Leadership determines
desired level and measures gap
Lean Journey
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Step 5: Develop action
plan and prioritize
resources
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Lean
Aerospace
Initiative
Activity Name
Enterprise Level Module
Development Plan
2001
January
February
March
April
May
June
July
August
January
February
March
April
May
June
July
August
Beta Version Testing
Incorporate Feedback
Enterprise Level
Version 1.0
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Back up Slide
Lean
Aerospace
Initiative
Enterprise Level Roadmap
Long Term Cycle
Entry/Re-entry
Cycle
Focus on the Value
Stream
Adopt Lean
Paradigm
•Build Vision
•Convey Urgency
•Foster Lean Learning
•Make the Commitment
•Obtain Senior Mgmt.
Buy-in
•Map Value Stream
•Internalize Vision
•Set Goals & Metrics
•Identify & Involve Key
Stakeholders
Initial
Lean
Vision
Enterprise
Strategic
Planning
Detailed
Lean
Vision
•Organize for Lean Implementation
•Identify & Empower Change Agents
•Align Incentives
•Adapt Structure & Systems
+
Environmental
Corrective
Action Indicators
Decision to
Pursue
Enterprise
Transformation
Develop Lean Structure &
Behavior
Short Term Cycle
Focus on Continuous
Improvement
Detailed
Corrective Action
Indicators
•Monitor Lean Progress
•Nurture the Process
•Refine the Plan
•Capture & Adopt New Knowledge
Lean
Implementation
Framework
Create & Refine
Implementation Plan
•Identify & Prioritize Activities
•Commit Resources
•Provide Education & Training
+
Outcomes on
Enterprise
Metrics
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Implement Lean Initiatives
•Develop Detailed Plans
•Implement Lean Activities
Enterprise
Level
Implementation
Plan
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