Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2005. / Includes bibliographical references (p. 61). / This thesis addresses Six Sigma process improvements and the supplier management issues resulting from the shift to external suppliers in the aftermath of a fire. Originally, this thesis was to address a lean implementation in Raytheon's substrate fabrication area. It was intended to build on work done by Satish Krishnan, which focused on a lean implementation in a related area. However, a fire in Raytheon's El Segundo substrate area forced Raytheon to outsource substrate production and brought to the forefront a different set of challenging issues. The fire shut down production for 21 days, creating pressure to capture lost ground once operations resumed. The increased demand and burden on resources during the recovery uncovered inefficiencies in key processes. One of the areas that increased in importance following the fire was magnet assembly. The first half of this thesis (Chapter 3 through Chapter 6) applies Raytheon's Six Sigma framework to the magnet assembly process in an effort to reduce non-value added work and increase standardization and control. Six Sigma incorporates many of the principles of lean manufacturing, such as continuous improvement and the elimination of non-value added work. / (cont.) The first half of this thesis focuses on the Six Sigma framework because of Raytheon's strong commitment to the approach, rather than the larger set of issues in lean manufacturing. Typically, the vertical integration decision is one of the key strategic choices facing a firm. The fire crippled Raytheon's substrate fabrication area and changed this decision from a strategic one to a tactical one. Rebuilding the substrate capability in El Segundo would require close to a year. In the short term, Raytheon was forced to shift substrate production from El Segundo to external suppliers or alternate internal sites. The second half of this thesis (Chapter 7 and Chapter 8) addresses the issues associated with outsourcing a technically complex product. The initial substrate offload accelerated the timeframe for establishing suppliers and for dealing with concerns like intellectual property, coordination, dependency and the strategic consequences of outsourcing a key technology. This thesis attempts to address these implementation issues as well as the strategic implications of outsourcing substrates. / by Sarah Egan. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Manufacturing Program at MIT, 2005. / Includes bibliographical references (p. 75-76). / Deciding which activities to conduct in-house and which to outsource has become increasingly important due to its implications on a company's supply chain and overall business model. A number of factors can lead a company to outsource manufacturing processes. As a result of this outsourcing, the supply chain can become very complex and overwhelming to manage. This thesis will analyze this situation from the perspective of one manufacturer, American Axle and Manufacturing, Inc. (AAM). AAM's Metal Formed Products (MFP) Division currently has a number of challenges: rising steel prices, fixed labor costs and declining sales. All these factors have significantly impacted profitability, forcing senior management to take a comprehensive look at the division and consider developing a plan to improve divisional operations. As a part of this plan, MFP Division's senior management asked for a thorough look into all of the manufacturing processes performed by the division both internally and by outside suppliers. In addition to identifying the processes and suppliers, senior management sought to highlight opportunities for improving the process flow through the re-sourcing of manufacturing processes. This project develops a framework to analyze and evaluate these re-sourcing decisions. This framework employs a five-step approach and incorporates a number of diverse analytical tools. Process flow mapping provided a tool to visually highlight the best opportunities to resource. In addition to a visual representation, process flow mapping also provided the data to financially evaluate alternatives. Strategic and market factors were identified in order to target and prioritize re-sourcing efforts. / (cont.) This framework provides a structure for sourcing decisions that balances the financial and strategic concerns. The project concluded in a $2M investment to re-source heat treating to AAM facilities. / by Heath M. Holtz. / S.M. / M.B.A.

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 94-99). / The Broad Institute is a world leader in genomic sequencing. The Institute gained prominence during the Human Genome Project and has continued to be the nation's leading public laboratory for genomic sequencing projects. The Broad Institute has done this by taking advantage of economies of scale, rapid process innovation, and new process implementation. Strong execution has made The Broad Institute the lowest cost and highest quality sequencing operation in the country. As biological science evolves, The Broad Institute will focus on low-volume, highly targeted areas of a genome rather than high-volume, full genome sequencing projects. In order for the Institute to maintain high-quality output at low cost, it must change its operations strategy from mass production to flexible, lean production. The operations organization has begun the lean production journey by hiring operations focused managers and initiating a Six Sigma program to utilize their employees to innovate and optimize processes. This effort has been supplemented with 5S (systematic organization) and information systems that improve communication between groups. / (cont.) This thesis will focus on engineering and management issues relating to The Broad Institute and its quest to maintain quality and cost leadership among genomic sequencing laboratories. Specifically, the thesis will focus on the following items; * Preventing organism sample swaps by implementing operations changes that minimize operator error and provide electronic sample tracking through the use of Datamatrix (two dimensional) barcode technology. * Minimizing inherent process variability by increasing reagent inventory turnover and eliminating the use of expired chemicals. * Increasing the flexibility of the production process to easily handle high-mix, low-volume projects, such as the Cancer Human Genome Project. / by David A. Penake. / M.B.A. / S.M.

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; and, (S.M.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2003. / Includes bibliographical references (leaf [109]). / The tragic events of September 11th , 2001, served as a catalyst for drastic change in the airline industry which was already in a financial downturn. Both the airlines and the government began introducing changes to the various aspects of the travel experience. The most impactful changes have been in the area of security, where an entirely new government agency has been created to oversee security at airports. However, additional changes to the travel experience have come from the airlines. This research provides an overview and analysis of one such change that is sweeping the industry. Self-service check-in devices were first installed by major network airlines in 1995 when Continental Airlines introduced the ETICKET machine. Others have since developed their own self-service products, while Continental has transformed its original machine into the eService product line. These devices empower the traveling customer to perform their own check-in and get through the airport quicker. Additionally, self-service check-in devices represent a cost savings opportunity for the airlines through reduced headcount requirements and ticket distribution fees. While deployment has been rapid both at Continental and other airlines, the development of a process that merges the ticket agents with the new technology has been lacking. In 2002, Continental Airlines began a cross-functional effort to drastically re-engineer the selfservice process. Many of the traits of that process have been implemented to some extent throughout Continental's domestic airports. Through observations of the current self-service process, surveys of both ticket agents and customers, and an in-depth case study comparison of two airports, this research has identified numerous opportunities for improvement of the process. In addition, the research provides recommendations for the next phases of the re-engineering process based on the findings of the observations and surveys. Finally, areas for future research that build off of these findings are presented with the goal of improving the travel experience for the customers and reducing costs for the airlines. / by Jared Keith Miller. / S.M.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 52-53). / In the face of growing competition and the commoditization in the Tantalum Wire business, H.C. Starck must find a way to differentiate their wire products from competitors in order to survive in this market. This thesis studies the possibility of developing a new product into the market by launching a product development process, with the goal of gaining a competitive advantage and sustaining it, thus increasing profitability over time. For this purpose a decision support model was developed to analyze the economical and operational feasibility of a new product. All aspects of launching a new product development process in H.C. Starck Wire department were modeled to simulate uncertainties across the Tantalum supply-chain, and recommendations were drawn based on results. A number of goals were addressed in this study: First, a robust link was created between the scientific potential and the economical potential of a new wire development. Second, a recommended strategy was defined for H.C.Starck Wire department in order to differentiate their products in lieu of low cost competition. / by Michal Hovav. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 80). / Following the tragedies of 9/11 in the United States and the ensuing down years for the aerospace industry, there are now signs of a comeback. This increase in demand is causing stress on the operations of many aerospace companies, who reduced operations and cut costs during the slowdown. This thesis proposes a three-pronged approach to undertake when looking to increase the capacity of an operation. The first step is to start changing the mindset on the shop floor to value all production pieces. The second step is to utilize all the analytical tools (such as Statistical Process Control) available to reduce set-up time and improve the targeted improvement activities of the operation. The third step is to properly evaluate the costs of purchasing new equipment and comparing that with potential alternative technologies. The proper utilization of these steps requires a thorough understanding of the organization's culture and how these change initiatives impact the relevant stakeholders. Without this organizational understanding, the chance of successfully meeting the increased customer demand is reduced. A case study was performed using this methodology at the Turbine Module Center at Pratt and Whitney. / (cont.) A potential way to change the mindset of the operators on the floor was identified surrounding the qualifying of machines to run a given part. Then, by using a more rigorous SPC program, a significant amount of wasted capacity was identified and the potential gains were mapped out. Then assuming that the implementation of the previous two-steps did not yield enough of an improvement to cover the missed demand, two alternative technologies were evaluated to determine what kind of equipment to purchase. This three-pronged approach will ensure that the organization can meet their expected demand long into the future. / by Bret R. Awbrey. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Chemical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 83-84). / Advances in medicine rely on accurate data that is rapidly provided. It is therefore critical for the Genome Sequencing platform of the Broad Institute of MIT and Harvard to continually strive to reduce cost, improve throughput, and increase the quality of its data output. In the past, new technology in the form of both chemistry improvements and robotics has allowed the Institute to achieve these goals in a step-wise manner. However, as the rate of technology progression in sequencing has slowed, the Institute has been forced to look to continuous, incremental improvement in order to achieve its goals. The Core Sequencing/Detection group handles the high-throughput sequencing duties at the Broad Institute. Through the use of robotics and cutting edge biology, they are able to process and sequence upwards of 50 billion bases of DNA per year. The work that this thesis was based on took place primarily in this automated production area. This thesis utilizes a number of lean concepts, including the 7 Wastes and pull production control. / (cont.) Kanban systems, workflow changes, and a 5S implementation were used to bring these concepts to life at the Broad Institute. In order to correctly size the kanban system, process buildup diagrams and discrete event simulation were used. Each of these tools helped to drive the process towards the Institute's goals of reducing cost and improving quality and throughput. / by Kerry P. Person. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Chemical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Vita. / Includes bibliographical references (p. 42). / Lean implementations have had a mixed record of success in organizations. One possible explanation for this observation is that lean is built upon a value system that is not always shared by the organizations trying to implement the philosophy. For example, one element of lean is that employees at all levels of the organization are expected to share ideas for improving processes. This idea might seem foreign in companies where responsibility for process improvement comes only from management or specialized departments. Lean would not be expected to flourish in an environment where employee innovation and initiative is not valued. As this example demonstrates, lean loses its effectiveness when its values are incompatible with those prevailing in an organization. Determining this compatibility has not been straightforward to date. Whereas lean literature is filled with methods and tools for discovering and removing waste, there is little guidance on how to determine if lean can be successfully applied to an organization's unique socio-technical system. Stakeholder Value Mapping (SVM), a technique adapted from the field of Enterprise Management, is presented to address this need. / (cont.) Whereas SVM has already been developed for use at the enterprise level, this thesis aims to extend the applicability of SVM to the micro level. A methodology for mapping stakeholder values around a specific lean project at Raytheon's Integrated Air Defense Center is developed. The project, a pull system for bolted cabinets, is described in detail in this thesis as a case study. We find that SVM alone does not yield sufficient data to guide lean implementations. It is, however, an effective method for understanding the stakeholder interests that can serve as barriers to lean. Leaders trying to bring lean into their organizations will find SVM a promising tool for determining where to initially focus their attention. If lean and stakeholder values are aligned, the groundwork will be set for a traditional lean implementation that focuses on well-known tools for discovering and removing waste. On the other hand, if lean and stakeholder values differ significantly, consideration should first be given to aligning organizational interests with the lean strategy. / by Benjamin H. Lathrop. / S.M. / M.B.A.

Thesis (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; and, (S.M.) -- Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2007. / Includes bibliographical references (p. 61). / Value-added processes that bear associated wait times occur frequently during production manufacturing and increase cycle time. Since the wait time is integral to the value created by the process, it can be difficult to reduce the cycle time impact. The use of adhesives and the impact of their associated cure times is an example of such a time-dependent process and one that appears frequently on products made at Raytheon Space and Airborne Systems (SAS). Using a typical Raytheon pod system (RPS) as a case study, this thesis examines various ways to mitigate the impact of these value-added associated wait times (VAAWT) on cycle time. Adhesives with long cure and/or set times are used extensively throughout the design of this RPS in both structural and non-structural applications. Now that the RPS is well into full-rate production, the cycle time impact of these adhesives' VAAWT has become a burden, accounting for over 60% of the cycle time on the three assemblies studied on during the case study. Both short-term and long-term solutions were developed as a result of this project, which enabled a 23% reduction in cycle time exclusive of changes in design. / (cont.) Based upon the lessons learned during this case study, a set of guidelines is presented for application to other time-dependent processes and Raytheon products. This thesis also discusses some of the barriers encountered during the implementation of this project and suggestions for overcoming them. These guidelines and lessons have already been applied successfully to reducing the impact of adhesive cure times on a second SAS product line, resulting in a cycle time reduction of 80%. / by Sara A. Dudnik. / S.M.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Manufacturing Program at MIT, 2007. / Includes bibliographical references (p. 97-98). / Advances in Information Technology and Information Systems delivery over the past decades have restructured industries and created enormous value. Interestingly however, research shows companies traditionally have a very difficult time capturing the value from their investment. Any surplus created by these improvements is often competed away and given back to customers. Wall Street's irrational exuberance of the late 1990's has given way to a far more conservative and critical view concerning IT investment. Decision makers are focused on demonstrating that Information Technology expenditures result in positive net returns to the company. IT managers are faced with a fundamental question: How does the organization use Information Technology to create sustainable competitive advantage and capture value in its industry? This thesis proposes a framework, the Core Competency Model, to help companies think about Information Services strategy and Information Technology deployment. Instead of seeking to create competitive advantage through IT investment alone, it introduces the concept of core competencies. IT resources can be quickly duplicated by competitors, as has been shown in the research. / (cont.) Core competencies, the complex blending of unique resources and capabilities, are much more difficult to duplicate and form the basis for true sustainable competitive advantage. At its heart, the Core Competency Model suggests that the role of the IS group is to support the formation and enhancement of the organization's core competencies. It further identifies several capabilities and resources that the IS group must possess to fully support the core competencies of the enterprise. This model, if truly utilized, would change the nature of a company's internal dialog on IT spending. Debate over which business units should get which IT resources would be replaced with discussion of the strategic direction and core competencies of the company. Decisions concerning IS resource allocation and IT spending would follow very naturally from this discussion. The Core Competency Model provides a framework for this dialog, beginning with the strategic identification of core competencies, and ending with the tactical analysis of the Information Systems group's capabilities and resources. The final chapter presents some recommendations aimed at helping BMC West successfully develop a set of core competencies, the first step toward creating sustainable competitive advantage in their industry. / by Kurt Campbell. / S.M. / M.B.A.