Value Networks

 and the true nature of collaboration


   

Chapter 6: Selected Case Studies

The Boeing Company

 

 

The Boeing Company


System Dynamics, VNA, and designing a new way of doing business

At The Boeing Company, the approaching launch of a complex and revolutionary new product created a need to significantly expand daily airplane testing without a corresponding increase in resources. Using Value Network Analysis (VNA) in combination with system dynamics modeling and process engineering, the flight test team completely changed the business unit model and dramatically increased the number of tests that could be performed.

 

Dennis O'Donoghue, Vice president of Flight Operations Test and Evaluation (FOT&E) is responsible for regulatory certification for all Boeing products, worldwide. A global business division consolidation was undertaken in 2009, bringing together both Commercial and Defense sides of the business and integrating multiple testing sites around the world. The new configuration more than doubled the size of the test organization. To complicate things even further, Boeing will be conducting a record dozen certification programs at the same time, including the new 747-8, the P8-A Navy version of the 737, and other models and derivatives.

Dennis O'Donoghue and the FOTV operations center.

From Puget Sound Business Journal (2009) [1]

Starting in 2006 Dennis had begun an overhaul of the test organization with an innovative combination of principles and methods, despite push-back from old timers. The foundation is the same Lean principles used to streamline Boeing's production lines. In addition, O'Donoghue applied their next-generation Lean Plus approach using two whole-system modeling tools: system dynamics modeling and Value Network Analysis.

 

The reorganization began with system dynamics modeling to define the systemic structure that represents a resilient, robust, and efficient operation. With that as the guidance system, O'Donoghue's team took people through a deep dive into VNA.

 

An Integrated Roadmap served as an overarching guide for employees designing the new business model. In an interview with Boeing Frontiers [2] Les Music, Business Process Analyst said, "We were designing a new way of doing business, and once we understood our guiding concepts and role network, we applied Lean+ tools to define the business."

Les Music (right) discussing the Systems Dynamic Modeling chart with

Dan Compton (center) and Bob Wiebe.

From "Testing the Limits," Boeing Frontiers (2008).

Above, Business Process Analyst Les Music (right) discusses the Systems Dynamic Modeling chart - affectionately known as the "swirly chart" - with Dan Compton (center) and Bob Wiebe, senior operations analysts and SDM experts. The Value Network Map is the map at the right.

 

The next step was to develop a Systems Dynamic Model with Bob Wiebe and Dan Compton that allowed people to see how the business would work in an ideal environment. Music noted that "Systems Dynamic Modeling provided a good context for seeing how we wanted work to flow into the organization and how we would plan and accomplish the work."

 

Next, the project team needed to define the network of roles and exchanges that would be needed in the new configuration. That led the group to use Value Network Analysis. Glenda Turner, who had successfully been using VNA in logistics and supply chain, joined the team for the mapping effort.

 

Several hundred people were engaged in a series of modeling and scenario workshops to define the roles and interactions required to support the many variables that impact the testing pathway of any given airplane. They managed the complexity of the activity that required literally dozens of roles by first mapping different "neighborhoods" or "flows" within the network - and then gradually merging the maps through the role connections into one large network configuration.

 

The result of this visualization is a map FOT&E employees refer to as the "bubble chart." The VNA map captured the network of interactions in the test cycle from minor local adjustments to a fleet-level perspective. It also showed the many operations center interactions - not just within FOTV, but with Airplane Programs, the FAA, and other regulatory agencies. After the VNA work, the group moved into the Lean tools to configure processes, workflow, and compliance systems that would support the new organization.

 

In addition, a decision was made to refer to job roles rather than job titles. "Concentrating on job roles allowed us to recognize the complexity of the business in a compact form and look at all important interactions," said Music. Not only did that help people focus on critical roles, they also discovered there were roles that had not been previously acknowledged and needed to be made more efficient. With an eye to more flexible resourcing the group identified roles and exchanges that are activated all the time, as well as roles and exchanges that were specialty or only occasional interactions.

 

What Dennis and his team of innovators and implementers understand is that how you go about change is just as important as what you want to change. The group has proven, at least to their colleagues at Boeing, that skillfully applying this powerful combination of tools can bring change - and bring it quickly. 

References

 

[1] "Can Boeing certify 787 in record time?", Puget Sound Business Journal, February 6, 2009.

 

[2] "Testing the Limits: The Making of a Transformation," Kamara Sams, pp. 24-25, Boeing Frontiers, February 2008. Boeing Frontiers (pdf).