Military Airframe Acquisition Costs The Effects of Lean Manufacturing

by Cook, Cynthia R.

• ISBN13: 9780833030238
• ISBN10: 083303023X
• Format: Paperback
• Copyright: 2001-10-15
• Publisher: RAND Corporation

Summary

This report examines the package of new tools and techniques known as lean production to see if it would enable aircraft manufacturers to produce new weapon systems at costs below those predicted by historical cost estimating models.

Table of Contents

Preface	iii
Figures	ix
Tables	xi
Summary	xiii
Acknowledgments	xix
Abbreviations	xxi
Introduction	1	(4)
PART I: LEAN MANUFATURING AND METHODS OF STUDY	5	(24)
The Lean Manufacturing System	7	(16)
The Search for Productivity Improvements and the Genesis of Lean Manufacturing	7	(5)
Overview of the Lean Manufacturing System	12	(4)
Complexities and Challenges	16	(7)
Lean Implementation in the Military Aircraft Industry	19	(4)
Data and Methods	23	(6)
Reporting Results: Accounting for Savings from Lean Processes in Defense Manufacturing	26	(3)
The CCDR System	27	(2)
PART II: INCORPORATING LEAN INTO COST ESTIMATES USING CCDR CATEGORIES	29	(90)
Engineering	31	(20)
Introduction	31	(1)
Design Engineering	32	(6)
IPPD and IPTs	33	(3)
Cost Effects of IPTs	36	(2)
Computer-Aided Design Technology	38	(5)
Other Lean Enablers--Design Philosophies That Reduce Manufacturing Costs	43	(5)
Unitization/Part Count Reduction	44	(3)
Part Standardization	47	(1)
Summary Results on Implementation of Lean Design and Development	48	(3)
Tooling	51	(4)
Introduction	51	(1)
Tooling in the CCDR	51	(1)
Advances in Tooling	52	(1)
Self-Locating Parts	52	(1)
Flexible Tooling	52	(1)
Other New Tooling Technologies	53	(1)
Summary Discussion of Lean Tooling	53	(2)
Manufacturing	55	(26)
Introduction	55	(1)
Lean Manufacturing in the Factory	56	(2)
Pull Production	58	(1)
Cellular Production and Single-Piece Manufacturing Flow	59	(8)
Takt Time	67	(1)
Visual Control	68	(5)
Housekeeping	68	(1)
Location of Tools/Shadowboxes	69	(1)
Shadowbox Kitting	69	(4)
Manufacturing Best Practices That Enable Lean Production	73	(1)
Summary Results on Implementation of Lean Manufacturing	74	(7)
Specific Examples of Savings From Lean Implementation	75	(1)
Lean Transformation at Brownfield Plants	76	(1)
Summary of Typical Savings	77	(4)
Quality Control	81	(6)
Introduction	81	(1)
First-Time Quality: A Keystone of Lean	81	(3)
Reduction in Cost of Quality Through Lean Practices	84	(3)
Materials and Purchased Parts (Manufacturing)	87	(16)
Introduction	87	(1)
Lean PSM---A New Procurement Strategy	87	(5)
Specific Practices of Lean PSM	92	(7)
Supplier Qualification and Certification	92	(1)
Long-Term Relationships	92	(1)
Communications with Suppliers	93	(1)
Electronic Data Interchange (EDI) with Suppliers	94	(1)
Continuous Improvement Kaizen Events at Suppliers	94	(1)
Target Costing	95	(1)
Just-in-Time (JIT) Delivery	96	(2)
Supplier Management of Inventory at Customer	98	(1)
Supplier Kitting	99	(1)
Summary Results on Implementation of Lean PSM	99	(4)
Overhead, General, and Administrative Costs	103	(8)
Introduction	103	(1)
The Overhead and G&A CCDR Categories	103	(1)
Administrative Costs	104	(1)
Materials Overhead	105	(1)
Engineering and Manufacturing Overhead	105	(1)
Lean Inventory Management	106	(1)
Results on Implementation of Lean Inventory Management	107	(2)
Summary Results of Savings from Reduced Inventory	109	(1)
Forward Pricing Rate Agreements (FPRAs)	109	(2)
Making it Work---Lean Human Resources Management	111	(8)
Introduction	111	(1)
Lean HRM	111	(3)
The Debate on Lean HRM---Empowerment or Exploitation?	114	(2)
Summary Results on Implementation of Lean HRM	116	(3)
PART III: ISSUES FOR COST ANALYSTS	119	(32)
Integration and Challenges for Cost Analysis	121	(12)
Integration Across Areas	121	(1)
Learning Curves, Standard Hours, and Material Improvement Curves	122	(11)
Discussion and Conclusions	133	(18)
Transition to Lean Manufacturing	133	(1)
Further Discussion	134
Appendix
A. Subjects of Three Rand Studies on Industry Initiatives Designed to Reduce the Cost of Producing Military Aircraft	133	(10)
B. Questions Concerning Lean Implementation Sent to Military Aircraft manufacturers by Rand	143	(4)
C. CCDR Definitions	147	(4)
Bibliography	151