Pioneering the Future of Aerospace:
Focusing On the Total Enterprise
Presented By
Debbie Nightingale
MIT
March 25, 2003
An LAI Plenary Conference
Celebrating Our Pioneering Spirits
The Wright Brothers as Innovators and Risk Takers!
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 2
The Lean Aerospace Initiative:
Pioneering the Future of Aerospace
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©Massachusetts Institute of Technology Nightingale- 032503 3
Where We’ve Been:
An Evolution In Thinking,
Products, and Process
Benchmarking for
Best Practices
A Lean
Understanding in
Aerospace Context
Focused
Research
The Beginning of
Enterprise Research
Deeper Dive
Into Content
Emerging Systems
Thinking
Identify “LowHanging Fruit”
Connecting
Discrete
Pieces
A Transition From
Waste Minimization to
Value Creation
Moving Closer to the
Front End
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 4
The Enterprise Value Phase:
YOU Told Us . . .
. . . Do for the rest of the enterprise what we
did for manufacturing
. . . Help make the government a lean
customer
. . . Educate industry and government in lean
practices
. . . Make lean a success for employees
across the enterprise
. . . Sustain lean knowledge and tools
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 5
LAI: Where We Are Going
Action Oriented,
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The Total US Aerospace
Fact Based . . . DeliveringEnterprise
Value to the
Value Creation
U.S. Aerospace Enterprise
Leveraging Consortium
Knowledge to Accelerate
Transformation
Total
©Massachusetts Institute of Technology Nightingale- 032503 6
The Total Enterprise
“A lean enterprise is an integrated entity that
efficiently creates value for its multiple
stakeholders by employing lean principles and
practices.”
– Lean Enterprise Value,
Murman et al.
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 7
A Total Enterprise Can Be . . .
A Program Enterprise
Value
A Multi-Program Enterprise
Value
Value
Value
Value
Value
Value
Value
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 8
. . . The Global Enterprise
INTERNATIONAL
Value
Value
US
Value
Value
Value
Value
Value
Value
Value
Value
Value
Value
Value
Value
Value
Value
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 9
Enterprise Value Focus And The Value
Proposition Network
Shareholders
End-Use
Customers
Society
Employees
Corporation
Value
Value
Enabling Infrastructure
Production
Engineering
Support
Value
Value
Value
Value
Value
Partners
Suppliers
Financial
Community
Buying
Customer
Enabling
Infrastructure
Logistics
Training
Academi
a
Unions
Processes And Value Propositions Of the Total Aerospace
Enterprise Are Highly Interrelated
Enterprise Approach Is Key to
Optimize Speed, Quality &
Efficiency Of Delivery Of Value
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 10
An Evolution In Consortium Priorities:
Enterprise Goals
LAI Mission: Research, develop and promulgate knowledge,
principles, practices and tools to enable and accelerate the
envisioned transformation of the greater US aerospace enterprise
through people and processes.
1.
2.
3.
4.
Support the on-going lean transformation of industry
Enable lean value-creating supplier base
Support lean transformation of the government
Educate and train stakeholders in value-creating lean
principles and practices
5.  Improve effectiveness of organizations and all the
employees across the total enterprise
6.  Support member lean implementation efforts by
sustaining tools and knowledge base and by sponsoring
outreach events
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 11
LAI Knowledge Cycle
6 LAI Goals
Achieve Total
Enterprise Value
Outcomes/
Measures
Experience and
Lessons Learned
Requirements
LAI
Consortium
LAI Community
Implementation
Knowledge
Deployment
Web
Curriculum
Workshops
etc.
web.mit.edu/lean
Consortium
Expertise
Research
Knowledge
Collection
Products/New Knowledge
Data
Site Visits
Workshops
etc.
©Massachusetts Institute of Technology Nightingale- 032503 12
Making the LAI Knowledge Cycle
Work For You
•
•
•
•
•
Providing expert knowledge
Facilitating MIT research
Participating in learning events
Deploying LAI transformation tools and knowledge
Providing timely feedback
Supply Chain/External Environment
• Legal
• Environmental
• Financial
• Information
• Procurement
• Engineering
Phase 0
Phase 1
Adopt Lean
Paradigm
Prepare
• Build vision
• Build vision
• Establish need
• Establish need
• Foster lean
Top
• Foster lean
learning
Leadership
learning
• Make the
• Make the
commitment
commitment
Commitment
• Obtain Sr.
• Obtain Sr.
Mgmt. buy-in
Mgmt. buy-in
• Integrate with
• Integrate with
Enterprise Level
Enterprise Level
• Establish an
Lean
• Establish an
Operations Lean Roadmap
Operations Lean
Implementation
Implementation
Team(s)
Team(s)
• Develop
• Develop
implementation
implementation
strategy
strategy
• Develop a plan to
• Develop a plan to
address
address
workforce
workforce
changes
changes
• Address Site
• Address Site
Specific Cultural
Specific Cultural
Issues
Issues
• Train key people
• Train key people
• Establish target
• Establish target
objectives
objectives
(metrics)
(metrics)
• Government Reqd. Systems
(MMAS, EVMS, etc.)
Enterprise / Production System
Interface• Quality
• Training and Human Resources
• Workforce/Management Partnership
• Safety
Phase 2
Define
Value
• Select initial
• Select initial
implementation
implementation
scope
scope
• Define customer
• Define customer
• Define value • Define value Quality,
Quality,
Schedule, and
Schedule, and
Target Cost
Target Cost
Phase 3
Phase 4
Identify
Value Stream
Design
Production System
• Record current
• Record current
state value
state value
stream
stream
• Chart product
• Chart product
and information
and information
flow
flow
• Chart operator
• Chart operator
movement
movement
• Chart tool
• Chart tool
movement
movement
• Collect
• Collect
baseline data
baseline data
• Develop a future
• Develop a future
state value
state value
stream map
stream map
• Identify takt time
• Identify takt time
requirements
requirements
• Review make/buy
• Review make/buy
decisions
decisions
• Plan new layout
• Plan new layout
• Integrate
• Integrate
suppliers
suppliers
• Design visual
• Design visual
control system
control system
• Estimate and
• Estimate and
justify costs
justify costs
• Plan TPM system
• Plan TPM system
Being Engaged as an Active Learner Here Today!
+
+
Phase 5
Phase 6
Implement Flow
Implement Total
System Pull
• Standardize
• Standardize
operations
operations
• Mistake proof
• Mistake proof
processes
processes
• Achieve process
• Achieve process
control
control
• Implement TPM
• Implement TPM
• Implement self• Implement selfinspection
inspection
• Eliminate/
• Eliminate/
reduce waste
reduce waste
• Cross train
• Cross train
workforce
workforce
• Reduce set-up
• Reduce set-up
times
times
• Implement cell
• Implement cell
layout
layout
• Implement visual
• Implement visual
controls
controls
+
+
Phase 7
• Select
• Select
appropriate
appropriate
production
production
system control
system control
mechanism
mechanism
• Strive for single
• Strive for single
item flow
item flow
• Level and
• Level and
balance
balance
production flow
production flow
• Link with
• Link with
suppliers
suppliers
• Draw down
• Draw down
inventories
inventories
• Reassign people
• Reassign people
• Re-deploy/
• Re-deploy/
dispose assets
dispose assets
+
Strive for Perfection
Expand
Internally/Externally
• Team development
• Optimize quality
• Institutionalize 5S
• Institute Kaizen events
• Remove system barriers
• Expand TPM
• Evaluate against
target metrics
• Evaluate progress
using lean maturity
matrices
ENTRY
IMPROVED
COMPETITIVE
POSITION
6/5/00
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 13
Real Work Right Now to Support
Consortium Goals
1.  Support the on-going lean transformation of industry
•
•
Conference Highlights:
•  Keynote by Dan Burnham, Chairman and CEO, Raytheon
•  Break Outs around “Experiencing Enterprise
Transformation” and Enabling Value to Multiple
Stakeholders
Consortium Highlights:
•  LESAT, EVSMA, PD Value Stream Mapping
2.  Enable lean value-creating supplier base
•
Conference Highlights:
•
•
Consortium Highlights:
•
web.mit.edu/lean
Break Out around “Aligning Suppler Value Streams”
Transformation tools : Supplier Network Toolkit
©Massachusetts Institute of Technology Nightingale- 032503 14
Real Work Right Now to Support
Consortium Goals
3.  Support Lean Transformation of the Government
•
•
Conference Highlights:
•  Keynotes by Gen Lyles, MGen Mushala, MGen Wetekam
•  Gen session with Lean Now! Prototypes and Break Out
around “Spiral Development Theory and Practice”
Consortium Highlights:
•  Lean Now! and Government LESAT
4.  Educate and train stakeholders in value-creating
lean principles and practices
•
•
web.mit.edu/lean
Conference Highlights:
•  Break Out around “Creative Approaches to Learning Lean”
Consortium Highlights:
•  Intro to Lean On-Line course and the LAI Educational
Network
©Massachusetts Institute of Technology Nightingale- 032503 15
Real Work Right Now to Support
Consortium Goals
5.  Improve effectiveness of organizations and all the
employees across the total enterprise
•
Conference Highlights:
•  Break Out around “Willingness to Change: Transformation
Through Innovation and Risk-taking
•
Consortium Highlights:
•  LARA Reports and LAI workshops
6.  Support member lean implementation efforts by
sustaining tools and knowledge base and by
sponsoring outreach events
•
Conference Highlights:
•
•
web.mit.edu/lean
Entire Conference!
Consortium Highlights:
•  WEB deployment channels
©Massachusetts Institute of Technology Nightingale- 032503 16
Are you Ready to Flap Your Wings?
Accelerating Lean Transformation … Across
Enterprise Boundaries"
Educate
Motivate
Innovate
"Isn't it astonishing that all these secrets (of
flight) have been preserved for so many
years just so we could discover them."
-- Orville Wright, 1903
photo credit: NASA / MOLA Science Team / O. de Goursac / A. Lark
web.mit.edu/lean
©Massachusetts Institute of Technology Nightingale- 032503 17