Lean Transformation at Warner Robins ALC: The Buy Purchase Request Process Presented By Jessica L Cohen – MIT / LAI Research Assistant Tina Walker – WR ALC Logistics Change Manager 24 March 2004 Phase I Identification of the Problem • • Purchase Requesting process was chosen as a Center-wide Target of Opportunity Value Stream Map identified problem areas and differences between product directorates 6/21/02 – 6/14/03 194 Days 3 Days 7 Days Segment 1 Segment 2 Segment 3 204 Days D200 March 02 Final Comp Initial input of PR into J041 Package is Passed to PK PK accepts package 6/21/2002 web.mit.edu/lean © 2004 Massachusetts Institute of Technology cohen/032404 - 2 Phase II Possible Solutions Implemented • Standard work guide is produced • Quite difficult when dealing with 7 PDs, Logistics, Procurement, and over 1100 employees Will ultimately lead to less re-work • • Contract Buy Team meetings are encouraged • Brings everyone involved in one package together • Team members include Item Managers, Project Managers, Equipment Specialists, Engineers, and Procurement Officers • Automated Purchase Requesting System is developed within LT Directorate • Flow times are decreased through digital transfers • All attachments are scanned and compiled web.mit.edu/lean © 2004 Massachusetts Institute of Technology cohen/032404 - 3 Phase III Evaluation and Improvement FY04 PR Flow Time LB LE LF LM LS LT LU WR 42 89 56 70 70 82 74 73 FY03 204 Goals – 45 Workdays or 65 Calendar Days web.mit.edu/lean FY04 Initiation Rate LB LE LF LM LS LT LU WR FY03 Oct Dec 63.25% 111.10% 16.85% 24.13% 58.39% 78.89% 20.11% 67.76% 29.35% 60.31% 101.76% 105.37% 41.24% 81.08% 57.68% 79.35% 29.85% 67.41% Goals – October: 65%, December: 100% © 2004 Massachusetts Institute of Technology cohen/032404 - 4 Phase IV Enterprise Level Integration • • • • • What role does AFMC Headquarters play? Can problems caused by matrixed organizational structure be overcome? How much training will be necessary? Will the culture evolve to appreciate team work? All of these are currently being addressed, but the process is stalled, and more needs to be done ‡ Do you have any suggestions? web.mit.edu/lean © 2004 Massachusetts Institute of Technology cohen/032404 - 5 Discussion Questions • • • • What behaviors must be ingrained for change to take root? What activities are detrimental to change? Is there ever an end to change? Have you experienced any surprises along your lean journey? • What were they? • How did you approach the problem? • Did your management succeed? • Would you recommend these as best practices for all? web.mit.edu/lean © 2004 Massachusetts Institute of Technology cohen/032404 - 6