£6Mn Increase in the Sale of Recommended Spare Parts
87% Reduction in the Lead-time for ‘Recommended Spares Parts List’
A global leader in the creation of aircraft products supplying the world's airlines & OEM's (Airbus, Boeing, American, Delta, Air France, BA, Emirates etc). This was one of the largest divisions within the corporation employing approximately 1600 employees across 4 business units with sales in excess of £200Mn.
The division was missing key aftersales revenue targets as the recommended spare parts list that the airline would order from was not available for the delivery of the first few shipsets of product, this would therefore reduce or eliminate the sale of recommended spare parts. The delay in the availability of the RSPL was also compounded by an ineffective new product introduction process which also led to product regularly being redesigned and reworked whilst in production and in-service. The process also included the complexity by cutting across a number of departments but was also an opportunity to develop a Lean facilitator’s capability in mapping non-manufacturing value streams.
Prior to this event, I had started an approach to standardise elements of the Lean Business system,
including how to run a Kaizen event for a Values Stream, Process or Operations/ Tasks and supporting
The led to the following key elements for improvement:
- Plan - Kaizen Charter & Change Readiness Assessment
- Do – Run the Kaizen Event & start testing countermeasures
- Follow Up - Check and refine actions
Kaizen Charter & change Readiness Assessment
- The problem was identified as part of an exec team meeting, this was then added to the kaizen funnel (list of rated problems) and was later given the sponsorship from the exec team. Prior to the event going ahead the kaizen charter and a change readiness assessment was made, this ensured the objectives were defined, attendees were identified, sponsorship gained and possible resistance identified. A kaizen kick off meeting was also held where the project objectives and roles communicated (management were required to play an active and visible role).
The Kaizen Event
- During the event the current state was value stream mapped and key questions were used to develop the future state map, improvement plan and the Kaizen A3 was then completed.
Follow Up - Check and refine actions
- During the 30 days that followed all countermeasures were tested, and where successful they were then standardise. A weekly value stream review took place to support the team in the completion of the improvement plan and to identify any new issues
- £6Mn Increase in the Sale of Recommended Spare Parts
- 87% Reduction in the Lead-time for ‘Recommended Spares Parts List’