Agile Hardware Product Development

AGILE HARDWARE PRODUCT DEVELOPMENT LEAN PRODUCT DEVELOPMENT +

“He Who Dares to Disrupt, Wins More” Property of The Strategy + Innovation Group

This presentation (all slides with a grey border on the bottom) was delivered to the Project Management Institute (PMI.com) as a Continuing Education Credit (1 Hour) on 8/29/2017. It is a part of a series of presentations on the strategy + the tactics of Innovation and how they work inside of a company to achieve competitive advantage. The black bordered slides are from an applied example from the Aviation, Aerospace and Defense industry.

Richard Platt August 29th, 2017 Copyright © | The Strategy + Innovation Group

SOME OF THE FEEDBACK RECEIVED FROM THE PMI.ORG PRESENTATION

Richard Platt August 29th, 2017 Copyright © | The Strategy + Innovation Group

AUTHOR SNR. MANAGING PARTNER | DIRECTOR OF OPERATIONS Richard (Rich) Platt, previously worked as a Program Manager and Senior Instructor for Systematic Innovation Methods (TRIZ) at the Intel Corporation, as a part of a global innovation initiative training 850+ engineers, technology development, quality, test, R&D, Intel Fellows, engineering managers and scientists from the US, Europe, Asia and the Middle East in systematic innovation methods, delivering $212.5M in ROI. Working at Intel for 10 years in Manufacturing, Operations, R&D, Technology Development, and IT, Rich was awarded the Intel Manufacturing Excellence Award – the highest award that one can receive at Intel. While at Intel he created two US patents, and multiple defensive publications, achieving certifications as a TRIZ Expert (Level3/5), DFSS / LSS Greenbelt and was the last Intel “Innovation Master” ®. Since 2006 he’s led the Strategy + Innovation Group LLC (S+IG) in deep diving research into continuous improvement methods and then recombining them with TRIZ and Systematic Innovation methods in new and unique ways. He has helped assist OEMs and SMEs build innovative core competencies with his special emphasis on Advanced Complex Problem solving, IP Management Strategies, Innovation Management frameworks, and creating and leading customized Systematic Innovation Training for the Fortune 500. He has successfully applied systematic innovation methods, tools and heuristics across multiple industries: Semiconductor equipment and manufacturing processes | Capital Equipment development | High-Tech | Electronics | micro-Drilling | Printed Circuit Board Manufacturing and Assembly | Electronics Component Manufacturing | Aviation | Aerospace | Military | Defense. Rich is the founder, lead researcher, competitive intelligence analyst and senior strategist for the Strategy + Innovation Group; his motto he shares with engineers and managers “He Who Dares to Disrupt, Wins More than the Other Guy” Rich holds a BS in Industrial and Manufacturing Engineering, (a sub discipline within Systems Engineering), and is still deciding on whether to get a PhD in Engineering Management of Technology or Behavioral Microeconomics. He has been practicing the art of Bonsai and Japanese Gardening for +25 years.

Property of the Strategy + Innovation Group

SUMMARY: APPLYING A TIME BASED COMPETITIVE STRATEGY Aviation, Aerospace and Defense MRO (Maint. Repair & Overhaul) shop performance: • 6 product lines (electro-mechanical aircraft generators, dimmers, motor controllers, switches, custom designed aviation, aerospace and defense systems) • +400 different products Summary: Implemented an improved WIP management system, and SelfManaged Team concept for the MRO shop. Creating an additional revenue capture ROI valued at $8.16M NPV (10 year return period) adding labor capacity of 1.2 headcount. Considered an industry best practice, using Systematic Innovation Methods, by Meggitt management 5

Copyright © | The Strategy + Innovation Group

LEAN MAINTENANCE AND NEW PRODUCT INTRODUCTION PROCESSES VITAL AREAS WHERE WASTE OCCURS IN A MAINT. SHOP AND DURING THE NPI/NPD PROCESS 1.

Unproductive activities – eliminate NVA processes

2.

Unnecessary “travel time” - retrieving parts, tools, information, knowledge and/or equipment

3.

Poor inventory management or utilization of inventory

4.

Rework – repeat repairs, repeated tests, repeated calibrations, etc…

5.

Delays and wasted time – waiting for parts, people or m/c’s

6.

Underutilization of technician or engineer skill sets

7.

Poor data collection, poor root cause and corrective action

8.

Poor WIP management of the actual work being processed by the team

9.

Incorrect analysis of the problem and where the problems actually exist (not recognizing that it is a system to be managed)

Confidential | The Strategy + Innovation Group

OECO (CSS-MRO) Challenge 2016-2017

Project Duration: 15 months Start June 2016 – End Sept 2017

Problem Statement Background: OECO MRO Background: OECO-MRO is a rapid reactionary Job Shop, whatever hits our dock, we attempt to repair / overhaul and return to the customer as fast as possible and at a high quality level. Generically speaking, speed, volume and quality, are the strategies for all MRO shops to be competitive.

Analogously, like Jiffy lube, but for Generators, Alternators and other electronics on aircraft

Images courtesy of Jiffy Lube

Confidential | The Strategy + Innovation Group

PROBLEM STATEMENT/S: UNCOORDINATED WORKFLOW 1. No real time model of OECO MRO WIP – can’t fix what you can’t see. •

Cannot drive accountability for work order resolution/output w/out visibility

•

Cannot rapidly status where all work is in the shop without manually locating it

2. Excessive overtime and fatigue (human factors issue) of CSR personnel •

Over-burdened with task completion and not enough time to complete given the volume of individual units to be processed. Overtime is caused by confusing urgent with important, or ineffective resourcing for task completion

3. Kaizen activities benefit have been random in their effectiveness when they are not emphasized on specific WIP bottlenecks as in-situ issues 4. Customer contracted TAT (Turn Around Time) not being met •

Some units (not under contract) are languishing for ~1 year w/out visibility to their resolution

5. Need to increase revenue •

Average # of units throughput / day needs to increase

Confidential | The Strategy + Innovation Group

STARTING POINT: WHEN DOING DYNAMIC COMPLEX PROBLEM SOLVING Must have a way to model the process as it is performing “real time”, before effective Problem Solving Can Begin We need to increase volume ! ! We need to increase the quality of our output ! ! We are missing key customer deliverables ! ! AND We need this across multiple product lines !?!?!

Confidential | The Strategy + Innovation Group

WHAT A VISUAL DISPLAY PROVIDES: COMMUNICATION TOOL FOR WIP PERFORMANCE •

Communicates “Real Time” information about WIP

performance of individual units and by product line •

Shows where the problems / bottlenecks are at in process

•

Makes performance standards visible

•

Enables easier work, knowing the priorities

•

Provides visibility to achievement, or lack thereof

•

Creates a shared knowledge base

Confidential | The Strategy + Innovation Group

STARTING POINT: A REAL TIME FUNCTIONAL MODEL OF THE PROCESS – VISUAL DISPLAY OF THE WIP ▪ Coventry MRO had implemented a T-Board / T-Card system a few years ago We just need to customize this for our MRO shop process steps, and then we can see the WIP, then we can start to address all of the volume, quality and customer deliverable issues

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IMPLEMENTATION PAIN – WE SAW HOW BAD WE WERE

Getting Contracted TAT units out was the biggest issue on Dimmers. Rolling bottleneck - Once Eval is addressed, “Quoting” and the “Technician” functions become bottlenecks Confidential | The Strategy + Innovation Group

IMPLEMENTATION PAIN – WE SAW HOW BAD WE WERE

Overloaded at Incoming Eval stages (insufficient technician resources) to accommodate inflow during increased customer returns. Once Eval is addressed, the technician function becomes the (rolling) bottleneck Confidential | The Strategy + Innovation Group

IMPLEMENTATION PAIN – WE SAW HOW BAD WE WERE

Found “Hidden” Bottlenecks – the back and forth between Elect Eval and Repair functions was a bigger issue for the Misc. product line – previously didn’t see, to ask the question, why is it taking so long?! Confidential | The Strategy + Innovation Group

Improve speed, volume and quality of services! Analyze process requirements, needs and expectations

Work orders must be completed with high quality and in the shortest time

Analyze customer complaints Slow service…. It takes too long to serve customers … Documentation not correct…

How to improve efficiency and ideality

Team should consider Inventive Principles (above) to prompt ideas for better service. Images courtesy of TRIZ x QMS

* Inventive Principles come from “TRIZ” Russian acronym for the Theory of Inventive Problem Solving Confidential | The Strategy + Innovation Group

BRAINSTORMING SOLUTIONS ON STEROIDS We have to improve ideality of service ∑ Fuseful I=

We could move to a self-managed teams, and that would help address many of these issues

∑ Fharmful + ∑ Costs

Eliminating waiting units will increase revenue and decrease wait times for servicing product Self service would help eliminate waiting units.

Confidential | The Strategy + Innovation Group

INVENTIVE PRINCIPLES AND IDEAS GENERATED

▪ Principle #5 “Merging”

Principle #6 “Universality”

A.Bring closer together (or merge) identical or similar parts to perform parallel operations a. Combine product quality with service quality to enhance customer satisfaction

A. Make an object or system perform multiple functions, eliminate the need for other parts a.

b. Cell based manufacturing c. 5S technique of continuous improvement

B.Make operations contiguous or parallel; bring them together in time

b.

Design a management system to be compliant to different management standards (i.e. FAA compliance and MPS) Multi-skilled workforce

B. Use standardized features a.

Standardized forms for key customer, product or work order information

a. Concurrent engineering b. Multi-media presentation

c. Eli Goldratt’s Theory of Constraints d. Institute parallel processing for cycle time reduction

Confidential | The Strategy + Innovation Group

Images courtesy of TRIZ x QMS

INVENTIVE PRINCIPLES AND IDEAS GENERATED

Principle #15 “Dynamics” A. Allow (or design) the characteristics of an object, process, system or external environment to change to be optimal or find an optimal operating condition a. Address variation as a fact of life in external and internal environments b. Adapt to dynamic customer wants, needs and expectations

B. Divide an object or system into parts capable of movement relative to each other a. Work teams oriented to achieve the same goal, but work at different rates on different objectives

C. If an object, process or system is rigid or inflexible, make it movable or adaptive

Principle #16 “Partial or Excessive Actions” A. If a 100% of an object is hard to achieve using a given solution method then by using slightly less or more of the same method, the problem may be easier to solve a. b. c.

Vital few categories of a Pareto diagram Tolerance: permitted range of deviation from standard Acceptable Quality Level (AQL): % of defectives that is considered satisfactory as a process average

a. Flexible staff, use temp workers b. Trend, run, control charts displaying dynamic picture of process behavior

Confidential | The Strategy + Innovation Group

Images courtesy of TRIZ x QMS

INVENTIVE PRINCIPLES AND IDEAS GENERATED

Principle #20 “Continuity of Useful Action” A. Carry on working continuously, make all parts of an object or system work at full load all the time

Principle #25 “Self-service” A.

a. b. c. d. e.

a. ‘Constancy of Purpose’ (W.E. Deming) b. Adapt to dynamic customer wants, needs and expectations c. Kaizen: continuous improvement – all the time d. Written procedures and specs as a perpetual coordination device e. Traceability system

B. Eliminate all idle or intermittent actions or work

Make an object or system serve itself by performing auxiliary helpful functions

B.

Self-competing Self-directed work teams Self-assessment Self-inspection Use computer vision for product inspection

Use waste (or lost) resources, energy or substances a.

a. Streamline both internal and external setups to reduce total setup time (SMED)

b.

b. Preventive and Predictive maintenance

c.

Rehire retired workers for jobs where their experience is needed Use scrapped or dummy parts for experiments Re-cycle materials Images courtesy of TRIZ x QMS

Confidential | The Strategy + Innovation Group

INVENTIVE PRINCIPLES AND IDEAS GENERATED

Principle #26 “Copying”

Principle #34 “Discarding and recovering”

A. Instead of an unavailable, expensive, fragile object or system, use simpler and inexpensive copies

A.

a. Benchmark competitors

Make portions of an object or system that have fulfilled their functions go away (discard) or modify them directly during operation a.

b. Benchmark similar projects in order to identify improvement opportunities

b.

c. Design and process modeling c. d. e.

B. Replace an object, process or system with optical copies a. Use an electronic database b. Numerical simulation modeling, etc… c. Video-conferencing instead of physical travel

C. If optical copies are used, move to IR or UV a. Use simulations, games, and case studies instead of lecturestyle training

B.

Eliminate duplicated redundant and non-value added activities (lean mfg., cycle time reduction) Minimize / eliminate, where possible the 7 wastes (muda) of Lean Using contract labor for capacity balance Temporary team members on short term projects Use computer vision for product inspection

Conversely , restore the consumable parts of an object or system directly in operation a.

b. c.

Periodically re-energize continuous improvement initiatives Introduce periodical retraining Rework of non-conforming product Images courtesy of TRIZ x QMS

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CULTURAL “HOW WE DO THINGS” CHANGE: MULTI-FACTOR (SOLUTIONS) TO ADDRESS ISSUES Inventive Principles Suggested: 1. Self-Managed Teams – based on technical competency (improves speed, volume, quality, and increased technician ownership of product flow) 2. X-training of personnel to flex across product lines supporting where opportunities / challenges exist. Two “Fire Teams” of x-trained personnel to flex; 1 for multiple product lines and 1 for some of the administrative functions of Receiving and CSR tasks 3. PC’s for All technicians, enabling effective documentation access, real time visibility to shop work orders, research and communication 4. Rework Instructions for all the majority of products MRO sees (shortens time, improves quality, enhances customer retention, and standardizes general work) Confidential | The Strategy + Innovation Group

CULTURAL “HOW WE DO THINGS” CHANGE: MULTI-FACTOR (SOLUTIONS) TO ADDRESS ISSUES Inventive Principles Suggested: 5. Theory of Constraint’s Approach to Managing the WIP – real time management of the bottlenecks, and opportunities to increase volume/flow. We can now see where all of units are what is going on with them. 6. Continuous Improvement of processes and documentation is now more effective and visible where we can see value and impact 7. External Temp personnel can be specifically focused into areas where and when we need them

8. Co-location of materials close to personnel and Hardware kits for frequently & commonly used parts across similar products, streamlining parts acquisition and replenishment System problems, like the flow of a shop, require multiple solutions working interdependently, for desired outcomes – Multi Factorial Solution set Confidential | The Strategy + Innovation Group

KEY ACTIVITIES: “Right Person (expertise), at the Right Time on the Right Thing” • “Real Time” visibility to WIP for leads and technicians to move the WIP • WIP rule set implemented, refined and utilized • Flexed “Fire Team” as needed with x-trained personnel • Dedicated, committed technical leads to own and enable WIP movement, spread across all the product lines • Moved technician from the “repairs” function to “pre-eval”, and “test” functions, back-filled his position with “Fire Team” personnel Implemented a shotgun approach to productivity improvements for technician productivity (not everything we tried worked) • H/W boxes for commonly used parts, co-located commonly used parts • Rework instructions • Natural learning curve of familiarity (to achieve expertise) with a particular product and tasks has an impact on productivity and quality of WIP

Confidential | The Strategy + Innovation Group

WIP RULE SET: VISUAL WORK GUIDELINES FOR T BOARD / T CARD SYSTEM MAKE THE FLOW VISUAL AND THE STANDARD •

When is flow working and when is flow breaking down?

•

Visual systems are for production associates first and foremost ▪

What do I work on next?

▪

Am I on schedule? Are my teammates on schedule?

•

Apply “visitor test” – are systems self-explaining?

•

Associates create a “self-healing” flow where interruptions are fixed without management Confidential | The Strategy + Innovation Group

WIP Rule Set: Manages the Flow Daily MRO Product Line Leadership Questions “Managing the Flow” 1.

What units are we delivering today?

2.

What units are we delivering tomorrow?

3.

What is the revenue of what we’ve got coming out?

(Where’s the value?) 4.

What are our opportunities to get more out?

(What more can we do?) 5.

What do we have in process that is at risk?

(obstacles in quality, personnel, test, materials, documentation, other processes, etc.…) Confidential | The Strategy + Innovation Group

WIP Rule Set: 10* and 14 Day Contracted TAT Customers Dimmers: (Boeing PSAA – customers who take advantage of this**)  Emirate Airlines

ALL of these Customer Work Orders MUST have an Alarm set when they are received in.

 Southwest Airlines  Virgin Australia  Japan Airlines

Set the ALARM to execute 8 (10 day TAT) and 12 days (14 day TAT) respectively, just change the t-card color to BLACK

 Thai Airways

 Singapore Airlines  Copa Airlines PMA  UTAS – Trent 900 [10 Day TAT]  Pratt & Whitney Canada – PMA  Safran (Snecma) – PMA  MTU – PMA [10 Day TAT] Motor Controllers

 Hamilton Sundstrand (Warranty and regular repairs) [24 Day TAT]

All Other T- cards, should have an ALARM installed for 30 days – to turn RED, not to flash Confidential | The Strategy + Innovation Group

WIP Rule Set: T Card colors show status or importance of a work order Color

Category/Importance

Description

White

Uncategorized

Default setting, until someone categorizes it

Lt. Blue

Warranty

W/o is under warranty ($0)

Lt. Green

Category 1

1-5 hours of labor and/or >50% margin

Yellow

Category 2

6-10 hours of labor and/or 25 – 40% margin

Dk. Blue

Category 3

10-15 hours of labor and/or