Lean Sustainment Initiative Overview

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1 Lean Aerospace Initiative Plenary Workshop April 1, 1998 Lean Sustainment Initiative Overview Presented By: Manufacturing Technology USAF Wes Harris MIT Dan Brewer ManTech

2 Outline Background Stakeholders challenges for LSI Research agenda Research progress The future Summary LSI 3/31/98-2 Massachusetts Institute of Technology

3 Weapon System Management Functions, and Structure Operational Commands User System and Sub-System Managers Management Program Mgt Engnrng Depot Maint Warehouse/ Distribution Function SM Staff SM Staff Organic DLA Source Industry Located on an ALC LSI 3/31/98-3 Massachusetts Institute of Technology

4 OO-ALC System Management* ICBM F-4 Landing Gear Photo Recce ALC System Management and MRO Responsibilities Organic Depot Maintenance* ICBM F-16 C-130 (Cargo) Landing Gear Contract Depot Maintenance* ICBM F-16 Landing Gear OC-ALC B-52 C-135 Airframes CLS Aircraft Cruise Missile Engines B-52 B-1B C-135 Airframes Engines B-1B B-2 CLS Aircraft C-135 Airframes Guidance & Metrology WR-ALC F-15 C-130 C-141 SOF Aircraft Avionics/EC F-15 C-130 (SAM) C-141 C-5 Avionics/EC F-15 C-130 Mods Avionics ALQ-161 *All ALCs manage and repair many different commodity subsystems Typical Annual Expenses (FY99 projected): New parts procurement - $6-7B Organic depot maintenance - $3.2B (40% new parts costs) Contract depot maintenance - $2.2B LSI 3/31/98-4 Massachusetts Institute of Technology

5 THE LEAN LOGISTICS VISION FAST TRANSPORTATION TOP QUALITY INNOVATIVE CONTRACTING Part Fails Base Repair Process Express Carrier In-Transit Depot Buy Fast Repair Assessment High Velocity Contract Repair INVENTORY AT BASES 5-12 DAYS REENGINEERED PROCESSES Organic Repair RESPONSIVE INFORMATION REPAIR ON DEMAND LSI 3/31/98-5 Massachusetts Institute of Technology

6 WHAT IS LSI? A joint HQ AFMC/LGL and Air Force ManTech project to make available to the Lean Logistics community the unique research experience and capability of MIT in the area of lean principles, practices, and change strategies Partnership Research-driven change process Systemic approach Startup Phase May 97-May98 Three ALCs Multi-Year Activity LSI 3/31/98-6 Massachusetts Institute of Technology

7 Start-Up Phase Objectives Establish collaborative relationship with MIT Leverage what has been learned Assist Lean Logistics stakeholders in achieving present goals Characterize DREP, CREP, AREP Assist Lean Logistics stakeholders in developing integrated sustainment system for future Analyze process for change, barriers, enablers COMMERCIAL EXPERIENCE MIT RESEARCH AREP DREP CREP Lean Logistics STAKEHOLDERS MIT LEAN EXPERIENCE LSI 3/31/98-7 Massachusetts Institute of Technology

8 Research Agenda Addresses Expectations of ALCs Distill and disseminate existing lean knowledge-base to Lean Logistics community MIT researchers develop an understanding of AFMC Lean Logistics efforts Research world-class commercial repair practices and communicate lessons-learned Compare world-class commercial repair processes with AFMC processes to help define: What to change What to change to How to change Facilitate three-way dialogue between MIT, AFMC and world-class commercial repair organizations Address all AFMC products and processes Define implementation strategies LSI 3/31/98-8 Massachusetts Institute of Technology

9 Baseline research Research Agenda Develop baseline definition of Air Force logistics system Define high-leverage areas for MIT research Focused case studies Conduct focused case studies across ALCs on selected Lean Logistics programs/topics Characterize status of Air Force Lean Logistics efforts Case study focus on: Airframe overhaul (F-15 and KC-135) Landing gear repair and overhaul Lean Logistics information and decision support systems Recommendations to Lean Logistics community Immediate high-payoff change opportunities Longer-term research agenda Communication of lean principles and lessons learned is an on-going part of the LSI process LSI 3/31/98-9 Massachusetts Institute of Technology

10 Research Progress Baselined Air Force logistics and sustainment system Conducted site visits and field research (faculty and students) Interviewed senior Lean Logistics leadership Assessed status of Lean Logistics thrust AREP: Aircraft Repair Enhancement Program DREP: Depot Repair Enhancement Program CREP: Contract Repair Enhancement Program Developed framework for identifying best commercial maintenance, repair and overhaul (MRO) practices Identified key priority areas for improvement and implementation strategies Lean principles and practices derived from Lean Aerospace Initiative used as a framework LSI 3/31/98-10 Massachusetts Institute of Technology

11 Current Activities Consolidate and validate initial observations Document cross-cutting research results as well as case study findings Follow-up site visits at ALCs Identify best emerging logistics and sustainment practices Define major trends and developments Identify leading-edge practices and their impact Set stage for research on government-industry sustainment collaboration Exploratory benchmarking on selected topics Capture lessons-learned in achieving fundamental change LSI 3/31/98-11 Massachusetts Institute of Technology

12 Key Lesson Learned It is essential to address the broader context impacting Lean Logistics to realize systemic change Lean Logistics is not an island but is embedded within larger, complex system Understanding larger institutional setting necessary for real solutions LSI 3/31/98-12 Massachusetts Institute of Technology

13 Next Steps: Transition to LSI Phase II Bring closure to past work include: Out-brief for senior AF Lean Logistics leadership Identify lessons-learned from Start-up Phase research Possible high-payoff topics include: DoD sustainment financial management Supplier-chain integration Sustainment considerations in design, manufacturing, and modification/upgrade LSI 3/31/98-13 Massachusetts Institute of Technology

14 Strategy for the Future: LSI Phase II Create a collaborative process, involving government and industry sustainment stakeholders, to provide Agile Combat Support Broaden stakeholder participation -- AFMC/LG, AF/IL, MANTECH, DUSD/Logistics, DLA, MAJCOMS, SPOs, commercial sector, labor, and MIT Working together as partners, design world-class AF sustainment system for twenty-first century Establish focus teams concentrating on specific high-payoff topical areas providing value to the Air Force sustainment community & nation LSI 3/31/98-14 Massachusetts Institute of Technology

15 Summary Lean Sustainment Initiative well on its way toward assisting Lean Logistics stakeholders in achieving present goals Start-up phase is a first and essential step toward realizing significant longer-term benefits Need to start building a longer-term Lean Sustainment Initiative to achieve these benefits Broader stakeholder participation necessary to maximize benefits for entire Air Force logistics and sustainment community LSI 3/31/98-15 Massachusetts Institute of Technology

16 Back-up Slides

17 Initial High-Level Observations Lean Logistics is well motivated and moving in the right direction Committed leadership, dedicated management at all levels, capable workforce Emerging success stories at ALCs should be a source of pride However, challenges facing Lean Logistics are numerous, complex and daunting Incremental systemwide improvements not readily discernible Difficult to evaluate progress measured against resources invested LSI 3/31/98-17 Massachusetts Institute of Technology

18 System Program Office Functions (Post-Production and Sustainment) System Engineering - Safety / Technical Performance - Mod Development - Configuration Mgt. Contracting SPO Program Management - Customer Support - Configuration Mgt. - Parts Replenishment - Airframe Repair MRO Production (when required) LSI 3/31/98-18 Massachusetts Institute of Technology

19 Future Vision Joint Vision 2010 calls for focused logistics The fusion of information, logistics and transportation technologies Global Engagement: A vision for the 21st century Air Force The efficiency and flexibility of Agile Combat Support will substitute responsiveness for massive deployed inventories THE CHALLENGE: Providing Affordable Agile Combat Support LSI 3/31/98-19 Massachusetts Institute of Technology

20 ALC Locations Ogden ALC, Hill AFB (OO-ALC) Oklahoma City ALC, Tinker AFB (OC-ALC) Warner Robins ALC, Robins AFB (WR-ALC) Sacramento ALC, McClellan AFB (SM-ALC)* San Antonio ALC, Kelly AFB (SA-ALC)* * Outside Scope of LSI LSI 3/31/98-20 Massachusetts Institute of Technology