1. ETM 5131 – Capstone II Re-Development of New Component Implementation Process – Results By Scott Moeller

2. 2 Table of Contents Title Slide Number Introduction………………………………… 3 Problem Summary/Statement …………… 4 Alternatives Listed………..……………….. 7 Alternative #1 Summary/Findings………… 9 Alternative #2 Summary/Findings/Conclusions..11 Alternative #3 Summary/Findings/Conclusions..13 Alternative #1 Results………………………14 Conclusions and Recommendations…....19

3. 3 Introduction American Airlines modifies existing aircraft by installing new components for a various reasons

4. 4 Problem Summary/Statement Modifications have numerous problems Major Issues – Maintenance problems with ease of installation and removal of new components still exist (Product Improvements Identified) – New components do not physically fit the actual aircraft without some minor re-work (Late Finds Discovered)

5. 5 Problem Summary/Statement - Continued Minor Issues Technical data not readily available for mechanic’s use Piece-parts are found missing, breaking, or not stocked at key locations

6. 6 Problem Statement/Summary Problem Statement: Lack of role definition during the implementation process of a new component installation contributes to miscommunication, ultimately costing the company additional money for re-work costs Typically a 5% budget over run is experience (parts problems only, not labor)

7. 7 Alternatives Listed Alternative #1: Modify existing process to incorporate a best practices process learned from other companies partaking in similar situations Alternative #2: Keep existing process in place, unchanged, yet highly publish the process so as that role definition is clearly identified Alternative #3: Supplement existing process with one that contains better role definition

8. 8 Alternative #1: Summary/Findings/Conclusions Several companies contacted: PCS, Jacobs Engineering, Caterpillar, US Gypsum, Chevron- Texaco, and Monsanto-Enviro Chem Caterpillar (CAT) and US Gypsum (USG) found to have similar situations: Spec-out new equipment manufactured by outside vendors, either off-the-shelf, or customized. CAT and USG yielded no known budget over run, no after-the-fact Product Improvements, and no Late Finds

9. 9 Alternative #1: Summary/Findings/Conclusions - Continued CAT – Sumter, SC – Formally documented process – Engineering creates specifications – Production provides a dedicated representative – Engineering and Production can object to anything in the Spec, or any design feature, but Engineering has final decision – Constant communication exists between Engineering and Production (close physical proximity, also)

10. 10 Alternative #1: Summary/Findings/Conclusions - Continued USG – Fairview, OK – No formally documented process, but protocol well-known – Engineering creates specifications – Production provides a dedicated representative – Engineering and Production can object to anything in the Spec, or any design feature – Final decision rests with either Engineering or Production depending on the project phase – Constant communication exists between Engineering and Production – Team members selected based on expertise and availability

11. 11 Alternative #2: Summary/Findings/Conclusions – Three (3) parts: Two page initial planning checklist Planning Flow chart Engineering checklist

12. 12 Alternative #2: Summary/Findings - Continued – Initial Planning Checklist: Provides basic information, but does not provide role definition for the design and implementation phases – Planning Flowchart: Provides approval process and stops when the implementation (and design) begins – Engineering Checklist: Only one step listed for coordinating with Production left extremely vague – Conclusion: Simply publishing the existing process will not solve the problem, as lack of role definition is still not addressed

13. 13 Alternative #3: Summary/Findings/Conclusions Supplementing existing planning process with one that contains better role definition This has been determined as one of the best practices found in Alternative #1 Conclusion: Testing Alternative #1 will incorporate Alternative #3

14. 14 Alternative #1 - Results Alternative #1 (Best Practices) Tested on MD80 Sliding Carpet project Following best practices were incorporated – Assigned dedicated Production representative – Assigned dedicated Engineering representative – Both Engineering and Production agreed upon the priority of the project – It was understood who had final decision authority (Production)

15. 15 Alternative #1 – Results (Continued) Following best practices were incorporated – continued – Written concurrence on design features was given, prior to initial installation, by both Engineering and Production – Engineering and Production representatives selected based on their technical experience – Production and Engineering attended all design reviews

16. 16 Alternative #1 – Results (Continued) Following best practices were incorporated – continued – Production and Engineering witnessed installation on another carrier – Production representative ensured supporting technical documents released and readily available prior to first installation – Outside vendor representative on-site for initial installation

17. 17 Alternative #1 – Results (Continued) Following best practices were incorporated – continued – Inventory Control previously stocked anticipated spares prior to initial installation – Production representative verified spares availability prior to initial installation

18. 18 Alternative #1 – Results (Continued) MD80 Sliding Carpet Project was successful – Initial installation completed with no budget over run, no after-the-fact Product Improvements Identified, no Late Finds Discovered – Can be attributed to clear communication and role responsibility between Engineering and Production

19. 19 Conclusions and Recommendations Conclusions: – Production and Engineering both need to be included in the project from the very start (get the right people on the bus) – There needs to be a dedicated representative from both Engineering and Production – Production shall give written concurrence on the Engineering Specifications – End Result: Roles were amply defined, and it paid off with a successful project

20. 20 Conclusions and Recommendations (Continued) Recommendations: – “Best practices” as tested on the MD80 Sliding Carpet project shall be incorporated into each project – These “best practices” shall be listed in both the General Procedures Manual (GPM) and Engineering Procedures Manual (EPM) for purposes of consistency

21. 21 Q&A Session ?????????????????????????