Lean Aerospace Initiative
Industry/Government/Labor/
Academic Partnership
Introduction to LAI
September 26, 2001
Earll M. Murman
LAI Co-Director
murman@mit.edu
617-253-3284
Lean
Aerospace
Initiative
Agenda
➢ Why LAI?
➢ How does LAI work?
➢ What use is LAI to others?
➢ How far has LAI come and
where will we go next?
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Lean
Aerospace
Initiative
Why LAI?
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Lean
Aerospace
Initiative
1993 Genesis of the
Lean Aerospace Initiative
US Air Force asked:
Can the concepts,
principles and practices of
the Toyota Production
System be applied to the
military aircraft industry?
•
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Answer:
Yes!
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Lean
Aerospace
Initiative
Historical Industrial Paradigms
1885
1913
1955-1990
1993-...
Craft Production
Mass Production
Toyota Production
System
Lean Enterprise
Machine then harden
Fit on assembly
Customization
Parts interchangeability
Moving production line
Production engineering
Workers don’t think
Highly skilled
workforce
Low production rates
High cost
Unskilled labor
High production rates
Low cost
Persistent quality
problems
Inflexible models
Worker as problem
solver
Worker as process
owner enabled by:
-- Training
-- Upstream quality
-- Minimal inventory
-- Just-in-time
Eliminate waste
Responsive to
change
Low cost
Improving
productivity
High quality product
“Lean” applied to all
functions in
enterprise value
stream
Optimization of value
delivered to all
stakeholders and
enterprises in
value chain
Low cost
Improving
productivity
High quality product
Greater value for
stakeholders
“Lean”
“Lean”isiseliminating
eliminatingwaste
wasteininorder
ordertotocreate
createvalue
value
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Lean
Aerospace
Initiative
Some Lean Lingo
➢ Muda - Japanese word for “waste” - 7 wastes
➢Overproduction, waiting time, transportation,
inventory, processing, movement, rework
➢ Value - Something of worth to someone else
➢ Function/cost or Function/(cost x time)
➢ Kaizen- continuous incremental improvement
➢ Pull - Downstream activities determining upstream
activities
➢Implemented by Kanban
➢ Single piece flow - performing a complete series of
actions on one part, rather than a single action on may
parts
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Lean
Aerospace
Initiative
Lean Aerospace Initiative
Consortium
➢ Airframe, engine, avionics, missile
and space companies
➢ Air Force agencies and System
Program Offices (C-17, F-22, JSF,
Training)
➢ NASA, Army, Navy representatives
➢ Pentagon—OSD, AF HQ
➢ United Auto Workers, International
Association of Machinists
Purpose
To instigate, enable and support an industrial revolution in
aerospace as significant as mass production
Phase
PhaseIII
III--$4M/yr
$4M/yr--50%
50%Government
Government••33%
33%Industry
Industry••17%
17%MIT
MIT
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The Lean Aerospace Initiative
Community
Lean
Aerospace
Initiative
Avionics/Missiles
Space
BAE Systems North America
Hewlett Packard
Northrop Grumman ESSS
Raytheon Systems Co.
Raytheon Systems and Electronics Sector
Rockwell Collins, Inc.
Textron Systems Division
Boeing Space & Communications
GenCorp Aerojet
Lockheed Martin Space & Strategic Missiles
Northrop Grumman ESSS Space Sector
Spectrum Astro
TRW Space and Electronics
Airframe
MIT
Other Participants
Boeing Military Aircraft & Missiles
Boeing Commercial Airplane Group
Boeing Phantom Works
Lockheed Martin Aeronautical Systems
Northrop Grumman ISS
Raytheon Aircraft Co.
Sikorsky
Center for Technology, Policy,
and Industrial Development
School of Engineering:
Aerospace
Mechanical
Sloan School of Management
UAW
IAM
AIA
DSMC
IDA
International Collaborations:
Linköping University
Warwick, Bath, Cranfield
Nottingham Universities
Propulsion/Systems
US Air Force
Other Government
Curtis Wright Flight Systems
Parker Aerospace
Hamilton Sundstrand
Pratt & Whitney
Rolls Royce (N.A.)
Aeronautical Systems Center
Air Force Research Laboratory
(Materials and Manufacturing Directorate)
Space and Missile Center
SPOS: JSF, F-22, C-17, Training (JPATS)
DCMA
NASA
NAVAIR
AMCOM
OUSD(AT&L)
NRO
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Lean
Aerospace
Initiative
LAI Vision of the Greater
Aerospace Enterprise
“Delivering military aerospace products at
significantly reduced costs and cycle time
while meeting or exceeding performance
expectations and enhancing the
effectiveness of our national workforce”
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Lean
Aerospace
Initiative
LAI Mission
“To enable fundamental
change within industry and
government operations that
supports the continuing
transformation of the US
aerospace enterprise towards
providing aerospace systems
offering best life-cycle value”
AA system
system offering
offering best
best life-cycle
life-cycle value
value delivers
delivers best
best value
value in
in mission
mission
effectiveness,
effectiveness, performance,
performance, affordability
affordability and
and sustainability
sustainability at
at the
the right
right
time
time and
and right
right price—advantages
price—advantages retained
retained throughout
throughout product
product life.
life.
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Lean
Aerospace
Initiative
How does
LAI work?
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Lean
Aerospace
Initiative
Consortium Governance
Co-Chairs
Co-Chairs
Government
Government(Lt
(LtGen
GenReynolds)
Reynolds)
MIT
MIT(Dr.
(Dr.Sheila
SheilaWidnall)
Widnall)
Industry
(Mr.
James
Industry (Mr. JamesPitts,
Pitts,NGC)
NGC)
Executive
ExecutiveBoard
Board
Senior
Senior executives
executives from
from
member
organizations
member organizations
Co-Directors
Co-Directors
MIT
MITEngineering
Engineering(Dr.
(Dr. Earll
Earll Murman)
Murman)
MIT
Sloan
School
(Dr.
Tom
MIT Sloan School (Dr. TomAllen)
Allen)
Stakeholder
(Mr.
Fred
Stahl)
Stakeholder (Mr. Fred Stahl)
LAI
LAIOperations
Operations
Joint
Jointteams
teamsfrom
fromMIT,
MIT,industry,
industry,
government
and
organized
government and organized labor.
labor.
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Lean
Aerospace
Initiative
Knowledge
Knowledge
Deployment
Deployment
LAI Team Structure
Product
Product
Development
Development
Supplier
Supplier
Networks
Networks
Organizations
Organizations
&& People
People
Lean
Lean
Enterprises
Enterprises
Manufacturing
Manufacturing
Systems
Systems
Acquisition
Acquisition
Team
Team Compositions:
Compositions: MIT,
MIT, Industry,
Industry, Government,
Government, Labor
Labor
Team
Team Sizes:
Sizes: 20
20 -- 80
80 members
members per
per team
team
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Lean
Aerospace
Initiative
LAI Consortium Process Flow Shared Roles and Responsibilities
Industry,Labor,
Government
MIT
Research Priorities
Experience
Implementation
Imperative
Enablers:
LAI [Teams
Leadership
Research
Data
Awareness
Products
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Lean
Aerospace
Initiative
What use is
LAI to others?
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Lean
Aerospace
Initiative
LAI Product Value Stream
Tools:
Lean Enterprise Model
Transition to Lean Roadmaps
Research
Lean Enterprise Self Assessment Tool
Real time
Implementation
Publications
Policy
Recommendations
Web site
Workshops
Training
Curriculum
Students
Stakeholder Defined Value
Knowledge Base • Implementation Framework • Research Products • Neutral Forum
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Lean
Aerospace
Initiative
Lean Aerospace Journey And
LAI Products
“Lean
Enterprise
Value”
Lean
Enterprise
Lean
Enterprise
Model
Lean
Factory
Lean
Auto
Factory
Executive
Lean Enterprise
Self-Assessment
Tool (LESAT)
Transition to Lean
Roadmaps
Toyota
Production
System
Picture
of
airliner
1993
LAI
Phase I
1996
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LAI
Phase II
1999
LAI
Phase III
2002
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Lean Enterprise Model
Lean
Aerospace
Initiative
Practices and Benchmark Data
Meta-Principles/Enterprise
Meta-Principles/EnterprisePrinciples
Principles
Enterprise
EnterpriseLevel
LevelMetrics
Metrics
Overarching
OverarchingPractices
Practices
Identify & Optimize
Enterprise Flow
Assure Seamless
Information Flow
Optimize Capability &
Utilization of People
Make Decisions at
Lowest Possible Level
Implement Integrated
Product & Process
Development
Develop Relationships
Based on Mutual Trust &
Commitment
Continuously Focus on
the Customer
Promote Lean
Leadership at all Levels
Maintain Challenge of
Existing Processes
Nurture a Learning
Environment
Ensure Process
Capability and
Maturation
Maximize Stability in a
Changing Environment
Metrics - Barriers - Interactions
Data
Sheets
(~225)
Enabling
EnablingPractices
Practices(~
(~60)
60)
Metrics
Metrics-Data
-Data- -Barriers
Barriers- -Interactions
Interactions
Supporting
SupportingPractices(~300)
Practices(~300)
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Internet
Links
(~600)
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Lean
Aerospace
Initiative
Enterprise Transition To Lean
(TTL) Roadmap
Long Term Cycle
Entry/Re-entry
Cycle
Adopt Lean
Paradigm
Focus on the
Value Stream
Initial
Lean
Vision
Develop Lean Structure &
Behavior
Detailed
Lean
Vision
+
Decision to
Pursue
Enterprise
Transformation
Enterprise
Strategic
Planning
Detailed
Corrective Action
Indicators
Focus on Continuous
Improvement
Outcomes on
Enterprise
Metrics
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Lean
Implementation
Framework
Short Term Cycle
Environmental
Corrective
Action Indicators
Create & Refine
Implementation Plan
+
Implement Lean Initiatives
Enterprise
Level
Implementation
Plan
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Lean Enterprise Self
Assessment Tool
Lean
Aerospace
Initiative
World
Class
1
2
3
4
5
As
se
ss
me
nt
Ma
tri
x
Tool for executive selfassessment of the present
state of “leanness” of an
enterprise and its readiness
to change
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Capability
maturity
model
Supporting
materials
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Lean
Aerospace
Initiative
Lean Enterprise Value:
Insights from MIT’s Lean Aerospace Initiative
Preface
Foreword
Acknowledgements
Part I Higher, Faster, Farther!
Chapter 1
The 21st Century Challenge
Chapter 2
The Cold War Legacy
Chapter 3
Monuments and Misalignments
Part II Better, Faster, Cheaper?
Chapter 4
Lean Thinking
Manuscript
To be delivered
Chapter 5
Islands of Success
to publisher
October
2001
Chapter 6
Lean Enterprises
Part III Creating Enterprise Value
Chapter 7
A Value Creation Framework
Chapter 8
Program Value
Chapter 9
Corporate and Government Value
Chapter 10 National and International Value
Chapter 11 Future Value
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Lean
Aerospace
Initiative
Student Development
Graduate Students in LAI
16 current MS & PhD students
8 Aeronautics-Astronautics
4 Technology & Policy
2 Technology & Management
1 Mechanical Engineering
1 Sloan School
1 USAF Fellow
57 graduated MS & PhD students
12 entered government service
10 entered aerospace industry
15 entered consulting industry
18 entered other professions
2 continuing studies at MIT
25 affiliated MS & PhD students
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Lean
Aerospace
Initiative
How far has LAI
come and
where will we
go next?
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Lean
Aerospace
Initiative
Strategic Impact of LAI
Journey of the Aerospace Industry
Craft
Mass
Production
Pre-1990
Lean
Production
The ‘90’s
Lean
Enterprise
Lean
Extended
Enterprise
The Future
LAI is extending “lean” knowledge and know-how
Complex products with low rate production
Whole enterprise
Extended enterprise including the government customer
LAI helps an important national industry accelerate a
fundamental, systemic transition from craft/mass to Lean
LAI educates
LAI is a new model for industry-government-academic-labor
collaboration
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Lean
Aerospace
Initiative
What’s New in 2001
➢ Renewed top level Air Force support
➢ Gen Lester Lyles: Get the message out!
➢ Mrs. Darleen Druyun—Endorsement
➢ Lt Gen Raggio—“LAI is delivering value”
➢ Phase III emphasis
➢ Lean Enterprise Self-Assessment Tool
➢ Curriculum, with other universities
➢ Graduates with “lean experience”
➢ LAI Follow-On (Beginning Sept 2002)
➢ Executive Board planning underway
➢ “Concept of Operations” — to be signed
by Co-Chairs at Executive Roundtable
(December 13)
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Lean
Aerospace
Initiative
Why Do We Need an
LAI Follow-On?
From LAI Executive Subcommittee (“G9”)
➢ Do for the rest of the enterprise
what we did for manufacturing
➢ Educate “everybody” about lean
➢ Sustain lean knowledge and
tools and help members use
them
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