1. Driving Lean Transformation across a Matrix Organization
in Product Development and One-Off Production
One Off
“Making Big Lean STICK”
Making STICK
Kevin Naya
K i N

2. How is a satellite like a fruit fly?
1-5 year program life cycle 2 week life cycle
Rapid
R id evolution
l ti Rapid
R id evolution
l ti
Being used to develop Lean in PD Used in genetic research
Satellites are the fruit flies of Aerospace
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3. Enterprise Environment What is “Big”?
Complexities of a large, interdependent organization Bureaucracy
Existence of cultural norms and resistance to change Old School
Rigid process documentation and policing Red Tape
Lack of management focus Alphabet Soup
No change management structure Firefighting
Matrix of shared accountability CYA
Disciplined
Di i li d reporting
ti Silo
Sil
Leadership turnover New Boss Again
Hopefully competitors are in the SAME environment
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4. Lesson 1: Seed Your Lean Transformation
2007
Leadership – Collaboration, Alignment
People – Engagement, Inclusion, Teaming
Partnering – Customers, Suppliers, Internal
2006
People & Culture – EI Teams Change Agent, Leadership
Teams, Agent
Throughput – TOC, Critical Chain
Communication – Multi-channel
2005
Integrated Improvement Strategy
I dI S
Engineer First Pass Yield
COPQ – RCCA – Six Sigma
2004
Training/Education – Benchmarked LAI & Boeing Internal, Trained 2000+ Employees
Developed Assessments – Manufacturing, Engineering, Leaders/Compensation
Reward & Recognition – Cash Awards for Improvement Teams, Celebration Events
Training, benchmarking, celebration – leading indicators of change
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5. Lesson 2: Prioritize Quality and Throughput
First: Prioritize quality and mitigation of technical risk
● Open qualifications reduced 100% (was 105)
● Bad engineering changes from 51% to 16%
● Unit return rate reduced 100% (was 8%)
( )
● Cost of rework, repair, scrap reduced 70%
Second: Emphasize throughput
● On time engineering improved 40% (to 93%)
On-time
● Electronic unit on-time delivery = 97%
Bottom line results will fall out
● Electronic unit Cost Performance Index (CPI) = 0.98
● Consistently profitable
Achieve results by doing the right things first
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6. Lesson 3: Cultivate First Hand Observation
Gemba
● “The place where the truth can be found”
p
● “The place where you work to create value”
Gembutsu
● “Relevant things” or “real thing”
Get real facts and data
First Hand Observation
● A teacher
● An ff ti
A effective way to experience the truth
t i th t th
● The “Chalk Circle” (Masaaki Imai)
● Learn to see
– Workflow
– 7 Types of Waste
• Overproduction, Transportation, Motion, Waiting, Processing, Inventory, Defects
Work the crime scene, not the courtroom (conference room)
First hand observation is the reflex of a Lean culture
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7. Lesson 4: Make Everything Simple
1236 Steps
233 Steps Order Parts 255 Steps
Parts in Stores
Drawings
66 Steps
Start
Finish
Acquisition to Baseline
WAS
174 Steps
Assemble, Test, Ship
Assy starts 2 mo. ARO
13156 Steps
1st unit ships 9 mo. ARO
11192 Steps 77%
Parts to Assembly
Reduction
WAS in 9 weeks
13156
IS 3000
WAS IS
Rapid & dramatic improvement (30% margin lift) is possible
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8. Lesson 5: Make Everything Visible
Flight Software Validation Electronic Product Engineering
Run
R Analyze
A l Review
R i Revise
R i Route
FLOW
Manage engineering throughput Situational awareness, convergence
4 iterations of learning
g Create visuals, metrics, checklists
, ,
Cultivate the right environment Burn down developmental risks
Leadership, training, empowerment Define and measure “doneness”
Visibility, awareness, mutual understanding/purpose, collaboration
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9. Lesson 6: Manage All Types of WIP
Manage all types of WIP, especially WIP created by
management
Lean Implementation WIP
● Does your Kaizen (improvement event) end with 100% doneness?
– Or do you carry and track actions?
● Scope out events carefully to manage the workflow
● Make commitments to achieve 100% doneness during the Kaizen
How do you prioritize and focus?
● Change activities
● Leadership time
● Project tasks and reaction
– Don’t start tasks until you are ready to execute to completion
Focus is a controllable level for Throughput, speed, acceleration
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10. Lesson 7: Exploit the Synergy of the Tools
IMPROVEMENT
SYNERGY
First understand the problem, then apply the right solution
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11. Lesson 8: Keep Leveraging Your Strengths
Previous Now & Going Forward
Innovation Innovation
Great People Great People
Technical Excellence
Keep Technical Excellence
Problem Solvers Problem Solvers
Over-Optimism
Push Risk Management
90% Done Pull
Multi-task
Multi task 100% Done
Serial-task
Accept Waste
Eliminate Waste
Heroic Firefighting Transform Sound Planning
Traveled Risk Leadership Alignment
Optional Participation Meeting Commitments
M ti C it t
Rationalization Boeing Leverage
Isolation Business Excellence
Traveled Work Great Place to Work
Don’t throw the baby out with the bath water
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12. Lesson 9: Insist that Leaders Go First
Leadership
Lead change from the top down and inside out by modeling it, expecting it, being
vulnerable and willing to change ourselves
Motivation
Create a culture of openness, confront the brutal facts and establish the existence
of a burning platform
Passion
Engage your leaders in charting a course forward by developing the right
continuous improvement vision & roadmap and over communicating it
Inspiration
Involve o r
In ol e your people b in esting in effecti e Lean training b incl ding their ideas
by investing effective training, by including
and engaging them on improvement teams
Focused Execution
Set clear priorities, maximize the throughput of Lean improvements, and hold
leaders accountable for removing barriers incentivizing the right behavior and
barriers,
monitoring business results
Learning Organization
Create an organization that is continually learning, improving, celebrating and
striving to become a benchmark from which others can learn
g
Strong leadership, determination, trust, inspiration, humility
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13. Lesson 10: Apply Lean at 4 Organization Levels
Disallow Promote
Level 4: Enterprise
Silo Global Thinking – full support for the best Enterprise solutions Executive
Behavior Partnering – working and learning together to deliver results Teaming
Collaboration – develop win-win solutions using dialog & inclusion
Level 3: Value Stream
Status Quality – pride in doing things right and not passing on defects Flow of
Quo Throughput – making value flow consistently to the customer Value
Continuous Improvement – relentlessly eliminating waste
Level 2: Team
Disrespect Inclusion
Teams – natural work teams who maximize their contribution
&Exclusion & Teaming
Teaming – people working together to meet commitments
Teamwork – inclusion of diverse ideas toward the best solution
Lack of Level 1: Individual Energize
Personal Engagement – motivated employees doing meaningful work &
Growth Personal Productivity – organized employees who get things done Engage
Options Personal Growth – curious employees with a thirst for learning People
“Lead by making others more powerful” – Ben Zander
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14. Making Big Lean STICK – Top 10 Lessons
1. Seed Your Lean Transformation
2. Prioritize Quality and Throughput
3. Cultivate First Hand Observation
4.
4 Make Everything Simple
5. Make Everything Visible
6. Manage All Types of WIP
7. Exploit the Synergy of the Tools
8. Keep Leveraging Your Strengths
9. Insist that Leaders Go First
10. Apply Lean at 4 Organization Levels
A smart person learns from their mistakes
A wise person learns from those of others
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15. Favorite Quotes
ONCE YOU’VE CONVINCED ONE ENGINEER,
YOU VE
YOU’VE CONVINCED ONE ENGINEER
LEADERS GO FIRST,
EXCEPT WHEN THEY GO SECOND
AVAILABILITY IS NOT A SKILL SET
IT’S TOUGH TO TRANSFORM WITHOUT CHANGING
CHANGE IS A CONTACT SPORT
MY GUYS AT THE PENTAGON TELL ME I COULDN’T GET THAT DATA,
WHERE DID YOU GET IT?!!
Lean is…a journey, a way of life – have FUN and enjoy the journey !!
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16. Driving Lean Transformation across a Matrix Organization
in Product Development and One-Off Production
One Off
“Making Big Lean STICK”
Making STICK
Kevin Naya
K i N

17. About Kevin
Kevin loves to do things that have never been done before that make a
difference. He takes personal pride in helping to make Boeing and its talented
people the best they can possibly be.
Kevin’s currently leads Lean across Boeing Space and Intelligence Systems.
His executive leadership role is to align the leadership across programs, products
and functions to most effectively improve enterprise performance.
Kevin has 22 years of experience in high-tech product development, primarily
in the satellite industry. Over the last five years, he has been leading Lean and
industry years
business transformation. Formerly the Deputy General Manager of a Boeing
subsidiary, his role was to lead business transformation. Prior to that, Kevin worked
as a management consultant and had various roles including the acting Chief
Marketing Officer for a client’s new business venture. Earlier in his career at
g
Hughes Space Company he worked on a handful of successful Government
programs, including the GOES Weather Satellite and the Magellan Venus Radar
Mapper. Kevin was a communication system engineer and a communication
payload manager on a large program that received the NRO Gold Medal of
Distinguished Performance and the David Packard Award the Department of
Award,
Defense's highest award for acquisition.
Kevin holds a Bachelor of Science degree in electrical engineering from the
University of Hawaii with an informal minor in bodysurfing. He earned a Master of
Science degree in statistical communication from Stanford University and a Master
of Business Administration from the Anderson School at UCLA.
Kevin resides in Southern California with his wife and three children. His
hobbies include basketball, skiing and learning.
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