Beyond Lean Operational Excelence in Mro

Beyond Lean: Achieving
Operational Excellence
in MRO
Kevin J. Duggan, President
dugganinc.com
2014 Duggan Associates. All Rights Reserved.
Kevin J. Duggan
President, Duggan Associates
Speaker, author, and educator in applying advanced

lean techniques to achieve Operational Excellence
Author of three books:
Design for Operational Excellence: A Breakthrough Strategy for

Business Growth
Creating Mixed Model Value Streams
The Office That Grows Your Business: Achieving Operational
Excellence in Your Business Process
Kevin has assisted many major corporations

worldwide including United Technologies Corporation,
FMC Technologies, Caterpillar, Singapore Airlines, IDEX
Corporation, GKN, Parker Hannifin and more.
Kevin has been published in over 30 trade and
consumer publications and has appeared on CNN and
the Fox Business Network.
Pop Quiz
How will you achieve Operational

Excellence?
A. Continuous improvement activities
B. Improve utilization of resources
C. Global sourcing
D. All of the above
E. None of the above
Pop Quiz
Continuous improvement
activities are done to:
A. Eliminate waste
B. Improve productivity
C. Increase efficiency
D. All of the above
E. None of the above
Continuous Improvement
Companies have done continuous
improvement activities for years
Pareto
Impact
Effort
Lean Thinking ...

Womack & Jones
Lean thinking is about
having each employee see
waste and eliminate it.
It is about developing a
culture of continuous
improvement.
1996
Its about flowing Value to

the customer
The Jump to Operational

Excellence
The Lean Journey
Sustain
Improve
Sustain
Improve
Sustain
Improve
Level of improvement
Mature lean company
1
5
Time in Years
10
1
5
Time in Years
10
1
5
Time in Years
10
The Jump to Operational

Excellence
Answering the Tough Questions
In Your Operation
Why do you do Continuous Improvement?
In Your Operation
How do you know where to improve next?
In Your Operation
Why do you strive to create end-to-end flow?
In Your Operation
What causes the death of flow?
In Your Operation
What would your shop floor look like if you

applied every CI tool?
In Your Operation
What would your office look like if you

applied every CI tool?
In Your Operation
What would your supply chain look like

if you applied every CI tool?
On the receiving dock?

On the suppliers shipping dock?
In production control?
In Your Operation
Where will your lean journey take you?
Nine Tough Questions

1.
Why do you do Continuous Improvement?
2.
What is the best way to do Continuous Improvement?
3.
How do you know where to improve next?
4.
Why do you strive to create flow?
5.
What causes the death of flow?
6.
What would your shop floor look like if you applied every CI tool?
7.
What would your office look like if you applied every CI tool?
8.
What would your supply chain look like if you applied every CI tool?
9.
Where do you believe your lean journey will take you?
Each and every employee can see the flow

of value to the customer, and fix that flow
before it breaks down.
SM
Kevin J. Duggan
Does your operation Start every time?
And if you could, how would you
spend your time?
The Eight Steps to Achieve

1.
2.
3.
4.
5.
6.
7.
Design a lean flow using lean guidelines.

Implement a lean flow.
Make the lean flow visual.
Create standard work for the lean flow.
Make abnormal flow visual.
Create standard work for the abnormal flow.
Teach employees to maintain and improve the flow to
the customer.
8. Free management to work on offense.
Step 1: Design Lean Value Streams
Design Lean Value Streams
Implementation
Plan
Future State Map
Current State
Map
Product
Family
Definition
x
x
x
x
x
x
x
x
x
A
x
A
x
A
x
x
A
x
x
x
A
x
A
A
A
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Ship
A
x
A
x
x
x
A
A
x
A
x
A
x
A
x
x
x
x
x
x
x
x
Inspection
x
x
x
x
x
x
x
x
x
x
x
A
x
A
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Test
x
x
x
x
x
x
Final Assembly
x
x
x
x
Paint
x
x
Sub Assembly
x
x
x
A
x
x
A
A
x
Carburize
x
A
A
x
A
A
x
x
A
A
x
A
A
Stamp
x
x
x
x
A
Polish
x
x
x
A
x
Hone
x
x
x
x
Manual Deburr
x
A
x
x
CNC Dual Spindle Lathe
Heat Treat
x
x
x
x
x
x
CNC Lathe 1
Machine Deburr
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Mill (x3)
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Drill
Grind (x2)
Part Number
767-577
458-743
187-192
199-225
281-849
981-156
623-405
606-723
689-529
554-086
345-008
418-690
583-930
565-451
480-231
212-660
799-398
238-561
542-429
623-444
Saw (x2)
Product Family X-Map
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Test
Final Assembly
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Ship
X
X
X
X
X
X
X
X
X
X
X
X
Paint
Family
Pump
Pump
Pump
Pump
Pump
Pump
Pump
Pump
Pump
Pump
Pump
Pump
Cylinder
Cylinder
Cylinder
Cylinder
Piston
Piston
Piston
Piston
Sub Assembly
Part Number
542-429
480-231
623-405
458-743
565-451
767-577
981-156
238-561
583-930
606-723
345-008
199-225
799-398
187-192
554-086
212-660
689-529
623-444
418-690
281-849
Inspection
Product Family X-Map
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
25
25
25
25
15
15
15
15
20
20
20
20
40
40
40
40
23
23
23
23
Test
Final Assembly
8
8
8
8
16
16
16
16
35
35
35
35
100
100
100
100
18
18
18
18
10
10
10
10
Ship
10
10
10
10
30
30
30
30
45
45
45
45
Paint
Family
Small Pump
Small Pump
Small Pump
Small Pump
Medium Pump
Medium Pump
Medium Pump
Medium Pump
Large Pump
Large Pump
Large Pump
Large Pump
Cylinder
Cylinder
Cylinder
Cylinder
Piston
Piston
Piston
Piston
Sub Assembly
Part Number
542-429
480-231
623-405
458-743
565-451
767-577
981-156
238-561
583-930
606-723
345-008
199-225
799-398
187-192
554-086
212-660
689-529
623-444
418-690
281-849
Inspection
Work Content Times
15
15
15
15
5
5
5
5
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
15
Work
Content
48
48
48
48
81
81
81
81
135
135
135
135
153
153
153
153
73
73
73
73
There should
be no more
than a 30%
variation in the
work content.
Product and Process Families

A product family is a group of products that go
through similar downstream processes or
assembly steps.
A process family is a group of products that go
through similar upstream shared processes.
FAMILY A
FAMILY B
FAMILY C
Upstream (Shared Resources)
Downstream (Assembly)
Current State Map

6 Week
Forecast
Michigan
Steel Co
90/60/30 day
Forecasts
Production
Control
Weekly Fax
Steel Street
Assembly
Daily
Order
MRP
500 ft coils
18,400 pcs/mo.
- 12,000 L
- 6,400 R
Tray = 20 pieces
2 Shifts
Weekly Schedule
Tues &
Thurs.
Daily Ship
Schedule
1x
Daily.
Stamping
I
Coils
5 Days
S.Weld #1
I
1
4600L
2400R
1100L
600R
Assembly #1
S.Weld #2
I
1
1600L
850R
Assembly #2
I
1
1200L
640R
I
1
C/T = 1 secs
C/T = 39 secs
C/T = 46 secs
C/T = 62 secs
C/T = 40 secs
C/O = 1 hour
C/O = 10 mins
C/O = 10 mins
C/O = 0
C/O = 0
Uptime = 85%
Uptime = 100%
Uptime = 80%
Uptime = 100%
Uptime = 100%
2 Shifts
2 Shifts
2 Shifts
2 Shifts
2 Shifts
27,600 sec.avail.
27,600 sec.avail.
27,600 sec.avail.
27,600 sec.avail.
27,600 sec.avail.
5 days
7.6 days
1 sec
1.8 days
39 secs
Learning to See Mike Rother John Shook Lean Enterprise Institute 1998
2.7 days
46 secs
2 days
62 secs
Shipping
2700L
1440R
4.5 days
40 secs
Staging
Production
Lead Time
= 23.6 days
Processing
Time = 188 s
Improving the Flow of Value
Using practical lean guidelines to

develop a Lean Future State.
Lean Guidelines
Takt time
Finished goods strategy
Continuous flow
FIFO
Pull
Schedule only one point
Interval
Pitch
Takt Time
Customer demand rate
Synchronizes the pace of production to the
pace of sales
Available Time
Takt Time =
Sold Units
=
6600 minutes/wk
= 440 min
15 pieces/wk
CURRENT DEMAND PROFILE
Units
Sold
Jan Feb March April May June
Takt Capability
May need to have preset capabilities to match
changing customer demand
Takt Capability Mode 2
Engines
Received
Jan Feb March April May June July Aug Sept..
Finished Goods Strategy
To Shipping
assembly
Customer
shipping
To Supermarket
shipping
assembly
supermarket
Customer
FIFO First In First Out

FIFO
-Sets the sequence of production
-Controls the amount of inventory
Process B
Process A
FIFO
Shared Resource Calculations

Branch Takt = 20.9 min./pc.
C/T =
25
min.
C/T =
10
min.
Small
Shaft
Large Shaft
C/T =
18
min.
Cylinder
C/T =
25
min.
C/T =
29
min.
C/T =
8 min.
Small
Impeller
Medium
Impeller
Large
Impeller
Scheduling Only One Point
customer
supermarket
flow
customer
pull
FIFO
FIFO
flow
Aerospace: Engine Overhaul

Schedule 3 points
Induction
FIFO
FIFO
FIFO
FIFO
flow
Repair
FIFO
flow
pull
7
Assembly
FIFO
flow
Establishing an interval
Weekly
Demand
Product
A
Plastic Arm
1000
Steel Arm
600
Aluminum Arm
300
Titanium Arm
100
Production capability - 400 per day
Product
Description
Mon
Tues
Wed
Plastic Arm
400
400
200
Steel Arm
Aluminum Arm
300
Titanium Arm
100
Total:
200
400
400
400
Thurs
400
400
Interval = 1 week
Fri
400
Product
Description
Mon
Tues
Wed
Thurs
Fri
Plastic Arm
200
200
200
200
200
Steel Arm
120
120
120
120
120
Aluminum Arm
60
60
60
60
60
Titanium Arm
20
20
20
20
20
Total:
400
400
400
400
400
Interval = 1 day
Pitch
Types
Standard Pitch: Qty * Takt
Inverse: When takt is long (Our demand is one aircraft
every two days)
Floating: Large mix in process times
Attributes of Pitch
Physical
Visual
Anticipated
Binary
Creating the Future State Map

6 Week
Forecast
Michigan
Steel Co
90/60/30 day
Forecasts
Production
Control
Weekly Fax
Steel Street
Assembly
Daily
Order
MRP
500 ft coils
18,400 pcs/mo
- 12,000 L
- 6,400 R
Tray = 20 pieces
2 Shifts
Weekly Schedule
Tues &
Thurs.
Daily Ship
Schedule
Quality
S.Weld #1
<168 secs
Assembly #1
S.Weld #2
Assembly #2
I
1
C/T = 1 secs
C/T = 39 secs
C/T = 46 secs
C/T = 62 secs
C/T = 40 secs
C/O = 1 hour
Weld
C/O = 10 mins
C/O = 10 mins
Changeover
C/O = 0
C/O = 0
Uptime = 85%
Uptime = 100%
Uptime = 100%
Uptime = 100%
Uptime = 80%
E.P.E=2 Weeks
2 Shifts
2 Shifts
2 Shifts
2 Shifts
27,600 sec.avail.
27,600 sec.avail.
27,600 sec.avail.
27,600 sec.avail.
27,600 sec.avail.
7.6 days
1 sec
1.8 days
39 secs
2.7 days
46 secs
2 days
62 secs
Shipping
5 days
1x
Daily.
Total work
Uptime
Stamping
Level
Load Box
Staging
Production
Lead Time
= 23.6 days
Processing
Time = 188 s
4.5 days
40 secs
The Lean Value Stream

6 Week
Forecast
Michigan
Steel Co
90/60/30 day
Forecasts
Production
Control
Daily Fax
Steel Street
Assembly
Daily
Order
500 ft coils
Daily Orders
aa
7
aa
Quality
Total work
<165 secs
Stamping
6
Shipping
Weld + Assembly
FIFO
5
1.5 days
4
Uptime
1 sec
1.5 days
2
2.0 days
Weld
Changeover
Production
Lead Time
= 5 days
Processing
Time = 166 s
165 secs
18,400 pcs/mo
- 12,000 L
- 6,400 R
Tray = 20 pieces
2 Shifts
Lean Guidelines for the Office
Takt Capability
Continuous flow Processing Cells
FIFO
Work Flow Cycles
Standard Work for Flow
Single Point initialization
Visual Indicators
Changes in Customer Demand
Processing Cell
Purchasing
Estimator
Sales
Engineer
Forms
In
Out
The Details - Lean Implementation

Checklist
Installation Review Check List
Task Number
Team Members
Kit Tray
Traced
Cut out
Photo Documented
Labeled
Kit Cart
Designed
Built
Built
AOS Review
Work Surface
Designed
Tooling
U/R Hardware review
Specials Tooling Identified/documented
U/R Hardware list electronic documentation
Tooling Identified
Sequence review
Color Coded
In for update
Tooling Presentation
Hardware Trays
PPE
Filled
Identified
Labled
Plaque created
The Details - Balancing the Work

Assembly Lean Design
Day 1
Event Kickoff meeting
- Review Vision / Objectives
Day 1 Agenda
Day 2
Re-cap of Day 1 Results/Progress
Review Day 2 Agenda
Day 2 Agenda
Review VSM Concepts / Lean Principles
Continue / complete Op Sheet Review
Define/Calculate Takt Time
Begin Installation / Mechanic Balance Charts

- Target Hours vs. Actual Hours discussion
Create Aircraft Zones to assist with

Install sequence determination (Team)
Determine Install Sequence for 1st Position:
consistent increments of work determination
Begin Point-of Use Design by Assembly
- Installs to be shifted to Major assembly
- Pull kits out for each install
- Installs moved back from other Units
- Create lists for required Tools / Hardware
- Installs moved forward to other Units
& Consumables by install / install group
Break up into teams for physical design (Team)

- Balance work content against Takt time based upon
Develop Tool / Material Presentation options
- Identify Team leaders and members
- Sketch options for material/tool presentation
- Divide up installations by skill
- Work with support reps to prototype options

- Test in use / revise as needed
Perform brief Op Sheet review (Team)
- Document EH&S issues throughout
- Identify/document major problems by AOS (red pen)

- Missing components/tools/op steps wrong, etc.
- Determine consistent time increments by Op Step
Day 1 Wrap-up (Team)
Day 2 Wrap-up (Team)
The Eight Steps to Achieve

1.
2.
3.
4.
5.
6.
7.
Design a lean flow using lean guidelines.

Implement a lean flow.
Make the lean flow visual.
Create standard work for the lean flow.
Make abnormal flow visual.
Create standard work for the abnormal flow.
Teach employees to maintain and improve the
flow to the customer.
8. Free management to work on offense.
1
5
Time in Years
10
Questions?

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Beyond Lean: Achieving

Speaker, author, and educator in applying advanced

2014 Duggan Associates. All Rights Reserved.

Design for Operational Excellence: A Breakthrough Strategy for

Kevin has assisted many major corporations

2014 Duggan Associates. All Rights Reserved.

How will you achieve Operational

2014 Duggan Associates. All Rights Reserved.

2014 Duggan Associates. All Rights Reserved.

improvement activities for years

2014 Duggan Associates. All Rights Reserved.

2014 Duggan Associates. All Rights Reserved.

Lean Thinking ...

2014 Duggan Associates. All Rights Reserved.

Its about flowing Value to

2014 Duggan Associates. All Rights Reserved.

The Jump to Operational

The Lean Journey

2014 Duggan Associates. All Rights Reserved.

2014 Duggan Associates. All Rights Reserved.

Mature lean company

2014 Duggan Associates. All Rights Reserved.

2014 Duggan Associates. All Rights Reserved.

The Jump to Operational

2014 Duggan Associates. All Rights Reserved.

Answering the Tough Questions

2014 Duggan Associates. All Rights Reserved.

Why do you do Continuous Improvement?

2014 Duggan Associates. All Rights Reserved.

How do you know where to improve next?

2014 Duggan Associates. All Rights Reserved.

Why do you strive to create end-to-end flow?

2014 Duggan Associates. All Rights Reserved.

What causes the death of flow?

2014 Duggan Associates. All Rights Reserved.

What would your shop floor look like if you

2014 Duggan Associates. All Rights Reserved.

What would your office look like if you

What would your supply chain look like

2014 Duggan Associates. All Rights Reserved.

On the receiving dock?

2014 Duggan Associates. All Rights Reserved.

Where will your lean journey take you?

2014 Duggan Associates. All Rights Reserved.

Nine Tough Questions

Why do you do Continuous Improvement?

What is the best way to do Continuous Improvement?

How do you know where to improve next?

Why do you strive to create flow?

What causes the death of flow?

Where do you believe your lean journey will take you?

Each and every employee can see the flow

2014 Duggan Associates. All Rights Reserved.

2014 Duggan Associates. All Rights Reserved.

Does your operation Start every time?

And if you could, how would you

2014 Duggan Associates. All Rights Reserved.

spend your time?

2014 Duggan Associates. All Rights Reserved.

The Eight Steps to Achieve

Design a lean flow using lean guidelines.

2014 Duggan Associates. All Rights Reserved.

Step 1: Design Lean Value Streams

Design Lean Value Streams