Lean Transformation UTC Aerospace Systems, MRO 2/7/2017. Contains no technical or ITAR controlled data
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1 Lean Transformation UTC Aerospace Systems, MRO 2/7/2017 Contains no technical or ITAR controlled data
2 UTX Who are we? 2
3 UTC AEROSPACE SYSTEMS MIRAMAR Who are we? 3
4 LEAN TRANSFORMATION Agenda Why How Results Lessons 4
5 LEAN TRANSFORMATION Why Underperformance: On time delivery Cost of poor quality Test yield Final inspection yield Linearity Productivity 5
6 LEAN TRANSFORMATION PRE-ANALYSIS Which cells hit CSL the hardest in 2013? 11/15/13 YTD 6
7 LEAN TRANSFORMATION PRE-ANALYSIS Which cells are generating turnbacks at final insp.? 27% 1/4 26% 1/4 26% 1/4 22% 1/4 9% 1/11 8% 1/13 Legend xx% or 1/x stop at final inspection 5% 1/20 Less ROBUSTNESS more 7
8 LEAN TRANSFORMATION PRE-ANALYSIS Linearity 8
9 LEAN TRANSFORMATION How Product family analysis Time / waste observation Mfg. VSM and cell design Takt Operations bar chart / line balancing Team cell designs Implementation 9
10 LEAN TRANSFORMATION Determining product families Analysis: How do we get to proposed product families? Group LRU s by 30% common process time Workscope Tooling Size and material handling Volume Training Design considerations Accountability TAT reduction, productivity Quality control 10
11 75/90 737/EMM CELL DESIGN TEAM 11
12 75/ EMM MFG. CELL DESIGN Part quantity analysis 12
13 75/ EMM MFG. CELL DESIGN 75/90 Spaghetti chart 13
14 75/ EMM MFG. CELL DESIGN Current state spaghetti chart Scatter caused by partial builds, single man unit and poorly designed cell BLUE = Material flow = 1920 ft. Red = People flow = 4320 ft. 14
15 75/ EMM MFG. CELL DESIGN Future state spaghetti chart Defined inventory management eliminates partial build scatter, creates linear flow and improves visual process management BLUE = Material flow = 1220 ft. Red = People flow = 1840 ft. 15
16 75/ EMM MFG. CELL DESIGN 75/90 time observations 16
17 75/ EMM MFG. CELL DESIGN Operations Bar Chart Future State Current State Significantly above takt in inspection 17
18 Process Time in Minutes 75/ EMM MFG. CELL DESIGN balanced operations 737 / EMM ELE 2/EMM Balanced Process Time TAKT 150 Mins ELE2 Process Step In cell ops 18
19 75/ EMM MFG. CELL DESIGN Operations bar chart EM2 19
20 75/ EMM MFG. CELL DESIGN Operations bar chart 75/90 20
21 Results 21
22 LEAN TRANSFORMATION A precedence for LEAN in MRO This document or file contains no EAR technology or ITAR technical data. 22
23 LEAN TRANSFORMATION Go live Transforming without interrupting cash cow production Challenged supply chain Building a call to action for problem solving Before After Insert Photo of New line This document or file contains no EAR technology or ITAR technical data. 23
24 LEAN TRANSFORMATION 60 days results Miramar TAT =12.7 days vs days CSL = 91% to 97% 737/767 Cell EH&S JHS -57% People Travel -56% Part Travel -36% CSL +21 points 81% reduction in delivery misses /767 OTD Performance Improvment 67% Baseline 88% May This document or file contains no EAR technology or ITAR technical data. 24
25 LEAN TRANSFORMATION 120 day results Linearity improvement CSL Improvement: +21 points Throughput improvement; highest recorded deliveries & sales Productivity improvement 18% 5S maintainability Gold Level Visual management improvement EH&S improvement: JHA score -57% Innovation development 25
26 PILOT LEAN CELL CSL Before 2013 baseline After 2014 Q4 present Labor Productivity (before) Productivity 2014 (after) Productivity 2015 YTD (1 year after) Productivity highlights and opportunities 2015 Linearity Before & after TAT After Oct Dec TAT in 2015 f(x) = inputs, RCA WIP reduction Before and after Reliability 26
27 PILOT LEAN CELL MELE 2 CSL 100% MELE 2 CUSTOMER SERVICE LEVEL (CSL) Post Implementation 95% 90% 85% 80% 75% 70% 100% CSL to present 65% 60% 27
28 PILOT LEAN CELL LABOR 2015 DEVIATION Conveyor driving use of standard work: significantly reduces variation and increasing % of on target process times SMU, much greater freedom and deviation from standard 28
29 Units Shipped PILOT LEAN CELL Q2 LINEARITY April 2014 Boeing Linearity Performance (before) Target Cumulative Actual Cumulative
30 5/1/2014 5/2/2014 5/3/2014 5/4/2014 5/5/2014 5/6/2014 5/7/2014 5/8/2014 5/9/2014 5/10/2014 5/11/2014 5/12/2014 5/13/2014 5/14/2014 5/15/2014 5/16/2014 5/17/2014 5/18/2014 5/19/2014 5/20/2014 5/21/2014 5/22/2014 5/23/2014 5/24/2014 5/25/2014 5/26/2014 5/27/2014 5/28/2014 5/29/2014 5/30/2014 5/31/2014 Units Shipped PILOT LEAN CELL MELE 2 Q2 LINEARITY May 2014 Boeing Linearity Performance (after) LEAN Implementation Target Cumulative Actual Cumulative
31 LEAN TRANSFORMATION Developmental value LEAN implementation: Inception to management Identifying the biggest opportunity at a Gold site Building a strategy for improvement Leading the events Managing transition Leading the new team Problem solving Delivering sales This document or file contains no EAR technology or ITAR technical data. 31
32 Lessons 32
33 PILOT CELL LESSONS Successful Disassembly flow Shared workstations OVH flow Variation reduction Linearity Quality improvement Productivity Continued improvement Unsuccessful Assembly flow line (see progress) Initial engagement (see progress) Progressing (50/50) Discipline std. work 33
34 LEAN TRANSFORMATION Go live Cell 34
35 75/90 LEAN CELL IMPLEMENTATION /15/
36 75/90 LEAN CELL IMPLEMENTATION 1/18/ PM Dividing and moving conveyor 36
37 75/90 LEAN CELL IMPLEMENTATION 1/18/2017 1PM 37
38 75/90 LEAN CELL IMPLEMENTATION 1/18/2017 4PM 38
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