The Boeing Company, Network & Space Systems 702SP (small platform) Product line, ABS/Eutelsat

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1 I. Program Overview Organization Name/Program Name: Program Leader Name/ Position/Contact information , Phone Program Category Program Background: What is this program all about? (No more than one page). The overarching need for this program History of the program The product that is created by this program Scope of work original & updated Expected deliverables Current status of the program The Boeing Company, Network & Space Systems 702SP (small platform) Product line, ABS/Eutelsat program Michael V. Connelly, Product Line Director System Level Production Overarching Need: The satellite industry is a critical part of the commercial and government telecommunications infrastructure providing solutions worldwide in areas where terrestrial based solutions are either unaffordable or unavailable. Putting a satellite system into service requires a large amount of up-front capital to be expended prior to revenue generation. This mandates that the industry seek solutions to reduce initial capital without impacting system performance and reliability. The 702SP (small platform) was developed to address this need by changing how we use proven technologies while reducing the total cost for satellite development and production. History: In February 2011, a small team from across Boeing was chartered with hatching an industry changing satellite design solution. In less than seven months the team developed the foundation for an all-electric propulsion satellite capable of a stacked dual launch. The electric propulsion system halved the weight of each spacecraft and provided a 15-year geosynchronous platform for payloads in the 3 to 8+ kw (kilowatts) power range weighing upwards of 800 kg (kilograms). In March 2012, Boeing entered into an initial agreement with Asia Broadcast Satellite (now ABS) and another satellite provider to develop four commercial communications satellite systems. Scope of Work: Boeing is responsible for the design, assembly, integration and test of four satellites as well as providing satellite launch integration and test for each stacked launch, transfer mission operations and final inorbit testing (IOT). Expected Deliverables: Four satellites designed, processed and launched in pairs with customer unique payloads. All four satellites provide 8 kw of payload power, multiple feeds, more than 50 transponders and four deployable antennas. One of the customers added an FAA Wide Area Augmentation System (WAAS) hosted payload to the fourth satellite. Each satellite is 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 1

2 maneuvered using a xenon-ion propulsion system (XIPS) providing 15 years of on-orbit life. Current Status of the Program: The first pair was launched on March 1, 2015, ahead of schedule, just four years after concept initiation. The first pair of satellites is currently performing their transfer orbit mission and will complete in-orbit testing in the third and fourth quarters of The second pair is in production and scheduled for launch in the fourth quarter of II. VALUE CREATION = 20 POINTS Note that we have provided a weighting system on this section that indicates importance to the overall A&D enterprise in improving performance. Value: 50% of category score What is the long-term value, competitive positioning, advantage, and return created by this program to your: Customers National interests, war fighter Company Strength, bottom line, and shareholders Scientific/technical value (particularly for R&D programs) 50% of category score Excellence and Uniqueness: What makes this program unique? Why should this program be awarded the Program Excellence Award? Value to the Customer: The all-electric satellite design, leading edge platform structure, and state-ofthe-art electronics, allow the customer unparalleled payload mass accommodation in the 2,400 to 2,800 kg separated mass class of satellites. The Boeing patented and launch proven design for stacking and launching two satellites allows customers to save up to 50 percent in launch costs over single launch solutions. With payload power levels reaching 9+ kw and payload masses between 400 and 800 kg, the SP can accommodate high throughput systems and still stay within the 2,800 kg separated mass capabilities. The upgraded telemetry and control system provides the customers with better knowledge of their payload performance to allow for improved system use and traffic management. As the ABS customer has stated Boeing s SP dual launch solution has driven the cost for satellite telecommunications down by greater than 30 percent. Value to Boeing: The 702SP rounds out Boeing satellite offerings. The SP provides solutions from 3 9 kw of payload power augmenting the 702MP (medium power) and 702HP (high power). Adding the 702SP to its portfolio gives Boeing the ability to market across the entire range of satellite power and payloads. Additional design solutions in work will allow the SP to provide agile medium- and low-earth orbit solutions. Boeing has used and will use the SP as the initial implementation platform for new processes and products for use across the fleet. SP s agile engineering 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 2

3 and manufacturing processes, coupled with a highly focused technically talented team, provide a spring board for rapid product development and process improvement. Scientific and Technical Value: For years, the scientific community has relied on electric propulsion as the primary propulsion system for deep space probes. The use of an all-electric solution for GEO (geomobile) satellites expands the use of this system into a new class of satellites. Additionally, the 702SP is a flexible platform capable of quickly leveraging new payload and platform technologies like the APS star tracker, high efficiency large area solar cells and channelized payloads. The product line continues to look for new technology applications, like additive machining, to improve the value proposition for the customer. The various technology improvements and advancements from the development of the dual stack concept demonstrate a great leap in scientific and technical value from the 702SP. Boeing has received numerous patents for the dual manifest spacecraft with electric propulsion concept, satellite inter-connectors development, and propulsion tank mounting inventions. In total, from the conception of the 702SP design, Boeing has applied for 16 patents, and already received three. Excellence and Uniqueness: New affordability in the marketplace - The jump to all electric propulsion represents a radical tack that is likely to drastically push system cost to orbit (hardware and launch) into a more affordable range for both commercial and government users. Satellite Today All electric satellites could potentially save fleet operators hundreds of millions of dollars in annual launch expenditures, with potentially no impact to their satellites capability or performance. Aviation Week and Technology Disruptive technology/game changer - European government officials who have spent a decade financing satellite electric propulsion work said they are determined not to let Boeing Space and Intelligence Systems take a permanent lead in allelectric commercial satellites. Space News These are a few of the many satellite industry quotes that appeared in the news when the 702SP was first 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 3

4 announced, recognizing the industry changing uniqueness of the SP electric propulsion stackable design. But an idea is only as good as the final delivered product. The first two 702SPs were completed and ready for launch ahead of the contract date. The performance to date through launch, initialization, deployments and the first half of transfer orbit has been flawless. The excellence is in the SP team, which has proven that through collaborative engineering and manufacturing, a single focus of On- Quality, On-Time deliveries, and new products and processes can be brought to market disrupting the status quo and enabling the industry to be successful in providing affordable telecommunications solutions. III. ORGANIZATIONAL PROCESSES/BEST PRACTICES: (HOW DO YOU DO THINGS) = 30 POINTS Note that we have provided a weighting system on this section that indicates importance in the evaluation process. For each question, respond with the best practices and unique processes used by your program. Strategic Operations 30% of the score On an on-going basis how do you track and improve the value of this program to your customers, corporation, organization, and employees? Specifically, what processes, tools and practices have allowed the value of your program to increase? Tracking and Improving Value: The 702SP product line has a very clear mission that is continuously reiterated to teammates and partners On-Quality, On-Time delivery of the satellites while preserving the requirements of market based affordability. This mission is the 702SP foundation for daily operation and continuous improvement. The product line leverages existing performance metrics for quality control at all levels and employs a rigorous root cause and corrective action system to monitor near-term fixes as well as long-term improvements. Earned Value Management is used to track and monitor cost and schedule performance. Tactical program performance is measured against market-based affordability targets to identify areas of opportunity for improvement. The product line uses empowered employee improvement teams to seek solutions. Near-term program opportunities and long-term goals are reviewed at monthly all-hands meetings; communication is the key to the program s success. The program incorporated the lean workshop process at the onset of the program to establish the art of the possible for our integration and test activities and to ensure these capabilities were built into the design. The adoption of this process was important not only to set the tone but also the foundation for a design for manufacturing assembly and test approach. However, continuous and regular communication and recognizing exceptional individual or team performance have been the best tools to continuously improve our products AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 4

5 Team Leadership 30% of category score Teaming What unique processes and practices have you put in place to maximize team collaboration and efficiency? Supply Chain With the broader distribution of design, development and production responsibility across the supply chain what unique tools, processes and practices have you put into place to ensure integration of the total supply chain (up/down/across)? People Development Among the most important roles of a leader is the identification and development of talent. What unique processes, tools and practices have you put into place to ensure people are developed and given the opportunity to risk, fail, recover and fully contribute? What metrics have you put into place to ensure this effort is effective? Teaming: Two months after signing the contract for the first program, the 702SP senior leadership and 702SP customers traveled to the Boeing Leadership Center and completed the Boeing Program Managers Development Class as a unit. This provided an excellent opportunity for the entire group to learn about each other and what each deemed critical. The class provided a very valuable common program management foundation. This learning and development experience jump started the team and immediately created a more collaborative environment and shared destiny. Weekly customer engagement and quarterly joint executive reviews have helped ensure full involvement and verification that program expectations are being met. Additionally, The product line leadership took a group of our integrated product team leaders, designers, manufacturing engineers and production managers to Seattle for a week to gain real-time knowledge and experience in lean production and engineering practices from the Boeing Commercial Aircraft team. Seeing real time the benefits of lean embedded into the design methodology and manufacturing processes helped the 702SP team define its vision of the future state for the SP production optimization. Supply Chain: The 702SP changed the engagement strategy with our suppliers from one of Boeing defined contract requirements to one of supplier defined best practices and products. The integration of the Boeing needs and supplier capabilities allowed for an improved delivered product quality and on-time performance. We increased the level of engineering engagement with our suppliers during the design development phase and co-located supplier personnel with the Boeing engineering staff to allow the supplier to sign off on the initial layouts and final designs. People Development: The 702SP staffing approach has been focused on diversification and opportunity. We have a highly diverse early career team that is intermixed with a few late career experienced individuals who are chartered not only with getting the job done but also raising the next generation of program and functional leaders. These late career individuals have become coaches with very tight work teams pushing themselves to on-quality, on-time deliveries. A good example of this team environment is in the Design Integration team. This team was responsible for the entire electromechanical design of the satellite. More specifically, they designed the entire spacecraft structure including all fixed and deployable products, layout of all units as well as electrical and passive interconnects, and packaging the propulsion system. The team was cored up 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 5

6 Operations 40% of category score Cycle Time Please describe what your program has done to reduce and continue to improve the cycle time required for the phase of life cycle in which you currently are executing (design/develop, produce, sustain). Include in your description the tools, processes and practices used as well as the metrics. Efficiencies Affordability and breaking the cost curve are among the most important challenges facing all program managers. Describe the areas you have targeted to improve your costs and how you resolved these challenges for each target. Describe how your program has developed or implemented new and unique tools, processes and practices to reduce cycle time for your program s specific stage of the lifecycle (design/develop, produce, sustain). Planning, Monitoring, and Controlling What are the most significant change elements your program dealt with in the past 36 months, and what unique best practices and processes did you implement to make these changes. (Examples of change: intellectual property, shortages of critical supplies/raw materials.) in one single open work environment and completely empowered with the entire decision making process. The team was lead by a single chief mechanical engineer and was staffed at 50 percent of the regular staffing levels for design and analysis. This centralized design and analysis team worked as a collaborative group and engineered two different spacecraft in half the normal cycle time one tenth the level of engineering quality escapes and half the normal labor hours. Cycle time, engineering or manufacturing errors, and cost per operation metrics are used for all products within the product line. Cycle Time: The total cycle time from initial concept on the 702SP to final delivery to the launch site was four years, which is the fastest satellite development in the history of the Boeing Company. This included the full qualification of two structures, a new telemetry and control system, a stacked vibration and acoustic test, and new transfer orbit mission. The product line has reduced its cycle time to 22 months for the programs currently under contract with plans for further reductions. The 702SP program processes two spacecraft at the same time in the assembly integration and test phase in half the time of the larger platforms with no reduction in the verification testing requirements. The assembly integration and test cycle time requirements were established at the beginning of the program and were held at the same level of importance as customer defined on-orbit requirements. Any change to cycle time had to be approved through the program Engineering Review Board (ERB). Lean workshops are used to engage employees in seeking cycle time or quality improvements so continuous improvement is made from program to program. Efficiencies: The SP already attacked the launch cost curve, reducing launch cost by up to 50 percent. Focus on the On- Quality, On-Time delivery of our satellites in design and production has the added value of ensuring cost targets are achieved as the focus on quality reduces the level of postdelivery rework and focus on schedule reduces the cost of long program execution phases. Primary areas of cost improvement is on both subsystem and system level assembly integration and test, as well as the standardization of our supplied hardware to industry standard products to reduce supplier cost while improving delivered hardware quality. Specific examples of improvements in cycle time are the stacking of our satellites for vibration and acoustic testing, reduced reliance of bonding systems and processes at all levels, and improved tooling techniques for faster component fabrications, subsystem integration and system level testing. Planning, Monitoring, and Controlling: The SP change 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 6

7 elements exist in three forms All-electric propulsion system: Historically electric propulsion is used as an augmentation to liquid propulsion systems. This change required the development of new hardware, mission plans, and fault and autonomy. Leveraging Boeing s many years of experience in flying electric propulsion, and looking for nontraditional answers for the mission and hardware, helped achieve the solution. Examples like the rotary switch assembly that improved the XIPS reliability is a good example of this type of out-of-the-box thinking. 2. New engineering execution process: The short cycletime combined with dual spacecraft designs required a retooling of the engineering process and much heavier reliance on small agile team execution and empowerment. The consolidation of the electromechanical engineering into a single design integration team across all disciplines is a good example of how this challenge was overcome 3. Redefinition from mission-optimized to balanced mission performance and economic AI&T solutions: It is inherent in our nature to continually optimize for better and better on station satellite performance. This optimization tends to drive solutions that prioritize mission performance over less expensive techniques in engineering and manufacturing. Creating a stronger balance between these activities is a key success factor today and in the future. Setting the cost and cycle-time requirements at an equal level to the mission requirements and using the ERB process to assure compliance were critical in meeting system affordability. IV. ADAPTING TO INNOVATION AND COMPLEXITY: (HOW DO YOU DEAL WITH YOUR PROGRAM S UNIQUE COMPLEXITIES) = 20 POINTS Identify the Program s Market Uncertainty level How new is your product to your market and users, based on the definitions below. Then describe how you deal and address this specific uncertainty: - Derivative an improvement of an existing product/system. Level of Market Uncertainty Level (choose one) _X_ Derivative Market Uncertainty: The 702SP is viewed as a disruptive technology change within the industry since it cuts the cost of a satellite launch in half as well as providing proportionally more payload capacity compared to classic liquid propulsion systems. As a disruptive technology where you are the first to market with the system, the key challenge for all stakeholders is one of increasing confidence in the new system s capabilities and value. We have found the best way to increase the confidence is to execute on your 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 7

8 commitments. For the past three years, the 702SP team focused on understanding the value proposition for each stakeholder community and our efforts on balancing the needs of each. As stated earlier, we are committed to the On-Quality, On-Time delivery of all products and the balancing of mission performance with product affordability. Also key to this was to strike a balance in the use of products with a strong flight heritage with new systems that would help provide increased customer capabilities as well as reduced system costs. The new telemetry control system and the stackable spacecraft structures are examples of the use of targeted technology upgrades, while the use of common industry payload electronics represented the use of standard flight proven systems. Identify the Program s Technological Uncertainty using the definitions below. Then describe how you deal and address this uncertainty: - Low-tech: application of mature, well-established technology - Medium Technology: existing technology modified to meet new design requirements - High-Technology: recently developed new technology - Super High Technology: nonexisting technology that needs to be developed during the program. Identify the level of your System Complexity using the definitions below. Then explain how you are dealing with this level of complexity: - A System a collection of subsystems performing multiple functions. Technological Uncertainty Level (choose one) _X Medium Technology Technological Uncertainty: It is difficult to categorize the SP into just a single category since it incorporates a mixture of high and low technologies, choosing high technologies where key market discriminators could be made, hence the Medium Technology classification. To effectively manage the high technology areas we relied on small highly integrated products that were fully empowered to engineer the solutions with a minimum of oversight. A good example of this was in our new flight and control system. The SP team needed to develop new hardware, software, and fault and autonomy solutions in half the time of past new product developments. This team successfully achieved its deliveries by using a balanced team of experienced leaders and early career outof-the box thinkers to marry proven techniques with new and innovative ways of designing and coding the system. The software was designed 25 percent more efficiently than previous new systems. The units were delivered to the spacecraft within program needs and at 30 percent less cost than heritage systems. System Complexity (choose one) _X System System Complexity: Using a new telemetry and control system with a new method of orbit-raising accentuates the complexity of the 702SP system. All EP orbit-raising is a very different design solution than a classical liquid system and requires a different engineering solution to be successful. Successful execution of this design and the successful mission performance to date is the result of leveraging the past to springboard into the future while adopting new tools and products to simplify the complexity. In this system implementation the program relied very heavily on Boeing s many years of electric propulsion use to define the best approach to mission success. Additionally, we teamed with our mission service provider, Intelsat, to define a new way to monitor and manage 2015 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 8

9 spacecraft mission performance. The success of the mission to date is the result of reliance on heritage in electric systems and implementation of tools that were able to leverage this knowledge. Identify the Pace and Urgency of your team s effort using the definitions below. Then describe how you deal with the program s pace requirements: - Regular timing no specific time pressures. Fast/Competitive time to market is important for competitiveness. - Time Critical there is an absolute and criticalto-success deadline. - Blitz there is a crisis element driving the need for immediate response Pace and Urgency (choose one) _X Fast/Competitive Fast/Competitive: To meet the customer s time to market needs as well as control the development costs, the first launched satellites served as the development models, qualification vehicles, and were also used to validate the manufacturing and test flow. In short, the validation model was also the first flight article. Success was predicated on the entire team having the same priorities throughout the program. For the SP development the entire team was continuously coached that the primary mission was On- Quality, On-Time. Monthly all-hands meetings were used to set priorities with the entire team and weekly customer meetings and program ERBs were leveraged to make sure the customer was fully engaged and the product design was controlled. Additionally, the program senior leadership reviewed all program risk burn downs monthly to assure all risks were being properly managed. V. METRICS (HOW DO YOU MEASURE PROGRAM S PERFORMANCE) = 30 POINTS Note 1: We are not looking for $ results, but the relative percentage achieved. In particular indicate what specific metrics and data you are using that drive the program beyond standard measures of schedule, budget, and performance, and which have contributed to your program s focus and its success.) Note 2: We have provided a weighting system on this section that indicates importance to the overall A&D enterprise in improving performance. Those with lower weighting are not unimportant; however, they have become given practices that all teams should be using. 40% of category score Customer/Performance - How do you measure the impact of your program on your customer and your customer s satisfaction? Include a description of unique/new metrics, as well as numerical evidence (normally a percentage or rate). Focus on the unique metrics developed to provide an efficient way to effectively communicate this information to your customers and within your organization Customer/Performance: The program uses Technical Performance Measurements (TPMs) to measure all key performance requirements for the program. The TPMs are updated and communicated weekly to the customer and corrective actions are identified for any TPM not meeting expected performance. These same TPMs are used by Boeing operations to assure proper resources and products are applied to the program. In addition to TPMs, we use schedule and quality metrics to measure performance to plan and the delivered quality of the product. The customer is given visibility into all quality escapes, regardless of level and criticality, to maintain an open environment. Through final test, for the first two spacecraft, Boeing met or exceeded AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 9

10 beyond your program team. 20% of category score Team - How do you measure and assess the impact of your program on your team development and employee satisfaction? percent of all specified program TPM s with no required deviation waivers from final requested performance values, and provided additional fuel for extended mission life. Team: Boeing has an annual employee survey to determine employee satisfaction and to determine if, as a company, we are making the right changes to be competitive. This information is reviewed at the working group levels and corrective actions are identified to be assessed by teams. Additionally, for the SP product line, we show all program performance metrics at the monthly all-hands meetings. The best assessment of team development and satisfaction is to understand how the team has been recognized. We are very proud of the level of recognition our SP team has achieved: SP team members have been recognized as FIT (Finds a way with Integrity and Teamwork); 21 engineers have been recognized with Boeing World Class Engineering awards; one of our chief engineers was recognized as the Boeing Defense Systems Engineer of the year; one of our teams was awarded a Boeing key invention award; and three women from the 702SP team were recognized as Amelia Earhart Society award winners for high technical achievements. In addition, many of our team members were promoted with increased responsibility as functional and program leaders in recognition of the work they have done on the SP product. 40% of category score Unique Metrics - Describe unique metrics you are using to measure your program s progress and how you focus it for outstanding and future success. Program teams assess and manage risks and opportunities across all programs within the 702SP product line to leverage potential risk resolution and to gain future successes from opportunity captures. The product line measures cycle-time for all system and subsystem assembly integration and test activities. Additionally we measure hours per engineering drawing and errors per engineering drawing to determine design integration efficiency. We focus on quality metrics daily and have a goal to not travel any work or quality escapes to the next phase. Travel work is measured and controlled on a weekly basis and it requires the program manager approval to move any traveled work at any level to the next phase. We use the information coming from the EVMS and business measurement systems to compare current performance to future affordability needs to determine the required improvements AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 10