1. Directive Orientation Early Systematic Approach
Process Management - Cycles of Improvement
1940s to 1970s
1980s to 1990s
Reactive Approach
Directive Orientation
Early Systematic Approach
Quality Orientation
Deming Challenge
Strategic & Operational Goals
Strategic & Operational Goals
TQMS
MIL SPEC
DOD/FARs
Employee Involvement
SPC
Contract
Quality Circles
Used processes for many years
Reacted, non-focused approach
CQI
Started Continuous Improvement
1990s to 2000
Aligned Approach
Process Orientation
Strategic & Operational Goals
Integrated Approach
Systematic Orientation
Business Excellence Framework
Leadership
Strategic Planning
Customer & Market Focus
Measurement, Analysis & Know. Mgmt
Human Resource Focus
Process Management
Business Results
Vision Support Plan
Benchmarking
Comparative Data
Breakthrough
Best Practices EI
Lean
PBM
CMM/CMMI
6-Sigma
Tools to be applied to achieve business excellence
Today
PBM & PAS EI
ISO
Strategic & Operational Goals
CMM
Lean
Best Practices
6-Sigma
Process Design & Management
Process Assessment
Process Improvement

2. T-38C Avionics Upgrade Program Overview
Upgrade 511 USAF T-38 A/C to Digital Cockpits
36 Aircrew Training Devices (Simulators)
Avionics Logistics Support
First Flight - 8 July 1998
Production Planned through FY2008
Fwd Cockpit
Provide Realistic Advanced Training for Future USAF Fighter/Bomber Pilots

3. Mobilize the Commitment to Lean
Selling the Vision
Metric
LRIP 1
(Dec ’00)
Lean Baseline
(Sept ’01)
Future
State
(June ’04)
Delivery (Units / Mo) 1 4 8
Cost (DLHs / Ship)
100%
87%
30%
Inventory (Units in Flow) 6 14 9
Cycle (M-Days)
109 64 24
Quality (Defects / 1K Hrs) NA
25.3
10.5

4. Benefit of Lean Manufacturing
Lean Enables Accelerated Learning and Reduced Variability
Pre-Lean Actuals
Post-Lean Actuals
437
281
286
308
265
283
123 48
259 58 82
116
Lean Benefit
Relative DLHs (Including Rework)
FY01
FY02
Max – Min Variation
AUP DLHs (Including Rework)
Business as Usual
85% Learning Curve
Pre-Lean Trendline
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
CUM A/C Grouping
Cell 1
Cell 2
Cell 3
Lean Cell
Implementation
Cells 4 - 7
Post-Lean Trendline
Post-Lean Trendline and Benefit Analysis Based on CUM 39 thru CUM 73 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95
100
105
110
115
120
125
130
135
140
Completed Aircraft CUM Number

5. Lean and Efficient Systems
Supply Chain Services Value Chain
Customer
Relationship
Customer
Service
Planning
Quote &
Order
Processing
Production
Logistics
Leadership
(Goal, EPP
IBAP)
Customer &
Supplier
Partnership
Employee
Involvement
Performance
Management
Information
Technology
Lean & Process
Management
Lean and Efficient Systems
Enterprise
Value
Stream
Map
Standard
Processes
Visuals
In place
Supplier
Development
Partnership
Pull and
Point
Of Use
Continuous
Process
Improvement
Benchmark &
Breakthrough
Process
Redesign
Examples of Deployment
Examples of Benefits
Process Based Management on Quote, Order, and Delivery
Accounts Receivable Process
Direct delivery of shipments
Common Processes across SCS
Common Catalog
Standard Asset Management Planning Process
Reduced account receivable backlog– 254% imp. in cash flow
VIDS parts procurement from 4 days to 2 hours
Improved F/A-18 supply availability from 65 % for C/D to 85% for E/F