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Managing Change in a Change Averse Environment

Managing Change in a Change Averse Environment. Mike Herzog V.P. Quality and Mission Assurance Pacific Scientific Energetic Materials Co. Safe and Arm devices Separation Devices Cartridge Activated Devices Propellant Activated Devices Vehicle Arresting Green Energetics

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Managing Change in a Change Averse Environment

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  1. Managing Change in a ChangeAverse Environment Mike Herzog V.P. Quality and Mission Assurance Pacific Scientific Energetic Materials Co.

  2. Safe and Arm devices Separation Devices Cartridge Activated Devices Propellant Activated Devices Vehicle Arresting Green Energetics Oil/Natural Gas Exploration Technologies

  3. AZ Operations Chandler - 57 Acre Site ~250 Non-Union Associates 100,000+ Square Feet Under Roof Core Competencies: Cartridge/Propellant Actuated Devices (CAD/PAD), Specialty Devices (ISD, S&A) Initiators & Propellant Manufacturing CA Operations Valencia Business Park Site Advance Technology Site ~30 Non-Union Associates 37,000 Square Feet Under Roof Core Competencies: Smart Energetics Architecture (SEATM), Smart Controllers, Detonators & Initiators Hollister - 270 Acre Site ~360 Non Union Associates 200,000+ Square Feet Under Roof Core Competencies: CAD/PAD, Linear, Ordnance, Electronic & Laser Systems, Vehicle Sub-Systems, High Volume & Propellant Manufacturing, Specialty Chemical Synthesis Chandler, AZ Valencia, CA Hollister, CA Facilities & Core Competencies

  4. Markets • Space/Launch Vehicles • Flight Termination • Payload Deployment/Recovery • Stage Separation/Termination • Missiles & Munitions • Control/Initiation/Termination • Munitions Deployment • Aircraft & Life Support • Countermeasures/Stores Release • Emergency Egress • Fire Suppression • Ground Vehicles • Active Protective Systems • Fire Suppression • UAV • Flight Termination & Recovery • Engine Start / Vehicle Launch • Commercial • Aircraft & Petroleum • Specialty Chemicals • Borohydride Chemistry • Energetic Materials Total Annual Sales: $150M

  5. For suppliers deep in the supply chain, process change approval is painful Multiple layers of customers must approve the requested change Contractual requirements typically dictate process, but not really Suppliers want to avoid the ‘seek approval or beg forgiveness’ scenario Change Management Dilemma Approval process can easily stifle continual improvement

  6. Typical Shared Process Change Approval PSEMC Communication Direct Customer Customer Customer Prime Typical layers of approvals required for proposed PSEMC process changes Program Program End Customer End Customer

  7. Continual improvement initiatives Design improvements Equipment and tooling improvements Lean and productivity improvements Poke-Yoke implementation PFMEA recommended actions Cost competitiveness (Ashton Carter memorandum). Really optional? Proactive Changes (Optional)

  8. Changes as a result of FRB activities Changes as a result of a Corrective Action Request Product or Process audit results Lot rejection Deviations and Waivers Obsolescence Reactive Changes (Must) Reactive change requests move through approval process relatively quickly

  9. The Space and Defense Industry Quality Management System requirements include implementation of a robust change management system Risk versus benefit of each change must be considered An uncontrolled change is the biggest risk Perceived small, insignificant changes do not always equal low risk Industry Expectations James Chiles’ Inviting Disaster contains several examples of un-communicated, uncontrolled, perceived insignificant changes that resulted in disasters

  10. Develop and implement a robust change management process to include documentation and records Communicate to the organization that what they don’t think is a change is a change Establish a standard forum where proposed changes can be discussed, documented and planned Provide communication to customer(s) early on in the process Planning for Change

  11. To ensure that any proposed changes are planned and implemented in a manner that ensures comprehensive validation activities are planned, scheduled, conducted and documented, PRIOR TO IMPLEMENTATION, in a way that ensures quality and reliability are not compromised. Purpose Of Change Management (PSEMC Stance) Regardless of what customer requirements are, this process is designed to ensure PSEMC is doing the right thing

  12. Consolidate powder weighing, loading and pressing operations into 1 station Weigh powder into actual parts versus vials Eliminates batching and promotes 1 pc. Flow Incorporate mistake proofing feature electronically connecting scale and press. Press will not operate if scale does not record acceptable value. Utilize existing approved equipment Current process clearly defined in manufacturing instructions Powder Weigh Station Case Study

  13. Weighing Vessel Finished Vials Bulk Powder Vial poured into tooling within Press Station Before Process Change Single Press Station Single Weigh Station

  14. Consolidation Press Weigh Scale Load Tooling After Process Change Consolidated Weigh and Press Station

  15. Original communication requesting approval for change sent September 2010 Communication sent to 30 direct customers A white paper explaining the change attached to communication To date, 5 direct customers have approved the change Process Change Request Status

  16. No matter how simple you believe the proposed change is, the customer will think it is significant Prepare and present a comprehensive validation plan with communication Include ‘what’s in it for them’ in the communication Anticipate customer questions and address them in the communication Be prepared to field many questions and concerns Be prepared to wait Lessons Learned

  17. Formal Change Management process documented Process flow charted Proposed change form designed and implemented Training conducted and documented Proposed changes presented by originator at bi-weekly CCB PSEMC Change Management Process Improvements

  18. Change Management Form

  19. Legacy products and designs Cost implications Industry generally change and risk averse No perceived benefit to customer(s) Time to approve requested changes Multiple tiers need to approve requested change View may not be worth the climb for suppliers Obstacles to Change

  20. Ensure strict compliance to change management process Ensure risks and benefits are identified Be confident in mitigating risks Ensure that appropriate actions are planned to validate effectiveness of the change Provide sufficient information to customers regarding proposed change so as to anticipate questions/concerns Commit to the change…. no matter how long it may take to get approved. Overcoming Obstacles

  21. “Change means movement. Movement means friction. Only in the frictionless vacuum of a nonexistent abstract world can movement or change occur without that abrasive friction of conflict.” - Saul Alinsky1960’s writer and activist In Summary

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