LAI Concept of Operations …Phase 3: Enterprise Value Started 9.01.02 Overarching Goal: Accelerate the lean enterprise transformation of the U.S. aerospace enterprise Overarching Metric: Meeting LAI stakeholders’ expectations Goal 1: Support the ongoing lean transformation of industry Goal 2: Enable lean, value-creating supplier base Goal 3: Support lean transformation of the government Goal 4: Educate and train stakeholders in value-creating lean principles and practices Goal 5: Enhance the effectiveness of the national workforce Goal 6: Support member implementation efforts by sustaining tools and knowledge base and by organizing outreach events 1 - LAI EXCOM Meeting August 22, 2002 Lean Aerospace Initiative (LAI) …Co-Chairs Direction (August 20, 2002) Co-Chairs • Gen Les Lyles (Air Force) • Mrs Darleen Druyun (Air Force) • Dr Bill Kessler (Industry) • Prof Sheila Widnall (MIT) Direction • Use the LAI venue in support of the AF “Lean Now!” initiative Background 1. What is LAI? • Unique legal venue – discuss defense aerospace issues • • Accelerated Toyota lean production deployment to Aerospace Moved “Lean” from factory to enterprise level • Help accelerate government-industry lean enterprise transformation to meet mission and war fighter requirements 2. What has LAI done? 3. Where is LAI headed? 4. Next actions…for 2002 “Lean Now!” • • • Select the “prototype” processes Workshop with leadership of “prototype” processes AF Leadership review of progress … Dec 12 LAI Exec Board 2 - LAI EXCOM Meeting August 22, 2002 A Collective Challenge • AF focus is on transformation…of entire value stream! • War Fighting • Products and Solutions Used in War Fighting • Acquiring, Delivering and Maintaining Products & Solutions • Capable Processes Enabling Acquiring, Delivery, and …. • Capable Processes Include Workflow, Skills, Behaviors, Systems and Tools… From Beginning to End! • Capable Processes Can Dramatically Reduce Span Times • Capable Processes Translate Into More Force Structure Deploying Capable Processes That Support War Fighter Requirements…Involves Government and Industry 3 - LAI EXCOM Meeting August 22, 2002 Transforming to More Capable Processes • AF Initiative “Lean Now!” • Apply Lean Principles To Government-Industry Critical Processes … Align Capability With War Fighter Requirements • SPO- Industry Program Interfaces • Across AF- Industry Business Processes • Across AF- Industry Operational Processes • Leverage Industry Experience in Process Re-engineering, Transformation and Improving Capability • Model Deployment After Successful “ADR First” Initiative • Kick-Off With a Few “Prototype” Processes …Then Institutionalize AF Will tap the Lean Aerospace Initiative (LAI) Venue For knowledge and expert agents to catalyze Lean Now! 4 - LAI EXCOM Meeting August 22, 2002 Candidate “Prototypes” Queue! Value Stream - Chains of Transactions Send! IN" Work/ Waste! Candidate Processes 1. • I N" I N" I N" I N" I N" 2. I N" Brch. Chief! Draft Queue=12 hrs Work=2 hrs! ValAdd=0 hrs! 3. ☎! 3 day s! Tra nsit 1 hr! Tra nsit Coordinate 1 hr! Queue=12 hrs Work=2 hrs! ValAdd=0 hrs! Action Officer! Action Officer! Staff Queue=6 hrs Tra Work=27 hrs! nsit 24 ! ValAdd=4 hrs! hrs! Tra nsit 10 min! Tra nsit 10 Brch Chief min! Queue=4 hrs Work=10 min! ValAdd=5 hrs! Brch Chief! Tra nsit 24 hr! Assistant! Prep Queue=4 hrs Tra Work=30 min! nsit 24 ! ValAdd=0 min! hrs! Tra nsit 24 Review hr! Queue=4 hrs Work=10 min! ValAdd=0 hrs! Security! Dept Chief! Approve Queue=30 hrs Tran Work=20 min! 1sit !! hr ValAdd=10 min! Consumer Asst Secretary! Act Queue=5 days Work=10 min! ValAdd=5 min! + “Kaizen” for continuous improvement Core Value Process • I N" I N" Contracto r! Draft Queue=0 hrs Tra Work=24 hrs! nsit 3! ValAdd=24 hrs! hrs! Deploy roles and responsibilities of enterprise and program managers I N" I N" I N" I N" AF Leadership Process SPO-Industry Program Interfaces & Efficiency Enabling Process • Business, e.g. • • • Payment Operational, e.g. • DT and OT • Use of Gov Test Facilities Change Management LAI venue allows coaches & trainers from all member companies to support AF initiative" 5 - LAI EXCOM Meeting August 22, 2002 “Lean Now” Leadership Workshop …Developed by LAI’s SMEs • DAY 1 (Afternoon) • • • • • • Introduction (4 LAI Co-Chairs) Ice Breaker Simulation (Importance of Total Value Stream Focus) Out Briefs and Lessons “Home Work” (5 ideas and 5 barriers) Expectations for Day 2 • Social, Dinner and Speaker • Day 2 (Morning) • • • • • • Tool Kit of Lean Methods and Tools Team Meetings – Integrate “5 and 5” Team Reports Lessons Learned – Implementing Lean Closing Session – Highlighting “Leadership Tool Kit” Team Meetings – Commit to Plan & 12.12 Expectations 6 - LAI EXCOM Meeting August 22, 2002 “Lean Now” Leadership Workshop …Support Needed from LAI Group 1 1. Read Ahead Package for Workshop Attendees • • • • • • Target Government and Industry Total Value Stream Minimum Manufacturing, Maximum Transaction Case Study Summaries Keep it Simple and Useful Integrate Relevant Findings from Past LAI Research Need This in October! 2. Engage With SMEs on Workshop Methods & Tools • Requirements • • The Methods and Tools Used on Lean Now Need to be Applicable Through the Total Government-Industry Value Stream. This “Common Language” Will Accelerate Transformation “LAI Blessed” --- Validating Value of Using the LAI Venue 7 - LAI EXCOM Meeting August 22, 2002