Leaning into the future Learn about our Lean philosophy and why it remains such an important part of how we do business. By Crystal Hardinger Process improvement — Bret Nilles is the first to admit that using Lean tools, principles and methods enabled the Accounting department at Rockwell Collins to improve the accounts receivable process. Nilles is a principal project manager at our facility in Cedar Rapids. Photo by Paul Marlow, Cedar Rapids, Iowa When members of the Accounting department at Rockwell Collins needed to find a way to improve their accounts receivable process, they looked to Lean tools, principles and methods for help. "There were so many issues and such a large scope with this project that it was hard to try and break the data down so we could understand the problems," said Bret Nilles, principal project manager in Accounting. "That's where a Lean approach helped." Also known as Lean Electronics, this philosophy was first implemented at Rockwell Collins in the late 1990s as a way to help our company focus on eliminating waste and improving our quality and performance. The Lean philosophy, which also helps our processes run more efficiently, had been in use in the manufacturing and automotive industries for decades. Even leading aerospace companies such as Boeing had adopted it. But Rockwell Collins is unique in that our company recognizes that Lean is not limited to manufacturing; it can be applied anywhere throughout our enterprise. This is something Nilles was able to witness firsthand. After using Lean and Six Sigma methodology, which is one of our Lean tools that helps reduce variation, his project team saw an $8.8 million improvement in cash flow related to domestic customers. In addition, they witnessed a $13 million improvement in cash flow related to international customers. "The focus that was applied to this project was to remove all of the gut feelings and subjective thoughts," said Nick Novotny, one of two Lean Six Sigma Black Belts who helped the team improve the accounts receivable process using the Define, Measure, Analyze, Improve, Control, and Report (DMAICR) Model. "In going through the DMAICR Model, we looked at what the data was telling us, and made decisions based on that data." Thinking Lean According to Rose Donnelly, vice president of Enterprise Quality and Lean at Rockwell Collins, if employees look at what they do every day, there are many areas where Lean principles can be applied. "Lean is not an event, it's a way of life," said Donnelly. "Applying Lean principles will help all of us create value for our customers." An example of this is when our Weapons Sensors group recently redesigned NavStorm™+, an integrated Global Positioning System and Anti-Jam receiver for gun-hardened artillery and other applications. Identifying the issues — Nick Novotny is an expert in Lean and Six Sigma methodology at Rockwell Collins. Novotny is one of two Lean Six Sigma Black Belts who helped our Accounting team improve the accounts receivable process. Photo by Paul Marlow, Cedar Rapids, Iowa Since our customers' designs for artillery rounds vary and they need different degrees of anti-jam performance, our Weapons Sensors group typically needed a different receiver for every set of requirements. In an effort to provide better value to our customers and eliminate waste, they developed a common design with a scalable approach that could be configured to meet various customers' needs. "If I have two different customers with two different sets of requirements, they both will be able to buy a NavStorm™+, but we will order a different configuration," said Michael Cook, technical project manager for Weapons Sensors. "Different parts will then be populated on the same printed wiring board, tested in the same piece of test equipment, and built in the same factory line; it's just a different assembly." While the new design enables our company to significantly reduce procurement, build, material and life cycle costs, it's also beneficial for our customers. "If a customer contacts us for an artillery receiver, we will be able to quickly configure it and have it in their hands within three to four months instead of 12 to 18 months," said Cook. "For the military, that's a big deal because they're able to get usable technology in the hands of the warfighter sooner." Building on our success At Rockwell Collins, our Lean philosophy has helped us create superior customer value and financial performance within the last decade. But many leaders and employees believe we can do even more to build upon our success. Bernard Bryan, manager of production operations in Melbourne, Fla., knows what a difference Lean training can make. Last year, an operations production team went to Brookings, S.D., to help MTR, our supplier of Rockwell Collins-designed Flux Detectors, learn more about Lean tools and methods. The third party supplier was experiencing delivery problems due to its inability to produce coils, which are internal components of the product. In turn, it was affecting our customer's production line. "The Lean approach to the MTR production problems helped build trust between the Melbourne and the MTR management teams," said Bryan. "Once we built trust, we were able to help transform their business." With Lean tools to help identify and resolve the issues, the backlog was reduced by 350 units and MTR is currently on schedule for its delivery commitments. "Lean is a building block for our global workforce," said Donnelly. "Implementing our enhanced Lean learning strategy will equip our employees with the tools and principles needed to meet the continually rising expectations of our customers." |