Fed Ex cover page - lean.org Crull Manager, Lean Operations FedEx Express Larry Crull is a manager...

Whether or not a lean effort flies depends on the people who participate in it and believe in its success. So FedEx Express invested a lot in training right at the start of a lean effort at its repair and maintenance facility at Los Angeles International Airport. The facility performs both routine maintenance and safety checks as well as unscheduled repairs, both major and minor.

"We believe that, ultimately, everybody should get to be a change agent," said Phillip Coley. "It's a major cultural change, to get people to do things because they want to do them," he says. So, besides the training, he reserves a lot of his time to motivating employees and finding ways to bolster their commitment to the lean conversion. He's even found a way to teach "balancing the workload" by taking groups of people bowling.

The effort is working. With the help of ideas from employees, a major check that used to take 32,715 man‐hours was cut to 21,535 hours in six months. That translated into a $2 million savings, which supported the company's attempts to cut costs during the recession.

You'll learn:

• How service and leadership are practiced and taught in order to affect mindsets and behaviors • How visual tools and a recognition program are used to motivate people • What training is used to create a culture of involvement • How the suggestion system turns around ideas quickly

Plenary Session: Wednesday, March 3, 9:15‐10:00 AM

Breakout Session: Wednesday, March 3, 10:30 AM ‐12:00 PM

Phil Coley Managing Director, West Region, Aircraft Maintenance FedEx Express Phillip Coley is managing director, West Region, Aircraft Maintenance, at FedEx Express. He started with FedEx as a courier right out of high school, ultimately becoming an aircraft mechanic. He began his management experience at Piedmont Airlines, serving as a supervisor, maintenance controller, base manager, hub manager, and director of line maintenance. At Tradewinds Airlines, a wide body and narrow body, domestic cargo and passenger charter carrier, Coley served as general manager and as senior vice president of operations. Prior to rejoining FedEx, Coley was regional manager and then managing director at United Airlines with responsibilities for maintenance and flight testing. He has also served as a transformation and improvement consultant for airlines, states, airports, and municipalities. Coley holds certification as a Lean Sensei Executive as well as being Tier 2 Lean/CI trained at United. He has 32 years experience as a multi-engine rated pilot.

Larry CrullManager, Lean Operations FedEx Express

Larry Crull is a manager of lean operations development and education at FedEx Express, Air Operations Division. He has over 20 years experience in the aviation industry including four years helping maintenance, engineering, materiel, and supply chain organizations within FedEx Express develop sustainable lean cultures. Crull is responsible for developing facilitators, as well as maintaining the lean training, mentoring, and certification programs. He also provides lean leadership training for management and frontline workers in a division with more than 9,800 employees worldwide. He holds a FedEx lean master black belt and is a graduate of Spartan College of Aeronautics.

Jim GarrickPortfolio Consultant FedEx Services

Jim Garrick is a portfolio consultant for FedEx Services. He has been a Lean Thinker since 1990, earning experience with lean applications in manufacturing, supply chain, and marketing business projects. He has an undergraduate degree in manufacturing engineering and MBA from Tennessee Technological University. He is a member of the Society of Manufacturing Engineers, the Association for Manufacturing Excellence, and The Shingo Prize.

Lean Transformation SummitBreakout

Larry CrullJim Garrick

The Denny Hamlin Challenge

If you chose HIGH If you chose LOW

Car behind(person to your left) YOU

Car ahead(person to your Right) Score

Car behind(person to your left) YOU

Car ahead(person to your Right) Score

High High High 4 High Low High 7

High High Low 1 High Low Low 4

Page 2March 3, 2010LEI Transformation SummitBreakout

Low High High 1 Low Low High 4

Low High Low -2 Low Low Low 0

The Denny Hamlin Challenge

Who is the winner?


Organizational Alignment

How do we win as a team without alignment?

What is THE goal?

How do WE get there?

Does everyone in the organization understand the goal?


Choices

How many choices are required

Leaders are required to make choices

How many choices are required for you to succeed?– Yours and those of others in your

value stream

How do we help managers make good choices?


good choices?– Managers Standard work

Team Work

Success as an organization requires leaders and workers to perform as a team focused on a common goal

March 3, 2010LEI Transformation SummitBreakout

Team Work

Team work means we share in our successes and failures

Teams perform post event debriefs to build on our successes and reduce duplicating errors in the future

March 3, 2010LEI Transformation SummitBreakout

Air Operations Division

Fleet Type777F

MD-11F

Max Payload(MORP)173,000

164,000

Count3

59

MD/DC-10F*/-30F

A300-600F

A310-200F/-300F

757-200F

113,000/141,000

86,000

62,000

46,000

58/18

71

34/17

16


38,00077353Trunk Total

Current Trunk Fleet Max Payload (MORP): 32.0M pounds

727-200F**

*All DC-10s converted to MD-10s by June 2010**All 727s to be retired no later than December 2015 (possible acceleration)

Air Operations Division


Keys to FedEx AOD Cultural change

Lean Management

systemOrganizational

alignment

Solving Problems and Improving

Processes

Education and Leadership

development

Customer focused


Quickly


• Connect MBO objectives and performance reviews to Lean implementation and pcultural change

• Track improvements and share best practices to leverage gains across the division

• Project aligned vs. functional


j gsilo aligned


Divisional alignment

Officers and directors meet biweekly in a Lean steering committee meeting to Lean steering committee meeting to discuss and prioritize improvement opportunities and training/development needs

Departmental alignment

Department leaders meet regularly with


their change agents and representatives from other departments to maintain alignment and identify opportunities at the station/facility

Standard Work for Leaders

Connect the rails!

Without leader standard work activities are open to interpretationto interpretation.– Leader daily/weekly

activities should be clear and documented.

– Front line managers/leaders should spend the majority of their time in Gemba so they can


ymonitor and improve the operation

Lean Management System

Implement an assessment program that incorporates self assessment and third party

“What gets measured gets done”

Total Productive Maintenance (TPM)

assessments to identify gaps and develop improvement plans

Assessments should be focused on improving the system and not measuring failures


(TPM)

Balanced Score Card


Make it Visual

Implement visual management in all areas so actual vs. expected performance can be seen by all and any needed corrective action can be implemented quicklyimplemented quickly


Make it Visual


Leadership Development

• Establish a training and mentoring program for all leaders, formal and informal

• Clearly communicate goals and objectives often and highlight successes

• Encourage self reflection and peer assessments

• Break down the perception that all service failures are a negative

fl ti th t


reflection on the management team

Leadership Development

Another key to our success was developing leaders within the workforce and implementing a certification program that recognizes and rewards employees for effecting change through participation in training, Lean implementation and demonstrating leadership abilities

Certified Lean leaders manage change at the front line, departmental and divisional levels

Lean Master Black Belt

Lean Black BeltLean Black Belt

Divisional Leaders

Departmental Leaders


Lean Green Belts

Lean Green Belts

Lean Green Belts

Lean Green Belts

Front Line Leaders

Leaders

Customer Focus

TrainClnASAFUELSAMTSAMTSAMTSAMTSAMTSAMTSAMTSAMTSAMT ICStaff Tool

Air Operation Division focuses on providing safe and reliable aircraft by aligning our processes to support our internal customer

the aircraft maintenance technician

MD

Sr MGR

MGRLn Mgr

MD

Sr MGR Sr MGR

Ln Mgr MGRMGR

LEAD LEADLEAD

MGR

Sr MGR

LEADLEAD

Ln MgrLn Mgr

LEAD LEADLEAD LEADLEADLEADLEAD LEAD

TrainClnASAFUELSAMTSAMTSAMTSAMTSAMTSAMTSAMTSAMTSAMT ICStaff Tool

Supp

ort Mgr

Sr Mgr

Non MXMD

Solutions


VP

Current State Future State

Celebrate And Motivate


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