Babcock MCS Lean Express. Workplace Organisation Raising the Standard

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Babcock MCS Lean Express Workplace Organisation Raising the Standard

Babcock Operational Excellence Model 7 Key Lean Enablers Babcock 8 Guiding Principles Lean Process Audit Exit Gates

Our Vision of the Guiding Principles The engineer shall spend as much - value adding time at the helicopter - as possible We need to establish the adequate framework conditions together 3

MCS Lean Journey 2015 2016 Start of Kaizen Shift 2017 Lean (Ramco) 3 - Stability Stable Processes Eliminating Waste Flow & Pull 2 Overview & Insight 6S6s Visual Management KPI s WIP Control Continuous Improvement Culture 1 - Structure Work Environment Procedures & Instructions Abnormalities visible Training and Awareness 2018 5 - Robustness Robust process Design for Six Sigma Quality Function 4 - Capability Deployment Reducing Variation In process control Statistical tools 6 Sigma Operational Excellence 6 Sigma Ramco Start of Shift 6S Operational Excellence

Role and Responsibilities of Leaders To facilitate and further drive change through continuous improvement requires a cultural change from Directors to Team Leaders Continuous leadership training Continuous improvement Roles & Responsibility development Lean understanding Raising awareness and create basic understanding 5

Lean Learning Strategy Train the Trainer 100% Population 20% Population 15% Population 10% Population Lean Awareness Lean Yellow Belt Lean Green Belt Lean Black Belt 2 hours 1 Day 3 Days/ 3 months 10 Days/ 1 Year Project worth 20-50k Savings Project worth 100-150k Savings Lean Champion Lean Basics Trainer Lean Trainer Lean Implementer Savings 6

Leadership Lean People Performance Management Goal Alignment Metric Alignment: Facility Alignment & Corporate Team/site prioritization So How Are We Going to Get There? Rewards and Recognition Promoting successes Alignment of rewards with OpCo s Priorities and Lean implementation objectives Using and balancing team and individual Rewards and Recognition 7 In Strict Confidence

Best Facility Award Most Improved Dec 2016 Blackpool January 2017 Alicante 8

Lean Yellow Belt Training Hall of Fame 9

Equipped with Knowledge What Next! Provide the most value from the customers perspective, while consuming the fewest resources and utilising the talents of the people who do the work. Purpose Process People 10 In Strict Confidence

The Question We Asked Ourselves in Technical Operations How we can use lean and continuous improvement tools and techniques to support Best Practice and improve the working environments in Technical Operations so that we enhance safety, processes and maintenance standards. = 6S 11 In Strict Confidence

6S Overview - What is 6S? Set of Methods / Standards for Improving the organization of our workplace Making it easier to see abnormal situations Setting the foundation for visually managing our processes SAFETY SORT SET IN ORDER SHINE STANDARDIZE SUSTAIN Designing Safety Into Our Workplace Removing Unnecessary Clutter Creating A Place for Everything Clean to Make Abnormal Visible and Build Pride Create Standard Work to Drive 6S Every Day Build Processes to Sustain 12

6S/Visual Management S1-SAFETY Our #1 Priority VISUAL MANAGEMENT. S2-SORT Remove the Unnecessary S3-SET Organize the Necessary S4-SHINE Clean to Make the Abnormal Visible S5-STANDARDIZE Drive Consistency and Standard Work NO WORDS NECESSARY S6-SUSTAIN Sustain Through Follow Up and Accountability Foundation for Lean Processes Enabling Us to See Waste

Task Observations An Approach of Continuously Improving Our Performance Together Joint shift observations with management team, supervisors Documentation of tasks, time & classification into value adding / necessary / waste activities Joint implementation on the shop floor with engineers. Supervisors with key role here. Daily Check Further checks upcoming Joint review of check with team and development of possible improvements / collection of issues to be resolved Development of guiding principles (e.g. standard sequence)+ target times which shall apply for future checks Successful pilot for for daily check, all other checks will be approached step-by-step with the same systematic 14

Future layout Standard layout Pilot Bay - Setup to Optimize Workflow Checks - Roll Out After Successful Trial. All equipment needed is directly located at the bay Rags and cleaning utensils All high used items included Integrated into staging to always have near the A/C Workstation with laptop Quick access into IAS if needed Checklists for check available at each workstation Special tool area Often needed special tool is centrally available in the hangar Shadow boards for reduced searching times Pilot bay to be rolled out to all bays 1 1 Except mobile material store (one central mobile store per hangar) 15

6S in Action - Aberdeen Facilities 16 In Strict Confidence

Sustaining Lean & 6S Continuous Improvement Lean is sustained by 2 Audits: 6S Overview + Lean Audit Facility 6s Audit Facility Lean Audit 17

6S Overview Creating the Lean Community

Lean Communications & Corporate Identity 19 In Strict Confidence

Best Practice Safety 1 2 3 4 5 6 7 Health & Safety induction process for visitors, PPE, awareness video being used? Is Personal protective equipment (PPE) areas are clearly identified and PPE is being properly used by employees? Area is free of trip/slip, or other hazards - Equipment safety guards are maintained in proper working condition? Area is set up in an ergonomic fashion. Work tables at appropriate height, no prolonged awkward postures, etc.? Scaf tags are recognisable on A/C staging & periodically checked? Correct identification of waste bins and waste segregation? Are work areas kept clear of obstructions, clean, and free of debris? Alicante HSE clear floors and trip hazard safety Safety Hats Colico Aberdeen HSE Scaf tags Safety Induction Portugal Staverton Visitors High Viz vests used by France also Albacete Ergonomics for benches 20

Best Practice Safety Staverton HSE Aberdeen HSE Alicante HSE Alicante HSE Spain HSE News Letter Spain HSE News Letter Safety Chains in Blackpool Walkway signs in Blackpool 21

Best Practice Safety Walkway painting in Blackpool Alicante improved staging From trapped finger risk Staverton new TV screen HSE notifications Alicante New Health & Safety technician lockers Alicante clear walk ways France health & safety high Viz vests for visitors France health & safety France health & safety high Viz vests 22

Best Practice Safety Albacete Signage Alicante New HSE Induction Staverton Hand wash Colico Health & Safety Sign France Glove Protection Aberdeen signage Salamanca signage Salamanca signage 23

Best Practice Safety Salamanca signage Salamanca signage Salamanca signage Aberdeen board Aberdeen HSE Board Alicante Signage Alicante Signage Aberdeen Signage 24

Best Practice Compliance 1 2 3 4 Storage of parts is correct with serial number identification for AGS? Parts warehouse is clearly laid out & conforming to standards required Parts are correctly stored on shelving (Rubber matting) & pipe ends have blanks for FOD Tool box checks, carried after Line Mandatory signature folder alongside tool box Staveton Tool box check sheet Albacete Rubber matting on shelves Aberdeen AGS /Non serialised parts stored and Identified in batches Tool box layout Portugal Colico New warehouse laid out and catalogued Alicante Removed parts identified and stored correctly 25

Best Practice Compliance 1 2 3 4 Storage of parts is correct with serial number identification for AGS? Parts warehouse is clearly laid out & conforming to standards required Parts are correctly stored on shelving (Rubber matting) & pipe ends have blanks for FOD Tool box checks, carried after Line Mandatory signature folder alongside tool box Aberdeen New Warehouse Plans Aberdeen New Warehouse Opens in record 8 weeks France Gloves storage Aberdeen stores France New Warehouse France New Warehouse Albacete storage of chemicals 26

Best Practice Customer Impression 1 Babcock signs can be seen and Engineers wearing corporate work wear 2 Facility looks clean & tidy in ALL places 3 4 Coffee machines & rest areas are away from Helicopters Storage of paper & non Maintenance items being stored? Staverton UK Storage of paper and non maintenance equipment Alicante Spain Coffee machine on shop floor Aberdeen 27

Lean Best Practice Customer Impression Portugal Albacete Spain Staverton UK Colico Italy France Aberdeen 28 In Strict Confidence

Lessons Learned Understand your GOAL! Communicate clearly change can be challenging but rewarding Shape the culture required to deliver SUCCESS Its about the journey Enter with a willingness to try something new Listen to ideas Be part of the change Take incremental steps Understand the commitment needed to achieve The journey might not be down the path you originally take!

Lessons Learned Continuous Improvement is about learning the lessons on the way. Reality is much more like this

31

Babcock 1. Mainrotor 4. Upperdeck** 7. Nose 10. Hydraulics 2. Tailrotor 5. Landinggear 8. Maincabin 11. Electrics 3. Shaftbox* 6. Interior 9. Tailstucture Babcock Lean Roadmap Technical System (Processes) Work Planning Harmonization maintenance plan Extension of checks Sequencing Definition of maintenance areas Definition of work sequence by area AW 139 Zone 1-11 1. 7. 5. 4. 8. 6. 10. 11. 3. 2. 9. Material and Tool KANBAN KIT-building Improvement of material availability @ shopfloor Interruption Management Focus on One H/C at a time Reduction of complexity Reduction of settingup time Less maintenance events to be planned Smoother workflow and reduced cycle times Reduction of search and waiting times Reduction of internal effort and higher quality Management Infrastructure Performance KPIs Definition of targets, KPI and reporting process (cascade) Cross functional attendance (engineers, logistics, procurement, management) Performance Dialog Root cause analysis Result tracking together with employees at shopfloor Erupting Silos Continuous Improvement Ongoing identification and realization of potential Operationalization of a Plan- Do-Check-Act-cycle Transparency on performance and development Improved communication and steering through visualization Awareness and personal responsibility for improvements Employee Change Agents Lean Training Coaching & Development Development and distribution of change story Erupting Silos Change Agents acting as multiplicator Development of target qualification matrix and training plan Lean training sessions Regular feedback Coaching sessions Increasing change acceptance of employees Embedded lean philosophy in organization Soft skill development of employees 32 In Strict Confidence

1. Mainrotor 4. Upperdeck** 7. Nose 10. Hydraulics 2. Tailrotor 5. Landinggear 8. Maincabin 11. Electrics 3. Shaftbox* 6. Interior 9. Tailstucture Babcock Key Areas of Focus for Lean Technical System (Processes) 1. Work Planning Harmonization maintenance plan Advanced planning cycles Definition of maintenance areas Definition of work sequence by area 2. Sequencing 3. Material and Tool 4. Escalation Process AW 139 Zone 1-11 1. 7. 5. 4. 8. 6. 10. 11. 3. 2. 9. KANBAN KIT-building Improvement of material availability @ shop floor Focus on One H/C at a time Reduction of complexity Reduction of settingup time Less maintenance events to be planned Smoother workflow and reduced cycle times Reduction of search and waiting times Reduction of internal effort and higher quality Babcock Management Infrastructure 5. Performance KPIs Definition of targets, KPI and reporting process (cascade) Cross functional attendance (engineers, logistics, procurement, management) 6. Performance Reviews Root cause analysis Result tracking together with employees at shop floor Erupting Silos 7. Continuous Improvement Ongoing identification and realization of potential Operationalization of a Plan- Do-Check-Act-cycle Transparency on performance and development Improved communication and steering through visualization Awareness and personal responsibility for improvements Employee 8. Change Agents 9. Lean Training 10. Coaching & Development Development and distribution of change story Erupting Silos Change Agents acting as multiplicator Development of target qualification matrix and training plan Lean training sessions Regular feedback Coaching sessions Increasing change acceptance of employees Embedded lean philosophy in organization Soft skill development of employees 33