Goodrich Continuous Improvement

1. GoodrichContinuous Improvement This presentation is one of a standard training series produced by the Goodrich Continuous Improvement organization. The series has been prepared for use by Goodrich organizations in the training and continuing education of their personnel. Any use outside of the Goodrich Corporation is expressly prohibited without the permission of the Goodrich Continuous Improvement organization. LP - Intro to CI - Rev 1.ppt

2. Introduction to CI - Agenda • History of Continuous Improvement • What is Lean? • What is Six Sigma? • Combining Lean and Six Sigma • Goodrich Approach to Continuous Improvement LP - Intro to CI - Rev 1.ppt

3. Late 1700’s – Interchangeability emerges • Standard gauging • Division of labor • 1800’s – Technology Driven Improvement • Engineering drawings • Modern machine tools • Late 1800’s/Early 1900’s – “Scientific Approach” • Time Study • Standard Work History of Continuous Improvement • “Craft” production prevails until the late 1700’s • Skilled Worker – Starts and finishes order • Dedicated special tools/All manual operations • Parts custom fit • High Cost – High Variety LP - Intro to CI - Rev 1.ppt

4. History of Continuous Improvement After World War II and through the 1970’s, Taiichi Ohno developed and refined the Toyota Production System, the foundation for Lean manufacturing Jim Womack and his colleagues at MIT bring attention to the Toyota Production System through their books, The Machine that Changed the World and Lean Thinking Henry Ford in 1915 introduces mass production in its purest form with a moving assembly line producing Model T’s. 1900 A.D. 2000 A.D. W. Edwards Deming, a student of Shewhart’s, lectured Japanese industrial companies on statistical management methods in 1950, after being frustrated in similar attempts in the U.S. Mikel Harry – Based on his experience at GM and Motorola, he along with others, developed the Six Sigma concepts, which have been developed and expanded by companies such as GE, Allied Signal, Lockheed Martin, and Boeing. Walter A. Shewhart, an engineer at Bell Telephone Laboratories, developed statistical tools to determine when corrective actions should be applied to processes, including the SPC control chart in 1924 LP - Intro to CI - Rev 1.ppt

5. Lean Six Sigma Class Discussion – Lean/Six Sigma • Numerous companies today are applying Lean and/or Six Sigma. You may have had some exposure to these concepts. Let’s list any words/ideas you associate with Lean and Six Sigma … LP - Intro to CI - Rev 1.ppt

6. Define Value and Identify the Value Stream • Eliminate Unnecessary Steps in the Value Stream • Make Value Flow Normal Normal vs vs Abnormal Abnormal VA NVA VA NVA Kaizen Kaizen • In Pursuit of Perfection • As Pulled by the Customer You can’t see all the waste until you strip away waste Don’t Automate Waste Don’t Automate Waste What is Lean? • Based on the principles of the Toyota Production System, Lean, at its core, is about the systematic and continuous identification and elimination of waste • Key Principles of Lean … Reference: Executive Summary of Lean Thinking by James P. Womack and Daniel T. Jones LP - Intro to CI - Rev 1.ppt

7. What is Lean? • Lean involves multiple systems and methods: • Effective workplace organization and visual controls • Improved machine layouts and multi-skilled workers • Setup reduction • One piece (or small lot) production • Standard work to enable line balancing • Kanban systems for Just-In-Time production • Small group improvement activities (Lean Events) LP - Intro to CI - Rev 1.ppt

8. Order Cash Order Cash What is Lean? Speed is a focus of Lean … “All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value-added wastes.” - Taiichi Ohno LP - Intro to CI - Rev 1.ppt

9. Before - Traditional Batch After - Lean Machines Grouped By Function Isolated Workers – Poor Teamwork Large Batches Cluttered, Unsuitable Work Area One Piece Flow Reduced Leadtime Cell Team Working Lean Example in the Factory LP - Intro to CI - Rev 1.ppt

10. Lean Example in the Office • Lean Event – Payment Request Process (Accounts Payable) • Reduced process steps by 30% • Implemented 10+ mistake-proofing ideas • Applied visual controls • To work area • To user instructions for invoice submittals • Improved productivity by 19% • Drove quality at the source LP - Intro to CI - Rev 1.ppt

11. ...to center the process and ... ... reduce variation! A systematic approach ... failure! LSL USL LSL USL LSL USL Tolerance Tolerance Tolerance What is Six Sigma (6σ)? • A structured approach for improving performance • Emphasizes importance of customer critical processes • Drives for perfection in those processes by reducing variation and eliminating defects • Uses objective, fact-based analysis techniques LP - Intro to CI - Rev 1.ppt

12. What is Six Sigma (6σ)? • Sigma (σ) is a statistical term that measures the variation in a given process and corresponds to parts per million defective (ppm) 2σ308,537 ppm 3σ66,807 ppm 4σ6,210 ppm 5σ233 ppm 6σ3.4 ppm LP - Intro to CI - Rev 1.ppt

13. 50 newborn babies dropped at birth by doctors each day 6 newborn babies dropped in a year Toxic drinking water for 15 minutes each day Unsafe water for one minute every seven months 5,000 incorrect surgical operations per week 1.7 incorrect surgical operations per week 204,000 wrong drug prescriptions each year 68 wrong prescriptions each year Two short or long landings at major U.S. airports each day Two short or long landings at major U.S. airports in 10 years Why Six Sigma? Why 99% is not good enough … 3.8 Sigma (99% Good) 6 Sigma (99.99966% Good) 99% just won’t cut it in today’s world! Our customers demand better! LP - Intro to CI - Rev 1.ppt

14. Proven problem solving/project management methodology Mathematical tools for problem solving Advanced statistical techniques IMPROVE DEFINE MEASURE ANALYZE CONTROL Charter Team, Map Process & Specify CTQ’s Measure Process Performance Identify & Quantify Root Causes Select, Design & Implement Solution Institutionalize Improvement, Ongoing Control • Customer Critical To Quality (CTQ) Factors Derived and Documented • CTQs Measured • Process Capability • Process Stability • Baseline Performance Calculated • Identify, Quantify and Verify Root Causes • Benefits Estimated • Identify and Optimize Solution(s) • Cost/Benefit Analysis • Ongoing Measurement & Monitoring Plan Implemented • Process Standardized • Benefits Validated Six Sigma – DMAIC LP - Intro to CI - Rev 1.ppt

15. Six Sigma – Example Global Express Variable Frequency Generator – Low Saturation Volts (Vsat) Define • Problem Definition: Vsat production acceptance test failures threatening customer deliveries and production schedules at customer site. Measure • Process Capability Analysis indicated a process that could become more capable. Analyze • Fishbone diagram and other analysis tools identified poor control of glue viscosity used to assemble stator and rotor core packs as a key root cause. Improve • More glue in a core pack means less iron which means less volts. • Regression Analysis revealed the exact relationship between stator & rotor weight and Vsat. Control • Understanding gained from Regression Analysis allowed controls to be imposed. • As a result there have been no failures for Vsat. LP - Intro to CI - Rev 1.ppt

16. Six Sigma  predominant impact is on Process Quality Combining Lean and Six Sigma Think about any typical process … • Lean  predominant impact is on Process Speed Six Sigma focuses primarily here Value Added Activity Lean focuses primarily here Non Value Added Activity Lead Time Lean and Six Sigma are complementary tools for reducing cost and improving customer service LP - Intro to CI - Rev 1.ppt

17. A powerful combination ... eliminate defects! eliminate waste! 6 Six Sigma & Lean Six Sigma Lean Define value xbar (m) Pull by the customer customer Create value streams LSL USL s s s s s s LSL USL target Quality Speed Make value flow minimize variation! minimize leadtime! LSL USL ... that drives impressive improvements failure! LSL USL Combining Lean and Six Sigma LP - Intro to CI - Rev 1.ppt

18. Business problem defines mix of tools required Use whatever tool and improvement activity (Lean event or Six Sigma project) best suits the problem! Lean Six Sigma Other (CPS, DFSS, LPD) Toolbox Approach to CI When uncertain which to use, let common sense prevail – select the approach that will work best in the local environment … and stick to the fundamentals. LP - Intro to CI - Rev 1.ppt

19. CI History at Goodrich • Legacy Goodrich • Aerostructures adopted Lean in mid-1990’s in response to business crisis • Several other divisions followed – independently or with assistance from Aerostructures • All divisions have at least some exposure and experience with Lean … some isolated use of Six Sigma • Decentralized approach • Former TRW Aeronautical Systems • Evolution to Six Sigma in late 1990’s • Solid foundation of training across AS • Centralized approach • Overall, some pockets of significant success, but … … higher customer expectations and tougher market conditions require that we take best practices and lessons learned and apply them consistently across the Enterprise LP - Intro to CI - Rev 1.ppt

20. Value-Added Transfer from Leaders to Others • Lessons Learned • Best Practices • Training Material • Trained Resources Learning Curve Beginners Strat Sourcing Lean Six Sigma Innovation Etc. Practitioners Accelerate Rate of Learning for All Leaders Awakening Learning Executing/Expanding Want to Accelerate Learning Willing to Help Others but Fear Interference Want a Jumpstart … Looking for Best Practices SBU Perception Leverage Value of Enterprise-Wide Processes LP - Intro to CI - Rev 1.ppt

21. GR Continuous Improvement Program • Implement a single Goodrich-wide CI program that encompasses traditional Lean and Six Sigma tools • Drawing on best practices from across Goodrich, this program will include: • Comprehensive CI Training • Standard Materials • Certification Process • Management Review Process in SBU’s • Performance Measurement & Reporting • Common Assessment Tool For Measuring CI Progress LP - Intro to CI - Rev 1.ppt

22. CI Overview 8 Hrs INTRODUCTORY Leadership Overview 16 Hrs Lean Practitioner ~80 Hrs Lean Practitioner ~80 Hrs SS Green Belt ~80 Hrs SS Green Belt ~80 Hrs SS Green Belt ~80 Hrs SS Green Belt ~80 Hrs Depth of Learning Lean Expert ~80 Hrs Lean Expert ~80 Hrs SS Black Belt ~80 Hrs SS Black Belt ~80 Hrs Design CI Expert ~80 Hrs Design CI Expert ~80 Hrs EXPERT Lean Path Six Sigma Path Design Engineering Path Curriculum Element Target Audience CI Overview All Employees Leadership Overview Key Leaders Level I (Lean Practitioner & Green Belt) CI Users and Leaders Level II (Lean Expert & Black Belt) CI Subject Matter Experts Design CI Expert (LPD & DFSS) Design/R&D Engineers Goodrich CI Program Elements • CI Training Curriculum CI Overview 8 Hrs Leadership Overview 16 Hrs LP - Intro to CI - Rev 1.ppt

23. Goodrich CI Program Elements • Certification • Criteria established for standard training certifications • Lean Practitioner, Lean Expert • Six Sigma Green Belt, Black Belt • Design Green Belt, Black Belt • Management Review Process • Each division/site to have a process and structure to oversee the execution of the local CI effort • Local process and structure should encompass both Lean and Six Sigma LP - Intro to CI - Rev 1.ppt

24. Goodrich CI Program Elements • Performance Measurement • Key operational metrics to be implemented • Probable selections … • Inventory Turns • On-Time Delivery • Cost of Quality • Value Added Per Employee • OSHA Safety Statistics • Common Assessment Tool • Provides Roadmap for improvement • Measures progress along five stages of maturity … LP - Intro to CI - Rev 1.ppt

25. Goodrich CI Program Elements “Enterprise Excellence Assessment” • Qualitative assessment of CI progress • Five “Stages” of CI Maturity • Seven “Enablers” • Roadmap for Improvement LP - Intro to CI - Rev 1.ppt

26. Path to Enterprise Excellence Stages of Maturity Pursuit of Perfection Value Chain Optimization Enterprise Improvement Localized Improvement Foundations for Change LP - Intro to CI - Rev 1.ppt