Report of Survey Conducted at

KAISER ELECTRONICS

SAN JOSE, CA

JULY 1994

BEST MANUFACTURING PRACTICES

Center of Excellence for Best Manufacturing Practices

3

P R E F A C EP R E F A C E

Kaiser Electronics places considerable emphasis on continuous improvement and a zero-defectstandard in the manufacturing of its products. Management has empowered employees, created anenvironment for change and creativity, and stressed effective leadership and teamwork. The companydeveloped a Business Process Matrix integrating seven major processes that are linked to organiza-tional elements. Each process has evolved into a Council whose members establish a charter, set goals,and develop a strategic plan. Working in parallel with these Councils are continuous improvementefforts such as team birthing, visual displays, flow charts/maps, and communication. KaiserElectronics has adopted a commercial model for implementing large-scale, rapid, organizationalchange. By implementing this process, Kaiser Electronics directly has benefited from strongerleadership and increased teamworking, both critical elements in effective change.

BMP surveys are conducted to identify best practices in one of the critical path templates of DoD4245-7M, “Transition from Development to Production.” This document provides the basis for BMPsurveys that concentrate on areas of design, test, production, facilities, logistics, and management.Practices in these areas and other areas of interest are presented, discussed, reviewed, and docu-mented by a team of government engineers who are invited by the company to evaluate the company’spolicies, practices, and strategies. Only non-proprietary practices selected by the company arereviewed. In addition to the company’s best practices, the BMP survey team also reviews potentialindustry-wide problems that can be referred to one of the Navy’s Manufacturing Technology Centersof Excellence. The results of the BMP surveys are entered into a database for dissemination througha central computer network. The actual exchange of detailed data is between companies at theirdiscretion.

The Best Manufacturing Practices program is committed to strengthening the U.S. industrial base.Improving the use of existing technology, promoting the introduction of enhanced technologies, andproviding a non-competitive means to address common problems are critical elements in achievingthat goal. This report on Kaiser Electronics will provide you with information you can use forbenchmarking and is part of the national technology transfer effort to enhance the competitivenessof the U.S. Industrial Base.

During the week of July 25, 1994, a Best Manufacturing Practices(BMP) survey was conducted at Kaiser Electronics, located in SanJose, California. Kaiser Electronics facilities occupy 280,000square feet and house 700 employees. Dominating the marketplacein cockpit displays for tactical aircraft, Kaiser Electronics deliveredover 500 display units in 1993, with annual sales of $120 million.Head-Up Displays, Helmet Mounted Displays, Night Vision andLiquid Crystal Flat Panel Displays are products that Kaiser Elec-tronics currently manufactures for the Army, Air Force and theNavy.

“CRITICAL PATH TEMPLATESFOR

TRANSITION FROM DEVELOPMENT TO PRODUCTION”

DESIGN

PRODUCT

FUNDING

MONEY PHASING

TEST PRODUCTION FACILITIES LOGISTICS MANAGEMENT

DESIGN REF MISSION PROFILE

TRADE STUDIES

DESIGN PROCESS

PARTS & MATERIALS SELECTION

COMPUTER - AIDED DESIGN

BUILT-IN TEST

DESIGN REVIEWS

DESIGN REQUIREMENT

DESIGN POLICY

DESIGN ANALYSIS

SOFTWARE

DESIGN FOR TESTING

CONFIGURATION CONTROL

DESIGN RELEASE

INTEGRATED TEST

FAILURE REPORTING

SYSTEM

UNIFORM TEST

REPORT

SOFTWARE TEST

DESIGN LIMIT

LIFE

TEST, ANALYZE & FIX (TAAF)

FIELD FEEDBACK

MANUFACTURING PLAN

QUALIFY MFG. PROCESS

PIECE PART CONTROL

SUBCONTRACTOR CONTROL

DEFECT CONTROL

TOOL PLANNING

SPECIAL TEST EQUIPMENT (STE)

COMPUTER-AIDED MFG. (CAM)

MANUFACTURING SCREENING

MODERNIZATION

FACTORY IMPROVEMNTS

PRODUCTIVITY CENTER

LOGISTICS SUPPORT ANALYSIS

MANPOWER & PERSONNEL

SUPPORT & TEST

EQUIPMENT

TRAINING MATERIALS & EQUIPMENT

SPARES

TECHNICAL MANUALS

MANUFACTURING STRATEGY

PERSONNEL REQUIREMENTS

DATA REQUIREMENTS

PRODUCTION BREAKS

TECHNICAL RISK

ASSESSMENT

TRANSITION PLAN

BREADBOARD DEVELOPMENT

BRASSBOARD DEVELOPMENT

PROTOTYPE DEVELOPMENT &

REVIEW

CONCEPT STUDIES & ANALYSIS

SPECIFICATION DEV./ALLOCA./

VALID.

DESIGN FOR ASSEMBLY

TEMP DEVELOPMENT/

EXECUTION

SOFTWARE SIMULATOR

PRODUCTION FABRICATION

ENVIRONMENTAL ISSUES

FIELD VISITS/ SITE SURVEYS

COST ASSESSMENT

LOGISTICS ANALYSIS

DOCUMENTATION

DETERMINING DEFINING NEED

FOR SYSTEM

PREPARE REQUIREMENT DOCUMENTS

QUALITY ASSURANCE

DESIGN/ MILESTONE

REVIEW PLANNING

NEW PMWS TEMPLATES (SEE APPENDIX E)

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1. EXECUTIVE SUMMARY

1.1 BACKGROUND .............................................................................................. 11.2 BEST PRACTICES ......................................................................................... 11.3 INFORMATION ............................................................................................... 21.4 POINT OF CONTACT ..................................................................................... 3

2. BEST PRACTICES

2.1 DESIGNPROTOTYPE DEVELOPMENT AND REVIEW

Stereolithography ..................................................................................5

2.2 PRODUCTIONSUBCONTRACTOR CONTROL

Supplier Involvement and Certification ..................................................5QUALIFY MANUFACTURING PROCESS

Demand Flow™ Manufacturing.............................................................7

2.3 FACILITIESFACTORY IMPROVEMENTS

Maintenance Facilities Work Request ...................................................7

2.4 MANAGEMENTMANUFACTURING STRATEGY

Product Improvement Teams ................................................................8Root Cause Problem Solving Road Map ..............................................8Business Process Improvement Road Map ......................................... 9Leadership, Teamwork and Organizational Change .......................... 11Procurement Credit Card Program .....................................................11

QUALITY ASSURANCEContinuous Improvement Process ......................................................12

3. INFORMATION

3.1 DESIGNDESIGN PROCESS

Concurrent Engineering ......................................................................13

C O N T E N T S

3.1 PRODUCTIONMANUFACTURING PLAN

Sequence of Events ............................................................................13DEFECT CONTROL

Statistical Measures of Work Performance ........................................ 13PRODUCTION FABRICATION

Operation Method Sheets ...................................................................14

3.3 FACILITIESFACTORY IMPROVEMENTS

Line Design ......................................................................................... 15

3.4 MANAGEMENTMANUFACTURING STRATEGY

Company Goals and Objectives ..........................................................15Company Policy Manual .....................................................................15

PERSONNEL REQUIREMENTSTraining ............................................................................................... 16

APPENDIX A - TABLE OF ACRONYMS ......................................................................... A-1APPENDIX B - BMP SURVEY TEAM .............................................................................. B-1APPENDIX C - PROGRAM MANAGER'S WORKSTATION ............................................ C-1APPENDIX D - NAVY CENTERS OF EXCELLENCE ...................................................... D-1APPENDIX E - NEW BEST MANUFACTURING PRACTICES PROGRAM TEMPLATES ... E-1APPENDIX F - COMPLETED SURVEYS ......................................................................... F-1

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C O N T E N T S (C o n t i n u e d)

iii

F I G U R E S

2-1 A Supplier Progress Chart ...............................................................................62-2 Demand Flow™ Manufacturing Basic Concept: A Pull System ...................... 72-3 Root Cause Problem Solving Report ...............................................................92-4 Business Process Improvement Roadmap ....................................................10

3-1 Operation Method Sheet ................................................................................14

S E C T I O N 1

EXECUTIVE SUMMARY

1

cess has evolved into a Council whose members establish acharter, set goals, and develop a strategic plan. All councilsare cross-functional and aligned to meet company goals andobjectives. Work Function Teams, as part of the Councils,are established on an as-needed basis to solve specificproblems and are dissolved after satisfactory results.

Working in parallel with these Councils are continuousimprovement efforts such as team birthing, visual displays(storyboards), flow charts/maps, and communication. Thechange tool Kaiser Electronics has adopted (from a com-mercial company) is DVF>R which is a model for imple-menting large-scale, rapid, organizational change. By imple-menting this process, Kaiser Electronics directly benefitedfrom stronger leadership and increased teamworking, bothcritical elements in effective change.

The reason for change is to be more successful at what onedoes and to meet one’s ultimate vision. By moving fromquality improvement (product) to continuous improvement(process to product), Kaiser Electronics created the path tosuccessfully realizing its vision. McDonnell Douglas Aero-space has recognized Kaiser Electronics efforts conferringa gold rating in quality and delivery, and silver rating forSPC implementation and business management, an achieve-ment no other supplier has reached with McDonnell Dou-glas Aerospace.

The new approaches Kaiser Electronics has adopted helpthe company remain competitive in a continually changingbusiness environment. The Best Manufacturing Practicesteam found the following practices to be among the best ingovernment and industry.

1.2 BEST PRACTICES

The following best practices were documented at KaiserElectronics:

Item Page

Stereolithography 5

Kaiser Electronics uses stereolithography to re-duce product cycle times, evaluate designs, deter-mine tooling needs, and evaluate manufacturability.It is also used as a valuable marketing tool bydelivering high fidelity models with proposals.

1.1 BACKGROUND

Kaiser Aerospace and Electronics Corporation is com-prised of 22 companies with over 2200 employees. These22 companies have created a business base consisting ofseventy percent government sales and thirty percent com-mercial sales and are working towards a thirty percentincrease in commercial sales by 1998.

One of the companies within Kaiser Aerospace andElectronics Corporation is Kaiser Electronics. Located inSan Jose, CA Kaiser Electronics facilities, occupy 280,000square feet and employs 700 employees. Dominating themarketplace in cockpit displays for tactical aircraft, KaiserElectronics delivered over 500 display units in 1993, withannual sales of $120 million.

Head-Up Displays, Helmet Mounted Displays, Night Vi-sion and Liquid Crystal Flat Panel Displays are products thatKaiser Electronics currently manufactures for the Army, AirForce and Navy - its top customers. It currently is developingan advanced, 35° x 52° raster/stroke Helmet Mounted NightVision System (Wide Eye™) for the Air Force’s Comanchehelicopter. For the Navy and the Marines, it is manufacturingavionics display systems for the F-14, F-18, and Cobraaircraft, and for the Air Force, an avionics display system forthe F-22 aircraft. A head-up display systems is also beingproduced for the Swedish JAS-39 aircraft.

With its mission set - to be the vision system supplier ofchoice for defense and aerospace applications - KaiserElectronics put emphasis on continuous improvement anda zero-defect standard in the manufacturing of its products.To accomplish this, management realized that it had toempower its employees, create an environment for changeand creativity, stress effective leadership and teamwork,and, as management states, make it fun.

Developing a continuous process improvement planstarted Kaiser Electronics on its way to its current 100%quality and delivery rate to its customers. Viewing continu-ous improvement as an all encompassing effort, KaiserElectronics developed a Business Process Matrix integrat-ing seven major processes that are linked to organizationalelements identified by the President’s office. These pro-cesses are Business Development, Engineering, Produc-tion, Procurement, Program Management, Employee De-velopment and Preferred Supplier Certification. Each pro-

2

Item Page

Supplier Involvement and Certification 5

Kaiser Electronics has implemented a suppliercertification program based on a detailed surveycovering many diverse aspects of the supplier. Italso closely monitors the design, development,and production status of critical procured items asthey are fabricated at the supplier.

Demand Flow™ Manufacturing 7

Kaiser Electronics applies a manufacturing phi-losophy based on Demand Flow™ Technology,an integrated assembly, test, and inspection pullmanufacturing system.

Maintenance Facilities Work Request 7

Kaiser Electronics has instituted a work ordersystem to quickly address facility and equipmentmaintenance action requests.

Product Improvement Teams 8

Kaiser Electronics uses cross-functional ProductImprovement Teams to identify and correct prob-lems affecting performance, cost, scheduling, andcustomer satisfaction, and to improve engineeringand manufacturing processes to reduce cycle timesand defects per unit.

Root Cause Problem Solving Road Map 8

Kaiser Electronics’ Root Cause Problem SolvingRoad Map outlines eight steps for effective prob-lem solving by teams to achieve continuous im-provement and provides tools and techniques,sample forms, and guidelines for effective teammeetings.

Business Process Improvement Road Map 9

The Business Process Improvement Road Map atKaiser Electronics, a ten-step methodology de-signed to achieve breakthrough improvements innon-manufacturing processes, has been appliedsuccessfully to achieve large gains in performancein key business processes.

Leadership, Teamwork andOrganizational Change 11

Rapid and effective organizational change at Kai-ser Electronics has been achieved by the effectiveapplication of advanced tools such as the DVF>Rmodel, open forums, and a large-scale organiza-tional change process.

Item Page

Procurement Credit Card Program 11

Kaiser Electronics’ Procurement Credit Card Pro-gram allows authorized employees to purchaselow dollar items without the administrative costassociated with processing purchase orders.

Continuous Improvement Process 12

Kaiser Electronics has integrated a fundamentallysound and innovative continuous improvementprogram into six critical processes of its business.

1.3 INFORMATION

The BMP survey team identified the following informa-tion topics at Kaiser Electronics.

Item Page

Concurrent Engineering 13

Kaiser Electronics is using integrated product de-velopment to provide a systematic approach to theintegrated, concurrent design of the product andrelated processes including manufacturing andsupport.

Sequence of Events 13

Kaiser Electronics develops a sequence of eventsto identify non-value added processes and to aid inintegrating those events into operations which canbe completed within a specified time period.

Statistical Measures of Work Performance 13

Kaiser Electronics is utilizing statistical tools toassist in the identification and tracking of manu-facturing defects and work group performance.

Operation Method Sheets 14

Kaiser Electronics uses Operation Method Sheetsthat construct a Pictorial Work Instruction to du-plicate the sequence of events process.

Line Design 15

Kaiser Electronics designs its manufacturing workcell lines based on the maximum production de-mand. Direct resources, such as personnel andequipment, are then allocated based on currentneed.

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Item Page

Company Goals and Objectives 15

Kaiser Electronics successfully adopted the Houseof Quality methodology from Quality FunctionDeployment to identify, document, and dissemi-nate company goals and objectives.

Company Policy Manual 15

Kaiser Electronics has initiated a company-wideeffort to overhaul the cumbersome administrationof generating, maintaining, and controlling policyand procedures manuals to a more usable, acces-sible, and efficient automated documentation sys-tem.

Training 16

The Kaiser Electronics Training Program has es-tablished formal policies and procedures to guideits training program.

1.4 POINT OF CONTACT

For further information on best practices or informationitems contained in this report, please contact:

Mr. Erik HoutsContinuous Improvement Program ManagerKaiser Electronics2701 Orchard ParkwaySan Jose, CA 95134Phone: (408) 432-3000, Ext. 1089FAX: (408) 433-9572

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S E C T I O N 2

BEST PRACTICES

5

2.1 DESIGN

PROTOTYPE DEVELOPMENTAND REVIEW

Stereolithography

Kaiser Electronics uses stereolithography (SLE) for manypurposes including design validation, manufacturing costreduction, purchasing, and marketing.

In its design validation application, Kaiser Electronicsuses SLE through its HP workstation linked to a VAX,plotters, and file server using Unigraphics software forbasic design. Solids Modeling and Parametric Design areused for visual images, fit checks, and complex linkedobjects. An IGES package is also used for data conversion.CAD data is transmitted to an SLE parts supplier, and it isevaluated, and validated through discussion with the de-signer. The data is then forwarded to the stereolithographicequipment. The entire process from design to completion tothe finished part typically requires only one week.

Kaiser Electronics also uses SLE parts to improve qualityand reduce costs in manufacturing. Designers employ mock-ups to verify designs and check fit and function. Designchanges made at this stage are inexpensive since no productor tooling has been manufactured. These mock-ups are alsoforwarded to production personnel to evaluatemanufacturability. Production personnel can have an earlyopportunity to evaluate the assembly process and use theSLE parts to check fits, and/or develop tooling and fixturesprior to production. For example, optical alignment toolingfor the prism assembly of the Night Vision System (NVS)was completed with an SLE part, resulting in one monthsaved over traditional fixturing time. Repairability andmaintainability issues are also addressed using SLE partsearly in the process.

Parts suppliers benefit from working with SLE parts.NVS suppliers were able to reduce initial delivery times bytwo weeks because difficult-to-interpret CAD data waseasily understood in SLE form. Ambiguous items on thedrawing were easily comprehended using a solid form.

SLE parts are used for master patterns since the part canbe used for fiberglass lay-up tooling, lost plastic investingcasting operations, or flexible mold casting operations.

Marketing is also aided by using SLE parts. When highfidelity models are delivered with proposals, the customer

can see exactly how the part will appear, and changes can besuggested without significant cost increase.

Stereolithography is a beneficial tool for many depart-ments within Kaiser Electronics. It is a quick and inexpen-sive way to produce part models for evaluation beforeproduction, can be used to determine manufacturability andtooling needs, can help suppliers easily interpret CAD data,can be used for master patterns, and can be applied inmarketing situations. SLE is helping Kaiser Electronicsbecome more productive by reducing critical product cycletimes.

2.2 PRODUCTION

SUBCONTRACTOR CONTROL

Supplier Involvement and Certification

As part of its continuous improvement drive, KaiserElectronics reengineered its procurement functions to es-tablish a world-class supplier base. It decreased its numberof suppliers while increasing on-time delivery ratings formultilayer boards and reducing supplier action requestcycle times. Kaiser Electronics has reduced its approvedsuppliers from 403 in 1992 to 363 in 1994 with a 1996 goalof 275.

Kaiser Electronics consolidated all procurement func-tions into a single Procurement Engineering Department.This department combined component engineering, sup-plier management, receiving inspection, and procurementquality assurance functions. The result was a fully inte-grated, highly responsive team dedicated to improving theperformance, quality, and timeliness of procured materialsand services. To further enhance Kaiser Electronics’ abilityto proactively manage procurement, Commodity Teamswere formed for items such as connectors, castings, ma-chining, microcircuits, semiconductors, passive compo-nents, and flex cables. These Commodity Teams includedprocurement engineers, buyers, and design engineers, char-tered to develop and maintain approved and preferredsupplier lists, certify suppliers, review supplier perfor-mance and corrective actions, and streamline the overallprocurement process.

Central to Kaiser Electronics’ procurement controls is itssupplier certification program. Approved suppliers areranked as approved, preferred, or fully certified. Each level

6

of certification merits preferential status for continuouslong-term business. Supplier certification is initiated byobtaining a written commitment from the supplier statingthe intent and desire to work with Kaiser Electronics in along-term partnership and to become a world-class sup-plier. A supplier survey is then conducted of the candidatecompany, first as a self-assessment, then as a Kaiser Elec-tronics review. The survey, tailored to the commodity orservice being procured, includes a questionnaire, detailedscoring criteria and scoring guidelines. The areas surveyedinclude leadership; design, development, and documenta-tion control; material control; manufacturing; quality assur-ance and control; statistical quality control; measurementand testing; cost; and commodity/process specific criteria.These evaluation criteria are in addition to the qualityassurance requirements of MIL-I-45208A or MIL-Q-9858A.

For selected critical components, the Commodity Teamsalso closely monitor the status of their procurements as theyare worked by their suppliers. When purchase orders aredelivered to a supplier, the Kaiser Electronics Commodity

Team and the supplier negotiate a production schedule forthe items procured. Kaiser Electronics then graphicallytracks the progress of ordered items as they are fabricated atthe supplier. Figure 2-1 presents an example of a suppliermonitoring chart. By maintaining a close association withits critical parts suppliers, Kaiser Electronics can adjust itsproduction schedules. Kaiser Electronics is also able toassist its suppliers in addressing problems before they aretranslated into missed delivery dates or poor parts quality.

Kaiser Electronics has noted several benefits as a result ofits continuous improvement of procurement controls andthe supplier certification program: improved quality ofpurchased items, improved supplier on-time deliveries,reduced cycle times for vendor corrective actions andKaiser Electronics response to supplier inquiries, and im-proved communications between Kaiser Electronics and itssupplier base. On-time delivery ratings for multilayer boardsincreased from 68.3% in May 1993 to 99.3% in June 1994.Supplier action request cycle time decreased from 59 daysin 1991 to 6.3 days in 1994.

FIGURE 2-1. A SUPPLIER PROGRESS CHART

6/23/94

6/19/94

6/15/94

6/11/94

6/7/94

6/3/94

5/30/94

5/26/94

5/22/94

5/18/94

5/14/94

5/10/94

5/6/94

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Where Used: 123456-101 Procur. Eng: Design Eng: Buyer: Total Qty: 30 Ship Qty – 1st Art / Prod. Units: 30

Comments: The mfr had a problem trying to stay on schedule due to the core pin and moulding drawings. Procurement Engineering expressed continual concern and the mfr responded by not only recovering to schedule but delivering the connectors 5 days early.

7

QUALIFY MANUFACTURING PROCESS

Demand Flow™ Manufacturing

Kaiser Electronics implemented a commercial manufac-turing philosophy based on Demand Flow™ Technology(DF™T), developed by the John Castanza Institute ofTechnology, and is adapting it for use in the militarymanufacturing arena.

DF™T is an integrated assembly, test, and inspection pullmanufacturing system (Figure 2-2) that has been widelyused in the Far East and the United States. This methodapplies kanban techniques to trigger the manufacturingprocess and incorporates components from almost all as-pects of a manufacturing operation from line design to workinstructions. The technique accommodates lot sizes downto one, and provides for flexibility in scheduling throughputby allowing operators to perform various processes withinthe manufacturing cells.

By adopting DF™T, Kaiser Electronics realized severalbenefits. It eliminated the job category of “inspector” andplaced the requirement on downline operatorsfor subse-quent inspections. Cycle times were reduced from 155 daysto 60 days, with a target of 38 days. Work in progress wasreduced, with batch sizes approaching one, and faster inven-tory turnover projected, from two turns per year to between6-7 turns per year. When this improvement has been achieved,it will eliminate the need for progress payments.

2.3 FACILITIES

FACTORY IMPROVEMENTS

Maintenance Facilities Work Request

Kaiser Electronics takes an integrated, proactive ap-proach to ensure that facility uptime is maximized. KaiserElectronics realizes that a critical aspect in a manufacturingoperation is the maintenance of equipment and facilities.Equipment and facilities that are inoperative or inefficientcan hinder production as well as create safety issues. There-fore, to achieve maximum productivity from personnel andequipment, Kaiser Electronics implemented a work ordersystem to satisfy requests for maintenance actions on thefacility and the equipment.

To place a work request, an employee calls a single phonenumber, and enters his badge number. Information regard-ing the caller is automatically retrieved. The action isassigned a Maintenance-Facilities Work Request numberand a priority status based on the type of request. The systemincorporates an automatic preventive maintenance (PM)scheduler that places PM requirements on the weekly sched-ule for the maintenance personnel. These PM times aremonitored and factored into the TAKT times established inthe design of the manufacturing lines.

The performance of the maintenance team is monitoredthrough various activities. Work requests are not closed

FIGURE 2-2. DEMAND FLOW™ MANUFACTURING BASIC CONCEPT: A PULL SYSTEM

Final Assembly

RAW MATERIAL DEMAND

RAW MATERIAL INPUT

PRODUCT DELIVERYPRODUCT FLOW

CUSTOMER DEMAND SIGNALPRODUCTION INFORMATION FLOW

Feeder #1 (CCA)

Final AssemblyKanban

Kanban

Raw In-Process Inventory

(RIP)

Finished Goods

Inventory1 Unit/ TAKT timeKanban

Feeder #3 (LVPS)

Feeder #2 (CRT)

TAKT

8

until the times and hours are signed off by the maintenancetechnician, and information is input into the system. Aweekly log of direct labor hours is kept and printed. Cus-tomer satisfaction surveys are frequently distributed, andthe metric results are posted on a highly visible bulletinboard in the facility.

Kaiser Electronics has carried this integrated approachbeyond facilities and equipment maintenance issues. Inaddition to tracking work orders and PM requirements, itmaintains and monitors governmental and safety require-ments that pertain to its operation. It also performs proactiveactivities to monitor safety, environmental, and hazardouswaste issues.

By implementing the work order system, Kaiser Elec-tronics gained significant dividends through cost avoidanceof over $80,000 in water and electricity conservation; in-creased uptimes of 99.8% in test chambers, and establishedemployee satisfaction through successful results of requests.

2.4 MANAGEMENT

MANUFACTURING STRATEGY

Product Improvement Teams

Product Improvement Teams at Kaiser Electronics iden-tify and correct problems affecting performance, cost, sched-ule, and customer satisfaction. They improve engineeringand manufacturing processes to reduce cycle times anddefects per unit. Teams are formed for specific product linesand establish and maintain individual missions, visions,goals, and working styles. Prior to 1992, production crossfunctional teams did not exist and all defect control andproduct improvement activities were directed by produc-tion and engineering managers using weekly project meet-ings. The system was reactive rather than proactive, and itsineffectiveness led directly to the development of the prod-uct improvement team process.

When a team is established, a one day team building eventis conducted to launch the team and develop its mission andvision. Each team has a sponsor and a trained team leader.The teams have learned that they need to meet frequently,normally five times per week. These working meetings aredesigned and planned with a specific purpose and expectedoutcome, and are conducted quickly and efficiently. Theteams develop and apply their own improvement strategies.For example, one team that works on F-18 displays uses atwo pronged attack by acting on all production failures andon all failures reported by its customer, McDonnell Dou-glas. All failures and corrective actions are tracked in adatabase and reported monthly to McDonnell Douglas andthe Navy.

Pareto charts are used to identify the most frequentsources of problems, and Kaiser Electronics’ Root CauseProblem Solving (RCPS) Road Map process serves as aprimary tool in determining root causes and implementingcorrective action. Metrics and progress charts are promi-nently displayed on visually effective story boards in theplant. This process is effective in achieving continuousincremental improvements. The focus is moving failuredetection upstream in the process for less costly, earlierdefect detection. Applying DF™T, defects are addressed asthey occur.

Kaiser Electronics’ Product Improvement Teams havebeen successful. From November 1991 to June 1994, one F-18 display team reduced failures per unit under test by 85%and failures per unit shipped by 78%. It was awarded thehighest level supplier rating (Gold) in both Quality andDelivery by its customer McDonnell Douglas. The productimprovement process also facilitated the use of D™T thatdoes not function with high failure rates.

Lessons learned by Product Improvement Tteams haveproduced improvements in company design guides and hand-books. The teams have implemented and improved calibra-tion maintenance schedules and procedures. Troubleshoot-ing built-in-test software and changes to manufacturingstandard practices have been developed. Product Improve-ment Teams also contributed to the development of suchtools as the process improvement story board, team libraries,and RCPS reports used by all teams at Kaiser Electronics.

Root Cause Problem Solving Road Map

Kaiser Electronics implemented a formal process forRCPS. It is a primary technique applied by process andproduct improvement teams for achieving incremental im-provement. The process is a method for effective root causeproblem elimination and is presented as an eight stepProblem Solving Road Map that describes the tools andtechniques used in a systematic approach to effective prob-lem solving. The process requires the expert knowledge ofindividuals working together as a team to implement longlasting corrective action. Probability of success is maxi-mized by utilizing proven tools and techniques and mini-mizing the pitfalls that can potentially lead to failure.

The Road Map is presented in a booklet divided into foursections for easy use by the teams. The first section outlineseight steps for effective problem solving that were devel-oped by the Council for Continuous Improvement (CCI). Itincludes activities that problem solving teams typicallyundertake plus recommended outputs that should be com-pleted at the conclusion of each step. Checklists are providedfor each step. There is a section showing and describingwhich tools and techniques apply at each of the eight steps.

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A section containing forms is provided for teams to copy anduse. Figure 2-3 shows the RCPS Report form and how itrelates to the eight problem solving steps. There is also asection describing the elements of effective meetings tofacilitate team planning and communication. The Road Mapis a living document. It was put together from concepts,techniques, and tools found to be common to effectiveproblem solving from a variety of sources including CCI,Ford Motor Company, Lockheed Corporation, IOMEGACorporation, and various publications from GOAL/QPCand other sources. It is updated as other effective tools andtechniques become known and through the continuing expe-rience with the process by problem solving teams.

The RCPS Road Map has proven to be one of the mostpowerful tools available to teams at Kaiser for continuousimprovement. It is presented in an understandable and easyto use format and has been universally adopted and appliedby all teams.

Business Process Improvement Road Map

Kaiser Electronics has developed and implemented abusiness process improvement methodology designed toachieve breakthrough improvements in non-manufacturingareas. It is presented in the form of a Business ProcessImprovement Road Map similar to the RCPS Road Map.This ten step approach examines the design of a processwith the objective of achieving large gains in performance.It is more encompassing than RCPS, in that it improves thedesign of the entire process rather than eliminating justspecific problems within the process.

Figure 2-4 depicts the ten steps of the Business ProcessImprovement Road Map which can be placed into thefollowing four major categories:

• Understanding - Steps 1-3 address the purpose, theoutputs, and the methods used to derive the outputs ofthe process.

FIGURE 2-3. ROOT CAUSE PROBLEM SOLVING REPORT

Organize & Plan

Describe the Problem

Contain the Problem

Identify the Root Cause

Plan Corrective Action

Verify Corrective Action

Make Permanent Corrective Action

Recommend System Changes

Problem ID: Program: Leader:

Team Members: Phone:

Sponsor:

Root Cause Category:

Effective Date:

% Contribution to Cause:

C/A Verification, % Effective

Effective Date or S/N:

% Effective

Date Opened:

Problem Title:

Problem Description:

Containment Action:

Root Cause(s):

Corrective Action(s):

Permanent Corrective Action Implementation:

Recommended System Changes:

Reported By: Updated: Date Closed:

ROOT CAUSE PROBLEM SOLVING REPORTPROBLEM SOLVING ROADMAP

10

• Paradigm Changing - Steps 4-6 address benchmarking,idealizing, streamlining, and error-proofing the pro-cess.

• Managing - Steps 7-9 address the training, tools, tech-niques, and logistics necessary to implement and main-tain the new process.

• Continuous Improvement - Step 10 addresses the needto continually improve the effectiveness of the processby employing root cause problem solving or by furtherprocess improvement.

The Road Map contains a section describing each step ofthe process including what, and why, expected outcomes,activities such as which tools and techniques to apply, andrequired items such as forms. There is a section on processimprovement techniques such as Quality Function Deploy-ment, flow charting, Failure Modes and Effects Analysis,and process flow analysis. Another section describes com-monly used management and planning tools such as anaffinity diagram, interrelationship diagraph, tree diagram,prioritization matrices, and matrix diagram. There are sec-

FIGURE 2-4. BUSINESS PROCESS IMPROVEMENT ROADMAP

ORGANIZE AND PLAN

UNDERSTAND PROCESS

NEEDS

DESCRIBE CURRENT PROCESS

BENCHMARK AND

IDEALIZE

STREAMLINE ELIMINATE

WASTE

PILOT NEW

PROCESS

IMPLEMENT AND

STANDARDIZE

MONITOR AND

IMPROVE

ERROR-PROOF PROCESS

IDENTIFY SUCCESS FACTORS

FORM TEAM DEVELOP CHARTER DEVELOP A PROJECT PLAN

FAILURE MODE ANALYSIS (FMEA)

IDENTIFY:

JOB SKILLS TRAINING NEEDS EQUIPMENT & TOOLS PERFORMANCE INDICATORS DATA COLLECTION METHODS

VALUE-ADDED ANALYSIS

NEW PROCESS EFFICIENCY

SMALL SCALE IMPLEMENTATION CHECK PERFORMANCE IDENTIFY IMPROVEMENT OPPORTUNITIES

FULL SCALE IMPLEMENTATION

MONITOR PERFORMANCE & EFFECTIVENESS ACT TO IMPROVE

FLOW CHART DETERMINE CYCLE TIME DETERMINE PROCESS EFFICIENCY

BENCHMARK BRAINSTORM SIMPLIFY

IDENTIFY:PROCESS PURPOSE OUTPUTS OF PROCESS CUSTOMER NEEDS & EXPECTATIONS

11

tions covering the RCPS Road Map and guidelines foreffective team meetings. A section containing applicableforms is also included. The Road Map document is designedto be brief, visual, understandable, and easily usable byteams.

The Business Process Improvement Road Map has beenin effect for eight months. It has quickly become a primarytool for continuous improvement throughout the companyand has been applied successfully to achieve process im-provement breakthroughs in key business processes.

Leadership, Teamwork and OrganizationalChange

Kaiser Electronics believes that leadership is the first ofits strategic goals, and leadership’s role is to create theenvironment for change and manage the processes in a waythat supports teamwork and continuous improvement. Con-tinuous improvement and achieving the corporate goal ofbecoming the vision system supplier of choice is attainedthrough teamwork. Building the vision, enrolling and em-powering the work force, and managing learning are allresponsibilities of leadership.

Kaiser Electronics’ leadership follows the DVF>R model.Where D = dissatisfaction with the current state, V = thevision or preferred future state, F = the first steps to get tothe vision, and R = the resistance to change. This model ispart of a process for implementing large-scale, rapid orga-nizational change adapted by Kaiser from DannemillerTyson Associates. The magnitude of the difference be-tween V and D is the energy level. It must be greater than R,in order to result in change. F represents the direction of thechange. The large-scale change process has been success-fully used by companies such as Ford Motor Company,United Airlines, and Marriott Corporation to implementrapid organizational change. It employs techniques such asthe Open Forum process which enable big groups to processlarge amounts of information in a short period of time.Various communication techniques are utilized to build acommon database of information and understanding amongall participants, to gain buy-in and alignment, to build anddevelop teams rapidly, and to obtain organizational com-mitment. Powerful tools like these are transforming the wayKaiser Electronics communicates and operates as an orga-nization.

Kaiser Electronics’ approach to organizational changehas been to understand and practice the functions of leader-ship in vision creation, vision alignment, people empower-ment, and management of the learning process. This iscombined with understanding and practicing the funda-mentals of teamwork to achieve common and constantpurpose, optimize team goals, resolve conflict in positive

ways, and have the ability to work in concert. The key tosuccess in implementing this approach has been in under-standing and applying the DVF>R model and large scaleorganizational change process.

Leadership and teamwork are deployed through a majoroff-site meeting once a year, and reinforced by leadershipand team building sessions every six to eight weeks. Topicsat these sessions are company-wide issues that requireleadership and teamwork. Open forums provide the formatfor these meetings. Elements of the open forum process arealso utilized for the team birthing process and team re-unions. Team birthing meetings develop team charters,missions, visions, and goals. Team reunions are used forchecking progress and celebrating achievements. Otherdeployment tools include team sponsors, leader and facili-tator training, and a team self-facilitation checklist. Ad-vanced team building techniques are used by all teams atKaiser Electronics including process improvement teams,product improvement teams, and integrated product devel-opment teams.

The leadership and teamwork approach in use at KaiserElectronics is replacing the traditional micro-managementapproach to controlling people and things. It challenges thestatus quo to be more effective through empowerment, trustand trustworthiness, and shared goals and objectives. As aresult, the characteristics of leadership and teamwork arebecoming more evident throughout the company. The num-ber of self-facilitating teams is increasing. Recent em-ployee surveys show that more than 75% of the employeesindicated a very high confidence level in the leadership andteamwork approach.

Procurement Credit Card Program

To address procurement administration costs which typi-cally exceed the cost of the material being purchased,Kaiser Electronics initiated a Procurement Credit Card pilotprogram in January 1994. Kaiser Electronics purchasesapproximately $10M worth of non-production type mate-rial per year requiring more than 1700 purchase orders to beprocessed. Of these purchase orders, 73% account for only4% of the total value of the material purchased, and pur-chase order transactions are typically less than $1000.

Previously, a purchase order was generated for eachtransaction regardless of material and transaction cost.Flow mapping and analysis by Kaiser Electronics targetedopportunities in this area for cost reduction and cycle timeimprovement. The program has established a procure-ment card system that provides safeguards stipulated byKaiser Electronics without compromising or circumvent-ing current company policies. The limited liability of theprocurement card rests with Kaiser Electronics, not with

individually assigned accounts. The system scans eachtransaction at the point of purchase for authorized merchantcodes and spending limits. If an unauthorized item ispurchased, it is traceable to the individual. A procurementcard procedure manual provides cardholders guidance onthe use of the card. Sample checks are designed to ensure norules are violated. Currently there are 11 cardholders in thepilot program, with an additional 50-75 people identified aspossible candidates for the program.

Key to the program’s success include a total buy-in by theGeneral Accounting Department and the Purchasing De-partment; the adoption of a card system that fits existingprocurement practices, policies, and procedures; and re-stricting the authorization of cards. Tracking data has al-ready indicated a wide acceptance of the program by thecardholders, the Purchasing Department, and the GeneralAccounting Department. Benefits include simplification ofthe procurement process, reduced purchase orders, allow-ance for the Purchasing Department to focus on higher costprocurements, reduced incoming/receiving activities, andreduced cycle times to order and receive material.

QUALITY ASSURANCE

Continuous Improvement Process

Kaiser Electronics fosters a corporate culture to integratefundamentally sound and innovative continuous improve-ment programs in all aspects of business. Fundamental tothis program are the corporate six key processes, ProcessImprovement Councils, 50-2-5 Improvement Objectives,and the use of story boards.

In February 1992, driven by the Department of Defensedownsizing and increased competition, Kaiser Electronicsreaddressed its continuous improvement activities whichbecame an integral part of the Kaiser Electronics businessstrategic plan. It was thoroughly linked with marketing,technology, and manufacturing capability plans. The com-pany changed from a quality improvement focus to a con-

tinuous improvement focus, and developed a program forbecoming a world-class supplier for vision systems. Thecontinuous improvement guiding principles included a totalcompany commitment to continuously improve its businesspractices and processes, placing a high priority on customersatisfaction, development of its employees, and involvementof its suppliers in continuous improvement activities.

Unique to Kaiser Electronics are innovative practices thatcomplement the fundamental approach to continuous im-provement. Where most companies commit to continuousimprovement in very specific parts of their businesses,Kaiser Electronics aggressively pursues continuous im-provement in six key processes – business development,engineering design, procurement, production, programmanagement, and employee development. Process Im-provement Councils are established for each of the keyprocesses. While the functional personnel follow the estab-lished processes, the Councils look at improving the pro-cesses. An especially innovative example of this effort is itsstretch goal of 50-2-5 improvement throughout all keyprocesses. This translates into a 50 times improvement indefects per unit, with a twofold improvement in the overallprocess cycle time and a fivefold improvement in subpro-cess cycle time, all within a five year period.

And finally, effective continuous improvement programsare characterized at Kaiser Electronics by good metrics andimprovement indicators, all of which are presented on storyboards for each of the six key processes. These wall displaysdepict the process flow, responsible Council members,improvements, and performance metrics. The story boardsare updated periodically to show progress of continuousimprovement efforts and are available for review by anyoneat any time.

Performance indicators show the rate of improvement atKaiser Electronics to be excellent. Process cycle times havebeen continually shrinking, manufacturing defects per unitlevels have been reduced by 70% and the company hasachieved a 100% on-time delivery and quality rating for 18straight months from its major customer.

12

S E C T I O N 3

INFORMATION

13

3.1 DESIGN

DESIGN PROCESS

Concurrent Engineering

Kaiser Electronics has taken a first step in implementinga fully developed concurrent engineering program throughits establishment of integrated product development teams.Kaiser believes that these represent a critical element in thesystematic approach to the integrated, concurrent productdesign and its related processes.

The integrated product development teams are com-prised of personnel from all functional departments includ-ing system engineering, detailed design, manufacturing,testing, software engineering, reliability and maintainabil-ity engineering, and quality. In addition, the customer andmajor subcontractors provide team members. A member ofKaiser Electronics top management outside the direct linemanagement structure is designated as an executive spon-sor to help alleviate or address any company-level obstruc-tion to team success, and a program manager is specified tohelp the team obtain resources.

Kaiser Electronics recognizes that a change in culture isnecessary to promote improvement over adherence to thestatus quo. Therefore, team training is provided in effectiveteaming, development processes, techniques and tools. Theteam and design tools are also collocated if possible. Thereis a clear understanding and documentation of thedevelopment process by the team including functions,responsibilities, expected inputs, processes, and outputs ofeach phase.

Major design decisions are accomplished through teamconsensus using structured decision making rules with ateam leader helping to focus the team’s efforts. The groupprovides data to each functional group such as detaileddesign, test, and production as early as possible. This teamis maintained throughout product development as much aspossible, and transition meetings are conducted at definedpoints to ensure team continuity.

Kaiser Electronics maintains a long term goal of approxi-mately a fifty percent savings in time from contract awardto delivery of the first contractual unit with higher quality.Current demonstrated gains include an approximately twentypercent reduction in system engineering time.

3.2 PRODUCTION

MANUFACTURING PLAN

Sequence of Events

Kaiser Electronics breaks the manufacturing of a productinto a sequence of events. These events can then be dividedinto operations which can be completed within a specifiedtime period (TAKT time).

When the events have been listed in sequence, they canthen be integrated into operations. The total number ofoperations is equal to the total event time divided by theTAKT time, defined as the effective labor hours per daydivided by the design capacity. The events are then addedtogether to form operations, which are less than or equal tothe TAKT time. This distribution of events keeps the flowof work through the line predictable. If events are added, itmay be possible to add them to an existing operation;however, if the operation now exceeds the TAKT time, itbecomes necessary to balance the line by redefining theoperations from the sequence of events.

Generating a sequence of events offers several benefits.Once the tasks are listed, it is easy to identify non-value addedsteps. Because of military contract obligations, Kaiser de-fines all tasks required by contract to be value-added. Non-value added steps include storing, moving, and unnecessaryinspection steps. The sequence of events also allows re-sources to be identified with tasks to help allocate resourcesfor a given manufacturing line. Quality checks can be easilyassociated with manufacturing steps so that rework andunnecessary inspections are reduced or eliminated.

By breaking a manufacturing process into a series ofevents, Kaiser Electronics identifies key steps, recognizesand reduces non-value added steps, and organizes eventsinto operations of suitable length.

DEFECT CONTROL

Statistical Measures of Work Performance

Kaiser Electronics’ use of statistical tools provides avisible method for identifying and tracking manufacturingdefects and work group performance. The program wasstarted in response to internal continuous improvement

14

initiatives as well as customer requirements for the use ofSPC. The initial focus was manufacturing processes, ofwhich the majority have shown a decrease in defects perunit. It has been expanded to cover non-manufacturingfunctions throughout the company.

Individual teams at Kaiser Electronics are the key to theprogram. These teams chart their work processes, identifymeasures of successful work performance, and track im-provement using process improvement road maps whichintegrates SPC. Problems are entered into a root causecorrective action system. Since team members are integralto determining the root cause and correcting the problem,they develop a sense of ownership for their work processes.

To ensure effective use of statistical tools, SPC traininghas been provided to 260 Kaiser Electronics employees(including 90% of floor level personnel). In addition, 40employees (primarily manufacturing and quality engineers)received advanced training. An SPC coordinator and steer-ing committee were established to guide the developmentand implementation of the program.

The results of each team’s efforts are posted throughoutthe factory and provide visibility to the team and manage-ment. This effort is used to demonstrate progress towards

Kaiser Electronics’ goal of a fifty-fold reduction in defectsper unit within five years.

PRODUCTION FABRICATION

Operation Method Sheets

To convey proper assembly instructions to themanufacturing floor, Manufacturing Engineering typicallyproduces manufacturing instructions. These complexinstructions must be conveyed without being misinterpreted.Kaiser Electronics has implemented a graphical OperationMethod Sheet (Figure 3-1) to help avoid misinterpretation.

The Operation Method Sheet, which is a tool developedin the Demand Flow™ Technology process, uses icons togenerate a Pictorial Work Instruction that duplicates theprocess’ sequence of events without words and emphasizesquality control points in color. Kaiser Electronics uses astandard icon set to build the sheets, and the cell teamoperators produce and maintain the instructions.

Defects from misinterpretation of the manufacturinginstructions have been decreased due to improved operatorcomprehension and compliance. The Operation Method

FIGURE 3-1. OPERATION METHOD SHEET

+ +MFG 87 NO TIP .080 BEAD OF ACS 429 UNDER I.C. CENTER

PDAS, LEADS TO BE FREE OF ACS 429.

KAISER ELECTRONICS San Jose, California

ASSEMBLY # OPERATION – – REF ENG# SEQUENCE 169080-91D –

REVISION: 1

DATE:7/26/94

TQC

WORK CONTENT

VERIFY

FIND #

1

2 3

4

PART # 5962-877 4201EX

7802002EX

7802301EX

H8000060 -001D

– – – – – – – – – –

QTY –

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2

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BIN #– – – – ––

ID

P1

U16U25

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–– – – – – – – – – –

15

Sheets are also useful as training aids and are used by theoperators during cross-training.

3.3 FACILITIES

FACTORY IMPROVEMENTS

Line Design

Kaiser Electronics designs its manufacturing lines basedon direct resources - personnel and equipment. The re-sources that work on a given line are based on the maximumdesign capacity in units per week, the labor hours andmachine hours for a given sequence of events, the effectivetime per shift, and the number of shifts per day. Themanufacturing lines at Kaiser Electronics are based on aDF™T system. The line consists of multiple stations whichcan be utilized by a number of operators with various skilllevels. The number of personnel in the line varies based oncurrent demand, and the entire line can be operated by a fewwell-trained and versatile operators.

These lines are capable of producing multiple types ofproducts using the same stations and operators. This flex-ibility allows similar products to be produced within asingle manufacturing cell. To further reduce the number ofmanufacturing lines, many subassemblies are integratedinto the main line. This also reduces the amount of paper-work associated with those subassemblies.

By designing a manufacturing line based on directresources and maximum product demand, Kaiser Electronicshas developed a line which can operate efficiently at variousproduction levels and can produce a variety of products.Operators can be added to or taken away from the line basedon demand and as skill levels increase, personnel can becross-trained between stations within the line. This increasedflexibility helps to ensure that the distribution of personnelwithin the facility leads to optimum production.

3.4 MANAGEMENT

MANUFACTURING STRATEGY

Company Goals and Objectives

Kaiser Electronics uses an innovative approach to estab-lish and disseminate company goals throughout the organi-zation and across functional lines. This approach is utilizedto ensure that all employees work toward common com-pany goals and objectives.

Kaiser Electronics adopted the House of Quality (HOQ)matrix format from Quality Function Deployment as thetool to capture and convey company strategic information.

Prior to HOQ, individual functional departments set indi-vidual goals without the benefit of a formal umbrellaprocess at the company level. As the functional departmentsworked to optimize internal objectives, the company pos-ture was often subjugated to scarce company resources.

Kaiser Electronics now uses the HOQ technique to matchthe goals and objectives derived from strategic planningsessions to the expected outcomes for each objective andthe functional departments responsible for their implemen-tation. This effort begins at the executive level and usingsuccessive HOQs and tree diagrams, is applied to helpdevelop objectives for to each subsequent organizationallevel until they are specified for each employee.

This process emphasizes cross-functional teamwork toestablish and realize all company and organizational levelgoals. Kaiser Electronics recognizes that one single depart-ment cannot achieve success without other departments’contributions. Communications and support between de-partments are improved with enhanced awareness of com-pany goals.

Kaiser Electronics acknowledges that in its lessons learned,care must be taken to not include too much detail inestablishing overall company goals and objectives. Asthese objectives are dispersed to other organizational levelsand across functional lines, the number of supporting objec-tives grows accordingly. Only unique and critical objec-tives which directly support the company goals should beincluded. Routine objectives that support the normal courseof business should be excluded.

Company Policy Manual

Kaiser Electronics is overhauling the cumbersome processof generating, maintaining, and controlling policy andprocedure manuals to a more usable, accessible, and efficientautomated documentation system. Current manualsdocument a combination of company-wide policies anddetailed procedures unique to each department. Maintenanceof these manuals has been cumbersome and expensive.

On reviewing its policy and operating procedure docu-mentation practices, Kaiser Electronics determined thatthese documents could be arranged easily into three man-ageable categories allowing for standardization of the gen-eration, maintenance, and control for each category. Cat-egories include company policies, functional operations,and desktop instructions. The Company Policy manual pro-vides guidelines for the management of company businessand is limited to two pages with optional graphics/flowcharts. The Functional Department Operating manual con-tains specific practices unique to each department. TheDesktop Instruction manual contains “how to” proceduresand flow charts.

The Company Policy continues to be streamlined. Todate, eleven documents have been purged from the oldsystem, and updated, placed in standard format, assigned tothe new numbering system, and categorized in the Com-pany Policy Manual. The old policy and procedure systemwill be maintained until the new documentation system iscomplete. The new company policies are currently acces-sible through the electronic information system network.After completion of the new system, it will be placed on-linefor easier retrieval, maintenance, and control.

PERSONNEL REQUIREMENTS

Training

The Kaiser Electronics Training Program has establishedformal policies and procedures which guide its trainingprogram and replace the previous ad hoc approach.

An integral part of Kaiser Electronics’ mission is main-taining a knowledgeable, skillful, and successful workforce in a legal, fair and ethical way. To accomplish this, thecompany had to provide training to maximize current andfuture job performance, provide skills for improved perfor-mance, and increase organizational efficiency and effec-tiveness. Past practices for acquiring training have beenadministered on an ad hoc basis.

The current budget allows each employee an average of2.5% of his time for training. To maximize an employee’straining allowance in the most efficient and effective way,Kaiser Electronics established training program policies

and procedures to guide training efforts. Policies and proce-dures define areas of responsibility for functional, cross-functional, and company-wide training activities.

Functional training is conducted within an ExecutiveDirector’s purview. The knowledge and skills impartedthrough training is specific to the departments within thatdirectorate. Cross-functional training is conducted acrossthe departments of two or more Executive Directorates.Cross-functional training is primarily relevant to those func-tional departments and may be tailored to the needs of thespecific audiences within the functions. Company-widetraining is conducted for all functional departments and iscommon across all functional lines. Courses are designed toaccommodate a wide range of job categories and skill levels.

The Executive Directorates have responsibility for bud-geting all labor and non-labor training costs and coordinat-ing all functional training and are jointly responsible withHuman Resources for all cross-functional training. TheHuman Resources department has responsibility for bud-geting and coordinating all company-wide training. TheTraining Program policies and procedures further definethe training process flow, course catalog, schedules, enroll-ment, course evaluation, participant’s performance, coursecost, and training accomplishments.

The implementation of these well defined policies andprocedures has brought the administration of training undercontrol. The Human Resources department has established adatabase to assist in budgeting and coordination responsibili-ties and to retrieve traceability data. Plans are underway tointegrate individual career paths with the training calendar.

16

A-1

A P P E N D I X A

TABLE OF ACRONYMS

Acronym Definition

CAD Computer Aided ManufacturingCCI Council for Continuous Improvement

DF™T Demand Flow Technology

HOQ House of Quality

PM Preventative Maintenance

NVS Night Vision System

RCPS Root Cause Problem Solving

SLE Stereolithography

A P P E N D I X B

BMP SURVEY TEAM

Team Member Agency Function

Larry Robertson Crane Division Team Chairman(812) 854-5336 Naval Surface Warfare Center

Crane, IN

Adrienne Gould Office of Naval Research Technical Writer(703) 696-8485 Arlington, VA

PRODUCTION TEAM

Rick James Electronic Manufacturing Team Leader(317) 226-5619 Productivity Facility

Indianapolis, IN

John Greaves Electronics Manufacturing(317) 226-5665 Productivity Facility

Indianapolis, IN

Greg Johnson Naval Warfare Assessment Division(909) 273-4964 Corona, CA

MANAGEMENT TEAM

Rick Purcell BMP Representative Team Leader(703) 271-9055 Washington, DC

Larry Halbig Naval Air Warfare Center(317) 353-3838 Aircraft Division

Indianapolis, IN

Victor Barnes Naval Warfare Assessment Center(909) 273-4971 Corona, CA

B-1

The Program Manager's Workstation (PMWS) is a seriesof expert systems that provides the user with knowledge,insight, and experience on how to manage a program, addresstechnical risk management, and find solutions that industryleaders are using to reduce technical risk and improve qualityand productivity. This system is divided into four maincomponents; KNOW-HOW, Technical Risk Identificationand Mitigation System (TRIMS), BMP Database, and BestManufacturing Practices Network (BMPNET).

• KNOW-HOW is an intelligent,automated method that turns“Handbooks” into expert systems,or digitized text. It provides rapidaccess to information in existinghandbooks including AcquisitionStreamlining, Non-DevelopmentItems, Value Engineering, NAVSOP-6071 (Best Practices Manual),MIL- STD-2167/2768, SecNav5000.2A and the DoD 5000 seriesdocuments.

• TRIMS is based on DoD 4245.7-M (the transitiontemplates), NAVSO P-6071 and DoD 5000 eventoriented acquisition. It identifies and ranks the highrisk areas in a program. TRIMS conducts a full rangeof risk assessments throughout the acquisition processso corrective action can be initiated before risks de-velop into problems. It also tracks key project docu-mentation from concept through production includinggoals, responsible personnel, and next action dates forfuture activities in the development and acquisitionprocess.

• The BMP Database draws information from industry,government, and the academic communities to in-clude documented and proven best practices in design,test, production, facilities, management, and logistics.

Each practice in the database has been observed andverified by a team of experienced government engi-neers. All information gathered from BMP surveys isincluded in the BMP Database, including this surveyreport.

• BMPNET provides communication between allPMWS users. Features include downloading of allprograms, E-mail, file transfer, help “lines”, Special

Interest Groups (SIGs), electronicconference rooms and much more.Through BMPNET, IBM or com-patible PC's and Macintosh com-puters can run all PMWS programs.

• To access BMPNET efficiently,users need a special modem pro-gram. This program can be ob-tained by calling the BMPNET us-ing a VT-100/200 terminal emula-tor set to 8,N,1. Dial (703) 538-7697 for 2400 baud modems and(703) 538-7267 for 9600 baud and

14.4 kb. When asked for a user profile, type: DOWNPCor DOWNMAC <return> as appropriate. This will auto-matically start the Download of our special modemprogram. You can then call back using this program andaccess all BMPNET functions. The General User ac-count is:

USER PROFILE: BMPNET

USER I.D.: BMP

Password: BMPNET

If you desire your own personal account (so that you mayreceive E-Mail), just E-Mail a request to either ErnieRenner (BMP Director) or Brian Willoughby (CSC Pro-gram Manager). If you encounter problems please call(703) 538-7799.

C-1

A P P E N D I X C

PROGRAM MANAGER’S WORKSTATION

Automated Manufacturing Research Facility(301) 975-3414

The Automated Manufacturing Research Facility (AMRF) –a National Center of Excellence – is a research test bed at theNational Institute of Standards and Technology located inGaithersburg, Maryland. The AMRF produces technicalresults and transfers them to the Navy and industry to solveproblems of automated manufacturing. The AMRF supportsthe technical work required for developing industry standardsfor automated manufacturing. It is a common ground whereindustry, academia, and government work together to addresspressing national needs for increased quality, greater flexibil-ity, reduced costs, and shorter manufacturing cycle times.These needs drive the adoption of new computer-integratedmanufacturing technology in both civilian and defense sec-tors. The AMRF is meeting the challenge of integrating thesetechnologies into practical, working manufacturing systems.

Electronics Manufacturing Productivity Facility(317) 226-5607

Located in Indianapolis, Indiana, the Electronics Manufac-turing Productivity Facility (EMPF) is a National Center ofExcellence established to advance state-of-the-art electronicsand to increase productivity in electronics manufacturing.The EMPF works with industry, academia, and governmentto identify, develop, transfer, and implement innovative elec-tronics manufacturing technologies, processes, and practices.The EMPF conducts applied research, development, andproof-of-concept electronics manufacturing and design tech-nologies, processes, and practices. It also seeks to improveeducation and training curricula, instruction, and necessarydelivery methods. In addition, the EMPF is striving toidentify, implement, and promote new electronics manufac-turing technologies, processes, materials, and practices thatwill eliminate or reduce damage to the environment.

National Center for Excellence in MetalworkingTechnology(814) 269-2420

The National Center for Excellence in MetalworkingTechnology (NCEMT) is located in Johnstown, Pennsyl-vania and is operated by Concurrent Technologies Corpo-ration (CTC), a subsidiary of the University of PittsburghTrust. In support of the NCEMT mission, CTC’s primaryfocus includes working with government and industry todevelop improved manufacturing technologies includingadvanced methods, materials, and processes, and transfer-

ring those technologies into industrial applications. CTCmaintains capabilities in discrete part design, computer-ized process analysis and modeling, environmentally com-pliant manufacturing processes, and the application ofadvanced information science technologies to product andprocess integration.

Center of Excellence for Composites ManufacturingTechnology(414) 947-8900

The Center of Excellence for Composites ManufacturingTechnology (CECMT), a national resource, is located inKenosha, Wisconsin. Established as a cooperative effortbetween government and industry to develop and dis-seminate this technology, CECMT ensures that robustprocesses and products using new composites are avail-able to manufacturers. CECMT is operated by the GreatLakes Composites Consortium. It represents a collabora-tive approach to provide effective advanced compositestechnology that can be introduced into industrial pro-cesses in a timely manner. Fostering manufacturingcapabilities for composites manufacturing will enable theU.S. to achieve worldwide prominence in this criticaltechnology.

Navy Joining Center(614) 486-9423

The Navy Joining Center (NJC) is a Center of Excellenceestablished to provide a national resource for the develop-ment of materials joining expertise, deployment of emerg-ing manufacturing technologies, and dissemination of in-formation to Navy contractors, subcontractors, Navy ac-tivities, and U.S. industry.

The NJC is located in Columbus, Ohio, and is operated byEdison Welding Institute (EWI), the nation’s largest indus-trial consortium dedicated to materials joining. The NJCcombines these resources with an assortment of facilitiesand demonstrated capabilities from a team of industrial andacademic partners. NJC technical activities are divided intothree categories - Technology Development, TechnologyDeployment, and Technology Transfer. Technology De-velopment maintains a goal to complete development quicklyto initiate deployment activities in a timely manner. Tech-nology Deployment includes projects for rapid deploymentteaming and commercialization of specific technologies.The Technology Transfer department works to disseminatepertinent information on past and current joining technolo-gies both at and above the shop floor.

D-1

A P P E N D I X D

NAVY CENTERS OF EXCELLENCE

Since 1985, the BMP Program has applied the templatesphilosophy with well-documented benefits. Aside from thevalue of the templates, the templates methodology hasproven successful in presenting and organizing technicalinformation. Therefore, the BMP program is continuingthis existing “knowledge” base by developing 17 newtemplates that complement the existing DoD 4245.7-M orTransition from Design to Production templates.

The development of these new templates was based inpart on Defense Science Board studies that have identifiednew technologies and processes that have proven success-ful in the last few years. Increased benefits could be realizedif these activities were made subsets of the existing, com-patible templates.

Also, the BMP Survey teams have become experiencedin classifying Best Practices and in technology transfer.

The Survey team members, experts in each of theirindividual fields, determined that data collected, whilerelated to one or more template areas, was not entirelyapplicable. Therefore, if additional categories were avail-able for Best Practices “mapping,” technology transferwould be enhanced.

Finally, users of the Technical Risk Identification andMitigation System (TRIMS) found that the program per-formed extremely well in tracking most key program docu-mentation. However, additional categories – or templates– would allow the system to track all key documentation.

Based on the above identified areas, a core group ofactivities was identified and added to the “templates base-line.” In addition, TRIMS was modified to allow individualusers to add an unlimited number of user-specific catego-ries, templates, and knowledge-based questions.

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A P P E N D I X E

NEW BEST MANUFACTURING PRACTICES PROGRAM TEMPLATES

BMP surveys have been conducted at the companies listed below. Copies of older survey reports may be obtained throughDTIC or by accessing the BMPNET. Requests for copies of recent survey reports or inquiries regarding the BMPNET maybe directed to:

Best Manufacturing Practices Program4321 Hartwick Rd.

Suite 308College Park, MD 20740

Attn: Mr. Ernie Renner, DirectorTelephone: 1-800-789-4267

FAX: (301) 403-8180

COMPANIES SURVEYED

Litton Honeywell, IncorporatedGuidance & Control Systems Division Undersea Systems DivisionWoodland Hills, CA (Alliant Tech Systems, Inc.)October 1985 and February 1991 Hopkins, MN

January 1986

Texas Instruments General DynamicsDefense Systems & Electronics Group Pomona DivisionLewisville, TX Pomona, CAMay 1986 and November 1991 August 1986

Harris Corporation IBM CorporationGovernment Support Systems Division Federal Systems DivisionSyosset, NY Owego, NYSeptember 1986 October 1986

Control Data Corporation Hughes Aircraft CompanyGovernment Systems Division Radar Systems Group(Computing Devices International) Los Angeles, CAMinneapolis, MN January 1987December 1986 and October 1992

ITT Rockwell International CorporationAvionics Division Collins Defense CommunicationsClifton, NJ Cedar Rapids, IASeptember 1987 October 1987

UNISYS MotorolaComputer Systems Division Government Electronics Group(Paramax) Scottsdale, AZSt. Paul, MN March 1988November 1987

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A P P E N D I X F

COMPLETED SURVEYS

General Dynamics Texas InstrumentsFort Worth Division Defense Systems & Electronics GroupFort Worth, TX Dallas, TXMay 1988 June 1988

Hughes Aircraft Company Bell HelicopterMissile Systems Group Textron, Inc.Tucson, AZ Fort Worth, TXAugust 1988 October 1988

Litton GTEData Systems Division C3 Systems SectorVan Nuys, CA Needham Heights, MAOctober 1988 November 1988

McDonnell-Douglas Corporation Northrop CorporationMcDonnell Aircraft Company Aircraft DivisionSt. Louis, MO Hawthorne, CAJanuary 1989 March 1989

Litton LittonApplied Technology Division Amecom DivisionSan Jose, CA College Park, MDApril 1989 June 1989

Standard Industries Engineered Circuit Research, IncorporatedLaMirada, CA Milpitas, CAJune 1989 July 1989

Teledyne Industries Incorporated Lockheed Aeronautical Systems CompanyElectronics Division Marietta, GANewbury Park, CA August 1989July 1989

Lockheed Corporation WestinghouseMissile Systems Division Electronic Systems GroupSunnyvale, CA Baltimore, MDAugust 1989 September 1989

General Electric Rockwell International CorporationNaval & Drive Turbine Systems Autonetics Electronics SystemsFitchburg, MA Anaheim, CAOctober 1989 November 1989

TRICOR Systems, Incorporated Hughes Aircraft CompanyElgin, IL Ground Systems GroupNovember 1989 Fullerton, CA

January 1990

TRW MechTronics of Arizona, Inc.Military Electronics and Avionics Division Phoenix, AZSan Diego, CA April 1990March 1990

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Boeing Aerospace & Electronics Technology Matrix ConsortiumCorinth, TX Traverse City, MIMay 1990 August 1990

Textron Lycoming Norden Systems, Inc.Stratford, CT Norwalk, CTNovember 1990 May 1991

Naval Avionics Center United Electric ControlsIndianapolis, IN Watertown, MAJune 1991 June 1991

Kurt Manufacturing Co. MagneTek Defense SystemsMinneapolis, MN Anaheim, CAJuly 1991 August 1991

Raytheon Missile Systems Division AT&T Federal Systems AdvancedAndover, MA Technologies and AT&T Bell LaboratoriesAugust 1991 Greensboro, NC and Whippany, NJ

September 1991

Tandem Computers Charleston Naval ShipyardCupertino, CA Charleston, SCJanuary 1992 April 1992

Conax Florida Corporation Texas InstrumentsSt. Petersburg, FL Semiconductor GroupMay 1992 Military Products

Midland, TXJune 1992

Hewlett-Packard Watervliet U.S. Army ArsenalPalo Alto Fabrication Center Watervliet, NYPalo Alto, CA July 1992June 1992

Digital Equipment Company Naval Aviation DepotEnclosures Business Naval Air StationWestfield, MA and Pensacola, FLMaynard, MA November 1992August 1992

NASA Marshall Space Flight Center Naval Aviation DepotHuntsville, AL Naval Air StationJanuary 1993 Jacksonville, FL

March 1993

Department of Energy- McDonnell Douglas AerospaceOak Ridge Facilities Huntington Beach, CAOperated by Martin Marietta Energy Systems, Inc. April 1993Oak Ridge, TNMarch 1993

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Crane Division Philadelphia Naval ShipyardNaval Surface Warefare Center Philadelphia, PACrane, IN and Louisville, KY June 1993May 1993

R. J. Reynolds Tobacco Company Crystal Gateway Marriott HotelWinston-Salem, NC Arlington, VAJuly 1993 August 1993

Hamilton Standard Alpha Industries, IncElectronic Manufacturing Facility Methuen, MAFarmington, CT November 1993October 1993

Harris Semiconductor United Defense, L.P.Melbourne, FL Ground Systems DivisionJanuary 1994 San Jose, CA

March 1994

Naval Undersea Warfare Center Mason & HangerDivision Keyport Silas Mason Co., Inc.Keyport, WA Middletown, IAMay 1994 July 1994

Kaiser ElectronicsSan Jose, CAJuly 1994