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LEAN TRANSFORMATION Final 1
- 2. UTC PROPRIETARY INFORMATION 2 EXTERNAL CUSTOMERS FACTORS A.O.G. Response Flight Capacity + Maintenance Practices Unpredictable Forecast Mix Products Variety Customer Response Product Service Overall Satisfaction Med Mix – High Volume Products • Electric Power • Fuel + Actuation High Mix – Low Volume • Avionics • CSD’s + Job Shop Overhaul & Repair • 60% Overhaul Volume • 40% Repair Volume • SB’s, EO’s & ESO’s uppliers nputs rocess utputs ustomers UTAS Miramar Worldwide Repair UTCAerospaceSystems INTRODUCTION
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- 4. UTC PROPRIETARY INFORMATION 4 FOCUS OF TRANSFORMATION CURRENT STATEEP IDG was selected for Lean Transformation project per product family matrix and PQ analysis. Focus on flow and material delivery. ELECTRIC POWER (EP) SHOP
- 5. UTC PROPRIETARY INFORMATION 5 AREA OF TRANSFORMATION Generator Shop Military Units B Militarty Shop F N I L E C Military Shop P E Regional Shop I H R Elec/ Starter /Pneu Shop Actuation Shop Hydraulics / Fuel/Pumps Shop F NDT Avionics Shop Stock Room Shop Break Room Administration Area Accessories Machine Shop Shipping/ Receiving Shared Services Facilities NDT Testing Avionics Airbus & Boeing Generator, Regional & Military Rotor Shop ELECTRIC POWER Site Analysis: •Location: Miramar, Broward County, Florida •Total Area: 85,000 sq. ft. •Total employees: 163 •Salary: 27 •Hourly: 136 •Total ACE Associates 121 •ACE Practitioners > 50% 4 •Current ACE Level: ACE GOLD • Area of focus will be Electric Power • Core business • Over 80% similar processes • PQ Analysis Data
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- 7. UTC PROPRIETARY INFORMATION 7 UTAS Miramar Worldwide Repair Pierre Goulet General Manager Osvaldo Velazquez Business Unit Leader Avionics/IDG/Rotor/Incoming Michael Wyckoff Facilities Manager George Bowman Deputy GM/ACE Manager Kathryn Carlson Contracts & Warranty RCA Manager Rogelio Chong Business Unit Leader Electric Power & CSD Terry Greene Quality Assurance Manager Vincent Jermany Business Unit Leader Accessories Edgar Lopez Business Unit Leader Machine Shop Patricia McLaughlin Finance Manager Yadira Monje EH&S Alicia Pamies HR Manager Raymond Poyner Engineering & Project Manager Peter Thomas GEN/MIL/REG Manager Darlene Lorenzo Supply Chain Manager MANAGEMENT STRUCTURE
- 8. UTC PROPRIETARY INFORMATION 8 MANAGEMENT SUMMARY Project is on track • Performed 3 out of 4 VSMs year to date. Avionics VSM scheduled for 12/11-12/13/2012. Cell design training complete. Pilot cell for lean transformation will be Electric Power to be worked jointly with Dijon and Singapore Metrics impacted will be: • CSL % (currently at 97%) • TAT (currently at 9 days) • Lead Time • Labor Times •Inventory Turn ACE/Quality Council meets monthly to discuss project status and milestones Opportunities exists for Supply Chain in order to meet delivery, packaging, and presentation of parts to support our overhaul & repair lines. Contracts administration team needs to ensure a seamlessly flow of information to guarantee 100% On time delivery
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- 10. UTC PROPRIETARY INFORMATION 10 IMPROVEMENTS IN LEAN CURRENT STATE VSMEP 6 2 34 5 7 ELECTRIC POWER Current State revealed issues in both information and material flow such as contract & quoting, communication, standard work, inventory, and over-processing. Identifying Waste in the Current State 1 – Transportation 2 – Inventory 4 – Waiting 5 – Overproduction 6 – Overprocessing 7 – Defects
- 11. UTC PROPRIETARY INFORMATION 11 IMPROVEMENTS IN LEAN FUTURE STATE VSMEP ELECTRIC POWER The lean principles were used to create flow and eliminate waste. Areas of opportunity included kitting for parts, standard work for SFR, and parts coding. Lean Guidelines in the Future State 1 – Takt Time 2 – Finished Goods Strategy 3– Continuous Flow 5 – FIFO 6 – Pull System 6- Schedule only one point
- 12. 3 3 1 5 7 2 2 2 2 2 47 UTC PROPRIETARY INFORMATION 12 IMPROVEMENTS IN LEAN CURRENT STATE VSMFS FUEL SHOP Current State revealed issues in both information and material flow such as contract & quoting, communication, standard work, inventory, and over-processing. Identifying Waste in the Current State 1 – Transportation 2 – Inventory 3 – Motion 4 – Waiting 5 – Overproduction 6 – Overprocessing 7 – Defects
- 13. UTC PROPRIETARY INFORMATION 13 IMPROVEMENTS IN LEAN FUTURE STATE VSMFS FUEL SHOP Lean Guidelines in the Future State 1 – Takt Time 2 – Finished Goods Strategy 3– Continuous Flow 5 – FIFO 6 – Pull System 6- Schedule only one point 7- Interval 8- Pitch 2 3 4 5 44 6 8 7 The lean principles were used to create flow and eliminate waste. Areas of opportunity included kanban for parts shortage control, FIFO, pitch, and process combination.
- 14. 14 IMPROVEMENTS IN LEAN IDEAL STATEEP ELECTRIC POWER CONCEPT Single Flow Line for IDGs Hospitals built into line
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- 16. UTC PROPRIETARY INFORMATION 16 ACTUAL INDICATORS Business Metrics Qualifying 2006 Bronze 2007 Bronze 2008 Silver 2009 Silver 2010 GOLD 2011 GOLD 2012 Improvement from Qualifying Year (As of 2012) Revenue ($) $74.7M $79.9M $86.7M $79.0M $82.9M $87.6M $90.0 M 20% EBIT ($) $32.6M $41.2M $48.8M $45.5M $45.9M $47.5M $55.0 M 58% Customer Survey 5.50 5.20 5.75 6.20 6.03 6.30 6.40 Above Gold Level Employee Satisfaction N/A 55% 55% 76% 76% 79% 89% 44% Increase Workmanship Escapes 94 61 32 21 15 2 0 98% Reduction Significant Escapes N/A 0 0 1 1 0 0 Significant Improvement Inventory Turn (Days) N/A 5.51 5.62 4.81 6.27 6.52 6.75 18% Turn Improvement CSL (%) 77.0% 80.0% 85.0% 88.4% 93.2% 97.0% 97.3% 26% Improvement Turn Around Time (Days) 21 20 17 15 14.5 10.0 9.5 11 days Reduction
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- 18. 18UTC PROPRIETARY INFORMATION EIGHT SUCCESS FACTORS FOR LEAN OPS. Lean Operations Target Linkage: Control Tower Lean Operations Transformation Road Map Lean Operations ACE 12.0 Criteria Lean Operations Process Vision Lean Operations Toolset Lean Operations Roles & People Lean Operations Competency Development Lean Operations Commitment & Communication 1 2 3 4 8 7 6 5
- 19. 19UTC PROPRIETARY INFORMATION EIGHT SUCCESS FACTORS 1 PROCESS VISION Site GM, staff and executives share process vision for Lean implementation in MRO. Emphasis on developing a truly lean value stream.
- 20. 20UTC PROPRIETARY INFORMATION EIGHT SUCCESS FACTORS TARGET LINKAGE2 Project KPI’s include increased Customer Satisfaction Level to meet 100% on time delivery to be aligned with control tower and corporate compass.
- 21. 21UTC PROPRIETARY INFORMATION EIGHT SUCCESS FACTORS TRANSFORMATION ROAD MAP4 Pacemaker is scheduled/set at only one point STANDARD WORK INSTRUCTIONS: 1. Verify your CMM with corresponding Std. Work Combo Sheet. 2. Place actual start time on right upper hand corner. 3. Color GREEN every step on left column after operation is completed ahead or on time. 4. Color RED when operation completed is behind target time. 5. Use the "Comments/Issues" box to point out delays/issues in your process. 6. If continuing with unit next day, mark down actual start time in "Comments/Issues" box. 7. Submit turnbacks when you are stopped from proceeding in your process. 8. Once you are done with unit, submit form to local ACE Office for review if comments/issues are found. 9. If there are no comments/issues, erase all checks & times and return this form to its location for reuse. OVERHAUL ONLY P/N: 734374 755216 734181 •Event Profile •Pre-Work •Target Progress Report Establish Flow via FIFO and/or Pull. Follow up on Kaizen Action Items. Standardize all FIFO lanes.
- 22. 22UTC PROPRIETARY INFORMATION EIGHT SUCCESS FACTORS TOOLSET5 •The 13 ACE tools: • 5S • VSM • Process Cert. • Std. Work • 3P • TPM • Set-up Reduction • MFA • QCPC • RRCA • Mistake Proofing • Passport • Policy Deployment The ACE Portal is a training interface for the 13 ACE tools. Site ACE Manager uses the ACE tools to develop and train personnel.
- 23. 23 EIGHT SUCCESS FACTORS Roles and Responsibilities6 Juan Araujo Steve Borchert Dev Rudra Pierre Goulet George Bowman Ebner Sanchez & Dayron Morales Provides Corporate Strategy & business goals for Worldwide Repair Worldwide Lean Transformation Manager for site organization Develops action plan for repair sites in North America Oversees site’s initiatives for lean transformation. Verifies metrics. Develop & execute action plan to meet ACE targets. Create kaizen teams to bring projects & action items to closure. 1. FORM & TRAIN TEAMS 2. ANALYZE & INVESTIGATE 3. EXECUTE ACTION PLAN
- 24. 24 MIRAMAR ACE MANAGEMENT STRUCTURE Raymond Poyner Site Pro-Cert Champion Yadira Monje Site EH&S Champion Terry Greene Site QCPC Champion Kathryn Carlson Customer MFA Champion George Bowman Deputy GM/Site ACE Manager Michael Wyckoff Site TPM Champion Pierre Goulet Site General Manager Roles and Responsibilities6 Electronics* Avionics Electric Power* Military Regional Generator Airbus Boeing Accessories* Pneumatics Hydraulics Fuel Actuation RCA Machine Shop Shared Services * Indicates a Value Stream
- 25. UTC PROPRIETARY INFORMATION 25 EIGHT SUCCESS FACTORS 33 84 0 10 20 30 40 50 60 70 80 90 100 Salary Employess Hourly Employees ACE Associates 85% 57% 57% 52% 64% 40% 38% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% George Bowman Juan Ramirez Ebner Shanchez Dayron Morales Practitioner Ops Practitioner BP Competency Development7 UTAS Miramar Employees : 165 Salary : 35 Hourly : 130 Data as of 11/7/2012 Number of ACE Associates Practitioner Level Completion %
- 26. UTC PROPRIETARY INFORMATION 26 EIGHT SUCCESS FACTORS Communication & Commitment8 11 Completed Ongoing Not Started 1. Customer Issues: PO missing, S/N & P/N missing or inaccurate. RRCA Project ongoing, see kaizen newspaper. Initiated Date: 8/8/2012 – Ongoing Target Completion Date: 12/01/2012 Project Owner: K. Carlson 6. Quoting Issues: Over and above, contracts, SFR, & part coding projects ongoing. Continue to collect turnback data, see kaizen newspaper. Initiated Date: 8/1/2012 Target Completion Date: 10/31/2012 Project Owner: K. Carlson & Bowman 2. Inaccurate SFR: RRCA with American Airlines, and US Airways. Initiated Date: 8/17/2012 – Ongoing Target Completion Date: 10/31/2012 Project Owner: O. Velazquez 7. Incorrect work scope selected: Turnbacksisolated to one shop. Shop was briefed, continue to collect turnbackdata. Completed: 8/24/2012 Target Completion Date: COMPLETED Project Owner: V. Jermany 3. Hold related Issues: Hold reduction project ongoing, see kaizen newspaper. Initiated Date: 3/1/2012 – Ongoing Target Completion Date: 06/17/2013 Project Owner: K. Carlson 4. Unit submitted withoutwarranty review: Turnbacksin severalshops. See next slide. Unit submitted for quote without engineeringreview: Turnbacksin several shops. See next slide. Planned Start Date: Pending turnback data Target Completion Date: COMPLETED Project Owner: Bowman/ Sanchez 5. PO Review: PO review project ongoing, see kaizen newspaper. Initiated Date: 4/1/2012 – Ongoing Target Completion Date: 10/15/2012 Project Owner: K. Carlson Establish a communication plan for all team members (with target dates) Create cross functional teams Get buy in from management and employees Develop a Kaizen Newspaper to identify action items Create a Project Plan to track, update, and brief both salaried and hourly employees for any changes Develop a timeline to track project completions Projects List 2013 Q1 Q2 Q3 Q4 Electric Power Line Balancing Kaizen Newspaper No. Action Owner Due Date %Com plete 1 Assemble Cross functional team (Chino – Ozzie – Materials – 2 Leads - 2 techs – Eng – Quality - Ship/Rec.) R. Chong/O. Velazquez 11/1/12 2 Identify line balancing element(work tasks) of the overhaul process – (Time Study Validation) R.Chong/O. Velazquez 2/1/2013 3 Setup pilotarea to debug process (validate) -3P R.Chong/O. Velazquez 4/1/2013 4 Make/Revised Engineering documentation with approval Gwain/CS Eng TBD 5 Create STD work (Draft) for new process R.Chong/O. Velazquez 2/1/2013 6 Develop implementation proposal including required recourses and materials R.Chong/O. Velazquez 5/1/2013 7 Schedule implementation withoutbusiness impact R.Chong/O. Velazquez 5/1/2013 8 Implementfinal balanced process R.Chong/O. Velazquez 6/1/2013 9 Update STD for final implementation R.Chong/O. Velazquez 7/1/2013 Lighthouse Project Training & Education Pilot Cell Dry Runs Monitor & Implementation Phase
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- 28. Preparation & Analysis Pre-Work Activities • PQ Analysis • Product Family Matrix • Current State Map • Future State Map • Site Pre-Analysis • Selection of Lighthouse 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 20 40 60 80 100 120 140 160 180 761574B 757300X 755469E 740119X 1701317A 741899 1701320 729714X 727792X 729825X 772292 727810C 766277B 739515X 766088B 751765A 755017B 1701768 750860 750875 720845X 729722C 766219 763457 756589A 735874D 977J033-8 735511A 1702549 766288 767146A 707304E 745329X 752157D 741901 762888B 764939B 1706903 764939A 752168B 758922A 744041B 758928 772181A 731579C 737852A Percentage Quantity Part Numbers (A) High Volume (B) Medium Volume (C) Low Volume (D) Very Low Volume Phase 1 Training ACE • VSM • Line Back Logistics • Leading Lean • Cell Design • Kanban for Internal Cell • Supply Chain & Logistics Unit received. PO documents reviewed by receiving inspector. Unit disassembled and cleaned Unit received. PO documents reviewed by receiving inspector. Unit disassembled and cleaned Unit Inspected by technician SFR and Parts list created Quote required Yes No RCA to quote order and put on QH hold. Do not work or pull parts until approved. Submit parts list to the Crib Proceed to Assembly (Q) (T) (V) ($) (%) (R) (O) (1) (L) (M) (N) (U) (K) (F) (E) (#) Part is outside CMM tolerance. NOT for visual inspection Ex.(caliper measurement) Any SERVICEABLE PMA part. If part is unserviceable use applicable part code Part is corroded as specified in the CMM Part is eroded as specified in the CMM Part damaged by technician during an operation Ex.(assembly, disassem bly) Part replaced 100% of the time as indicated by the CMM Part is contaminated Ex.(a filter) Part transferred to or from a unit per customer approval Induced damage by the customer (photo required) Item has been repaired with a repair/part not in the CMM Part replaced due to an AD, or Attrition/Obsolescence Part does not function electrically per CMM Part/material that is consumed on use Ex.(solder & brazing clips) Part is leaking per CMM Ex.(transducer) Part not received with the unit (photo required) Broken/cracked/deteriorated/worn per CMM VISU AL inspection UTAS MIRAMAR PART CODING DEFINITIONS (@) Serviceable part replaced per customer request Ex.(EO, ESO, S/B) Phase 2 Phase 3 Pilot Events •Design & Implement Lighthouse • Electric Power Cell Design • Electric Power Kanban System Design & Implementation • Parts Delivery Design & Implementation Phase 4 Concept ACE LEAN 12.0 Criteria Apply the lean concepts while concentrating on the following: • Plan for every part • Optimized Part packaging • Visual Pitch • Model Cell Design • Continuous Flow and/or FIFO • Kanban 2012 - ACE GOLD Phase 5 Shop Floor Layout Create Kaizen team to deploy the first lean cell design. Focus effort on part family matrix and monitor progress with turn back collection. Start Roll-Out
- 29. 2014 2014Q4 December 31,2014 Verification & Implementation -Monitor and verify turnbacks generated by pilot cell - Open & Close out projects to resolve turnbacks - Best practices implementation - Develop strategy to deploy pilot cell throughout the site for 2014 Completed Ongoing Not Starte 1. Customer Issue s: PO missing, S/N & P/N missing or inaccurate. RRCA Proje ct ongoing, see kaizen newspaper. Initiated Date: 8/8/2012 – Ongoing Target Completion Date: 12/01 /2012 Proje ct Owner: K. Carls on 6. Quoting Issue s: Over and above, contracts, SFR, & part codin g projects ongo ing. Continue to collect turnback data, see kaizen newspaper. Initiated Date: 8/1/2012 Target Completion Date: 10/31 /2012 Proje ct Owner: K. Carls on & Bowm an 2. Inacc urate SFR: RRCA with American Airlines, and US Airwa ys. Initiated Date: 8/17/2012 – Ongoing Target Completion Date: 10/31 /2012 Proje ct Owner: O. Velaz quez 7. Incorrect work scope selec ted: Turnbacksisolated to one shop. Shop was briefe d, continue to collect turnbackdata. Completed: 8/24/2012 Target Completion Date: COMPLET ED Proje ct Owner: V. Jermany 3. Hold related Issue s: Hold reduction project ongoing, see kaizen news paper. Initiated Date: 3/1/2012 – Ongoing Target Completion Date: 06/17 /2013 Proje ct Owner: K. Carls on 4. Unit subm itted withoutwarranty review: Turnbacksin severalshops. See next slide. Unit subm itted for quote witho ut engineeringreview: Turnbacksin several shops. See next slide. Planned Start Date: Pend ing turnback data Target Completion Date: COMPLET ED Proje ct Owner: Bowm an/ Sanchez 5. PO Review: PO review proje ct ongoing, see kaizen newspaper. Initiated Date: 4/1/2012 – Ongoing Target Completion Date: 10/15 /2012 Proje ct Owner: K. Carls on 2013 Q1 Q2 Q3 Q4 Lighthouse Project Training & Education Pilot Cell Dry Runs Monitor & Implementatio Phase Q1 March 31, 2014 Lighthouse project initiation - Management Communication - Set milestones - Biweekly meetings to verify milestones - Breakdown of unit subassemblies plan Electric Power Line Balancing Kaizen NewspaperNo. Action Owner Due Date %Com plete 1 Assemble Cross functional team (Chino – Ozzie – Materials – 2 Leads - 2 techs – Eng – Quality - Ship/Rec.) R. Chong/O. Velazquez 11/1/122 Identify line balancing element(work tasks) of the overhaul process – (Time Study Validation) R.Chong/O. Velazquez 2/1/20133 Setup pilotarea to debug process (validate) -3P R.Chong/O. Velazquez 4/1/20134 Make/Revised Engineering documentation with approval Gwain/CS Eng TBD 5 Create STD work (Draft) for new process R.Chong/O. Velazquez 2/1/2013 6 Develop implementation proposal including required recourses and materials R.Chong/O. Velazquez 5/1/2013 7 Schedule implementation withoutbusiness impact R.Chong/O. Velazquez 5/1/20138 Implementfinal balanced process R.Chong/O. Velazquez 6/1/2013 9 Update STD for final implementation R.Chong/O. Velazquez 7/1/2013 Q2 June 30, 2014 All personnel trained and aligned with the lighthouse project. - 3P Cell Design -Standard Work Cell Design - Kanban - Lineback Logistics - Leading Lean - Apply lessons learned from Dijon and Singapore Q3 September 30, 2014 Lighthouse Dry-runs - Pilot cell design - Part’s kitting presentation - Kanban - Parts distribution to pilot cell - Completed 3D simulation for pilot cell
- 30. Competency Development 30 33 84 0 10 20 30 40 50 60 70 80 90 100 Salary Employess Hourly Employees ACE Associates UTAS Miramar Employees = 165 Salary = 35 Hourly = 130 85% 57% 57% 52% 64% 40% 38% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% George Bowman Juan Ramirez Ebner Shanchez Dayron Morales Practitioner Ops Practitioner BP ACE Associate ACE Practitioner