Fleet Readiness Center Southwest E2/C2 Product Line Fleet
Transcription
Fleet Readiness Center Southwest E2/C2 Product Line Fleet
5/22/2009 Fleet Readiness Center Southwest E2/C2 Product Line Briefing Points: • Naval Aviation Enterprise – Our business – Lean and HPO • Change Enablers • Developing a High‐performing E2/C2 Team Creating a High-Performing Organization – Transformation journey • Summary Joe Caoile 6 May 2009 Version 6 1 5/22/2009 Overview Naval Aviation is Unique ! AIMD NAE Guidance NAVAL AVIATION ENTERPRISE Enterprise Framework Enterprise Framework Vision "Naval Aviation Forces, Efficiently Provided and Ready for Tasking, Now and in the Future" Fleet Requirements CNAF / DCA Direct and Monitor Rqmts – Naval Aviation 2030 Goals Balance Current & Future Readiness Reduce the Cost of Doing Business Enhance Agility Improve Alignment Attain & Maintain Visibility Across the Enterprise The Fleet Providers Execute Rqmts Fund Rqmts Resource Sponsors OPNAV / HQMC and more . . . 2 5/22/2009 Naval Aviation Enterprise EnterpriseSystem System Naval Aviation Goals Naval Aviation Enterprise Goals -Established the Strategic Level Vision Commander Naval Air Forces Right Readiness at the Right Time at the Right Cost Commander, Fleet Readiness Centers Goals Training Aircrew Pers Training Techs Aircraft $$$ Procurement RFT Aircraft Production Flight Hours Flying Hour Program Readiness - Focused on Maintenance and Repair off aviation i ti systems t to t generate aircraft Ready for Tasking (RFT) On Time Delivery, At Unit Price Fix It Once, Fix It Right, Fix It On-Time Commanding Officer, Fleet Readiness Center, Southwest Goals Weapons Simulators Adversaries Ranges TAD Parts Metrics: RFT & CPH AVDLR AFM $$$ Fuel -Provides the right aircraft, part or service at the right time, in the right quantity to support operational level mission (RFT) Metrics: Readiness & Execution $$$ Organizational Level (O) Off-Aircraft Three Levels Maintenance of Aircraft Maintenance Depot Level (D) Overhaul Rework Produce at TAKT Times Meeting NAE Flightline and RFT Entitlement at or Below Budgeted Cost Fleet Readiness Centers Naval Aviation Maintenance Naval Aviation Maintenance Squadron Level Servicing Replace Parts -Established the priorities that will address strategic level gaps Meet Ready for Tasking Entitlements at Less Cost Pers NORTHWEST WEST MID ATLANTIC AIMD WHIDBEY ISLAND (Crane ALQ-99 workload) Site Patuxent River AIMD LEMOORE NADEP NI Det Lemoore Site Fallon NADEP NI Det Fallon Site Pendleton MALS-39 Pendleton NADEP NI Det Pendleton Site China Lake AIMD OCEANA AIMD Norfolk AIMD NAS Corpus Christi NADEP CP Det Oceana NADEP JAX Det Norfolk NADEP JAX Det Oceana NAWC Lakehurst X Det Norfolk EAST Site N. Orleans AIMD Atlanta (E-2C Support) NAVAIRES New Orleans NADEP CHERRY POINT MALS-14 Cherry Point AIMD Willow Grove FRC East Det Lakehurst Site Pt. Pt Mugu Site Fort Worth Intermediate Level (I) Component Repair -Afloat & Ashore On-Aircraft Maintenance Fleet Readiness Centers AIMD Atlanta (FA-18 Support) NAVAIRES Fort Worth Site Kaneohe Bay Site New River MALS-26 & 29 New River NADEP CP Det New River SOUTHWEST MALS-11 & 16 Miramar NADEP NI Det Miramar AIMD North Island NADEP North Island NADEP North Island DET NI Site Beaufort MALS-31 Beaufort NADEP JAX Det Beaufort SOUTHEAST Site Yuma MALS-13 Yuma NADEP NI Det Yuma Site Mayport AIMD Mayport NADEP JAX Det Mayport NAWCAD LKE Det Mayport NADEP JACKSONVILLE NADEP JAX Det Cecil Field AIMD Brunswick AIMD JAX Site Key West A MAJOR TRANSFORMATION IN DELIVERY OF AVIATION MAINTENANCE! 3 5/22/2009 Fleet Readiness Centers provide: In Times of Peace In Times of Conflict • “Ready & Controlled” Source • Partner & Peer to Industry • Last Source of Repair • Force-Multiplier • Operationally Ready • No Contract Required Distributed Maintenance Concept Fleet Readiness Center Southwest Maintenance, Repair, Overhaul Fleet Readiness Center Southwest A World Class Aviation MRO Facility supporting the World’s Greatest Team Sport – Naval Aviation FRCSW at North Island FRCSW Creating Value across the Enterprise Iraq Japan China Lake Whidbey Island Pt. Mugu Camp Pendleton North Island Kaneohe Miramar El Centro Yuma Lemoore Strategically Positioned to Support our Navy and USMC Warfighters A National asset, providing flexible, responsive, integrated maintenance solutions and cost-wise readiness to our nation’s Warfighters 4 5/22/2009 FRCSW: A Major Aerospace Complex FRCSW Competencies Aircraft Throughput 286 Total Aircraft FY08 47 H-60 8 AV-8B 63 H-1 28 EA-6B 9 H-53 H 53 10 E E-22 111 F/A-18 10 C-2 15% of the Hawkeye Industrial Forge & Drop Hammer Manufacturing Composite Repair & Manufacturing Laser & Water Jet Cutting Calibration & Materials Analysis Labs Shipping, Receiving & Tracking p Components Stress Analysis & Repair Component Design Engineering 29% of the COD Fleet Multi-axis & Chemical Machining Clean Room Component Repair Logistics $537 million annual revenue 81 Buildings, 2.6M sq. ft., 358 acres The largest aerospace employer in San Diego County Delivering the Right Readiness at the Right Cost Strategic Improvement Model Process Axis Product Axis F/A-18 PMI-1/CBR+ Lean Effort E-2/C-2 Value Stream Y = F(x) F/A-18 Manufacturing BB Project =Y FISC Supply Lean 6 Sigma E2/C2 PMI-2/PMI-3 SLEP Lean Effort E2/C2 Manufacturing BB Project Item Criticality GB Project Tech Library GB Project Material Testing GB Project =Y Business Unit Material Ordering Projects =Y CH-53, H-1, H-60 Lean Effort BOM Improvement Projects Components Lean Effort Manufacturing Lean Effort =Y A Holistic, Dynamic, and Closed Closed--looped System designed to meet NAE Goals and Objectives 5 5/22/2009 Holistic, Dynamic, and Closed Loop HPO+AIR Speed=FRCSW DIAGNOSTIC/CHANGE MODEL FOR BUILDING HIGH-PERFORMANCE World-Class MRO for the World’sORGANIZATIONS Greatest Team Sport High‐Performance Focus II-21 Commonwealth Centers FOR HIGH-PERFORMANCE ORGANIZATIONS ORGANIZATIONAL LEADERSHIP PHILOSOPHY What Is/should be the organization’s/unit’s beliefs (as expressed in its culture, behaviors, and systems) about the following: The “nature of people” and their attitudes toward work. How most people are motivated. The distribution of knowledge and creativity and, therefore, how decisions should be made. The “nature of work?” This is the feedback loop needed for fundamental change– i.e., Transformational Change 1. WHAT IS/SHOULD BE THE DEFINITION OF HIGH-PERFORMANCE FOR US? What are we trying to accomplish; what is our unique Mission/Niche; what is our Desired Future State? 2. HOW WOULD WE KNOW IF WE WERE HIGH-PERFORMING? How do/should we define the following elements of High-Performance? 1. QUALITY OF PRODUCTS AND SERVICES • Design and Features Quality • Execution Quality 2. CUSTOMER “VALUE” • Cycle Time • Convenience • Relationship/Responsiveness • Other How and at what levels are problems solved and decisions made? How and at what levels should they be solved/made? Is power shared appropriately in our organization/unit? Do we have organizational/unit “Change Mechanisms” at all levels of the organization to ensure that the “Work of Leadership” occurs appropriately (an effective “Parallel Organization”)? Do we have a good balance between “thinking” and “doing”? A good “handoff” between the two modes? Does our definition of high-performance require the simultaneous delivery of all three of these elements consistently over time – “PICK 3+”? According to whom are we high-performance? (see the “Environment Box” for detailed questions) Is our vision understood and shared by everyone at all levels of our organization/unit? Is there “passion” to achieve the vision? Cell-Based Cell Based Work Environment ENVIRONMENT AS9100 AS9110 Quality Mgmt. Systems 3. ACCORDING TO WHOM ARE WE HIGH-PERFORMING? Conduct a Strategic Customer Value Analysis (SCVA) looking at: Who are our customers and other stakeholders (food chain, beneficiaries, suppliers, collaborators/partners, others)? What do they “value” (wants/needs/expectations) now? In the future?Are there conflicting wants/needs/expectations) among our customers/stakeholders? Do we have effective/appropriate methods for setting priorities among them when necessary? Do we understand the politics of our environment? What other environmental changes/conditions are important for us? GAP How large/serious is the gap between our customers’/stakeholders’ wants/needs/expectations and our performance? Between our potential performance and our actual results? What must we do to narrow the gap? HIGH PERFORMANCE/RESULTS (Outcomes/Impacts) Do we know what our results (outcomes/impacts) are? Can we measure them in terms of Quality, Customer Value, and Financial Performance — PICK 3+? How well have we met our High-Performance definition in the judgment of our customers/stakeholders? AIRSpeed Tools: Linked Metrics Do we have an effective way to prioritize our actions? Lean Six Sigma TOC THEORY OF THE BUSINESS 6. HOW GOOD ARE WE AT DELIVERING OUR MISSION/NICHE? Are we as EFFICIENT as we can be in delivering our key products and services? Do we have the right strategy/structure/systems? Are they being done right? STRATEGY: Are our organization’s/unit’s “business model” (“economic engine”) and delivery strategy sound? Will they allow us to effectively/efficiently accomplish our Vision/Mission? What is our “competitive advantage” based on? Do we know our key business functions? Do we need to reengineer/reinvent? Do we have a sound approach to address “make” or “buy” decisions? How do we handle “surge” demand? Surplus capacity? Can we explain our key business assumptions and our causal model for getting results? STRUCTURE: Are we correctly structured to support our Vision and Strategy? Have we broken our work down correctly so as to most effectively deliver our products and services? Have we provided for the integration of the parts of the organization to produce a seamless higher-level whole? Should we use matrix, business centers, process/product structures, … ? SYSTEMS: Do we have the right support systems and work processes to most effectively/efficiently operate our organization/unit and deliver our products and services to customers? Are we as good as we should be in the execution of our strategy, structure, and processes? Do we have effective/efficient systems/processes in all the following areas: • Support Systems: human resources (i.e. do we have the right people with the right skills, competencies, attitudes, and behaviors and the right supporting HR systems for job design, recruitment, compensation, classification, retention, rewards, appraisal, accountability); financial/procurement; facilities and equipment; information and communication, technology, etc. Have we put our systems “under control?” • Work Processes: do we have the “right” work processes and are we “doing them right?” Have we put our processes “under control?” • Work Management & Control Processes: does every member at every level of the organization have the systems/competency to monitor/take appropriate corrective actions on their key success factors? Can we measure our success? Do we have the tools – e.g., Balanced Scorecard? • Continuous Process Improvement: do we have the tools/discipline for continuous process improvement – e.g., Lean/6 Sigma/ToC, Reengineering, Baldrige? Financial/ Resource Plan Do we have an efficient financial/ resource plan for tying together work-load forecasting, budget/ financial planning, and human resources/ facilities/ technology planning Do our systems give us adequate financial/ resource management data? PEOPLE + WORKFORCE DEVELOPMENT Strategic Plan + Operational Plan = Business Plan solutions@highperformanceorg.com www.highperformanceorg.com Do we have a sound Business Plan for our organization/unit? Cell‐based work environment Workplace and workforce ready environment Linked Metrics Catch‐ball – vertical and horizontal understanding of KPI understanding of KPI’ss Micro‐business Strategic Business Teams (SBT) ‐ Customer‐focused organizational structure Mission/Niche + Theory of the Business = Strategic Plan Do we have a sound Strategic Plan for our organization/unit? VER 4.7/21/2008 Airspeed Toolsets Lean, TOC, Six‐Sigma practices Best Industry Practices (Compliance e.g. AS9110, ISO‐1400, MB, etc.) Removing the barriers for market entry People Focus (Learning and Growth) Developing the leaders and workforce of today and the future © 1989-2008 Commonwealth Center for High-Performance Organizations, Inc. – permission to use for non-commercial purposes granted with citation E2/C2 PRODUCT LINE High Performance Journey For More Info, Contact: FRCSW_PAO@navy.mil (619) 545-3415 Maintenance, Knowing our customers and our customers knowing us intimately Box” here to answer questions about our microbusiness partners, beneficiary and food chains, other stakeholders, competition and our environment; can we demonstrate (measure) how effective we are at meeting our customers’/stakeholders’ wants/needs/expectations around these products and/or services? Develop the Micro Businesses Action Plan Are our day-to-day actions/behaviors/policies/ programs tested against our End and Means Values and our Work Culture? ARE WE DELIVERING THE RIGHT “WHAT” – RIGHT KEY PRODUCTS AND SERVICES TO THE RIGHT CUSTOMERS WITH EXCELLENT CUSTOMER VALUE? Are we as EFFECTIVE as we can be in serving our customers? Specifically, what is/should be our organization’s/unit’s unique niche? Who would miss us if we were gone? What are/should we be taking responsibility for accomplishing in the near future (three – five year concrete mission); longer-term (ten to thirty year “major impact” goal)? How does our mission/niche contribute to accomplishing the overall vision of the larger whole? What are/should be our key products and services? How do we know they are the right ones? Are we delivering our products and services with excellent customer value? With whom do we need to integrate/collaborate/partner to accomplish our and the larger whole’s vision? NOTE: also apply the results of the SCVA analysis (answers the 3. “ACCORDING TO WHOM?” question) done in the “Environment TACTICAL/OPERATIONAL PLAN Do we have an effective Tactical/ Operational Plan connecting our action plan and financial/ performance plan to our strategic plan? Do we have clear “tactical” goals and objectives at every level of the organization to operationalize our strategic plan and ensure results which meet customer needs? 7. HOW ARE WE GOING TO TREAT EACH OTHER AND OUR CUSTOMERS/STAKEHOLDERS? What “Means Values” are we going to use to guide/bound the decisions, actions, and behaviors of our organization/unit and each of us personally? Is our organization/unit Work Culture conducive to accomplish-ing our vision? What do we need to do to improve our Work Culture? On What Customer Focus (Naval Aviation Enterprise) MISSION/NICHE 5. This loop also misses the Mission/Niche and Strategy/Structure/Systems change levers 4. WHY DO WE NEED TO BE HIGH-PERFORMING IN THE FIRST PLACE? Why isn’t “good” good enough? What are the “End Values” we are seeking? What is our ultimate/core reason for being – our “Higher Moral Purpose?” This “End Values” work starts the “Vision Spiral.” 3. FINANCIAL PERFORMANCE • Revenue/Cost • Affordability • “Profitability” (or equivalent measure) • Other Executive Steering Committee These are the “normal” feedback loops for most organizations; these loops lead to Transactional Change; they miss the Leadership, Vision, Values Change Levers Focus VALUES Performance Organization FORM FUNCTIONS Are the Functions of Leadership (as well as the “functions of management”) getting performed at all levels of the organization? What is the appropriate content at each level? Strategic Customer Value Analysis (SCVA) Vision/ValuesStrategy/Structure/Systems Suprasystems Integration/Stewardship Learning/Thinking/Changing/Renewing Enabling/Empowering/Energizing High Naval Aviation VISION What should be our organizational/unit “nature of work” paradigm and Leadership Philosophy? “Networked Talent” Model vs. “Industrial” Model “Leadership/Management/Task/Team Skills” as “job” vs. ”Task-only” as “job” “Consultative/participative” leadership philosophy vs. “exploitative/benevolent autocratic” leader-ship philosophy Repair, Overhaul Fleet Readiness Center Southwest Fix it Once, Fix it Right, Fix it On Time 6 May 2009 Charlottesville, VA Version 6 6 5/22/2009 E2/C2 Change Model have to explain why the affected people should want to change, and thereby cultivate readiness Mo tiv ati on change management is clear: In a nutshell, you Need much as they resist “being changed.” So the job of Ch C ha an ng ge e “It’s often said that people don’t resist “change” so s es in ns tio ad e Ac R Outcome Outcome Vision Vision Clarity Clarity Compelling Compelling Desire Desire Incentive Incentive Willingness Willingness WIIFM WIIFM Ability Ability Knowledge Knowledge Skills Skills Resources Resources Support Support Collaboration Collaboration Reinforcement Reinforcement Positive Positive Feedback Feedback Rewards Rewards Acknowledgement Acknowledgement Recognition Recognition Celebration Celebration instead of resistance.” C h a n g e T a c tic s Excerpted from Brien Palmer, Making Change Work: Practical Tools for Overcoming Human Resistance to Change, ASQ Quality Press, 2004, pages xv-xvi, 7-9 PP lla a nn yy o o uu rr W Wo o rrkk H a v e a c le a r ly d e fin e d o b je c tiv e a n d p la n W Wo o rrkk yy oo uu rr PP lla a nn E x e c u te th e p la n in a d is c ip lin e d m anner M M ee a a ss uu rree yy o o uu rr W Wo o rrkk W Wo o rrkk yy o o uu rr M M ee a a ss uu rree ss M e a su re th e re le v a n t le a d in g a n d la g g in g m e a su re s I s o la te t h e R o o t C a u se s , c o rre c t th e m a n d im p le m e n t c o n t in u o u s im p ro v e m e n t Information Concerns • What are we trying to do? • What is required? Concerns and Issues that we had to address for change to occur address for change to occur • What is wrong with the way things are right now? • What Wh t iis the th scope off our activities? ti iti ? • How much can we do? • How fast should we do it? • Is leadership on board with what we are trying to do? • Other information concerns? 7 5/22/2009 Personal Concerns Implementation Concerns • What do we do first? Second? Third? Etc. • WIFM? • How do we manage all the details? • How will this impact me? • Who will manage all the details? • How will this impact my organization? • What happens if we run into opposition? Who do we go to for help? • How will I find the time to do what is being asked of me? • Will I have to give up something? • Do I need new knowledge or skills? • How long will this effort take? • Do we have the right resources? • Other implementation concerns? Impact Concerns Collaboration Concerns • Is this effort worth it? • Will this effort make a difference? • Who else should be involved? • How H will ill we k know? ? • How do we get others to get involved? • How much will this cost? • How do we spread the word and to get buy in? • Other impact concerns? • Other collaboration concerns? 8 5/22/2009 What happens when we don’t answer the concerns? The Human Side of Change “It’s all about people” X Clarity of purpose Skills Incentives X Skills Incentives Clarity of purpose Skills Incentives X Clarity of purpose Skills Incentives Clarity of purpose Skills Incentives Clarity of purpose Resources Resources Action Plan Success Confusion Action Plan Anxiety Resources Action Plan Gradual Change Resources X Action Plan Frustration Resources Action Plan E2/C2 Product Line Norming Storming X False Starts Withdrawing Forming Clarity of purpose Skills Incentives Resources Action Plan Success Failure Improving Performance and The Problem Developing a High Performance •Product line experienced significant challenges E2/C2 Team •Diminished customers’ confidence: The Journey – In Team’s ability to deliver on time, cost-wise, quality products – Quality problems elevated the issues 9 5/22/2009 The Challenge •Improve overall performance •Restore customers’ confidence in NADEP North Island’s Island s ability to produce: Quality The Goal • Restore customers’ confidence quickly. • Identify the bottlenecks and constraints – create flow • Reduce work-in-process and deliver promised products. products • Identify the sources of quality problems and resolve them. Cost-wise • Restore the workforce confidence in it’s ability and capacity to produce. Ready for tasking E2 and C2 aircraft • Create a high-performance Team. The Plan Team Assessment • Short Term: Phase 1 – Lean Focused Meet customers and get clarity on their needs. Meet the workforce and convey the sense of urgency. Meet key team leaders/members and identify their areas of concerns and issues. Review current capabilities and capacities – strengths and weaknesses Implement and accelerate AIRSpeed activities focused on flow and throughput – unclog the bottlenecks Deliver quality products as promised Control and reduce overall costs. • Long‐term: Re‐make the current team into a High‐performing Team that produces on time, affordable, reliable products. Phase 2 – TOC focused Phase 3 – Six Sigma focused Phase 4 ‐ CPI • Success Barriers – Material concerns – People concerns • Short‐term team decisions and actions – Create flow – Lean Visual factory – Improve quality – Improve workforce capability 10 5/22/2009 Understanding the Material Issues e ftw ar D at ck h – Going behind the system because we – Failure to move parts timely to destinations in the material support value streams 2 10% 0 0% IT Frequency 20% Ordering from multiple sources – Poorly controlled back‐robbing and diverting – Hoarding – Failure to properly preserve, handle, and store material in custody – So ed ba Te c ur ce d ro y/ P 40% 30% – don't trust the delivery dates and exacerbating the problem • Po l ic Fe p ng ffi rs hi St a w ne O 60% 50% 4 Da ta 0% 70% 8 6 E& E So ft w are 10% 0 90% 80% 12 10 Pa y Fe ed ba ck 20% 2 l Ordering more than is needed 14 Te ch 30% 4 in – 100% 18 16 ffin g O wn ers Po lic hip y/P ro ce du re s 6 Tr a Ordering too late in the process in in g 40% Con ntribution 50% 8 IT 60% 10 a 12 E& E 70% es 14 Pa y 80% er ia – 100% 16 M at E2/C2 Barriers-to-Success Factors 20 90% in g Fre equency 18 Poor Product Line behaviors: Sta 20 • Tra Team Primary concerns: Lack of Material and need for Training M ate ria l E2/C2 Barriers-to-Success Factors Contribution E2/C2 Barriers-to-Success Factors Product Line Specific Concerns Ineffective communication with all the players Inadequate Internal and External Supply Chain: – Not adequately postured to provision fleet needs – Local Manufacturing – this critical source is not agile Level Loading Reduce Setups Create Flow Create flow Link Suppliers Value Stream Map: Understanding the current process flow TPM Balanced Score Card Lean Production Vision Vision We Weare arethe the Leader Leaderin inE2 E2 and and C2 C2innovative innovativeaviation aviationmaintenance maintenance solutions, solutions, committed committedto to customer, customer, workforce, workforce, and and community community Begin Disassembly to Assembly Teaming process Assembly Load profile established Early material ID and demand process FISC (Supply) single supply broker Purge all spares from all shops and lockers Medical Surveillance (organic and contractor) March Complete review of all skill and certification requirements WarfighterWarfighter- Focused Focused Delivery Delivery 4T’s (Right Tools, Training, Tech Data, Time) in place AIRSpeed Basic Training Complete Improved Technical Training and documentation April May Customer Customer Significantly reduce FOD CostCost-wise Aircraft RFT and Restored Customer Confidence Improved Product Quality Zero critical ADR defects Zero critical DWO and QCN deficiencies Internal Internal processes processes Organizational Organizational Capabilities Capabilities Trained artisans and technicians R Requirement i t Improved p o ed Workforce capability Trained Support Staff Financial Financial Health Health Improved IT and Software support June July Warfighter-Focused Warfighter-Focused Responsiveness Responsiveness Reduce Variation E2/C2 Barriers-to-Success Factors 100% 18 90% 16 80% 14 70% 12 60% 10 50% 8 40% 6 30% 4 20% 2 10% Factory Factory Consistent Consistentproduct product quality quality and and reliability reliability Implement Implement Standard Standard work w orkand and Six SixSigma Sigma Provide Prov ide Airspeed Airspeed Training Training (Lean, (Lean, TOC, TOC,and and Six Six Sigma Sigma Create Createpartnership partnership with with Engineering, Engineering, Quality Qualityand and artisans artisans Budget Budget and and invest investin in Airspeed Airspeed Training Training and and support support Improved Improved w orkforce workforce capability capability Autops y Create CreateaaLean-cell Lean-cell and and Skill-based Skill-based training trainingand and certification certification Establish Establish an an E2/C2 E2/C2 University University Budge t and Budget andinvest inv est in inestablishing establishing Standard ork and Standardw work and Six SixSigma Sigma Forec ast IMA C Budget est Budge tand and inv invest in in establishing establishingan an E2 E2 /C2 /C2 University University Warfighter Focus Measure “How “How isisthe the current currentprocess process performing?” performing?” Purchase Orders Placed Order & Track Purcha se Orders Placed Receive & Position IIR/ACWT Analyze “What “Whatisisdriving driving the the current current performance?” performance?” Six Sigma Culture IT E& E Sof tw ar e Pay Fe ed ba Tec ck h Da t 0% M a te ria l Tra in in g Sta ffi ng O w ne Po rs lic hi y/ p Pro ce du 0 Implement Implement Lean Lean and and Visual Visual Contribution 20 Improve “What “What solutions solutions would would positively positively impact impactcurrent current performance?” performance?” throughput throughput Long-term Long-term Disciplined Disciplined Actions Actions “What “Whatcritical critical customer customer measure measure should should we we focus focuson?” on?” Control “What “Whatcontrol control plan plan will willensure ensure improvement improvementisis sustained?” sustained?” Improved Improvedproduct product flow flowand and 20 Define August Action Plan: Establishing new behaviors Frequency Mission-Focused Mission-Focused Reliability Reliability Improved product Flow and Throughput Visual Factory Implement standard work and SOPs for every cell Develop new behaviors concurrent with new Cell flow Eliminate production bottlenecks POU Tools, equip, PEB, Hazmat, TD Other E2/C2 Kaizen events Implement Engineering, Quality, Production Teaming Review, measure, and analyze current cell behaviors Determine level off ttraining i i Forecast and IMAC precedes Pre-induction Mission Mission Consistently Consistentlydeliver deliverquality, quality, cost-wise cost-wise ready-for-tasking ready-for-taskingE2 E2and and C2 C2aircraft aircraft to to the the warfighter warfighter E2/C2 Product Line Short Term Actions Product Line Specific Concerns Change Readiness: Understanding the barriers to success E2/C2 Product Line Path to Excellence 11 5/22/2009 E2/C2 Airspeed Phased Approach Phase 1 Phase 2 Phase 3 Phase 4 Establish New Behaviors Synchronize Internal and External Supply chain Reducing Variation Sustaining Gains Lean Focused: Focused: •6S •VSM •FISC - SingleSingle-Supply Broker •Divest excess material •POU environment •Cell Cell--based •Visual Factory •Standard Work •Single piece flow TOC Focused: •Customer –Induction rhythm – workload leveling •External E t l Supply S l –NAVICP –DLA •Internal Supply Six Sigma Focused •Improve throughput and Yield –Hidden factories –Defects D f t –Scrap –Material delivery –Process capability –FISC –Depot •BOMS/BOWS - accuracy –Right work –Right place –Right time –Right people –Right Quality –Right Cost Continuous Improvement Before Airspeed •Lean-Sigma organization •Cellular – lean production •ISO/AS9110 •War Rooms –Production –Material –Admin Before AIRSPEED E-2/C-2 - Single Piece Flow After Airspeed Synchronized Pull system based on Fleet Flight line Requirement C2 S LE P E LE CTRICA L B UILDUP 85' 52' 40' 85' 85' E 2 A S S E M B LY C2 A S S E M B LY 41' 41' 37' E2 E 2 / C2 DIS A S S E M B LY E&E E2 M E TA L E&E E LE CT M E TA L DITM CO E LE CT C2 S LE P C2 S LE P C2 S LE P E LE CT M E TA L M E TA L 14' 75' 17' C2 S LE P K IT CA G E After AIRSPEED 12 5/22/2009 Before POU Tool “The MUDA Pile” POU Team Special Gear POU Team Toolboxes 13 5/22/2009 Orange Cell – Designed for Orange Cell – Disassembly and Kitting Blue Cell Consumable Tool Vending Machine Cell-Based Work Environment E2/C2 Cell-Based Work Environment (CBWE) Key Features: VISUAL FACTORY Customer (TYCOM) Input •Assembly will be the “drum-beat” •Entire Supply-chain will have to react to that drum-beat Disciplined Planning JIT (RFT) Delivery Fligh Flightt Line Line GB •Moving line – balance the activity of upstream activities tomatch the drumbeat MRT MRT •Measure individual cell performance – reduce any variation n i cell yield (Six Sigma) A cell based work environment is designed to deliver to customers' requirements. To do this, the cell environment must have the appropropriate framework and support infrastructure that will support flow and throughput. Critical to this is in making sure that all the logistics elements, cross-functional processes, standard operating procedures, and performance measures are in place and available to the cell in order to succeed. Finally, for CBWE to work, the framework and infrastructure must be organized and aligned in the way work is actually done. •Cell-based Staffin g C2 S LEP E LECTRICA L B UILDUP 10 ILS 85' 52' E& E E2 E2 / C2 DISA SS EM B LY M E TAL E &E ELE CT M E TAL DITM CO E LECT GB 40' 85' 85' E 2 AS SE M BLY C2 AS SE M B LY 41' 41' Elements of a good CBWE: 37' 1. Workload is loaded according to customer requirements (right takt, cost, and specifications) E2 Workload Assembly Kitting d uring Disassembly C2 SLE P C2 S LEP E LECT M E TA L C2 SLE P 14' M E TA L 75' 17' Customer Feedback Cell Weekly 6S Inspections – AIRSPeed Warrior Program C2 SLE P K IT CA GE Controlled Execution QA Cell Audits 2. Visual factory environment - eliminates confusion and non-value added activities p of p people p to veryy specific p cell-based-work-sequenced q tasks 3. Focuses on availabilityy and competence 4. Mandates availability of required material - (synchronized supply chain) 5. Mandates the availability, access and suitability of cell-based tools, equipment, and consumables 6. Mandates the availability, access and currency of technical information Engineering/Quality/Production Teaming (LEAN/Sigma Team) Continually measure the cell-based work environment’s (CBWE) ability to meet customer (quality, schedule, cost) demands CBWE Expectations: •Perform all assigned tasks – Multi (Skills, Trade, Schedule) •Maintain and sustain all 4Ms – SOPs/standard work •Maintain certifications and licenses •Quality at the Source – 3D’s (Don't get it; Don’t make it; don’t Send it) Moving towards a fundamental Shift in the way we deploy our people 7. Focuses on throughput (first-pass yield) through simplified and sequenced standard work 8. Measures leading (CBWE process capacity and capabilitiy) and lagging (quality, cost and cycle-time) metrics 9. Mandates the involvement of Engineering as the technical conscience, Quality as the process conscience, and Production as the execution conscience 10. Focuses on customer target variations and in isolating root causes to these variations 11. Focuses on continual process improvement - "Follow the standards. Find a Better Way". In the absence of a better way, follow the standards. 14 5/22/2009 E2/C2 Production War Room E2/C2 M t i l W R E2/C2 Material War Room ADMIN War Room NAMP Programs Overall Status SE/Tools and Facilities Manpower Training and IQR CM – Tech Data Control CBWE 6S Metrics Safety Quality 15 5/22/2009 Kitted Material Kitted Material EVAL C2 PMI-3/SLEP/Rewire Cycletime Performance 700 FY04 FY08 FY 04 FY 09 FY05 FY 06 350 C a le nda r D a y s 600 CalendarDays 500 400 300 EVAL Actual Spec E2 PMI-2 Cycletime Performance Spec 400 FY07 FY06 FY05 Actual FY 07 FY 08 FY 09 300 250 200 15 0 10 0 50 200 0 100 E534 E535 E536 E537 E538 E540 E541 E542 E543 E544 E545 E546 E547 E548 E549 E550 E551 E552 E553 E554 E555 E556 E557 E558 Airspeed Begins- 5S and Lean The Good: • 5S •CBWE •Single Piece flow •Established new good behaviors CBWE, SPF and Supply Chain synchronization Activities The Good: •Critical excess (locker buffers) eliminated •BOM Accuracy •Material forecast and IMACs – accurate ordering •New DCNs added •MFG Black belt •Moved fixtured workload to Bldg 250 The Bad: • DLA BB increased with BSM rollout; Back robs up •Unplanned 7R failures (surface ftgs, flap actuator, flap gearbox, landing gear) •Tail surfaces delayed – bits and piece material not available; Bldg 250 learning curve N 73 1 N 73 0 N 72 9 N 72 8 N 72 7 N 72 6 N 72 5 N 72 4 N 72 3 N 72 2 N 72 1 N 72 0 N 71 9 N 71 8 N 71 7 N 71 6 N 71 5 N 71 4 N 71 3 N 71 2 N 71 1 N 71 0 N 70 9 N 70 8 N 70 7 N 70 6 0 Airspeed Begins- 5S and Lean CBWE, SPF and Supply Chain synchronization Activities Airspeed and Supply chain synchronization Activities plus TOC The Good: •DLA BSM gets well – SMA effectiveness improves •Roadrunner implemented - TOC •Production and Material War Rooms deployed – early expediting and alternate material sourcing •PMI spec discipline – focus on non-matl solutions •Concert Program (AI) – Quality at point of execution deployed •Engines and props to Pt Mugu •F2F IMAC and increased BOM accuracy •Flights to sell improves – AoA BB; Assy/Testline process integration The Good: • 5S •CBWE •Single Piece flow •Established new good behaviors The Good: •Critical excess (locker buffers) eliminated •BOM Accuracy •Material forecast and IMACs – accurate ordering •New DCNs added •MFG Black belt •Moved fixtured workload to Bldg 250 The Bad: • DLA BB increased with BSM rollout; Back robs up •Unplanned 7R failures (surface ftgs, flap actuator, flap gearbox, landing gear) •Super Modules delayed - tail fitting failures and Bldg 250 learning curve Airspeed and Supply chain synchronization Activities plus TOC The Good: •DLA BSM gets well – SMA effectiveness improves •Roadrunner implemented - TOC •Production and Material War Rooms deployed – early expediting and alternate material sourcing •PMI spec discipline – focus on non-matl solutions •Concert Program (AI) – Quality at point of execution deployed •Engines and props to Pt Mugu •F2F IMAC and increased BOM accuracy •Flights to sell improves – AoA BB; Assy/Testline process integration 16 5/22/2009 E2C2 Logistics Supply Chain Management – Synchronizing the Supply Chain E2/C2 NIIN Frequency of all E2/C2 Pu rchase Orders created since MPT/STP Cut over 1/24/2008 Synchronizing Supply Chain Level Load Induction Schedule (TYCOM Distro Meeting) FISC, DLA, ICP info PMA of Material NonAvailability PMA-231: Lead, Monitor, oversea overall material health Info Fleet of Material nonAvailability and Get well plans N OT o n B OM s wi t h T r e nd l i n e s 2000 Over twe nty, 36 0, 5 % Te n to Twe nty, 46 4, 7 % 2004 1800 2005 2006 2007 C2 S LE P E LE CTRICA L B UIL DUP Nin e, 8 6, 1 % Eigh t, 113 , 2% Seven , 15 5, 2 % 1600 Focusing on the Risk On e Hi t: 1 R/7R, 168 , 2% 1400 Si x, 180 , 3% 1200 Fi ve, 2 70, 4% BOM universe of potential requirements On e Hi t: 9 C og, 166 3, 24% 324 5 Line Ite ms 46% One Fr e que ncy Fo ur, 3 61 , 5% Material Available One Hit: Cre dit Card , 49 3, 7 % One Hit: Focus Store, 124 , 2% Thre e, 6 19, 9% 1000 800 600 One Hit: Lo cal Man, 720 , 10 % 400 One Hit: Lo cal Purch ase, 77, 1% 200 Two , 11 49, 16% 0 De 62% of all E2/C2 Purc hase Orders les s then two Hits Fe Ja n c A c ftN O T o n B O M Two Three Four Fi ve Six Ten to Twe nty Seven Ove r twen ty Eigh t On e Hit: 1R/7R Ni ne On e Hi t: 9 C og One Hit: Cred it C ard One Hit: Fo cus Sto re On e Hit: Loca l Man On e Hi t: L ocal Pur ch ase Expedite or alternate source procurement Ma r A p r Ma y u J n b Au Se g p No De v c Fe Ja n Oc t Ju l Ma r A p r M a y Ju n b Au Se g p u J l No De v c Oc t Ju n Fe Ma r A p r M a y Ja n Au Se Ju ly e b No De Oc t g p t Fe Ja n v c Ju n Ma r A p r Ma y b Au Se g p t Ju yl e No De Oc t Fe Ja n v c Ma r A p Ma y b 6 9 0 7 07 8 3 4 1 2 6 8 7 4 8 6 9 7 8 8 5 7 1 6 9 1 5 8 4 507 6 4 2 4 7 7 7 9 4 5 5 9 7 6 0 7 4 4 7 7 6 8 3 8 2 4 7 4 8 6 05 5 3 3 4 3 4 3 3 0 2 9 0 8 2 6 1009 9 04 9 3 1 9 8 7 6 8 1 8 6 1 7 8 4 8 06 6 5 5 9 5 6 8 1 8 3 2 9 8 6 8 5 1 7 5 8 7 5 6 8 1 7 83 7 3 06 1 5 3 8 1 5 3 5 4 5 8 6 8 3 7 7 7 1 7 6 7 6 4 7 5 4 8 4 8 8 5 7 2 4 3 4 4 6 4 4 9 1 5 1 5 5 4 7 3 6 8 304 2 9 2 3 2 3 3 01 3 1 8 3 5 3 3 2 9 2 4 6 3 8 2 2 0 2 3 9 2 1 9 2 1 8 1 9 4 1 6 4 2 3 3 2 2 6 32 1 2 7 1 4 04 3 4 0 2 8 8 3 3 2 2 9 0 2 8 6 1 8 1 8 8 2 3 2 3 2 3 3 08 2 5 2 2 6 9 2 5 1 2 3 9 23 4 2 3 4 2 6 4 3 00 1 9 7 3 4 5 3 8 9 3 4 4 4 1 4 2 C o mp N O T o n B O M Critical Material not Available A lP g msN O T o n B O M 1 1 6 9 8 1 3 2 1 8 3 1 3 0 1 3 3 1 2 7 1 08 1 2 3 9 5 2 81 1 9 3 4 8 00 1 09 8 7 7 1 1 1 1 07 1 02 1 2 1 04 9 8 7 8 2 4 7 5 1 6 2 8 4 9 4 5 2 3 1 05 13 3 1 1 7 1 3 3 1 3 2 9 6 9 1 1 9 1 07 1 09 8 4 7 8 3 9 1 3 1 1 5 1 2 9 1 1 0 1 02 1 007 1 05 107 5 4 0 1 7 9 1 1 1 5 5 1 9 3 1 1 2 2 1 1 1 1 1 1 1 Acf t NOT onBOM Comp NOT on BOM Al l Pgms NOT on BOM Li near (Al l Pgms NOT on BOM) Li near (Acft NOT on BOM) Li near (Comp NOT on BOM) SBT 8Qtr Material Forecast FISC, DLA, ICP Review Striving for earlier identification of the requirement in the production sequence C2 Purchase Order Trends PreInduction IMAC Report Induct aircraft 85' 52' E 2 / C2 DIS A S S E M B LY M E TA L E&E E L E CT M E TA L 4 0' DITM CO E LE CT 8 5' 8 5' E2 ASSEM BLY C2 A S S E M B L Y 41 ' 41 ' 37' E2 E&E E2 C2 S LE P C2 S LE P C2 S LE P E LE CT M E TA L M E TA L 14 ' 75 ' 17 ' N71 6 P urc ha se Order Tre nds 25 0 Pu rc has e Or der s 20 0 M on th /Yea r 9/3 0/05 Induction 10/12/05 Disassembly 15 0 C2 S LE P K IT CA G E 1/17/06 E& E Sta rt 10 0 Source and Provision 3/10/06 E& E End 8/28/ 06 A ssembly 50 5 /1/07 Log S ell N71 8 P urcha se Order Tre nds 0 Ju n- 07 Ju l-0 7 Au g- 07 Se p- 07 No v- 06 De c- 06 Ja n- 07 F eb -0 7 M ar -0 7 Ap r-0 7 M ay- 07 M ar -0 6 Ap r-0 6 M ay- 06 Ju n- 06 Ju l-0 6 Au g- 06 Se p- 06 Oc t-0 6 Oc t-0 5 No v- 05 De c- 05 Ja n- 06 F eb -0 6 3 00 6/15/ 06 n I duction 6/26/ 06 Purc ha se O rd ers Purc has e Ord ers 2 50 8/15/06 E&E S tart M on th/Ye ar 2 00 9/15/06 E&E End 1 50 4/26/ 07 Assembly Star t 1 00 8/17/07 Log S ell 50 0 Ju n- 07 Ju l-0 7 Aug -0 7 Sep -0 7 Oct- 07 De c-0 6 Ja n- 07 F eb -07 M ar -07 Apr -0 7 M ay- 07 Ju l-0 6 Aug -0 6 Sep -0 6 Oct- 06 No v-0 6 Ju n- 06 C2 Inventory Material Availability Conference (IMAC) Source of Supply (SOS) Compared to Net Availability Purc has e Orde rs 3000 DLA/FISC Expedite Non-Avail. 100% 90% 2500 50% 40% 1000 FRC Product Mgr 30% 1000 800 Com po n en n ts 60% 1500 % of Av ailability Line Chart T Team C Coordinator di t FRC Info Technology G Com p one nt by Prog ram 80% 70% Trend Line 2000 Line Items Stacked Bar S Team Members 20% 500 600 400 10% 0 Demand Planner MISC BOM Team Leader FISC Inventory Control N718 N719 1 4 N720 2 N721 N722 4 3 N723 10 N725 200 0% 0 13 Ot her S uppo rt S yst e ms MAN UF (LLM) NAVICP 7R/1R Forecast Mgr 293 308 309 227 229 231 300 211 514 243 420 262 717 196 205 205 209 268 236 207 DLA All Cogs 921 964 964 849 1055 1050 1204 Net Availability 90% 82% 82% 87% 91% 3/07 5/07 7/07 87% 85% S H-6 0 / H- 2 S -3 291 FOCUS LLN D 7/06 10/06 1/07 45 5 0 Feb Mar 0 28 4 0 5 0 A pr 0 5 0 Ma y Jun 30 30 5 1 J ul 37 0 1 2 4 5 0 0 1 6 5 4 7 0 6 5 5 5 6 0 3 2 1 3 8 0 11 H1 F/ A -18 CD E 2 C/ C2 A ug Se p Oc t Nov Dec 39 29 39 41 37 1 1 8 6 7 E A -6 B 406 Net Availability: Standard stock availability J an P -3 H-5 3 / H- 3 H4 6 0 1 0 1 1 0 0 0 0 0 288 278 3 55 406 364 37 3 401 39 54 58 59 5 4 4 10 4 12 16 17 18 24 4 80 Feb Mar A pr 30 27 27 2 2 0 0 8 4 89 5 0 0 8 0 47 J an 2 0 0 7 0 0 0 0 6 32 13 4 79 1 0 1 0 0 0 0 0 0 17 18 17 13 4 3 3 30 12 12 4 60 0 0 0 0 0 0 0 0 0 378 424 381 377 3 54 305 2 16 16 2 1 54 5 5 5 5 6 20 22 14 12 26 27 4 5 27 IMAC Source of Supply (SOS) 0 0 0 6 5 22 25 Receive and Store Date NAVICP Rep FISC Industrial Support Mater Comp Materi ial Usage onent al Contr Induc ol tion Receive and Position eive Rec us Foc Kits Receive & Position Dock to Stock G-Condition Analyze & Revise Performance! 40 FY08 E2C2 Immediate Issue Rate 1 90.00% 0% 2006 2007 MPT-STP I mpl ement ed 0 2008 Immediate Issue Rate 80.00% 6% 3 60.00% 19% 62% 50.00% 0. 5 0.5 Bill Of Material 0 JUN JUL AUG SEP OCT NOV 10 FISC 5 0 Oct- Nov- Dec- Jan- Feb- Mar- Apr- May07 07 07 08 08 08 08 08 39 36 25 19 30 24 31 22 Spares -Review History of Sales -Demand Trend Analysis Fai r M AY Supply 20 Days 70.00% Poor Very Good Execell ent 1 Depot Retail/Wholesale 8 Qtr Forecasting Unsatisfactory 2 1. 5 1.5 Oct- Nov- Dec- Jan- Feb- Mar- Apr- May07 07 07 08 08 08 08 08 74% 68% 70% 82% 55% 71% 87% 71% PMA-231 35 15 0.4 0.2 E- 2 / C - 2 B OM A c c ur a c y Did the Representative demonstrate initiative and tenacity in resolving your issue? What was your overall level of satisfaction with F RCSW Supply? 3. 5 3.5 30 25 0.8 0.6 E2/C2 Customer Surveys Trends Customer Service Su rvey – Was someone available to assist you at the time needed? – How would you rate Supply's ability to process requirements in a timely manner? – Did the items or services acquired meet your needs? – How would you rate the overall knowledge and competency of the representative? – Did the Representative maintain a positive and courteous attitude during 4. 5 4.5 2. 5 2.5 Replacement Factor Unit Per Assembly 40.00% DEC JAN FEB MAR APR M AY x BOM May 2008 Outstanding R equisiti on By Age (E2/C2 Progra m) Adjusted Schedule N0244 included, previ ousl y only N65888. 1000 900 x 800 30.00% 700 600 - 20.00% $$ DLA Wholesale 10.00% GDP Apr May June J uly Aug Sept Oct Nov D ec J an Feb Mar A pr M ay Jun e July A ug S ept Oct N ov D ec Jan Feb M ar Apr 0 79 . 7 7 8. 0 7 9 . 5 78 . 4 78 . 2 7 9. 0 81. 1 79 . 3 7 9. 9 8 1. 6 81. 7 8 1. 9 7 7. 3 77 . 1 70 . 6 7 8. 7 81. 9 69 . 1 7 7. 47 0. 0 80 . 0 7 5. 18 4. 8 77 . 9 72 . 0 7 5. 07 7 . 2 72 . 6 61. 7 5 9. 8 6 1. 3 59 . 0 60 . 0 6 6. 2 65 . 2 65 . 0 6 3. 3 6 4 . 9 64 . 3 6 5. 26 3. 1 61. 5 59 . 9 6 4. 3 63 . 4 60 . 7 6 3. 26 2. 6 68 . 5 6 0. 87 3. 4 68 . 3 63 . 8 6 5. 76 7 . 6 69 . 4 300 +Days 181-300 Days Qtrs 3 to 8 DLA and NAVICP Local or outside Mfg sources Back-rob or other expedite actions 200 100 BSM/CDD Req M ay E -2 / C- 2 A/ C Pr og A lA / C P rog Focus Stores 300 Calculated Req Feb M ar 500 400 $$ BP-28 Buys Retail 0.00% Qtrs 1 & 2 6-Oct 52 111 6-Nov 53 146 6-Dec 58 156 7-Jan 81 150 173 7-F eb 108 196 91-180 Days 198 176 188 31-90 Days 205 203 243 167 133 0- 30 Days 196 268 154 294 254 208 7- Ma r 134 140 172 7-A pr 128 124 164 201 2 20 261 2 49 0-30 Days 7-M ay 114 160 126 7-Jun 136 142 137 169 150 193 283 31-90 Days 7-Ju l 70 99 135 7- Aug 58 99 141 157 149 161 205 91-180 Days S ep-07 Oct- 07 325 Nov- 07 Dec-07 Jan-08 Feb-08 M ar-08 A pr -08 M ay- 08 306 300 299 3 00 241 22 7 150 149 85 84 84 83 98 126 136 128 123 122 116 98 81 135 129 122 111 110 83 94 43 48 158 211 175 168 149 183 78 211 113 181-300 Days 83 99 56 62 36 300+Days High Performance Change Enablers E2/C2 Performance Enablers • Roadrunner – Daily and Weekly Production War Room meeting with Cell Champions • Bi‐weekly customer communications – Leadership and Triad phonecon • Daily and Weekly Supply Chain communications – Fully Operational Material War Room • • Healthier Supply Chain via Synchronization Efforts with all stakeholders BOM Accuracy and Induction Material Availability Conference (IMAC) – rigorous review • Si l i Single piece flow (SPF) and Cell‐based Work Environment fl (SPF) d C ll b d W k E i (CBWE) Quality at the (CBWE) ‐ Q li h Point of Execution – Artisan Inspectors (AI) Shingo – Accelerated LEAN improvements and leveraged the award submission to align resources and support • Cross Functional Team Conduct Autopsy on Log Sold Aircraft s Sch Bill edu Arti of le Mat Bus san eria ines l s Rule Induct and Control Order and Track Induction & Control 13% FISC (SingleSupply Agent) obtain material Inv Tra ent Exp ck ory edi Ord Ord te er er lysis Ana lysis Lined Ana iew Rev lysis Prod Ske BOM Ana rial Mate Order & Track Material Source Solution Team (MSST) Forecast Analyze and Revise Forecast BOM Team Integrated ADP FY08 Average Customer Wait Time – – Deliver over and above repair material and load assembly kits IAW Cell Standard Work Current Industrial Enterprise DLA Rep FISC Product Support 4 Build Assembly Kits during Disassembly ; ID and order Assembly and over and above material requirements • • Bi‐monthly Financial and Quality Reviews 5S +1 • • • Execution Discipline – Being good and staying good with the basics Developing a culture of always on the lookout for NVA activities Communication, Communication, Communication, Communication • Clarity of Purpose – Understanding of mission and reason for existence; A Higher Moral Purpose • Values based – understanding the burning platform; sense of urgency • Customer (Warfighter) focused – Understanding and fulfilling their needs • Responsive, effective and efficient ‐ Delivering just what the fl t fleet needs ‐ d – – – – Planning the work – with the customer Packaging the work – with production and production partners Processing the work – in a disciplined way Enabling the work – to ensure capabilities are healthy • People focused – Building the capability and capacity of people – Creating an environment where people can thrive and innovate – Respecting each other 17 5/22/2009 E2/C2 Lean Journey: Results • • • • • • Quality: – Flights to sell ‐ C2 from 7 – 2.2; E2 from 4 to 2 – Critical ADR’s – Zero over the past 2.5 years Labor hours: – C2 PMI‐3 reduced by 11%; E2 PMI‐2 reduced by 14%; E2 PMI‐1 reduced by 80% Cycle time: – C2 PMI‐3 from 475 to 330 ; E2 PMI‐2 from 265 to 180 M Material buys: i lb – Reduced material requirements by 60% through use of non‐material solutions and supply chain synchronization efforts; application of Material War Room Safety: – Zero mishaps; zero lost days in FY08 Financial Results: – $3.0M better than plan in FY08 – 3.68M better than plan in FY09 ytd 2008 Shingo Medallion Silver Operational Excellence Award Winner Summary • Cultural change - Transformational • Behavior changes – attitudes and habits • Single fleet driven metric – (FLE/RFT) – drumbeat • Physical Transformation • Standard Work – BOM/BOW accuracy • Cell-based work environment • Single piece flow – synchronized with the FLE/RFT • Supply chain synchronization – open and honest communication • Quality at point of execution – 3D Quality (Don’t get it; Don’t make it; Don’t send it) 18