Lean Engineering Post-Certification Decision Making in the Aerospace Industry. Yvan Beauregard. CSVA November 2009
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1 Lean Engineering Post-Certification Decision Making in the Aerospace Industry Yvan Beauregard CSVA November 2009
2 Flight Path Decision Making in Post Certification Lean Engineering P&WC Intro
3 UNITED TECHNOLOGIES CORPORATION Commercial Engines P&W Aftermarket Services Military Engines Space Propulsion P&W Power Systems
4 P&WC PRODUCT MANDATE 68,000 engines produced Turboprops Turboshafts 600 6,500 shp 600 2,200 shp Turbofans ,000 lbf PW600 PT6A PW200 JT15D PW100 PT6T/B PW500 PW150 PT6C PW300 Auxiliary Power Units PW900 PW800
5 OVER 68 ENGINES CERTIFIED SINCE Pilatus PC12 PT6A-67P Embraer Phenom 100 PW617F 50 Cessna XLS PW545B Cessna Mustang PW615F 40 Cessna Sovereign PW306C Bell 429 PW207D Bell 412 PT6T-3B Casa 295 PW127G MD Explorer PW207E Eurocopter EC135 PW206B Bombardier Q400 PW150A Dassault 2000EX PW308C Dassault Falcon 7X PW307A Eclipse PW610F Citation Excel PW545A
6 Flight Path Decision Making in Post Certification Lean Engineering P&WC Intro
7 WHY LEAN IN AEROSPACE? 1. Aerospace is an extremely competitive industry. 2. Organizations need help understanding, measuring, managing and optimizing the work of people involved in product development systems. 3. Opportunities do exist for improvement.
8 DENSE INFORMATION FLOW Description PWXXX FUEL COOLER OIL COOLER ADDITION Data Calendar days (includes w/ends, holidays) Lead Time (working days) Touch days (> 2 hrs) Charged hours # Nodes (people who touched job) Touch time calculations Touch time ratio 0.55 Information Flow Spirogram (As-Is) (Intellectual Spaghetti chart) Design standards #3 Poland Drafter 1 Poland Drafting Lead Supplier OpmPW600 Design Standards #2 Toronto Drafter 1 Drafting Coordinator 2 Static Structures-FCOC Static Structures-Tubes Static Structures-Coordinator PW980 Russia Customer CM-Weights MCC Drafting Supervisor MCC Drafter-clash detection MCC Stress Chief KM3 Technical Services Accessories-clinic Performance CM Analyst Design standards #2 Design standards #1 Risk Mitigation Job Cancelled Nov. 18, 2004 Data Systems DMU Drafter 4 DMU Drafter 3 PW Poland Drafting Coordinator Materials Engineer 1 PDS Drafter 1 MCC Drafting Lead Component Drafting Lead Component Drafter 1 Turbine Drafter 1 Catia Support 2 Procurement #1 Static Structures 1 KM 1 Projects2 Catia Support 1 Accessories - Valves Program Manager Projects CM1 Project Director Project manager CM2 Externals - Design Drafting Supervisor DMU Drafter 1 Air-Oil Systems Chief Designer - PW980 Operations 1 Operations 2 Dynamics Reliability Accessories - FMU Accessories - FCOC Development Testing 1 Development Testing 2 ECN - PW980 Integrator PW 980 Installations PDS Group Leader Drafting Coordinator Static Structures-Chief Dynamics-Chief PW 980 Projects 1 DMU Supervisor Accessories Chief Trans Design PW980 Projects 2 PDS - Drafting/Stack-Up Externals Chief Development Engineering Manager Dynamics - P&WC Coordinator DMU Team Leader 1 DMU Drafter 2 Air-Oil Systems2 IDCAD Consultant 1 Trans Design 2 Turbine Drafting Lead
9 WHAT IS LEAN IN ENGINEERING? Lean Engineering is a philosophy oriented toward achieving the shortest time from customer need to validated & incorporated design A business strategy that results in a focus on value improvement VALUE Shortest Time Connects everything to the customer PERFORMANCE Right Product Efficient Processes Effective Integration
10 CREATE RIGHT PRODUCT ENGINE CERTIFICATION PRE-CERT Under Study Detailed Design Passport Passport Passport Passport Passport Aftermarket Passport Preliminary Design Authorization to study INVENT Authorization to offer Authorization to order Authorization Authorization Production to manufacture to launch Hardware DEVELOP DELIVER Production Lessons Learned MAINTAIN
11 EFFICIENT ENGINEERING PROCESSES Product Development Environment Other ValueAdded Project Work Eight Deadly Wastes Searching for information Approval Wait Time ~35% Meetings & Conference Calls Excessive Motion Chasing approvals Searching for information Waiting Time Waiting for approvals Meetings and conference calls Unnecessary Processing Time Processing information from non-standard sources Defects Rework Failing to meet customer requirements Excessive Resources Poor resource leveling to meet demand Minimal understanding of bottlenecks Unnecessary Handoff Unnecessary approvals Verification loops Allowing inventory to build up in front of bottleneck operations (i.e. Static Systems) Rework Source: Deloitte Consulting client experiences Poorly defined or communicated customer requirements Excess resources lacking clear work activities OverOver-Engineering of Product Over Production
12 EFFECTIVE INTEGRATION Need New Customer Needs DESIGN Designer Analyst MAKE VALIDATE Draftsman Buy/mfg Designer Draftsman Buy/mfg Designer Draftsman Buy/mfg New Customer Needs New New Customer Customer Needs Needs DE CM New Customer Needs DE CM New Customer Needs CM TOC: Improve throughput by bottleneck resolution Bottleneck operation i: max {Demandi/Capacityi}, Product
13 Flight Path Decision Making in Post Certification Lean Engineering P&WC Intro
14 NEED FOR POST-CERTIFICATION DECISION TREE Before engine cert (P4)? No Enables consistent classification Provides basis for lean performance benchmark Yes Pre-Cert Yes New requirement? Repositioning Yes No Modified requirement? Improvement Benchmark historical data Yes PostCert No Initial requirements met? Yes New Learning - Metrics - KPI - DIVE No Std Work, Best Practices Met? No Escape - Pareto - Metrics -DIVE Resolution 14
15 COMPLEX PROJECT NETWORK ARCHITECTURE PROJECT EXAMPLE Project Definition 1 Engine Planning Package PD Job 1 PD Job 2 PD Job n Ress1 Ress i OBS Advanced Studies Controls Job B Nacelle Engine Integration WBS k Compressor l PPETC n ETC i C Air/Oil Systems
16 JOB MULTI-CRITERIA VALUE INDEX Level None Customer impact Criticality of issue No visible customer impact Low Med High Weight (w) Dispatch reliability above spec, No quality or performance issues, IFSD < 7 BUR < 70 MTBUR below spec Dispatch Reliability below spec 7 < IFSD < < BUR < 200 In flight shut down IFSD > 10 BUR > 200 w1 No significant NPV benefit Value (v) v1 Cost reduction, other (ACTUALS / ETC+ACTUAL) > Incremental NPV benefit (NRE % Warranty + FSC) >5-50K$ v2 Production, delivery issues (ACTUALS / ETC+ACTUAL) > Incremental NPV benefit (NRE % Warranty + FSC) K$ v3 Airworthiness safety reliability > 1 (ACTUALS / ETC+ACTUAL) > Incremental NPV benefit (NRE + 80% Warranty + FSC) >250K$ v4 V j wi (ci )vl (ci ) i 1 (ACTUALS / ETC+ACTUAL) < 10% Non-critical Job value: n Work Progression Impact on business w2 w3 w4 Where: Vj: Multi-Attribute job value wi: Weight associated with criteria ci vl: Value level associated with criteria ci 16
17 LEAN TRADE-OFFS 1- Given that: 5.0K$ FSC increase has a 6.7M$ consequence on project NPV value. 5.0M$ NRE increase has a 2.2M$ impact on project NPV value. 1.0Kg over target has a 0.9M$ impact on project NPV value. 2- Knowing that D8603D provides for: Lb WEIGHT REDUCTION, $35 RECURRING and $178,100 NON-RECURRING Value Performing D Value NOT Performing D WEIGHT PENALTY VALUE Lb x 0.9 M$/1Kg = M$ NPV T RA 0.035K DE-OFF VA L $ K x 6.7M$ NPV UE /5K$ $x M$ NPV/5 FSC M Lb x 0.9 M$/1 $NRE Kg = -0.19M $ NPV PREFERRED APPROACH PRESERVES MORE ECONOMIC VALUE Note: Hypothetical Data ANY OTHER STRATEGIC CONSIDERATIONS? USE YOUR JUDGEMENT!!!
18 JOB BASED DECISION MAKING MODEL Objective: Maximize Job Realized Value Max O jv j j Subject to: X je e X ETC je O j e je Ce j X j e je Pjk Bk Where: Oj: Binary variable, 1 if job demand satisfied Vj: Job value Xje: Hours allocated by module e on job j ETCje: Demand in hours Pjk: 1if job j is related to project k, 0 otherwise Ce: Engineering capacity Bk: Project budgets 18
19 DECISION MAKING IMPACT ON REALIZED VALUE MONO-PERIOD MODEL Implicit value 9% Realized value 54% 1) 19
20 FUTURE WORK Multi-attribute Value Index Select Pilot Validate dimensions, criteria, weights and value levels Done In Progress Decision Making Model Generate industrial case study data Implement multi-period task based model Done In Progress 20
21
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