Lean Aerospace Initiative MIT Lean Enterprise Model Goeff Bentley Visiting Scholar, Lean Enterprise Team Debbie Nightingale MIT Professor & LEM Product Team Lead Abhinav Taneja MIT Graduate Student March 29, 2000 Lean Aerospace Initiative MIT ! Reminder--What the LEM Is Insight Tool − a framework for organizing lean principles, practices & supporting examples − value stream focus on customer; product creation, fabrication & assembly; supply chain; people & organizations; policy & environment; information systems ! Electronic Library − originally for LAI research mapped to LEM © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative LEM Progression MIT LEM 2000 + Metrics, Features & Links Web Version (1998) + Online Access CD-ROM (1996) Taxonomy & LAI Research Evolving User Needs & Expanding Internet Technology © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT ! Significant Additions & Enhancements (1) More Reports & Links − from 100 to over 800 − some Reports have multiple LEM links ! Metrics Review & Consolidation − 38 by Flow Time, Stakeholder Satisfaction, Resource Utilization & Quality Yield − designated as to type--Output (enabling) or Outcome (results) Metrics − most Reports have at least one Metric © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT ! Significant Additions & Enhancements (2) Selection and Navigation Features − Browse by LEM Architecture − Practice (focus area) of interest − Reports by Type, Source & Metrics − Search by Title, Metrics & Key Words − Metrics dialog box − Search (word) field − Reports by Type, Source & Metrics © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative More Reports & Links MIT Other Navy Mantech (external sources) (Best Manufacturing Practices) DARPA 447 24 16 LEM (Agile Mfg. Projects) 99 36 LAI Research 130 90 LAI Site Visits (Phases I & II) 18 NIST/MEP NIST/NQP (Success Stories) (Malcolm Baldrige) Industry Week (Best Plants, Toolkit) © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative Metrics by Category MIT Metrics Flow Time (velocity of value chain) Output Cycle Time-Manufacturing Cycle Time-Order to Delivery Cycle Time-Product Development Cycle Time-Software Development F low Efficiency Information Release/Retrieval Time Process F low Purchased Parts Lead Time Throughput Time Certification of Competency-S uppliers Continuous Cost/Price Improvement Customer and Supplier Relationships inc. IPTs Customer Satisfaction Surveys Employee Involvements inc. Management Partnerships & Multiple F unction IPTs Employee Satisfaction inc. Self Empowerment, Use of Suggestions/Communications & Rewards Programs, etc Employee Turnover Rate Long Term Supplier Agreements On Time Deliveries Commonality of Databases-intra, customers, and/or suppliers Cost of Quality inc. Costs of Scrap, Rework, War rantee & Inspection Environmental Savings/Technology Use Inventory Reduction Inventory Turns JIT Non-Value Added Activities & Resources Organizational Effectiveness Output per Employee Paperless Technology Return On Assets Standardized Processes, Tools & Practices inc. Preventive Maintenance Training Baseline Change Effectiveness Defects & Defects Rate Design Drawing/Engineering Changes or Rejection Reports F irst Pass Product Quality Yield Process Effectiveness Measures inc. Cpk Ratio and Use of SPC Scrap, Rework Rate Software Errors Reduction Outcome Stakeholder Satisfaction (trust, sharing) Output Outcome Resource Utilization (asset management) Output Outc ome Quality Yield (change in qualitycost) Output Outcome X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT Examples of New Features in LEM 2000 Examples of New Features in LEM 2000 © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT Click on LEM Structure © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT Click on All & Metrics Box © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT More Features Click on OAP #12 & Metrics Box Click on Metric of Interest © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative MIT More Features Search by Title on Cycle Time Search by Metrics on Cycle Time-Order to Delivery © Massachusetts Institute of Technology, 2000 Lean Aerospace Initiative LEM 2000 MIT ! ! ! ! More Robust More Versatile More Useful Work in Progress © Massachusetts Institute of Technology, 2000