1. Lean+/ Systems Engineering
LOGISTICS SUPPORT
Modina Williams
Process Reengineering Team Lead
Sustainment Data Systems, Systems Support
Presented to the
Midwest Gateway Chapter of the
International Council on Systems Engineering
(INCOSE) July General Meeting
July 26, 2006

2. Overview Introduction What is Lean/ +? Lean Enterprise
Lean Methodologies/ Tools
Examples
Lean /+ System Engineering
Spirit of Lean

3. Continuous Improvement Common Process Initiatives
Certified Lean Integrator/ AIW Facilitator
Process Reengineering Team Lead
Common Process Initiatives
AIW’s/ Sensing Sessions/ 3P/ LMA’s /Value Stream Mapping
Sustainment Data Systems/Support Systems
BS In Industrial Engineering 6
Sigma
Training
Continuous
Improvement
MS in Project Management
Sept 30, 2005
Dion Nehemiah
Shop Load IE

4. What is …..? Lean: The relentless, systematic elimination of waste
to create sustained competitive advantage.
Lean+: The one overarching continuous improvement
approach
Overarching Principles
Responding to customer demand
Eliminate Waste
Being responsive to change
Enhancing the effectiveness of the workforce
Creating a mindset of Continuous Improvement
Lean+ Mission: Expand the Lean principles throughout the value stream
to enable continued improvement in productivity and long term growth
through the business and functions.

5. Waste exists…
Wasteful, Non-Value Added Steps Exist in Nearly Every Process in any business
New Product Research
Conceptual and Detail Design
Human Resources
Marketing
Contracts and Pricing
Supply Chain Management
Scheduling
Transportation
Manufacturing
Product Support
Information Systems
Systems Engineering

6. Typical causes of Waste
Layout (distance)
Long set-up time
Poor work methods
Lack of training
Functional organizations
Technology Gaps
Historic supervisory roles
Irrelevant performance measures
Lack of workplace organization
Supplier quality/reliability
More…

7. Why Is the Elimination of Waste So Important?
Increase Profit
Reduce the Cost of Our Products
Shorten Time to Market on New Products
Shorten Order Lead Time
Improve Quality and Delivery Performance
Provide Better Customer Service
Integrate New Technologies into our Products quicker, and more effectively
Expand Market Opportunities
Make More Profit
Provide Job Stability
Encourage Employee Involvement

8. Detailed customer knowledge and focus
Large-scale systems integration
Lean enterprise
Run healthy core businesses
Leverage strengths into new products and services
Open new frontiers
Leadership
Integrity
Quality
Customer satisfaction
People working together
A diverse and involved team
Good corporate citizenship
Enhancing shareholder value
Lean Enterprise *
Our entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.

9. Why A Lean Enterprise? Becoming a Lean company is vital to
reducing costs and thereby giving Boeing
a competitive advantage.
People working together as a global enterprise for aerospace leadership*
Boeing - Forever New Frontiers*
By implementing Lean practices we can achieve the 2016 Vision:
to have a production system that is among the best in the world,
characterized by efficient use of assets, short flow times,
short cycle times, high quality, and high inventory turn rates.
Core Competencies
Detailed Customer Knowledge and Focus
We will seek to understand, anticipate, and be responsive to our customers' needs.
Large-Scale System Integration
We will continuously develop, advance and protect the technical excellence that allows us to integrate effectively the systems we design and produce.
Lean Enterprise*
Our entire enterprise will be a Lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.
From the ‘Becoming a Lean Company’ brochure: Message from Fred Mitchell and Alan Mulally, October 1999

10. Getting Results
Education - Define what is necessary for different levels.
OJT Training - for anyone implementing or authorizing implementation.
Leadership Commitment - (NOT just involvement, you can’t get
credit for checking a box!).
Metrics - The kind that really measures commitment.
Cycle reduction, quality, cost, and delivery.
Value Stream Mapping (VSM) - or some flowcharting version
thereof. Somehow the critical path has to be visualized so prioritization
can occur and cycle waste can be reduced.
Identify and prioritize opportunities.

11. Getting Results Perform a yearly Office Lean Assessment.
Create the Implementation Plan and maintain same.
(Yearly, but quarterly would be better.)
Perform a yearly Office Lean Assessment.
Train Lean Facilitators reporting to one person or to the Lean PAT.
These Lean experts need to be committed, just like Lean management.
If these people are allowed to facilitate part-time, they will loose the
commitment.)
Integrate Lean tools and maintain control of their use. Use the right tool for
the application.
Maintain the gain and never quit implementing improvements.

12. Getting Results
Reward the doers, and make sure everyone has the opportunity to be a doer.
Do not create an organizational chart until a Lean Plan is in place and everyone know what responsibility they will have

13. Lean Methodologies and Tools
Identify the key area for improvement
Key Process Identification
Sensing Sessions
Value Stream Mapping
Lean Assessments
Operational Assessment (Quality Function Deployment QFD Analysis)
Root Cause Analysis
Comparative Studies (Benchmarks)
Failure Modes Effects Analysis (Preventive Action)
Other…
Determine the best Lean Methodology
Accelerated Improvement Workshop
Distribution Kaizen
Production Preparation Process
6-Sigma
Total Productive Maintenance 5s
Apply the Lean Tools
Visual Controls
Standard Operations
Continuous Flow
Mistake Proofing
Set Up Reduction
Measures

14. Common Methodology
Understanding and mapping the Value Stream is the foundation
Utilize IDS Standard Value Stream Analysis and Value Stream Mapping Process (Current State / Future Vision / Future State, and Implementation Plan)
Ensure Vision Support Process (VSP) is linked to Future State Map (flow down improvement opportunities)
Organization and Execution
Implementation plan listing overall person(s) responsible, dates and improvement methodology
Utilize standard / simple CI methodologies (AIW, 3P, 6 Sigma, Team Projects) to execute VSM implementation
Conduct reoccurring Lean meetings to review and update implementation progress (at least 1 meeting / month)
Performance Tracking/ Metrics

15. Metrics – Critical Tools
Keep it simple
Measure what’s important
Use to drive continuous improvement
Share with everyone
Update often
Drive to the lowest level possible
Business
Results
Metrics take many forms, but should always be readily understandable. Use the 5-second rule. If it’s not understandable in 5 seconds, then it’s too much or not easily understood.

16. Examples… Training Management Systems AIW
Mission: To define the future state business processes for SDS Training Management Systems (TMS).
…by drive towards identifying the requirements that will allow SDS to integrate and enable a wide array of processes that comprise TMS functions.
Sensing Sessions
AIW’s
Recurring WebEx / teleconference for Follow-on completion of TMS Process Modeling
AIW: Accelerated Improvement Workshop

17. Examples… Depot MxM Business Process Modeling AIW
Mission: The Depot Level Maintenance Management AIW seeks to model, review, and enhance existing processes for depot-level maintenance, repair, and modification organizations internal to Integrated Defense Systems
Identified Tiger Team to further develop “to-be” process model incorporating Lean initiatives and best practices
The team reviewed current process challenges, investigated future-state solutions, and identifed touch points and possible synergies between SDS and iGOLD as well as potential Depot Level Maintenance business opportunities
Recurring WebEx / teleconference for Follow-on completion
AIW: Accelerated Improvement Workshop

18. Examples… Supply Chain Management AIW
Mission: To leverage and build upon existing Supply Chain Management process and tools to develop a framework to deliver a common SDS supply chain management offering for IDS.
Held Sensing Session early to determine scope for SDS-SCM Integration AIW
Conducted AIW’s to build level 4 SCOR processes for planning; part of SPO implementation processes
Processes molded into SCS Value Stream Mapping (VSM) – used SCOR as baseline for spares and repairs processes
Recurring WebEx / teleconference for Follow-on completion
AIW: Accelerated Improvement Workshop

19. Examples… Field Data Analysis (FDA) AIW
Mission: To enhance existing/create new (Field, Operations, Logistics & Design Data) Data Analysis processes in support of current and future customer/program
needs. To enable Boeing to offer superior support services and product improvement.
Conducted Sensing Sessions
FDA AIW - Create common, future state, integrated process for data analysis. Inclusive of Engineering, Logistics, and other disciplines (IVHM, R&M, SCM, Field Service, LSA, etc.)
Currently meet on regular basis with SME’s and entire team
AIW: Accelerated Improvement Workshop

20. Systems Engineering … John Tracy on Systems Engineering
John Tracy, VP Engineering, spoke to IDS on the importance of Systems Engineering to Boeing's ultimate success as a LSI (Large System Integrator).
"It provides a systematic approach for you to make sure you're meeting the customer's needs across the full lifecycle of the product." 
Systems Boeing
The systems engineering process at Boeing consists of four iterative steps that transform a customer's needs
into a balanced design.  

21. Lean+/Systems Engineering
Leadership Team
Lean Network
Identify Potential Lean Activity VSM, Lean Assessment
O&R’s
Committed
Opportunities
Develop Internal Lean Expertise
Collect Aggregate Cost & Benefit Data
Define Schedule
Goals
Validate and Target Specific Lean Activity
Conduct Events
Identify/Assign Lean Resources
Report
Results
Coordinate & Prioritize with Lean Focals
Access Lean Resource Database
Visibility with Core Lean Office

22. Basically…… Select Process & Appoint Process Team
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of
Improved Process
Identify Action Plan/ Metrics
Execute Plan/ Monitor Metrics

23. The Spirit of LEAN Discard your old attitudes.
Follow-up the planning with Implementation.
SUCCESS comes in “cans”; Failure comes in “can’ts”!
Don’t accept excuses. What will it take to make your ideas work?
Don’t expect perfection up front, a 50% improvement is okay.
Don’t substitute money for brains. Improve the process first, and then
apply automation to improve efficiency.
Correct problems immediately.
The people, and management, working together as one team, making
improvements.
Ideas from more people is better, especially the people closest to the
problem. Sharing ideas, and establishing common goals.
There are NO LIMITS to process improvements.

24. ?’s

25. Back-Up Slides

26. Lean+ Schnettgoecke to Chair PAT Lean PAT Lean Manufacturing Processes
Assigns
Process
Ownership
Lean
PAT
Lean
Manufacturing
Processes
Lean
Engineering
Processes
Lean
SM&P
Processes
Lean
Information
Technology
Business
Excellence
Lean
Contracts and
Pricing
Processes
Lean
Program
Support
Common
Systems
Integration
Assessments
Customer
Support
Services
Customers

27. Lean+ supporting the businesses
Lean+ Resource Team
Boeing
Operations
Council
Initiative
Leadership
Alan Mulally - Sponsor
John Van Gels - Chair
Alan Mulally – Sponsor
Bill Schnettgoecke - Leader
Project Management Resources
Lean
Process Action
Team
Jan Martinson (IDS Lean) - Chair
Mike Herscher (BCA Lean)
Terry Finley Shared Services – Lean
Vince Tappel (IDS) Lean Manufacturing
Ed Dean (BCA) & Steve Junkel (IDS) Lean Engineering
Rick Behrens (IDS) & Fredric Hale (BCA) Supplier Development/Global Partners
John Eash (IDS) Supplier Quality
John Crutchfield (IDS) & Dwight Miller (BCA) Industrial Engineering
Tom Spiegel (IDS) & Karsten Overa (BCA) Manufacturing Engineering
John Daniels (BCA) & Dave Thole (IDS) Materials Mgmt/Supply Chain Mgmt
Dayde McLaughlin Connexion by Boeing
Phil Howie Phantom Works – Lean & Efficient
Mike Trontell Internal Governance – Ethics
Laurie Weise Technology – IT
TBD Human Resources & Administration
Lean+ supporting the businesses

28. BOEING STANDARDS
Sensing Session – A Sensing Session is a facilitated brainstorming session in which we will set the goals, objectives, scope, and boundaries of the upcoming AIW.
Accelerated Improvement Workshop (AIW) – A rapid, learn/do, rigorous and disciplined workshop requiring detailed planning and commitment to action. It brings all functional people involved in the process together as One Team to achieve improvements in cycle time, cost, quality and customer satisfaction by envisioning possibilities, energetically pursuing opportunities and rapidly implementing process changes.
Business Event Flows – A pictorial depiction of the business process including process activities, inputs/outputs, data elements, connectivity between processes, system and manual tasks, and roles and responsibilities.
Customers have many initiatives…things such as meeting global visibility, improved readiness and reduced cost….
They are spending $$$ on wars, and need higher levels of support, so it is important to be able to provide sustainment support…
Industry is investing to get this type of support package…
- Lockheed ALICE
- Raytheon is building
- and others
We need to have this type of sustainment package to be competitive…
- important for planning missions
- flexibility – every contract is different – need to be able to do this for all types of programs or support needs…individual program needs, or a broad
spectrum of requirements
We need to help the businesses support their customers…

29. SENSING SESSION What are we doing today? Is it a core competency?
Is it profitable?
Is it the right thing to be doing—is it meeting the Customers’ current needs/requirements for Boeing Support?
Is it common/consistent across Boeing (common processes)?
Determine Best Practices
Can it be improved or should it be discontinued?

30. SENSING SESSION cont’d
What do we want to do in the future (5 years out)?
Do we have
Vision Statement?
Strategy?
Goals and Objectives?
Time Table?
Do we have the resources to achieve the goals and objectives?
Financial Resources
Organizational/Leadership Support
Human Resources
Do the Skills currently exist in the organization to support the goals?
If not, are we growing/acquiring the skills?
What is the timeline?
What is the training plan, if growing resources?
From where are we planning to acquire, if acquiring?
Facilities and Equipment

31. SENSING SESSION DELIVERABLES
Goals, Objectives, Mission Statement, Scope and Boundaries for the AIW
Assumptions documented
Agreed upon Baseline processes to align/integrate
Deliverables, outputs, & expectations of the AIW identified
Inputs/Deliverables needed to conduct the AIW identified
KEY participants from your organization for the AIW
identified
Customers have many initiatives…things such as meeting global visibility, improved readiness and reduced cost….
They are spending $$$ on wars, and need higher levels of support, so it is important to be able to provide sustainment support…
Industry is investing to get this type of support package…
- Lockheed ALICE
- Raytheon is building
- and others
We need to have this type of sustainment package to be competitive…
- important for planning missions
- flexibility – every contract is different – need to be able to do this for all types of programs or support needs…individual program needs, or a broad
spectrum of requirements
We need to help the businesses support their customers…

32. Non-Factory AIW Timeline

33. Resources Lean Enterprise Office - http://leo.web.boeing.com/home.cfm
Lean Lingo -
Lean Aerospace Initiative -