Reduce Cycle Time-145

The Situation:

A recognized leading manufacturer of private/business jets had a need to reduce the cost of manufacturing and become profitable for the first time in the company’s history.

The Driver Goal:

• Reduce delivered cost per jet by $1,020,000 by 1st quarter
• Reduce lead time to 52 weeks by 1st quarter; 46 weeks by year end

• Developed and installed new operational standards for direct labor activities in Aero structures, Final Assembly, Paint, and Completions
• Re-engineered the support processes in Quality, Methods, and Procurement resulting in lower indirect cost per aircraft
• Revamped the change process and created a concurrent engineering environment resulting in earlier launch of engineering, less rework, shortened cycle time
• Developed and implemented an “Integrated Work Team” approach to product and process change
• Provided the ability to “hold the line” on support department additions as production rates climbed by 20% to 50%
• Revamped quality reporting and corrective action process
• Instructed teams of people in the three business units in basic Lean techniques and assisted them through Blitz activities
• Developed and implemented databases to manage defects, collect and prioritize projects and manage back shop operations
• Implemented a “War Room” to bring the leadership of the company together to discuss issues that would adversely affect deliveries. This was a major component of the most successful quarter (based on deliveries) in the history of the company.

• Achieved profit objectives in current year
• Created ability to budget higher profitability targets for next fiscal year
• Increased productivity by 20%
• Achieved lead time objectives