RECOMMENDATIONS ON COACHING STRATEGIES
FOR IMPLEMENTING LEAN
Lt Col Steve Brown, USAF, Lt Col Scott Miller, USAF,
and LTC Kent Schvaneveldt, USA
The U.S. defense industry has more than a decade of experience implementing Lean process improvement methodologies to create value and eliminate waste in manufacturing and operations. While Lean implementation approaches differ, commercial companies and military commands consistently use highly skilled sensei, or coaches to help provide the discipline and structure needed to implement rapid and continuous change. This report documents key elements of coaching strategies from Lean implementations at 13 U.S. defense companies and military commands. The research indicates that differences in coaching strategies impact whether an organization will succeed in implementing Lean.

APPLYING THEORY OF CONSTRAINTS PRINCIPLES AND
LEAN THINKING AT THE MARINE CORPS MAINTENANCE CENTER
Mandyam Srinivasan, Darren Jones, and Alex Miller
The Maintenance Center for the Marine Corps Logistics Base, Albany, Georgia, launched a program in 2001 combining principles drawn from the Theory of Constraints and Lean thinking. The Center had been constantly plagued by apparent capacity shortages in virtually every department and additional manpower was being considered. An analysis using Theory of Constraints revealed that there was, in fact, more than adequate capacity to handle the workload. The perceived lack of capacity was due to policy constraints imposed on the Center as a result of a push scheduling mechanism. By implementing a pull system for scheduling repairs, the Center revealed capacity that had been masked. Today, the Center is ahead of, or on schedule, for 99 percent of the production lines where the Theory of Constraints principles have been implemented.

LEAN NOW—USING A RESEARCH COMMUNITY TO
UNDERSTAND CHANGE IN THE ACQUISITION ENTERPRISE
Eric Rebentisch, Ph.D. and Maj Ronald Jobo, USAF
Members of the Lean Aerospace Initiative (LAI) consortium have joined to pool experience and expertise to accelerate the adoption of Lean practices in military acquisition through an initiative called Lean Now. Lean Now has demonstrated that the concept of industry and government teaming for focused interventions can produce savings and accelerate change in the acquisition process. It also represents a systematic change method that lends itself to data collection and theory development. This paper outlines some of the findings to date, as well as implications for using such a model for research on the military acquisition system.

A PERSON-CENTERED APPROACH TO SUSTAINING A
LEAN ENVIRONMENT—JOB DESIGN FOR SELF-EFFICACY
David S. Veech
Toyota credits its team members for the success and sustenance of the Toyota Production System. The power of a highly skilled and motivated workforce is a significant competitive advantage for any company, in any industry. Toyota’s team members collectively make hundreds of thousands of improvements to their work every year, reducing costs, reducing cycle times, and improving working conditions. Drawing on old and new research, this paper poses a theoretical explanation for why employees get involved and stay involved in transformational activities in organizations. It will explore relationships between corporate belief systems, job and employee satisfaction, and individual self-efficacy and then offer a way for companies to apply all of these theoretical ideas through two practical tools.

THE LEAN ENTERPRISE—A MANAGEMENT
PHILOSOPHY AT LOCKHEED MARTIN
Michael Joyce and Bettina Schechter
In 1999, Lockheed Martin developed an approach called LM21, for Lockheed Martin in the 21st century, to identify best practices for increasing efficiency and improving financial and operating performance. Leaders soon realized that best practice sharing was just one means to a higher end. The ultimate goal is to create a system that consistently achieves excellence for our customers, shareholders, and employees. We selected and implemented the management philosophies called Lean and Six Sigma. This article describes the Lean Enterprise at Lockheed Martin and the steps taken to make it a reality.

T-38C TRANSITION TO LEAN
David D. Ott and James B. Davis
In 2000, the United States Air Force T-38 Avionics Upgrade System Program Office began to pursue Lean initiatives to reduce out-year program cost and delivery risk at the Boeing T-38C Upgrade facility located at Williams Gateway Airport facility in Mesa, Arizona. The T-38 Avionics Upgrade Program production system baseline plan was conventional for legacy aircraft upgrade and modification programs using a mass/craft assembly stationary dock approach. For a successful transition from conventional to Lean production, program management support is critical. The T-38 Program Office in St. Louis, Missouri pro- posed a four-phase approach to implementation. This approach and the benefits derived from the process are discussed.

RAYTHEON—NEW CHALLENGES, NEW SOLUTIONS,
AND DOCUMENTED RESULTS
Bob Blair and Jon McKenzie
Born from a multi-billion dollar debt and a driving commitment to customer success, Raytheon Six Sigma (R6™ has generated over $2 billion in financial benefits resulting from over 3,000 projects. The culture change is now part of the fabric of Raytheon, with over 21,000 specialists, 1,200 experts, and 50 master experts guiding 76,000 employees to customer success. R6™ is now an integral part of the business strategy and is successful because it focuses on achieving success for customers while delivering results for the company. Guarding against complacency, Raytheon leadership ensures that R6™ continues to evolve with the changing needs of the business. This paper highlights how R6™ was used to forge a culture of customer focus and productivity improvement that led to higher levels of financial stability and customer success.

TAMING THE AEROSPACE SUPPLY CHAIN—
A CASE STUDY IN ORGANIZATIONAL INTEGRATION
DeWayne Searcy, Ph.D., Bradley Greene, Ph.D. and James Reeve, Ph.D.
Integrating suppliers and customers to capture supply chain efficiencies and effectiveness is critical in today’s increasingly competitive environment. However, knowing this and doing it are two different matters. The methodology described here is an effective means to develop inter-organizational coordination. To achieve this coordination companies must first be made aware of the fundamental dynamics of supply chains. Awareness can disengage the individual personalities within different organizations and allow members of the supply chain to objectively view their value stream. Then, the individual organizations can define and measure the current state of their supply chain and finally agree to corrective actions that benefit the entire supply chain. Thus, our question is, how do firms that are traditionally isolated in their supply chain dealings introduce a greater degree of cooperation to their relationships? We will provide an answer to this question with a supply chain case study.

EVALUATING THE IMPACT OF ELECTRONIC BUSINESS SYSTEMS LESSONS LEARNED FROM THREE CASES AT THE DEFENSE LOGISTICS AGENCY
JONATHAN A. MORELL

This article synthesizes our experience evaluating three electronic business (eBusiness) systems in the Defense Logistics Agency. The focus was on actual impact in real life operational settings. We summarize our experience in terms of lessons learned and make a case that our experience can help others do similar evaluation. Lessons learned are grouped into six categories: metrics and data sources, methodology, program logic, adaptive systems, realistic expectations, and dependencies among the previous five.

HOW COMPENSATION IN TEST AND EVALUATION AFFECTS AIRCRAFT ACQUISITION
LT COL LIONEL D. ALFORD, USAF

Systems developers and testers have assumed that human compensation is measurable, or at least that a cognizant and trained tester is able to identify and detect compensation. More than one study conducted at the Wright-Patterson LAMARS facility indicates that this is not necessarily true. Test pilots were able to compensate sufficiently to fly and meet defined performance standards on intentionally crippled aircraft flight control designs. These flight control systems were designed to trigger pilot induced oscillations, but in most cases, test pilots could compensate sufficiently to prevent pilot induced oscillations and to control the simulated aircraft. Test pilot compensation hides critical handling qualities cliffs that can lead to loss of an aircraft when encountered by less skilled pilots. This observation has vast ramifications for test, evaluation, and development of all human interface systems.

A TEN-YEAR REVIEW OF THE VISION FOR TRANSFORMING THE DEFENSE ACQUISITION SYSTEM
Edward W. Rogers and COL Robert P. Birmingham, USA (Ret)
Wendy Molzahn

This paper traces the vision for reform of the Department of Defense (DoD) Acquisition System from 1993 through 2003. Using a qualitative document review process, a conceptual picture of overarching themes is presented. The purpose of this paper is to provide an analysis of the change roadmap to assist building empirical research models of the effectiveness of the various initiatives, programs restructurings, and policy mandates that have all contributed to the current climate for change within the DoD and the acquisition community.

AN INITIAL LOOK AT TECHNOLOGY AND INSTITUTIONS ON DEFENSE INDUSTRY CONSOLIDATION
Lt Col John D. Driessnack, USAF and Maj David R. King, USAF
Conventional wisdom holds that defense industry consolidation resulted from decreased defense spending. However, we maintain that understanding dynamic changes in key defense institutions helps provide a more complete explanation for observed consolidation. Specifically, we examine the interaction of evolving technology and changing institutions. Institutions reviewed include procurement policies, the weapons requirements process, and procurement organizations. We take an initial look at the industry, and highlight how these changes influenced transaction costs in the defense industry, more fully explain the forces driving consolidation, and provide greater insight to policy-makers seeking to improve the performance of the defense industry. Further research is needed to build a robust institutional framework of the defense industry and the related government agencies to allow better policy prescriptions.

SURVEYING COST GROWTH
Capt Vince Sipple, USAF, Maj Edward "Tony" White, USAF, and Maj Michael Greiner, USAF

Cost growth that weapon systems incur throughout their acquisition life cycle concerns those who work in the acquisition environment. One way to reduce the amount of unexpected cost growth is to develop better cost estimates. In attaining better cost estimates though, it is often helpful to understand and account for potential cost drivers. Several cost studies, some of which specifically focus on the aircraft industry, have been performed documenting and investigating these growth factors. Overviews of these various cost growth studies are presented as other tools for the cost estimators and program managers.