Mike Prior, MassMEP - Knowledge Exchange: Tactical Session

RaytheonRaytheon Knowledge Knowledge

Exchange SummitExchange Summit

Tactical Session

Tactical SessionTactical Session

• How to Identify a ProjectHow to Identify a Project• Getting StartedGetting Started• Funding a ProjectFunding a Project• Lessons LearnedLessons Learned

Traditional ApproachTraditional Approach

• Customer demand Customer demand

• Sliding margins Sliding margins

• Loss of Business Loss of Business

• Increased competitionIncreased competition

•Crisis Crisis Management Management -- reactive vs proactivereactive vs proactive

Profit or LossProfit or Loss

Time

$ o

r T

ime

Cost to Build

Selling Price and Lead Time

LOSS

Keeping Up andBusiness As Usual

Profits

Continuous ImprovementProfits with:

-Lean Mfg Program-Reduced Cycle Times-Velocity through Shop-Improved Quality-Six Sigma Program

Defining Lean Defining Lean

““A A systematicsystematic approach to identifying approach to identifying and eliminating waste (non-value-and eliminating waste (non-value-

added activities) through added activities) through

continuous improvementcontinuous improvement

by flowing the product at the pull of the by flowing the product at the pull of the customer customer

in pursuit of perfection.”in pursuit of perfection.”

The MEP Lean NetworkThe MEP Lean Network

Traditional Lean ProgressionTraditional Lean Progression

Tools

Traditional Lean ProgressionTraditional Lean Progression

Tools

Processes

Traditional Lean ProgressionTraditional Lean Progression

Tools

Processes

Programs

Traditional Lean ProgressionTraditional Lean Progression

Tools

Processes

Programs

Objective

Traditional Lean ProgressionTraditional Lean Progression

Tools

Processes

Programs

Objective

Continuous

Improvement

Proven Lean ProgressionProven Lean Progression

Tools

Processes

Programs

Objective

Continuous

Improvement

Proven Lean ProgressionProven Lean Progression

Tools

Processes

Programs

Objective

Continuous

Improvement

Getting Started -Basic Elements Getting Started -Basic Elements of a Lean Implementation of a Lean Implementation

• Assess - Diagnose - Benchmark Assess - Diagnose - Benchmark current system / approachcurrent system / approach

• DevelopDevelop & Implement& Implement

– Goal / Objective Goal / Objective

– Strategy Strategy

– Plan Plan • Program? NOProgram? NO

• Culture change? YESCulture change? YES

Getting Started - Basic Elements Getting Started - Basic Elements of a Lean Implementation of a Lean Implementation

• Educate & TrainEducate & Train – Workforce Development to ensure Lean

Transformation– Employee relations

– “ “ There is nothing training cannot do. There is nothing training cannot do. Nothing is above its reach. It can turn Nothing is above its reach. It can turn bad morals to good; it can destroy bad bad morals to good; it can destroy bad principles and create good ones; it can principles and create good ones; it can lift men to angelship” --- Mark Twainlift men to angelship” --- Mark Twain

Getting Started - Basic Elements Getting Started - Basic Elements of a Lean Implementationof a Lean Implementation

• Assess and utilize all available Assess and utilize all available resourcesresources – Internal & ExternalInternal & External

• Implement with all hands on deckImplement with all hands on deck

• Measure Progress Measure Progress – Goal / Objective / Strategy / Plan Goal / Objective / Strategy / Plan – Make it a way of work life Make it a way of work life

Getting Started - Basic Elements of Getting Started - Basic Elements of a Lean Implementationa Lean Implementation

• SustainSustain the Lean Process through the Lean Process through Continual Improvement Continual Improvement – Consistently measure and reevaluate Consistently measure and reevaluate – Employee involvement through Employee involvement through

recognition recognition – Talk-the-Talk vs Walk-the-WalkTalk-the-Talk vs Walk-the-Walk

Typical Results of LeanTypical Results of Lean

• 30% productivity increase30% productivity increase

• 90% work-in-process reduction90% work-in-process reduction

• 50% space utilization reduction50% space utilization reduction

• 85% quality improvement85% quality improvement

• 90% lead time reduction90% lead time reduction

““One of the most noteworthy One of the most noteworthy accomplishments in keeping the price accomplishments in keeping the price of Ford products low is the of Ford products low is the gradualgradual shortening of the production cycle. shortening of the production cycle. The longer an article is in the process The longer an article is in the process of manufacture and the more it is of manufacture and the more it is moved about, the greater is its moved about, the greater is its ultimate cost.” ultimate cost.”

Henry Ford, 1926Henry Ford, 1926

Funding a Project Funding a Project

• Mass. Workforce Training FundMass. Workforce Training Fund– Standard Grant ( $250,000)Standard Grant ( $250,000)– Express Grant ( $15,000)Express Grant ( $15,000)

• N.E. Trade Adjustment Assistance N.E. Trade Adjustment Assistance CenterCenter

• MassMEP Innovation Program MassMEP Innovation Program • Company = Company = INVESTMENTINVESTMENT

– Min. return of 4 to 1Min. return of 4 to 1– Repositioning with your customers & your Repositioning with your customers & your

competitioncompetition– Investment in your futureInvestment in your future

Commitment to ChangeCommitment to Change

““It isn't easy” It isn't easy” Determination Determination Commitment Commitment

= = RewardsRewards

Lessons LearnedLessons Learned

• Raytheon Raytheon – Col. Rodney H.C. Schmidt / DCMA Col. Rodney H.C. Schmidt / DCMA

• Stonebridge Corp.Stonebridge Corp.– Kerstin Forrester / President Kerstin Forrester / President

• Henschel L-3 Communications Inc.Henschel L-3 Communications Inc.– Don Roussinos / President Don Roussinos / President

• Chase Leather Products Inc.Chase Leather Products Inc.– Larry Walsh / President & CEOLarry Walsh / President & CEO