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UNCERTAINTIES - PowerPoint PPT Presentation

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UNCERTAINTIES. There is inherent variability in work makes it difficult to follow schedules. There is competition for people, facilities and other equipment within and across products – work waits in queue Unpredictable work cause schedule delays.

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  • There is inherent variability in work makes it difficult to follow schedules.

  • There is competition for people, facilities and other equipment within and across products – work waits in queue

  • Unpredictable work cause schedule delays.

  • Frequent priority changes force constant shifting of resources.

  • Delivery dates move as customer needs change

  • Variability in work scope

  • Administrative delays (paperwork, system related, Inspection reports, Customer approval, …)

  • Differences between Delta demand and customer demand

  • Data integrity in system

  • Aging equipment increases unscheduled down time

  • Distractions due to business level uncertainty

  • Etc, Etc, Etc………





Outside Repair



Scrap Replacement

Repair & Support Shops

Before TOC

How Products Flowed –

Engine Maintenance = Engines, APU’s, Landing Gear

Historical 4 year monthly average production = ~38 engines/mth

20,000 open shop orders to support 60 + engines in WIP

Policy Constraint(s)

  • Pressure to deliver on time

  • Pressure to expedite 

  • Multi-tasking

  • Priority changes

  • De-synchronization

  • Induct Asset ASAP

  • Start repairs ASAP

  • Start buildup ASAP

  • Expediting 

  • Multi-tasking

  • De-synchronization

  • Early release for

  • production

  • Push parts to Back shops ASAP

  • Pull parts from Back shops ASAP



Uncertainties multiply

Delays 

Start Early

(CT )


High no. of

jobs in progress


Shortages 

Lead time 

Resource contention 

(Queues )


Realization Technologies, Inc

“If I just had my [email protected]#$ parts…”

Originally focused on Disassemble and release of Parts ASAP

  • Created excess WIP

    • Little’s Law*

  • Competing priorities

    • Customer vs. Delta

    • Day Cards, Green Cards, Manager Specials

  • Long Queue Times vs. Short Touch Times

  • Long TAT and Low Through-Put

  • Parts late to Outside repair vendors

Implement Theory of Constraints

  • Metrics –Throughput, Turn Time, WIP

  • Drum Buffer Rope Scheduling (Repair Shops)

  • Exception Management

  • CCPM (Product Lines)

Simplified Drum-Buffer-Rope

Drum Determined by Due Date

Established a 15 day rope

  • 10 working days plus 5 days of Buffer

    • Determined by Longest Lead-Time part

      • Approx. 156 process hours, ~ 6.5 days

      • Most parts require < 3 days Touch-Time

      • Typical parts repair averaged 60 days

        • Now 10 days, 7 days plus 3 days of buffer

          Control release of Material

    • Work to the rate of R&S (Constraint)

      • Established Parts Release mechanism to protect the system

        • Parts sent to Holding Area to wait for release

        • Release Exception Parts ASAP

        • Release Non-Exception Parts at A15, now A10

        • Repair Gate Manager—sets schedule & priority

Exception Management

Production Meeting each Day

  • D+2 & D+7 Validation

    • BOMs complete

    • Exception Parts released

    • Non exception parts in holding area

  • A-2 Communication

    • Identify parts that will miss start date

    • Determine options

      • Wait, protected by Project Buffer

      • Expedite—20 Tags monitored

      • Swap—available part

      • Work with Supplier/Vendor for Solution

      • Buy


Introduced Critical Chain rules to manage Product Lines

  • Treat each Product as a project

  • Pipeline (staggered) Products across all lines to protect the system

  • Transitioned from precise, Task-Level management to Simple Milestones (Concerto)

  • Explicit time buffers

Current execution process













Stagger Inductions






  • Minimizes R&S WIP levels

  • Ensures only parts that are needed are in work

  • Results include increased throughput and decreased TAT

  • Do not begin until 100% of parts are received

  • Use OT only to regain lost buffer

  • All exception parts routed

  • Complete BOM BY D0

  • Ensure all exception parts out by D+2 & D+7 follow up

  • All shops follow RED, FIFO priority in RGM. Expedite tags used only for emergency

Current Execution Process


Summary of Changes

  • Create Plans with Buffers

    • Developed aggressive project plans with buffers for Product lines

    • Setup FIFO/red/expedite priority system for all piece parts

Control WIP

  • Control the release of Products into the system based on WIP

  • Hold non-exception parts until A-10

  • Do not start assembly until all parts are available

Manage Using the Buffers

  • Turn parts red 3 days before the start of assembly

  • Assign work based on buffer priorities

  • Allocate resources to red parts and/or red tasks

Exception Management

  • Review D+2 and OSR parts at D+7 to ensure on-time delivery

  • Review all parts starting A-2 and make decisions if A0 will not be met


  • WIP:

    • Was 20,000 Piece Part WIP  6000 Piece Part WIP


  • 25% increase in piece part repair

  • 97+% parts back at A0

  • 23% increase in engine production within first year

  • 50+ engines per month produced consistently

Turn Time:

  • 70% Reduction in Piece Part TAT

  • Engine total TAT reduction – 40% AVG across all product lines

  • Landing Gear TAT reduction – 60%

  • Robert Fox Award—Operational Innovation

Next steps
Next Steps

TOC implementation has continued to drive the flywheel faster YOY

  • Next steps:

  • Distribution Solution

  • Focus on Outside Repair Vendors and New Material Supply Processes

  • Attention around exception management

  • Improve synchronization