GE Aircraft Engines

The Transition to Lean Manufacturing in Lynn Engine Assembly Operation GE Aircraft Engines
Ernie Oliveira

Lean Manufacturing

Lean Aerospace Initiative Plenary Workshop Hyatt Regency Cambridge Mass. October 14,1998
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GE Aircraft Engines

Contents
I. II. III. IV. V. VI.
Lean Manufacturing
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Background Lean Journey Present Lean Systems Results Lessons Learned Future Direction

GE Aircraft Engines

GE Aircraft Engines-World s Leading Producer of Aircraft Propulsion Systems Lynn, Massachusetts has Engine Assembly and Component Manufacturing 4900 Employees 1.9 million square feet Home of the first U.S. Jet Engine Customer Profile Military Commercial
Lean Manufacturing

Marine and Industrial

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GE Aircraft Engines Customer Customer Requirements Requirements Defined Defined TAKT TAKT Supply Supply Chain Chain Integration Integration Engine Engine Assembly Assembly Redesigned Redesigned TAKT TAKT

Lean Journey

1998 & Beyond 1997 1996

1995
Transforming Transforming the theManufacturing Manufacturing Facilities Facilities

1994

1993 1992
Lean Manufacturing

Multi-Pronged Multi-ProngedApproach Approach... ...Totally TotallyIntegrated IntegratedEffort Effort

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GE Aircraft Engines Transforming TransformingEngine EngineAssembly Assemblyand andManufacturing ManufacturingFacilities Facilities

Lean Journey

1992
First Exposed to Lean Principles

1993
Converting to Cellular Mfg. Action Workouts / KAIZEN

1994
Tools Kitted & Stored @ Pointof-Use Right Sizing Equipment to Rectify Flow

1995
TAKT Time Based Manufacturing Conversion of Assembly Lines to Flow

1996
Computerized Picture Process Planning Standardized

1997
First moving track assembly flow line section - Pilot Integrating Six Sigma Quality to Support Flow

1998 ...
Make Value Flow Continuously Eliminate MUDA In Pursuit of Perfection

Materials Management Strategies Supply Chain Integration

Lean Manufacturing
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GE Aircraft Engines

Lean Journey

1992

1993

1994

1995

1996

1997

1998 ...

Transforming the Manufacturing Facilities Materials MaterialsManagement ManagementStrategies Strategies Localized Material Stockrooms established Material kitted by Workstation Materials Management Organization Established Replenishment Kanbans used on Engine Assembly Floor Material Kitting Distribution Centers Introduce Replenishment Kanban Routines to Sources Materials Kitted to Support Standard Work (TAKT) Transportable /Point of Use Kit Carts

Materials Classification Policy Established Supply Chain Integration

Lean Manufacturing

GE Aircraft Engines

Lean Journey

1992

1993

1994

1995

1996

1997

1998 ...

Transforming the Manufacturing Facilities Materials Management Strategies Supply SupplyChain ChainIntegration Integration Electronic Data Interchange with Suppliers Action Work-outs at Key Suppliers Kitting Major Components with Internal Sources Supplier Kitting and Inventory Management SkimKits Sources put on Direct Pull (Key Components)
Lean Manufacturing

Best Practice Sharing / Training with Customers on Lean Mfg. Techniques

Partnering with Customers for Lean Promotion

Expand Skim Kitting Supply at the Pull of the Customer Continue to Add Sources on Direct Pull
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GE Aircraft Engines

Present Lean Systems : - Transforming the Manufacturing Facilities - Materials Management Strategies - Supply Chain Integration

Transforming the Manufacturing Facilities

Q Plant & Equipment (Machinery & Workstations) arranged in Product Flow Lines, with Critical Path in a Straight Line Layout. Q Production TAKT Time Based with Standard Work-In-Process Inventories Q Synchronizing the Rate of Production to the Rate of Sales to Customers Q Feeder Cells are Configured to Integrate Major Components at Point of Consumption on Main Flow Line.
Breakthrough BreakthroughChange Change!!
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Lean Manufacturing

GE Aircraft Engines

Present Lean Systems : - Transforming the Manufacturing Facilities - Materials Management Strategies - Supply Chain Integration

Transforming the Manufacturing Facilities (cont.)

Q Maximizing Visual Management Principles Q Tools Kitted and Stored at Point-of-Use to Minimize the Waste of Searching Q Computerized Picture Process Planning for Greater Productivity, Quality Improvement & Cross-Training Q Action Workouts ( KAIZEN ) Accelerating Implementation & Continuous Improvement

Lean Manufacturing
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GE Aircraft Engines

Present Lean Systems : - Transforming the Manufacturing Facilities - Materials Management Strategies - Supply Chain Integration

Materials Management Strategies

Extended Part Cost

Q Material Stratification Policy for the material ordering & distribution process Q High $ Value Material:

Supplier Pull Integration High $ Material

Re-Order Point Replenishment Low $ Material

80%

~ 20% Part Number Base

Q Pull Material from GEAE Plants in Kit form in a Sequence that is Synchronized with the Assembly TAKT Time Q Derived from and Controlled by Engineering Bill of Material Q Contain Make and Buy Parts, by Major Module
Driving DrivingInventory InventoryTurnover TurnoverImprovement Improvementthrough throughImproved ImprovedDelivery Delivery Performance Performance& &Cycle CycleReduction Reduction Focused Focusedon onHigh High$ $Hardware Hardware
Lean Manufacturing
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GE Aircraft Engines

Present Lean Systems : - Transforming the Manufacturing Facilities - Materials Management Strategies - Supply Chain Integration

Materials Management Strategies (cont.)

Q Dual Container Replenishment Kanban Systems: Q Low $ Value Re-Order Point Policy Material ... Economic Ordering from Sources Q Process helping to Driving Inventory Availability/Delivery Q Material Presentation to Flow Lines Inventory More Visible Q Minimize Transactions of Replenishment Q Transportable & Point-of-Use Kit Carts (Minimize Parts Handling) Q Integration of Customer Field Spare Parts Requirements

Lean Manufacturing
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GE Aircraft Engines

Present Lean Systems : - Transforming the Manufacturing Facilities - Materials Management Strategies - Supply Chain Integration

Supply Chain Integration

Q Action Workouts with Key Suppliers (Over 200 Events Worldwide since 1993) Q Supplier Kitting and Inventory Management SkimKits: Q A Group of Parts that Ship Directly from One Supplier, and are Linked/ Consumed at a Single Work Station on Assembly Flow Line Q Skim Kits contain either Make or Buy Parts, not both. Q Sources on Direct Pull (Key Components, High $ parts) Q Partnering with Customers in Lean Promotion Q Electronic Data Interchange (EDI) being Utilized to Signal Replenishment & Pay Suppliers
Linking Linkingthe theentire entiresupplier supplierchain chain... ...to tosynchronize synchronizematerial materialflow flow
Lean Manufacturing
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GE Aircraft Engines

Results

The Bottom Line

Lean Performance Metrics Inventory Turnover Throughput ( Cycle Time ) Customer Delivery ( Weekly Purchase Order ) Quality ( Internal - DPU s / Engine ) Fill Rate - Availability ( Accumulated / Kitted Material ) Fill Rate - ROP Material ( Kanban Replenishment System ) Human Effort / Engine Improvement ( Actual Average ) 33% 35% 30% 28% 32% 80% 17%

Lean LeanManufacturing ManufacturingResults Resultsthroughout throughoutLynn LynnEngine EngineAssembly Assembly

Lean Manufacturing
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GE Aircraft Engines

Lessons Learned

Q Must be part of Business Strategy Q Business Leadership Team must be Continually Active Q Must Start with Top-Down Leadership, then Quickly Convert to Bottoms-Up Initiatives Q Must have a Lean Function with Dedicated Resources Q Sustaining Change is Difficult Q Ensure People are Trained in Lean Manufacturing Concepts Q Establish New Simple Measurements & Post Everywhere

Lean Manufacturing
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GE Aircraft Engines

Future Direction

Q Continue to Eliminate MUDA In Pursuit of Perfection via Action Workout/Kaizen. Q Manufacture and Supply at the Pull of our Customers Q Expand Replenishment Kanban Routines to Sources (GEAE Satellite Plants) Q Expand Supplier Kitting and Continue to Add Sources on Direct Pull Q Make Value Flow Continuously (Single Piece Flow) Q Deliver Class AParts Directly to Assembly Flow Line (Bypass Kitting) - Pull Q Utilize the Techniques of Lean and Flow to Sustain Competitive Advantage

Lean Manufacturing
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