Lean in the

Executive Office

Boeing Commercial Airplane’s Progress

with Lean for Leaders

Sharon Tanner
Lean Summit, UK
November 2010

BOEING is a trademark of Boeing Management Company.

Copyright © 2009 Boeing. All rights reserved.
NASA Offered Challenges
Amid Basic Research Focus

2
 Boeing History
Problem-Solving Applied to Commercial Aviation
• Acoustics engineer
• Design team leader for
airplane derivative
• Project manager for
structural dynamics
challenges
• Process engineer
• First-line manager
• Lean leader
• Technical Fellowship
member

737-900, First Flight, August 3, 2000

3
 Early Venture into Lean What How

in 737 Engineering
Organization #1 Organization #2
• Start small – identify the
critical mass
• Start with groups that are
open to lean principles
• Start with processes that
easily adopt the lean
techniques Organization #3 Organization #4
• Demonstrate and
celebrate success

4
 737 Engineering Approach
What
Start Small and Build Momentum How

Organization #1 Organization #2

• Build Momentum
• Expand the circle –
Organization #3 Organization #4
include more groups
• Incorporate lessons
learned from first groups
• Replicate

5
 2007 Lean Focus:
Lean Product Development

WHAT WE WANTED… Product

Concept
TDS
Design Sales, After sales
Team oriented approach and CRM
 TMSS
 Concurrent work Engineering Marketing Design

 Quick problem solving TMS *

Production
 Aligned project objectives, Concept Marketing
Concept
outputs, metrics, action plans,
and reporting Production Production
Design TPS
 Effective policy deployment
 Increased value-added time Total TPS
through tightly focused
workshops and meetings TMS (Toyota Management System)
TDS (Toyota Development System)
Total TPS (Total Toyota Production System)
TMSS (Toyota Marketing & Sales System)
*Used with permission from QV System Inc. 6
PD Pilots Oobeya… independently
Time (by month)
Organizations, Work Groups

Milestones,
major tasks,
events &
activities

WHAT WE GOT was not an increase in efficiency

7
 PD Pilots
Oobeya…
Leader
and
sub-
leader

with consultants for

each
product
or
process
• Kick-off team

• Restructured Main Board

• Simple, visual format
• Few program targets
to focus team effort
• Tiered implementation,
engaging the whole team

Lessons Learned:
• 3 levels of visualization
• Human-side of TMS system
• Value of the journey approach
• Depth gained from experiential learning

8
 First LfL Implementation in BCA
Product Development Oobeya Boards, late 2007
Airplane-level &
Team-level Targets Metrics
Barashi
Leader
and
sub-
Leader

Program Management: Integrated Long-term Near-Term Risk Management:

Barashi, Targets, And Metrics Schedule, with Reflections Look-Ahead Issue Board

Team Self-Assessment of Oobeya Benefits at 6-Month Mark

• Better visibility& engagement
• Improved communication, visibility of plan, and visibility of workload
• Improved engagement of leaders with whole team
• Improved prioritization across the team
• Greater accountability
• Focused targets drove team activity, increased proactive behavior
• Oobeya emphasized metrics, provided better alignment with yearly goals, and
increased individual accountability to team effort
• Integration of cross-functional activities improved significantly
• Quicker problem-solving, by valuing issue identification and resolving issues at the
appropriate level of the organization 9
 TMS Implementation in BCA
• The BCA journey included “rebranding” TMS to Lean for Leaders (LfL)
• Our 4-year LfL history began in Product Development, expanded to
737 Engineering, then to Functional Excellence & Product Integrity
(Core Engineering), and most recently to the entire 737 Program
• Oobeya – a consistent starting point:
• Introduces disciplined, structured reporting and quick problem solving
• Clarifies targets to drive focus and enhance long-term planning
• Improves efficiency and increases collaboration
• Instills PDCA for knowledge work
• LfL tools have been applied to resolve bottlenecks within implementing
organizations
• Internal competency developed with BCA
• Lean practitioners
• Organizational leaders
• One organization has achieved the self-sustaining level
• Introduction of LfL Studio ensures continued development
10
 Phased Implementation of LfL

Project-side
Human-side
Minimum
4 4 6 4 Time (mo.)
Kick
-off

Visualization

• Oobeya
- Target Higher Perspective
Decomposition
- Metrics LfL Tools New Working
• Visual board • Improve
Culture Self
processes • New roles Sustaining
• Resolve • Accountablity
bottlenecks • Working habits LfL Studio

11
 Alignment of Functions with Programs

Functional 1 2 3 … X Programs
Organization

Single
Function
Targets specific
to executive’s
own function
Targets set by
the functional
organization Program-
specific
Targets

12
 OOBEYA: Big Project Room
An Organization’s Visualization Phase
Objective Expected Output Metrics
• Progress
Expected Output
Weight Targ
check, only Early Metrics

Good
et
•Project Background
•Project Objective
•Technical Spec
Cost
1 2 3 - 12
Green & Red
Targ

Good
•Project Organization
Capital
et

1 2 3 - 12

Action Board Weight Targ Metrics

Good
et
Con-current Schedule
1 2 3 - 12
Refinement
Projector Prototype Frames

Design
Jan Feb Mar ---
Dec Cost
for Virtual Engineering
Targ

Good
Production

Design Marketing
Service et
Review or Flammability - Deliverables (ACE ref.; % of Total)
meeting • All related members, Decomposition Area Capital
Planning, Design, 1 2 3 - 12
Issue Board: Panel

% o f T o ta l D e liv e ra b le s
Production and Sales 100% Green
& Marketing Target

Issue Board
50% Mid-year
Potential Real Finish

Executive
2-issues
per week Design
Engineering
• Identify issues
for management Open Deliverables Past Target
Complete Deliverables Past Target
0% 2009-12
0
75
2010-01
0
42
2010-02
0
10
2010-03
0
56
2010-04
20
17
2010-05
9
2
2010-06
10
2
2010-07
0
0
2010-08
0
0
2010-09
277
73
2010-10
0
0
Reflection
Board Production

Marketing
decisions
Target Open Deliverables On-time
Complete Deliverables On-time
0
88
0
4
0
0
0
32
0
12
25
20

by Month
115
19
104
6
37
0
26
110
5
0
added
Leadership Team Decomposition
Oobeya

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Date: < xx/xx/xx >
Core IC Group– < add your group name here >
MISSION:

Last Year
# OF STAFF
This Year Last Year
BUDGET
This Year VP/Exec
SIGNATURE
Responsible
Person
Team Level
Performance Results Issue Next step

Leaders Oobeya
Budget

Goal/Theme Metric Group (For all goals, regardless

(What have we accomplished ++ of assessment… for (What do we need to do next?)
(What are we trying & Target & Name to

initiated
to accomplish?) so far toward the target?) --
continuous improvement)

Goal that the org. is

Trying to achieve
Specific target
w/ measures
Resp.
Person
• Specific accomplishments
• Results of team effort
++ Even with highly success-
ful efforts, what issues did
• Forward looking actions
• Most important part of the form
negotiate
you encounter?
• Improved planning for next year
alternate
EOY 2010 scenario
Reflection starts w/
Process good plan

13
 A Comprehensive Toolset

1-1. Capital of senior management

11-2. Quality into Process
1-2. Policy deployment

12-5. Supplier management

5-5. Oobeya
(where new BCA
5-1. Pull planning organizations begin)

6-3. DR for product (PDR)

6-4. DR for components

9. Technical Know-How,
Documentation 8-1. Feedback sheet
8-2. Process & Process
8-3. Design check sheet

14
 Same Organization:
Higher Perspective Phase
Workload
Individual
Improve the Process Susan
Visibility
Visibility
Your task Your task
description 5 description 5 Your task
--
description
goes here goes here

5 / 17-21
6 6 goes here
6

Your task

TLSC description 5 Your task Your task

--
--
TLSC
Have issues and countermeasures description description
goes here
goes here goes here
6 6
160%

Flammability：
Your task
Project XX 5
Your task
5

5 / 24-28
description description
Legend goes here goes here

ITCM Supplier Design Your task Your task

description 5 description 5
goes here goes here
Printed out or
Input real document

5 / 31 – 6/4
Your task Your task
5 5
Work description
goes here
description
goes here

process Work
content

Output
Issue Your task Your task Your task
description 5 description 5 description 5
goes here goes here goes here

6 / 7 - 11
Your task Your task
5 5
Counter description
goes here
description
goes here
measure

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Selecting the RIGHT Solution Feedback Sheets for
Process & Process edback sheet
Lessons Learned
ual
-
Expected Output

European
driving taste

V is
rd
Three linkCanceled Questi
Questi
rigid axle -- X on
on &
&
Issue

a
Spring Issue
Chassis, Specification

o
Sports Double Oil Spring– 111-333
Expected
Suspension- wishbone Record

B
performa Shock reson of Shock– 234-323
alternative
nce? absorber Arm– 786-388
Strut
Specification
Heavy duty
Rubber
Off-road Air Spring– 908-763
Leaf Bush
setting Shock– 234-323
spring Arm– 786-388
Canceled
Arm
--- Specification.
Body -- X Electric Spring– 908-763
Shock– 234-323
---
Engine Arm– 786-388
Test data
Record
reson of
System, Electric alternative

Etc.
Portable
Legend
Decision
Grouping Record Canceled
Project
or Selected Question & reson of
or Solution
Turing
points
Alternative
Solution Issue alternative -- X
Boards
15
LfL Tools Applied to Bottlenecks
• Short, focused
workshops
• 5 participants,
maximum
• Full team input
added later
• Actions added
to oobeya long-
term plan

16
Lessons Learned through the Journey
• Starting with the leadership team is crucial
• Visualization provides early benefits
• Culture change follows persistent effort
• An 18 – 24 month commitment is necessary
• Hard work is required
• Unwillingness to try a new method
will dampen culture change
• Tools and methods, once tried and practiced,
can be effectively tailored to the organization’s
specific needs

17
 BCA’s Application of LfL

• Clear, focused targets to enable Lean for Leaders

strategic thinking and drive
the team’s execution
Product
• Lean applied to executives… Development Concept
Sales, After-Sales
in a learn-by-doing approach System Design and Manuals
Marketing & Sales
• Principle-based application System
Engineering BPS Marketing Design
of PDCA thinking Management
System
• Disciplined, structured processes Production
Concept Marketing
• Optimal plans created & executed Concept

• Preliminary data and metrics Production Production

shared early Design TPS
• Data & plans refined collaboratively Total Boeing Production System
• Commitments honored
Original design by QV System Inc.
• Countermeasures added to hold commitments to represent Toyota’s Management
(Commitments made = commitments kept) System (TMS)

• Deep reflections, leading to long-term planning

18