Experience of Lean in a non-manufacturing environment BAE Systems Customer Information Services Suzanne Rooney Customer Information Services
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1 Experience of Lean in a non-manufacturing environment BAE Systems Customer Information Services Suzanne Rooney Customer Information Services 1
2 Contents BAE Systems Lean in BAE Systems CIS implementation Example projects Lean to Change Summary 2
3 BAE Systems 3
4 BAE Systems global defence, security and aerospace Our vision is to be the premier global defence, security and aerospace company Our mission is to deliver sustainable growth in shareholder value through our commitment to Total Performance for all our customers Customer focus Our Group Strategic Objective is Total Performance through Financial performance Our Strategy Programme execution Responsible behaviour Our values are Trusted, Innovative and Bold Strategic Actions Grow our EI&S business both organically and via acquisitions and improve our efficiencies Implement our global land systems strategy and deliver on our efficiency and rationalisation plans Establish in the UK sustainably profitable through-life business in air, land and sea Grow our home markets in the Kingdom of Saudi Arabia, Australia and India Implement global initiatives in Security, Readiness & Sustainment and Unmanned Aircraft Systems Continue to develop our global markets Integrated Business Plans 4
5 BAE Systems values TRUSTED We do what we say we ll do INNOVATIVE Continuous development BOLD Collaboration (worldwide) Strategic Activities Business Lean 5
6 Lean in BAE Systems 6
7 Lean in BAE Systems Lean Learning Academy (LLA) set up in 2007 to transform manufacturing Engineering Lean Learning Academy (ELLA) introduced in 2009 to apply Lean to product design and support Common aims Lean Tools & Techniques Essential leadership skills to deliver change 7
8 Level of benefit delivered by ELLA 1.064M Realised 1.394M Approved > 18M Identified A) ELLA Projects B) Day Job Activity 8
9 Effect of benefits to BAE Systems So what? Better Leaders Empowered People Reduced Waste & Risk Improved Performance Improved Customer Satisfaction Enhanced Reputation BAE Systems is facing huge challenge and change Lean is all about leading and delivering change within the business 9
10 CIS Implementation 10
11 Customer Information Services (CIS) Fit for purpose & timely technical publications are fundamental to the successful delivery of product and/or support solutions with product safety delivered by robust engineering governance at Design Authority level CIS Mission is To design and manage information architecture on behalf of technical authority to provide the Safest, most Effective, most Efficient mean of delivery of technical information for BAE Systems Blue Sky Vision Our priority is Safety, then Effectiveness, then Efficiency Customer needs represented in E2E E2E study determines tailored output Tailored output is delivered by standardised, governed processes Standardised, governed processes and technologies are independent of location People are flexible, trained, internally-accredited and recognised as information experts and fully adhere to BAE Systems Code of Conduct 11
12 CIS and Lean Key business objective for 2009 was to maintain charge rates at 2008 level Achievable through cost down, streamlined processes Lean capability established in 2009 Dedicated team of six Lean = day job Self-funding 20 Lean associates embedded in operations and functions Lean not their day job 12
13 CIS organisation 13
14 First steps in Lean Developed a toolset based on the Lean tools and techniques from the LLA and ELLA Operational framework included what was expected of the team and wider CIS Mechanism for capturing and prioritising Lean opportunities and benefits A3 reports for reporting progress Engaged L0012: AGE Data Transfer the business through Opportunity road shows Description: Customer has desire to receive AGE files on same day they are completed ie. immediately. Currently there are delays due to process flaws and personnel capabilities. Anticipated benefit: Other (if required): Customer expectation met. Increased Capability of personnel. Applicable to all projects x- ferring data to mainframe. CIS CUSTOMER ACTUAL ACTUAL Benefits PROPOSED PROPOSED TOTAL BY YEAR CURRENT ( k) FUTURE ( k) Comment Single poc for transfer of AGE data. Process refined to eliminate blockage. Progress Risks identified but ownership not identified satisfactorily. Training reqd for other users to become competent. Problems on mainframe x-fer is identified SOFT T F O O S F/cast Lean Benefits Tracker 1. Description of Proposal 2. Savings Category (Please select) Project: Date: Type Yes / No Comments Lean Team Lead: Signature: CIS - CSR / SSR Process / Project Owner Signature: CIS - Tier 1 Costbase 1.1 Description of Lean Opportunity CIS - Tier 2 Costbase CIS - Other (Please State) Customer Notional Cost Avoidance Other (please State) REF: 3. Key Dependencies PROPOSED TOTAL Summary of Proposed Changes Current Lean Status Opportunity assessed YES ACTUAL TOTAL Key Risks and Risk Mitigation Opportunity being progressed IN PROGRESS Lean process position Lean benefits identified Lean Reviews LP1.1 YES TBA X-Platform implementation TBA Stakeholders Name Purpose Colin Campbell Lean Guidance Trevor Lafferty CIS Lean Delivery Michael Hunt Head of Operations Dave Ernill Strike Operations Manager Steve Thompson Section Leader - Strike Org CIS CIS CIS CIS CIS Contact Details Actions Overall project status G No. Action Owner Target Comment Status 1 Workshop to agree current process TL 25/02/2009 Complete B 2 Analysis & outline of current process TL 27/02/2009 Complete B 3 Produce future state VSM and propose to stakeholders TL 20/03/2009 Proposed to Stakeholders now in SH testing B 4 Gain Stakeholder agreement/ownership of solution TL/ST 25/03/2009 Involvement process for end users has been completed B 5 Implement recommended changes ST 27/05/2009 New process has been trialled successfully - awaiting feedback G with stats. 6 ALL Risks mitigated TL 30/06/2009 Every risk is successfully removed. B 7 Work Instructions to be updated ST 31/07/2009 To be updated before next audit A 8 AGE section take ownership of Process ST/TL 31/08/2009 New Process becomes Current baseline process G 9 10 Deliverables 5. Projected Benefits Summary Current Financial Year = Jun Jul Aug Sep Jan Feb Mar Apr May Oct Nov Dec Total Future Years TOTAL CIS CFBU TOTAL Implementation Plan 7. Proposal Approval: Management and Stakeholders Title Signature Implementation milestones identified, target dates for achievement set and actual tracked Name Date Description Planned For Date Complete Project Manager M1 Project Accountant M2 Cost Base Accountant M3 Business Area Lead M4 Head of Change M5 1 Current state VSM defined to show information flow for transfer process. 2 Analysis of current state VSM to identify improvement opportunities. 3 Future state VSM that defines the improvement opportunities 4 Formal report with observations and recommendations 8. Actual Benefits Summary Current Financial Year = Jun Jul Aug Sep Jan Feb Mar Apr May Oct Nov Dec Total Future Years TOTAL CIS CFBU TOTAL Document New Process 14
15 Lean project types Quantity Process over one week Large process reviews E2E process reviews Duration 15
16 Example projects 16
17 New print capability Legacy mainframe authoring applications Mainframe printer Legacy system 250,000 pages per month 50,000 pages per month Generic printer Legacy mainframe authoring applications PDF print server PDF files New system 17
18 Training and publications integration PLATFORM TECHNICAL AUTHORITY & DISCIPLINE LEADS T&HUK DEFINE TRAINING SOLUTION OBTAIN SOURCE DATA DRAFT COURSEWARE CERTIFY COURSEWARE DELIVER TRAINING CIS DEFINE PUBLICATIONS SOLUTION OBTAIN SOURCE DATA DRAFT PUBLICATIONS CERTIFY PUBLICATIONS DELIVER PUBLICATIONS FEEDBACK CURRENT STATE DEFINE INFORMATION SOLUTION (TRAINING & PUBLICATIONS) OBTAIN SOURCE DATA DRAFT INFORMATION CERTIFY INFORMATION DELIVER TRAINING DELIVER PUBLICATIONS FUTURE STATE 18
19 Hawk Australia Challenge 20% reduction in platform support costs Exchange rates lower perception of value for money Organisation and geographic boundaries Solution Increased value for money Integrated publications team in UK and Australia Standardised management and governance process 19
20 Lean to Change 20
21 Reflecting on our first year What went well Total savings attributed to Lean Team exceeded running costs External recognition for team activities Team able to react quickly to new opportunities Lean tool set designed for CIS Improvement opportunities identified using Lean toolset Lessons learned reviews after all projects and lessons implemented A3 reports (Plan-on-a-page, single page summary) used across CIS And less well Most effort on large process reviews/e2e projects Toolset too focussed on the process Publicising team activities could have been better ELLA graduates didn t really get involved in Lean activities Implementation of Lean improvements proved difficult 21
22 Lessons learned Understand the challenge Determine potential benefits before applying toolset Recognise stakeholder influence Recognise environmental impact Implementation, implementation, implementation. 22
23 Change lifecycle Set the Stage: LOW 1. Create the sense of urgency 2. Pull together the guiding team Decide what to do: 3. Develop the change vision Make it happen: 4. Communicate for understanding and buy-in 5. Empower others to act 6. Produce short-term wins 7. Don t let up Make it stick: 8. Create a new culture LEVEL OF DIFFICULTY Ref: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996). HIGH 23
24 CIS Change Lifecycle SYMPTOMS ASSESSMENT DIAGNOSIS RECOMMENDATIONS IMPLEMENTATION DETAIL IMPLEMENTATION DETAIL PROCESS CONFIRMATION Financial Performance Customer Feedback Governance Failure Configuration Issues Poor Schedule Adherence Capability Shortfall Deteriorating Performance Customer Expectations Gap High Value Opportunity MECHANISMS Initial Assessment against SEE Identify and agree Focus Area and Toolset Detailed Implementation Assessment - Challenges - Stakeholders - Environment - Dependencies - Blockers Apply most appropriate change toolset, for example: Service Excellence Lean Project Management Stakeholder management Best Bang for Buck Bite-sized chunk Tangible SEE Benefit Implementation Strategy Customer buy-in Identify conditions for change Accountability Commitment Styles - Mandated - Selling / cultural - Sponsored - Insurgent Time-bound Feedback Process Dashboard 21-pack CSAT Feedback Process 21-pack SOFT Reports CSAT Monthly Reviews Phase Reviews Project Check-Up Phase 0 Phase 1 Phase 2 Phases 3 Phases & 4 5 & 6 Phases 5 & 6 Phase 7 24
25 Summary 25
26 Key messages Lean is not just for manufacturing Lean does not only deliver financial benefits Lean can identify improvement opportunities Change is needed for successful implementation 26
27 Thank you 27
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