Lean Sustainment Initiative Overview Lean Aerospace Initiative Plenary Workshop

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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
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Background
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Stakeholders’ challenges for LSI
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Research agenda
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Research progress
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The future
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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
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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
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Startup Phase
– May 97-May98
– Three ALCs
Multi-Year Activity
LSI 3/31/98 - 6 ©Massachusetts Institute of Technology
LEAN SUSTAINMENT
INITIATIVE
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Establish collaborative
relationship with MIT
–
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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
–
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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
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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:
–
–
–
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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
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Baseline research
–
–
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Develop baseline definition of Air Force logistics system
Define high-leverage areas for MIT research
Focused case studies
–
–
–
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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
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Baselined Air Force logistics and sustainment system
–
–
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–
–
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Conducted site visits and field research (faculty and
students)
Interviewed senior Lean Logistics leadership
Assessed status of Lean Logistics thrust
–
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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
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Consolidate and validate initial observations
–
–
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Document cross-cutting research results as well as case
study findings
Follow-up site visits at ALCs
Identify best emerging logistics and sustainment
practices
–
–
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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
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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
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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
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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
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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
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Lean Sustainment Initiative well on its way toward
assisting Lean Logistics stakeholders in achieving
present goals
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Start-up phase is a first and essential step toward
realizing significant longer-term benefits
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Need to start building a longer-term Lean Sustainment
Initiative to achieve these benefits
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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
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Lean Logistics is well motivated and moving in the
right direction
–
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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
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Joint Vision 2010 calls for focused logistics
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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
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Ogden ALC, Hill AFB (OO-ALC)
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Oklahoma City ALC, Tinker AFB (OC-ALC)
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Warner Robins ALC, Robins AFB (WR-ALC)
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Sacramento ALC, McClellan AFB (SM-ALC)*
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San Antonio ALC, Kelly AFB (SA-ALC)*
* Outside Scope of LSI
LSI 3/31/98 - 20 ©Massachusetts Institute of Technology
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