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P L N 07 B O1 C Naya Making Big Lean Stick

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  • 1. Driving Lean Transformation across a Matrix Organization in Product Development and One-Off Production One Off “Making Big Lean STICK” Making STICK Kevin Naya K i N
  • 2. How is a satellite like a fruit fly? 1-5 year program life cycle 2 week life cycle Rapid R id evolution l ti Rapid R id evolution l ti Being used to develop Lean in PD Used in genetic research Satellites are the fruit flies of Aerospace 2
  • 3. Enterprise Environment What is “Big”? Complexities of a large, interdependent organization Bureaucracy Existence of cultural norms and resistance to change Old School Rigid process documentation and policing Red Tape Lack of management focus Alphabet Soup No change management structure Firefighting Matrix of shared accountability CYA Disciplined Di i li d reporting ti Silo Sil Leadership turnover New Boss Again Hopefully competitors are in the SAME environment 3
  • 4. Lesson 1: Seed Your Lean Transformation 2007 Leadership – Collaboration, Alignment People – Engagement, Inclusion, Teaming Partnering – Customers, Suppliers, Internal 2006 People & Culture – EI Teams Change Agent, Leadership Teams, Agent Throughput – TOC, Critical Chain Communication – Multi-channel 2005 Integrated Improvement Strategy I dI S Engineer First Pass Yield COPQ – RCCA – Six Sigma 2004 Training/Education – Benchmarked LAI & Boeing Internal, Trained 2000+ Employees Developed Assessments – Manufacturing, Engineering, Leaders/Compensation Reward & Recognition – Cash Awards for Improvement Teams, Celebration Events Training, benchmarking, celebration – leading indicators of change 4
  • 5. Lesson 2: Prioritize Quality and Throughput First: Prioritize quality and mitigation of technical risk ● Open qualifications reduced 100% (was 105) ● Bad engineering changes from 51% to 16% ● Unit return rate reduced 100% (was 8%) ( ) ● Cost of rework, repair, scrap reduced 70% Second: Emphasize throughput ● On time engineering improved 40% (to 93%) On-time ● Electronic unit on-time delivery = 97% Bottom line results will fall out ● Electronic unit Cost Performance Index (CPI) = 0.98 ● Consistently profitable Achieve results by doing the right things first 5
  • 6. Lesson 3: Cultivate First Hand Observation Gemba ● “The place where the truth can be found” p ● “The place where you work to create value” Gembutsu ● “Relevant things” or “real thing” Get real facts and data First Hand Observation ● A teacher ● An ff ti A effective way to experience the truth t i th t th ● The “Chalk Circle” (Masaaki Imai) ● Learn to see – Workflow – 7 Types of Waste • Overproduction, Transportation, Motion, Waiting, Processing, Inventory, Defects Work the crime scene, not the courtroom (conference room) First hand observation is the reflex of a Lean culture 6
  • 7. Lesson 4: Make Everything Simple 1236 Steps 233 Steps Order Parts 255 Steps Parts in Stores Drawings 66 Steps Start Finish Acquisition to Baseline WAS 174 Steps Assemble, Test, Ship Assy starts 2 mo. ARO 13156 Steps 1st unit ships 9 mo. ARO 11192 Steps 77% Parts to Assembly Reduction WAS in 9 weeks 13156 IS 3000 WAS IS Rapid & dramatic improvement (30% margin lift) is possible 7
  • 8. Lesson 5: Make Everything Visible Flight Software Validation Electronic Product Engineering Run R Analyze A l Review R i Revise R i Route FLOW Manage engineering throughput Situational awareness, convergence 4 iterations of learning g Create visuals, metrics, checklists , , Cultivate the right environment Burn down developmental risks Leadership, training, empowerment Define and measure “doneness” Visibility, awareness, mutual understanding/purpose, collaboration 8
  • 9. Lesson 6: Manage All Types of WIP Manage all types of WIP, especially WIP created by management Lean Implementation WIP ● Does your Kaizen (improvement event) end with 100% doneness? – Or do you carry and track actions? ● Scope out events carefully to manage the workflow ● Make commitments to achieve 100% doneness during the Kaizen How do you prioritize and focus? ● Change activities ● Leadership time ● Project tasks and reaction – Don’t start tasks until you are ready to execute to completion Focus is a controllable level for Throughput, speed, acceleration 9
  • 10. Lesson 7: Exploit the Synergy of the Tools IMPROVEMENT SYNERGY First understand the problem, then apply the right solution 10
  • 11. Lesson 8: Keep Leveraging Your Strengths Previous Now & Going Forward Innovation Innovation Great People Great People Technical Excellence Keep Technical Excellence Problem Solvers Problem Solvers Over-Optimism Push Risk Management 90% Done Pull Multi-task Multi task 100% Done Serial-task Accept Waste Eliminate Waste Heroic Firefighting Transform Sound Planning Traveled Risk Leadership Alignment Optional Participation Meeting Commitments M ti C it t Rationalization Boeing Leverage Isolation Business Excellence Traveled Work Great Place to Work Don’t throw the baby out with the bath water 11
  • 12. Lesson 9: Insist that Leaders Go First Leadership Lead change from the top down and inside out by modeling it, expecting it, being vulnerable and willing to change ourselves Motivation Create a culture of openness, confront the brutal facts and establish the existence of a burning platform Passion Engage your leaders in charting a course forward by developing the right continuous improvement vision & roadmap and over communicating it Inspiration Involve o r In ol e your people b in esting in effecti e Lean training b incl ding their ideas by investing effective training, by including and engaging them on improvement teams Focused Execution Set clear priorities, maximize the throughput of Lean improvements, and hold leaders accountable for removing barriers incentivizing the right behavior and barriers, monitoring business results Learning Organization Create an organization that is continually learning, improving, celebrating and striving to become a benchmark from which others can learn g Strong leadership, determination, trust, inspiration, humility 12
  • 13. Lesson 10: Apply Lean at 4 Organization Levels Disallow Promote Level 4: Enterprise Silo Global Thinking – full support for the best Enterprise solutions Executive Behavior Partnering – working and learning together to deliver results Teaming Collaboration – develop win-win solutions using dialog & inclusion Level 3: Value Stream Status Quality – pride in doing things right and not passing on defects Flow of Quo Throughput – making value flow consistently to the customer Value Continuous Improvement – relentlessly eliminating waste Level 2: Team Disrespect Inclusion Teams – natural work teams who maximize their contribution &Exclusion & Teaming Teaming – people working together to meet commitments Teamwork – inclusion of diverse ideas toward the best solution Lack of Level 1: Individual Energize Personal Engagement – motivated employees doing meaningful work & Growth Personal Productivity – organized employees who get things done Engage Options Personal Growth – curious employees with a thirst for learning People “Lead by making others more powerful” – Ben Zander 13
  • 14. Making Big Lean STICK – Top 10 Lessons 1. Seed Your Lean Transformation 2. Prioritize Quality and Throughput 3. Cultivate First Hand Observation 4. 4 Make Everything Simple 5. Make Everything Visible 6. Manage All Types of WIP 7. Exploit the Synergy of the Tools 8. Keep Leveraging Your Strengths 9. Insist that Leaders Go First 10. Apply Lean at 4 Organization Levels A smart person learns from their mistakes A wise person learns from those of others 14
  • 15. Favorite Quotes ONCE YOU’VE CONVINCED ONE ENGINEER, YOU VE YOU’VE CONVINCED ONE ENGINEER LEADERS GO FIRST, EXCEPT WHEN THEY GO SECOND AVAILABILITY IS NOT A SKILL SET IT’S TOUGH TO TRANSFORM WITHOUT CHANGING CHANGE IS A CONTACT SPORT MY GUYS AT THE PENTAGON TELL ME I COULDN’T GET THAT DATA, WHERE DID YOU GET IT?!! Lean is…a journey, a way of life – have FUN and enjoy the journey !! 15
  • 16. Driving Lean Transformation across a Matrix Organization in Product Development and One-Off Production One Off “Making Big Lean STICK” Making STICK Kevin Naya K i N
  • 17. About Kevin Kevin loves to do things that have never been done before that make a difference. He takes personal pride in helping to make Boeing and its talented people the best they can possibly be. Kevin’s currently leads Lean across Boeing Space and Intelligence Systems. His executive leadership role is to align the leadership across programs, products and functions to most effectively improve enterprise performance. Kevin has 22 years of experience in high-tech product development, primarily in the satellite industry. Over the last five years, he has been leading Lean and industry years business transformation. Formerly the Deputy General Manager of a Boeing subsidiary, his role was to lead business transformation. Prior to that, Kevin worked as a management consultant and had various roles including the acting Chief Marketing Officer for a client’s new business venture. Earlier in his career at g Hughes Space Company he worked on a handful of successful Government programs, including the GOES Weather Satellite and the Magellan Venus Radar Mapper. Kevin was a communication system engineer and a communication payload manager on a large program that received the NRO Gold Medal of Distinguished Performance and the David Packard Award the Department of Award, Defense's highest award for acquisition. Kevin holds a Bachelor of Science degree in electrical engineering from the University of Hawaii with an informal minor in bodysurfing. He earned a Master of Science degree in statistical communication from Stanford University and a Master of Business Administration from the Anderson School at UCLA. Kevin resides in Southern California with his wife and three children. His hobbies include basketball, skiing and learning. 17

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