Project Management Techniques

1. Project Management Techniques Steve Snelling 747 Industrial Engineering Boeing Commercial Airplanes stephen.r.snelling@boeing.com

2. My Background • B.S. Industrial Engineering degree from Virginia Tech & Co-Op student(7 work quarters) • (Reynolds Aluminum Co. – Richmond, Virginia) • Worked 5 years as an Area Industrial Engineer • (Reynolds Aluminum Co. – Listerhill, Alabama) • Worked 10 years as a Management Consultant • (A.T. Kearney Inc. & Arthur Young Intl. – Chicago, San Francisco & Vancouver - worked in 22 states & Canada) • Worked last 21 years as an IE - Process Improvement Engineer • (Boeing - Everett site: 747, 767, 777, & 787 airplanes – currently on 747-8 program, some projects coaching & mentoring) • Volunteer activities with IIE (nationally & locally) & PSEC (Puget Sound Engineering Council)

3. Presentation Outline • Pictures of Boeing products & 747 Freighter Assembly • Types & Structure of IE Projects • Five Project Stages • Some Project Dangers • Project Management Tips • An Example Project • Q&A

4. Commercial Airplanes

5. Military

6. Space

7. Commercial Airplanes - Military Aircraft & Missiles - Space & Communications - Air Traffic Management - Boeing Capital Corporation - Shared Services Group - Phantom Works

8. 747 Final Assembly at Everett, Washington

9. 747 Freighter

10. 747 Freighter

11. Industries of IE Projects Aluminum & Steel Materials Testing Ceramics Electronics Assembly Aerospace & Airplanes Plastics & forming Shipbuilding Entertainment Military Construction Applied Research Forestry & Logging Mining Healthcare Banking State & Federal Government Transportation Oil & Gas Utilities Insurance Consulting

12. Types of IE Projects • Process improvement • Problem resolution • Elimination of rework • Cost analysis • Facility layout • Equipment justification • Stand alone benchmarking • Systems integration

13. Industrial Engineering Functional Work Areas Project Management Production Control Factory Operations Quality • Product Mix Analysis • Forecasting • Project Planning • Project Scheduling • Projects Coaching • Risk Assessment • Chronic Rework • Supplier Quality • Production Scheduling • Lean Manufacturing - Systems Integration Costing Material Product Engineering Facilities - Supplier On-Site Visits • Supply Chain Management • Parts Storage & Movement - Comparison of Alternatives - Cost & Savings Estimating - Integrated Product Teams • Product Development • Product Costing - Layout Design - Process Flow Analysis Training Safety Tooling Transportation - Training Presentations • Course Scheduling - Machine Capacity • Tool Usage • Tool Certifications - Logistics Planning • Material Handling • Alternative Methods - Safety Investigations - Ergonomic Evaluations

14. Objectives Initial Findings Areas of Detail Cost Analysis of Alternatives Recommendations Summary Report & Presentation Implementation Plan Logical Progression of a Project

15. Five Project Stages 1 Start-up Activities 2 Process Documentation & Measurement 3 Develop & Evaluate Solutions 4 Conclusions & Recommendations 5 Implementation Follow-up 3/10/2014

16. Five Project Stages 1 Start-up Activities Project Profile & Schedule, Feasibility Examination 2 Process Documentation & Measurement Historical Data, Observations, Flow Diagrams, Cause/Effect, Benchmarking 3 Develop & Evaluate Solutions Preliminary Solutions, Evaluation of Findings 4 Conclusions & Recommendations Final Presentation Legend: Outputs from each stage 5 Implementation New Plan Follow-up 3/10/2014

17. Five Project Stages 1. Project Start-up Activities • Project is authorized and assigned • Initial meetings with the project’s customer • Project Team is formed • Initial understanding about project • A feasibility study may be required before proceeding too far • Project Profile is prepared & reviewed with the project’s customer • Project Schedule is prepared & reviewed with the project’s customer

18. Five Project Stages (continued) 2. Process Documentation & Measurement • Process flow charts are prepared, if applicable • Historical data is obtained & analyzed • New data is obtained & analyzed (e.g. Time Studies, direct observations) • Direct observations of current conditions • Digital pictures of current conditions • Interviewing for Information • Cause and effect diagrams, etc. • Possible Benchmarking tours

19. Five Project Stages (continued) 3. Develop & Evaluate Solutions • Solutions are listed and organized • Additional benchmarking, if needed • Simulations (mathematical or using simulation software) are performed, if applicable • Evaluation criteria are determined and utilized • All viable solutions are evaluated

20. Five Project Stages (continued) 4. Prepare Conclusions & Recommendations • Conclusions are documented and investigated • Final recommendations are documented • Final presentations are prepared, reviewed & given

21. Five Project Stages (continued) 5. Implementation & Follow-up • Implementation items are planned and assisted • Follow-up is done as necessary • A large scale implementation may become a new project

22. Some Project Dangers • Vague commitment from customer • Poor project description • Undefined or unclear objective • Unrealistic scope • Unrealistic deliverables • Poorly defined tasks • Too tight a schedule • Multiple customers not in agreement • No safety margin for late tasks • Key team members not available

23. Some Project Dangers (continued) • Poor communication with customer • Poor data storage & sharing of files • Late outside data sources • Sub standard quality of data being used • Bad team dynamics • Non action-oriented report (or final presentation) • Overlap with other project teams • Legal issues

24. Project Management Tips Project Profile & Scope • Develop a good Project Profile with a descriptive objective • Develop a realistic project Scope (the project’s “boundaries”) • Develop a logical Statement of Work / Schedule • Limit the simultaneous work you show in your project Schedule, if a small Team • Show the entire project in the Project Schedule to complete all Deliverables • Continually compare new action items against the original Scope & Deliverables • Keep track of the Estimated Completion Date (ECD) - adjust to complete on time, if possible

25. Project Profile 3/10/2014

26. Project Management Tips Project Schedule • I suggest taking an outline approach to building your project Schedule • Most big & complex projects can be broken down into phases or smaller projects • Make the project Schedule only as detailed and complex as the project requires • The Schedule needs to be a useful and dynamic tool, and not a static one-time-use document • Any Scheduling software cannot take the place of logical steps and good task time estimates

27. Project Schedule 3/10/2014

28. Project Management Tips (continued) Project Phases • Consider breaking larger projects into several phases • Work on project phases sequentially as smaller projects, if enough resources are available • Break out portions of the project, if necessary, due to delays in the project customer’s decision making • Implementation and significant follow-up activity is commonly viewed as a separate phase of the project

29. Project Management Tips (continued) Getting Help • Look for ways of partnering with other individuals or groups on projects • At Boeing, MR&D (now M&PT) has a variety of experts on call & may be able to purchase some inexpensive items for testing • Also at Boeing, other groups of “Subject Experts” bring additional needed expertise • (e.g. Tool Engineering, Quality Engineering, Design Engineering, etc.) • Most IE projects are collaborative • How well you coordinate with other groups is critical to a project’s success

30. Project Management Tips (continued) Project Communication • Use a variety of medium to communicate with your Team • (meetings, e-mail, digital pictures, file servers, white board discussions, Web Ex, etc.) • Ask for reviews during the project • Don’t wait for everyone to chase you down to find out how it is going • Regularly communicate with your project’s customer • The more frequent - the less “forced” the final presentation will seem • A positive & team-focused “Attitude” is critical to today’s project communications • A “bad attitude” is rarely tolerated for long

31. Project Management Tips (continued) Data Analysis & Measurement • Understand what data is needed, then develop your collection plan • (both historical & new data) • Use data to verify and help investigate findings • Utilize good statistical analysis skills, and check all calculations • Link data to actual observations, when possible • Set up lab tests and mathematical models • Constantly do “reality checks” with your subject experts

32. Project Management Tips (continued) Benchmarking • Benchmarking is mainly on-site tours of other similar facilities for best practice comparisons • Do the main benchmarking only after you fully understand your current process • If done too early, you are not ready • If done too late, the benchmarking can’t properly influence the solution development • Utilize “white board” discussions (that are later typed up) to reach consensus with your Team • Try to include your project’s customer on some of the benchmarking tours

33. Project Management Tips (continued) Solutions & Evaluations • Write down alternative solutions throughout the project • Plan to research and investigate them • Be creative and comprehensive when developing initial solutions ideas • Develop an evaluation approach • (The criteria you want to use to determine which solutions are best) • Rank the most likely solutions • (The ranking may be based on cost, schedule, or risk factors) • Bring the project’s customer in on the selection process and to offer real applications information • (A “reality check”)

34. Project Management Tips (continued) Cost & Savings Estimates • Cost & Savings estimates are built up from a good detailed outline • Get a good Unit Cost estimate for anything very expensive or with a large number of occurrences (biggest impact items) • Get the owning organizations to confirm your Costs & Savings estimates • List one-time Costs & Savings separately from recurring Costs & Savings

35. Cost & Savings Estimates Initial Savings Initial Costs Recurring Savings Recurring Costs

36. Project Management Tips (continued) Conclusions & Recommendations • Research & investigate the most likely conclusions with the entire Team • Review the possible conclusions ongoing with your project’s customer • Take the best of the ideas and form a logical recommendation • Assess the Recommendations by cost & risk when presented • Time phase the recommendations, if needed

37. Project Management Tips (continued) Presentations & Reports • Review all final presentations (and final reports) prior to being given to the project’s customer • Make sure all files (hard copies & electronic) are organized and stored properly at the conclusion of the assignment • Make sure Implementation Plans are well organized and doable (Implementation may take much longer then the Analysis)

38. Some Summary Comments • Recognize when to use Project Management techniques on your IE assignments • Form a good Team, with the needed Subject Experts • Develop a good Plan, then work your Plan to a successful conclusion, with your Team • Utilize good daily management and time management techniques • Monitor progress (overall & to the assigned tasks) and make adjustments as required • Keep your customer informed throughout the project • Learn from your own project management experiences (both the good and the bad)

39. A Sample Project Flap Damage Reduction EXAMPLE

40. Flap Damage Reduction EXAMPLE The 747 Trailing Edge Inboard and Outboard Flaps were consistently being damaged (dents, scratches, punctures, etc.) This caused major disruption to the shop & increased cost to the company IE used a project approach to analyze the entire flap build-up & installation sequence Developed improvement options working with the crew and tested & implemented them 3/10/2014

41. EXAMPLE Four Square Chart (Flap Damage Reduction) Pictures Goals • Reduce the amount of defects and damage related to Flaps • Minimize disruption to the shop and to the supplier • Improve customer satisfaction Problem Schedule Measure July Improve January Implementation April The 747 Trailing Edge Inboard and Outboard Flaps were consistently being damaged, causing major disruption to the shop floor and our suppliers, while increasing cost to the company. Control February Analyze November Define June

42. Project Profile (Flap Damage project) EXAMPLE

43. Project Schedule (Flap Damage project) EXAMPLE

44. Process Flow Chart (Flap Damage project) Inboards Outboards EXAMPLE FINISH

45. Pareto Chart EXAMPLE [Control Surface] 72% of defects are due to dents and scratches (2 of 10 defect categories, 20%)

46. Defect Locator (‘Measles’) Chart EXAMPLE [Control Surface]

47. Cause & Effect Diagram (Flap Damage project) EXAMPLE

48. 5-Whys Analysis(Flap Damage project) Three main causes: -Ineffective use of PREs -Dropping tools and screws -Walking on flaps Deep Root Causes: -Schedule overlap of jobs -PRE doesn’t cover proper areas -Side of Body Panel PRE is insufficient EXAMPLE 48

49. EXAMPLE Description of Solutions & Impacts to Process

50. 1. New Hinged PRE • Will replace the current acrylic PRE (PRotective Equipment) which is small (doesn’t cover entire flap), has a slick surface, and is removed when inconvenient or during flap tests. • The New Hinged PRE will be made of a new material, covers all three flap sections, and hinges at each section so that it will not have to be removed during flap test. • PRE is robust enough to prevent heavy damage. It is lightweight, durable, easy to install, and will stay on flap through build sequence. EXAMPLE