Using Lean Principles to Eliminate Proposal Waste

21st Annual APMP® International Conference & Exhibits

Using Lean Principles Using Lean Principles to Eliminate Proposal to Eliminate Proposal

WasteWaste

June 3, 2010June 3, 2010Roger CampbellRoger Campbell

Pratt & Whitney RocketdynePratt & Whitney Rocketdyne


Outline

• How can you Benefit?• What are Lean Principles?• Applying Lean Principles to proposals

– Reviews – single piece flow– Do/Don’t Use – defect elimination– Top down – eliminating overproduction waste

• Recap

1


How can you Benefit?

• Lean principles can help you create proposals more efficiently– Reducing Bid and Proposal costs– Enhancing team communication and

commitment

2


What are Lean Principles?

• Toyota origin– Specify value– Identify value stream– Make flow visible– Let customer pull– Eliminate waste

• Not just tools (e.g., 5S)

3

Focus on Lean Principles, not just Lean tools

ToyotaProduction System

LevelingKaizen (Continuous Improvement),

Standard Work (5S)

Just-In-TimeRight part,Right amount, Right time,Flow,Pull

Jidoka(Built in Quality)Stop the line,Intelligent Automation


Value & Value Streams

• As measured by the customer• Make to use• Actions to take product from material to delivery

4

Understanding customers key to determining Value


First Floor

Flow & Customer Pull

• Single-piece flow vs. batch processing

• Focus on the product and its needs

• Produce the product in response to a customer order

5

Flow eliminates inventory, raises productivity

PipeCutting

Fin-Press

Expansion

CleanLeakTest

Braze

PartsStorage

Final Assy.

Test, Pack,Ship

Showa Coil Making, After

Second Floor

First Floor

Showa Coil Making, Before

Finished CoilStorage

Finished CoilStorage

Finished UnitStore &

ShipFinal Test

Final Assy. Track

PipeCutting

SFin-

Press

S Expansion

S Clean SLeakTest

S Braze S

Intermediate Storage Conveyor


Waste Elimination

• Eliminate non-value added tasks

• Don’t make, pass or accept defects

• Seven wastes

6

Efficiency driven by waste/defect elimination at origin


Applying Lean Principles

• “Sure, this stuff applies in a factory environment, but I do proposals…”

• Do proposals…– Have customers?– Use processes?– Have products?– Produce waste?

Proposal processes/practices ripe for Lean use

7


Proposal (Pink/Red) Reviews

• Batch processing– Fastest writer waits– Lost time for read

ahead and production

• Still valuable– Horizontal integration– Checkpoint– Independent view

Traditional review process wasteful

8


Lean Proposal Reviews

• Single piece flow– Writer requests (pulls) review

when ready– Rolling review by Proposal Mgr– Pink/Red team members

engaged (no read ahead)

• Don’t integrate– No lost time for production

Collocated Implementation

- Ready for review

- Proposal Mgr approval to engage Pink/Red team members - See comments, on target - See Proposal Mgr, off target

Lean reviews minimize writer downtime

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Kickoff Meeting Baselines

• What are we proposing?– Program Plan

• What is the win strategy?– Executive Summary

• What is expected of me?– Schedule– Detailed outline

Clear baselines eliminate defects and rework

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Another Useful Baseline

• Do/Don’t Use list combines– Fact Dictionary– Glossary– “Hollow” terms

Do Use:“We have invested $6.5M incompany funds to develop…”Lean – A set of integratedprinciples/tools focusing…”

Don’t Use:UniqueBest-in-ClassWorld Class“…55 years as the …”

Most efficient to prevent defects from occurring

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Bottom’s Up = Overproduction

• Rough outline only• Poor page count

discipline• Weak/no storyboards• Quality “inspected in”• Many rewrites• “Cut to fit”

Words/graphics not used are costly

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Top Down = Minimizes Waste

• Executive Summary• Detailed outline with

margin• Margin reduced

after each review

Avoid “cut to fit”, compliance may suffer

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1/0

1/5

1/1

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1/1

5

1/2

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1/2

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1/3

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2/4

Date

Pa

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Target

Actual

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Top Down = Minimizes Waste (2)

Daily Page Count Stoplight Chart

Section Alloc. 3/29 3/30 3/31 4/1 4/2

2.1 5 4.5 5 5 5 4.5

2.2 5 6 5.5 5 5 5

2.3 2 3 2 2 2 2

2.4 7 8 7 7 7 7

2.5 6 8 8 6.5 6.5 6

• Strong focus on storyboards

• Daily attention to page count status

Only create the words/graphics that will be used

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Recap

• Four Lean proposal examples were described, providing– Reduced Bid and Proposal costs– Enhanced team communication and

commitment

• Further reading:– Lean Thinking, Womack & Jones– The Toyota Way, Liker

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Using Lean Principles to Eliminate Proposal Waste

Documents

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