16885J/ESD35J-NoV18,2003 Waste Happens In product development Effort is wasted 40%of PD effort " pure waste,29% pure value necessary waste(LAI PD workshop waste added opinion survey 30%of Pd charged time"setup and necessary waste waiting(aero and auto industry survey Time is wasted 62% of tasks idle at any given time (Al detailed member company study) task 50-90% task idle time found in Kaizen taskactive type events idle Cycle time and downstream costs are the keys Source: Seeing and Improving the Product Development Value Stream", Hugh McManus LAl Executive Board presentation June 1, 2000
16.885J/ESD.35J - Nov 18, 2003 Waste Happens In Product Development • Effort is wasted – 40% of PD effort “pure waste”, 29% “necessary waste” (LAI PD workshop opinion survey) – 30% of PD charged time “setup and waiting” (aero and auto industry survey) • Time is wasted – 62% of tasks idle at any given time (LAI detailed member company study) – 50-90% task idle time found in Kaizentype events pure waste value added necessary waste task active task idle Cycle time and downstream costs are the keys Source: “Seeing and Improving the Product Development Value Stream”, Hugh McManus LAI Executive Board Presentation, June 1, 2000
16885J/ESD35J-NoV18,2003 Lean Enterprise Model Overview Meta-Principles/Enterprise Principles Enterprise Level Metrics Overarching Practices Identify &Optimize Assure seamless Optimize Capability Make Decisions at Enterprise Flow Information Flow Utilization of People Lowest Possible Level Implement Integrated Develop Relationships Product Process Based on Mutual Trust Continuously Focus on Promote lean Development Commitment the Customer Leadership at all Levels Maintain Challenge of Nurture a Learning Ensure Process Existing Processes Environment Capability and Maximize Stability in a Maturation Changing Environment Metrics- - Interactions Enabling and Supporting Practices LEM provides a baseline reference for benchmarking lean enterprises Source: web, mit edu/lean
16.885J/ESD.35J - Nov 18, 2003 Lean Enterprise Model Overview Enabling and Supporting Practices Enabling and Supporting Practices Enterprise Level Metrics Enterprise Level Metrics Meta-Principles/Enterprise Principles Meta-Principles/Enterprise Principles Overarching Practices Overarching Practices Optimize Capability & Utilization of People Optimize Capability & Utilization of People Continuously Focus on the Customer Continuously Focus on the Customer Ensure Process Capability and Maturation Ensure Process Capability and Maturation Identify & Optimize Enterprise Flow Identify & Optimize Enterprise Flow Implement Integrated Product & Process Development Implement Integrated Product & Process Development Maintain Challenge of Existing Processes Maintain Challenge of Existing Processes Make Decisions at Lowest Possible Level Make Decisions at Lowest Possible Level Promote Lean Leadership at all Levels Promote Lean Leadership at all Levels Assure Seamless Information Flow Assure Seamless Information Flow Maximize Stability in a Changing Environment Maximize Stability in a Changing Environment Develop Relationships Based on Mutual Trust & Commitment Develop Relationships Based on Mutual Trust & Commitment Nurture a Learning Environment Nurture a Learning Environment Metrics - Barriers - Interactions Metrics - Barriers - Interactions LEM provides a baseline reference for benchmarking lean enterprises Source: web.mit.edu/lean
16885J/ESD35J-NoV18,2003 Example-Analysis of the F/A-18E/F Lean aerospace Initiative case study in Summer 2000 Study team: Alexis Stanke(lead), Lt Col. Rob Dare, Prof Murman Documented in Stanke's LAI Presentation 22 Sep 00 and SM Thesis Concentration on Product development and acquisition Data collection included interfaces with suppliers, production, logistics product and business support, and program management Secondary sources included production Over 80 people from 3 organizations interviewed NAVAIR-Navy Program Office Boeing st Louis- Prime Contractor Northrop Grumman, El Segundo- Principal Sub-Contractor Attended program meetings Collected program documentation Lived the program culture during the site visits
16.885J/ESD.35J - Nov 18, 2003 Example - Analysis of the F/A-18E/F • Lean Aerospace Initiative case study in Summer 2000 – Study team: Alexis Stanke (lead), Lt. Col. Rob Dare, Prof. Murman – Documented in Stanke’s LAI Presentation 22 Sep 00 and SM Thesis • Concentration on Product Development and Acquisition – Data collection included interfaces with suppliers, production, logistics, product and business support, and program management – Secondary sources included production • Over 80 people from 3 organizations interviewed – NAVAIR - Navy Program Office – Boeing, St. Louis - Prime Contractor – Northrop Grumman, El Segundo - Principal Sub-Contractor • Attended program meetings • Collected program documentation • Lived the program culture during the site visits
F/A-18E/F Super Hornet The Most Capable and Survivable carrier-Based Combat aircraft Super Hornet Requirements 25% greater payload Replace the A-6, F-14 and earlier 3 times greater ordnance ringback model Hornets 40% increase in unrefueled range Reduced support costs 5 times more survivable Strike fighter for multi-mission Designed for future growth effectiveness Day/Night Superiority Escort Reconnaissance Aerial Close Air Air Defense Precision Weather Refueling Support Suppression Strike Attack Highly capable across the full mission spectrum
CC02723003.ppt F/A-18E/F Super Hornet The Most Capable and Survivable Carrier-Based Combat Aircraft x 25% greater payload x 3 times greater ordnance bringback x 40% increase in unrefueled range x 5 times more survivable x Designed for future growth Highly capable across the full mission spectrum Highly capable across the full mission spectrum x Replace the A-6, F-14 and earlier model Hornets x Reduced support costs x Strike fighter for multi-mission effectiveness x Replace the A-6, F-14 and earlier model Hornets x Reduced support costs x Strike fighter for multi-mission effectiveness Super Hornet Requirements Super Hornet Requirements Air Superiority Air Superiority Fighter Escort Fighter Escort Reconnaissance Reconnaissance Close Air Support Close Air Support Air Defense Suppression Air Defense Suppression Day/Night Precision Strike Day/Night Precision Strike All Weather Attack All Weather Attack Aerial Refueling Aerial Refueling
16885J/ESD35J-NoV18,2003 Enterprise Principles Right Thing at the Right Place, the Right Time, and in the right Quan Weapon system which meets and exceeds 1)technical requirements, 2)cost, and 3 )schedule goals FlA-18E/F changed the perspective that achieving 2 out of 3 was good enough Program goals set at the contract award in 1992 were met Philosophy that the airplane is the boss"when trades are made Effective Relationships within the value Stream Establish and maintain program credibility Hornet Industry Team Culture change within the organizations involved with the 18 Aircraft agreement Source: Best Lifecycle Value, the FIA-18EIF, and the Lean Enterprise Model", Alexis Stanke, LAI Product Development Workshop, September 22, 2000
16.885J/ESD.35J - Nov 18, 2003 Enterprise Principles • Right Thing at the Right Place, the Right Time, and in the Right Quantity – Weapon system which meets and exceeds 1) technical requirements, 2) cost, and 3) schedule goals • F/A-18E/F changed the perspective that achieving 2 out of 3 was good enough – Program goals set at the contract award in 1992 were met – Philosophy that the “airplane is the boss” when trades are made • Effective Relationships within the Value Stream – Establish and maintain program credibility – Hornet Industry Team – Culture change within the organizations involved with the 18 Aircraft Agreement Source: “Best Lifecycle Value, the F/A-18E/F, and the Lean Enterprise Model”, Alexis Stanke, LAI Product Development Workshop, September 22, 2000