Aviation Jet Company
Operational Diagnostics Case Study
Anonymous $1.5B aviation business jet division, USA.
PROBLEM
The United States Economic downturn hugely impacted revenue. Their aircraft accumulated creating increased WIP, lower productivity & delivery risk.
SOLUTION
- Hoshin Kanri: Determine What are we trying to do to achieve Customer value and priority (External value prop then Internal operations to deliver and execute)
- Value stream VA/NVA: constituents to see disconnects across value stream & in own sphere of influence
- Value stream design to drive communication, vision and improvement alignment
RESULTS
- WIP reduced 50% from $160M to $80M
- Value stream redesign: Lead time reduced 33% from 33 to 21 days
- Productivity increased by 17% from 1800 to 1500 hrs/aircraft