Enabling More Proactive IE Support of Factory …...Conference Theme: “How Businesses Take...

BOEING is a trademark of Boeing Management Company.Copyright © 2008 Boeing. All rights reserved.

Enabling More Proactive IE Support of Factory Efficiency

Tom P. Harper [email protected] D. Brown [email protected]

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• Commercial Airplanes

• Military Aircraft & Missiles

• Space & Communications

• Air Traffic Management

• Boeing Capital Corporation

• Shared Services Group

• Phantom Works

Protecting and connecting the people of our world

Transformation from a cyclical commercial airplane business to a top quartile steady growth aerospace business

The Boeing CompanyPeople Working Together as a Global Enterprise

for Aerospace Leadership

Copyright © 2008 The Boeing Company. All rights reserved.

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• Focus • 777 History • Supporting the Boeing Production System• Case Studies• Changing the Culture• Goals• Program Successes, Opportunities• Q&A, contact info, and references

Presentation Outline


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Focus: Who are 777’s Industrial Engineers, What do they want and need from Boeing,and What should Boeing need in return?

777 Industrial Engineering OrganizationCopyright © 2008 The Boeing Company. All rights reserved.

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Conference Theme: “How Businesses Take Flight”

– Almost 50% of the 777 Program IE Organization’s strength is from Industrial Engineer’s newly hired in 2006 & 2007

– Est. ¼ of U.S. aerospace industry workers are eligible to retire in 2008, so there is a fear that we could be facing a serious skills shortage in factories that churn out aircraft.

– At Boeing, how do we best help our “business take flight”?

Why Transform?“We look to the heroic efforts of outstanding individuals for our successful work.

Instead we must create systems that routinely allow excellent work to result from the ordinary efforts of ordinary people.”

Peter Scholtes, ASQ’s 2006 Deming Medal Awardee, author of “The Leader’s Handbook A GUIDE TO INSPIRING

YOUR PEOPLE AND MANAGING THE DAILY WORKFLOW”

Previous Culture: mostly IE Analysts grown within

90% Production Support & Clerical

New Culture: mostly degreed IE’s hired from Industry & Colleges

Continuous Improvement


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777 History & Characteristics:

1990 Formal go-ahead given for 777; initial order of 34 airplanes & 34 options by United Airlines; rollout 1994; first delivery 1995; 500th 2004; 700th 2008

2003-2005 Production of 777’s stable at about 40 / yr, Takt time: roughly 6-days ea.2005 Record setting year; 1,002 commercial orders for all models; reach 675 orders for 777 end of 2004;

reach 827 orders end of 2005; net 777’s addit. 2005 ~ 1522006 Vision & planning to increase number of 777’s produced / yr; IE org up ~15%;

Jun06 Mtg. of IE’s added within last 12-mo. request to spend less time on admin tasks & more time on Project oriented work (use more of IE Skills & experience);Sep06 Accelerated Improvement Workshop, 2-IE’s from each work area

777: Span: ~200’; -200 Takeoff Wt. 545,000#; Cruise speed: 0.84 mach; Range: 5,000 to > 10,000 nautical miles; Passengers: 305 - 440


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777 IE Value Added TeamEnd 06 - Receive “A Lean+ Analysis of IE at Boeing Company” from Dr. R. Sawhney,

Visiting Professor and Welliver Boeing Fellow, based on his 2-month study project in mid-2006

Jan 07 - 777 IE Workshop Follow-on Team Formed: Proposed new focus to include Process Improvement Projects

Feb 07 - IE 2d-Level Mgr & 777 Director of Operations agree to a Factory Support Proposal (Charter) to Target IE’s as proactive for Factory Efficiency Projects & Initiatives; goal: “every IE will own a min. of 1 Factory Process Improvement that reduces cost, increases quality, &/or reduces flow time”; in each Analyst’s PE in 2007;benchmarking finds each 747 IE tasked with 2/yr Factory Process Improvements


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• Situation777 Factory has an aggressive business plan for 2007 (reduce 4Q forecast by X%)

• TargetIE will be more proactive in its support of Factory efficiency projects and initiatives to

dramatically increase Factory process improvement activity in 2007 • Proposal

– Factory Generals to maintain a “Top 5” process improvement project list– Every Industrial Engineer will own a minimum of one Factory process improvement

that reduces cost, increases quality, and/or reduces flow time. IE will be responsible for the integrated plans / schedules for improvement activity, including progress updates and ensuring the benefits are booked utilizing the O&R process.

– In addition, each Industrial Engineering support group will identify the critical jobs traveling out of shop and provide root cause analysis targeted at traveler elimination

777 Industrial EngineeringFactory Support Proposal (Charter)


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777 IE Value Added TeamMar07 - Brief EI Council on “IE Adding Value Workshop Follow- up” report, with

Vision Statement, IE Project Management Process, Project Analysis Project DB info, fill-in-the-blank tool to aid initiation of Projects, frequently asked Q/A list, and File Folders

Apr07 - IE VAT Reps rollout initiative guidelines to IE’s in each of their 6 Work Areas

Jun07 - Set goal: 50% of IE’s achieve Project Definitions listed in Project DB

End 07- Greater than 85% of IE’s identify Project improvement projects, in support of BPS.


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What is the Boeing Production System (BPS)?• The Boeing Production System is based on the relentless identification &

elimination of waste to reduce costs, shorten lead times, & improve quality for the purpose of increasing Customer Satisfaction

• Recognizing, reducing and eliminating waste, fuels all Lean activities in the Boeing Production System

• Benchmarked to the other successful production Systems, and to best practices at other Boeing Sites


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BPS House

“Pull” Production

Continuous-Flow

Production

BoeingProduction System

BoeingProduction System

Just-in-Time• Just what the

customer wants• When the customer

wants• In the quantity the

customer wants• Using the minimum

of: materials, equipment, labor, and facilities.

Autonomation• High quality,

efficient and reliable machines and processes

• Separation of people and machine

• Do not accept, produce or pass on defects

• Timely detection and correction

Leveled Production

Customer Demand

StandardWork

• Standard Work-in-Process

• Kanban

Total Productive

Maintenance

Material

Machine

People

Safety

SortSort SimplifySimplify SweepSweep StandardizeStandardize Self-disciplineSelf-discipline


12 DRAFT gb 10/23/06

IE BPS: Applying the Boeing Commercial Airplane Production System to the 777 Industrial Engineering Organization

Leveled Production (of Projects; each IE has a similar load of Projects based on experience, skills, training)

▲ Cost Reduction Through Elimination of Waste (MUDA)

People: Self Evaluation of Skill Levels, Reqmts. vs. Self Rating, in a per IE proforma by detailed descriptions / definitions, reviewed by Manager 1. cross ref. to Tng Reqd, Achieved, Plan’d 2. ea. IE tool assess: capability, experience Special assistance to New Hire / newly arrived IEs, especially to include focus group discussions, presentations

Standard Work: Desk Procedures for ea. IE Job Position, in a notebook, tabbed, reviewed by Mgr, tracked & audited, ready for use by an identified specific back-up IE, or by alternate / replacement Orientation Package for New Employees, sim. to Production Engineering Process; handbook, checklists, audits by focal, mentoring audited

Takt Time Production: Capability to perform IE functions within similar times, by JIT with just what work is required, just the right amount of work needed, at just right moment of need, using minimum of materials, labor, equipment, & space. Work Measurement of IP’s selected due to Bar overages: %-excess, Hrs excess, OT Hrs Expended

Material: List Global Purchasing Issues, pareto to show criticality by $ for actual part itself, by time req’d (w/ cost penalty for late deliv.), &/or Quality (Opportunity for Improvement in terms of $ to achieve satisfactory quality); IE assists to Supplier Evaluation Process; impact major partners

Standard Work In Process: Activity Report of all active IE Projects, showing amount of IE Equivalent headcount time dedicated previous month, also showing status and projected amount of IE Equiv headcount time of work remaining Kanban: Next project “identified” only

One Piece Flow: Work toward ea. IE working on a single task till completion, or IE Team working a single project to completion (or to a major milestone), before IE asset(s) are withdrawn to work on a next task/project (or trying to work on 5 tasks / projects simultaneously)

Machine: Lists of Tooling or Facilities Issues, installation tooling or material handling equipment, WIP storage or handling, warehousing of parts or minor / major subassemblies, assembly fixtures in feeder lines or final assembly lines.

Operational Availability: IE Resources budgeted per monthly needs assessment, with respect to on-hand, potential loss attrition, hiring actions, train-up timing (zero-base-budget of reqmts, with fact-based defense of needs; reallocate as reqd). Andon: Projects per IE stoplight status

Pull System: Tasks/Projects initiated by requests from Customer(s) made to IE Mgt, including services or support for making process improvements: * Response to List: Pareto of Most Critical Issues * Response to List: known/perceived bottlenecks * Response to List: Critical Path IPs, by Hrs over spent, and by Overtime Charged (caused delay)


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Supporting BPS

Case Study I


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Damage Prevention

Team Leader: Tom HarperCopyright © 2008 The Boeing Company. All rights reserved.

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Team Goals

•Common Goals:– Prevent & detect damage as soon as possible– Team oriented healthy communication – Corrective Actions: Prioritized, Robust, Feasible, Practical– Win-Win solutions– Never let perfection become the enemy of improvement– Don’t Affix Blame, Fix the Problem


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Project Time Line

ID Task Name Duration Start1 Implement containment Actio 60 days? Thu 10/26/062 Review Actions with Team 19 days Thu 10/26/063 Select Actions 1 day? Wed 11/22/064 Implement Actions 40 days Thu 11/23/065 Define Project 10 days Thu 10/26/066 Create Charter 3 days Thu 10/26/067 Create SIPOC 7 days Tue 10/31/068 Report Status to Sponsor 0 days Wed 11/8/069 Collect Defect Data 24 days Thu 11/9/06

10 Determine Data Collection 4 days Thu 11/9/0611 Identify Data Collection R 5 days Wed 11/15/0612 Actual Data Collection 15 days Wed 11/22/0613 Report Status to Sponsor 0 days Tue 12/12/0614 Analyze Data/Identify Rt Cau 35 days Wed 12/13/0615 Review Data 10 days Wed 12/13/0616 Identify Primary Root Cau 10 days Wed 12/27/0617 Determine appropriate Co 15 days Wed 1/10/0718 Report Status to Sponsor 0 days Tue 1/30/0719 Implement Corrective Action 35 days Wed 1/31/0720 Implement Changes 35 days Wed 1/31/0721 Submit needed PPCR's e 35 days Wed 1/31/0722 Report Status to Sponsor 0 days Tue 3/20/0723 Control and Standardize 80 days Wed 3/21/0724 Implement Best Practices 20 days Wed 3/21/0725 Verify Implementation 20 days Wed 4/18/0726 Feedback and Modify 40 days Wed 5/16/0727 Report Status to Sponsor 0 days Tue 7/10/0728 Review Project 4 days? Wed 7/11/0729 Final Report Out 1 day? Wed 7/11/0730 Recommendations 3 days Thu 7/12/07

11/8

12/12

1/30

3/20

Oct 8, '06 Oct 29, '06 Nov 19, '06 Dec 10, '06 Dec 31, '06 Jan 21, '07 Feb 11, '07 Mar 4, '07 Mar 25, '07


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Methodology

•DMAIC approach•On-site inspections•Non-Conformance follow-ups•Identification of primary root causes•Robust solutions•Interdepartmental Communication


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Identification of Primary Root Causes.


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Successes

•Replaced cardboard with Canvas•Teamed with Engineering to remove obsolete power feeder bracket

•Worked with manufacturing, procurement, and vendor to improve Panduit gun.

•Result:–Overall Non-Conformance reduction


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Implemented Improvements


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Further Opportunities

•Continue Implementation and Control of Corrective Actions

•Continue to share successes with other programs

•Benchmark with other Programs


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Supporting BPS

Case Study II


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777 Super Lattice Unload Process Documentation

Shop:

System Installation Feeder Lines


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Current loading procedure of the super lattice onto the transportation tool for delivery is causing: a. Damaged tools b. Rework


super lattice tool hanging on ski lift tool

situation

target Decrease the amount of rework by 90% and eliminate damaged tools


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improper unlatching can result in tool and lattice rail damage

waiting for tool replacement

Wasted time switching tools

damaged tool

bent tools 777 Super Lattice Unload Process Documentation


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sometimes loaded on wrong tool or direction

impacts SI work

Significant reload time

rework 777 Super Lattice Unload Process Documentation

transportation tool


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Color code tools to make them easily identifiable for removal. Promote visibility for issue in Value Stream Team meetings to promote awareness of the issue.Used powered equipment to pull transportation tool into position in super lattice area.Mark tool for easy, quick, and correct placement.


action items


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1 hr /AP

8 hrs /AP

90% Reduction in rework costs

Successes:



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Changing the Culture


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Recognition

• Reporting out before management team

• Continue to share successes with other programs

• Pride at Boeing (Peer Recognition Points)

• Certificate of Recognition (Cash Award Program)


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Working in Conjunction with Boeing Certification Programs

• Six Sigma Green Belt

• 3P (Production Preparation Process)

• Accelerated Improvement Work Shops (AIW)

• Six Sigma Black Belt


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Leveraging Production Support Activities

• Identification of Improvement opportunities from Daily Activities

• Working directly with production to determine most wanted and needed projects

• Supporting management in identification of “Top 5” issues

• Provide the Vehicle and Tools to achieve the BPS vision provided by Leadership


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IE Value Added Team Benefits

• Support The Boeing Production System

• Foster an environment of Continuous Improvement

• Increase opportunity in the IE community for project leadership and participation

• Increase Morale and Retention of Industrial Engineers


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Program Successes

• 60+ Improvement Projects in Work

• Substantial anticipated annual savings in 2007

• Greater than 85% participation first year


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Future Opportunities

• More of the IE’s time devoted to Improvement Projects

• Increase annual savings in the next five years as the program matures

• Increase Capacity as Requested


BOEING is a trademark of Boeing Management Company.Copyright © 2008 Boeing. All rights reserved.

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