process-based management: a winning strategy · product / service-oriented ... quality, schedule,...

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Copyright © 2006 Boeing. All rights reserved. Object Management Group Workshop by David E. Farrar Associate Technical Fellow Process Integration & Command Media Program Management & Business Excellence Global Mobility Systems Precision Engagement & Mobility Systems Integrated Defense Systems OMG Workshop at Hyatt Regency SF Airport Hotel – Burlingame, CA 17 October 2006 Process-Based Management: A Winning Strategy

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Copyright © 2006 Boeing. All rights reserved.

Object Management Group Workshop

by

David E. Farrar

Associate Technical FellowProcess Integration & Command Media

Program Management & Business ExcellenceGlobal Mobility Systems

Precision Engagement & Mobility SystemsIntegrated Defense Systems

OMG Workshop at Hyatt Regency SF Airport Hotel – Burlingame, CA17 October 2006

Process-Based Management:A Winning Strategy

2Copyright © 2006 Boeing. All rights reserved.

2005-K0037

The Global Mobility Systems Organization

CommercialAirplanes

Boeing CapitalCorporation

Connexion byBoeing

Integrated Defense Systems

The Boeing Company

HQ in Long Beach, CA

GlobalMobilitySystems

BoeingTechnology

Shared ServicesGroup

Network andSpace Systems

C-17 Program 767 TankersProgram

Derivative Airplane Programs

AdvancedMobilitySystems

PrecisionEngagementand Mobility

Systems

SupportSystems

AdvancedDefense and

SecuritySystems

GlobalStrike

Systems

Airborne Anti-SubmarineWarfare and Intelligence,

Surveillance andReconnaissance

RotorcraftSystems

Advanced PrecisionEngagement andMobility Systems

3Copyright © 2006 Boeing. All rights reserved.

2005-K0037

The Global Mobility Systems Products

C-40A C-32ANext

Generation

C-40B767 Tanker C-17

4Copyright © 2006 Boeing. All rights reserved.

2005-K0037

GMS Vision, Mission, and Values

•Enhancing Shareholder Value•Quality•Good Corporate Citizenship•Customer Satisfaction•A Diverse and Involved Team•Integrity•People Working Together•LeadershipA&T Values

A&T provides solutions that shape the future of mobility for our global military and commercial customers. We will leverage our strengths, team-based culture, supplier partners, and

customer knowledge to achieve market leadership and provide unprecedented value to all stakeholders.

A&T MissionThe world’s first choice for innovative mobility solutions – setting the standard for excellence

A&T Vision

People working together as a global enterprise for aerospace leadership

Boeing Vision 2016

•Enhancing Shareholder Value•Quality•Good Corporate Citizenship•Customer Satisfaction•A Diverse and Involved Team•Integrity•People Working Together•Leadership

Global Mobility Systems Values

Global Mobility Systems provides solutions that shape the future of mobility for ourmilitary and government customers. We will leverage our strengths, team-based culture, supplier partners, and customer knowledge to achieve market leadership and provideunprecedented value to all stakeholders.

Global Mobility Systems MissionThe world’s first choice for innovative mobility solutions – setting the standard for excellence

Global Mobility Systems Vision

People working together as a global enterprise for aerospace leadership

Boeing Vision 2016

global

5Copyright © 2006 Boeing. All rights reserved.

2005-K0037

“The Law of Change” Drives Improvement

If you want a different outcome, you must change either the process, the product, or both.

The Corollary

If you always do what you have always done, you will get what you have always gotten!

The Law

6Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Cultural Change Focused on Processes

$$, schedule, cost, quality

Product / service-oriented

Tribal work-knowledge

Directed solutions

Reward heroes

Quality, schedule, cost

Customer solution-oriented

Process management

Team-based solutions

Reward values / results

$$, schedule, cost, quality

Product / service -oriented

Tribal work -knowledge

Directed solutions

Reward heroes

Quality, schedule, cost

Customer solution -oriented

Process management

Team-based solutions

Reward values / results

Then Now

Schedule, cost, quality

Product / service-oriented

Tribal work-knowledge

Directed solutions

Reward heroes

Quality, schedule, cost

Customer solution-oriented

Process management

Team-based solutions

Reward values / results

Then Now

7Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Adapted from Applied Strategic Planning: A Comprehensive Guide, page 330, published by Pleiffer and Company, 1992

Process Management Brings it Together

PlannedJourney

Strategic Direction

Work Group

Individual

Many UnalignedProjects

Tactical Direction

Malcolm BaldrigePrinciples

8Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Baldrige Criteria Framework: A Systems Perspective

3Customer and Market Focus

4Measurement, Analysis, and Knowledge Management

1Leadership

2Strategic Planning

5Human Resource

Focus

6Process

Management

7BusinessResults

9Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Baldrige Category 6 : Process Management

STABLISHMENT: What are your key value creation and key support processes and how does your organization determine them?

EQUIREMENTS: How do you determine requirements for your key value creation processes, incorporating input from customers, suppliers, and partners?

EASURES: What are your key indicators or performance measures to control and improve these processes?

REVENTION: How do you prevent rework and defects in these processes?

10Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Characteristics of a ProcessCharacteristics of a Process--Managed Managed Organization Organization

• Senior Leadership Buy-in • View business as a collection of processes• Strategic plans drive processes• Clear relationships between processes and

key business results and goals• Focuses on key customer-driven processes• Work Teams learn processes• Process health reporting and review

11Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Characteristics of a ProcessCharacteristics of a Process--Managed Managed Organization (cont’d)Organization (cont’d)

• Manage by data• Managerial patience• Emphasis on sustainable improvements• Improvement in processes across the

business• Integrated with other initiatives• Common processes and standardization

across user groups

12Copyright © 2006 Boeing. All rights reserved.

2005-K0037

What is a Process?What is a Process?

Resources

InputsTasks

Requirements

Outputs

A set of sequential or concurrent tasks performed by a process team led by a Process Owner…

that transforms inputs from suppliers…

into useful outputs for customers…

E.g., Requests, Raw Materials, Parts, Tool Designs, Planning Documents, Maintenance Schedule

E.g., Completed Documents, Completed Assemblies, Fabricated Tools, Delivered Kits, Functioning Equipment

that meets requirements and utilizes resources to complete the outputs.

13Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Generic Enterprise Process ModelGeneric Enterpris e Proces s Model

(For Training Purpos es Only – Not Real)

1.0 Enterprise Management1.0 Lead the Enterprise

Provide Legal Services (J. McBrew)

Integrate & Deploy Processes & Procedures (P. Smith)

Ensure Quality & Mission Assurance (A. Jones)

Ensure Integration of Strategic Business & Functional Planning (P. Smith)Ensure Organizational Effectiveness (P. Smith)

Ensure Continuous Improvement (A. Jones)

Perform Integrated Business Financial Management (T. Green)

2.0 Manage Programs

8.0 Provide Enabling Infrastructure

Perform Self-Governance (A. Jones)

Ensure Customer Satisfaction (P. Smith)

Manage IWA Performance (V. MacIvy)

Minimize Program Risk (G. Hermann)

Manage Program Planning and Execution (G. Hermann)

Process Owner: E. Andrews

Process Owner: R. Manson

Administer Contracts (R. Altman)

Provide Financial Services (V. MacIvy)

Provide Integrated Information Systems & Services (W. Kuhn)

Manage Facilities & Equipment (S. Harelson)

Provide Human Resources Services(D. Owens)

Provide Security & Fire Protection Services (R. Vector)

Manage Non-ProductionProcurement (S. Harelson)

Provide Safety, Health, and Environmental Services(N. Shepherd)Provide Export/Import Compliance (M. Clarrett)

3.0Create, Acquire& GrowBusiness

Create Opportunities& New Markets (D. Lane)

Acquire New Business (S. Larkins)

Maintain / GrowExisting Business (E. Andrews)

Process Owner:B. Braun

4.0IntegrateProduct/ServiceDefinition

Plan & Control Product/Service Design (S. Adell)

Define & Manage Product/ServiceRequirements (M. McDonald)

Verify & ValidateProduct/Service (B. Sills)

Process Owner:N. Nester

5.0ManageSuppliers

Manage MaterialRequirements (S. Howell)Select Source (Nelson)Negotiate & AwardPurchase Contracts (P. Nelson)Manage SupplierPerformance (P. Nelson)Manage SupplierQuality (M. Perry)Manage Supply Base (G.

Harding)

Process Owner:M. Delaney

6.0ProduceProduct

Define ProductionPlan (A. Ballard)

Assemble and Deliver Product (A. Ballard)

Verify ProductionProcesses (M. Kingston)

Provide Parts, Supplies, GFE, & Tools to Assembly (J. Banks)

Process Owner:S. Jurgens

7.0SupportProducts &Services

Process Owner:L. Holland

Provide Supply Support (D. Schmaltz)

Provide Technical Data (D. Blake)

Provide Retrofit & Modification Services (C. Bearden)

Provide Field Services (J. Williams)

Provide Instructional Systems Data& Training (Y. Jensen)Provide Integrated SupportPlanning & Management (D. Yee) Provide System Support Analysis (S. Gore)Provide Support Equipment (R. Stanton)

Process Owner: T. Green

Provide Communications Services(R. Brown)

Communicate Positions & Direction (R. Brown) Strengthen the Team (D. Owens)

Provide Integrated Performance Management (Cost & Schedule)(V.MacIvy)

Concurrently Develop Product/Service/Build-to / Buy-to/ Support Elements (K. Kern)

Manage Gov’t Property (J. Givens)

Manage Inventory (J. Johnson)

Provide Flight Operations Services (D. Gregory)

Provide Ethics Guidance (D. Hanson)

Denotes Key Process

1.01

1.021.031.04

1.05

1.06

1.07

1.08

1.09

1.10

1.11

2.01 2.02 2.03 2.04 2.05

3.01

3.02

3.03

4.01

4.02

4.03

4.04

5.01

5.025.03

5.04

5.05

5.06

5.075.08

6.01

6.02

6.03

6.04

7.01

7.02

7.03

7.047.05

7.06

7.07

7.08

8.01

8.02

8.03

8.04

8.05

8.06

8.07

8.08

8.09

8.10

8.11

Rev: 23 Sep 05

Figure P-2, Generic Enterprise Process Model

14Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Processes can be expanded to lower, more-detailed levels

Levels of Processes: Owners at Each LevelLevels of Processes: Owners at Each Level

Level 1

Level 2

Enterprise Process Model

Level 0Core Area Executives

Executives and others

15Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Levels of Processes Levels of Processes (cont’d)(cont’d)Level 0 Process: 6.0 Produce Product

Tier 1 Process: 6.03 Assemble and Deliver Product

Tier 2 Process: 6.03.02 Produce

Major Assemblies

.01

.03

.04

.05

.06

.07

.08

.02 Produce Major Assemblies

.01

.03

.04

.05

.06

.07

.08

Tier 3 Process: 6.03.02.02

Perform 17 A/N/Y Subassemblies

and so on……..

.02 Perform 17 A/N/Y SubassembliesLevel 0

Process Model

Level 1 Level 1Level 1

Level 2 Level 2Level 2

Level 3 Level 3Level 3 and so on……..

Core Family

As one tier is defined the next lower tier is identified

Executives

Executives and others

16Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners: What Do They Do?• Assigned at every level of the Process Model• Include Executive Leaders at Level 0 and at many

Level 1s• Qualifications:

• May or may not be a manager• Usually a subject matter expert on the process• Uses the process to manage that piece of the

business • May be accountable for activities outside

functional control• May own more than one process

17Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners: What Do They Do?

• Responsible for:• Implementing the steps of PBM• Documenting the process• Ensuring process performance• Ensuring both internal and external customer involvement• Involving suppliers of incoming processes• Improving the process

• For certain processes, may manage the process jointly with the Government Customer

• Must ensure associated procedures are current and are adhered to

18Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Step 1Define theProcess

Step 3Determine

Performance

Step 2EstablishMetrics

Step 4AnalyzeProcessStability

Step 5Set Goals

Step 6Analyzeand Plan

Improvements

Step 7Implement

Improvements

Continuous ProcessImprovement Loops

If Normal Monthly Performance Cycle

If Metric Change Required

If Process Change Required

I m p r o v e m e n t O p p o r t u n i t i e s

Gate 1 Gate 2 Gate 3 Gate 4

When the process has not been

defined

When the process has

been defined, but no metrics

When the process is

defined, has metrics, but is not stable

When the process is defined, has

metrics, is stable, but still needs improvement

The Seven Steps of Process-Based Management

Six to TenManageable Steps From

Customer’s Perspective

How You Are Doing Predictable

Performance

Where You Are Going and Why How and

Why You Will Get There

Get There!

Process Owners/Teams Use PBM Seven-Step MethodologyProcess Owners/Teams Use PBM Seven-Step Methodology

19Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners/Teams Document and Define Processes, with Customer Agreement

Process Title: Process No.:

Next-Higher-Level Process:

Creation Date:Revision Date:

Process Objective:

Lead PBM Deployment1.07 Integrate and Deploy Processes and Procedures

Lead PBM deployment across GMS Programs and IDS-LB Tenants as appropriate in alignment with IDS business strategies

1.07.029-27-2005

• Strategies/Flow-Down Goals/Deployment Plans• Training Requests • Consulting and Facilitation Requests• PBM Products and Data• Gap Analyses • Training Surveys/Suggestions• Internal/External Assessment Results

• Deployment Plan /IMP/IMS• PBM Methodology / Command Media / Training

Materials• Systems to Manage PBM/Health and Deployment

Reports• PBM Expertise / Process Owner Consulting &

Coaching / Process Team Facilitation• Effective Resolution of Process Related Conflicts• Training• Corrective/Preventive Actions

• TA-288M, Process Owners Manual• TA-318, PBM James Jones

Glen Green, DCMAPBMS; Root Cause Corrective Action System

• Receive Inputs from Suppliers

.01 Define PBM Methodology/Command Media

.02 Plan PBM Approach

.03 Implement PBM Deployment

.04 Analyze PBM Deploymentand Performance Results

.05 Capture Lessons Learned and Improve PBM

• Deliver Outputs to Customers

Process TasksBeginning Boundary Task:

Ending Boundary Task:

Inputs

Suppliers

Customers

Process Requirement Sources:Process Owner:

Process Customer(s):

Process Specialist:InformationSystems

OutputsOutputs

• 1.01.01, Assess and Understand Inputs• Process Owners/Customers/Focals/Users• DCMA/SG

(Must have concurrence on file for all process changes. Use second page if necessary.)

John Smith

• 1.01.06, Flow Down Strategies and Deploy Plans• 1.02, Ensure Organizational Effectiveness• 1.04 Ensure Continuous Improvement• Process Owners/Customers/Focals/Users• DCMA/SG• Executive Management/Program Management

10-12-2005

PROCESS DEFINITIONPROCESS DEFINITION

X31111 NEW (05 DEC 2005)

Business:Site: Program(s):

Bus. Unit:Business:Site: Program(s):

Bus. Unit:IDS PE&MSLong Beach GMS: C-17

For Training Purposes Only

20Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners/Teams Define the Process in a Flow ChartProcess Owners/Teams Define the Process in a Flow Chart

WhoResponsible Organizations, Individuals or Processes

Input OutputProcess Title:Process Owner:

Process Number:Creation Date:Revision Date:

Input/OutputInput/Output TaskTask a Connector R RecordDecisionDecision ControlPoint

Go toX.XX

In-ProcessInterface

1.07.0210-12-20051-24-2006

Lead PBM DeploymentJohn Smith

PROCESS FLOWCHARTPROCESS FLOWCHART

X32629 NEW (05 DEC 2005)

Business: Bus. Unit:Site: Program(s):

IDS PE&MSLong Beach GMS: C-17

1.01.06, Flow Down Strategies and Deploy Plans

SG/DCMA

All Users

Process Management Integration (PMI)

1.01.01 Assess and Understand Inputs

Executive/ Program Management

Strategies/FlowedDown Goals/Strategic

Plans

Requests

Requests/PBM Products

and Data/Gap Analyses

TrainingSurveys/

ImprovementSuggestions

Internal/ExternalAssessment

Results

Rec

eive

Inpu

ts fr

om S

uppl

iers

Define

PBM

Methodology

and Command

Media

Plan

PBM

Approach

Implement

PBM

Deployment

Analyze

PBM

Deployment

and

Performance

Results

Capture

Lessons

Learned

and

Improve

PBM Del

iver

Out

puts

to C

usto

mer

s

PBMDeploy-

ment Plan/IMP/IMS/

PBM Method-ology/CommandMedia/Training

Materials/Systems to

Manage PBM/Health &

Deployment Reports/PBM Expertise/PO Consulting& Coaching/Process TeamFacilitation/

EffectiveResolutionof Process-

RelatedConflicts/Training

PBMDeployment Plan/

IMP/IMS

Health & DeploymentReports

Q1

Q2

T1

T2

T3

1.07.02.05 Capture Lessons Learned and Improve PBM

Documented LessonsLearned/ImprovementSuggestions/Reports

Go to1.03.07Manage

Corrective/Preventive

Actions

All Level 3 Processes Under 1.07.02

Improve’t Projects/Corrective/Preventive

Actions/Requests

For Training Purposes Only

21Copyright © 2006 Boeing. All rights reserved.

2005-K0037

ProcessPerformance

Meet or ExceedCustomer

Expectations

AttainSuperiorBusinessResults

QualityQuality

EfficiencyEfficiency

TimelinessTimeliness

CycleCycle--TimeTime

Measure of conformance or non-conformance (defects) to requirements or expected performance

Measure of success in meeting a customer commitment

Measure of output that a process produces in relation to costs

Measure of time between a customer request and delivery of the product or service to the customer

RequirementsRequirements Key Performance CategoriesKey Performance Categories

Process Owners/Teams Use Metric Categories to Establish Measures

22Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners/Teams Define their Metrics in a Process Performance AgreementProcess Owners/Teams Define their Metrics in a Process Performance Agreement

(e.g., % Rework & Repair Hours/Total Hours)

(e.g., % On-Time to Manufacturing Schedule)

(e.g., Avg. Hours per Engineering Drawing)

(e.g., Total Days from Input to Delivery)

For Training Purposes Only

Process Title: Process No.:Creation Date:

Revision Date:Next-Higher-Level Process:

PROCESS PERFORMANCE AGREEMENTPROCESS PERFORMANCE AGREEMENTBusiness: Bus. Unit:Site: Program(s):

Quality

Timeliness

Efficiency

Cycle Time

John Smith James Jones Glen Green

MinimumAcceptableLevel (MAL)

Annual / Multi-Year

Goals

Benchmark/Comparative

Data

WeightingFactor

(Must Have At Least One “1”)Metric DefinitionMetric Category

Process Measurement

Process Owner’s Name Process Customer(s) Name(s) Process Specialist’s Name

Process Title (Verb + Noun)

0.00.00

MM/DD/YY

MM/DD/YYNext-higher level process

Quality Metric Definition (list company/organization/source benchmarked [if applicable])

Timeliness Metric Definition (list company/organization/source benchmarked [if applicable])

Efficiency Metric Definition (list company/organization/source benchmarked [if applicable])

Cycle Time Metric Definition (list company/organization/source benchmarked [if applicable])

MAL

MAL

MAL

MAL

Annual Goals(Multi-Year)

Benchmark/Comparative

Data

Weight

Weight

Weight

Weight

Benchmark/Comparative

Data

Benchmark/Comparative

Data

Benchmark/Comparative

Data

IDS PE&MSLong Beach GMS: C-17

Annual Goals(Multi-Year)

Annual Goals(Multi-Year)

Annual Goals(Multi-Year)

X31112 DRAFT 11/15/05

23Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners/Teams Use Metrics to Measure a ProcessProcess Owners/Teams Use Metrics to Measure a Process

Good Good100

90

80

70

60

50

40

30

20

10

0

Quality (3X) Efficiency (1X)

Process Performance Assessment

Assessment Assessment

Per

cent

Com

plia

nt O

rder

s

Com

plet

ed It

ems

per M

an-h

our

03 04 J F M A M J J A S O N D2.2 1.8 1 2 1 2 2 2

04 J F M A M J J A S O N D032.5 2.9 2 2 2 1 1 1

1.3 2.0 1.3 1.8 1.8 1.803 04 J F M A M J J A S O N D2.4 2.5

1 2 2 2 3 4

2.3 2.81.3

10

9

8

7

6

5

4

3

2

1

0

Legend:Mo. Actuals3-Period Avg

Min. Acceptable LevelAnnual GoalBenchmark

WeightingFactor

24Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners/Teams Use Tools to Analyze Process Performance Process Owners/Teams Use Tools to Analyze Process Performance

! FMEA

! Check Lists

! Graphs

! Bar charts

! 5-Why Analysis

! Cause-and-Effect (Fishbone)

Process Title

Process Owner Revision Date

Mirror ProcessTask from ProcessDefinition

Failure Effect Cause Detection Actions1 1 2

Creation Date

Process No.

1 12

Process No.:Creation Date:Revision Date:

Process Title:

ProcessTask

Process Owner: Potential Failure

Mode(s)

Potential Effect(s) of

Failure

Potential Cause(s) of

Failure

Current Detection/

Verification Controls

Recommended Actions

SEV

OCC

DET

RPN

1-10 1-10

MD-1830-01 (04 Jun 2002) REVISED

1-10 1-102-20

Process Title

Process Owner Revision Date

Mirror ProcessTask from ProcessDefinition

Failure Effect Cause Detection Actions1 1 2

Creation Date

Process No.

1 12

Process No.:Creation Date:Revision Date:

Process Title:

ProcessTask

Process Owner: Potential Failure

Mode(s)

Potential Effect(s) of

Failure

Potential Cause(s) of

Failure

Current Detection/

Verification Controls

Recommended Actions

SEV

OCC

DET

RPN

1-10 1-10

MD-1830-01 (04 Jun 2002) REVISED

1-10 1-102-20

25Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Owners/Teams Use Plans to Improve a ProcessProcess Owners/Teams Use Plans to Improve a Process

ACTIONS TASKSACTION # 1234 INITIATED: 01-May-05

INITIATOR: Adams, ArtASSIGNEE: Adams, Art

PROCESS OWNER: Baker, BillPBM No: 5.02

Issue OrdersC/PA SOURCE: PBM Annual Process Improvement

STATUS: Open DATE: 07-Oct-05SUBJECT:Improve percentage of compliant documentationPROBLEM STATEMENT:Percentage of compliant procurement filesis not acceptable.

VERIFICATION/ACCEPTANCE CRITERIA:Percentage of compliant files improved by 20%

ROOT CAUSE ANALYSIS TOOLS USED:FMEA, 5-WhyROOT CAUSE STATEMENT:Buyers are not trained to review files for complianceprior to sending to Procurement Analysis

VERIFICATION STATEMENT:

Task

1

2

3

4

5

6

7

Assignee

A. Adams

B. Baker

B. Baker

T. Trainer

T. Trainer

A. Adams

B. Baker

Subject

Develop file compliance checklist

Develop file compliance audit process

Revise file compliance procedure

Develop training course

Provide file compliance training

Implement compliance checklist

Conduct monthly compliance audits

Status

CLOSED

CLOSED

OPEN

OPEN

OPEN

OPEN

OPEN

Date

15-May-05

15-Jun-05

For Training Purposes Only

26Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Systems House Process Data: PBMS and SSPISystems House Process Data: PBMS and SSPI

<PO Name>

27Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Strategy Task 2005Type Metric Description Target Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

E-01 Execute on programs [IDS, AFS] G G GE-01-A A&T Operating Earnings To Plan B B BE-01-B A&T Cash Flow To Plan R B B

E-01-C On-time delivery - A&T Aircraft & Modifications 100% G G G

E-01-DA Mission Success: Non-Space Per Plan G G GE-01-E RONA (Return on net assets) To Plan R R GE-01-F CPARs or equivalent >/= 2.8 (Green) G G G

E-01-G Award Fee Percent 80% - 89.9% of contracts score >90% G P

E-01.11 Deploy and integrate effective Supplier Quality process across IDS 84% G G G

E-02 Improve quality and cost G G Y

E-02-20A Manage to Long Beach overhead composite rate To plan Y G Y

E-02-B Productivity improvement [IDS, AFS] 5% G G G

E-02-E **ACHIEVE/MAINTAIN A&T CMMI LEVEL 5 CERTIFICATION Per Plan G G G

E-02.01Improve Quality (Key Quality metrics from the C-17, 767 Tanker, and DAP Programs along with A&T Common Quality Initiatives).

Roll-Up >/= Green Rating G G G

E-02.02 Improve cost Per Plan Y

E-03Deploy use of the Baldrige framework (including the tools and initiatives that support the framework) across A&T to improve our business

To Plan G G G

E-03-20A Strengthen the process-based culture within programs and across A&T Per plan G G G

E-03-20B [A&T] Become recognized as best-in-industry in lean enterprise (including lean manufacturing) Green Rating (Roll Up) G G G

Exec

ute

Flaw

less

lyProcess Owner Discipline:Process Owner Discipline:Measured by Vision Support Plan (VSP)Measured by Vision Support Plan (VSP)

Executive Process Owners:• Provide recognition to 1% of your Process Owners (POs) per month for PBM efforts

• Attend 75% of monthly PBM review meetings with your Process Owners

28Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Variability Reduction for a micro-processSix Sigma for a macro-process

Variability Reduction if more data analysis is needed

Lean if no more data analysis is needed

Lean

Quality metric

Efficiency metric

Timeliness/Cycle Time metric

If a process needs more improvement than PBM tools provide:

PBM is the framework for continuous process improvement

Micro-process

Macro-process

Variability Reduction

Six Sigma

If a process needs more stability than PBM tools provide:

Process Owners/Teams Use Improvement Tools with PBM

29Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Baldrige Categories

ISO Principles

Leadership

Strategic Planning

Customer and Market Focus

Information and Analysis

Human Resource Focus

Process Management

Business Results

Customer Focus

Leadership

Involvement of People

Process Approach

System Approach toManagement

Continual Improvement

Factual Approach to Decision Making

Mutually BeneficialSupplier Relationships

Process Management Leads to ISO SuccessProcess Management Leads to ISO Success

30Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Processes that Answer the ISO 9001:2000 Standard

31Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Process Management Leads to CMMI Success• The quality of a software product is governed by the

quality of the processes used to develop and maintain it.

• To improve quality of the product, one must improve the quality of the processes that create the product.

• CMMI enables organizations that want to pursue process improvement in multiple functional areas (Software, Systems, Acquisition, Security etc. ) to do so with less additional investment for each function.

• CMMI supports process integration and product improvement

• CMMI integrates multiple disciplines into one process-improvement framework

Copyright by Carnegie Mellon University

32Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Processes that Answer the CMMI Criteria

33Copyright © 2006 Boeing. All rights reserved.

2005-K0037

Global Mobility Systems’ Quality Journey: Global Mobility Systems’ Quality Journey: Results FocusResults Focus

1998 20022000 20011999 2003

MalcolmBaldrige

Win

MalcolmBaldrige

Win

BestPractice

Exchange

BestPractice

Exchange

BaldrigeInternal

Assessment

BaldrigeInternal

Assessment

BaldrigeInternal

Assessment

BaldrigeInternal

Assessment

IndustryWeek

Top 25Finalist

IndustryWeek

Top 25Finalist

CCE/AQPTeam

ExcellenceAward

CCE/AQPTeam

ExcellenceAward

BaldrigeInternal

Assessment

BaldrigeInternal

Assessment

IndustryWeek

Top 10Winner

IndustryWeek

Top 10Winner

ISO 9001/2000

Certification

ISO 9001/2000

Certification

CCE/AQPTeam

ExcellenceAward

CCE/AQPTeam

ExcellenceAward

CCE/AQPTeam

ExcellenceAward

CCE/AQPTeam

ExcellenceAward

MalcolmBaldrigeSite Visit

MalcolmBaldrigeSite Visit

2004

CCE/AQPTeam

ExcellenceAward

CCE/AQPTeam

ExcellenceAward

2005

CAPE SilverAward(AFS)

CAPE SilverAward(AFS)

CCETeam

ExcellenceAward

CCETeam

ExcellenceAward

ISO AS9100 B

Certification

ISO AS9100 B

Certification

CMMILevel 5CMMI

Level 5

CAPEGold

Award(C-17)

CAPEGold

Award(C-17)

GeorgiaOglethorpe

AwardMacon

GeorgiaOglethorpe

AwardMacon

WA StateQualityAwardDAP

WA StateQualityAwardDAP

IndustryWeek

Top 10Macon

IndustryWeek

Top 10Macon

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