LMMFC Journey To Excellence

Transcription

1 LMMFC Journey To Excellence Missiles and Fire Control Steve Sessions Director, Supplier Quality MFC Excellence - 1

2 Strategic Mixed Focus Missiles and Fire Control Metric Driven Results A Metrics Journey PMT: Performance Management Teams: Based Multi-functional Manufacturing Teams ELC: LMMFC Leadership Reviews of Performance Measures LM21 Lockheed Martin in the 21 st Century: Lean Six Sigma Deployment Strategic Performance Management Teams: Supply Chain Based PMTs Next Generation of ELC Enterprise Performance Index: Balanced Scorecard Analysis The Journey: Tactical to Strategic Focus on Measures MFC Excellence - 2

3 The Company Work System and Work Processes Work Systems Capture MFC President Execute Capture Execute Develop Strategic Objective Develop Long Range Allocate Resources Capture The Business the Program Design the Acquire the Fabricate the the VP Business Development VP Technical Operations VP Materials VP ion Operations Work Processes Multiple VPs of Lines Ensure Quality Excellence Provide Finance and IT Provide Facilities and ESH Provide Human Resources Provide Legal and Security VP Quality Assurance VP Finance & IT VP Human VP Legal Dir Ethics Resources Leadership Structure Mirrors Company Work Systems and Value Stream MFC Excellence - 3

4 Operations Focus Overview Enterprise Work Systems & Process Development Align customer requirements & value to business Establish key Work Systems:, Capture, Execute, Design Work Processes to execute work systems Establish business Metrics to monitor health and drive continuous improvement Build company structure to manage Work System (i.e. From Teams to Executive Management) MFC Fundamental Business Principle: Business is not the objective it is the result. Performance is our objective. MFC Excellence - 4

5 Enterprise Work Systems Development Analyze Requirements Update as Needed Identify Key Work Systems Mapping core competencies to internal and external inputs to create customer value Analyze Requirements Identify Key Work Processes Refine BPR Identify Key Work Systems Identify Key Requirements & Metrics Conduct Business Performance Review (BPR) to manage metrics (ELC) Conduct Business Performance Review (BPR) to manage metrics (ELC) Systematic Review Identify Key Work Processes Refine BPR Identify Key Requirements & Metrics MFC Excellence - 5

6 Enterprise Work Systems Development Analyze Requirements Mapping core competencies to internal and external inputs to create customer value Identify Key Work Systems Identify Key Work Systems and encompass both current and future performance objectives and customer value Identify Key Work Processes Identify the Key Work Processes required to successfully implement and control our Work Systems Identify Key Requirements & Metrics Conduct Business Performance Review (BPR) to manage metrics (ELC) Define Key Requirements and Measures for each Work Process Establish business rhythm for Business Process Reviews with senior leadership to monitor performance and drive continuous improvement Refine BPR MFC Excellence - 6

7 Identify Key Work Systems Analyze Requirements Identify Key Work Systems Capture Identify Key Work Processes Identify Key Requirements & Metrics Execute Conduct Business Performance Review (BPR) to manage metrics (ELC) Refine BPR Establish the Work Systems Strategic and Long Range s Capture the Business, Design, Acquire, Fabricate, and the Ensure Quality Excellence, Provide Finance, IT, HR, Facilities, ESH, Legal, and Security MFC Excellence - 7

8 Identify Key Work Systems Develop Strategic Objectives Develop Long Range s Allocate Resources Step 1 Capture Perform Situational Assessment Market Dynamics Develop Business Strategy LOB Strategic s MFC Strategic Execute Business Posture Functional Segments MFC Excellence - 8

9 Identify Key Work Systems Develop Strategic Objectives Develop Long Range s Allocate Resources Step 2 Capture Assess Current Year Financials Evaluate Situational Assessment Characterize Orders by LOB Execute Project Out Year Orders, Sales, Profit MFC Long Range Identify Risks & Opportunities MFC Excellence - 9

10 Identify Key Work Systems Develop Strategic Objectives Develop Long Range s Allocate Resources Step 3 Capture Annual Allocation (% Sales) New Business Council or OIPT Capital Review Board Execute Resource Management and Review NBAE and Capital Spend MFC Excellence - 10

11 Identify Key Work Systems Capture The Business Capture Market Development & Pursuit Capture The Business Opportunities Qualification Qualification (Phase I) (Phase II) Step 4 Pre-Proposal (Phase III) Execute Proposal Development (Phase IV) Post-Proposal (Phase V) MFC Excellence - 11

12 Identify Key Work Systems the Program Design The Acquire The Fabricate The The Step 5 Step 6 Capture /Schedule Deliverables Baseline Cost Perform Mission Analysis Generate System Requirements Execute Validate Make/Buy & Release BOM the Program Design The Acquire The Design the System Fabricate The The Staff Manpower Critical Item Development Establish Program Performance Measures Integration Verification & Validation MFC Excellence - 12

13 Identify Key Work Systems the Program Design The Acquire The Fabricate The The Step 7 Step 8 Capture Execute Review & Analyze Required Material Solicit & Evaluate Supplier Bids Prepare & Definitize Contracts Analyze Material Solution Identify Manufacturing Technologies Define Manufacturing Process Manage the Supply Chain Close Delivered Contracts Build the (H/W or S/W) MFC Excellence - 13

14 Identify Key Work Systems the Program Design The Acquire The Fabricate The The Step 9 Capture Analyses: Design & Systems Develop & Design the System Execute Deliver the & System Provide Operational to End of System Life MFC Excellence - 14

15 Identify Key Work Systems Ensure Quality Excellence Provide Finance and IT Provide HR Provide Facilities and ESH Provide Legal and Security Capture Provide oversight and guidance in all Key Work Systems and Processes Execute Ensure Quality Excellence Provide Finance and IT Provide HR Provide Facilities and ESH Provide Legal and Security MFC Excellence - 15

16 Integrated Work Systems & Processes Prepare Company Strategic Perform Situational Assessment Develop Business Strategy MFC Develop Strategic Strategic Objectives Assess and Forecast Financials Develop Long Range Identify Risks and MFC Long Develop Long Range Opportunities s & Allocate Resources Proposal Costs R&D / Tech Investment Capital Expenses Allocate Resources Capture Execute Execute AWARD Proposal s Provide Improvements and Spirals Contract Performance the Program Deliverables Cost Manpower Performance Measures the Program Market Development & Opportunity Qualification Phase 1 Design the Requirements Design The Design Verification & Validation Capture the Business Pursuit Qualification Phase 2 Phase 3 Capture The Business Closed Loop Iterative Processes Acquire the Material Requirements Acquire The Solicit & Evaluate Bids Manage the Supply Chain Pre-Proposal Proposal Development Phase 4 Fabricate the Manufacturing Technologies & Processes Fabricate The Build the Post-Proposal Phase 5 Ensure Quality Provide Finance Provide HR Provide Facilities Excellence Quality and IT Facilities Finance and Human ESH Resources Proposal s the System Requirements AWARD The Deliver the Provide Operational Provide Legal and Security Contract Deliverables MFC Excellence - 16

17 ALIGNED MEASURES WITH WORK SYSTEMS & PROCESSES MFC Excellence - 17

18 Metric Driven Results Metric Alignment Quarterly Next Generation: Strategic Analysis of Work System Performance and Trending Executive Review of Tiered Work Systems and Processes Monthly Team and Level Reviews Daily / Weekly Tier 1: Work Process Fabricate the Capture the Business the Program Etc. Tier 2: Work Process Multiple Measures Hours Per Unit All s Defects Per Unit All s Etc. Tier 3: Work Process Measure Hours Per Unit X Defects Per Unit Y Etc. Tier 4/5: PMT Team Measures Hours Assembly Line A Rejects Assembly Line B Etc. Bottom to Top Metric Alignment Roll-up to Balanced Scorecard MFC Excellence - 18

19 Metric Driven Results Metric Alignment Executive Review of Tiered Work Systems and Processes Monthly Quarterly Tier 1: Work Process Fabricate the Capture the Business the Program Etc. Tier 2: Work Process Multiple Measures Hours Per Unit All s Defects Per Unit All s Etc. Tier 3: Work Process Measure Hours Per Unit X Defects Per Unit Y Etc. Next Generation: Strategic Analysis of Work System Performance and Trending Team and Level Reviews Daily / Weekly Tier 4/5: PMT Team Measures Hours Assembly Line A Rejects Assembly Line B Etc. Business Rhythm Teams: Daily / Weekly Executive Leadership Council: Monthly Senior Executive Leadership Council: Quarterly Tactical and Strategic Reviews Robust Business Rhythm And Tiered Focus Achieves Results MFC Excellence - 19

20 Element of Excellence - EPI Enterprise Performance Index Business Scorecard Instrumentation Flags Trends Adaptable to Other Businesses Complement to Tactical Techniques Discriminator in Industry Strategic Instrumentation Set Higher Understanding of Business Relationships Prediction Oriented Strategic Tool Information for Executive Leaders to Drive Strategy and Results MFC Excellence - 20

21 Tier 2 Tier I.I Tier I Missiles and Fire Control EPI Strategic Metric System - Hierarchy Enterprise Score = 834 Poor Marginal Acceptable Exceptional Over Managed 834 Talent Readiness Index (+/- 100 Pts) +72 Execution Index Scorecard Process Process Index Scorecard 738 Composite 798 Score 60% 40% 762 Monitors, Process and Human Capital Performance MFC Excellence - 21

22 Aligned Measures With Work Systems & Processes Develop Strategic Objectives Develop Long Range s Allocate Resources Capture Capture The Business Execute the Program Design The Acquire Material Fabricate The The Ensure Quality Excellence Provide Finance and IT Provide HR Provide Facilities and ESH Provide Legal and Security PMT Measures (Weekly) Work Process Measure (Monthly) Key Work Process Measures EPI (Monthly) Work System Measures (Quarterly) MFC Excellence - 22

23 RESULTS MFC Excellence - 23

24 Orders $ Missiles and Fire Control Realized Results A Marriage of Instrumentation and Leadership Capture Execute Develop Strategic Objective Develop Long Range Allocate Resources Capture The Business Rigorous Management Process Produces Sustained Market Growth Actual Exceeded Orders s in Volatile Market MFC Excellence - 24

25 Realized Results A Marriage of Instrumentation and Leadership Capture Execute the Program Design the Acquire the Fabricate the the Cumulative Cost Savings Due to Robust Design Process and Resulting First Test Success 100% First Test Design Success Over 12+ Years MFC Excellence - 25

26 Supply Chain Management Best Practice Measuring Performance at Key Locations in the Procurement Process MFC Excellence - 26

27 Supply Chain Management Best Practice Supplier Management System (SMS) Risk Assessment & Action s Sub-Tier Risk Analysis Supplier Performance Trend Metric Analysis SAS SHAPE Trend Tool SHOT Shared Supplier Risk Characterization Tool Sub-tier Suppliers Identification & Risk Assessment Supplier Quality & Deliver Performance Analysis Tool Measuring Performance at Key Locations in Integrated Supply Chain IT Tool Suite the Procurement Process Rapid Supplier Metric Summary MFC Excellence - 27

28 On Time Percent Supplier Parts Delivered Missiles and Fire Control Supply Chain Management Best Practice Supplier Management System (SMS) 100 Improvements in Managing/Developing Our Supply Chain Processes are Driving Operational Effectiveness On Time % Risk Assessment & Action s Sub-Tier Risk Analysis Reviews Sub-tier Suppliers Identification & Risk Assessment Supplier Performance Trend Better SAS SHAPE Trend Tool SHOT Common Processes Evaluated Metric Set Supplier PMT Sub-Tier Monitoring Supplier Trend Tool Performance Supplier Data SHAPE, SCORE Tech Gateway Disaster Warnings Shared Action Supplier Teams Risk Characterization 40 Tool Benchmark top performer = 98% Benchmark Average = 87% Parts Procured Strategic Improvements: Enhanced Trend Tool Reverse Report Card Financial Risk Monitoring Supplier Quality & Deliver Performance Analysis Tool Integrated Our Goal Supply is 100% Chain Quality IT Tool & Suite 100% On-Time Delivery Parts Delivered Projected Year End Total Metric Analysis Parts Delivered YTD Aug 2012 Supplier Improvement Conference Red Flag Review EPRI Rapid Staffs Supplier Metric Summary MFC Excellence - 28

29 Operational Performance Improvement Improvement ($) ($) Number of Improvement Events Missiles and Fire Control Realized Results A Marriage of Instrumentation and Leadership Capture Execute the Program Design the Acquire the Fabricate the the 1, Affordability Through Continuous Learning & Improvement Total Events Annual Cost Savings (Reduction and Avoidance) Cost Reduction 1, Number of Improvement Events Identification of Opportunities Increase to Maintain Steady Cost Improvement MFC Excellence - 29

30 Realized Results A Marriage of Instrumentation and Leadership Capture Execute the Program Design the Acquire the Fabricate the the Return On Investment Substantially Exceeds Industry Benchmarks MFC Excellence - 30

31 Customer Assessment Follow-On Orders ($) Missiles and Fire Control Realized Results A Marriage of Instrumentation and Leadership Capture Execute Effective Metric Instrumentation and Leadership Enable Informed Decisions Throughout All of the Work Systems and Work Processes 4 Exceptional 3 Satisfactory Positive Customer Satisfaction Yields Increased Follow-On Business MFC - >6% above DOD Industry $7 $6 $5 $4 $ $2 Customer Satisfaction Improving With Orders and Financial Growth MFC Excellence - 31

32 Tier 2 Tier I.I Tier I Missiles and Fire Control Final Thoughts EPI And Malcolm Baldrige Executive Review of Tiered Work Systems and Processes Monthly Team and Level Reviews Daily / Weekly Quarterly Tier 1: Work Process Fabricate the Capture the Business the Program Etc. Tier 2: Work Process Multiple Measures Hours Per Unit All s Defects Per Unit All s Etc. Tier 3: Work Process Measure Hours Per Unit X Defects Per Unit Y Etc. Tier 4/5: PMT Team Measures Hours Assembly Line A Rejects Assembly Line B Etc. Next Generation: Strategic Analysis of Work System Performance and Trending Malcolm Baldrige Model provides the framework Measurement of the system that includes focus on Leadership, ning, Workforce, Operations, with Results to the Customer Balanced Scorecards provide the Measurement Methodology Identifies the measures and goals for each Key Work Process Identifies Ownership and Accountability Enterprise Performance Index provides the Strategic Analysis Analyzes the Work Systems with the focus on the Business Long Range Provides the Knowledge to predict and identify trends early to drive Results Enterprise Score = 834 Talent Readiness Index (+/- 100 Pts) +72 Execution Process Index Scorecard Process Index Scorecard 738 Composite % Score 40% 762 MFC Fundamental Business Principle: Business is not the objective it is the result. Performance is our objective. Poor Marginal Acceptable Exceptional 834 Over Managed MFC Excellence - 32

33 QUESTIONS MFC Excellence - 33