Enterprise Value Stream Mapping & Analysis on the C-17 Program

1. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

2. Enterprise Value Stream Mapping & Analysis on the C-17 Program Breakout Session #503 Lee Whittington The Boeing Company, Integrated Defense Systems, Long Beach Steve JacobsDefense Contract Management Agency, Boeing, Anaheim Rhonda Jacobs Ernst & Young, LLP, Government Contract Services. Los Angeles Monday, April 10, 2006 2:45pm – 3:45pm

3. SPACER • Safety: Exits • Purpose: Stakeholder ownership • Administrative: Phones, Messages, Facilities • Code of Conduct: Phones on mute • Expectations • Roles: Introductions, Monitor, Interaction NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

4. Topics NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

5. Overview NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

6. Traditional VSM Focuses on delivering value to the customer Addresses product lifecycle processes Addresses one program or line of business EVSMA Focuses on delivering value to all stakeholders Addresses lifecycle, leadership, & enabling processes Addresses multiple organizations, multiple programs, or business units LAI EVSMA vs. Value Stream Mapping Lean Aerospace Initiative (LAI)Enterprise Value Stream Mapping & Analysis (EVSMA) NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

7. C-17 EVSMA Milestones • Jul 2003: Initiated Joint Proposal Process Action Team using Value Stream Mapping process • Sep 2003: Presented EVSMA methodology to joint leadership • Oct 2003: Integrated EVSMA into Boeing C-17 strategic plan • Dec 2003: USAF System Program Office (SPO) leadership commits to supporting EVSMA • Jan 2004: Defense Contract Management Agency (DCMA) commits resources to the project • Mar 2004: Conducted first-ever government / industry joint EVSMA at C-17 Executive Leadership Offsite • Nov 2004: Incorporated EVSMA Future Vision into Joint Strategic Planning process NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

8. Leadership Sponsorship “…the last three days [of workshop #3] involved advanced leadership principles where there is no template… Six thousand people will watch us when we get back to work and see if we were serious about it, or if we just talk it – that's our challenge.” Dave Bowman, Vice President & C-17 Program Manager, The Boeing Co. “Thanks to the team for all their hard work. I believe by completing this initiative we will see great dividends. A lean set of C-17 enterprise processes will improve our communication, set a consistent direction, and improve the efficiency of the program.” Col. John Daniels, Commander, DCMA, Boeing – Long Beach “…this process [Enterprise Value Stream Mapping and Analysis] exemplifies the never ending commitment to improvement by C-17 enterprise leadership.” Col. Janet Wolfenbarger, Program Director, C-17 SPO, Wright-Patterson AFB NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

9. Method NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

10. EVSMA Guidebook Enterprise Value Stream Mapping & Analysis: A Guide for Enterprise Analysis, Alpha Version, 06/16/03 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

11. Key Guidebook Tools • Stakeholder analysis • Government Lean Enterprise Self Assessment Tool (LESAT) • C-17 SPO • C-17 DCMA • Lean Enterprise Self Assessment Tool (LESAT) • Boeing C-17 Program NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

12. C-17 Additions • Office Floor VSM • Replaced LAI technique for mapping process interactions • Modified IDS-LB detailed approach for mapping at enterprise level • Vivid description • Added to Step 7: Future State • Employed consultants to conduct leadership interviews & construct description • Hoshin Kanri matrix • Added to Step 8: Implementation Plan • Modified approach defined in Hoshin Kanri: Policy Deployment for Successful TQM NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

13. Team Charter NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

14. C-17 Implementation NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

15. Outcomes NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

16. SPO DCMA 9 8 The “Current 1 7 6 State” C - 17 10 2 Boeing Enterprise 5 ( Notional Process Flow ) 4 3 AMC AMC R W S q e y m a s t p Boeing Boeing Boeing Boeing Boeing Boeing Boeing Boeing Boeing Boeing Process 1 Process 2 Process 3 Process 4 Process 5 Process 6 Process 7 Process 8 Process 9 Process 10 Prod Prod Prod Prod Prod Prod Prod Prod Prod View of the Enterprise: Current State NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

17. View of the Enterprise: Future State NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

18. Current State: Value Stream Overview NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

19. Current State Value Stream: PE/PI Boeing C-17 Program C-17 DCMA C-17 SPO NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

20. Current State Value Stream: Production Boeing C-17 Program C-17 DCMA C-17 SPO NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

21. Current State Value Stream: GSP Boeing C-17 Program C-17 DCMA C-17 SPO NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

22. Future Vision Map: Single Value Stream NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

23. Closing the Gap: C-17 Lean Imperatives • Enterprise Strategic Planning • Supplier Quality • Systems Engineering (and Systems Management) • Total Cost of Ownership and Life Cycle Cost • Future State Enterprise Value Stream NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

24. Refined Future Vision Map NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

25. Executive Summary Future Vision Map Update NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

26. Where do we go from here? NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

27. Results • Joint Leadership Mental Model • Shared Future Vision • Deployment of Specific Breakthrough Lean Imperatives • Integration of Single Approach into Strategic Planning Process NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

28. Lee Whittington, lee.r.whittington@boeing.comPhone: 562-496-5187Steve Jacobs, stephen.jacobs@dcma.milPhone: 714-762-3834Rhonda Jacobs, rhonda.jacobs@ey.comPhone: 213-977-4358 Questions? NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management