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Sustainability: Moving from Common Sense to Common Practice
2016 International Conference
Leesburg, VA - National Conference Center

September 18th - 21st

The Pillars of TOC: Driving Quantum Improvement for Aerospace Giants
Part 1: Inherent Simplicity for Inherent Complexity at Boeing
Part 2: Never Say I Know - Alaska Airlines’ Drive to Be Better Than Best

Part 1: Kevin Naya - DirectorDevelopment Program ExcellenceThe Boeing Company
Part 2: Mark A. Williams: Director of Material for Alaska Airlines

The Pillars of TOC: Driving Quantum Improvement for Aerospace Giants
From the projects that engineer new aircraft to the airlines that keep the planes in the air, TOC is being applied in new ways to dramatically improve the flow.


Inherent Simplicity for Inherent Complexity at Boeing
It’s hard to think of a company more complex than Boeing, the world’s largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. This presentation will explain how Boeing has embraced the concept of Inherent Simplicity to develop and implement a robust, low-tech solution. You will learn how this large company is accelerating flow and improving productivity on complex development programs with thousands of engineers.

Boeing invests in multi-billion dollar development programs. Thousands of engineers and other specialist may be involved in a large program. The complexity of a large program coupled with the highly technical work scope creates challenges of ownership, technical/schedule interdependencies, risk, oversight, and cost/schedule management.

To successfully complete a large development program, the various stakeholders must be aligned on the design and build approach and those stakeholders must effectively execute their respective work statements. In order to align stakeholders in a competitively bid project, the overall plan must be optimized globally. In order for each stakeholder to effectively execute, each stakeholder is incented to optimize locally. With limitations of leadership attention, optimizing globally and optimizing locally are in direct conflict.

Given the complexity of the technical work scope across a large-scale effort and the cost and schedule imperative of the competitive marketplace, disconnects in the collective plan will exist or emerge. The key question that the large collection of stakeholders face is whether to focus their attention globally or locally. Each option poses significant negative consequences. If appreciable time is spent globally, valuable time and attention will be taken away from local execution and result in poor local performance, reduced profit, and leadership instability. If stakeholders focus locally at the expense of program-level integration and alignment, major changes will occur to the integrated plan that will creates a rework death spiral. This is a classic conflict of global versus local optima.

Traditionally, for smaller organizations, it has been easy to prove that operating with local optima not only has so many negatives and in addition it would not be difficult to transition to the global way of operating. For a very large and complex organization like Boeing, moving from local to global is challenging both from a solution and a transition perspective.

In this presentation, we will explore where to break the core conflict for such a large complex organization and also share our experience, results, and lessons learned with an inherently simple approach. The focus of this presentation will be on the solution breakthrough and not so much on the transition. We will also share how we scaled the solution to hundreds of engineering teams across multiple locations, countries, and business units.


Never Say I Know - Alaska Airlines’ Drive to Be Better Than Best
Alaska Airlines repeatedly is named the best in the business by Wall Street Journal and JD Power’s. They have the most on-time arrivals, suffer from the fewest "extreme delays” and have the fewest complaints of all the major US Airlines. When they started to consider using TOC to manage their spare parts inventories, everyone involved thought that there might be some room for an incremental improvement. But the 4th pillar guided them to challenge their assumptions, and the resulting TOC-based solution is driving nothing short of "quantum improvement” in increased availability of spare parts and inventory reduction.

Kevin Naya - is the Director of Development Program Excellence (DPE), the corporate initiative aimed at breaking the development cost curve by emphasizing designing for value, producibility, and reuse; accelerating flow; and preventing traveled risk. Kevin and his team assist the leadership teams of top priority programs to improve the productivity and delivery on large, complex development programs by engaging in end-to-end integration across stakeholders as well as by providing support to leveraged teams to accelerate productivity and performance. Kevin was instrumental in creating the OPD (Operationalize Productivity & Delivery) Method that is designed to protect against uncertainty, to visualize planning, to prepare prior to starting tasks (called Full Kit), to drive daily execution & metrics, and to enable continuous improvement & team engagement. Kevin is passionate about business competitiveness, program execution, first-time quality, leadership excellence, and employee development. Prior to this assignment, Kevin led Competitiveness & Integration for Boeing Defense, Space & Security (BDS) Engineering, Mission Assurance & Product Support (EMAPS). He worked with stakeholders across the enterprise to shape and deploy the Engineering Excellence and Lean+ 10X initiatives. Kevin’s past roles include Director of Lean+ for Space and Intelligence Systems, Deputy General Manager on a $150 million subsidiary, mission system lead on various satellite programs, R&D project manager, telemetry lead on the Magellan Venus Radar Sensor, and Acting Chief Marketing Officer of a new venture. Kevin holds a Bachelor of Science degree in Electrical Engineering from the University of Hawaii, a Master of Science degree in Statistical Communication from Stanford University, and a Master of Business Administration degree from the Anderson School at UCLA. Kevin is one of the executive champions for the Boeing Asian American Professional Association in El Segundo, Huntington Beach, and Seal Beach. At home, Kevin spends most of his time with family including raising his three teenage daughters and trying not to age more than 1 year each month.

Mark A. Williams - is the Director of Material for Alaska Airlines. As such, he is responsible for the 24/7 aircraft on the ground (AOG) material response department, stores department, material planning department, repairs control department, warranty department, surplus/after market sales, maintenance contracting, material engineering, and three of the airlines internal repair shops (avionics, wire, and interiors).

Prior to this Alaska Airlines Mark was the Director of Material at Aloha Airlines with the same responsibilities that he has at Alaska Airlines and also the added responsibility for ground support equipment.

Mark retired from the United States Navy in September 1999 after serving over 20 years of distinguished service, and is currently residing in Redmond Wa. with his beautiful wife of the last 30 years Kaori, and their son Bryan.

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