Shields - 091802 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Product Realization...

Shields - 091802 copy 2002 Massachusetts Institute of Technology webmitedulean

Product Realizationin the Defense

Aerospace Industry

September 18 2002

Presented ByTom Shields

LAI


ContentContent

bull Part Ibull General lean concepts in factory design

bull Part IIbull Introductionbull Manufacturing System Design Frameworkbull Validation research resultsbull Conclusions


Lean from the Toyota ProductionLean from the Toyota ProductionSystem Shows How It All RelatesSystem Shows How It All Relates

TPSCost control through the

elimination of waste

Right Qty

Right Mix Right Time

J I T

J IDOKA

StandardizedWork

Leveled amp BalancedProduction

Kaizen

Engaged and Creative Workforce


Aerospace Factory DesignsAerospace Factory Designs

Have Many Things to ConsiderHave Many Things to Consider

Input Output

FactoryDesign

FocusHere

bullProduction volume

bullProduct mix

bullProduct design

bullFrequency of changes

bullComplexity

bullProcess capability

bullType of organization

bullWorker skillknowledge

bullCost

bullQuality

bullPerformance

bullDelivery

bullFlexibility

bullInnovativeness


Benefits from a Focus on ProcessBenefits from a Focus on ProcessRather Than Operation ImprovementsRather Than Operation Improvements

Factory Design

Types of OperationsStorage

Value Adding

I Inspection

X Transport

Part B

Part AStore in

warehouseMove to staging

X

XStore atStaging

Move By

AGV

X

X

Operations Value adding Transportation Delay (2 types) Inspection

Factory Design Layout choices Operation policies Process Technology

Tapping human knowledge

Oper a ti o n


Only Understood ProcessesOnly Understood Processes

Can Be ImprovedCan Be Improved Establish models andor simulations to permit understanding

Ensure process capability amp maturation

Maintain challenge of existing processes

Tools

Five Whys

Process flow charts

Value stream mapping

Statistical tools

Data collection and discipline


Definite Boundaries ExistDefinite Boundaries ExistBetween Flow and PullBetween Flow and Pull

Flow

MRP used for planning and control

Group technology

Reduce the number of flow paths

Batch or single items

Inventory to buffer flow

Process control

Minimize space amp distance traveled with contiguous processing established

Pull

Take time

Balanced production

Level production

Response time less than lead time

Standard work

Single item flow

Correct problems immediately -STOP if

necessary


Lean Tools Lean Tools Can Can Apply even Apply even ififJIT System Not LogicalJIT System Not Logical

Value stream mapping Work groups to implement change

Visual displays and controls Error proofing Standardized work Quick changeover Total productive maintenance

Rapid problem solving Self inspection

Five Srsquos Source J Miltonburg Manufacturing Strategy copy1995 p31


Part II


IntroductionIntroduction

Matured aerospace industry

Industrial innovation theory

Implications on the aerospace industry


Matured Aerospace Industry

bull Customers demanding specific capabilities

1048705 bull Cost and affordability

more prominent 1048705

bull Innovation characteristics have changed

Pictures taken from the Air Force Website (httpwwwafmil)


Utterbackrsquos Dynamics ofUtterbackrsquos Dynamics ofInnovation ModelInnovation Model

Rate of product innovation highest during formative years

As product matures rate of process innovation overcomes product innovation

Very mature products have low levels of both product amp process innovations


Theory in ApplicationTheory in Application

Emergence of theDominant Design

Transition Phase Shakeout competition shifts to proc

ess

Specific PhaseStable small number of firms competition

shifts to price

Destabilizing changes in technology

or process can destroy industry

Time Source Data (cars) from Entry and Exit of Firms in the US AutoIndustry 1894-1992 National Academy of Science theory concept

s from Utterback Dynamics of Innovation 1994

Fluid PhaseRapid

technology innovation many firms

founded


Extension of Theory to theExtension of Theory to theAerospace IndustryAerospace Industry

Industrial evolution and the emergenceof the dominant design

Typewriters

Open moving carriage Cars enclosed steel body

AeronauticsJet transport and 30

jet fighter-bomber

Government intervention motivated by cold war

Natural

progression

Year Source Murman et al Lean Enterprise Value 2002

Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5


Implications for the AerospaceImplications for the AerospaceIndustryIndustry

bull Producibility and cost are more competitive factorsbull Manufacturing inputs should carry more weightbull Emphasis should be on process innovationbull Firm core competencies must match industrial matur

itybull Manufacturing strategy cannot be stepchild to platfo

rm strategy

Result Heritage equipment facilities and mindsets drive manufacturing system design


ProposalProposal

Characteristicsbull Uses principles of systems engineeringbull Visual depiction of ldquodesign beyond factory floorrdquo ideasbull Manufacturing as part of the product strategybull Manufacturing system design is strategy driven not product

design drivenbull Combines multiple useful toolsbull Provides insights into order and interactions

A holistic manufacturing system design frameworkto ensure process considerations are integral

to the product development process


Manufacturing System Manufacturing System DesignDesign

bull Manufacturing system ldquoinfrastructurerdquo design

bull Manufacturing strategybull Operating policybull Partnerships (suppliers)bull Organization structure details

bull Manufacturing system ldquostructurerdquo designbull Buildings location capacitybull Machine selectionbull Layoutbull WIP


Manufacturing System Design

Suppliers Customers Society Employees Stockholders Mgmt Government

Corporate Level (Corporate Strategy) [Seek approval]

Business Unit (Business Strategy) [Interpret]

Product StrategyProduct Strategy

SuppliersSuppliers Product DesignProduct Design ManufacturingManufacturing MarketingMarketing


Manufacturing System DesignManufacturing System DesignStakeholders

Corporate Level

Business Unit

[Seek approval]

[Interpret]


SuppliersSuppliers Product DesignProduct Design Manufacturing Manufacturing MarketingMarketing

MakeBuyRisk-sharing Partnerships

DFMA IPT 3-DCE Concurrent Engineering

Customer NeedsTechnical Feasibility

Feasible performance guarantees RequirementsConsiderationsConstraints

- Miltenburg - 3P - 2D plots- MSDD - AMSDD- design Kaizen

Manufacturing System DesignSelection- Analytical Tools- Simulation Tools

Implement (pilot)

EvaluateValidate

Rate ProductionFinalized Product Design

Fine Tune

bull VSMbull Kaizenbull Trial amp Errorbull Kaikaku


Insights from the FrameworkInsights from the Framework

bull Linkage of strategy and manufacturing system design

bull Three important characteristicsndash Phase presencendash Phase timing

ndash Breadth across functions

Hypothesis following the framework process will result inthe development of effective manufacturing system

that meets the goals of the corporation


Framework ValidationFramework Validation

Research Designbull Case study - 14 assembly sites (6 aerostruct

ures 2 electronics 2 launch vehicles amp 4 space)

bull Real time ldquofly on the wallrdquobull Retrospective

Methodbull Structured interview to assess framework co

ngruencebull Strategy linkagebull Phase presence timing and breadth

bull Performance metric (actualplanned)


Framework Validation ResultsFramework Validation Results


Scoring BreakdownScoring Breakdown

How important are the different aspectsbull Which of Phase Presence Timing or Breadth i

mpacted the ability of the system to meet its planned performance


Determinants of PerformanceDeterminants of Performance


Strategy Presence ResultsStrategy Presence Results


ConclusionsConclusions

bull Competitive advantage from manufacturing excellence (enterprise strategy)

bull Performance more closely related to how system designed (not production volume)

bull Manufacturing as a true participating partner with the other functions (coequal status)


ContentContent

bull Part Ibull General lean concepts in factory design

bull Part IIbull Introductionbull Manufacturing System Design Frameworkbull Validation research resultsbull Conclusions





Right Qty


J I T

J IDOKA

StandardizedWork


Kaizen





Input Output

FactoryDesign

FocusHere


bullProduct mix

bullProduct design


bullComplexity




bullCost

bullQuality

bullPerformance

bullDelivery

bullFlexibility

bullInnovativeness



Factory Design


Value Adding

I Inspection

X Transport

Part B

Part AStore in


X

XStore atStaging

Move By

AGV

X

X




Oper a ti o n






Tools

Five Whys

Process flow charts


Statistical tools




Flow


Group technology




Process control


Pull

Take time

Balanced production

Level production


Standard work

Single item flow


necessary








Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune




































Right Qty


J I T

J IDOKA

StandardizedWork


Kaizen





Input Output

FactoryDesign

FocusHere


bullProduct mix

bullProduct design


bullComplexity




bullCost

bullQuality

bullPerformance

bullDelivery

bullFlexibility

bullInnovativeness



Factory Design


Value Adding

I Inspection

X Transport

Part B

Part AStore in


X

XStore atStaging

Move By

AGV

X

X




Oper a ti o n






Tools

Five Whys

Process flow charts


Statistical tools




Flow


Group technology




Process control


Pull

Take time

Balanced production

Level production


Standard work

Single item flow


necessary








Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune



































Input Output

FactoryDesign

FocusHere


bullProduct mix

bullProduct design


bullComplexity




bullCost

bullQuality

bullPerformance

bullDelivery

bullFlexibility

bullInnovativeness



Factory Design


Value Adding

I Inspection

X Transport

Part B

Part AStore in


X

XStore atStaging

Move By

AGV

X

X




Oper a ti o n






Tools

Five Whys

Process flow charts


Statistical tools




Flow


Group technology




Process control


Pull

Take time

Balanced production

Level production


Standard work

Single item flow


necessary








Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune


































Factory Design


Value Adding

I Inspection

X Transport

Part B

Part AStore in


X

XStore atStaging

Move By

AGV

X

X




Oper a ti o n






Tools

Five Whys

Process flow charts


Statistical tools




Flow


Group technology




Process control


Pull

Take time

Balanced production

Level production


Standard work

Single item flow


necessary








Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune





































Tools

Five Whys

Process flow charts


Statistical tools




Flow


Group technology




Process control


Pull

Take time

Balanced production

Level production


Standard work

Single item flow


necessary








Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune


































Flow


Group technology




Process control


Pull

Take time

Balanced production

Level production


Standard work

Single item flow


necessary








Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune







































Part II






















ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune





















































ess


shifts to price





Fluid PhaseRapid


founded




Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune



































Typewriters



jet fighter-bomber


Natural

progression


Num

ber

of m

ajor

auto

mob

ile c

ompa

nies

Num

ber of major U

S

Aerospace com

panies

Num

ber

of m

ajor

type

writ

er c

ompa

nies

50

40

30

20

10

1860 1880 1900 1920 1940 1960 1980 2000

0

80

60

40

20

35

25

20

15

10

5





rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune




































rm strategy



ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune

































ProposalProposal



















Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune














































Corporate Level

Business Unit

[Seek approval]

[Interpret]









Implement (pilot)

EvaluateValidate


Fine Tune
































Shields - 091802 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Product Realization...

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Transcript of Shields - 091802 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Product Realization...