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Ten Years of Total Quality, Eight Years of Kaizen and What Do You Get? – A Lean Production System Don A. Blake Anthony J. Veith Introduction How many of you have… or are implementing Lean Manufacturing/Production? How many of you have… or are implementing MRP/ERP?

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ten years of total quality eight years of kaizen and what do you get a lean production system

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

Don A. Blake

Anthony J. Veith

slide2

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?
introduction
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
introduction4
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.
introduction5
Introduction

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

Kawasaki Heavy

Industries

Mitsubishi Heavy

Industries

Wichita State University

Why?

USAF

University of Washington

Kodak

University of Tennessee

GM Saturn

Raytheon

Massachusetts Institute of Technology

University of Michigan

slide6

Wichita Division

Boeing Production System

Implementation

1985 – 2002

  • Quality Vision
  • Quality Circles
  • Dimensional Management
  • Determinant Assembly
  • Hardware Variability Control
  • SPC/Six Sigma Quality
  • Integrated Product Teams
  • Work Management

1985

1990

  • Process Kaizen
  • Accelerated Improvement Workshops
  • Parts Plants Material Requirements Management

1995

  • System Kaizen
  • Production System Design
  • Total Employee Involvement
  • Baldrige Criteria Assessment

1996

1999

2001

2003

Kansas

Award for

Excellence

(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

Higher

Lower

strategies and tactics
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.
strategies and tactics8
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.

Processes

Products

People

strategies and tactics9
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.
slide10

Wichita Division

Boeing Production System

Implementation

1985 – 2002

  • Leadership Culture
  • Process Management
  • Value Chain Management
  • System Kaizen
  • Lean Production System Academies
  • Supply Chain Partnerships
  • Continuous Quality Improvementas the Management System
  • Boeing Production System
  • JIT/Lean Manufacturing
  • Process Kaizen
  • Accelerated Improvement Workshops
  • World Class Competitiveness
  • New Boeing Production System
  • Total Quality Control
  • Leadership
  • Structure
  • Reliable Methods & Processes
  • Cost of Quality
  • System Kaizen
  • Lean Maturity Assessments
  • Quality Vision
  • Quality Circles
  • Deming
  • Work Management
  • Determinant Assembly
  • Hardware Variability Control

(The JIT/Lean Initiatives View)

Key Point:

Progressive and aggressive organizational learning in the 80’s and 90’s provided the competencies, leaders, and environment to manage change.

1985

1995

2000

2003

strategies and tactics11
Strategies and Tactics
  • The first elements to establish were the philosophies and tools for employee involvement and team problem solving.
strategies and tactics12
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’.

strategies and tactics planning systems improvement hybrid mrp erp
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

strategies and tactics14
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 1960’s and 1970’s.
  • 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

strategies and tactics planning systems improvement hybrid mrp erp15
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

strategies and tactics planning systems improvement hybrid mrp erp16
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

strategies and tactics planning systems improvement hybrid mrp erp17
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

strategies and tactics planning systems improvement hybrid mrp erp18
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

implementation planning systems improvement hybrid mrp erp
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 application……Implementations could begin sooner.

DCAC/MRM

Fab

COTS

implementation planning systems improvement hybrid mrp erp20
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

implementation planning systems improvement hybrid mrp erp21
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

implementation planning systems improvement hybrid mrp erp22
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

strategies and tactics execution systems improvement jit lean production
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

strategies and tactics execution systems improvement jit lean production24

Penetration1

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

strategies and tactics execution systems improvement jit lean production25

DCAC/MRM

Fab

Subassembly

Major Assembly

Prep/Ship

JIT/Lean

Penetration1

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.
strategies and tactics execution systems improvement jit lean production26

DCAC/MRM

Fab

Subassembly

Major Assembly

Prep/Ship

JIT/Lean

Penetration1

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.
strategies and tactics execution systems improvement jit lean production27

DCAC/MRM

Fab

Subassembly

Major Assembly

Prep/Ship

JIT/Lean

Penetration1

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.
implementation execution systems improvement jit lean production

Stabilization2

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

implementation execution systems improvement jit lean production29
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

implementation execution systems improvement jit lean production30

Growth3

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

implementation execution systems improvement jit lean production31
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

implementation success factors and project elements
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

implementation success factors and project elements33

A&I Model

A&I

Model

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 A&I Model for short.

DCAC/MRM

Fab

Subassembly

Major Assembly

Prep/Ship

JIT/Lean

implementation success factors and project elements34

A&I Model

A&I

Model

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

implementation success factors and project elements35

A&I Model

A&I

Model

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

implementation success factors and project elements36

A&I Model

A&I

Model

ImplementationSuccess Factors and Project Elements

Assembly & Installation Model Project

  • The A&I 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

slide37

A&I Model

DCAC/MRM

A&I

Model

DCAC/MRM

DCAC/MRM

DCAC/MRM

DCAC/MRM

DCAC/MRM

Lean

Manufacturing

Lean

Manufacturing

1995

1996

1997

1998

1999

2000

2001

2002

Lean

Manufacturing

Lean

Manufacturing

Lean

Manufacturing

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

assessment measurement
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.
assessment measurement39

MITLAILESAT

KansasAwardExcellence

A&MLMSAT

A&IProgressMatrix

Levelsof

Excellence

LeanProgressionMatrix

General Business Practices

Operational Practices

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.
assessment measurement40

MITLAILESAT

KansasAwardExcellence

A&MLMSAT

A&IProgressMatrix

Levelsof

Excellence

LeanProgressionMatrix

General Business Practices

Operational Practices

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.
approaches and results incremental improvement and breakthrough improvement
Approaches and ResultsIncremental 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.
approaches and results incremental improvement and breakthrough improvement42
Approaches and ResultsIncremental 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

slide43

Approaches and ResultsIncremental 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

slide44

Approaches and ResultsIncremental 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
approaches and results incremental improvement and breakthrough improvement45
Approaches and ResultsIncremental 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.
approaches and results incremental improvement and breakthrough improvement46
Approaches and ResultsIncremental 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
lessons learned
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
summary
Summary
  • Whether it is MRP/ERP, Lean Manufacturing, Sales & Operations Planning or

TheNextNewButNotReallyNewParadigm-ShiftingOperationalEfficientWorldClass-Methodology

…the transition or transformation will be:

      • Championed by a few
      • Challenged by many
      • Uncomfortable for most
      • Emotional for everyone
closing remarks
Closing Remarks
  • So…
    • Learn to leverage your Champions
    • Harvest the challenges
    • Mitigate the discomfort
    • Channel the emotion
contacts
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

slide51

Wichita Division Manufacturing Overview

Boeing Wichita – Commercial ~$2B Business Volume per year

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