Cover image for Lean maintenance repair and overhaul : changing the way you do business
Title:
Lean maintenance repair and overhaul : changing the way you do business
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Publication Information:
New York : McGraw-Hill , 2014.
Physical Description:
xix, 284 p. : ill. ; 24 cm.
ISBN:
9780071789943

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33000000010308 TS191 M36 2014 Open Access Book Book
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Summary

Summary

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BOOST PROFITS AND REDUCE COSTS BY EFFICIENTLY DELIVERING SUPERIOR MRO SERVICES

Lean Maintenance Repair and Overhaul describes how MRO organizations can achieve significant improvement in financial performance by applying the Theory of Constraints (TOC) to guide the implementation of Lean manufacturing tools. This Lean/TOC approach facilitates a growth strategy by providing customer value, such as faster turnaround times, that the competition cannot match. Lean/TOC creates the capacity for this growth by eliminating waste.

This practical guide shows how Lean/TOC also provides the improvement strategy for dealing with the variation that distinguishes MRO from high-volume, repetitive manufacturing. The methodology expands the improvement efforts beyond the manufacturing floor to make the organizational changes needed to facilitate growth and toempower the workforce to be enthusiastic participants in the improvement processes. You will learn how these concepts have been applied to MRO organizations in the commercial and defense sectors.

COMPREHENSIVE COVERAGE INCLUDES:

The MRO business opportunity The goal of Lean and how Lean for MRO is different Achieving sustained growth in the MRO business Managing the MRO process Enabling flow in an MRO environment The Lean MRO toolkit Managing the back-shops Creating a visual culture for the implementation of Lean/TOC


Author Notes

Mandyam ("Srini") Srinivasan, Ph.D., is the Pilot Corporation Chair of Excellence in Business at the University of Tennessee. He is the author of Streamlined: 14 Principles for Building and Managing the Lean Supply Chain and Building Lean Supply Chains with the Theory of Constraints and is co-author of Supply Chain Management for Competitive Advantage and Global Supply Chains: Evaluating Regions on an EPIC Framework - Economy, Politics, Infrastructure, and Competence . Dr. Srinivasan has many years of experience with leading automobile manufacturing organizations and has consulted with a large number of industries. He received the 2006 Edelman Award for radically streamlining the MRO process for the Air Force's largest transport plane, the C-5. Dr. Srinivasan has won numerous awards at the University of Tennessee for outstanding teaching, for research and creative activity, and for leadership in executive education. He is on the faculty of the Aerospace and Defense Executive MBA Program and of the Lean MRO one-week executive course at the University of Tennessee.

Melissa R. Bowers, Ph.D., is the Beaman Professor of Business at the University of Tennessee. Her research interests are in the areas of production planning and scheduling, Lean manufacturing, and supply chain optimization, and analytics. Dr. Bowers has years of experience consulting with numerous industries. She is a recipient of the Richard Sanders Award for Leadership in Executive Education and the John B. Ross Outstanding Teacher Award as well as several other College of Business teaching awards at the University of Tennessee. Dr. Bowers is on the faculty of the Aerospace and Defense Executive MBA Program and of the Lean MRO one-week executive course at the University of Tennessee.

Kenneth Gilbert, Ph.D., is the Regal Entertainment Group Professor of Business and Department Head of Statistics, Operations, and Management Science at the University of Tennessee. He holds the University of Tennessee's Allen Keally Award for Outstanding Teaching, the Chancellors Award for Vision and Leadership in Graduate Education, and the Richard Sanders Award for Leadership in Executive Education. Dr. Gilbert is past associate editor of Naval Research Logistics and has published in numerous academic journals. He is on the faculty of the Aerospace and Defense Executive MBA Program and of the Lean MRO one-week executive course at the University of Tennessee.


Table of Contents

Forewordp. xi
Prefacep. xv
Acknowledgmentsp. xix
Chapter 1 The MRO Business Opportunityp. 1
The MRO Landscapep. 3
Industry Cost Structurep. 4
Barriers to Entry and Operationp. 4
Safety and Regulationsp. 5
Maintenance Service Checks on Aircraftp. 5
Characterizing the MRO Processp. 7
Variability in Demandp. 8
Uncertainty in Work Scopep. 8
Uncertainty in Supplyp. 9
Cannibalizationp. 9
Outsourcingp. 10
Outsourcing Pros and Consp. 11
Traditional Decision Making and the Cost Worldp. 13
Why the Cost World Perspective Is Pervasivep. 13
The Through World Perspectivep. 15
TOC: The Driver of the Growth Strategyp. 16
TOC: and "Big Picture" Thinkingp. 17
Cost World versus Throughput Worldp. 18
The DuPont Modelp. 21
Translating Process Execution to Financial Performancep. 22
Summary and Conclusionsp. 24
Key Takeawaysp. 25
Notesp. 25
Chapter 2 The Goal of Lean and How Lean for MRO is Differentp. 27
Lean as the Enabler of a Growth Strategyp. 28
Lean as the Enabler of a Growth Strategy: An Examplep. 29
Creating Capacity by Eliminating Wastep. 30
Leveraging the Captial Investmentp. 31
Growing the Marketp. 31
Transforming the Organizationp. 32
Creating a Team of Enthusiastic Entrepreneursp. 32
Applying TOC Thinking to Strategically Focus Lean Effortsp. 33
How Lean for MRO is Differentp. 31
The Techniques May Differ, But the Goal Is the Same: A Tale of Two Factoriesp. 34
Process Variation and Work-Scope Variationp. 37
Some General Guidelines for Lean/TOC in MROp. 38
Focus on the Intent, Not on the Techniquesp. 39
Reduce Process Variation and Develop a Strategy to Manage Work-Scope Variationp. 40
Focus Performance Metrics on Growth, Not on Cost Reductionp. 41
Focus Improvement Efforts on the Constraintp. 42
Control Inductions to Match the Processing Capacity of the Constraintp. 42
Lay Out Processes to Facilitate Flowp. 43
Assign Priorities to Tasks That Compete for Shared Resourcesp. 43
Summary and Conclusionsp. 43
Key Takeawaysp. 44
Notesp. 45
Chapter 3 Achieving Sustained Growth in the MBO Businessp. 47
The Ever-Flourishing MRO Organizationp. 49
The TOC Philosophyp. 51
Enabling Paradigmsp. 52
Strategy and Tactics Treesp. 56
Traditional Approach to Strategy Formulation and Deploymentp. 57
The Theory of Constraints Perspective on Strategies and Tacticsp. 58
Developing the S&T Treep. 60
Using the S&T Tree to Drive Lean Implementationsp. 62
Concluding Remarksp. 69
Key Takeawaysp. 69
Appendix 3A: The Thinking Processesp. 70
Sufficient-Cause and Necessary-Condition Logicp. 72
Categories of Legitimate Reservationp. 73
Current Reality Treep. 74
Evaporating Cloudp. 79
The Three-Cloud Techniquep. 87
Other Tools in the Thinking Processesp. 87
Notesp. 88
Chapter 4 Managing the MRO Processp. 91
MRO Process and Project Managementp. 93
Project Management with Gantt Charts and PERT/CPMp. 95
Gantt Chartp. 96
PERT/CPMp. 98
Problems with Traditional Project Managementp. 102
Applying the Thinking Processes: What to Change?p. 103
Multitaskingp. 104
Parkinson's Lawp. 105
Sandbaggingp. 106
The Student Syndromep. 106
Inducting Work as Soon as Possiblep. 107
Impact of Uncertainties on Task Timesp. 108
Applying the Thinking Processes: What to Change To?p. 111
Balancing Conflicting Requirementsp. 112
Uncommon Sensep. 114
Critical Chain Project Managementp. 115
Planning the CCPM Schedule in a Single-Project Environmentp. 116
Planning the CCPM Schedule in a Multiple-Project Environmentp. 119
An Uncommon-Sense Momentp. 122
Sustaining the Changep. 123
The Projects Strategy and Tactics Tree Revisitedp. 124
Summary and Concluding Remarksp. 126
Key Takeawaysp. 127
Notesp. 128
Chapter 5 Enabling Flow in an MRO Environmentp. 131
Creating Flow by Standing on the Shoulders of Giantsp. 132
The Origins of TOCp. 134
Bottlenecks and Constraintsp. 136
Five Focusing Steps of TOCp. 139
Step 1: Identify the System's Constraint(s)p. 139
Step 2: Decide How to Exploit the System's Constraint(s)p. 139
Step 3: Subordinate Everything Else to That Decisionp. 140
Step 4: Elevate the System's Constraintsp. 141
Step 5: If a Constraint Was Broken in a Previous Step, Go Back to Step 1p. 141
Policy Constraints That Hinder Flow: The Cost Worldp. 142
Case Study: Mike's Mechanixp. 142
Policies and Standard Cost Accounting Systemsp. 148
Tedesky, Trucks, and Mattison, Incp. 151
Standard Cost Accounting and Variancesp. 154
Activity-Based Costingp. 156
The Throughput World: Throughput Accountingp. 157
Throughput Accounting Measuresp. 158
Applying Throughput Accounting to Improve Profitability at TTMp. 159
The Drum-Buffer-Rope Modelp. 160
Time Buffers versus Inventory Buffersp. 162
Determining Buffer Sizep. 163
Simplified Drum-Buffer-Rope Modelp. 164
Buffer Managementp. 166
Summary and Conclusionsp. 167
Notesp. 168
Chapter 6 The Lean MRO Toolkitp. 169
Getting Started: Value-Stream Mappingp. 171
Overview of Lean Toolsp. 172
Role of the Lean Tools in Value-Stream Integrationp. 174
Lean and the Quality Feedback Loopp. 175
Preventing Overproduction: Pull Replenishmentp. 176
Establishing the Drumbeat: Takt Timep. 182
Preserving the Drumbeat: Heijunka Scheduling and Setup-Time Reductionp. 184
Creating Flow: Cellular Layout and One-Piece Flowp. 187
Platform for Improvement: Standard Work and Method Sheetsp. 189
Minimum Staffing Requirement and Load Chartsp. 190
Point-of-Use Tooling and Point-of-Use Material Storagep. 192
5Sp. 193
Mistake-Proofing, Total Predictive Maintenance, and Six Sigma Qualityp. 196
Summary and Conclusionsp. 197
Notesp. 198
Chapter 7 Managing the Back-Shopsp. 199
The Traditional Back-Shopp. 201
Queuing Theory Basicsp. 202
More Managerial Practices Commonly Encountered in the Back-Shopp. 207
Improving Back-Shop Performancep. 210
Integrating CCPM and DBR in the Back-Shopp. 212
Simplified DBR Model in the Back-Shopp. 213
Delta Airlines: A Case Study Focused on Integrating CCPM and S-DBR in Engine Maintenancep. 220
Background: Engine Maintenance at Deltap. 221
Past Practicesp. 221
Vehicles for Change: CCPM and S-DBRp. 222
Identifying the System's Constraintp. 222
S-DBR Management System for the Back-Shopsp. 223
CCPM for Managing Parent Assets in the Engine Shopsp. 224
Integrating S-DBR and CCPM at Deltap. 225
The Key to Success and Sustainment at Deltap. 229
True Measure of Success at Delta or Any MRO Organizationp. 230
Summary and Conclusionsp. 230
Notesp. 231
Chapter 8 Making It Happen: Creating a Visual Culture for the Implementation of Lean/TOCp. 233
Visuals and 5S: Some Examplesp. 234
Visuals and Point-of-Use Toolingp. 238
Parts Vending Machines and Automated Tools Cribsp. 245
"Visual People": Co-location of Key Decision Makersp. 253
Visual Equipment Layout: Eliminating Handoffs with Support Equipmentp. 255
Visuals in Facilitating Concurrent Workp. 256
Visual Quality Controlp. 257
Visuals to Create Flow at a Bottleneckp. 259
Summary: A Visual Culture to Eliminate Waste and Create Flowp. 266
Appendix 8A: The Power of Visualizationp. 268
Notesp. 270
Indexp. 273