Using Lean Principles to Eliminate Proposal Waste

1. Using Lean Principles to Eliminate Proposal Waste June 3, 2010 Roger Campbell Pratt & Whitney Rocketdyne

2. Outline • How can you Benefit? • What are Lean Principles? • Applying Lean Principles to proposals • Reviews – single piece flow • Do/Don’t Use – defect elimination • Top down – eliminating overproduction waste • Recap

3. How can you Benefit? • Lean principles can help you create proposals more efficiently • Reducing Bid and Proposal costs • Enhancing team communication and commitment 2

4. What are Lean Principles? Toyota origin Specify value Identify value stream Make flow visible Let customer pull Eliminate waste Not just tools (e.g., 5S) Toyota Production System Just-In-Time Right part, Right amount, Right time, Flow, Pull Jidoka (Built in Quality) Stop the line, Intelligent Automation Leveling Kaizen (Continuous Improvement), Standard Work (5S) Focus on Lean Principles, not just Lean tools 3

5. Value & Value Streams As measured by the customer Make to use Actions to take product from material to delivery Understanding customers key to determining Value 4

6. Flow & Customer Pull Single-piece flow vs. batch processing Focus on the product and its needs Produce the product in response to a customer order Showa Coil Making, Before First Floor Finished Coil Storage Pipe Cutting S Expansion S Braze S S Fin- Press S Clean S Leak Test Conveyor Intermediate Storage Second Floor Finished Coil Storage Finished Unit Store & Ship Final Assy. Track Final Test Showa Coil Making, After First Floor Test, Pack, Ship Expansion Fin- Press Pipe Cutting Parts Storage Flow eliminates inventory, raises productivity Clean Braze Leak Test Final Assy. 5

7. Waste Elimination Eliminate non-value added tasks Don’t make, pass or accept defects Seven wastes Efficiency driven by waste/defect elimination at origin 6

8. Applying Lean Principles “Sure, this stuff applies in a factory environment, but I do proposals…” Do proposals… Have customers? Use processes? Have products? Produce waste? Proposal processes/practices ripe for Lean use 7

9. Proposal (Pink/Red) Reviews Batch processing Fastest writer waits Lost time for read ahead and production Still valuable Horizontal integration Checkpoint Independent view Traditional review process wasteful 8

10. Lean Proposal Reviews Single piece flow Writer requests (pulls) review when ready Rolling review by Proposal Mgr Pink/Red team members engaged (no read ahead) Don’t integrate No lost time for production Collocated Implementation - Ready for review - Proposal Mgr approval to engage Pink/Red team members - See comments, on target - See Proposal Mgr, off target Lean reviews minimize writer downtime 9

11. Kickoff Meeting Baselines What are we proposing? Program Plan What is the win strategy? Executive Summary What is expected of me? Schedule Detailed outline Clear baselines eliminate defects and rework 10

12. Another Useful Baseline Do/Don’t Use list combines Fact Dictionary Glossary “Hollow” terms Do Use: “We have invested $6.5M in company funds to develop…” Lean – A set of integrated principles/tools focusing…” Don’t Use: Unique Best-in-Class World Class “…55 years as the …” Most efficient to prevent defects from occurring 11

13. Bottom’s Up = Overproduction Rough outline only Poor page count discipline Weak/no storyboards Quality “inspected in” Many rewrites “Cut to fit” Words/graphics not used are costly 12

14. Top Down = Minimizes Waste Executive Summary Detailed outline with margin Margin reduced after each review Avoid “cut to fit”, compliance may suffer 13

15. Top Down = Minimizes Waste (2) Strong focus on storyboards Daily attention to page count status Only create the words/graphics that will be used 14

16. Recap • Four Lean proposal examples were described, providing • Reduced Bid and Proposal costs • Enhanced team communication and commitment • Further reading: • Lean Thinking, Womack & Jones • The Toyota Way, Liker 15