1. A GenCorp Company Integrated Design: Changing the Way We Think Art Weiss Executive Director, Defense Advanced Programs April 17, 2015 0A. Weiss, InThinking @ Aerojet Rocketdyne

2. As Conceived Replacing the screwdriver Pilot holes Hole saw Drywall installation Concrete Product or Service Innovation

3. As Conceived Replacing the screwdriver Pilot holes Hole saw Drywall installation Concrete Product or Service Innovation

4. As Conceived Replacing the screwdriver Pilot holes Hole saw Drywall installation Concrete The top 5 uses: 1.Replacing the screwdriver 2.Pilot holes 3.Hole saw 4.Drywall installation 5.Concrete Product or Service Innovation

5. Production Viewed as Usual Receipt and test of materials Production, assembly, inspection Tests of processes machines, methods, costs Distribution Consumers Suppliers of materials and equipment A B C D Source: The New Economics, W. Edwards Deming, 1993

6. Receipt and test of materials Production, assembly, inspection Tests of processes machines, methods, costs Distribution Consumer research Consumers Design and redesign Suppliers of materials and equipment A B C D Production Viewed as Unusual Source: The New Economics, W. Edwards Deming, 1993

7. Quality is defined by conformance to requirements Replacing the screwdriver Pilot holes Hole saw Drywall installation Concrete Quality Viewed as Usual

8. Production, assembly, inspection Production Viewed as Usual Receipt and test of materials Tests of processes machines, methods, costs Distribution Consumers Suppliers of materials and equipment A B C D Source: The New Economics, W. Edwards Deming, 1993

9. Production, assembly, inspection Production Viewed as Usual Receipt and test of materials Tests of processes machines, methods, costs Distribution Consumers Suppliers of materials and equipment A B C D Source: The New Economics, W. Edwards Deming, 1993 A value-stream of independent parts

10. Quality is defined by conformance to requirements A product or service possesses quality if it helps somebody and enjoys a good and sustainable market Replacing the screwdriver Pilot holes Hole saw Drywall installation Concrete Quality Viewed as Unusual

11. Receipt and test of materials Production, assembly, inspection Tests of processes machines, methods, costs Distribution Consumer research Consumers Design and redesign Suppliers of materials and equipment A B C D Production Viewed as Unusual Source: The New Economics, W. Edwards Deming, 1993 A value-stream of interdependent parts

12. The first step. The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people. New Meaning – Dr. Deming Source: The New Economics, W. Edwards Deming, 1993

13. The outside view. The layout of profound knowledge appears here in four parts, all related to each other:  Appreciation for a system  Knowledge about variation  Theory of knowledge  Psychology Source: The New Economics, W. Edwards Deming, 1993 Transformation

14. Perception & Thinking

15. As Managed As Conceived Product or Service Innovation

16. WHAT is InThinking? A shift in thinking from managing independent parts/tasks/ elements to managing interdependent parts/tasks/elements An integrated set of concepts for problem solving, decision making, and continuous investment A 20+ year thinking approach which affects affordability and performance of our products, processes and services Based on insights gained from W. Edwards Deming, Genichi Taguchi, and Russell Ackoff Moving toward design of interdependent activities within our overall system Moving toward design of interdependent activities within our overall system A. Weiss, InThinking @ Aerojet Rocketdyne

17. HOW is InThinking Different? “Business as Usual” focuses on managing independent parts/tasks/elements – each with its own “pass/fail” requirements “Business as Unusual” focuses on actively managing how well interdependent parts/tasks/elements are joined, leading to gains in affordability, product, and process performance Using Mixed Model Management, “Business as Unusual” focuses attention on interactions (“gaps”) between parts/tasks/elements Shifting our focus from “pass/fail” to “how well” allows us to see previously hidden opportunities Shifting our focus from “pass/fail” to “how well” allows us to see previously hidden opportunities A. Weiss, InThinking @ Aerojet Rocketdyne

18. Designing for Advanced Manufacturing 17 Working to infuse InThinking into our design process Working to infuse InThinking into our design process A. Weiss, InThinking @ Aerojet Rocketdyne Additive vs. subtractive techniques expand design solution space Allows increased integration of design features/functionality Brings new perspectives to affordability trades Further enhanced when combined with better thinking about systems, variation, knowledge, and people

19. InThinking Yields Better Designs “A system is never the sum of its parts… …it is the product of the interactions of its parts… …the art of managing interactions is very different indeed than the management of actions, and history requires this transition for effective management.” Russell Ackoff A. Weiss, InThinking @ Aerojet Rocketdyne

20. MAXMINMAXMIN = = WHAT is Mixed Model Management? Macro System Model MAXMINMAXMIN = = Micro System Model BORE DIAMETERVALVE OUTER DIAMETER BORE DIAMETERVALVE OUTER DIAMETER A. Weiss, InThinking @ Aerojet Rocketdyne

21. MAXMIN BORE DIAMETER MAXMIN VALVE OUTER DIAMETER = = Macro System Model – Mind the Part/Task/Element MAXMIN BORE DIAMETER MAXMIN VALVE OUTER DIAMETER Micro System Model – Mind the Gap A. Weiss, InThinking @ Aerojet Rocketdyne WHAT is Mixed Model Management?

22. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

23. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

24. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

25. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

26. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

27. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

28. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

29. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

30. Quality Focus: Conformance to Requirements (“Mind the Parts/Tasks/Elements - Actions”) Goal: Defect-Free Parts Activities: Assess Non-Conformances, Scrap and Rework Mindset: Reactive / Victim Skills: Fire-Fighting and Problem Solving Impact: No Improvement in Quality After Zero Defects, Temporary Solutions Attributes: Physical and Mental Handoffs (separation, blame) Quality Focus: Relationships between Actions (“Mind the Gaps - Interactions”) Goal: Profit Beyond Measure Activity: Seeking Opportunities to Invest in Better Relationships among Parts Mindset: Proactive / Leader Skills: Process Management and Systemic Solutions Impact: Continuous Investment in Quality of Relationships, Long-Lasting Solutions Attributes: Physical Handoffs, without Mental Handoffs (no separation nor blame), collaboration Micro System Model Macro System Model A. Weiss, InThinking @ Aerojet Rocketdyne Easy to Understand Difficult to Master WHAT is Mixed Model Management?

31. Advances to Our Future Designs A. Weiss, InThinking @ Aerojet Rocketdyne Infuse InThinking into Advanced Manufacturing Broaden use of Mixed Model Management with business partners Expand management of “good” actions with a focus on where to invest in affordability Actively manage interactions (“gaps”), not actions Focus on interdependent, not independent, value streams With a focus on designing for affordability, InThinking advances how we WORK, LEARN, and THINK TOGETHER With a focus on designing for affordability, InThinking advances how we WORK, LEARN, and THINK TOGETHER

32. A GenCorp Company Integrated Design: Changing the Way We Think Art Weiss Executive Director, Defense Advanced Programs April 17, 2015 For additional information, Contact Bill Bellows, william.bellows@rocket.com 31A. Weiss, InThinking @ Aerojet Rocketdyne