16.682 The Aerospace Industry March 30 Class Special Guest: Prof. Debbie Nightingale Plan for the Class 3:05-3:10 Announcements and Introductions 3:10-3:55 Lean Enterprises Discussion (Ch 6) 3:55-4:05 Break 4:05-4:50 Av Week Article Discussion 4:50-4:55 Muddy cards 4:55 Adjourn VISION 2016 ?People working together as a global enterprise for aerospace leadershipó* Boeing ? Forever New Frontiers* Core competencies Detailed customer knowledge and focus We will seek to understand, anticipate and be responsive to our customers? needs. Large-scale systems integration We will continuously develop, advance and protect the technical excellence that allows us to integrate effectively the systems we design and produce. Lean Enterprise * Our entire enterprise will be a Lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs. ? Values Leadership Integrity Quality Customer satisfaction People working together A diverse and involved team Good corporate citizenship Enhancing shareholder value ? ? *updated as of January 2001 Source: Lean Enterprise Value, Ch 6 “A lean enterprise is an integrated entity that efficiently creates value for the multiple stakeholders by employing lean principles and practices.” Lean Enterprises “A lean enterprise is an integrated entity that efficiently creates value for the multiple stakeholders by employing lean principles and practices.” Source: Lean Enterprise Value, Ch 6 ? Can we consider Course 16 as an Enterprise, and if so, what kind of enterprise is it? ? Who are the stakeholders for course 16 and what are their value expectations? ? How to the Lean Enterprise Model principles and practices apply to Course 16 activities? “Any group or individual who can affect or is affected by the achievement of the organization’s objective” Enterprise Stakeholders: A corporate example Corporate Leadership Employees Multi Program Enterprise Business Unit Customers/ End Users Shareholders UnionsSociety Partners “Any group or individual who can affect or is affected by the achievement of the organization’s objective” Suppliers Source: Lean Enterprise Value, Ch 6 Points Captured from Class Discussion Course 16 Stakeholders ? Students ? Professors ? Corporate sponsors – Hiring jobs – Research funds ?MIT ? Government sponsors – Hiring jobs – Research funds ?Staff ? Parents ?Alumni ? Other universities ? Professional societies ? Nation as a whole Value ? “How various stakeholders find particular worth, utility, benefit or reward in exchange for their respective contributions to the enterprise” Source: Lean Enterprise Value, Ch 7 Stakeholder: ____________ Major Factors Contributing to Stakeholder Value: High Current Performance Low Low High Relative Importance Stakeholder: Customer High Current Performance Low Low High Relative Importance Major Factors Contributing to Customer Value: ?Product/Service Quality ? ?Cost of Ownership ?Cycle Time Relationship with Corporation Stakeholder: Customer Major Factors Contributing to Customer Value: ?Product/Service Quality ?Cost of Ownership ?Relationship with Corporation ?Cycle Time High Current Performance Low Low High Relative Importance Cost Of Ownership Product Quality with Corp. Cycle Time /Service Relationship LEM Architecture and Overarching Practices Supporting Practices(~300) Supporting Practices(~300) Enabling Practices (~ 60) Metrics -Data - Barriers - Interactions Enabling Practices (~ 60) Metrics -Data - Barriers - Interactions Enterprise Level Metrics Enterprise Level Metrics Meta-Principles/Enterprise Principles Meta-Principles/Enterprise Principles Overarching Practices Overarching Practices Develop Relationships Based on Mutual Trust & Commitment Continuously Focus on the Customer Nurture a Learning Environment Ensure Process Capability and Maturation Assure Seamless Information Flow Optimize Capability & Utilization of People Identify & Optimize Enterprise Flow Implement Integrated Product & Process Development Maintain Challenge of Existing Processes Make Decisions at Lowest Possible Level Promote Lean Leadership at all Levels Maximize Stability in a Changing Environment Metrics -Data - Barriers - Interactions AvWeek Discussion ? In addition to your prompting questions for each article, consider: Are the principles of Lean Thinking relevant to this article, and why or why not?