Boeing Suppliers Use Pathways® to Shape their Lean Enterprise Journey

Project Objective

Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures

• rotorcraft,
• electronic and defense systems,
• missiles, satellites,
• launch vehicles and advanced information and communication systems.

As a major service provider to NASA, Boeing operates the Space Shuttle and International Space Station. The company also provides numerous military and commercial airline support services. Boeing has customers in more than 90 countries around the world and is one of the largest U.S. exporters in terms of sales.

To empower small and mid-size suppliers to Boeing on Navy aircraft and missile subsystems and components to fully adopt a strategically defined lean enterprise approach to ongoing business growth and performance improvement. In two U.S. Navy-sponsored pilot projects, Boeing’s Supplier Lean Engagement Process was fully integrated with TechSolve’s Pathways® process into a comprehensive tool for supplier development. This project also focused attention on Navy interests in specific product areas, as follows:

• Affordability of the F/A-18 E/F Engine Fuel Display
• Affordability, quality, and on-time delivery of airframe subsystem components for the V-22 Osprey
• Lead time reduction on subsystems for the SLAM-ER and Harpoon missile programs

Approach

Boeing’s Supplier Lean Engagement Process was employed to find hidden capacity in areas such as people, physical plant & equipment and capital. Pathways® focused the company leadership team on identifying their enterprise context for Lean and on strategically redeploying found capacity into new markets, new products and more durable relationships with Original Equipment Manufacturers. Navy MANTECH has been encouraging Navy program and Navy Secretariat participation in the process with a view of expanding this approach to more Navy weapons systems programs.

Participants

Three Navy Suppliers (Frontier, Electronic Systems, Stillwater, OK; Merritt Tool Corporation, Kilgore, TX; and Raymond Engineering Operations, (a division of Kaman Aerospace Corporation), Middletown, CT participated in the Pilot.

• Frontier produces the Engine Fuel Display for the F/A ñ18 E/F, Super Hornet. They are a native
  American owned business and also produce Aircraft Avionics and Control Systems; Naval Signal
  Distribution Systems; Satellite Electronics, Test and Ground Support Systems; and are involved in
  Technology-focused Process Re-engineering.
• Merritt Tool produces metal products for the V-22, Osprey, and Joint Strike Fighter. They are a small,
  family-owned business and also produce complex machined parts and assemblies, airframe and
  landing gear subassemblies for military and commercial aircraft.
• Raymond Engineering Operations produces the Harpoon and SLAM-ER Missile fuses. They also
  specialize in Missile Safe and ARM technology, ruggedized military memory systems; aircraft
  microwave transmission cables and specialized high-precision measuring devices.

All of the Suppliers completed Pathways® training, a Lean Diagnostic, Value Stream Mapping, and a series of Kaizen events to “jump-start” their process improvement and strategic repositioning plans. During a May 2001 Capstone Event, each reported on their achievements to date. They are continuing to address additional high-impact improvement areas that have been identified.

Benefits

The integration of Boeing Supplier Lean Tools with Pathways® has demonstrated significant improvements at each of the three participating supplier companies.

• Frontier Electronics reduced order-to-delivery cycle time by 40% and Engine Fuel Display product cost
  by 48%. They also increased available capacity by 30%.
• Merritt Tool Company negotiated a 27% reduction in price for upcoming production lots on the V-22
  Program as a result of process improvements
• Raymond Engineering Operations targeted six company business areas for process improvements and
  reduced total SLAM-ER product Lead Time by <18%

All of the generated savings for the customers have been reported to the ONR, to their respective Boeing program offices, and to the NAVAIR.
Success of the first project led to a second focused SLAM-ER Supplier Value Stream Project during 2001. Suppliers participating include KEMCO Tool & Machine Co. (Fenton, MO), Karsten Precision (Phoenix, AZ), Harris GCSD (Melbourne, FL), and Goodrich ñ UPCO (Fairfield, CA and Phoenix, AZ). This pilot engages suppliers to a common weapon system, enabling collective impact of improvements made across this group on the key metrics and goals for quality, delivery and affordability for SLAM-ER program at Boeing.

This work was nominated for the 2000-2001 Defense Manufacturing Technology Achievement Award

.