Boeing Phantom Works Lean and Efficient Processes and Tools Dave Koshiba Program Manager Lean and Efficient Define and Produce (314) 233-7754

Lean Enterprise Thrusts Units Traditional Lean Cost Lean Engineering Parametric 3D Solids Dimensional Management Virtual Manufacturing Model Based Definition (Int/Ext) Single Source of Product Data Virtual Collaboration Lean Supplier Management Supplier Base Reduction Certified Suppliers Suppliers as Partners Electronic Commerce/CITIS IPT Participation Lean Manufacturing Throughput Studies Variability Reduction/SPC HPWOs AIWs Advanced Technology Assembly Operator Verification The Lean Enterprise for the Boeing Company has three major thrusts: Lean Engineering, Lean Manufacturing, and Lean Supplier Management. The ability of the enterprise to address each of the areas effectively, with appropriate processes and tools, is necessary for the achievement of Lean results. Yet, none of these three can achieve its full potential without leveraging the other two. The effectiveness with which the “boundaries” between any two are spanned may well be more important than the achievements of any individual thrust. Together, they are the foundation for remarkable gains at the enterprise level,”flattening” the traditional learning curve and moving toward rate independence. For Boeing Lean Engineering includes (list features) Lean Manufacturing includes (list features) Lean Supplier Management (list features) Yet, as we examine the basic assumption that 80-90% of product cost is “locked up” in the design, the ability to effectively implement engineering practices that result in savings for Manufacturing (including suppliers) is key to the achievement of end results.

Goals and Metrics Based on 2nd Generation Experience Boeing Improvement Goals Reduce Cycle Time Reduce Cost Improve Quality Non-Recurring Development First Unit Fab & Assy (T1) Recurring (Production) Support (O&S) 50% 66% 50% - 90% - 1 2 2 1 Based on Changes After Initial Release (REV’s, EO’s, DCN’s, etc) Based on Quality Tags per 1000 Std Hours Just as shared goals are important to the performance of any multi-disciplined team, and understanding of the customer’s goals are key to good design, Lean Engineering has moved beyond improvement goals which address only non-recurring development. While non-recurring effort are still monitored closely (in terms of cost, cycle time, and quality) goals include first unit fabrication & assembly, recurring costs, and support costs. Just as with non-recurring development, goals include cost, cycle and quality. Again, this is an explicit recognition that 80-90% of product cost is tied up in product. This set of goals begins to drive information sharing across functional boundaries. In order to have cost effective designs, a greater understanding of manufacturing is required in design. The “shared destiny” supports cross-functional communication and learning, encouraging earlier and more active participation of what we traditionally think of as “downstream” users/customers in the design process. 2 Explicit Recognition that 80% of Product Cost is Locked-in by Product Definition

Virtual Manufacturing Reduces Rework and Improves Learning Development in the Virtual Factory Affordable, Low Risk Deployment in the Real Factory Assembly/Tooling Validation Tooling Interference Checks Part to Part Interference Checks Optimized Sequence Flow Incorporates TUI’s Traditional T1 Savings T1 Savings in Rework and Product Definition Changes Mfg. Cost Production Units Boeing-Lean Engineering Public Release Control No. 00-010

Virtual Manufacturing Tools Support Lean Manufacturing Virtual Fabrication Virtual Factory Validation of NC Programs Elimination of Machine Collisions Reduction of PTO’s Reduced/Eliminated Rework Virtual Assembly Validation of Assembly Process Optimized Assembly Sequences Product Improvement Changes w/o Line Disruption Virtual Process Production Factory Simulation Based Work Instructions Increased Factory Throughput Improved Asset Utilization Enhanced Work Instructions Workforce Flexibility Lower Assembly Hours Virtual Manufacturing Validates the Product Definition, Optimizes the Manufacturing Plan and Costs, and Simplifies Worker Training and Work Instruction Quality

Supportability Tools Significantly Reduce Operations and Support Costs Development in the Virtual World, for Effective, Low Risk Deployment in the Real World So what are the benefits of VR? Early Support Concept Assessments Eliminates Physical Mock-Ups Reduces Personnel Requirements Safety Evaluations Improved System Integration Maintenance Rehearsal/Training Boeing-Lean Engineering Public Release Control No. 00-061

Forward Fuselage Development Conceptual Design Phase Lean Engineering Product Definition Process Significantly Reduce NonRecurring Cost and Cycle Time Forward Fuselage Development Total IPT Labor Prototype Wireframe Release EMD Wireframe with 2D Drawing Release Modern Programs Are Using: 3D Solid Model Master Definition - No Drawings Detail Available Much Earlier to Support Full, Data-Driven IPT Decisions Daily VR Reviews Virtual Manufacturing Improved Supplier Coordination and Concurrent Procurement Prototype 3D Solid Release Staffing Level What does in mean in terms of results? An examination of the Lean Engineering implementation compares nonrecurring cost and cycle across the three generations of product described earlier. Results are a reduction of approximately 50% in cycle time and 50% in staffing levels. We believe these results to be the product of changes in knowledge management and transfer, again process changes enabled by the application of 3D solid geometry. (List and describe the 5) Daily VR reviews as a forcing function for cross-boundary communication which enhances concurrent engineering and the achievements of small groups. Prototype 3D Solid Release - 2000 * Months from End of Conceptual Design Phase * Indicates results from vehicle of approximate size and work content of forward fuselage

Modeling & Simulation Applications Have Resulted Summary Significant Progress Made in Reducing Design Cycle Time and Personnel Early Redesign Efforts Demonstrated Manufacturing Benefits Simulation-Based Work Instructions Emerged as an Enabler for Improving Realization Factor Tools Have Been Developed That Facilitate Meaningful Up-Front Supportability Prototype Forebody Demonstrated the Full Potential of Lean Engineering Tools Simulation Has the Potential to Significantly Reduce Certification Cost and Cycle Time Modeling & Simulation Applications Have Resulted in a Paradigm Shift in Product Development Boeing-Lean Engineering Public Release Control No. 00-061