beyond lean operational excelence in mro

7/23/2019 Beyond Lean Operational Excelence in Mro

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Beyond Lean: AchievingOperational Excellence

in MRO

Kevin J. Duggan, President



© 2 0 1 4 D u g g a n A s s o c i a t e s .

A l l R i g h t s R e s e r v e d .

Kevin J. DugganPresident, Duggan Associates

• Speaker, author, and educator in applying advanced

lean techniques to achieve Operational Excellence

• Author of three books:

– Design for Operational Excellence: A Breakthrough Strategy for

Business Growth – Creating Mixed Model Value Streams

– The Office That Grows Your Business: Achieving Operational

Excellence in Your Business Process

• Kevin has assisted many major corporations

worldwide including United Technologies Corporation,

FMC Technologies, Caterpillar, Singapore Airlines, IDEX

Corporation, GKN, Parker Hannifin and more.

• Kevin has been published in over 30 trade and

consumer publications and has appeared on CNN and

the Fox Business Network.







Pop Quiz

How will you achieve OperationalExcellence?

A. Continuous improvement activities

B. Improve utilization of resources

C. Global sourcingD. All of the above

E. None of the above





Pop Quiz

Continuous improvementactivities are done to:

A. Eliminate waste

B. Improve productivity

C. Increase efficiencyD. All of the above

E. None of the above





Companies have done continuous

improvement activities for years…

Continuous Improvement






Pareto


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Impact

Effort


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u g g a n A s s o c i a t e s .


Lean Thinking ... Womack & Jones

Lean thinking is about

having each employee see

waste and eliminate it.

It is about developing a

culture of continuous

improvement.

Its about flowing Value to

the customer1996




The Jump to OperationalExcellence




The Lean Journey

Sustain

Improve

Sustain

Improve

Sustain

Improve




Mature lean company

Operational Excellence

Time in Years

L e v e l o f i m p r o v e m e n t

1 5 10






Time in Years


1 5 10



© 2 0 1 4 D





Time in Years


1 5 10



© 2 0 1 4 D



Answering the Tough Questions…

The Jump to OperationalExcellence



© 2 0 1 4 D



Why do you do Continuous Improvement?

In Your Operation…



© 2 0 1 4 D



How do you know where to improve next?




© 2 0 1 4 D



Why do you strive to create end-to-end flow?




© 2 0 1 4 D



What causes the death of flow?




© 2 0 1 4 D



What would your shop floor look like if you

applied every CI tool?






What would your office look like if you

applied every CI tool?






What would your supply chain look like

if you applied every CI tool?

• On the receiving dock?

• On the supplier’s shipping dock?

• In production control?






Where will your lean journey take you?






1. Why do you do Continuous Improvement?

2. What is the best way to do Continuous Improvement?

3. How do you know where to improve next?

4. Why do you strive to create flow?

5. What causes the death of flow?

6. What would your shop floor look like if you applied every CI tool?

7. What would your office look like if you applied every CI tool?

8. What would your supply chain look like if you applied every CI tool?

9. Where do you believe your lean journey will take you?

Nine Tough Questions





“Each and every employee can see the flow

of value to the customer, and fix that flowbefore it breaks down.”


SM

Kevin J. Duggan






Does your operation ‘Start’ every time?






And if you could, how would you

spend your time?





The Eight Steps to AchieveOperational Excellence

1. Design a lean flow using lean guidelines.

2. Implement a lean flow.

3. Make the lean flow visual.4. Create standard work for the lean flow.

5. Make abnormal flow visual.

6. Create standard work for the abnormal flow.

7. Teach employees to maintain and improve the flow tothe customer.

8. Free management to work on offense.



© 2 0 1 4

D u g g a n A s s o c i a t e s .



Step 1: Design Lean Value Streams



© 2 0 1 4



Design Lean Value Streams

Product

Family

Definition

Current StateMap

Future State Map

Implementation

Plan



© 2 0 1 4



Part Number S a w

( x 2 )

G r i n d ( x 2 )

D r i l l

M i l l ( x 3 )

M a c h i n e D e b u r r

H e a t T r e a t

C N C L a t h e 1

C N C D u a l S p i n d l e L a t h e

M a n u a l D e b u r r

H o n e

P o l i s h

S t a m p

C a r b u r i z e

S u b A s s e m b l y

P a i n t

F i n a l A s s e m b l y

T e s t

I n s p e c t i o n

S h i p

767-577 x x x x x x A x A x x x x458-743 x x x x A x x A x x x x x

187-192 x x x x x A x x x x x x

199-225 x x x x x x x A A x x x x

281-849 x x A x x x x x x x

981-156 x x x x x x A x A x x x x

623-405 x x x x A x x A x x x x x

606-723 x x x x A x x A x x x x x

689-529 x x A x x x x x x x

554-086 x x x x x A x x x x x x

345-008 x x x x x x x A x x x x x418-690 x x A x x x x x x x

583-930 x x x x A x x A x x x x x

565-451 x x x x x x A x A x x x x480-231 x x x x A x x A x x x x x

212-660 x x x x x A x x x x x x

799-398 x x x x x A x x x x x x

238-561 x x x x x x A x A x x x x

542-429 x x x x A x x A x x x x x

623-444 x x A x x x x x x x

Product Family X-Map



© 2 0 1 4



Part Number Family S u b A s s e m b l y

P a i n t


T e s t

I n s p e c t i o n

S h i p

542-429 Pump X X X X


623-405 Pump X X X X458-743 Pump X X X X








199-225 Pump X X X X799-398 Cylinder X X X X

187-192 Cylinder X X X X



689-529 Piston X X X X X




Product Family X-Map



© 2 0 1 4



Work Content Times

Part Number Family S u b A s s e m b l y

P a i n t


T e s t

I n s p e c t i o n

S h i p Work

Content

542-429 Small Pump 10 15 8 15 48

480-231 Small Pump 10 15 8 15 48623-405 Small Pump 10 15 8 15 48

458-743 Small Pump 10 15 8 15 48

565-451 Medium Pump 30 20 16 15 81

767-577 Medium Pump 30 20 16 15 81

981-156 Medium Pump 30 20 16 15 81

238-561 Medium Pump 30 20 16 15 81

583-930 Large Pump 45 40 35 15 135

606-723 Large Pump 45 40 35 15 135

345-008 Large Pump 45 40 35 15 135

199-225 Large Pump 45 40 35 15 135

799-398 Cylinder 23 100 15 15 153

187-192 Cylinder 23 100 15 15 153

554-086 Cylinder 23 100 15 15 153

212-660 Cylinder 23 100 15 15 153

689-529 Piston 25 18 10 5 15 73

623-444 Piston 25 18 10 5 15 73

418-690 Piston 25 18 10 5 15 73281-849 Piston 25 18 10 5 15 73

There should

be no more

than a 30%

variation in the

work content.



© 2 0 1 4



Product and Process Families

• A product family is a group of products that gothrough similar downstream processes or“assembly” steps.

• A process family is a group of products that gothrough similar upstream shared processes.

Upstream (Shared Resources) Downstream (“Assembly”)

FAMILY A

FAMILY B

FAMILY C

Current State Map



Steel Street

Assembly

18,400 pcs/mo.

- 12,000 “L” - 6,400 “R”

Tray = 20 pieces

2 Shifts

Shipping

Staging

C/T = 40 secs

C/O = 0

Uptime = 100%

2 Shifts

27,600 sec.avail.

1x

Daily.

C/T = 62 secs

C/O = 0

Uptime = 100%

2 Shifts

27,600 sec.avail.

C/T = 46 secs

C/O = 10 mins

Uptime = 80%

2 Shifts

27,600 sec.avail.

C/T = 39 secs

C/O = 10 mins

Uptime = 100%

2 Shifts

27,600 sec.avail.

C/T = 1 secs

C/O = 1 hour

Uptime = 85%

2 Shifts

27,600 sec.avail.

Michigan

Steel Co

500 ft coils

Tues &

Thurs.

MRP

Production

Control

90/60/30 day

Forecasts

Daily

Order

6 Week

Forecast

Weekly Fax

5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days

1 sec 39 secs 46 secs 62 secs 40 secs

Production

Lead Time

= 23.6 days

Processing

Time = 188 s

Current State Map

Assembly #2

1

Assembly #1

1

S.Weld #2

1

S.Weld #1

1

Stamping

1

I

Coils

5 Days

1200L

640R

I

2700L

1440R

I

1600L

850R

I

1100L

600R4600L

2400R

I I

Weekly Schedule

Daily Ship

Schedule

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998



© 2 0 1 4



Improving the Flow of Value

Using practical lean guidelines to

develop a Lean Future State.



© 2 0 1 4



Lean Guidelines

• Takt time

• Finished goods strategy

• Continuous flow

•

FIFO• Pull

• Schedule only one point

• Interval

• Pitch



© 2 0 1 4



Takt Time

• Customer demand rate• Synchronizes the pace of production to the

pace of sales

Takt Time =Available Time

Sold Units

=6600 minutes/wk

15 pieces/wk= 440 min

Jan Feb March April May June …

CURRENT DEMAND PROFILE

Units

Sold



© 2 0 1 4



Takt Capability

Engines

Received

Jan Feb March April May June July Aug Sept……..

Takt Capability Mode 1



May need to have preset capabilities to matchchanging customer demand



© 2 0 1 4



Finished Goods Strategy

Customer

shippingassembly

To Shipping

supermarket

Customer

shippingassembly

To Supermarket




© 2 0 1 4



FIFO – First In First Out

FIFO

-Sets the sequence of production

-Controls the amount of inventory

FIFO

Process BProcess A

h d l l



© 2 0 1 4



Branch Takt = 20.9 min./pc.

Small

ShaftLarge Shaft

Cylinder

C/T =

10min.

C/T =

25

min.C/T =

18

min.

Small

Impeller

Medium

Impeller

Large

Impeller

C/T =

8 min.

C/T =

25

min.

C/T =

29

min.

Shared Resource Calculations

h d li l i



© 2 0 1 4



Scheduling Only One Point

flowcustomer

FIFO FIFO

pull

1 2 3 4

customer

supermarket

1 2 3 4


flow

i h l



© 2 0 1 4



Aerospace: Engine Overhaul – Schedule 3 points

FIFO FIFO7 8 9

flow

FIFO FIFO4 5 6

flow

FIFO FIFO1 2 3

flow

pull

Induction

Assembly

Repair

bli hi i l



© 2 0 1 4



Establishing an interval

100Titanium ArmD

300Aluminum ArmC

600Steel ArmB

1000Plastic ArmA

Weekly

DemandProduct

Production capability - 400 per day

E bli hi i l



© 2 0 1 4




100Titanium ArmD

400400400400400Total:

300Aluminum ArmC

400200Steel ArmB

200400400Plastic ArmA

FriThursWedTuesMonDescriptionProduct

Interval = 1 week

E bli hi i l



© 2 0 1 4




2020202020Titanium ArmD

400400400400400Total:

6060606060Aluminum ArmC

120120120120120Steel ArmB

200200200200200Plastic ArmA

FriThursWedTuesMonDescriptionProduct

Interval = 1 day

Pi h





Pitch

Types

• Standard Pitch: Qty * Takt

• Inverse: When takt is long (Our demand is one aircraft

every two days)

• Floating: Large mix in process times

Attributes of Pitch

• Physical

• Visual• Anticipated

• Binary

Creating the Future State Map



I II III

Michigan

Steel Co

500 ft coils

Steel Street

Assembly

18,400 pcs/mo

- 12,000 “L”

- 6,400 “R”

Tray = 20 pieces

2 Shifts

Shipping

Staging

C/T = 40 secs

C/O = 0

Uptime = 100%

2 Shifts

27,600 sec.avail.

C/T = 62 secs

C/O = 0

Uptime = 100%

2 Shifts

27,600 sec.avail.

C/T = 46 secs

C/O = 10 mins

Uptime = 80%

2 Shifts

27,600 sec.avail.

C/T = 39 secs

C/O = 10 mins

Uptime = 100%

2 Shifts

27,600 sec.avail.

C/T = 1 secs

C/O = 1 hour

Uptime = 85%

E.P.E=2 Weeks

27,600 sec.avail.

MRP

Production

Control

90/60/30 day

Forecasts

Daily

Order

6 Week

Forecast

Weekly Fax

Weekly Schedule

Daily Ship

Schedule

5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days

1 sec 39 secs 46 secs 62 secs 40 secs

Level

Load Box

Uptime

Weld

Changeover

Total work

<168 secs

C eat g t e utu e State ap

Production

Lead Time

= 23.6 days

Processing

Time = 188 s

Assembly #2

1

Assembly #1

1

S.Weld #2

1

S.Weld #1

1

Stamping

1

Tues &

Thurs.

1x

Daily.

Quality

The Lean Value Stream



Stamping Weld + Assembly Shipping

aa

aa

Daily Orders

2 3 5

6

7

8 4

Weld

Changeover

Total work

<165 secs

Uptime

Michigan

Steel Co

500 ft coils

Steel Street

Assembly

18,400 pcs/mo

- 12,000 “L”

- 6,400 “R”

Tray = 20 pieces

2 Shifts

Production

Control

90/60/30 day

Forecasts

Daily

Order

6 Week

Forecast

Daily Fax

1

1.5 days 1.5 days 2.0 days

1 sec 165 secs

Production

Lead Time

= 5 days

Processing

Time = 166 s

Quality

FIFO

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998 © 2 0 1 4 D u g g a n A s s o c i a t e s .


L G id li f th Offi





Lean Guidelines for the Office

• Takt Capability

• Continuous flow Processing Cells

• FIFO

• Work Flow Cycles

• Standard Work for Flow

• Single Point initialization

• Visual Indicators• Changes in Customer Demand

P i C ll





Processing Cell

Forms

In

Out

Engineer

Estimator

Purchasing

Sales

Th D t il L I l t ti





The Details - Lean ImplementationChecklist

Task Number Team Members

Kit TrayTraced

Cut out

Photo Documented

Labeled

Kit Cart Work SurfaceDesigned Designed

Built Built

AOS Review Tooling

U/R Hardware review Specials Tooling Identified/documentedU/R Hardware l ist electronic documentation Tooling Identif ied

Sequence review Color Coded

In for update Tooling Presentation

Hardware Trays PPEFilled Identified

Labled Plaque created

Installation Review Check List

Th D t il B l i th W k





The Details - Balancing the Work

Assembly Lean Design

Day 1 Day 2

Event Kickoff meeting Re-cap of Day 1 Results/Progress

- Review Vision / Objectives Review Day 2 Agenda

Day 1 Agenda Day 2 Agenda

Review VSM Concepts / Lean Principles Continue / complete Op Sheet Review

Define/Calculate Takt Time Begin Installation / Mechanic Balance Charts

- Target Hours vs. Actual Hours discussion

Create Aircraft Zones to assist with - Balance work content against Takt time based upon

Install sequence determination (Team) consistent increments of work determination

Determine Install Sequence for 1st Position: Begin Point-of Use Design by Assembly

- Installs to be shifted to Major assembly - Pull k its out for each install

- Installs mov ed back from other Units - Create lists for required T ools / Hardware

- Installs mov ed forward to other Units & Consumables by install / ins tall group

Break up into teams for physical design (Team) Develop Tool / Material Presentation options

- Identify T eam leaders and members - Sk etch options for material/tool presentation

- Divide up installations by skill - Work with support reps to prototype options

- Test in use / revise as needed

Perform brief Op Sheet review (Team) - Document EH&S issues throughout

- Identify/document major problems by AOS (red pen)

- Missing components/tools/op steps wrong, etc.

- Determine consistent time increments by Op Step

Day 1 Wrap-up (Team) Day 2 Wrap-up (Team)

Th Ei ht St t A hi





The Eight Steps to AchieveOperational Excellence

1. Design a lean flow using lean guidelines.

2. Implement a lean flow.

3. Make the lean flow visual.

4. Create standard work for the lean flow.

5. Make abnormal flow visual.

6. Create standard work for the abnormal flow.

7. Teach employees to maintain and improve theflow to the customer.

8. Free management to work on offense.

O ti l E ll



g g a n A s s o c i a t e s .



Questions?

beyond lean operational excelence in mro

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