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ANNALISA WEIGEL: So if I can
have your attention please,

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we are going to break from our
simulation for just a moment

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to talk about our next module,
called Lean Engineering Basics.

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There are two key
takeaways that we'd

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like you to get
from this module,

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and they're worth
reiterating and I

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will say them several
times during the course

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of the module.

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The first thing we
want you to internalize

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is that lean thinking applies to
engineering just as much as it

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applies to factory processes.

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And two, that engineering
plays a critical role

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in creating value
in lean enterprise.

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And our presentation
today is broken down

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along those two lines.

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And I'm going to start talking
about why lean thinking applies

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to our engineering processes.

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Here are our learning
objectives for this module.

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They are five-fold.

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So at the end, you
should be able to explain

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how our lean principles and
practices apply to engineering.

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You should be able
to explain why

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customer value and this
upfront part of engineering

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and the conceptual design are
critical to product success.

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You should be able to describe
how lean engineering enables

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lean throughout the whole
enterprise and the product

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lifecycle.

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Fourth, you should be able
to describe some tools we

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use for lean engineering.

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And lastly, you should be
able to apply lean engineering

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techniques to redesign
your simulated airplane.

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So we'll spend the first half
of this module talking concepts.

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And we'll spend the
second half of this module

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in an active learning
exercise, trying

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to apply some of the
things we learned

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to the redesign of your
simulated airplane.

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A few days ago,
we had a question

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about wastes in
engineering compared

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to wastes in the factory.

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And this chart is actually
the answer to that question.

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We did say we'd
defer it a few days,

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and now we're
going to tackle it.

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So here are five
lean thinking steps

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we talked about in
the first day, what

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they mean for the manufacturing
process, and then lastly,

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how we translate those
over into engineering.

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Now, one of the
challenges we've had

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in applying lean
to engineering has

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been a reaction from the
engineering group that says,

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well, you know, you can
apply lean in the factory,

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but engineering
is just different.

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You can't really apply it here.

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And yes, of course, engineering
is different than the factory

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operations.

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But that doesn't mean that
these lean principles-- which

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are very universal,
and you've seen

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applied across the enterprise
from office processes

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to manufacturing--
why they can't

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apply to engineering as well.

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The difference, mainly, from
manufacturing to engineering,

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is a thing that's flowing
through the system.

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So in a manufacturing
context, you

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have the raw materials that
are flowing through the system,

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and being processed and changed.

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In engineering, it's
really information

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that is flowing through
the value stream-- that

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is being processed and changed.

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Your design emerges,
uncertainties are reduced,

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expectations are
clarified, and so on.

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These are all examples
of the information

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that's flowing through your
engineering value stream.

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So for manufacturing, the
addition of value at any step

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is pretty visible.

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We told you that you
have to look and see

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if a thing is physically
changed to add value.

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And you can usually see that as
your material gets processed.

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This is a little bit harder
to see in engineering.

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When you change
part of your design

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or when you do an
analysis, it's not

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quite as easy to see that
you've change the information.

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But you usually have.

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The second contrast in that
manufacturing, your goal

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is very defined.

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When you start
manufacturing, you

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have a very specific set
of specs and drawings.

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And at the end, you
expect to come out

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with exactly the product that
you wanted to when you started

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the manufacturing process.

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Now this is different
than engineering,

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because in engineering
our goal is emergent.

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We have some sense that
there are requirements,

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and we have maybe some notion
of how we might meet those.

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But the whole process of
engineering and design

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is to look at
different alternatives

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and to then come up with a set
of specifications for product

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that you can build.

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So your goal is really
emergent in that sense.

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Now, we go down to
the value stream.

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You can do a value stream
map for information

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just like you can
for material flow.

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The one difference is what's
actually flowing through that.

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Now, if we move on to our
concept of flow, which

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is trying to make
everything seamlessly go,

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in manufacturing, iterations
are usually considered waste.

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They're indicative of
rework in the process,

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or a process or design that
wasn't spec'd right up front.

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But in engineering,
as you all probably

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recognize, mostly being
engineering students,

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iterations are OK.

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We plan to do these.

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And that's a key word there
is that planned iterations are

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good.

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We recognize that
going through analysis,

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and looking at problems,
and looking them

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again is important.

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The key there is that you
want your planned iterations

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to be as efficient as you can.

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The fourth concept of pull,
which in a manufacturing sense

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is driven by tag time, for the
engineering processes, that's

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usually driven by
your enterprise

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needs for new products
to be developed.

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And then, the concept
of perfection,

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which in a manufacturing
context means

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processing without repeating
errors, how does that

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translate into engineering?

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We would think of it as
engineering processes

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that enable your whole
enterprise improvement.

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And I'm going to expand on
that concept in the second half

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of the lecture.

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Here, we're revisiting our seven
wastes that we identified--

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over-production,
inventory, transportation,

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unnecessary movement,
waiting, defective outputs,

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and over-processing.

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So I'd like you
all to think back

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to your engineering experience,
either from classes or maybe

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from summer jobs.

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And I'd like to hear some
examples, in an engineering

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context, of any of
these seven wastes.

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Go ahead, please.

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AUDIENCE: So yesterday, at
the New Balance factory,

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we were on the right
side of the factory.

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We were talking about how
the upper part and the lower

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part of the shoe was actually
manufactured in China.

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But then, they shifted back over
here just to essentially glue

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the top and bottom
parts together so

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that they can say, assembled
in the United States.

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And our group asked if wasn't
that a waste in transportation,

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the cost, and the time,
and all that kind of stuff

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just so they could say,
assembled in the United States.

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And they want-- they felt that
it was worth it that they could

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just say, you know--

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that they put the US
logo on it in turn

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for having that
transportation waste.

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ANNALISA WEIGEL: Interesting,
OK, so that to me

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has some elements of
both manufacturing

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and the engineering
design, and perhaps

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some business strategy to it.

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Can we try to think of
just isolating examples

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to the engineering process.

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Think about conceptual design.

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And let's talk
about some examples.

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Go ahead.

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AUDIENCE: Well, at my
internship last summer,

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they were talking about
how a lot of older people

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had really great skills
in specific areas.

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And they were worried that
the older engineers weren't

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communicating those skills
to the younger engineers.

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And so when they left,
there would be waste,

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because people would
have to relearn

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that specific engineering skill.

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So they created a
Boeing Wikipedia,

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and were encouraging
engineers to type up articles

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to try to keep that information
that other people needed.

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ANNALISA WEIGEL: That's a
very interesting example.

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Let me ask the class--

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these are the seven
waste categories.

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What do you-- which
category do you

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feel that example might fit in?

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Inventory-- having more material
or information than you need?

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Any other thoughts?

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OK, Earl, you have
an important--

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AUDIENCE: Just that
New Balance, we

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heard an eighth
waste category, which

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was, for their environment,
unused associates creativity,

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which was sort of a
loss of human-- a waste

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of human resources.

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Would this fall
in that category?

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ANNALISA WEIGEL: Yeah,
to me it falls in eight.

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I might also say it perhaps
falls in one, if I thought

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that I had to produce
two engineers,

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and the information
wasn't officially being

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passed between the first
one who got the knowledge.

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And then, I had to go
through the exact same steps

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to get the second engineer
that same knowledge

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without taking any advantages.

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But this is one of the
interesting examples

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of translating
largely manufacturing

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a material-based instances
of waste into engineering, is

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that sometimes is a
very clear translation.

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And sometimes it's
a little harder

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to figure out where it is.

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But I think we can all agree
that example that Emily gave,

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it's feels like
there's something

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that's being wasted there
in an engineering sense.

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A lot of experience--

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and engineers' knowledge
is very experiential--

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is being gathered,
and then sort of just

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left to go away and not
be utilized by the company

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anymore.

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Let's take another example.

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AUDIENCE: I was just
wondering, could that

00:09:17.980 --> 00:09:19.688
be thought of as
over-processing as well,

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because you need
to kind of do more

00:09:23.910 --> 00:09:26.223
from scratch training
of the [INAUDIBLE]??

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ANNALISA WEIGEL: Yeah, I could
take that argument, definitely.

00:09:32.160 --> 00:09:33.768
Can you-- go ahead.

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AUDIENCE: I guess I
may be missing a point.

00:09:35.560 --> 00:09:38.700
So I just want to
clarify, how does it

00:09:38.700 --> 00:09:40.860
help me to solve the
problem by classifying it

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in one of these seven ways?

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For example, if I know what
the problem is I'm throwing out

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talent, I'm throwing
out knowledge

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that I've got to then
retrain, how can I use these--

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sort of this classification--
to help me solve it?

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ANNALISA WEIGEL: Sure,
what you're doing

00:09:55.380 --> 00:09:58.680
is you are standing on the
shoulders of giants of people

00:09:58.680 --> 00:10:02.310
who spent decades of
years, and probably

00:10:02.310 --> 00:10:04.840
millions of hours of brainpower,
trying to figure this out.

00:10:04.840 --> 00:10:07.170
So let's start with
this is our analogy.

00:10:07.170 --> 00:10:09.960
And then we'll probably create
unique categories of waste

00:10:09.960 --> 00:10:11.280
that apply to engineering.

00:10:11.280 --> 00:10:13.260
But this is a great
start, where in absence

00:10:13.260 --> 00:10:14.760
of some classification
system, you

00:10:14.760 --> 00:10:17.580
may spend a lot of time trying
to figure out what that is.

00:10:17.580 --> 00:10:20.100
So it's really just a
creative tool for us

00:10:20.100 --> 00:10:22.518
to help understand the
parallels to engineering.

00:10:22.518 --> 00:10:24.060
AUDIENCE: I think
it's more of, like,

00:10:24.060 --> 00:10:26.300
finding waste you use these.

00:10:26.300 --> 00:10:28.358
If you like looking
at your organization,

00:10:28.358 --> 00:10:30.400
you would look through
this and be, like, oh, OK,

00:10:30.400 --> 00:10:32.430
I see this, and this,
and this, and it

00:10:32.430 --> 00:10:35.800
helps you find new waste
instead of just analyzing waste

00:10:35.800 --> 00:10:38.190
that you probably [INAUDIBLE].

00:10:38.190 --> 00:10:40.228
ANNALISA WEIGEL:
Excellent, thank you.

00:10:40.228 --> 00:10:41.770
Let's have another
example of a waste

00:10:41.770 --> 00:10:43.460
that's different than
the ones we talked about.

00:10:43.460 --> 00:10:44.010
[INAUDIBLE]?

00:10:44.010 --> 00:10:45.593
AUDIENCE: Mine would
be either waiting

00:10:45.593 --> 00:10:47.160
or an unnecessary movement.

00:10:47.160 --> 00:10:49.800
I was working with GE
Nuclear in California.

00:10:49.800 --> 00:10:52.050
And every time we were
doing a purchasing order

00:10:52.050 --> 00:10:54.990
or test specifications
that had to be approved,

00:10:54.990 --> 00:10:57.810
it had to be approved in
Georgia, which is a three hour

00:10:57.810 --> 00:10:58.497
time difference.

00:10:58.497 --> 00:11:01.080
Which means that either you have
to come to the office at 6:00

00:11:01.080 --> 00:11:02.872
in the morning if you're
wanting your thing

00:11:02.872 --> 00:11:05.010
to be processed right
away when they open,

00:11:05.010 --> 00:11:07.885
or you have to stay up
later at night to finish it.

00:11:07.885 --> 00:11:09.510
So everybody was very
upset about that.

00:11:09.510 --> 00:11:11.760
We were losing six
hours in a day of work.

00:11:11.760 --> 00:11:15.250
And the tests were being
done in Massachusetts.

00:11:15.250 --> 00:11:17.550
So the engineers had
to fly over there,

00:11:17.550 --> 00:11:19.320
spent some time running
through the tests

00:11:19.320 --> 00:11:20.670
and get the results back.

00:11:20.670 --> 00:11:23.190
And it was a waste
of time for everyone,

00:11:23.190 --> 00:11:26.158
and energy, and other things.

00:11:26.158 --> 00:11:28.200
ANNALISA WEIGEL: Great,
great, and a good example

00:11:28.200 --> 00:11:30.870
of waiting-- waiting is a
very common kind of waste,

00:11:30.870 --> 00:11:35.460
if you think about information
and design that's happening.

00:11:35.460 --> 00:11:37.500
How about other examples?

00:11:37.500 --> 00:11:40.970
AUDIENCE: I work here at MIT,
and the first week, I had

00:11:40.970 --> 00:11:43.550
to buy something for a project.

00:11:43.550 --> 00:11:46.090
And no one how to buy anything.

00:11:46.090 --> 00:11:47.775
Like, my advisor didn't know.

00:11:47.775 --> 00:11:49.900
Eventually, they found out
that the woman in charge

00:11:49.900 --> 00:11:52.650
had just moved, and no
one had replaced her.

00:11:52.650 --> 00:11:57.395
So I guess it was waiting,
or a defective output,

00:11:57.395 --> 00:11:58.353
or something like that.

00:11:58.353 --> 00:11:59.936
ANNALISA WEIGEL:
There's several kinds

00:11:59.936 --> 00:12:03.940
of problems with that
particular process, yeah.

00:12:03.940 --> 00:12:06.580
Unnecessary movement also
happens quite frequently

00:12:06.580 --> 00:12:11.000
in an engineering sense,
as well as transportation.

00:12:11.000 --> 00:12:14.170
So if you think about how many
times you move information,

00:12:14.170 --> 00:12:17.020
change information from the
inputs of one analysis program

00:12:17.020 --> 00:12:20.300
into a format that's compatible
with another analysis program--

00:12:20.300 --> 00:12:23.140
think about going back and forth
here on campus between MATLAB

00:12:23.140 --> 00:12:24.850
and Excel happens frequently.

00:12:24.850 --> 00:12:27.190
Now, if you go out into
a very complex industry

00:12:27.190 --> 00:12:29.660
like aerospace, the tools
are far more complex.

00:12:29.660 --> 00:12:31.660
And translating the inputs
of one of the outputs

00:12:31.660 --> 00:12:34.370
to another, and so
on, is a large deal.

00:12:34.370 --> 00:12:36.380
They're not necessarily
made to be compatible.

00:12:36.380 --> 00:12:38.260
And then, we heard
[INAUDIBLE] talk

00:12:38.260 --> 00:12:39.970
about a lot of
unnecessary movements

00:12:39.970 --> 00:12:42.040
that may happen-- moving
people to various places

00:12:42.040 --> 00:12:45.340
to test things to get analysis
results for your design.

00:12:45.340 --> 00:12:47.230
Because sometimes
these complex products

00:12:47.230 --> 00:12:49.240
are so large and
expensive, we can't

00:12:49.240 --> 00:12:51.220
afford to have testing
facilities locally

00:12:51.220 --> 00:12:54.250
to try to minimize
that kind of waste.

00:12:54.250 --> 00:12:56.080
All right, we're
starting to get a sense.

00:12:56.080 --> 00:12:57.580
And we'll talk
about them further

00:12:57.580 --> 00:13:00.280
as we go through the
simulation game and the rest

00:13:00.280 --> 00:13:04.680
of our module today.

00:13:04.680 --> 00:13:07.560
I wanted to point
out some data that we

00:13:07.560 --> 00:13:11.460
have about the efficiency
of engineering processes.

00:13:11.460 --> 00:13:14.850
If you have any doubt that
there's waste in engineering,

00:13:14.850 --> 00:13:16.680
this should help
convince you that there

00:13:16.680 --> 00:13:19.180
is at least by some
informed people.

00:13:19.180 --> 00:13:21.090
So this is a measure of
effort that's wasted.

00:13:21.090 --> 00:13:23.640
40% of the product
development effort

00:13:23.640 --> 00:13:25.380
was classified as pure waste.

00:13:25.380 --> 00:13:28.320
About 30% is necessary waste.

00:13:28.320 --> 00:13:31.620
In another survey, we had
30% of product development

00:13:31.620 --> 00:13:35.790
time that was charged to
just set up and waiting.

00:13:35.790 --> 00:13:38.070
You can easily see why those
don't add a lot of value

00:13:38.070 --> 00:13:40.290
to the customer.

00:13:40.290 --> 00:13:44.130
And not only is effort
wasted, but time is wasted.

00:13:44.130 --> 00:13:47.220
62% of tasks, on average,
were idle at any given

00:13:47.220 --> 00:13:50.280
time in a survey of
particular companies.

00:13:50.280 --> 00:13:53.700
And 50% to 90% of
task time is found

00:13:53.700 --> 00:13:56.340
to be idle in various
Kaizen-type events that

00:13:56.340 --> 00:13:58.350
are run in an
engineering context

00:13:58.350 --> 00:14:00.210
at different kinds of companies.

00:14:00.210 --> 00:14:02.760
So clearly, lots of
room for improvement

00:14:02.760 --> 00:14:06.120
here in the process
of engineering.

00:14:06.120 --> 00:14:09.960
There's been a good body of
research done here at MIT.

00:14:09.960 --> 00:14:13.740
And they produce the Product
Development Value Stream

00:14:13.740 --> 00:14:14.580
Mapping manual.

00:14:14.580 --> 00:14:18.460
And this is authored by Hugh,
who's in the back of the room.

00:14:18.460 --> 00:14:21.330
The same basic techniques apply
as you might do value stream

00:14:21.330 --> 00:14:25.440
mapping in the factory context
to the engineering context,

00:14:25.440 --> 00:14:27.300
except that the flows
are information rather

00:14:27.300 --> 00:14:29.790
than physical, and
your value added

00:14:29.790 --> 00:14:32.100
steps help to transform
this knowledge

00:14:32.100 --> 00:14:35.280
or to reduce the uncertainty,
which is a primary role of why

00:14:35.280 --> 00:14:37.500
we do analysis in engineering.

00:14:37.500 --> 00:14:40.063
And if you're interested, you
can consult this publication.

00:14:40.063 --> 00:14:41.730
There's a lot more
material here than we

00:14:41.730 --> 00:14:44.970
can cover in this module.

00:14:44.970 --> 00:14:47.040
But let me give you
some real-life examples

00:14:47.040 --> 00:14:50.160
of organizations that have
applied product development

00:14:50.160 --> 00:14:53.130
value stream mapping
and had some successes.

00:14:53.130 --> 00:14:55.770
So this is an
example on the F16.

00:14:55.770 --> 00:14:57.540
And they had some
particular problems

00:14:57.540 --> 00:15:01.002
with what they call their
build-to-Package process.

00:15:01.002 --> 00:15:02.460
So if, for some
reason, they needed

00:15:02.460 --> 00:15:04.830
to make changes to
the build-to-packages,

00:15:04.830 --> 00:15:08.160
like you all have in
front of you for your SIM,

00:15:08.160 --> 00:15:09.930
there was a big,
long process that

00:15:09.930 --> 00:15:13.620
actually had to happen
from I need a change to,

00:15:13.620 --> 00:15:15.960
OK, I can actually
make a change.

00:15:15.960 --> 00:15:17.670
It numbered a lot of steps.

00:15:17.670 --> 00:15:19.740
You can kind of
count them all here.

00:15:19.740 --> 00:15:21.638
It goes here, and then
it goes down there,

00:15:21.638 --> 00:15:23.430
and then it goes all
the way through there,

00:15:23.430 --> 00:15:27.880
and all the way through there
before we get out to a change.

00:15:27.880 --> 00:15:31.690
So applying some of the tools
of value stream mapping,

00:15:31.690 --> 00:15:36.160
the F16 build-to-package process
was reduced down to something

00:15:36.160 --> 00:15:37.520
like this.

00:15:37.520 --> 00:15:39.220
So now, we had
single-piece flow being

00:15:39.220 --> 00:15:40.990
able to go through the system.

00:15:40.990 --> 00:15:44.050
We had an allowance for
parallel processing of tasks,

00:15:44.050 --> 00:15:47.470
rather than single
processing of tasks.

00:15:47.470 --> 00:15:49.180
Concurrent
engineering principles

00:15:49.180 --> 00:15:51.400
were brought in to help
achieve this kind of leanness

00:15:51.400 --> 00:15:53.650
in process, as
well as co-location

00:15:53.650 --> 00:15:56.440
of all the various different
units between design,

00:15:56.440 --> 00:15:59.980
and manufacturing,
and quality that

00:15:59.980 --> 00:16:01.990
needed to be co-located
to accomplish this.

00:16:05.322 --> 00:16:06.780
And if you wanted
some illustration

00:16:06.780 --> 00:16:08.740
of the results that
can be achieved,

00:16:08.740 --> 00:16:11.260
we have that here in this slide.

00:16:11.260 --> 00:16:13.320
So this is actually
a picture here

00:16:13.320 --> 00:16:15.810
of the build-to-package
support center

00:16:15.810 --> 00:16:19.140
that resulted from this value
stream mapping activity.

00:16:19.140 --> 00:16:21.520
It's a facility that's
down on the shop floor.

00:16:21.520 --> 00:16:26.550
So it's very close to the things
that they're trying to change.

00:16:26.550 --> 00:16:29.880
They created these kinds of
improvements-- in cycle time,

00:16:29.880 --> 00:16:33.450
from getting a change request
in to having implemented that,

00:16:33.450 --> 00:16:37.260
75% reduction of cycle time.

00:16:37.260 --> 00:16:42.480
Process steps were reduced
by 40%, handoffs by 75%,

00:16:42.480 --> 00:16:45.330
and travel distance of the
information, and paperwork,

00:16:45.330 --> 00:16:49.270
and so on was reduced by 90%.

00:16:49.270 --> 00:16:52.260
These are very, very
real kinds of savings

00:16:52.260 --> 00:16:54.780
that can be achieved in
the engineering process

00:16:54.780 --> 00:16:59.680
by the application of value
stream mapping techniques.

00:16:59.680 --> 00:17:02.350
Now, we're going to move
on to the second concept

00:17:02.350 --> 00:17:03.760
that we'd like you to take away.

00:17:03.760 --> 00:17:06.970
And that is that engineering
plays a critical role

00:17:06.970 --> 00:17:09.099
in creating value
in the enterprise.

00:17:09.099 --> 00:17:11.740
So we've just seen how we can
apply some of our lean thinking

00:17:11.740 --> 00:17:13.210
techniques--
including value stream

00:17:13.210 --> 00:17:16.908
mapping, the concepts of waste,
and so on-- to the process.

00:17:16.908 --> 00:17:18.700
But then, there's a
really important reason

00:17:18.700 --> 00:17:20.920
why we want to lean out
the engineering process.

00:17:20.920 --> 00:17:22.930
Because it's a key
enabler for lean

00:17:22.930 --> 00:17:27.040
in the rest of the enterprise.

00:17:27.040 --> 00:17:30.440
The reason for that is
represented here on this chart.

00:17:30.440 --> 00:17:33.190
So we have on the
y-axis, essentially,

00:17:33.190 --> 00:17:35.230
the percentage of
your lifecycle budget

00:17:35.230 --> 00:17:36.910
that you might
attribute to these.

00:17:36.910 --> 00:17:39.490
And here on the x-axis,
we have lifecycle phases,

00:17:39.490 --> 00:17:40.900
starting from
concept development

00:17:40.900 --> 00:17:43.165
through detailed design,
production use, and disposal.

00:17:46.990 --> 00:17:48.740
Here, we show various curves.

00:17:48.740 --> 00:17:51.850
So as you go through the
engineering design process,

00:17:51.850 --> 00:17:54.160
you as engineers
are making choices.

00:17:54.160 --> 00:17:56.200
You decide to use a
particular material.

00:17:56.200 --> 00:17:57.790
You decide on a
particular design.

00:17:57.790 --> 00:18:00.070
That has manufacturing
implications, performance

00:18:00.070 --> 00:18:02.240
implications, and so on.

00:18:02.240 --> 00:18:04.450
And as you make
those choices, which

00:18:04.450 --> 00:18:06.400
are right here in
conceptual design,

00:18:06.400 --> 00:18:10.330
you are determining
a priori the cost

00:18:10.330 --> 00:18:13.780
of that system by your choices.

00:18:13.780 --> 00:18:17.350
At the same time as we
move through this process,

00:18:17.350 --> 00:18:20.830
the leverage that management
has to make any changes

00:18:20.830 --> 00:18:22.960
starts to go down
dramatically, because a lot

00:18:22.960 --> 00:18:27.280
of the knowledge and the cost
is being committed there.

00:18:27.280 --> 00:18:29.050
But as cost is being
committed early,

00:18:29.050 --> 00:18:31.330
it's really not being
incurred by your organization

00:18:31.330 --> 00:18:32.290
for a while.

00:18:32.290 --> 00:18:33.970
Because you're not
buying materials,

00:18:33.970 --> 00:18:37.000
you're not bending metal, you're
not into the expensive parts.

00:18:37.000 --> 00:18:38.440
That starts to happen over here.

00:18:38.440 --> 00:18:41.110
But yet, you've already
decided it way back here

00:18:41.110 --> 00:18:42.880
in conceptual design.

00:18:42.880 --> 00:18:45.190
And a similar curve is
shown for knowledge.

00:18:45.190 --> 00:18:47.110
This is what we know
about the design

00:18:47.110 --> 00:18:49.660
of the product, the performance,
the quality, the use,

00:18:49.660 --> 00:18:51.490
the reliability, and so on.

00:18:51.490 --> 00:18:53.140
As you start out
early in a design,

00:18:53.140 --> 00:18:54.820
you just don't know
a lot about it.

00:18:54.820 --> 00:18:57.790
It's a process of discovery,
and analysis, and refinement.

00:18:57.790 --> 00:19:00.250
And that knowledge grows
as you go further down

00:19:00.250 --> 00:19:02.290
in the lifecycle phase.

00:19:02.290 --> 00:19:07.030
But it doesn't grow nearly as
fast as you're committing cost

00:19:07.030 --> 00:19:07.550
to that.

00:19:07.550 --> 00:19:09.280
So there's a lot
of uncertainties

00:19:09.280 --> 00:19:11.920
that exist in the process.

00:19:11.920 --> 00:19:13.600
But it's this extreme
leverage that we

00:19:13.600 --> 00:19:15.700
have up here in
concept development

00:19:15.700 --> 00:19:19.683
to determine all of the
properties of our system

00:19:19.683 --> 00:19:21.100
that's so fundamentally
important.

00:19:21.100 --> 00:19:22.660
And this is why
lean thinking needs

00:19:22.660 --> 00:19:23.860
to start with engineering.

00:19:23.860 --> 00:19:26.290
Because the engineers are
making those critical choices

00:19:26.290 --> 00:19:29.290
that are going to determine
cost, and performance,

00:19:29.290 --> 00:19:33.280
and reliability, and safety, and
usability, and maintainability,

00:19:33.280 --> 00:19:33.970
and so on.

00:19:36.680 --> 00:19:39.560
So lean engineering is really
about doing the right thing

00:19:39.560 --> 00:19:40.130
right.

00:19:40.130 --> 00:19:41.750
It's got three components to it.

00:19:41.750 --> 00:19:44.130
You first have to create
the right products.

00:19:44.130 --> 00:19:46.280
You have to do that with
effective enterprise

00:19:46.280 --> 00:19:48.110
and lifecycle integration.

00:19:48.110 --> 00:19:50.960
And you have to use efficient
engineering processes.

00:19:50.960 --> 00:19:53.220
And we're going to take
each of those in turn.

00:19:53.220 --> 00:19:56.300
So creating the right product
means focusing on the customer.

00:19:56.300 --> 00:19:59.120
And to do that, you have to
shift some resources up front

00:19:59.120 --> 00:20:02.000
to the conceptual design
process so that you can spend

00:20:02.000 --> 00:20:04.910
enough time to really
make the right choices

00:20:04.910 --> 00:20:07.820
about the product.

00:20:07.820 --> 00:20:09.995
Effective enterprise and
lifecycle integration

00:20:09.995 --> 00:20:11.870
means that we should
use our lean engineering

00:20:11.870 --> 00:20:14.780
tools so we can create
value throughout the product

00:20:14.780 --> 00:20:19.300
lifecycle and enterprise, and
being efficient while we do so,

00:20:19.300 --> 00:20:21.800
so apply the lean thinking
to eliminate waste

00:20:21.800 --> 00:20:25.260
and improve the
processes of engineering.

00:20:25.260 --> 00:20:26.760
So starting out
with our first point

00:20:26.760 --> 00:20:29.070
about creating the
right products,

00:20:29.070 --> 00:20:30.750
how do you know what's right?

00:20:30.750 --> 00:20:33.360
The customer is the one
who specifies that for you.

00:20:33.360 --> 00:20:35.610
And generally, when they're
thinking about value,

00:20:35.610 --> 00:20:37.950
they have got four
large elements in mind

00:20:37.950 --> 00:20:39.610
that sum up to be their value.

00:20:39.610 --> 00:20:41.880
There are some elements of
features, and performance,

00:20:41.880 --> 00:20:42.900
and quality.

00:20:42.900 --> 00:20:45.300
There's some element of
schedule and when I can get it.

00:20:45.300 --> 00:20:48.310
There's an element of cost
that they have to pay for that.

00:20:48.310 --> 00:20:51.090
And then there's some
element of price--

00:20:51.090 --> 00:20:55.180
of what it costs
you to make that.

00:20:55.180 --> 00:20:57.300
And if you think to any
purchase that you make,

00:20:57.300 --> 00:21:00.180
you are either consciously
or unconsciously balancing

00:21:00.180 --> 00:21:02.970
all these parts
that equate to value

00:21:02.970 --> 00:21:04.650
of a product in your mind.

00:21:04.650 --> 00:21:06.960
So you may want a
computer that has

00:21:06.960 --> 00:21:09.480
a certain kind of
performance and price to you.

00:21:09.480 --> 00:21:11.387
But if you can't get
it for four weeks,

00:21:11.387 --> 00:21:13.470
you may decide that that's
not really a good value

00:21:13.470 --> 00:21:14.490
proposition for you.

00:21:14.490 --> 00:21:17.580
And you may choose to set some
other combination of attributes

00:21:17.580 --> 00:21:19.260
for yourself that
really defines value.

00:21:23.410 --> 00:21:26.635
Engineering drives the
cost of all the products.

00:21:29.820 --> 00:21:32.220
So 80% of the product's
cost is determined

00:21:32.220 --> 00:21:35.430
through the engineering design
when these choices are made.

00:21:35.430 --> 00:21:37.860
So the number of
parts that you have,

00:21:37.860 --> 00:21:40.530
every part costs some money.

00:21:40.530 --> 00:21:42.330
Parts have to be inventoried.

00:21:42.330 --> 00:21:43.920
Parts have to be designed.

00:21:43.920 --> 00:21:47.460
Parts have to be transported,
they have to be maintained,

00:21:47.460 --> 00:21:49.660
they have to be quality
controlled, and so on.

00:21:49.660 --> 00:21:53.280
And each of those actions incurs
a particular cost, as well as

00:21:53.280 --> 00:21:54.210
tolerances on parts.

00:21:54.210 --> 00:21:56.460
I'm sure some of you who
have gone through engineering

00:21:56.460 --> 00:21:59.610
classes have talked about how
strict tolerances can really

00:21:59.610 --> 00:22:01.740
increase the cost of
producing a product.

00:22:01.740 --> 00:22:03.420
Whereas if you relax
tolerances, you

00:22:03.420 --> 00:22:06.780
may get to a slightly
lower cost on your parts.

00:22:06.780 --> 00:22:09.630
You can think of assembly
techniques-- different assembly

00:22:09.630 --> 00:22:11.920
techniques cost different
amounts of money,

00:22:11.920 --> 00:22:14.670
some are much more complex
and complicates-- as well as

00:22:14.670 --> 00:22:17.550
processes to treat
raw materials,

00:22:17.550 --> 00:22:20.160
and the tooling approach
that you might use, again,

00:22:20.160 --> 00:22:22.920
that ranges from cheaper
to more expensive.

00:22:22.920 --> 00:22:26.843
Materials-- if you want to
build something out of titanium,

00:22:26.843 --> 00:22:28.260
it's going to cost
you differently

00:22:28.260 --> 00:22:31.680
than to build it out
of other materials.

00:22:31.680 --> 00:22:34.500
Avionics and software,
design complexity,

00:22:34.500 --> 00:22:37.320
whether or not you're reusing
previous design efforts--

00:22:37.320 --> 00:22:40.230
these all contribute
to the product's cost.

00:22:40.230 --> 00:22:42.790
And these are choices that
the engineer is making.

00:22:42.790 --> 00:22:45.240
So this is, yet again,
another illustration

00:22:45.240 --> 00:22:47.670
of why it's so important to
try to make the right choices,

00:22:47.670 --> 00:22:51.660
spend the amount of time you
need to do that up front.

00:22:51.660 --> 00:22:55.560
This is a reflection back
to our suppliers talk.

00:22:55.560 --> 00:22:56.790
Don't forget suppliers.

00:22:56.790 --> 00:22:59.430
They're a critical
component of your design

00:22:59.430 --> 00:23:02.820
and ensuring that you have
the right cost on your system.

00:23:02.820 --> 00:23:05.897
Typically, 60% to 80% of
value is added by suppliers.

00:23:05.897 --> 00:23:07.980
So when you think about
the engineering processes,

00:23:07.980 --> 00:23:10.770
don't neglect them.

00:23:10.770 --> 00:23:14.850
One of the best practices
for achieving the engineering

00:23:14.850 --> 00:23:18.180
result that you want is to use
integrated product and process

00:23:18.180 --> 00:23:20.310
development.

00:23:20.310 --> 00:23:23.400
It's a concept that utilizes
a couple of elements-- first,

00:23:23.400 --> 00:23:25.200
the principles of
systems engineering

00:23:25.200 --> 00:23:28.410
to translate your customer needs
into a product architecture

00:23:28.410 --> 00:23:33.043
and a set of specifications;
using integrated product teams

00:23:33.043 --> 00:23:34.710
so that you can bring
knowledge from all

00:23:34.710 --> 00:23:38.700
the different lifecycle parts
into your engineering activity.

00:23:38.700 --> 00:23:40.650
Remember, we talked
about the cost committed

00:23:40.650 --> 00:23:43.920
early on in the engineering
activity and the uncertainty

00:23:43.920 --> 00:23:45.030
of knowledge.

00:23:45.030 --> 00:23:48.480
One way to increase the
amount of knowledge you have

00:23:48.480 --> 00:23:51.120
is to bring people in from all
the different lifecycle phases.

00:23:51.120 --> 00:23:53.280
So bring someone in
from manufacturing.

00:23:53.280 --> 00:23:56.880
Bring someone in from the
customer community who uses it.

00:23:56.880 --> 00:23:59.590
Bring somebody in from
all the different parts

00:23:59.590 --> 00:24:04.770
so that you can increase your
knowledge as early as you can.

00:24:04.770 --> 00:24:08.080
Third, the IPPD approach
utilizes modern engineering

00:24:08.080 --> 00:24:08.580
tools.

00:24:08.580 --> 00:24:10.455
And we're going to give
some examples of that

00:24:10.455 --> 00:24:11.560
in a few slides.

00:24:11.560 --> 00:24:13.560
And it all can't really
function unless we've

00:24:13.560 --> 00:24:15.150
got the right kind
of human resources

00:24:15.150 --> 00:24:17.370
on board, which may
require a certain skill set

00:24:17.370 --> 00:24:19.150
or certain set of people.

00:24:19.150 --> 00:24:21.870
So it's not just that
you have capable tools,

00:24:21.870 --> 00:24:23.970
you need capable
processes, and you

00:24:23.970 --> 00:24:27.880
need capable people to actually
execute this successfully.

00:24:27.880 --> 00:24:31.590
So here's a list of some of
our tools of lean engineering.

00:24:31.590 --> 00:24:34.200
And I'm also going to show a
couple of detailed examples

00:24:34.200 --> 00:24:37.090
in the next couple of slides.

00:24:37.090 --> 00:24:40.650
So we have digital
tools that increase

00:24:40.650 --> 00:24:45.000
the timing of handoffs, decrease
waiting, increase quality.

00:24:45.000 --> 00:24:47.730
There are production simulation
tools that you can use,

00:24:47.730 --> 00:24:49.230
which are much
cheaper on a computer

00:24:49.230 --> 00:24:51.647
than actually having to go
out, and build a physical part,

00:24:51.647 --> 00:24:53.490
and try to play
around with that.

00:24:53.490 --> 00:24:55.560
You can think about
common parts and specs

00:24:55.560 --> 00:24:59.700
in reusing design, the design
for manufacturing assembly,

00:24:59.700 --> 00:25:03.150
which we're going to talk about
in the context of our planes,

00:25:03.150 --> 00:25:03.840
and so on.

00:25:03.840 --> 00:25:08.220
All of these are very useful
tools for lean engineering.

00:25:08.220 --> 00:25:11.100
And to show you that these are
being used out in industry,

00:25:11.100 --> 00:25:14.670
this is an example from Boeing.

00:25:14.670 --> 00:25:16.650
This shows you how
they brought together

00:25:16.650 --> 00:25:19.680
various different
digital tools that went

00:25:19.680 --> 00:25:21.420
into producing the hardware.

00:25:21.420 --> 00:25:25.290
So they were able
to use a CAD program

00:25:25.290 --> 00:25:27.390
to do different layouts
and three-dimensional

00:25:27.390 --> 00:25:28.410
visualizations.

00:25:28.410 --> 00:25:31.590
They had a parametric
solids modeling tool.

00:25:31.590 --> 00:25:35.100
They had some assembly models
that were done in 3D CAD.

00:25:35.100 --> 00:25:38.370
They electronically release
their build-to-packages.

00:25:38.370 --> 00:25:42.420
They used a computer to simulate
the manufacturing and assembly.

00:25:42.420 --> 00:25:44.880
And all this was done
with far less cost

00:25:44.880 --> 00:25:48.150
than trying to go and
build your hardware,

00:25:48.150 --> 00:25:51.945
and do all of your playing
around in the physical space.

00:25:54.520 --> 00:25:57.550
So I'll give you an example
of the production simulation.

00:25:57.550 --> 00:26:00.265
I need to break a moment
and go into my movie.

00:26:05.770 --> 00:26:08.200
Let's move on to another tool
of lean engineering, that's

00:26:08.200 --> 00:26:12.570
common parts and
reusing designs.

00:26:12.570 --> 00:26:16.610
So if you're using
common parts, and you're

00:26:16.610 --> 00:26:19.890
reducing the total
part count as a result,

00:26:19.890 --> 00:26:22.550
you're reducing costs, because
every part that you don't have

00:26:22.550 --> 00:26:27.020
to design, you don't have to
manufacture, and QC, and tag,

00:26:27.020 --> 00:26:28.820
and everything.

00:26:28.820 --> 00:26:30.740
These are some
great illustrations

00:26:30.740 --> 00:26:34.010
of trying to use what
we call mirror parts.

00:26:34.010 --> 00:26:36.282
Do you need to have parts
designed differently

00:26:36.282 --> 00:26:38.240
for the right hand side
and the left hand side?

00:26:38.240 --> 00:26:40.520
Could you reconceive
your design such

00:26:40.520 --> 00:26:42.593
that they used a common part?

00:26:42.593 --> 00:26:44.885
And this would then save on
the number of unique parts.

00:26:47.530 --> 00:26:51.550
Also have to realize that
common parts can increase

00:26:51.550 --> 00:26:54.490
the quality of your design--

00:26:54.490 --> 00:26:56.170
less points of
potential failure,

00:26:56.170 --> 00:26:59.800
less points of
uncertainty, fewer moving

00:26:59.800 --> 00:27:03.610
parts in your manufacturing
process, less room--

00:27:03.610 --> 00:27:05.200
I'm sorry, fewer
mistakes to be made

00:27:05.200 --> 00:27:06.600
in mistaking one
part for another

00:27:06.600 --> 00:27:10.290
if I've got all common
parts and so on.

00:27:10.290 --> 00:27:12.890
So let's talk about
part count reduction.

00:27:12.890 --> 00:27:14.900
This is largely a goal
of what's called design

00:27:14.900 --> 00:27:16.730
for manufacturing and assembly.

00:27:16.730 --> 00:27:18.230
So I'd like some
input from you guys

00:27:18.230 --> 00:27:20.765
on why we would
reduce part count?

00:27:20.765 --> 00:27:23.390
We've covered a lot already, so
you can kind of shout them out.

00:27:26.660 --> 00:27:27.840
AUDIENCE: Faster assembly.

00:27:27.840 --> 00:27:30.080
ANNALISA WEIGEL:
Faster assembly.

00:27:30.080 --> 00:27:32.850
What else?

00:27:32.850 --> 00:27:34.640
AUDIENCE: Easier
for your supplier.

00:27:34.640 --> 00:27:36.348
ANNALISA WEIGEL: Easier
for the supplier.

00:27:36.348 --> 00:27:37.568
Thank you, Mr. supplier.

00:27:37.568 --> 00:27:38.610
Thank you, that was good.

00:27:38.610 --> 00:27:38.960
Yes?

00:27:38.960 --> 00:27:40.010
AUDIENCE: Less variation--

00:27:40.010 --> 00:27:41.343
ANNALISA WEIGEL: Less variation,

00:27:41.343 --> 00:27:43.512
AUDIENCE: --to get
tolerance build-ups?

00:27:43.512 --> 00:27:44.720
ANNALISA WEIGEL: Yes, indeed.

00:27:44.720 --> 00:27:48.853
Does everybody catch that, the
concept of tolerance build-ups?

00:27:48.853 --> 00:27:50.270
If you're reducing
the part count,

00:27:50.270 --> 00:27:52.480
each part has a specific
tolerance to it.

00:27:52.480 --> 00:27:54.140
The more parts you
label together,

00:27:54.140 --> 00:27:55.910
kind of that-- the
bigger that uncertainty

00:27:55.910 --> 00:27:57.615
in potential tolerance grows.

00:27:57.615 --> 00:28:00.230
If fewer parts, that comes down.

00:28:00.230 --> 00:28:00.768
What else?

00:28:00.768 --> 00:28:01.310
That is good.

00:28:01.310 --> 00:28:03.690
AUDIENCE: Less chance
of delivering mistakes?

00:28:03.690 --> 00:28:05.690
ANNALISA WEIGEL: Fewer
chances to make mistakes,

00:28:05.690 --> 00:28:07.760
because every part I handle
has some probability that I'm

00:28:07.760 --> 00:28:09.860
going to make a mistake with
it, and I have a few of those.

00:28:09.860 --> 00:28:10.820
Yeah, what else?

00:28:14.096 --> 00:28:17.260
AUDIENCE: In many designs,
increasing part count

00:28:17.260 --> 00:28:18.656
requires increased lubrication.

00:28:18.656 --> 00:28:21.870
And oftentimes,
joints and things--

00:28:21.870 --> 00:28:23.575
the more parts
you have, the more

00:28:23.575 --> 00:28:27.782
need for lubrication,
more work, [INAUDIBLE]..

00:28:27.782 --> 00:28:30.050
ANNALISA WEIGEL: Sure, so
operational considerations

00:28:30.050 --> 00:28:31.580
that you might want
to think about.

00:28:31.580 --> 00:28:33.650
And what are others?

00:28:33.650 --> 00:28:35.540
[INAUDIBLE]?

00:28:35.540 --> 00:28:37.570
AUDIENCE: Simplifying
the supply chain?

00:28:37.570 --> 00:28:39.830
ANNALISA WEIGEL: Simplifying
the supply chain, yep.

00:28:39.830 --> 00:28:40.340
Others?

00:28:40.340 --> 00:28:40.893
Go ahead.

00:28:40.893 --> 00:28:42.310
AUDIENCE: Depends
on situation, it

00:28:42.310 --> 00:28:45.530
could be cheaper [INAUDIBLE].

00:28:45.530 --> 00:28:48.028
ANNALISA WEIGEL: Right,
yes, it reduces cost.

00:28:48.028 --> 00:28:49.820
That's what your boss
really wants to hear.

00:28:49.820 --> 00:28:52.520
It's going to reduce some
cost for the enterprise.

00:28:52.520 --> 00:28:53.990
We've covered
almost all of these.

00:28:53.990 --> 00:28:56.660
They were-- excellent
discussion, and some others

00:28:56.660 --> 00:29:00.255
that we brought up that
aren't quite on this list.

00:29:00.255 --> 00:29:01.880
It's important to
keep in mind, though,

00:29:01.880 --> 00:29:05.600
that sometimes, but not all the
time, reducing your part count

00:29:05.600 --> 00:29:08.090
would require some
performance trades.

00:29:08.090 --> 00:29:10.680
So cost and schedule
savings may be big,

00:29:10.680 --> 00:29:13.268
but you may be trading off
a little bit of performance.

00:29:13.268 --> 00:29:14.810
And if your customer
is OK with that,

00:29:14.810 --> 00:29:17.420
then everybody wins in the end.

00:29:17.420 --> 00:29:19.790
One particular aspect
in aerospace systems

00:29:19.790 --> 00:29:22.410
is, of course, mass when
you're thinking about that.

00:29:22.410 --> 00:29:25.850
And sometimes, going to
common parts and fewer parts

00:29:25.850 --> 00:29:28.220
can increase mass, which
may sort of dictate

00:29:28.220 --> 00:29:30.800
a performance ding to the
system, but like I said,

00:29:30.800 --> 00:29:31.430
not always.

00:29:31.430 --> 00:29:34.190
And I think I'll show you
an example later on that

00:29:34.190 --> 00:29:36.390
demonstrates that
really clearly.

00:29:36.390 --> 00:29:40.370
So what I want to do now is
take you into an active learning

00:29:40.370 --> 00:29:41.120
exercise.

00:29:41.120 --> 00:29:44.300
And we're going to think about
applying these lean engineering

00:29:44.300 --> 00:29:47.810
principles and
practices to redesigning

00:29:47.810 --> 00:29:51.420
your airplane with a goal
for part count reduction,

00:29:51.420 --> 00:29:55.370
and designing for
manufacturing and assembly.

00:29:55.370 --> 00:29:57.770
So your first goal is
to satisfy the customer.

00:29:57.770 --> 00:30:00.410
And the customer has
a couple of desires.

00:30:00.410 --> 00:30:03.740
They want the mold line of the
airplane to remain the same--

00:30:03.740 --> 00:30:04.890
exactly the same.

00:30:04.890 --> 00:30:07.850
So this is the outer shape.

00:30:07.850 --> 00:30:10.970
The customer also requires
that the landing gear--

00:30:10.970 --> 00:30:12.800
but just the landing gear--

00:30:12.800 --> 00:30:14.090
must be brown.

00:30:14.090 --> 00:30:16.185
So it comes from a
particular kind of material,

00:30:16.185 --> 00:30:17.810
and the customer
feels that they really

00:30:17.810 --> 00:30:20.240
need the strength of that
material on the landing gear.

00:30:20.240 --> 00:30:23.520
So those have to stay
the way they are.

00:30:23.520 --> 00:30:27.030
Thirdly, the customer has the
desire for in-service quality

00:30:27.030 --> 00:30:28.170
to go up.

00:30:28.170 --> 00:30:30.530
Right now, the airplane
is kind of fragile.

00:30:30.530 --> 00:30:32.280
You may have been
handling a full airplane

00:30:32.280 --> 00:30:34.230
and noticed that the
tail section tends

00:30:34.230 --> 00:30:35.760
to break off quite easily.

00:30:35.760 --> 00:30:39.160
Hugh will demonstrate.

00:30:39.160 --> 00:30:42.026
Oh, my goodness.

00:30:42.026 --> 00:30:48.470
[LAUGHS] So the wing is also,
apparently a fragile part.

00:30:48.470 --> 00:30:51.043
It depends on where
you hit the airplane.

00:30:51.043 --> 00:30:52.960
But for example, I was
sitting at the customer

00:30:52.960 --> 00:30:53.860
mat at one table.

00:30:53.860 --> 00:30:55.330
I took delivery of an aircraft.

00:30:55.330 --> 00:30:58.120
And as soon as I grabbed it,
the tail section fell off.

00:30:58.120 --> 00:30:59.060
This is a real thing.

00:30:59.060 --> 00:31:01.810
So perhaps, you can address
the customer's desire

00:31:01.810 --> 00:31:04.860
for a slightly
more robust design.

00:31:04.860 --> 00:31:06.457
And fourthly, as
we've been talking

00:31:06.457 --> 00:31:08.040
about from the
beginning, the customer

00:31:08.040 --> 00:31:11.700
really wants 12 airplane
to be delivered per round.

00:31:11.700 --> 00:31:16.455
So they want you to increase
the delivery quantities.

00:31:16.455 --> 00:31:18.830
You want to think about reducing
your manufacturing cost,

00:31:18.830 --> 00:31:20.850
because this is good
for your enterprise.

00:31:20.850 --> 00:31:23.600
So your parts are going
to cost $5 per part,

00:31:23.600 --> 00:31:26.160
regardless of part.

00:31:26.160 --> 00:31:30.900
Less parts then equals
more capacity for you.

00:31:30.900 --> 00:31:34.242
And thirdly, we want you to
incorporate the suppliers.

00:31:34.242 --> 00:31:35.700
What kinds of
innovations could you

00:31:35.700 --> 00:31:38.460
generate by working better
with your suppliers?

00:31:38.460 --> 00:31:40.440
Could you reduce
a part desercity?

00:31:40.440 --> 00:31:43.380
What else could you do applying
lean engineering principles

00:31:43.380 --> 00:31:46.490
in concert with your supplier?

00:31:46.490 --> 00:31:49.660
So I'm going to give
you about 20 minutes

00:31:49.660 --> 00:31:56.190
or so to talk in your teams
and redesign your aircraft.

00:31:56.190 --> 00:31:58.302
You're going to work
with your facilitator.

00:31:58.302 --> 00:31:59.760
And you need to
demonstrate that it

00:31:59.760 --> 00:32:02.910
satisfies all of these
criteria for the customer.

00:32:09.030 --> 00:32:12.166
[INTERPOSING VOICES]

00:32:19.812 --> 00:32:22.020
ANNALISA WEIGEL: All right,
everybody take your seats

00:32:22.020 --> 00:32:24.720
again, please.

00:32:24.720 --> 00:32:28.320
I could tell you're all having
fun redesigning your airplanes.

00:32:28.320 --> 00:32:29.868
Let me use the next
couple of slides

00:32:29.868 --> 00:32:31.410
to finish out this
module to give you

00:32:31.410 --> 00:32:35.670
some motivation for why lean
engineering has been helpful

00:32:35.670 --> 00:32:36.370
in practice.

00:32:36.370 --> 00:32:40.180
I'm going to cite a couple
of real world examples here.

00:32:40.180 --> 00:32:43.050
The first is an exercise
in design for manufacturing

00:32:43.050 --> 00:32:44.880
assembly to reduce part counts.

00:32:44.880 --> 00:32:47.190
In the latest iteration
of the F-18, called

00:32:47.190 --> 00:32:49.470
the E/F, the company
the builds that

00:32:49.470 --> 00:32:52.110
went on a part count
reduction exercise

00:32:52.110 --> 00:32:54.420
by employing design for
manufacturing assembly

00:32:54.420 --> 00:32:55.560
techniques.

00:32:55.560 --> 00:32:58.470
In each of the major
assemblies for the plane,

00:32:58.470 --> 00:33:00.090
they went and reduced
the part counts

00:33:00.090 --> 00:33:02.940
from the C/D version, which
was a previous iteration,

00:33:02.940 --> 00:33:04.390
to the E/F version.

00:33:04.390 --> 00:33:08.310
So in total, we went from having
14,000 plus parts in the C/D

00:33:08.310 --> 00:33:12.210
version, to having just over
8,000 parts in the E/F version.

00:33:12.210 --> 00:33:15.510
This was a 42% part
count reduction.

00:33:15.510 --> 00:33:17.970
Now, we talked before about
how sometimes, part count

00:33:17.970 --> 00:33:21.540
reductions come with
sacrifices in performance.

00:33:21.540 --> 00:33:23.050
But this was not the case.

00:33:23.050 --> 00:33:25.350
So the F-18 E/F
version turned out

00:33:25.350 --> 00:33:29.940
to be 25% more capable than
its previous predecessor.

00:33:29.940 --> 00:33:32.635
So this was an excellent
win-win situation.

00:33:32.635 --> 00:33:35.010
And not only was the customer
happier about the increased

00:33:35.010 --> 00:33:37.200
performance, they were
absolutely delighted

00:33:37.200 --> 00:33:40.530
by the lower cost of the plane,
because parts that are not

00:33:40.530 --> 00:33:42.450
on the plane don't
have to be designed,

00:33:42.450 --> 00:33:44.220
they don't have
to be tooled, they

00:33:44.220 --> 00:33:45.960
don't have to be
NC programmed, they

00:33:45.960 --> 00:33:49.103
don't have to be manufactured
or assembled, anything.

00:33:49.103 --> 00:33:50.520
They don't have
to be stored, they

00:33:50.520 --> 00:33:51.937
don't have to be
inventoried, they

00:33:51.937 --> 00:33:55.230
don't have to be controlled, and
they don't have to be scrapped.

00:33:55.230 --> 00:33:58.020
And if you have
fewer parts, they

00:33:58.020 --> 00:34:00.820
don't need to have spare parts
for those extra parts as well.

00:34:00.820 --> 00:34:03.120
So that reduced maintenance
and repair costs.

00:34:03.120 --> 00:34:04.566
Question?

00:34:04.566 --> 00:34:06.680
AUDIENCE: Does the
manufacture necessarily

00:34:06.680 --> 00:34:10.107
have to pass on the cost to
the consumer [INAUDIBLE],,

00:34:10.107 --> 00:34:13.110
because I imagine quite
a bit of time and money

00:34:13.110 --> 00:34:17.241
goes into R and D to try to
get the cost [INAUDIBLE]..

00:34:17.241 --> 00:34:18.949
ANNALISA WEIGEL: Yeah,
so there certainly

00:34:18.949 --> 00:34:22.742
was a lot of engineering
costs to redesign the plane.

00:34:22.742 --> 00:34:24.409
And there was an
interesting arrangement

00:34:24.409 --> 00:34:26.370
between this company
and the government.

00:34:26.370 --> 00:34:28.940
So there was some,
if you would call it,

00:34:28.940 --> 00:34:32.489
cost-saving sharing or
profit sharing that went on.

00:34:32.489 --> 00:34:34.909
So the company was
incented and rewarded

00:34:34.909 --> 00:34:36.623
for keeping costs down.

00:34:36.623 --> 00:34:38.540
They didn't have to give
all that savings back

00:34:38.540 --> 00:34:39.139
to the government.

00:34:39.139 --> 00:34:40.429
They didn't get to
keep it all either.

00:34:40.429 --> 00:34:41.887
But they got to
keep enough that it

00:34:41.887 --> 00:34:45.230
was an incentive for them to
actually meet these objectives.

00:34:45.230 --> 00:34:47.239
And at the time,
this was somewhat

00:34:47.239 --> 00:34:49.820
of a radical way of thinking
about government contracting

00:34:49.820 --> 00:34:51.360
as well.

00:34:51.360 --> 00:34:53.969
And that's not a trivial
area to overlook.

00:34:53.969 --> 00:34:56.909
Because sometimes, those
contracting and legal issues

00:34:56.909 --> 00:34:58.830
can keep you from
doing what otherwise

00:34:58.830 --> 00:35:00.120
might seem very lean to you.

00:35:02.840 --> 00:35:05.330
Let's look at another
example of how

00:35:05.330 --> 00:35:09.590
lean engineering tools helps
reduce the manufacturing label.

00:35:09.590 --> 00:35:12.350
So what I'm showing
you here on the y-axis

00:35:12.350 --> 00:35:15.200
is account of manufacturing
labor in terms of hours.

00:35:15.200 --> 00:35:17.750
And on the x-axis is the
number of production units

00:35:17.750 --> 00:35:18.870
that we have.

00:35:18.870 --> 00:35:21.830
So right here is where the
first physical production

00:35:21.830 --> 00:35:23.750
unit is made.

00:35:23.750 --> 00:35:27.920
This blue line right here
shows the labor hours

00:35:27.920 --> 00:35:31.880
per production unit before lean
engineering processes and tools

00:35:31.880 --> 00:35:33.380
were applied.

00:35:33.380 --> 00:35:36.620
This curve down here
shows the results

00:35:36.620 --> 00:35:39.680
after lean engineering
processes were applied.

00:35:39.680 --> 00:35:43.190
And what happened was that
nine units were actually

00:35:43.190 --> 00:35:46.760
built virtually before anything
got to the manufacturing floor,

00:35:46.760 --> 00:35:49.280
such when they did get to
the first physical unit

00:35:49.280 --> 00:35:51.380
that was produced, the
total manufacturing

00:35:51.380 --> 00:35:52.910
hours to do that
was significantly

00:35:52.910 --> 00:35:57.200
less than previously, before
learning the lean tools.

00:35:57.200 --> 00:36:00.800
And in addition, the sort of
steady-state manufacturing

00:36:00.800 --> 00:36:04.670
hours required for the same
comparable kind of product

00:36:04.670 --> 00:36:10.330
was much lower, in the end, than
using the non-lean processes.

00:36:10.330 --> 00:36:14.140
This is another example
of how better engineering

00:36:14.140 --> 00:36:17.680
tools help reduce some
of the costs associated.

00:36:17.680 --> 00:36:20.590
So on the y-axis here,
we have a staffing level.

00:36:20.590 --> 00:36:23.470
And on the x-axis
here, we have months

00:36:23.470 --> 00:36:25.960
from the end of the
conceptual design phase.

00:36:25.960 --> 00:36:30.040
And this just shows the
results of the design and IPT

00:36:30.040 --> 00:36:33.460
labor that was required for
vehicles of comparable sizes.

00:36:33.460 --> 00:36:35.230
And what you see is
that, as we slowly

00:36:35.230 --> 00:36:39.130
introduced different kinds
and better of lean engineering

00:36:39.130 --> 00:36:41.650
tools, we were able to
reduce the staffing level

00:36:41.650 --> 00:36:43.360
and shrink the time
that was required

00:36:43.360 --> 00:36:44.710
to accomplish that milestone.

00:36:47.750 --> 00:36:51.190
And lastly, lean engineering
enables faster delivery times.

00:36:51.190 --> 00:36:52.870
And particularly
because spacecraft

00:36:52.870 --> 00:36:54.850
have such a slow
reputation in the industry,

00:36:54.850 --> 00:36:56.980
I thought I'd show
you a space example.

00:36:56.980 --> 00:36:59.950
This is Iridium, which
is a satellite program.

00:36:59.950 --> 00:37:02.830
And where it's typical to
have 12 to 18 months of cycle

00:37:02.830 --> 00:37:05.830
time in the satellite industry,
this particular program

00:37:05.830 --> 00:37:08.110
accomplished a cycle
time with 25 days, which

00:37:08.110 --> 00:37:09.962
was just literally unheard of.

00:37:09.962 --> 00:37:11.920
And they did it largely
through the application

00:37:11.920 --> 00:37:14.770
of lean engineering and
lean manufacturing practices

00:37:14.770 --> 00:37:17.570
to the program.

00:37:17.570 --> 00:37:21.400
So just to wrap up, we
talked in this module

00:37:21.400 --> 00:37:25.240
about lean engineering, and
how lean engineering can enable

00:37:25.240 --> 00:37:29.020
lean manufacturing, and how
working with the supply chain,

00:37:29.020 --> 00:37:31.090
all these three things
can come together

00:37:31.090 --> 00:37:34.690
to create affordability of our
products across the enterprise

00:37:34.690 --> 00:37:38.650
through the application of
lean, by reducing costs per unit

00:37:38.650 --> 00:37:41.340
as we go down the assembly line.