1 00:00:00,000 --> 00:00:02,520 The following content is provided under a Creative 2 00:00:02,520 --> 00:00:03,970 Commons license. 3 00:00:03,970 --> 00:00:06,330 Your support will help MIT OpenCourseWare 4 00:00:06,330 --> 00:00:10,660 continue to offer high quality educational resources for free. 5 00:00:10,660 --> 00:00:13,320 To make a donation or view additional materials 6 00:00:13,320 --> 00:00:17,190 from hundreds of MIT courses, visit MIT OpenCourseWare 7 00:00:17,190 --> 00:00:18,370 at ocw.mit.edu. 8 00:00:26,760 --> 00:00:29,310 ANNALISA WEIGEL: So if I can have your attention please, 9 00:00:29,310 --> 00:00:33,000 we are going to break from our simulation for just a moment 10 00:00:33,000 --> 00:00:35,910 to talk about our next module, called Lean Engineering Basics. 11 00:00:39,640 --> 00:00:41,550 There are two key takeaways that we'd 12 00:00:41,550 --> 00:00:43,500 like you to get from this module, 13 00:00:43,500 --> 00:00:44,970 and they're worth reiterating and I 14 00:00:44,970 --> 00:00:46,845 will say them several times during the course 15 00:00:46,845 --> 00:00:47,740 of the module. 16 00:00:47,740 --> 00:00:49,530 The first thing we want you to internalize 17 00:00:49,530 --> 00:00:53,010 is that lean thinking applies to engineering just as much as it 18 00:00:53,010 --> 00:00:55,110 applies to factory processes. 19 00:00:55,110 --> 00:00:58,020 And two, that engineering plays a critical role 20 00:00:58,020 --> 00:01:00,540 in creating value in lean enterprise. 21 00:01:00,540 --> 00:01:02,520 And our presentation today is broken down 22 00:01:02,520 --> 00:01:03,870 along those two lines. 23 00:01:03,870 --> 00:01:06,870 And I'm going to start talking about why lean thinking applies 24 00:01:06,870 --> 00:01:10,670 to our engineering processes. 25 00:01:10,670 --> 00:01:12,980 Here are our learning objectives for this module. 26 00:01:12,980 --> 00:01:14,690 They are five-fold. 27 00:01:14,690 --> 00:01:16,670 So at the end, you should be able to explain 28 00:01:16,670 --> 00:01:20,330 how our lean principles and practices apply to engineering. 29 00:01:20,330 --> 00:01:21,950 You should be able to explain why 30 00:01:21,950 --> 00:01:25,160 customer value and this upfront part of engineering 31 00:01:25,160 --> 00:01:29,120 and the conceptual design are critical to product success. 32 00:01:29,120 --> 00:01:31,940 You should be able to describe how lean engineering enables 33 00:01:31,940 --> 00:01:34,400 lean throughout the whole enterprise and the product 34 00:01:34,400 --> 00:01:36,260 lifecycle. 35 00:01:36,260 --> 00:01:38,510 Fourth, you should be able to describe some tools we 36 00:01:38,510 --> 00:01:40,220 use for lean engineering. 37 00:01:40,220 --> 00:01:42,680 And lastly, you should be able to apply lean engineering 38 00:01:42,680 --> 00:01:45,800 techniques to redesign your simulated airplane. 39 00:01:45,800 --> 00:01:49,103 So we'll spend the first half of this module talking concepts. 40 00:01:49,103 --> 00:01:51,020 And we'll spend the second half of this module 41 00:01:51,020 --> 00:01:52,730 in an active learning exercise, trying 42 00:01:52,730 --> 00:01:54,440 to apply some of the things we learned 43 00:01:54,440 --> 00:01:56,540 to the redesign of your simulated airplane. 44 00:02:00,640 --> 00:02:02,380 A few days ago, we had a question 45 00:02:02,380 --> 00:02:04,630 about wastes in engineering compared 46 00:02:04,630 --> 00:02:07,138 to wastes in the factory. 47 00:02:07,138 --> 00:02:09,430 And this chart is actually the answer to that question. 48 00:02:09,430 --> 00:02:10,930 We did say we'd defer it a few days, 49 00:02:10,930 --> 00:02:12,860 and now we're going to tackle it. 50 00:02:12,860 --> 00:02:15,100 So here are five lean thinking steps 51 00:02:15,100 --> 00:02:19,080 we talked about in the first day, what 52 00:02:19,080 --> 00:02:21,880 they mean for the manufacturing process, and then lastly, 53 00:02:21,880 --> 00:02:24,930 how we translate those over into engineering. 54 00:02:24,930 --> 00:02:26,430 Now, one of the challenges we've had 55 00:02:26,430 --> 00:02:28,620 in applying lean to engineering has 56 00:02:28,620 --> 00:02:31,060 been a reaction from the engineering group that says, 57 00:02:31,060 --> 00:02:33,240 well, you know, you can apply lean in the factory, 58 00:02:33,240 --> 00:02:35,810 but engineering is just different. 59 00:02:35,810 --> 00:02:37,560 You can't really apply it here. 60 00:02:37,560 --> 00:02:40,140 And yes, of course, engineering is different than the factory 61 00:02:40,140 --> 00:02:40,897 operations. 62 00:02:40,897 --> 00:02:43,230 But that doesn't mean that these lean principles-- which 63 00:02:43,230 --> 00:02:44,688 are very universal, and you've seen 64 00:02:44,688 --> 00:02:47,760 applied across the enterprise from office processes 65 00:02:47,760 --> 00:02:49,530 to manufacturing-- why they can't 66 00:02:49,530 --> 00:02:51,870 apply to engineering as well. 67 00:02:51,870 --> 00:02:54,985 The difference, mainly, from manufacturing to engineering, 68 00:02:54,985 --> 00:02:56,860 is a thing that's flowing through the system. 69 00:02:56,860 --> 00:02:58,620 So in a manufacturing context, you 70 00:02:58,620 --> 00:03:01,720 have the raw materials that are flowing through the system, 71 00:03:01,720 --> 00:03:03,600 and being processed and changed. 72 00:03:03,600 --> 00:03:05,692 In engineering, it's really information 73 00:03:05,692 --> 00:03:07,650 that is flowing through the value stream-- that 74 00:03:07,650 --> 00:03:10,470 is being processed and changed. 75 00:03:10,470 --> 00:03:13,860 Your design emerges, uncertainties are reduced, 76 00:03:13,860 --> 00:03:16,540 expectations are clarified, and so on. 77 00:03:16,540 --> 00:03:18,480 These are all examples of the information 78 00:03:18,480 --> 00:03:22,870 that's flowing through your engineering value stream. 79 00:03:22,870 --> 00:03:26,160 So for manufacturing, the addition of value at any step 80 00:03:26,160 --> 00:03:27,602 is pretty visible. 81 00:03:27,602 --> 00:03:29,310 We told you that you have to look and see 82 00:03:29,310 --> 00:03:31,840 if a thing is physically changed to add value. 83 00:03:31,840 --> 00:03:34,980 And you can usually see that as your material gets processed. 84 00:03:34,980 --> 00:03:37,290 This is a little bit harder to see in engineering. 85 00:03:37,290 --> 00:03:39,120 When you change part of your design 86 00:03:39,120 --> 00:03:41,040 or when you do an analysis, it's not 87 00:03:41,040 --> 00:03:43,530 quite as easy to see that you've change the information. 88 00:03:43,530 --> 00:03:45,690 But you usually have. 89 00:03:45,690 --> 00:03:48,150 The second contrast in that manufacturing, your goal 90 00:03:48,150 --> 00:03:49,530 is very defined. 91 00:03:49,530 --> 00:03:51,210 When you start manufacturing, you 92 00:03:51,210 --> 00:03:54,270 have a very specific set of specs and drawings. 93 00:03:54,270 --> 00:03:55,860 And at the end, you expect to come out 94 00:03:55,860 --> 00:03:59,370 with exactly the product that you wanted to when you started 95 00:03:59,370 --> 00:04:01,015 the manufacturing process. 96 00:04:01,015 --> 00:04:02,640 Now this is different than engineering, 97 00:04:02,640 --> 00:04:05,340 because in engineering our goal is emergent. 98 00:04:05,340 --> 00:04:07,740 We have some sense that there are requirements, 99 00:04:07,740 --> 00:04:10,710 and we have maybe some notion of how we might meet those. 100 00:04:10,710 --> 00:04:13,470 But the whole process of engineering and design 101 00:04:13,470 --> 00:04:15,120 is to look at different alternatives 102 00:04:15,120 --> 00:04:18,240 and to then come up with a set of specifications for product 103 00:04:18,240 --> 00:04:19,529 that you can build. 104 00:04:19,529 --> 00:04:22,290 So your goal is really emergent in that sense. 105 00:04:22,290 --> 00:04:24,360 Now, we go down to the value stream. 106 00:04:24,360 --> 00:04:26,670 You can do a value stream map for information 107 00:04:26,670 --> 00:04:29,280 just like you can for material flow. 108 00:04:29,280 --> 00:04:33,290 The one difference is what's actually flowing through that. 109 00:04:33,290 --> 00:04:35,780 Now, if we move on to our concept of flow, which 110 00:04:35,780 --> 00:04:38,240 is trying to make everything seamlessly go, 111 00:04:38,240 --> 00:04:41,360 in manufacturing, iterations are usually considered waste. 112 00:04:41,360 --> 00:04:43,640 They're indicative of rework in the process, 113 00:04:43,640 --> 00:04:47,390 or a process or design that wasn't spec'd right up front. 114 00:04:47,390 --> 00:04:49,430 But in engineering, as you all probably 115 00:04:49,430 --> 00:04:51,650 recognize, mostly being engineering students, 116 00:04:51,650 --> 00:04:53,030 iterations are OK. 117 00:04:53,030 --> 00:04:55,640 We plan to do these. 118 00:04:55,640 --> 00:04:58,460 And that's a key word there is that planned iterations are 119 00:04:58,460 --> 00:04:59,060 good. 120 00:04:59,060 --> 00:05:01,100 We recognize that going through analysis, 121 00:05:01,100 --> 00:05:02,808 and looking at problems, and looking them 122 00:05:02,808 --> 00:05:03,830 again is important. 123 00:05:03,830 --> 00:05:06,080 The key there is that you want your planned iterations 124 00:05:06,080 --> 00:05:09,130 to be as efficient as you can. 125 00:05:09,130 --> 00:05:12,760 The fourth concept of pull, which in a manufacturing sense 126 00:05:12,760 --> 00:05:16,720 is driven by tag time, for the engineering processes, that's 127 00:05:16,720 --> 00:05:18,790 usually driven by your enterprise 128 00:05:18,790 --> 00:05:22,030 needs for new products to be developed. 129 00:05:22,030 --> 00:05:24,170 And then, the concept of perfection, 130 00:05:24,170 --> 00:05:26,440 which in a manufacturing context means 131 00:05:26,440 --> 00:05:30,130 processing without repeating errors, how does that 132 00:05:30,130 --> 00:05:31,960 translate into engineering? 133 00:05:31,960 --> 00:05:34,570 We would think of it as engineering processes 134 00:05:34,570 --> 00:05:37,330 that enable your whole enterprise improvement. 135 00:05:37,330 --> 00:05:39,880 And I'm going to expand on that concept in the second half 136 00:05:39,880 --> 00:05:40,540 of the lecture. 137 00:05:43,650 --> 00:05:49,130 Here, we're revisiting our seven wastes that we identified-- 138 00:05:49,130 --> 00:05:51,410 over-production, inventory, transportation, 139 00:05:51,410 --> 00:05:54,110 unnecessary movement, waiting, defective outputs, 140 00:05:54,110 --> 00:05:55,790 and over-processing. 141 00:05:55,790 --> 00:05:57,230 So I'd like you all to think back 142 00:05:57,230 --> 00:05:59,930 to your engineering experience, either from classes or maybe 143 00:05:59,930 --> 00:06:01,880 from summer jobs. 144 00:06:01,880 --> 00:06:04,580 And I'd like to hear some examples, in an engineering 145 00:06:04,580 --> 00:06:07,340 context, of any of these seven wastes. 146 00:06:12,520 --> 00:06:14,210 Go ahead, please. 147 00:06:14,210 --> 00:06:17,890 AUDIENCE: So yesterday, at the New Balance factory, 148 00:06:17,890 --> 00:06:20,560 we were on the right side of the factory. 149 00:06:20,560 --> 00:06:22,840 We were talking about how the upper part and the lower 150 00:06:22,840 --> 00:06:26,200 part of the shoe was actually manufactured in China. 151 00:06:26,200 --> 00:06:29,410 But then, they shifted back over here just to essentially glue 152 00:06:29,410 --> 00:06:31,250 the top and bottom parts together so 153 00:06:31,250 --> 00:06:33,700 that they can say, assembled in the United States. 154 00:06:33,700 --> 00:06:37,120 And our group asked if wasn't that a waste in transportation, 155 00:06:37,120 --> 00:06:39,880 the cost, and the time, and all that kind of stuff 156 00:06:39,880 --> 00:06:42,550 just so they could say, assembled in the United States. 157 00:06:42,550 --> 00:06:45,580 And they want-- they felt that it was worth it that they could 158 00:06:45,580 --> 00:06:46,990 just say, you know-- 159 00:06:46,990 --> 00:06:48,790 that they put the US logo on it in turn 160 00:06:48,790 --> 00:06:52,060 for having that transportation waste. 161 00:06:52,060 --> 00:06:54,280 ANNALISA WEIGEL: Interesting, OK, so that to me 162 00:06:54,280 --> 00:06:56,200 has some elements of both manufacturing 163 00:06:56,200 --> 00:06:58,240 and the engineering design, and perhaps 164 00:06:58,240 --> 00:07:00,250 some business strategy to it. 165 00:07:00,250 --> 00:07:02,890 Can we try to think of just isolating examples 166 00:07:02,890 --> 00:07:04,450 to the engineering process. 167 00:07:04,450 --> 00:07:06,502 Think about conceptual design. 168 00:07:06,502 --> 00:07:07,960 And let's talk about some examples. 169 00:07:07,960 --> 00:07:08,690 Go ahead. 170 00:07:08,690 --> 00:07:11,630 AUDIENCE: Well, at my internship last summer, 171 00:07:11,630 --> 00:07:15,670 they were talking about how a lot of older people 172 00:07:15,670 --> 00:07:18,850 had really great skills in specific areas. 173 00:07:18,850 --> 00:07:22,870 And they were worried that the older engineers weren't 174 00:07:22,870 --> 00:07:25,834 communicating those skills to the younger engineers. 175 00:07:25,834 --> 00:07:30,150 And so when they left, there would be waste, 176 00:07:30,150 --> 00:07:31,650 because people would have to relearn 177 00:07:31,650 --> 00:07:35,640 that specific engineering skill. 178 00:07:35,640 --> 00:07:39,040 So they created a Boeing Wikipedia, 179 00:07:39,040 --> 00:07:45,360 and were encouraging engineers to type up articles 180 00:07:45,360 --> 00:07:50,835 to try to keep that information that other people needed. 181 00:07:50,835 --> 00:07:52,960 ANNALISA WEIGEL: That's a very interesting example. 182 00:07:52,960 --> 00:07:54,190 Let me ask the class-- 183 00:07:54,190 --> 00:07:56,140 these are the seven waste categories. 184 00:07:56,140 --> 00:07:57,910 What do you-- which category do you 185 00:07:57,910 --> 00:07:59,670 feel that example might fit in? 186 00:08:04,380 --> 00:08:09,150 Inventory-- having more material or information than you need? 187 00:08:09,150 --> 00:08:11,160 Any other thoughts? 188 00:08:11,160 --> 00:08:12,570 OK, Earl, you have an important-- 189 00:08:12,570 --> 00:08:13,560 AUDIENCE: Just that New Balance, we 190 00:08:13,560 --> 00:08:15,360 heard an eighth waste category, which 191 00:08:15,360 --> 00:08:20,320 was, for their environment, unused associates creativity, 192 00:08:20,320 --> 00:08:22,230 which was sort of a loss of human-- a waste 193 00:08:22,230 --> 00:08:23,375 of human resources. 194 00:08:23,375 --> 00:08:24,930 Would this fall in that category? 195 00:08:24,930 --> 00:08:26,888 ANNALISA WEIGEL: Yeah, to me it falls in eight. 196 00:08:26,888 --> 00:08:30,870 I might also say it perhaps falls in one, if I thought 197 00:08:30,870 --> 00:08:34,230 that I had to produce two engineers, 198 00:08:34,230 --> 00:08:36,365 and the information wasn't officially being 199 00:08:36,365 --> 00:08:38,490 passed between the first one who got the knowledge. 200 00:08:38,490 --> 00:08:40,573 And then, I had to go through the exact same steps 201 00:08:40,573 --> 00:08:43,890 to get the second engineer that same knowledge 202 00:08:43,890 --> 00:08:45,908 without taking any advantages. 203 00:08:45,908 --> 00:08:47,700 But this is one of the interesting examples 204 00:08:47,700 --> 00:08:49,950 of translating largely manufacturing 205 00:08:49,950 --> 00:08:54,090 a material-based instances of waste into engineering, is 206 00:08:54,090 --> 00:08:56,153 that sometimes is a very clear translation. 207 00:08:56,153 --> 00:08:57,570 And sometimes it's a little harder 208 00:08:57,570 --> 00:08:59,010 to figure out where it is. 209 00:08:59,010 --> 00:09:02,195 But I think we can all agree that example that Emily gave, 210 00:09:02,195 --> 00:09:03,570 it's feels like there's something 211 00:09:03,570 --> 00:09:05,820 that's being wasted there in an engineering sense. 212 00:09:05,820 --> 00:09:07,350 A lot of experience-- 213 00:09:07,350 --> 00:09:09,330 and engineers' knowledge is very experiential-- 214 00:09:09,330 --> 00:09:11,580 is being gathered, and then sort of just 215 00:09:11,580 --> 00:09:13,890 left to go away and not be utilized by the company 216 00:09:13,890 --> 00:09:15,480 anymore. 217 00:09:15,480 --> 00:09:16,990 Let's take another example. 218 00:09:16,990 --> 00:09:17,980 AUDIENCE: I was just wondering, could that 219 00:09:17,980 --> 00:09:19,688 be thought of as over-processing as well, 220 00:09:19,688 --> 00:09:23,910 because you need to kind of do more 221 00:09:23,910 --> 00:09:26,223 from scratch training of the [INAUDIBLE]?? 222 00:09:29,577 --> 00:09:32,160 ANNALISA WEIGEL: Yeah, I could take that argument, definitely. 223 00:09:32,160 --> 00:09:33,768 Can you-- go ahead. 224 00:09:33,768 --> 00:09:35,560 AUDIENCE: I guess I may be missing a point. 225 00:09:35,560 --> 00:09:38,700 So I just want to clarify, how does it 226 00:09:38,700 --> 00:09:40,860 help me to solve the problem by classifying it 227 00:09:40,860 --> 00:09:42,602 in one of these seven ways? 228 00:09:42,602 --> 00:09:45,060 For example, if I know what the problem is I'm throwing out 229 00:09:45,060 --> 00:09:46,890 talent, I'm throwing out knowledge 230 00:09:46,890 --> 00:09:50,580 that I've got to then retrain, how can I use these-- 231 00:09:50,580 --> 00:09:53,713 sort of this classification-- to help me solve it? 232 00:09:53,713 --> 00:09:55,380 ANNALISA WEIGEL: Sure, what you're doing 233 00:09:55,380 --> 00:09:58,680 is you are standing on the shoulders of giants of people 234 00:09:58,680 --> 00:10:02,310 who spent decades of years, and probably 235 00:10:02,310 --> 00:10:04,840 millions of hours of brainpower, trying to figure this out. 236 00:10:04,840 --> 00:10:07,170 So let's start with this is our analogy. 237 00:10:07,170 --> 00:10:09,960 And then we'll probably create unique categories of waste 238 00:10:09,960 --> 00:10:11,280 that apply to engineering. 239 00:10:11,280 --> 00:10:13,260 But this is a great start, where in absence 240 00:10:13,260 --> 00:10:14,760 of some classification system, you 241 00:10:14,760 --> 00:10:17,580 may spend a lot of time trying to figure out what that is. 242 00:10:17,580 --> 00:10:20,100 So it's really just a creative tool for us 243 00:10:20,100 --> 00:10:22,518 to help understand the parallels to engineering. 244 00:10:22,518 --> 00:10:24,060 AUDIENCE: I think it's more of, like, 245 00:10:24,060 --> 00:10:26,300 finding waste you use these. 246 00:10:26,300 --> 00:10:28,358 If you like looking at your organization, 247 00:10:28,358 --> 00:10:30,400 you would look through this and be, like, oh, OK, 248 00:10:30,400 --> 00:10:32,430 I see this, and this, and this, and it 249 00:10:32,430 --> 00:10:35,800 helps you find new waste instead of just analyzing waste 250 00:10:35,800 --> 00:10:38,190 that you probably [INAUDIBLE]. 251 00:10:38,190 --> 00:10:40,228 ANNALISA WEIGEL: Excellent, thank you. 252 00:10:40,228 --> 00:10:41,770 Let's have another example of a waste 253 00:10:41,770 --> 00:10:43,460 that's different than the ones we talked about. 254 00:10:43,460 --> 00:10:44,010 [INAUDIBLE]? 255 00:10:44,010 --> 00:10:45,593 AUDIENCE: Mine would be either waiting 256 00:10:45,593 --> 00:10:47,160 or an unnecessary movement. 257 00:10:47,160 --> 00:10:49,800 I was working with GE Nuclear in California. 258 00:10:49,800 --> 00:10:52,050 And every time we were doing a purchasing order 259 00:10:52,050 --> 00:10:54,990 or test specifications that had to be approved, 260 00:10:54,990 --> 00:10:57,810 it had to be approved in Georgia, which is a three hour 261 00:10:57,810 --> 00:10:58,497 time difference. 262 00:10:58,497 --> 00:11:01,080 Which means that either you have to come to the office at 6:00 263 00:11:01,080 --> 00:11:02,872 in the morning if you're wanting your thing 264 00:11:02,872 --> 00:11:05,010 to be processed right away when they open, 265 00:11:05,010 --> 00:11:07,885 or you have to stay up later at night to finish it. 266 00:11:07,885 --> 00:11:09,510 So everybody was very upset about that. 267 00:11:09,510 --> 00:11:11,760 We were losing six hours in a day of work. 268 00:11:11,760 --> 00:11:15,250 And the tests were being done in Massachusetts. 269 00:11:15,250 --> 00:11:17,550 So the engineers had to fly over there, 270 00:11:17,550 --> 00:11:19,320 spent some time running through the tests 271 00:11:19,320 --> 00:11:20,670 and get the results back. 272 00:11:20,670 --> 00:11:23,190 And it was a waste of time for everyone, 273 00:11:23,190 --> 00:11:26,158 and energy, and other things. 274 00:11:26,158 --> 00:11:28,200 ANNALISA WEIGEL: Great, great, and a good example 275 00:11:28,200 --> 00:11:30,870 of waiting-- waiting is a very common kind of waste, 276 00:11:30,870 --> 00:11:35,460 if you think about information and design that's happening. 277 00:11:35,460 --> 00:11:37,500 How about other examples? 278 00:11:37,500 --> 00:11:40,970 AUDIENCE: I work here at MIT, and the first week, I had 279 00:11:40,970 --> 00:11:43,550 to buy something for a project. 280 00:11:43,550 --> 00:11:46,090 And no one how to buy anything. 281 00:11:46,090 --> 00:11:47,775 Like, my advisor didn't know. 282 00:11:47,775 --> 00:11:49,900 Eventually, they found out that the woman in charge 283 00:11:49,900 --> 00:11:52,650 had just moved, and no one had replaced her. 284 00:11:52,650 --> 00:11:57,395 So I guess it was waiting, or a defective output, 285 00:11:57,395 --> 00:11:58,353 or something like that. 286 00:11:58,353 --> 00:11:59,936 ANNALISA WEIGEL: There's several kinds 287 00:11:59,936 --> 00:12:03,940 of problems with that particular process, yeah. 288 00:12:03,940 --> 00:12:06,580 Unnecessary movement also happens quite frequently 289 00:12:06,580 --> 00:12:11,000 in an engineering sense, as well as transportation. 290 00:12:11,000 --> 00:12:14,170 So if you think about how many times you move information, 291 00:12:14,170 --> 00:12:17,020 change information from the inputs of one analysis program 292 00:12:17,020 --> 00:12:20,300 into a format that's compatible with another analysis program-- 293 00:12:20,300 --> 00:12:23,140 think about going back and forth here on campus between MATLAB 294 00:12:23,140 --> 00:12:24,850 and Excel happens frequently. 295 00:12:24,850 --> 00:12:27,190 Now, if you go out into a very complex industry 296 00:12:27,190 --> 00:12:29,660 like aerospace, the tools are far more complex. 297 00:12:29,660 --> 00:12:31,660 And translating the inputs of one of the outputs 298 00:12:31,660 --> 00:12:34,370 to another, and so on, is a large deal. 299 00:12:34,370 --> 00:12:36,380 They're not necessarily made to be compatible. 300 00:12:36,380 --> 00:12:38,260 And then, we heard [INAUDIBLE] talk 301 00:12:38,260 --> 00:12:39,970 about a lot of unnecessary movements 302 00:12:39,970 --> 00:12:42,040 that may happen-- moving people to various places 303 00:12:42,040 --> 00:12:45,340 to test things to get analysis results for your design. 304 00:12:45,340 --> 00:12:47,230 Because sometimes these complex products 305 00:12:47,230 --> 00:12:49,240 are so large and expensive, we can't 306 00:12:49,240 --> 00:12:51,220 afford to have testing facilities locally 307 00:12:51,220 --> 00:12:54,250 to try to minimize that kind of waste. 308 00:12:54,250 --> 00:12:56,080 All right, we're starting to get a sense. 309 00:12:56,080 --> 00:12:57,580 And we'll talk about them further 310 00:12:57,580 --> 00:13:00,280 as we go through the simulation game and the rest 311 00:13:00,280 --> 00:13:04,680 of our module today. 312 00:13:04,680 --> 00:13:07,560 I wanted to point out some data that we 313 00:13:07,560 --> 00:13:11,460 have about the efficiency of engineering processes. 314 00:13:11,460 --> 00:13:14,850 If you have any doubt that there's waste in engineering, 315 00:13:14,850 --> 00:13:16,680 this should help convince you that there 316 00:13:16,680 --> 00:13:19,180 is at least by some informed people. 317 00:13:19,180 --> 00:13:21,090 So this is a measure of effort that's wasted. 318 00:13:21,090 --> 00:13:23,640 40% of the product development effort 319 00:13:23,640 --> 00:13:25,380 was classified as pure waste. 320 00:13:25,380 --> 00:13:28,320 About 30% is necessary waste. 321 00:13:28,320 --> 00:13:31,620 In another survey, we had 30% of product development 322 00:13:31,620 --> 00:13:35,790 time that was charged to just set up and waiting. 323 00:13:35,790 --> 00:13:38,070 You can easily see why those don't add a lot of value 324 00:13:38,070 --> 00:13:40,290 to the customer. 325 00:13:40,290 --> 00:13:44,130 And not only is effort wasted, but time is wasted. 326 00:13:44,130 --> 00:13:47,220 62% of tasks, on average, were idle at any given 327 00:13:47,220 --> 00:13:50,280 time in a survey of particular companies. 328 00:13:50,280 --> 00:13:53,700 And 50% to 90% of task time is found 329 00:13:53,700 --> 00:13:56,340 to be idle in various Kaizen-type events that 330 00:13:56,340 --> 00:13:58,350 are run in an engineering context 331 00:13:58,350 --> 00:14:00,210 at different kinds of companies. 332 00:14:00,210 --> 00:14:02,760 So clearly, lots of room for improvement 333 00:14:02,760 --> 00:14:06,120 here in the process of engineering. 334 00:14:06,120 --> 00:14:09,960 There's been a good body of research done here at MIT. 335 00:14:09,960 --> 00:14:13,740 And they produce the Product Development Value Stream 336 00:14:13,740 --> 00:14:14,580 Mapping manual. 337 00:14:14,580 --> 00:14:18,460 And this is authored by Hugh, who's in the back of the room. 338 00:14:18,460 --> 00:14:21,330 The same basic techniques apply as you might do value stream 339 00:14:21,330 --> 00:14:25,440 mapping in the factory context to the engineering context, 340 00:14:25,440 --> 00:14:27,300 except that the flows are information rather 341 00:14:27,300 --> 00:14:29,790 than physical, and your value added 342 00:14:29,790 --> 00:14:32,100 steps help to transform this knowledge 343 00:14:32,100 --> 00:14:35,280 or to reduce the uncertainty, which is a primary role of why 344 00:14:35,280 --> 00:14:37,500 we do analysis in engineering. 345 00:14:37,500 --> 00:14:40,063 And if you're interested, you can consult this publication. 346 00:14:40,063 --> 00:14:41,730 There's a lot more material here than we 347 00:14:41,730 --> 00:14:44,970 can cover in this module. 348 00:14:44,970 --> 00:14:47,040 But let me give you some real-life examples 349 00:14:47,040 --> 00:14:50,160 of organizations that have applied product development 350 00:14:50,160 --> 00:14:53,130 value stream mapping and had some successes. 351 00:14:53,130 --> 00:14:55,770 So this is an example on the F16. 352 00:14:55,770 --> 00:14:57,540 And they had some particular problems 353 00:14:57,540 --> 00:15:01,002 with what they call their build-to-Package process. 354 00:15:01,002 --> 00:15:02,460 So if, for some reason, they needed 355 00:15:02,460 --> 00:15:04,830 to make changes to the build-to-packages, 356 00:15:04,830 --> 00:15:08,160 like you all have in front of you for your SIM, 357 00:15:08,160 --> 00:15:09,930 there was a big, long process that 358 00:15:09,930 --> 00:15:13,620 actually had to happen from I need a change to, 359 00:15:13,620 --> 00:15:15,960 OK, I can actually make a change. 360 00:15:15,960 --> 00:15:17,670 It numbered a lot of steps. 361 00:15:17,670 --> 00:15:19,740 You can kind of count them all here. 362 00:15:19,740 --> 00:15:21,638 It goes here, and then it goes down there, 363 00:15:21,638 --> 00:15:23,430 and then it goes all the way through there, 364 00:15:23,430 --> 00:15:27,880 and all the way through there before we get out to a change. 365 00:15:27,880 --> 00:15:31,690 So applying some of the tools of value stream mapping, 366 00:15:31,690 --> 00:15:36,160 the F16 build-to-package process was reduced down to something 367 00:15:36,160 --> 00:15:37,520 like this. 368 00:15:37,520 --> 00:15:39,220 So now, we had single-piece flow being 369 00:15:39,220 --> 00:15:40,990 able to go through the system. 370 00:15:40,990 --> 00:15:44,050 We had an allowance for parallel processing of tasks, 371 00:15:44,050 --> 00:15:47,470 rather than single processing of tasks. 372 00:15:47,470 --> 00:15:49,180 Concurrent engineering principles 373 00:15:49,180 --> 00:15:51,400 were brought in to help achieve this kind of leanness 374 00:15:51,400 --> 00:15:53,650 in process, as well as co-location 375 00:15:53,650 --> 00:15:56,440 of all the various different units between design, 376 00:15:56,440 --> 00:15:59,980 and manufacturing, and quality that 377 00:15:59,980 --> 00:16:01,990 needed to be co-located to accomplish this. 378 00:16:05,322 --> 00:16:06,780 And if you wanted some illustration 379 00:16:06,780 --> 00:16:08,740 of the results that can be achieved, 380 00:16:08,740 --> 00:16:11,260 we have that here in this slide. 381 00:16:11,260 --> 00:16:13,320 So this is actually a picture here 382 00:16:13,320 --> 00:16:15,810 of the build-to-package support center 383 00:16:15,810 --> 00:16:19,140 that resulted from this value stream mapping activity. 384 00:16:19,140 --> 00:16:21,520 It's a facility that's down on the shop floor. 385 00:16:21,520 --> 00:16:26,550 So it's very close to the things that they're trying to change. 386 00:16:26,550 --> 00:16:29,880 They created these kinds of improvements-- in cycle time, 387 00:16:29,880 --> 00:16:33,450 from getting a change request in to having implemented that, 388 00:16:33,450 --> 00:16:37,260 75% reduction of cycle time. 389 00:16:37,260 --> 00:16:42,480 Process steps were reduced by 40%, handoffs by 75%, 390 00:16:42,480 --> 00:16:45,330 and travel distance of the information, and paperwork, 391 00:16:45,330 --> 00:16:49,270 and so on was reduced by 90%. 392 00:16:49,270 --> 00:16:52,260 These are very, very real kinds of savings 393 00:16:52,260 --> 00:16:54,780 that can be achieved in the engineering process 394 00:16:54,780 --> 00:16:59,680 by the application of value stream mapping techniques. 395 00:16:59,680 --> 00:17:02,350 Now, we're going to move on to the second concept 396 00:17:02,350 --> 00:17:03,760 that we'd like you to take away. 397 00:17:03,760 --> 00:17:06,970 And that is that engineering plays a critical role 398 00:17:06,970 --> 00:17:09,099 in creating value in the enterprise. 399 00:17:09,099 --> 00:17:11,740 So we've just seen how we can apply some of our lean thinking 400 00:17:11,740 --> 00:17:13,210 techniques-- including value stream 401 00:17:13,210 --> 00:17:16,908 mapping, the concepts of waste, and so on-- to the process. 402 00:17:16,908 --> 00:17:18,700 But then, there's a really important reason 403 00:17:18,700 --> 00:17:20,920 why we want to lean out the engineering process. 404 00:17:20,920 --> 00:17:22,930 Because it's a key enabler for lean 405 00:17:22,930 --> 00:17:27,040 in the rest of the enterprise. 406 00:17:27,040 --> 00:17:30,440 The reason for that is represented here on this chart. 407 00:17:30,440 --> 00:17:33,190 So we have on the y-axis, essentially, 408 00:17:33,190 --> 00:17:35,230 the percentage of your lifecycle budget 409 00:17:35,230 --> 00:17:36,910 that you might attribute to these. 410 00:17:36,910 --> 00:17:39,490 And here on the x-axis, we have lifecycle phases, 411 00:17:39,490 --> 00:17:40,900 starting from concept development 412 00:17:40,900 --> 00:17:43,165 through detailed design, production use, and disposal. 413 00:17:46,990 --> 00:17:48,740 Here, we show various curves. 414 00:17:48,740 --> 00:17:51,850 So as you go through the engineering design process, 415 00:17:51,850 --> 00:17:54,160 you as engineers are making choices. 416 00:17:54,160 --> 00:17:56,200 You decide to use a particular material. 417 00:17:56,200 --> 00:17:57,790 You decide on a particular design. 418 00:17:57,790 --> 00:18:00,070 That has manufacturing implications, performance 419 00:18:00,070 --> 00:18:02,240 implications, and so on. 420 00:18:02,240 --> 00:18:04,450 And as you make those choices, which 421 00:18:04,450 --> 00:18:06,400 are right here in conceptual design, 422 00:18:06,400 --> 00:18:10,330 you are determining a priori the cost 423 00:18:10,330 --> 00:18:13,780 of that system by your choices. 424 00:18:13,780 --> 00:18:17,350 At the same time as we move through this process, 425 00:18:17,350 --> 00:18:20,830 the leverage that management has to make any changes 426 00:18:20,830 --> 00:18:22,960 starts to go down dramatically, because a lot 427 00:18:22,960 --> 00:18:27,280 of the knowledge and the cost is being committed there. 428 00:18:27,280 --> 00:18:29,050 But as cost is being committed early, 429 00:18:29,050 --> 00:18:31,330 it's really not being incurred by your organization 430 00:18:31,330 --> 00:18:32,290 for a while. 431 00:18:32,290 --> 00:18:33,970 Because you're not buying materials, 432 00:18:33,970 --> 00:18:37,000 you're not bending metal, you're not into the expensive parts. 433 00:18:37,000 --> 00:18:38,440 That starts to happen over here. 434 00:18:38,440 --> 00:18:41,110 But yet, you've already decided it way back here 435 00:18:41,110 --> 00:18:42,880 in conceptual design. 436 00:18:42,880 --> 00:18:45,190 And a similar curve is shown for knowledge. 437 00:18:45,190 --> 00:18:47,110 This is what we know about the design 438 00:18:47,110 --> 00:18:49,660 of the product, the performance, the quality, the use, 439 00:18:49,660 --> 00:18:51,490 the reliability, and so on. 440 00:18:51,490 --> 00:18:53,140 As you start out early in a design, 441 00:18:53,140 --> 00:18:54,820 you just don't know a lot about it. 442 00:18:54,820 --> 00:18:57,790 It's a process of discovery, and analysis, and refinement. 443 00:18:57,790 --> 00:19:00,250 And that knowledge grows as you go further down 444 00:19:00,250 --> 00:19:02,290 in the lifecycle phase. 445 00:19:02,290 --> 00:19:07,030 But it doesn't grow nearly as fast as you're committing cost 446 00:19:07,030 --> 00:19:07,550 to that. 447 00:19:07,550 --> 00:19:09,280 So there's a lot of uncertainties 448 00:19:09,280 --> 00:19:11,920 that exist in the process. 449 00:19:11,920 --> 00:19:13,600 But it's this extreme leverage that we 450 00:19:13,600 --> 00:19:15,700 have up here in concept development 451 00:19:15,700 --> 00:19:19,683 to determine all of the properties of our system 452 00:19:19,683 --> 00:19:21,100 that's so fundamentally important. 453 00:19:21,100 --> 00:19:22,660 And this is why lean thinking needs 454 00:19:22,660 --> 00:19:23,860 to start with engineering. 455 00:19:23,860 --> 00:19:26,290 Because the engineers are making those critical choices 456 00:19:26,290 --> 00:19:29,290 that are going to determine cost, and performance, 457 00:19:29,290 --> 00:19:33,280 and reliability, and safety, and usability, and maintainability, 458 00:19:33,280 --> 00:19:33,970 and so on. 459 00:19:36,680 --> 00:19:39,560 So lean engineering is really about doing the right thing 460 00:19:39,560 --> 00:19:40,130 right. 461 00:19:40,130 --> 00:19:41,750 It's got three components to it. 462 00:19:41,750 --> 00:19:44,130 You first have to create the right products. 463 00:19:44,130 --> 00:19:46,280 You have to do that with effective enterprise 464 00:19:46,280 --> 00:19:48,110 and lifecycle integration. 465 00:19:48,110 --> 00:19:50,960 And you have to use efficient engineering processes. 466 00:19:50,960 --> 00:19:53,220 And we're going to take each of those in turn. 467 00:19:53,220 --> 00:19:56,300 So creating the right product means focusing on the customer. 468 00:19:56,300 --> 00:19:59,120 And to do that, you have to shift some resources up front 469 00:19:59,120 --> 00:20:02,000 to the conceptual design process so that you can spend 470 00:20:02,000 --> 00:20:04,910 enough time to really make the right choices 471 00:20:04,910 --> 00:20:07,820 about the product. 472 00:20:07,820 --> 00:20:09,995 Effective enterprise and lifecycle integration 473 00:20:09,995 --> 00:20:11,870 means that we should use our lean engineering 474 00:20:11,870 --> 00:20:14,780 tools so we can create value throughout the product 475 00:20:14,780 --> 00:20:19,300 lifecycle and enterprise, and being efficient while we do so, 476 00:20:19,300 --> 00:20:21,800 so apply the lean thinking to eliminate waste 477 00:20:21,800 --> 00:20:25,260 and improve the processes of engineering. 478 00:20:25,260 --> 00:20:26,760 So starting out with our first point 479 00:20:26,760 --> 00:20:29,070 about creating the right products, 480 00:20:29,070 --> 00:20:30,750 how do you know what's right? 481 00:20:30,750 --> 00:20:33,360 The customer is the one who specifies that for you. 482 00:20:33,360 --> 00:20:35,610 And generally, when they're thinking about value, 483 00:20:35,610 --> 00:20:37,950 they have got four large elements in mind 484 00:20:37,950 --> 00:20:39,610 that sum up to be their value. 485 00:20:39,610 --> 00:20:41,880 There are some elements of features, and performance, 486 00:20:41,880 --> 00:20:42,900 and quality. 487 00:20:42,900 --> 00:20:45,300 There's some element of schedule and when I can get it. 488 00:20:45,300 --> 00:20:48,310 There's an element of cost that they have to pay for that. 489 00:20:48,310 --> 00:20:51,090 And then there's some element of price-- 490 00:20:51,090 --> 00:20:55,180 of what it costs you to make that. 491 00:20:55,180 --> 00:20:57,300 And if you think to any purchase that you make, 492 00:20:57,300 --> 00:21:00,180 you are either consciously or unconsciously balancing 493 00:21:00,180 --> 00:21:02,970 all these parts that equate to value 494 00:21:02,970 --> 00:21:04,650 of a product in your mind. 495 00:21:04,650 --> 00:21:06,960 So you may want a computer that has 496 00:21:06,960 --> 00:21:09,480 a certain kind of performance and price to you. 497 00:21:09,480 --> 00:21:11,387 But if you can't get it for four weeks, 498 00:21:11,387 --> 00:21:13,470 you may decide that that's not really a good value 499 00:21:13,470 --> 00:21:14,490 proposition for you. 500 00:21:14,490 --> 00:21:17,580 And you may choose to set some other combination of attributes 501 00:21:17,580 --> 00:21:19,260 for yourself that really defines value. 502 00:21:23,410 --> 00:21:26,635 Engineering drives the cost of all the products. 503 00:21:29,820 --> 00:21:32,220 So 80% of the product's cost is determined 504 00:21:32,220 --> 00:21:35,430 through the engineering design when these choices are made. 505 00:21:35,430 --> 00:21:37,860 So the number of parts that you have, 506 00:21:37,860 --> 00:21:40,530 every part costs some money. 507 00:21:40,530 --> 00:21:42,330 Parts have to be inventoried. 508 00:21:42,330 --> 00:21:43,920 Parts have to be designed. 509 00:21:43,920 --> 00:21:47,460 Parts have to be transported, they have to be maintained, 510 00:21:47,460 --> 00:21:49,660 they have to be quality controlled, and so on. 511 00:21:49,660 --> 00:21:53,280 And each of those actions incurs a particular cost, as well as 512 00:21:53,280 --> 00:21:54,210 tolerances on parts. 513 00:21:54,210 --> 00:21:56,460 I'm sure some of you who have gone through engineering 514 00:21:56,460 --> 00:21:59,610 classes have talked about how strict tolerances can really 515 00:21:59,610 --> 00:22:01,740 increase the cost of producing a product. 516 00:22:01,740 --> 00:22:03,420 Whereas if you relax tolerances, you 517 00:22:03,420 --> 00:22:06,780 may get to a slightly lower cost on your parts. 518 00:22:06,780 --> 00:22:09,630 You can think of assembly techniques-- different assembly 519 00:22:09,630 --> 00:22:11,920 techniques cost different amounts of money, 520 00:22:11,920 --> 00:22:14,670 some are much more complex and complicates-- as well as 521 00:22:14,670 --> 00:22:17,550 processes to treat raw materials, 522 00:22:17,550 --> 00:22:20,160 and the tooling approach that you might use, again, 523 00:22:20,160 --> 00:22:22,920 that ranges from cheaper to more expensive. 524 00:22:22,920 --> 00:22:26,843 Materials-- if you want to build something out of titanium, 525 00:22:26,843 --> 00:22:28,260 it's going to cost you differently 526 00:22:28,260 --> 00:22:31,680 than to build it out of other materials. 527 00:22:31,680 --> 00:22:34,500 Avionics and software, design complexity, 528 00:22:34,500 --> 00:22:37,320 whether or not you're reusing previous design efforts-- 529 00:22:37,320 --> 00:22:40,230 these all contribute to the product's cost. 530 00:22:40,230 --> 00:22:42,790 And these are choices that the engineer is making. 531 00:22:42,790 --> 00:22:45,240 So this is, yet again, another illustration 532 00:22:45,240 --> 00:22:47,670 of why it's so important to try to make the right choices, 533 00:22:47,670 --> 00:22:51,660 spend the amount of time you need to do that up front. 534 00:22:51,660 --> 00:22:55,560 This is a reflection back to our suppliers talk. 535 00:22:55,560 --> 00:22:56,790 Don't forget suppliers. 536 00:22:56,790 --> 00:22:59,430 They're a critical component of your design 537 00:22:59,430 --> 00:23:02,820 and ensuring that you have the right cost on your system. 538 00:23:02,820 --> 00:23:05,897 Typically, 60% to 80% of value is added by suppliers. 539 00:23:05,897 --> 00:23:07,980 So when you think about the engineering processes, 540 00:23:07,980 --> 00:23:10,770 don't neglect them. 541 00:23:10,770 --> 00:23:14,850 One of the best practices for achieving the engineering 542 00:23:14,850 --> 00:23:18,180 result that you want is to use integrated product and process 543 00:23:18,180 --> 00:23:20,310 development. 544 00:23:20,310 --> 00:23:23,400 It's a concept that utilizes a couple of elements-- first, 545 00:23:23,400 --> 00:23:25,200 the principles of systems engineering 546 00:23:25,200 --> 00:23:28,410 to translate your customer needs into a product architecture 547 00:23:28,410 --> 00:23:33,043 and a set of specifications; using integrated product teams 548 00:23:33,043 --> 00:23:34,710 so that you can bring knowledge from all 549 00:23:34,710 --> 00:23:38,700 the different lifecycle parts into your engineering activity. 550 00:23:38,700 --> 00:23:40,650 Remember, we talked about the cost committed 551 00:23:40,650 --> 00:23:43,920 early on in the engineering activity and the uncertainty 552 00:23:43,920 --> 00:23:45,030 of knowledge. 553 00:23:45,030 --> 00:23:48,480 One way to increase the amount of knowledge you have 554 00:23:48,480 --> 00:23:51,120 is to bring people in from all the different lifecycle phases. 555 00:23:51,120 --> 00:23:53,280 So bring someone in from manufacturing. 556 00:23:53,280 --> 00:23:56,880 Bring someone in from the customer community who uses it. 557 00:23:56,880 --> 00:23:59,590 Bring somebody in from all the different parts 558 00:23:59,590 --> 00:24:04,770 so that you can increase your knowledge as early as you can. 559 00:24:04,770 --> 00:24:08,080 Third, the IPPD approach utilizes modern engineering 560 00:24:08,080 --> 00:24:08,580 tools. 561 00:24:08,580 --> 00:24:10,455 And we're going to give some examples of that 562 00:24:10,455 --> 00:24:11,560 in a few slides. 563 00:24:11,560 --> 00:24:13,560 And it all can't really function unless we've 564 00:24:13,560 --> 00:24:15,150 got the right kind of human resources 565 00:24:15,150 --> 00:24:17,370 on board, which may require a certain skill set 566 00:24:17,370 --> 00:24:19,150 or certain set of people. 567 00:24:19,150 --> 00:24:21,870 So it's not just that you have capable tools, 568 00:24:21,870 --> 00:24:23,970 you need capable processes, and you 569 00:24:23,970 --> 00:24:27,880 need capable people to actually execute this successfully. 570 00:24:27,880 --> 00:24:31,590 So here's a list of some of our tools of lean engineering. 571 00:24:31,590 --> 00:24:34,200 And I'm also going to show a couple of detailed examples 572 00:24:34,200 --> 00:24:37,090 in the next couple of slides. 573 00:24:37,090 --> 00:24:40,650 So we have digital tools that increase 574 00:24:40,650 --> 00:24:45,000 the timing of handoffs, decrease waiting, increase quality. 575 00:24:45,000 --> 00:24:47,730 There are production simulation tools that you can use, 576 00:24:47,730 --> 00:24:49,230 which are much cheaper on a computer 577 00:24:49,230 --> 00:24:51,647 than actually having to go out, and build a physical part, 578 00:24:51,647 --> 00:24:53,490 and try to play around with that. 579 00:24:53,490 --> 00:24:55,560 You can think about common parts and specs 580 00:24:55,560 --> 00:24:59,700 in reusing design, the design for manufacturing assembly, 581 00:24:59,700 --> 00:25:03,150 which we're going to talk about in the context of our planes, 582 00:25:03,150 --> 00:25:03,840 and so on. 583 00:25:03,840 --> 00:25:08,220 All of these are very useful tools for lean engineering. 584 00:25:08,220 --> 00:25:11,100 And to show you that these are being used out in industry, 585 00:25:11,100 --> 00:25:14,670 this is an example from Boeing. 586 00:25:14,670 --> 00:25:16,650 This shows you how they brought together 587 00:25:16,650 --> 00:25:19,680 various different digital tools that went 588 00:25:19,680 --> 00:25:21,420 into producing the hardware. 589 00:25:21,420 --> 00:25:25,290 So they were able to use a CAD program 590 00:25:25,290 --> 00:25:27,390 to do different layouts and three-dimensional 591 00:25:27,390 --> 00:25:28,410 visualizations. 592 00:25:28,410 --> 00:25:31,590 They had a parametric solids modeling tool. 593 00:25:31,590 --> 00:25:35,100 They had some assembly models that were done in 3D CAD. 594 00:25:35,100 --> 00:25:38,370 They electronically release their build-to-packages. 595 00:25:38,370 --> 00:25:42,420 They used a computer to simulate the manufacturing and assembly. 596 00:25:42,420 --> 00:25:44,880 And all this was done with far less cost 597 00:25:44,880 --> 00:25:48,150 than trying to go and build your hardware, 598 00:25:48,150 --> 00:25:51,945 and do all of your playing around in the physical space. 599 00:25:54,520 --> 00:25:57,550 So I'll give you an example of the production simulation. 600 00:25:57,550 --> 00:26:00,265 I need to break a moment and go into my movie. 601 00:26:05,770 --> 00:26:08,200 Let's move on to another tool of lean engineering, that's 602 00:26:08,200 --> 00:26:12,570 common parts and reusing designs. 603 00:26:12,570 --> 00:26:16,610 So if you're using common parts, and you're 604 00:26:16,610 --> 00:26:19,890 reducing the total part count as a result, 605 00:26:19,890 --> 00:26:22,550 you're reducing costs, because every part that you don't have 606 00:26:22,550 --> 00:26:27,020 to design, you don't have to manufacture, and QC, and tag, 607 00:26:27,020 --> 00:26:28,820 and everything. 608 00:26:28,820 --> 00:26:30,740 These are some great illustrations 609 00:26:30,740 --> 00:26:34,010 of trying to use what we call mirror parts. 610 00:26:34,010 --> 00:26:36,282 Do you need to have parts designed differently 611 00:26:36,282 --> 00:26:38,240 for the right hand side and the left hand side? 612 00:26:38,240 --> 00:26:40,520 Could you reconceive your design such 613 00:26:40,520 --> 00:26:42,593 that they used a common part? 614 00:26:42,593 --> 00:26:44,885 And this would then save on the number of unique parts. 615 00:26:47,530 --> 00:26:51,550 Also have to realize that common parts can increase 616 00:26:51,550 --> 00:26:54,490 the quality of your design-- 617 00:26:54,490 --> 00:26:56,170 less points of potential failure, 618 00:26:56,170 --> 00:26:59,800 less points of uncertainty, fewer moving 619 00:26:59,800 --> 00:27:03,610 parts in your manufacturing process, less room-- 620 00:27:03,610 --> 00:27:05,200 I'm sorry, fewer mistakes to be made 621 00:27:05,200 --> 00:27:06,600 in mistaking one part for another 622 00:27:06,600 --> 00:27:10,290 if I've got all common parts and so on. 623 00:27:10,290 --> 00:27:12,890 So let's talk about part count reduction. 624 00:27:12,890 --> 00:27:14,900 This is largely a goal of what's called design 625 00:27:14,900 --> 00:27:16,730 for manufacturing and assembly. 626 00:27:16,730 --> 00:27:18,230 So I'd like some input from you guys 627 00:27:18,230 --> 00:27:20,765 on why we would reduce part count? 628 00:27:20,765 --> 00:27:23,390 We've covered a lot already, so you can kind of shout them out. 629 00:27:26,660 --> 00:27:27,840 AUDIENCE: Faster assembly. 630 00:27:27,840 --> 00:27:30,080 ANNALISA WEIGEL: Faster assembly. 631 00:27:30,080 --> 00:27:32,850 What else? 632 00:27:32,850 --> 00:27:34,640 AUDIENCE: Easier for your supplier. 633 00:27:34,640 --> 00:27:36,348 ANNALISA WEIGEL: Easier for the supplier. 634 00:27:36,348 --> 00:27:37,568 Thank you, Mr. supplier. 635 00:27:37,568 --> 00:27:38,610 Thank you, that was good. 636 00:27:38,610 --> 00:27:38,960 Yes? 637 00:27:38,960 --> 00:27:40,010 AUDIENCE: Less variation-- 638 00:27:40,010 --> 00:27:41,343 ANNALISA WEIGEL: Less variation, 639 00:27:41,343 --> 00:27:43,512 AUDIENCE: --to get tolerance build-ups? 640 00:27:43,512 --> 00:27:44,720 ANNALISA WEIGEL: Yes, indeed. 641 00:27:44,720 --> 00:27:48,853 Does everybody catch that, the concept of tolerance build-ups? 642 00:27:48,853 --> 00:27:50,270 If you're reducing the part count, 643 00:27:50,270 --> 00:27:52,480 each part has a specific tolerance to it. 644 00:27:52,480 --> 00:27:54,140 The more parts you label together, 645 00:27:54,140 --> 00:27:55,910 kind of that-- the bigger that uncertainty 646 00:27:55,910 --> 00:27:57,615 in potential tolerance grows. 647 00:27:57,615 --> 00:28:00,230 If fewer parts, that comes down. 648 00:28:00,230 --> 00:28:00,768 What else? 649 00:28:00,768 --> 00:28:01,310 That is good. 650 00:28:01,310 --> 00:28:03,690 AUDIENCE: Less chance of delivering mistakes? 651 00:28:03,690 --> 00:28:05,690 ANNALISA WEIGEL: Fewer chances to make mistakes, 652 00:28:05,690 --> 00:28:07,760 because every part I handle has some probability that I'm 653 00:28:07,760 --> 00:28:09,860 going to make a mistake with it, and I have a few of those. 654 00:28:09,860 --> 00:28:10,820 Yeah, what else? 655 00:28:14,096 --> 00:28:17,260 AUDIENCE: In many designs, increasing part count 656 00:28:17,260 --> 00:28:18,656 requires increased lubrication. 657 00:28:18,656 --> 00:28:21,870 And oftentimes, joints and things-- 658 00:28:21,870 --> 00:28:23,575 the more parts you have, the more 659 00:28:23,575 --> 00:28:27,782 need for lubrication, more work, [INAUDIBLE].. 660 00:28:27,782 --> 00:28:30,050 ANNALISA WEIGEL: Sure, so operational considerations 661 00:28:30,050 --> 00:28:31,580 that you might want to think about. 662 00:28:31,580 --> 00:28:33,650 And what are others? 663 00:28:33,650 --> 00:28:35,540 [INAUDIBLE]? 664 00:28:35,540 --> 00:28:37,570 AUDIENCE: Simplifying the supply chain? 665 00:28:37,570 --> 00:28:39,830 ANNALISA WEIGEL: Simplifying the supply chain, yep. 666 00:28:39,830 --> 00:28:40,340 Others? 667 00:28:40,340 --> 00:28:40,893 Go ahead. 668 00:28:40,893 --> 00:28:42,310 AUDIENCE: Depends on situation, it 669 00:28:42,310 --> 00:28:45,530 could be cheaper [INAUDIBLE]. 670 00:28:45,530 --> 00:28:48,028 ANNALISA WEIGEL: Right, yes, it reduces cost. 671 00:28:48,028 --> 00:28:49,820 That's what your boss really wants to hear. 672 00:28:49,820 --> 00:28:52,520 It's going to reduce some cost for the enterprise. 673 00:28:52,520 --> 00:28:53,990 We've covered almost all of these. 674 00:28:53,990 --> 00:28:56,660 They were-- excellent discussion, and some others 675 00:28:56,660 --> 00:29:00,255 that we brought up that aren't quite on this list. 676 00:29:00,255 --> 00:29:01,880 It's important to keep in mind, though, 677 00:29:01,880 --> 00:29:05,600 that sometimes, but not all the time, reducing your part count 678 00:29:05,600 --> 00:29:08,090 would require some performance trades. 679 00:29:08,090 --> 00:29:10,680 So cost and schedule savings may be big, 680 00:29:10,680 --> 00:29:13,268 but you may be trading off a little bit of performance. 681 00:29:13,268 --> 00:29:14,810 And if your customer is OK with that, 682 00:29:14,810 --> 00:29:17,420 then everybody wins in the end. 683 00:29:17,420 --> 00:29:19,790 One particular aspect in aerospace systems 684 00:29:19,790 --> 00:29:22,410 is, of course, mass when you're thinking about that. 685 00:29:22,410 --> 00:29:25,850 And sometimes, going to common parts and fewer parts 686 00:29:25,850 --> 00:29:28,220 can increase mass, which may sort of dictate 687 00:29:28,220 --> 00:29:30,800 a performance ding to the system, but like I said, 688 00:29:30,800 --> 00:29:31,430 not always. 689 00:29:31,430 --> 00:29:34,190 And I think I'll show you an example later on that 690 00:29:34,190 --> 00:29:36,390 demonstrates that really clearly. 691 00:29:36,390 --> 00:29:40,370 So what I want to do now is take you into an active learning 692 00:29:40,370 --> 00:29:41,120 exercise. 693 00:29:41,120 --> 00:29:44,300 And we're going to think about applying these lean engineering 694 00:29:44,300 --> 00:29:47,810 principles and practices to redesigning 695 00:29:47,810 --> 00:29:51,420 your airplane with a goal for part count reduction, 696 00:29:51,420 --> 00:29:55,370 and designing for manufacturing and assembly. 697 00:29:55,370 --> 00:29:57,770 So your first goal is to satisfy the customer. 698 00:29:57,770 --> 00:30:00,410 And the customer has a couple of desires. 699 00:30:00,410 --> 00:30:03,740 They want the mold line of the airplane to remain the same-- 700 00:30:03,740 --> 00:30:04,890 exactly the same. 701 00:30:04,890 --> 00:30:07,850 So this is the outer shape. 702 00:30:07,850 --> 00:30:10,970 The customer also requires that the landing gear-- 703 00:30:10,970 --> 00:30:12,800 but just the landing gear-- 704 00:30:12,800 --> 00:30:14,090 must be brown. 705 00:30:14,090 --> 00:30:16,185 So it comes from a particular kind of material, 706 00:30:16,185 --> 00:30:17,810 and the customer feels that they really 707 00:30:17,810 --> 00:30:20,240 need the strength of that material on the landing gear. 708 00:30:20,240 --> 00:30:23,520 So those have to stay the way they are. 709 00:30:23,520 --> 00:30:27,030 Thirdly, the customer has the desire for in-service quality 710 00:30:27,030 --> 00:30:28,170 to go up. 711 00:30:28,170 --> 00:30:30,530 Right now, the airplane is kind of fragile. 712 00:30:30,530 --> 00:30:32,280 You may have been handling a full airplane 713 00:30:32,280 --> 00:30:34,230 and noticed that the tail section tends 714 00:30:34,230 --> 00:30:35,760 to break off quite easily. 715 00:30:35,760 --> 00:30:39,160 Hugh will demonstrate. 716 00:30:39,160 --> 00:30:42,026 Oh, my goodness. 717 00:30:42,026 --> 00:30:48,470 [LAUGHS] So the wing is also, apparently a fragile part. 718 00:30:48,470 --> 00:30:51,043 It depends on where you hit the airplane. 719 00:30:51,043 --> 00:30:52,960 But for example, I was sitting at the customer 720 00:30:52,960 --> 00:30:53,860 mat at one table. 721 00:30:53,860 --> 00:30:55,330 I took delivery of an aircraft. 722 00:30:55,330 --> 00:30:58,120 And as soon as I grabbed it, the tail section fell off. 723 00:30:58,120 --> 00:30:59,060 This is a real thing. 724 00:30:59,060 --> 00:31:01,810 So perhaps, you can address the customer's desire 725 00:31:01,810 --> 00:31:04,860 for a slightly more robust design. 726 00:31:04,860 --> 00:31:06,457 And fourthly, as we've been talking 727 00:31:06,457 --> 00:31:08,040 about from the beginning, the customer 728 00:31:08,040 --> 00:31:11,700 really wants 12 airplane to be delivered per round. 729 00:31:11,700 --> 00:31:16,455 So they want you to increase the delivery quantities. 730 00:31:16,455 --> 00:31:18,830 You want to think about reducing your manufacturing cost, 731 00:31:18,830 --> 00:31:20,850 because this is good for your enterprise. 732 00:31:20,850 --> 00:31:23,600 So your parts are going to cost $5 per part, 733 00:31:23,600 --> 00:31:26,160 regardless of part. 734 00:31:26,160 --> 00:31:30,900 Less parts then equals more capacity for you. 735 00:31:30,900 --> 00:31:34,242 And thirdly, we want you to incorporate the suppliers. 736 00:31:34,242 --> 00:31:35,700 What kinds of innovations could you 737 00:31:35,700 --> 00:31:38,460 generate by working better with your suppliers? 738 00:31:38,460 --> 00:31:40,440 Could you reduce a part desercity? 739 00:31:40,440 --> 00:31:43,380 What else could you do applying lean engineering principles 740 00:31:43,380 --> 00:31:46,490 in concert with your supplier? 741 00:31:46,490 --> 00:31:49,660 So I'm going to give you about 20 minutes 742 00:31:49,660 --> 00:31:56,190 or so to talk in your teams and redesign your aircraft. 743 00:31:56,190 --> 00:31:58,302 You're going to work with your facilitator. 744 00:31:58,302 --> 00:31:59,760 And you need to demonstrate that it 745 00:31:59,760 --> 00:32:02,910 satisfies all of these criteria for the customer. 746 00:32:09,030 --> 00:32:12,166 [INTERPOSING VOICES] 747 00:32:19,812 --> 00:32:22,020 ANNALISA WEIGEL: All right, everybody take your seats 748 00:32:22,020 --> 00:32:24,720 again, please. 749 00:32:24,720 --> 00:32:28,320 I could tell you're all having fun redesigning your airplanes. 750 00:32:28,320 --> 00:32:29,868 Let me use the next couple of slides 751 00:32:29,868 --> 00:32:31,410 to finish out this module to give you 752 00:32:31,410 --> 00:32:35,670 some motivation for why lean engineering has been helpful 753 00:32:35,670 --> 00:32:36,370 in practice. 754 00:32:36,370 --> 00:32:40,180 I'm going to cite a couple of real world examples here. 755 00:32:40,180 --> 00:32:43,050 The first is an exercise in design for manufacturing 756 00:32:43,050 --> 00:32:44,880 assembly to reduce part counts. 757 00:32:44,880 --> 00:32:47,190 In the latest iteration of the F-18, called 758 00:32:47,190 --> 00:32:49,470 the E/F, the company the builds that 759 00:32:49,470 --> 00:32:52,110 went on a part count reduction exercise 760 00:32:52,110 --> 00:32:54,420 by employing design for manufacturing assembly 761 00:32:54,420 --> 00:32:55,560 techniques. 762 00:32:55,560 --> 00:32:58,470 In each of the major assemblies for the plane, 763 00:32:58,470 --> 00:33:00,090 they went and reduced the part counts 764 00:33:00,090 --> 00:33:02,940 from the C/D version, which was a previous iteration, 765 00:33:02,940 --> 00:33:04,390 to the E/F version. 766 00:33:04,390 --> 00:33:08,310 So in total, we went from having 14,000 plus parts in the C/D 767 00:33:08,310 --> 00:33:12,210 version, to having just over 8,000 parts in the E/F version. 768 00:33:12,210 --> 00:33:15,510 This was a 42% part count reduction. 769 00:33:15,510 --> 00:33:17,970 Now, we talked before about how sometimes, part count 770 00:33:17,970 --> 00:33:21,540 reductions come with sacrifices in performance. 771 00:33:21,540 --> 00:33:23,050 But this was not the case. 772 00:33:23,050 --> 00:33:25,350 So the F-18 E/F version turned out 773 00:33:25,350 --> 00:33:29,940 to be 25% more capable than its previous predecessor. 774 00:33:29,940 --> 00:33:32,635 So this was an excellent win-win situation. 775 00:33:32,635 --> 00:33:35,010 And not only was the customer happier about the increased 776 00:33:35,010 --> 00:33:37,200 performance, they were absolutely delighted 777 00:33:37,200 --> 00:33:40,530 by the lower cost of the plane, because parts that are not 778 00:33:40,530 --> 00:33:42,450 on the plane don't have to be designed, 779 00:33:42,450 --> 00:33:44,220 they don't have to be tooled, they 780 00:33:44,220 --> 00:33:45,960 don't have to be NC programmed, they 781 00:33:45,960 --> 00:33:49,103 don't have to be manufactured or assembled, anything. 782 00:33:49,103 --> 00:33:50,520 They don't have to be stored, they 783 00:33:50,520 --> 00:33:51,937 don't have to be inventoried, they 784 00:33:51,937 --> 00:33:55,230 don't have to be controlled, and they don't have to be scrapped. 785 00:33:55,230 --> 00:33:58,020 And if you have fewer parts, they 786 00:33:58,020 --> 00:34:00,820 don't need to have spare parts for those extra parts as well. 787 00:34:00,820 --> 00:34:03,120 So that reduced maintenance and repair costs. 788 00:34:03,120 --> 00:34:04,566 Question? 789 00:34:04,566 --> 00:34:06,680 AUDIENCE: Does the manufacture necessarily 790 00:34:06,680 --> 00:34:10,107 have to pass on the cost to the consumer [INAUDIBLE],, 791 00:34:10,107 --> 00:34:13,110 because I imagine quite a bit of time and money 792 00:34:13,110 --> 00:34:17,241 goes into R and D to try to get the cost [INAUDIBLE].. 793 00:34:17,241 --> 00:34:18,949 ANNALISA WEIGEL: Yeah, so there certainly 794 00:34:18,949 --> 00:34:22,742 was a lot of engineering costs to redesign the plane. 795 00:34:22,742 --> 00:34:24,409 And there was an interesting arrangement 796 00:34:24,409 --> 00:34:26,370 between this company and the government. 797 00:34:26,370 --> 00:34:28,940 So there was some, if you would call it, 798 00:34:28,940 --> 00:34:32,489 cost-saving sharing or profit sharing that went on. 799 00:34:32,489 --> 00:34:34,909 So the company was incented and rewarded 800 00:34:34,909 --> 00:34:36,623 for keeping costs down. 801 00:34:36,623 --> 00:34:38,540 They didn't have to give all that savings back 802 00:34:38,540 --> 00:34:39,139 to the government. 803 00:34:39,139 --> 00:34:40,429 They didn't get to keep it all either. 804 00:34:40,429 --> 00:34:41,887 But they got to keep enough that it 805 00:34:41,887 --> 00:34:45,230 was an incentive for them to actually meet these objectives. 806 00:34:45,230 --> 00:34:47,239 And at the time, this was somewhat 807 00:34:47,239 --> 00:34:49,820 of a radical way of thinking about government contracting 808 00:34:49,820 --> 00:34:51,360 as well. 809 00:34:51,360 --> 00:34:53,969 And that's not a trivial area to overlook. 810 00:34:53,969 --> 00:34:56,909 Because sometimes, those contracting and legal issues 811 00:34:56,909 --> 00:34:58,830 can keep you from doing what otherwise 812 00:34:58,830 --> 00:35:00,120 might seem very lean to you. 813 00:35:02,840 --> 00:35:05,330 Let's look at another example of how 814 00:35:05,330 --> 00:35:09,590 lean engineering tools helps reduce the manufacturing label. 815 00:35:09,590 --> 00:35:12,350 So what I'm showing you here on the y-axis 816 00:35:12,350 --> 00:35:15,200 is account of manufacturing labor in terms of hours. 817 00:35:15,200 --> 00:35:17,750 And on the x-axis is the number of production units 818 00:35:17,750 --> 00:35:18,870 that we have. 819 00:35:18,870 --> 00:35:21,830 So right here is where the first physical production 820 00:35:21,830 --> 00:35:23,750 unit is made. 821 00:35:23,750 --> 00:35:27,920 This blue line right here shows the labor hours 822 00:35:27,920 --> 00:35:31,880 per production unit before lean engineering processes and tools 823 00:35:31,880 --> 00:35:33,380 were applied. 824 00:35:33,380 --> 00:35:36,620 This curve down here shows the results 825 00:35:36,620 --> 00:35:39,680 after lean engineering processes were applied. 826 00:35:39,680 --> 00:35:43,190 And what happened was that nine units were actually 827 00:35:43,190 --> 00:35:46,760 built virtually before anything got to the manufacturing floor, 828 00:35:46,760 --> 00:35:49,280 such when they did get to the first physical unit 829 00:35:49,280 --> 00:35:51,380 that was produced, the total manufacturing 830 00:35:51,380 --> 00:35:52,910 hours to do that was significantly 831 00:35:52,910 --> 00:35:57,200 less than previously, before learning the lean tools. 832 00:35:57,200 --> 00:36:00,800 And in addition, the sort of steady-state manufacturing 833 00:36:00,800 --> 00:36:04,670 hours required for the same comparable kind of product 834 00:36:04,670 --> 00:36:10,330 was much lower, in the end, than using the non-lean processes. 835 00:36:10,330 --> 00:36:14,140 This is another example of how better engineering 836 00:36:14,140 --> 00:36:17,680 tools help reduce some of the costs associated. 837 00:36:17,680 --> 00:36:20,590 So on the y-axis here, we have a staffing level. 838 00:36:20,590 --> 00:36:23,470 And on the x-axis here, we have months 839 00:36:23,470 --> 00:36:25,960 from the end of the conceptual design phase. 840 00:36:25,960 --> 00:36:30,040 And this just shows the results of the design and IPT 841 00:36:30,040 --> 00:36:33,460 labor that was required for vehicles of comparable sizes. 842 00:36:33,460 --> 00:36:35,230 And what you see is that, as we slowly 843 00:36:35,230 --> 00:36:39,130 introduced different kinds and better of lean engineering 844 00:36:39,130 --> 00:36:41,650 tools, we were able to reduce the staffing level 845 00:36:41,650 --> 00:36:43,360 and shrink the time that was required 846 00:36:43,360 --> 00:36:44,710 to accomplish that milestone. 847 00:36:47,750 --> 00:36:51,190 And lastly, lean engineering enables faster delivery times. 848 00:36:51,190 --> 00:36:52,870 And particularly because spacecraft 849 00:36:52,870 --> 00:36:54,850 have such a slow reputation in the industry, 850 00:36:54,850 --> 00:36:56,980 I thought I'd show you a space example. 851 00:36:56,980 --> 00:36:59,950 This is Iridium, which is a satellite program. 852 00:36:59,950 --> 00:37:02,830 And where it's typical to have 12 to 18 months of cycle 853 00:37:02,830 --> 00:37:05,830 time in the satellite industry, this particular program 854 00:37:05,830 --> 00:37:08,110 accomplished a cycle time with 25 days, which 855 00:37:08,110 --> 00:37:09,962 was just literally unheard of. 856 00:37:09,962 --> 00:37:11,920 And they did it largely through the application 857 00:37:11,920 --> 00:37:14,770 of lean engineering and lean manufacturing practices 858 00:37:14,770 --> 00:37:17,570 to the program. 859 00:37:17,570 --> 00:37:21,400 So just to wrap up, we talked in this module 860 00:37:21,400 --> 00:37:25,240 about lean engineering, and how lean engineering can enable 861 00:37:25,240 --> 00:37:29,020 lean manufacturing, and how working with the supply chain, 862 00:37:29,020 --> 00:37:31,090 all these three things can come together 863 00:37:31,090 --> 00:37:34,690 to create affordability of our products across the enterprise 864 00:37:34,690 --> 00:37:38,650 through the application of lean, by reducing costs per unit 865 00:37:38,650 --> 00:37:41,340 as we go down the assembly line.