AlliedSignal Achieves 99.89% On-Time Delivery in 6 Months

Organization Description

• Large, high tech aerospace plant with three million square feet of development, engineering, manufacturing, assembly and administrative space under one roof.
• 7500 people – scientists and engineers, six international unions represented.
• Products and services were so technically advanced that other sophisticated companies and highly developed countries sought this organization’s advice in a great variety of techniques and processes.
• Facility managed by AlliedSignal under contract with the Department of Energy.
• Eight person Senior Management Team, 38 next-level Managers and 170 Supervisors.
• Highly technical work force consisting of over eight hundred engineers, scientists and other professional specialties.

Situation

• Due to the precise and stringent requirements of this organization’s customers, they were seen as industry leaders with an on-time delivery metric of 92%. This had been the general area of achievement for over 20 years, despite many program and process attempts to improve the on-time delivery figure.
• One of the challenges in improving the on-time delivery in a “state of the art” environment was the uncompromising need to further increase quality and reduce scrap/rework/waste every quarter/year.
• Diversification was required into other markets, serving other industries in order to ensure continued success in a rapidly changing environment. Current leadership in primary market needed to be solidified.
• Delivery performance, quality exceptions, scrap measures were the best in the industry, but had been relatively static for the past twenty years.
• Professional and associate skill and expertise were world renowned as leaders in material and technology application.
• Cold war thaw and project/plant consolidation could threaten survival of this effective talent pool.

Approach/Process

• A multi-step process was designed to break through this seemingly “impenetrable barrier” in a relative short time frame. Some of the process steps were in parallel and some were in sequence and all steps included the principle of increasing and broadened participation among the 7500 person work force.
• The result of the overall process was to identify and get agreement on three “Gold Rings” that the organization would reach for and achieve. The three goals were all related and would impact the real customer situation and the organizations reputation and financial success. While the “Gold Rings” included specific metrics in on-time delivery, quality exceptions and rework/scrap – the key overriding achievement would be measured in achieving 100% on-time delivery in only six months.
• Not only would this require a Herculean effort, it would require many different ways of thinking about almost everything. The business as usual (even though admired and respected by others) would no longer be possible. It was time to do “radical things” in order to achieve the “Gold Rings”.
• Gold Ring Implementation Teams (GRIT) were established to achieve the “Gold Rings”. The entire workforce was engaged in small group workshops to prepare for the unprecedented effort
• Senior Management Team engaged in a three day off-site retreat to examine their management and leadership approach — comparing it against many top tier successful organizations in many industries.
• Next-Level Management and Supervisors did a similar examination resulting in a consensus on the Current State and a desire to move to an improved Desired State.
• Union leadership in six different international unions was included in the process and a “revolutionary” performance Vision was agreed to by all leadership constituencies.
• Six months later agreement on a significantly more difficult Vision was achieved.
• Extraordinary communication methods and tools were used to gain buy-in from the majority of the 7500-person organization.

Outcomes

• Stage I Gold Rings Performance Vision: “We can achieve what has not been achieved”
  • This Vision stimulated dramatically elevated organizational goals to achieve:
    • 100% on-time delivery in an industry where 92% earned a leadership position
    • Simultaneous reduction in quality exceptions
    • Simultaneous reduction in scrap

• Stage II Vision: “Survival and Continued World-Wide Leadership”  [In a new free market environment]
  • A daunting Future State for a quasi-government organization
    • Kansas City Division successfully diversified, survived the post cold war closings and consolidation, becoming a material and technology force within the marketplace

• The Stage I and II Visions become part of the organization’s culture, and recognition of their ability to lead and achieve led to numerous business opportunities.

Business Results

• 99.89% on time delivery of over 218,000 different parts was achieved within six months and sustained above 99% for the subsequent years, while reducing quality exceptions and scrap. AlliedSignal received the highest possible management fees from the Department of Energy and significant recognition for its leadership.

Customer Quotes

“You helped us achieve a 99.9% on time delivery of over 200,000 distinct aerospace parts in six months. The previous best achievement with these extremely complex products over 20 years was 92%.”

“Your work with six international unions and their local leaders was impressive – so much so that one group wanted to use you as their consultant.”

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