Ten Years of Total Quality, Eight Years of Kaizen and What Do You Get A Lean Production System

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Ten Years of Total Quality, Eight Years of Kaizen
andWhat Do You Get? A Lean Production System

• Don A. Blake
• Anthony J. Veith

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Introduction

• How many of you have or are implementing Lean
  Manufacturing/Production?
• How many of you have or are implementing
  MRP/ERP?
• How many of you have or aredoing both?
• At the same time?

3
Introduction

• Whether it is MRP/ERP, Lean Manufacturing or
  Sales Operations Planning
• the transition or transformation will be
• Championed by a few
• Challenged by many
• Uncomfortable for most
• Emotional for everyone

4
Introduction

• This presentation will share the approach,
  methods, and tools used in bringing about the
  Wichita Division transformation.
• The following three issues will be the focus of
  the presentation and discussion.

• Lean Production implementation approach that
  accounts for resistance to change, funding
  constraints, and pressure from top leadership for
  near-term results.
• Evaluating the maturity and capability of their
  business in the elements of Lean Production
  identifying the gaps to be targeted for
  improvement
• Establish a best practices/benchmarking system
  with internal and external collaborative
  learning partners.

5
Introduction

• Many have come Wichita Division to observe,
  understand, and train in Boeing Wichitas
  approach, methods, and tools for transforming to
  a lean production system.

Mitsubishi Heavy Industries
Kawasaki Heavy Industries
Wichita State University
Why?
Kodak
University of Washington
USAF
University of Tennessee
GM Saturn
Raytheon
Massachusetts Institute of Technology
University of Michigan
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Wichita Division Boeing Production System
Implementation 1985 2002
(The Business Results View)
Higher
Lead-time
Key Point Implementing only the tools and
techniques will yield unintended consequences. A
coordinated approach for both planning and
execution is a must.
Lower
Cost
Lower
Higher
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Strategies and Tactics

• Momentum gathered after company leaders
  participate in Japan Study missions.

• Bringing back a validated belief that focusing on
  quality and total employee involvement were the
  keys to competitiveness.

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Strategies and Tactics

• At the Wichita Division, it was not just viewed
  as embedding Total Quality
• The leadership knew it meant redefining and
  designing the production system structurally and
  culturally.

Products
Processes
People
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Strategies and Tactics

• An overall master strategy was created in 1985
  that would progressively establish the foundation
  for an agile, responsive, and quality driven
  system.

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Wichita Division Boeing Production System
Implementation 1985 2002
(The JIT/Lean Initiatives View)
Key Point Progressive and aggressive
organizational learning in the 80s and 90s
provided the competencies, leaders, and
environment to manage change.
1985
2000
2003
1995
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Strategies and Tactics

• The first elements to establish were the
  philosophies and tools for employee involvement
  and team problem solving.

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Strategies and Tactics

• Boeing Wichita Division
• 1986 Phase one of production system redesign
• Team Problem Solving
• Total Quality Control
• Statistical Process Control
• 1990 Phase two
• Work Management
• Hardware Variability Control
• 1995 Phase three
• Parallel implementations
• MRP/ERP planning
• Lean Production execution

Key Point A long term strategy with top
leadership commitment must be in place. The
vision and plans must be robust enough to survive
the pitfalls of management mobility.
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Strategies and TacticsPlanning Systems
Improvement (Hybrid MRP/ERP)

• In 1995, our overall production system
  improvement strategy included reengineering the
  configuration management, production planning and
  scheduling systems while simultaneous introducing
  and utilizing JIT/Lean Manufacturing techniques
  and tools.

A
A
Fab
Subassembly
Major Assembly
Prep/Ship
A
A
A
A
B
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Strategies and Tactics

• The strategy and tactics for implementing
  improvements in planning and execution began in
  the summer of 1995 with a progressive replacement
  program for Boeing information systems that had
  been built in the 1960s and 1970s.

• This included material management systems for
  procurement through shop floor control systems
  for dispatching and controlling work.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
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Strategies and TacticsPlanning Systems
Improvement (Hybrid MRP/ERP)

• Focusing on the parts fabrication business units
  came next.
• The decision to reengineer the planning systems
  in the parts fabrication business units turned
  out to be a key success factor for the parallel
  implementation.

How so?
DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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Strategies and TacticsPlanning Systems
Improvement (Hybrid MRP/ERP)

• DCAC/MRM was launched to accomplish four key
  elements
• a single source of product data,
• simplified effectivity,
• tailored business streams,
• and tailored materials management.

DCAC/MRM
Fab
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Strategies and TacticsPlanning Systems
Improvement (Hybrid MRP/ERP)

• This implementation has been described as one of
  the largest computing projects ever undertaken.
• The scope and magnitude of this effort in many
  ways lead to a higher interest and business
  emphasis to implement JIT/Lean Production.

DCAC/MRM
Fab
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Strategies and TacticsPlanning Systems
Improvement (Hybrid MRP/ERP)

• The intent of the project was to replace the
  multiple occurrences of product definition data
  with a single source, thereby reducing the errors
  and non-value added effort associated with the
  multiple occurrences.
• This was to be the first phase of the project,
  based on the fact that production data flows from
  the engineering bill of material (BOM) through
  the various planning and scheduling application
  into the shop floor execution system(s).

DCAC/MRM
Fab
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ImplementationPlanning Systems Improvement
(Hybrid MRP/ERP)

• It was soon discovered that this initial approach
  was much more complex than anticipated.
• If we started in the detail part fabrication
  areas of the company and replaced the old legacy
  systems with a commercial-off-the-shelf MRP/ERP
  planning, scheduling and shop floor execution
  applicationImplementations could begin sooner.

DCAC/MRM
Fab
COTS
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ImplementationPlanning Systems Improvement
(Hybrid MRP/ERP)

• This effort was a significant impetus to the
  JIT/Lean Production activities. We found that
  our complex manufacturing processes, became even
  more complex when coupled with a transaction
  intensive MRP/ERP application.

Reduce the complexity and employ simple systems
DCAC/MRM
Fab
JIT/Lean
COTS
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ImplementationPlanning Systems Improvement
(Hybrid MRP/ERP)

• Due to these experiences the progressive
  implementations (first planned to implement by
  airplane model) were switched to implement by
  manufacturing business unit, beginning with the
  detail fabrication areas.

DCAC/MRM
Fab
Fab
Fab
COTS
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ImplementationPlanning Systems Improvement
(Hybrid MRP/ERP)

• Continued delays in necessary software
  functionality caused several re-plans of the
  schedule and extended the completion through the
  end of 2003.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
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Strategies and TacticsExecution Systems
Improvement (JIT/Lean Production)

• Cultural change is about people...their beliefs,
  values, and habits. Effective use of Just In
  Time (JIT) Manufacturing methods and techniques
  require a strategy and collection of tactics,
  which focus on people and how they learn and grow
  into new habits.
• In 1995 and through 1998 three high level
  strategies and specific tactics were employed to
  first build a foundation for JIT/Lean
  capabilities.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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Strategies and TacticsExecution Systems
Improvement (JIT/Lean Production)

• The initial strategy was labeled Penetration with
  the intent to introduce the management team and
  employees to the full suite of concepts and
  principles demonstrated by companies such as
  Toyota, Hewlitt Packard, and Motorola.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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Strategies and TacticsExecution Systems
Improvement (JIT/Lean Production)

• The Penetration tactics were
• Conduct focused efforts in education and
  demonstrate immediate usage/benefits of Boeing
  Production System concepts, techniques, and tools
  in shop areas.

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Strategies and TacticsExecution Systems
Improvement (JIT/Lean Production)

• The Penetration tactics were
• Develop Boeing Production System resident experts
  (in responsibility centers and manufacturing
  business units) to manage and continue
  penetration through process stabilization and
  growth in capability and capacity.

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Strategies and TacticsExecution Systems
Improvement (JIT/Lean Production)

• The Penetration tactics were
• Develop Boeing Production System resident experts
  (in responsibility centers and manufacturing
  business units) to manage and continue
  penetration through process stabilization and
  growth in capability and capacity.

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ImplementationExecution Systems Improvement
(JIT/Lean Production)

• Stabilization was the second strategy that would
  overlap Penetration activities. Stabilizing the
  production and support processes had to be done
  to some degree. JIT/Lean techniques require
  tremendous discipline and predictability.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
Penetration1
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ImplementationExecution Systems Improvement
(JIT/Lean Production)

• Stabilization tactics were
• Embed concepts and techniques as daily practice
• Stabilize processes through standardization
• Hold Gains achieved
• Prepare workforce and business systems to support
  implementation of planned and future improvements.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
Penetration1
Stabilization2
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ImplementationExecution Systems Improvement
(JIT/Lean Production)

• The Growth strategy was identified to be the
  opportunity to leverage the additional
  capabilities and capacities that the JIT/Lean
  business model would provide. It initially only
  had one general tactic
• Use processes and systems to generate and
  implement continuous improvements.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
Penetration1
Stabilization2
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ImplementationExecution Systems Improvement
(JIT/Lean Production)

• Key enablers were identified to accomplish the
  implementation.
• Lean Manufacturing improvement methods for
  identifying and eliminating waste
• Committed, educated and experienced leadership
• Measures that foster and reward desired behaviors
• Effective project management

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
Penetration1
Stabilization2
Growth3
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ImplementationSuccess Factors and Project
Elements

• The success of the parallel implementations was
  leveraged on how well the execution of the
  factory could be simplified so that the dilemmas
  and problems of a Push and Pull system could be
  avoided.
• Both the DCAC/MRM and JIT/Lean implementation
  programs were initially managed under the same
  leadership and oversight committees.
• Both programs used the same education base
  (APICS) to prepare the work force.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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ImplementationSuccess Factors and Project
Elements

• Assembly Installation Model Project
• In the 1999 time frame both implementations of
  DCAC/MRM and JIT/Lean were planned to cross
  paths.
• In anticipation of the crossover, a joint project
  between the two programs was designed to maximize
  the benefits and minimize the conflicts. The
  project was labeled Assembly Installation Model
  or AI Model for short.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
34
ImplementationSuccess Factors and Project
Elements

• Assembly Installation Model Project
• The Assembly Installation process was the
  crossover or intersection point for planning and
  execution activities.
• In retrospect, this project turned out to be one
  of the best learning activities throughout the
  eight year implementation.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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ImplementationSuccess Factors and Project
Elements

• Assembly Installation Model Project
• Understanding the limitations of the ERP elements
  and the power of consumption based replenishment
  was key in keeping material procurement policies
  simple and easy to maintain.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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ImplementationSuccess Factors and Project
Elements

• Assembly Installation Model Project
• The AI Model project proved that you could have
  a hybrid system that could use MRP scheduling for
  exotic long lead materials, while also procuring
  and delivering either on synchronous schedules or
  by direct pull signals from the consuming shops.

DCAC/MRM
Fab
Subassembly
Major Assembly
Prep/Ship
JIT/Lean
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ImplementationSuccess Factors and Project
Elements
Planning
Key Point Parallel implementation of ERP and
JIT/Lean is possible when you understand where
the decoupling points will likely occur.
TailoredMaterialsManagement
Information Flow
DCAC/MRM Lean Manufacturing
StandardWork
Material Flow
Work PlaceOrganization
Execution
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Assessment/Measurement

• In order to figure out how to get to where you
  want to go, you need to know where you are.
• Assessing the current capability and potential of
  the current business system and production system
  is key in developing an improvement strategy.
• Gathering data and assessing the current
  condition to some scale was necessary.

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Assessment/Measurement

• We found that the same criteria were not always
  appropriate.
• It depended on what level of performance was
  being measured and/or what capabilities of the
  business were being assessed.

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Assessment/Measurement

• Several tools were either acquired or created to
  measure maturity and capability at the following
  levels.
• Determining what assessment tool depended on the
  scope of change and the focus of your limited
  resources.

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Approaches and Results Incremental Improvement
and Breakthrough Improvement

• The Wichita Division learned from benchmarking
  and from former Toyota managers that continuous
  improvement at Toyota was both incremental and
  breakthrough.
• However, the base for both is Total Employee
  Involvement with lots of training and opportunity
  for using scientific method problem solving.

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Approaches and Results Incremental Improvement
and Breakthrough Improvement

• The vehicle used by Wichita for accelerated
  improvement under the scientific method since
  1996 was a form of rapid improvement workshop
  called a kaizen blitz by many, action workout
  by others.
• At Boeing the kaizen blitz was later named
  Accelerated Improvement Workshop (AIW).

Kaizen Blitz
Action Workout
Production Preparation Workshop
5 Days A Night
Accelerated Improvement Workshop
Autonomous Maintenance Workshop
43
Approaches and Results Incremental Improvement
and Breakthrough Improvement

• Both incremental and breakthrough improvement
  depend on traceable, repeatable scientific
  methods.
• Typical project or team based approaches take
  extended periods of time.
• In past years, methods have been used that
  accelerate incremental and breakthrough
  improvements while still maintaining the
  scientific approach.

Kaizen Blitz
Action Workout
Production Preparation Workshop
5 Days A Night
Accelerated Improvement Workshop
Autonomous Maintenance Workshop
44
Approaches and Results Incremental Improvement
and Breakthrough Improvement

• The Accelerated Improvement Workshop (AIW) is a
  great method for accelerating discovery and
  change.
• Events are driven by either the strategic
  roadmaps or used tactically in daily management.
• Preparation time depends on process complexity
  and frequency of repeatable elements.
• .

Accelerated Improvement Workshop

• Conduct the event
• Observe
• Brain-Storm
• Try-Storm
• Simulate/Test/Establish
• Document/Standardize
• Celebrate

• Define the goals
• Define the scope

• Follow-Up
• Measure
• Monitor
• Complete open items
• Horizontally deploy

• Prepare the leaders
• Prepare the process experts
• Study the current condition

45
Approaches and Results Incremental Improvement
and Breakthrough Improvement

• Another type of workshop taught to us by former
  Toyota managers is the Production Preparation
  Process (3P) workshop.
• The 3P workshop is designed to leverage
  incremental improvements and create breakthroughs
  in design and production process methods that
  complement design simplicity achieved during the
  workshop.

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Approaches and Results Incremental Improvement
and Breakthrough Improvement

• The evolution of these methods and others are
  traced through the following production system
  development milestones.

• Engaging The Workforce
• The 767 Struts Implementation (1995)
• The 737 Fuselage Assembly (2001)
• Configuring The Value Chain
• The Assembly and Installation Model
• The 737 Product Definition Cell (2000)
• Extending Into The Supply Chain
• The Boeing Wichita /ALCOA Davenport Partnership
• Organizational Learning
• The Kaizen Workshop
• The Lean Production Systems Academy
• Leaders As Teachers
• Rotational Assignments

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Lessons Learned

• Many lessons have been learned and re-learned.
  The categories below are the key enablers many
  have observed as one of the best applications of
  Lean concepts in aerospace.
• Leadership/Sponsorship/Support
• Champions/Change Agents
• Promotion Office
• Education/Training
• Benchmarking
• Curriculum Development
• Interactive Demonstration
• Assessment/Measurement/Project Management
• Enterprise Level
• Business Unit Level
• Shop/Team Level

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Summary

• Whether it is MRP/ERP, Lean Manufacturing, Sales
  Operations Planning or
• TheNextNewButNotReallyNewParadigm-ShiftingOperatio
  nalEfficientWorldClass-Methodology
• the transition or transformation will be
• Championed by a few
• Challenged by many
• Uncomfortable for most
• Emotional for everyone

49
Closing Remarks

• So
• Learn to leverage your Champions
• Harvest the challenges
• Mitigate the discomfort
• Channel the emotion

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Contacts

• Don A. Blake
• Anthony J. Veith
• Session Number D-09 Ten Years of Total Quality,
  Eight Years of Kaizen and What Do You Get? A
  Lean Production System
• Please return your completed session survey
• to the room monitor or the collection boxes
• near the exit

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Wichita Division Manufacturing Overview
Boeing Wichita Commercial 2B Business Volume
per year
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Wichita Division Manufacturing Overview
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Wichita Division Manufacturing Overview
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Wichita Division Manufacturing Overview