Lean Aerospace Initiative Plenary Workshop April 1, 1998 Lean Sustainment Initiative Overview Presented By: Wes Harris MIT Manufacturing Technology USAF Dan Brewer ManTech LEAN SUSTAINMENT INITIATIVE l Background l Stakeholders’ challenges for LSI l Research agenda l Research progress l The future l Summary Outline LSI 3/31/98 - 2 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE Program Mgt SM Staff Weapon System Management Functions, and Structure Operational Commands User System and Sub-System Managers Management Engnrng SM Staff Depot Maint Organic Warehouse/ Distribution Function DLA Source Industry Located on an ALC LSI 3/31/98 - 3 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE ALC System Management and MRO Responsibilities System Management* Organic Depot Maintenance* Contract Depot Maintenance* OO-ALC ICBM F-4 Landing Gear Photo Recce ICBM F-16 C-130 (Cargo) Landing Gear ICBM F-16 Landing Gear OC-ALC B-52 C-135 Airframes CLS Aircraft Cruise Missile Engines B-52 B-1B C-135 Airframes Engines B-1B B-2 CLS Aircraft C-135 Airframes Guidance & Metrology WR-ALC F-15 C-130 C-141 SOF Aircraft Avionics/EC F-15 C-130 (SAM) C-141 C-5 Avionics/EC F-15 C-130 Mods Avionics ALQ-161 *All ALCs manage and repair many different “commodity subsystems” Typical Annual Expenses (FY99 projected): – New parts procurement - $6-7B – Organic depot maintenance - $3.2B (40% new parts costs) – Contract depot maintenance - $2.2B LSI 3/31/98 - 4 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE FAST TRANSPORTATION THE LEAN LOGISTICS “VISION” INNOVATIVE CONTRACTING TOP QUALITY y Bu Express Carrier Part Fails Base Repair Process High Velocity 5-12 DAYS INVENTORY AT BASES REENGINEERED PROCESSES Or g Re anic pa ir RESPONSIVE INFORMATION ct ra r nt ai CoRep Fast Repair Assessment Depot In-Transit REPAIR ON DEMAND LSI 3/31/98 - 5 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l WHAT IS LSI? A joint HQ AFMC/LGL and Air Force ManTech project to make available to the Lean Logistics community the unique research experience and capability of MIT in the area of lean principles, practices, and change strategies – Partnership – Research-driven change process – Systemic approach l Startup Phase – May 97-May98 – Three ALCs Multi-Year Activity LSI 3/31/98 - 6 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Establish collaborative relationship with MIT – l Characterize DREP, CREP, AREP Assist Lean Logistics stakeholders in developing integrated sustainment system for future – COMMERCIAL EXPERIENCE MIT LEAN EXPERIENCE Leverage what has been learned Assist Lean Logistics stakeholders in achieving present goals – l Start-Up Phase Objectives Analyze process for change, barriers, enablers MIT RESEARCH DREP AREP CREP Lean Logistics STAKEHOLDERS LSI 3/31/98 - 7 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l l l l Distill and disseminate existing lean knowledge-base to Lean Logistics community MIT researchers develop an understanding of AFMC Lean Logistics efforts Research world-class commercial repair practices and communicate lessons-learned Compare world-class commercial repair processes with AFMC processes to help define: – – – l Research Agenda Addresses Expectations of ALCs What to change What to change to How to change Facilitate three-way dialogue between MIT, AFMC and world-class commercial repair organizations – – Address all AFMC products and processes Define implementation strategies LSI 3/31/98 - 8 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Baseline research – – l Develop baseline definition of Air Force logistics system Define high-leverage areas for MIT research Focused case studies – – – l Research Agenda Conduct focused case studies across ALCs on selected Lean Logistics programs/topics Characterize status of Air Force Lean Logistics efforts Case study focus on: – Airframe overhaul (F-15 and KC-135) – Landing gear repair and overhaul – Lean Logistics information and decision support systems Recommendations to Lean Logistics community – – Immediate high-payoff change opportunities Longer-term research agenda Communication of lean principles and lessons learned is an on-going part of the LSI process LSI 3/31/98 - 9 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Baselined Air Force logistics and sustainment system – – l – – l Conducted site visits and field research (faculty and students) Interviewed senior Lean Logistics leadership Assessed status of Lean Logistics thrust – l Research Progress AREP: Aircraft Repair Enhancement Program DREP: Depot Repair Enhancement Program CREP: Contract Repair Enhancement Program Developed framework for identifying best commercial maintenance, repair and overhaul (MRO) practices Identified key priority areas for improvement and implementation strategies Lean principles and practices derived from Lean Aerospace Initiative used as a framework LSI 3/31/98 - 10 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Consolidate and validate initial observations – – l Document cross-cutting research results as well as case study findings Follow-up site visits at ALCs Identify best emerging logistics and sustainment practices – – l Current Activities Define major trends and developments Identify leading-edge practices and their impact Set stage for research on government-industry sustainment collaboration – – Exploratory benchmarking on selected topics Capture lessons-learned in achieving fundamental change LSI 3/31/98 - 11 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Key Lesson Learned It is essential to address the broader context impacting Lean Logistics to realize systemic change – – Lean Logistics is not an island but is embedded within larger, complex system Understanding larger institutional setting necessary for real solutions LSI 3/31/98 - 12 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Next Steps: Transition to LSI Phase II Bring closure to past work include: – Out-brief for senior AF Lean Logistics leadership – Identify lessons-learned from Start-up Phase research l Possible high-payoff topics include: – – – DoD sustainment financial management Supplier-chain integration Sustainment considerations in design, manufacturing, and modification/upgrade LSI 3/31/98 - 13 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE Strategy for the Future: LSI Phase II Create a collaborative process, involving government and industry sustainment stakeholders, to provide Agile Combat Support l l l Broaden stakeholder participation -- AFMC/LG, AF/IL, MANTECH, DUSD/Logistics, DLA, MAJCOMS, SPOs, commercial sector, labor, and MIT Working together as partners, design world-class AF sustainment system for twenty-first century Establish focus teams concentrating on specific high-payoff topical areas providing value to the Air Force sustainment community & nation LSI 3/31/98 - 14 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE Summary l Lean Sustainment Initiative well on its way toward assisting Lean Logistics stakeholders in achieving present goals l Start-up phase is a first and essential step toward realizing significant longer-term benefits l Need to start building a longer-term Lean Sustainment Initiative to achieve these benefits l Broader stakeholder participation necessary to maximize benefits for entire Air Force logistics and sustainment community LSI 3/31/98 - 15 ©Massachusetts Institute of Technology Back-up Slides LEAN SUSTAINMENT INITIATIVE l Lean Logistics is well motivated and moving in the right direction – – l Initial High-Level Observations Committed leadership, dedicated management at all levels, capable workforce Emerging success stories at ALCs should be a source of pride However, challenges facing Lean Logistics are numerous, complex and daunting – – Incremental systemwide improvements not readily discernible Difficult to evaluate progress measured against resources invested LSI 3/31/98 - 17 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE System Program Office Functions (Post-Production and Sustainment) SPO Program Management System Engineering - Safety / Technical Performance - Mod Development - Configuration Mgt. Contracting - Customer Support Configuration Mgt. Parts Replenishment Airframe Repair MRO Production (when required) LSI 3/31/98 - 18 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE l Joint Vision 2010 calls for focused logistics – l Future Vision The fusion of information, logistics and transportation technologies Global Engagement: A vision for the 21st century Air Force – “The efficiency and flexibility of Agile Combat Support will substitute responsiveness for massive deployed inventories” THE CHALLENGE: Providing Affordable Agile Combat Support LSI 3/31/98 - 19 ©Massachusetts Institute of Technology LEAN SUSTAINMENT INITIATIVE ALC Locations l Ogden ALC, Hill AFB (OO-ALC) l Oklahoma City ALC, Tinker AFB (OC-ALC) l Warner Robins ALC, Robins AFB (WR-ALC) l Sacramento ALC, McClellan AFB (SM-ALC)* l San Antonio ALC, Kelly AFB (SA-ALC)* * Outside Scope of LSI LSI 3/31/98 - 20 ©Massachusetts Institute of Technology