Impact and Value of Lean Six Sigma in Transactional Processes

Case Study

Impact and Valueof Lean Six Sigma

in Transactional Processes

By Dr. Andrew Parris Lockheed Martin SSC Atlas Program, Improvement Certified LM21 Black Belt

Lockheed Martin:Redefining What Is Possible

Persistent Surveillance

Space ExplorationSpace ExplorationBiometricsBiometrics

InformationInformationFusionFusion

Hypersonics

A Passion for Invention

FUSION

Unmanned andAutonomousSystems

Our Customers• Departments of:

– Defense– Homeland Security– Commerce– Energy– Health & Human Services– Housing & Urban Development– Justice– State– Transportation

• NASA• Social Security

Administration• Environmental Protection

Agency• U.S. Postal Service• Foreign Governments

Who We Are

Lockheed Martin Corporation… Transmits More Bits of Data Daily Than

All U.S. Cable Companies Combined

Employs More Software Engineers Than Microsoft

Has Delivered More Than 4,000 F-16 Fighters to Customers Worldwide

The Men and Women of Lockheed Martin

Partners to Help Customers Meet Their Defining Moments

• 132,500 Employees

• 55,000 Scientists and Engineers

• 30,000 Software and Systems Engineers

• 6 CMMI Level-5 and Level-4 Companies

• Operations in 45 States and 56 Countries

5380X.PPT AFM 12/01/2003 5

$32B 2003 Sales$32B 2003 Sales135,000 Employees135,000 Employees

ElectronicElectronicSystemsSystems

$9.0B$9.0B

Space Space SystemsSystems

$5.8B$5.8B

AeronauticsAeronautics

$9.8B$9.8B

Technology Technology ServicesServices

$3.2B$3.2B

Integrated Integrated Systems Systems

andandSolutionsSolutions

$3.2B$3.2B

Advanced TechnologyCenter Missile

Defense Systems

Commercial Space

LaunchSystems

NASA

Space Systems CompanySpace Systems Company

Space Systems

• Launch Services

• Satellites

• Strategic & Defensive Missile Systems

Space SystemsLaunch Services

Titan IVTitan IV ProtonProtonAtlas VAtlas VShuttleShuttle

Space SystemsSatellites

GPS IIRGPS IIRMILSTARMILSTAR

Advanced EHFAdvanced EHF SBIRSSBIRS

2001 Mars Odyssey2001 Mars OdysseyCommercial Remote Commercial Remote SensingSensing

TelecommunicationsTelecommunications

Space SystemsStrategic & Defensive Missile Systems

TridentTrident Airborne LaserAirborne Laser THAADTHAAD

BV+BV+ MKVMKVTargets & Targets & InterceptorsInterceptors

LM21 Organization• LM21 Operating Excellence

Corporate Office – Mike Joyce, Corporate Vice President– Responsible for strategic planning, design,

and deployment of LM21 Operating Excellence throughout Corporation

• Lead Subject Matter Experts (SMEs)– LM employees designated as leaders in their

field and competitively selected for a 2 year leadership development assignment

• Internal consultants for Operating Excellence site/program deployments

• Experts on LM21 tool-set• Leverage outside resources

Green Belt Black Belt Master Black Belt

Who

Wha

t

Participates on improvement projects and are part-time leaders of simple projects/kaizens as part of their job

• Applying Principles and tools for application in a project

• Able to lead team in closely scoped sub-project/kaizen

Leaders of improvement events, projects and teams recommended as full time dedication

• Knows and applies methods/ principles & can implement in various business processes

• Able to lead teams and mentor/train Green Belts/ Kaizen coaches

• Provides training

Full-time leader that provides training, mentoring and business-wide leadership for improvement activities.

• Knows methods/ principles & can apply anywhere

• Able to lead teams, mentor/train Black Belts and advise senior leaders in the competency of continuous improvement

LM21 Training Roles

Level 1 Level 2 Level 3All employees, contractors, suppliers, etc.

• Learning Principles

• Recognize waste & be able to question sub-optimal processes and initiate improvement

General Awareness

Web Based

Upper Level Management

• Learning Principles & applying some tools to a “Just Do It” project

• Able to support and champion efforts of teams working to improve a process

LM 21Leadership Training

Change AgentsAll Audiences

(100%) (100%) (10-50%) (1-1.5%) (.05%)PopulationTargets

All AudiencesExecutive Management

LM21 2 dayLeadership Trng.Mid Level Management

• Learning Principles & applying some tools to a simulation project

• Able to support and sponsor efforts of teams working to improve a process

(50%)

LM21 Operating ExcellenceDeveloping Critical Mass of Expertise

Actual Plan

Expertise and Involvement Imbedded into LM Culture Expertise and Involvement Imbedded into LM Culture so it Becomes The Rhythm of the Businessso it Becomes The Rhythm of the Business

015,00030,00045,00060,000

00 01 02 03 04

0

10

20

00 01 02 03 04

0

5,000

10,000

00 01 02 03 04

Corporate Experts (SME’s)

0

1,000

2,000

3,000

00 01 02 03 04

Black Belts

Leadership Training Implementation Participants

LM21 Utilizes Both Lean and Six Sigma

Repeatability

ReduceSteps/Parts

Reduce Defects/VariabilitySix Sigma

Lean

# of Process Steps

1 93.32% 99.38% 99.98% 99.999%

7 61.63% 95.73% 99.84% 99.998%

10 50.08% 93.96% 99.77% 99.997%

40 25.08% 77.94% 99.07% 99.986%

100 0.10% 53.64% 97.70% 99.966%

300 - - - 15.43% 93.26% 99.898%

700 - - - 1.28% 84.97% 99.762%

1000 - - - 0.20% 79.24% 99.661%

3000 - - - - - - 50.15% 98.985%

38000 - - - - - - 0.01% 87.880%

(Distribution Shifted +/- 1.5 )

Flo

w V

eloc

ity

“Move North East”

“Move North East”

LM21 Operating Excellence

Lean processes operating at Six Sigma capabilityLean processes operating at Six Sigma capability

Events to make incremental improvements in manufacturing or transactional processes.• Removes waste • Reduces cycle time 20 – 60%• Applies to all aspects of the business

Kaizens Lean/Six Sigma Projects

Increasing capability with a Black Belt-led team using Quality tools to Define, Measure, Analyze, Improve and Control.• Improves yields from 3.5 to 4.5-5• Reactive by nature• Applies to all aspects of the business

A Philosophy to maximize producibility and customer value by Specifying Value from the Customer’s Perspective, Analyzing the Value Stream, Adding Flow & Pull and Striving for Perfection

Lean/Six Sigma Operating Excellence

Pre-design Kaizens

Events to increase producibility and ensure hardware designs support lean production methods. • Required to support lean factory • Proactive by nature• Applies to product design

Design for Six Sigma Process

A design approach that optimizes performance and cost while maximizing yield during the design of the hardware• Required to improve yields beyond 4.5• Required to meet high system yields• Proactive by nature• Applies to product design

Operating Excellence

LM21 8 Step Process

Implement&

Validate

Implement&

Validate

Identify & Prioritize

Opportunities

Identify & Prioritize

Opportunities

ProjectDefinition

ProjectDefinition

Document &MeasureCurrentReality

Document &MeasureCurrentReality

Communicate & Acknowledge

Success

Communicate & Acknowledge

Success

Measure &Sustain

Measure &Sustain

Optimize Flow&

ReduceFriction

Optimize Flow&

ReduceFriction

Analyze & IDWaste

Analyze & IDWaste

1 2 3 4

5678

ExcellenceExcellence

LM21 Path To Excellence

Lean processes operating at Six Sigma capabilityLean processes operating at Six Sigma capability

Roadmap

MarketingCustomer Systems Eng Engineering Procurement Manufacturing Test Integration Launch Customer

Design ReleaseRqmts.

DefinitionStress

Analysis

ProcessLevel

ProcessLevel

ProcessLevel

ProcessLevel

Inputs Outputs

Engineering

Events Projects Do-Its

EVENT TOPIC EVENT TOPICPRO-JECT

PRO-JECT

ACTIONITEM


PRO-JECT

ACTIONITEM


ACTIONITEM

ACTIONITEM

ACTIONITEM

Value Stream Analysis

Value Stream Map

KaizenPDK

ProjectInstant Fix

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief

Configuration Management

Admin

Safety

Eng-Systems

Model Control

ReleaseMission Success

Order Control

Quality

Contracts

Subcontract -AdminMaterial

Planning0

Eng -Production

Process Planning

Eng-QA

Asset SpecialistsPrint Crib

Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving

Receiving -Asset Specialist

Receiving -

Data

ReceivingQuality Inspection

Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-

PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

DM

Program

Office

Eng-Design

Drafter -Centaur

Drafter -Booster

Eng-Structures

Eng-Avionics

Eng -Fluids

Eng-Checking

Eng-Mission Int

Eng-Software

Supplier Data

Eng-Chief


Admin

Safety

Eng-Systems

Model Control


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat


Order Control

Quality

Contracts


Planning0

Eng -Production

Process Planning

Eng-QA


Machinist -

Tool

Eng-Mechanical

Eng -Test

Production Planning

Product Assurance

Reproduction

Repro -

Data Entry

Repro -Lead

Reproduction -

Photographer

Repro -Copy

Repro -Distribution

Receiving


Receiving -

Data


Truck Driver

Mission Integration

Cape Receiving

Eutelsat

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

Purchasing -

Planning

Buyer -LabargeEng-

Labarge

CSC Harlingen

CODS EDE

ProE

TRMS

CODS

ProE

CODS

CODS CVS PADR

CODSProE

ProEPADR

TSOCODS

PADR

Support

Sup

port

Sup

port

MAC

PAC

MPPS

Support

CODS

MAC

PAC

CODS

MPPS

PADRCODS

ELC

MPPS

CVS

FMP

MACPAC

PIRSPODS

KSA

EMAS

Reflec

tions

CADS

CADS

CADS

Sup

port

Sup

port

Support

Support

MAC

PAC

Live

Link

TSO ELC

RDL

Harlingen

HIBAY

INV

PLFMFG

Harlingen

HIBAY

INV

PLFMFG

San Diego

TABCape Canaveral

LC41VIF

AstrotechITOWhse

ASOCASOC

E&AHangar K

Denver

LaBarge

Berryville, AK

19

25

10

4439

Deer Creek

FAB INVFAB INV

EMF

SSB

EMF

SSB

VTFVTFENG

TSB

PTF

GPL

F

San Diego

Cape CanaveralHarlingen

Denver

Berryville, AKSan DiegoSan Diego

Cape CanaveralCape CanaveralHarlingenHarlingen

Denver

Berryville, AKBerryville, AK

18 12 6 5 4 3 2 1

Customer Configuration Installation

243036424854 Months for Scope

60

Design & Build

18 12 6 5 4 3 2 1



60

Design & Build

RDL

Harlingen

HIBAY

INV

PLFMFG

Harlingen

HIBAY

INV

PLFMFG

San Diego

TABCape Canaveral

LC41VIF

AstrotechITOWhse

ASOCASOC

E&AHangar K

Denver

LaBarge

Berryville, AK

19

25

10

4439

Deer Creek

FAB INVFAB INV

EMF

SSB

EMF

SSB

VTFVTFENG

TSB

PTF

GPL

F

San Diego

RDL

Harlingen

HIBAY

INV

PLFMFG

Harlingen

HIBAY

INV

PLFMFG

San Diego

TABCape Canaveral

LC41VIF

AstrotechITOWhse

ASOCASOC

E&AHangar K

Denver

LaBarge

Berryville, AK

19

25

10

4439

Deer Creek

FAB INVFAB INV

EMF

SSB

EMF

SSB

VTFVTFENG

TSB

PTF

GPL

F

San Diego


Denver



Denver


18 12 6 5 4 3 2 1



60

Design & Build

18 12 6 5 4 3 2 1


24


Denver



Denver


18 12 6 5 4 3 2 1



60

Design & Build

18 12 6 5 4 3 2 1



60

Design & Build

Sample Current State Value Stream Map

Sample Current State Physical Map

Atlas Value Stream Analysis (VSA)

Value Stream Analysis Revealed Significant Opportunity

Improvement Opportunities

Work fragmentation

Multiple hand offs

High volume of change traffic

Redundant processing and approvals

Flexibility at a high cost

Manual data processing

Dispersed resources

Long cycle times

Value-added ActivitiesValue-added Activities

• Activities which, when asked, the customer is willing to pay twice as much if we did it twice as often and

• Activities which change the form, fit or function of the product/service and

• Activities done right the first time.

Value-added ActivitiesValue-added Activities

• Activities which, when asked, the customer is willing to pay twice as much if we did it twice as often and

• Activities which change the form, fit or function of the product/service and

• Activities done right the first time.

Non Value-added – Required ActivitiesNon Value-added – Required Activities• Activities which may be necessary but the Customer will not pay you to do

• cannot be eliminated (due to non-robustness of process) based on current state of technology

• Required (regulatory, customer mandate, legal)

Non Value-added – Required ActivitiesNon Value-added – Required Activities• Activities which may be necessary but the Customer will not pay you to do

• cannot be eliminated (due to non-robustness of process) based on current state of technology

• Required (regulatory, customer mandate, legal)

Non Value-added Activities• Activities that consume resources but create no value in the eyes of the customer

• The customer is not willing to pay • Pure waste

Non Value-added Activities• Activities that consume resources but create no value in the eyes of the customer

• The customer is not willing to pay • Pure waste

Definitions: Value-added

Examples of TransactionalProcess Improvement Events

LM21 Operating ExcellenceResults: Business Processes

Company Project Description $MCompany Project Description $M

Astronautics – Denver Overhead and G&A Restructure 79.0Astronautics – Denver Overhead and G&A Restructure 79.0

Missiles & Fire Control SAP Phase I Implementation 2.7Missiles & Fire Control SAP Phase I Implementation 2.7

Technology Services Airline Travel Discounts 5.0Technology Services Airline Travel Discounts 5.0

LM21 Operating ExcellenceResults: Design and Engineering

Company Project Description $MCompany Project Description $M

EPI – Owego Integration Framework Architecture 16.1EPI – Owego Integration Framework Architecture 16.1

Missiles & Space Standardized Systems Engr Process 23.0Missiles & Space Standardized Systems Engr Process 23.0

Aeronautics Company F-22 Sustaining Engr Reduction 21.4Aeronautics Company F-22 Sustaining Engr Reduction 21.4

ESTABLISH SIGNATURE REQUIREME

NTS

CREATE ER

• HP FILE

• DNA INFO

• BACKUP DATA

• COMPONENTS DATA

• PL

CHECKING IN-BOX

DETERMINE WHERE

CHECKING WILL BE

PERFORMED

Approval Babysitting

Obtain Approvals

CHECKING

CHECKING

COORDINAES

DIRECTLY WITH DESIGN

OR ENGRG

AIDE

APPROVE?

NO

YES Promote Drawing to RELEASE

Distribution

DATAStart= End=

Touch Time = .25 hrsCycle Time= 2 DaysFlow Time= Qty.= People=

TOTALStart= ECR receivedEnd= Released Engineering

Touch Time = 29 hrsCycle Time= 26 DaysFlow Time= Qty.= People=

DATAStart= End=


DATAStart= End=


DATAStart= End=


DATAStart= End=


Drawing Number to

Design Requireme

ntPLOT FILE

REQUEST

Notify ER Is ReadySend to DistributionTo

Be

Reduced Handoffs & Redundant Efforts

33 Days 26 Days

New Drawing Release VSM

Design Engineering

Receive HP file from

DesignINC

Parts ListBack-up Info

CompleteCompon

ents in DIACS?

Approved for

program?

Enter Data From

Drawing Number Assignment FormTransfer

Data from

PLIT to DIACS

Load CADIMDrawing

MaskCreate

ER

Determine Where Checking Will Be Perform

edPriority / Order of Release

Approval Babysitti

ngObtain

Approvals

CHECKING Determin

e Action. Re-

Insert where

Required.

Coordinate with

Checking (if

required)

APPROVE?

NO

YES

Send to Release Office.

Release Drawing

Update Parts List

Coordinate with Checkin

g (if required)

Distribution

DATAStart= End= Touch Time

= .25 hrsCycle Time= 2 DaysFlow Time= Qty.= People=

DATAStart= End=


DATAStart= End= Touch Time =

1.2 hrsCycle Time= 1 DaysFlow Time= Qty.= People=

DATAStart= End=


DATAStart= End= Touch Time =

1.5 hrsCycle Time= 2 DaysFlow Time= Qty.= People=



Establish Signatur

e Requirements

DATAStart= End=


Drawing Number

to Design Require

mentPLOT FILE

REQUEST

As Is

Change Control

Engineering Aides

Touch Time Savings of Revised Process – New Drawings

29 Hours40 HoursTotal(Rounded Up)

7 Hours9.7 HoursRelease/Eng Aides

20 Hours24 HoursChecking

1.85 Hours6.25 HoursLiaison/Eng

NowWas

29 Hours40 HoursTotal(Rounded Up)

7 Hours9.7 HoursRelease/Eng Aides

20 Hours24 HoursChecking

1.85 Hours6.25 HoursLiaison/Eng

NowWas

Savings Benefit of Work Scope Allocation – New Drawings

• Assumptions• over 1000 Drawings per Year

• Benefits• Liaison Engineering

• 4.4 Hrs/Drwg *Drwgs /Yr• Checking

• 4.0 Hrs/Drwg *Drwgs /Yr• Release/Engineering Aides

• 2.7 Hrs/Drwg *Drwgs /Yr• Total Yearly Benefit: over $ 1M

Engineering Change VSM

Problem Statement with Backup Data

REVIEW PROBLEM

• Verify that a problem exists• Determine cause.• Determine condition of prior

units built.• Establish a need date based

on the production schedule.

COMPLETE ECR

• Define the nature of the changes. • Determine the Design

Configuration.• Determine all affected items.• Determine if change is in scope• Determine if formal Lesson Learned

submittal is appropriate.• Complete Informal Actions

• Initiate Change Order (Form U-5024), If Required

• Initiate Change Order (Form U-5024), If Required

ENGINEERING CHANGE CONTROL

ENGINEERING INPUT * (as required)

DESIGN ENGINEERING

DISTRIBUTE ECR FOR REVIEW /

APPROVAL

PRODUCT DATA CONTROL

ENGINEERING AIDES (HOURLY PEOPLE)

INTEGREATED PRODUCT TEAM (IPT)

(INCLUDES CHECKING AND PROGRAM MANAGEMENT)REVIEW / APPROVE ECR *

Obtain:• Technical Approval• Implementation• Cost• CHECKING• Program Management

TRACK REVIEW

COMMENTS

ECP(IF REQUIRED)

CUSTOMER APPROVAL

(IF REQUIRED)

ACTION?

Terminate / Reference

Only

Answer to Originator

PROMOTE ECR; ER; DWG TO

RELEASE

PREPARE ER

REV ITEM CHANGE POSITION

(FORM)

ADD D.I.

ADD CHANGE ORDER

(if required)

UPDATE DIACS

PREPARE ER

REV ITEM CHANGE POSITION

(FORM)

ADD D.I.

ADD CHANGE ORDER

(if required)

UPDATE DIACS

ADD PC INFORMATION

DATAStart= End=




DATAStart= End=

Touch Time = 6.5 hrsCycle Time= 15 DaysFlow Time= Qty.= People=

DATAStart= End=


DATAStart= End=


APPROVED?

NO ACTION

NO:Determine Action.Reinsert where required

YY

* = APPROVAL BABYSITTING REQUIRED


FORMULATE AN ANSWER• Define the nature of the changes. • Collect additional information.• Determine the Design


submittal is appropriate.• Complete Informal Actions• Initiate Change Order (Form U-

5024), If Required• Initiate Drawing Revision, If

Required


DESIGN ENGINEERING

DISTRIBUTE ECR FOR REVIEW




(INCLUDES CHECKING)

CHECKING

REVIEW PROBLEM




Receive ECR

Assign to Liaison or Design

Log In Access DataBase Review Answer for Completeness

O.K.

YES

NO

ENGINEERING SCREENING

BOARD REVIEW / APPROVAL *

O.K.

YES

NO

Action?

COPY TO ORIGINATOR

YES

NO

CREATE ER

PREPARE NORsCLOSE ECR

IN PDM

ESTABLISH APPROVAL

REQUIREMENTS

TECH REVIEW OF

CHANGE PACKAGE *

RECORD APPROVALS

DISTRIBUTE CHANGE PACKAGE

FOR REVIEW

REVIEW ECR & CHANGE PACKAGE *

Obtain:• Implementation• Cost

“B” BRD APPROVAL

*

“A” BRD APPROVAL

*

UPDATE DATABASE

UPDATE DATABASE

ECP(IF REQUIRED)

UPDATE DATABASE

SEND TO RELEASE OFFICE

COORDINATE

•Prioritize

•Fix Errors

RELEASE IN PDM

REVISE DIACS PARTS LIST

RELEASE IN DIACS

DATAStart= End=


DATAStart= End=

Touch Time = 1 hrsCycle Time= 2.5 DaysFlow Time= Qty.= People=

DATAStart= End=


CHECKING DATAStart= End=


DATAStart= End=




DATAStart= End=



Only


If not approved, determine action and reinsert as required.







FORMULATE AN ANSWER• Define the nature of the changes. • Collect additional information.• Determine the Design


submittal is appropriate.• Complete Informal Actions• Initiate Change Order (Form U-

5024), If Required• Initiate Drawing Revision, If

Required


DESIGN ENGINEERING

DISTRIBUTE ECR FOR REVIEW




(INCLUDES CHECKING)

CHECKING

REVIEW PROBLEM




Receive ECR


Log In Access DataBase

REVIEW PROBLEM




Receive ECR


Log In Access DataBase Review Answer for Completeness

O.K.

YES

NO

ENGINEERING SCREENING

BOARD REVIEW / APPROVAL *

O.K.

YES

NO

Action?

COPY TO ORIGINATOR

YES

NO

CREATE ER

PREPARE NORsCLOSE ECR

IN PDM

ESTABLISH APPROVAL

REQUIREMENTS

TECH REVIEW OF

CHANGE PACKAGE *

RECORD APPROVALS

DISTRIBUTE CHANGE PACKAGE

FOR REVIEW

REVIEW ECR & CHANGE PACKAGE *

Obtain:• Implementation• Cost

“B” BRD APPROVAL

*

“A” BRD APPROVAL

*

UPDATE DATABASE

UPDATE DATABASE

ECP(IF REQUIRED)

UPDATE DATABASE

SEND TO RELEASE OFFICE

COORDINATE

•Prioritize

•Fix Errors

RELEASE IN PDM

REVISE DIACS PARTS LIST

RELEASE IN DIACS

DATAStart= End=


DATAStart= End=


DATAStart= End=


CHECKING DATAStart= End=


DATAStart= End=




DATAStart= End=



Only







If not approved, determine action and reinsert as required.As-Is:As-Is:

To-Be:To-Be: Reduced Handoffs & Redundant Efforts

37 1/2 Days 29 Days

Design Engineering

Engineering Change Control

Product Data ControlEngineering AidesIntegrated Product Teams

• Cycle Time Reduction – 23%

• Cycle Time Reduction – 8.5 days (37.5 days to 29 days)

• Reduced Tech Ops Labor – 4 hours

• Reallocated effort from engineers to aides – 1.5 hours

• Projected Total Tech Ops Labor Savings – over $1M/ year

Cross Functional Coordination and Buy-in Achieved Through a Process Simulation Event

Process ValidatedProcess Validated

Quality

Quality

Mat

l Acq

& M

gt

Mat

l Acq

& M

gt

Prod O

ps

Prod O

ps

Tech O

ps

Tech O

ps

Each step of the new process was walked through in a simulated manner by a representative SME to ensure all procedural details were effectively addressed

• Design– Frank Delisi– Ed Booth

• Prod Ops / Mfg Engr– Franz Budel

• Quality– Joe Chenette

• Checking– David Brockman

• PP&C– Susan Granacki

• Program Management/IPT– Al Davidoff

• Procurement– Don Hallum– Ted McAfee– Jeff Burnett– Bobby Thompson– Pat Jackson

• PDC– Bill Richardson– Tanne Steen– Rebecca Jaster

• Liaison– Al Mendez– Peter DePaiva– Nathan Smith

And the Results are In…

““Lockheed Martin is one of nine Lockheed Martin is one of nine

Fortune 100 companies that have had a positive Fortune 100 companies that have had a positive

trend three years in a row (increased productivity), trend three years in a row (increased productivity),

only one of the nine in Aerospace industry – 11% only one of the nine in Aerospace industry – 11%

from 2001-2002from 2001-2002.”

Del Jones and Barbara Hansen. USA TODAY. McLean, Va.: Aug 13, 2003. pg. B.01Del Jones and Barbara Hansen. USA TODAY. McLean, Va.: Aug 13, 2003. pg. B.01

E-mail: [email protected]

Phone: 303-971-7670

Mail: Lockheed Martin Space Systems CompanyM/S F9902P O Box 179Denver CO 80201-0179

Impact and Value of Lean Six Sigma in Transactional Processes

Documents

Transcript of Impact and Value of Lean Six Sigma in Transactional Processes