QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY

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QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
Qantas Engineering
           Change Journey

Manager Continuous Improvement
Heavy Maintenance Victoria
Patrick McFeeney
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
Qantas Engineering Footprint

                                       He avy Maintenance
                                                                                         Engines
                                       •   Widebody lines - 767/A330 capability
                                                                                         •    Rolls-Royce powerplant
                                       Line Maintenance
                                                                                         Line Maintenance
                                       530 People
                                                                                         Components
                                                                                         Enginee ring
                                                                                         Mate rial & Logistics
                                                                                         3830 people

                                           BNE

                                                                    He avy Maintenance
                                                                                                                         Line stations:
                                                                    •   Narrowbody - 737
                ADL             BKS S YD                                                                                 Australia – Sydney,
                                                                    Line Maintenance
                                                                                                                         M elbourne,
                                                                    Components (including APU)                           Brisbane, Adelaide,
                                                                    Mate rial & Logistics                                Perth, Canberra,
                      AVV MEL
Line Maintenance                                                    Enginee ring                                         Cairns
•   2 hangars                                                       1390 people                                          International – Los
90 people                         He avy Maintenance                --------------------------------------------------   Angeles, Heathrow,
                                                                        ---                                              Bangkok,
                                  •   Widebody lines - 747
                                                                    Engines                                              Singapore,
                                  860 people                                                                             Honolulu
                                                                    •   GE CF6, CFM56 powerplants
                                                                                                                                               1
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
The Global Airline Industry
 - The challenges we face

There still continues to be a number of factors in which
 Qantas has no control and they significantly impact the
 industry in which we compete:
 •   Fluctuating fuel prices
 •   Increased security measures
 •   Emergence of low cost start-ups
 •   Changing customer needs
 •   Open skies
 •   Technology changes
 •   New aircraft models
 •   Increased regulatory demands
 •   Mergers and alliances

                                                           2
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
Drivers of Change
- What this means for Qantas Engineering

                             Qantas Group Strategy
                                Segment business
                              Improve efficiencies and
                                   reduce costs
                                                               Future State
     Current State                                       Capable stand alone business
   Costs above market                                     Robust Commercial skills
                                 QE Strategy
 Lack of commercial skills                                 Delivering market pricing
                                                           Able to build on technical
                                                            excellence and safety
                                MRO Industry
                                Economies of scale
                                   Outsourcing

                                                                                        3
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
The First Steps
    - What needs to change

    We started with leadership and it has been the context that
    underpins our change
   The identification stage was a pivotal moment
    of realisation
   It was the “Light Bulb” that change needed to
    be role modelled by the top team
   Development of new operating style,
    behaviours, language and metaphors
   Critical need to build effective partnerships
    within and outside the business
   Focus on task, team & individual
   Multiple application tools
   Leadership/Team Building Challenge
   Protocols - Behaviours
                                                                  4
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
A pre-requisite for fundamental change is
letting go of the past and present ...

                                   Neutral Zone

                            Chaotic         Focused
          Letting Go                      Recommitment
                         Reorganisation

     Ending                                       New Beginning

                 Sense of Loss

                                             Sense of Gain
                                                                  5
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
Managing people through significant change

Employees will experience a wealth of different emotions

                          ANNOUNCEMENT

                        Shock
   Will I be affected
   by the change?         Denial                                                   Building

                          Anger
    What does the
   change mean for      Bargaining                        Renewal
        me?                                                                      What is the
                                                                                direction of
                                Anxiety                   Re-engagement        the business?

   What options are                       De-motivation             Where do I fit in
   available to me?                                                 the transformed
                                                                     organisation?
                                                                                               6
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
The Strategy Map has driven the Strategic
Communications agenda

                                            7
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
Business Improvement Strategy Summary

People & Leadership
 Customer & Commercial         Phase 1 –         Phase 2 –               Future State –
   Safety
     Lean Sigma                  Gain Control    Lean Deployment         Continuous Improvement
       Quality
       Cost         People & Leadership
       Delivery      Customer & Commercial
       Safety          Safety
                         Lean Sigma
                           Quality              People & Leadership
Current                    Cost                  Customer & Commercial
                           Delivery
State                      Safety
                                                   Safety
                                                     Lean Sigma
                                                       Quality           People & Leadership
                                                       Cost               Customer & Commercial
                                                       Delivery             Safety
                                                       Safety                 Lean Sigma
                                                                                Quality
                                                                                Cost
                                                                                Delivery
                                                                                Safety

                                                                                                  8
QANTAS ENGINEERING CHANGE JOURNEY - MANAGER CONTINUOUS IMPROVEMENT HEAVY MAINTENANCE VICTORIA PATRICK MCFEENEY
Blue Sky – Key Influencing Factors

                                     9
Arsenal (suite of tools)

                                                         A
                                                         A vision
                                                           vision to
                                                                  to become
                                                                     become the
                                                                              the
                                                        A
                                                        Australasian
                                                          ustralasian Component
                                                                       Component                        1.
6.
6. Heavily
   Heavily data
           data driven
                driven with
                        with a
                             a focus
                               focus                                                                    1. Safe
                                                                                                           Safety
                                                                                                                ty in
                                                                                                                    in the
                                                                                                                       the air
                                                                                                                            air begins
                                                                                                                                begins
                                                         Maintenance
                                                          Maintenance Services
                                                                        Services                        with
   on
   on consistency
      consistency and
                  and simplicity.
                       simplicity.                                                                      with safe
                                                                                                             safety
                                                                                                                  ty on
                                                                                                                      on the
                                                                                                                          the ground.
                                                                                                                              ground.
                                                            Centre  of Choice
                                                            Centre of Choice

   5.
   5. Consiste
       Consistentnt way
                    way toto
     approach
      approach proje
                  project
                        ct                        Lean
                                                  Lean Sigma
                                                       Sigma                                                    2.
                                                                                                                2. Re
                                                                                                                   Recognising
                                                                                                                      cognising that
                                                                                                                                that
 manageme
 management  nt that
                that engages
                     engages                                                                                 transactional
                                                                                                             transactional change
                                                                                                                           change and
                                                                                                                                   and
                                                                            B-Safe
                                                                            B-Safe
      all
      all stake
          stakeholde
                 holders
                       rs                                                                                      people
                                                                                                               people change
                                                                                                                       change do
                                                                                                                               do not
                                                                                                                                  not
                                                          Process
                                                           Process                                           always
                                                                                                             always occur
                                                                                                                     occur at
                                                                                                                           at the
                                                                                                                              the same
                                                                                                                                  same
                                                        Improvement       Safet
                                                                          Safetyyprogr
                                                                                 programs
                                                                                       ams
                                                         Improvement                                                    time
                                                                                                                        time

                                         Cap
                                         Cap 88                                              Strategy
                                                                                             Strategy
 4.
 4. Drives
     Drives business
              business sk  skills
                              ills to
                                   to                             Centres
                                                                  Centres of
                                                                           of                   Map
                                                                                                Map
   the
   the front
        front line.
                line. De
                       Decisions
                          cisions       Consistent
                                        Consistent                Excellence
                                                                   Excellence
                                          Project
                                          Project                                       Communication
 made
 made at at the
             the most
                   most effe
                          effective
                                ctive                                                   Communication
                                        Managem
                                        Managementent
         le
         level.
            vel. Provides
                  Provides                                                                                       3.
                                                                                                                  3. Unde
                                                                                                                     Understanding
                                                                                                                             rstanding thethe
   opportunitie
   opportunitiess to  to identify
                         identify                                                                                  diffe
                                                                                                                   differe
                                                                                                                         rence
                                                                                                                            nce in
                                                                                                                                 in teams
                                                                                                                                     teams
     team
      team strengths
              strengths and and                          MDWT
                                                         MDWT                                                    dynamics
                                                                                                                 dynamics and  and working
                                                                                                                                     working
    we
    weakne
       aknesses
              sses and
                    and targe
                           targett                                                                               with
                                                                                                                 with the
                                                                                                                       theirir stre
                                                                                                                               strengths
                                                                                                                                    ngths to to
  the
  thesese areas
           areas for
                   for optimum
                        optimum                     Unleash                                                         he
                                                                                                                    helplp them
                                                                                                                           them be bette
                                                                                                                                       tterr
                                                    Unleash the
                                                              thefull
                                                                   full
          pe
          performance
              rformance                             potential
                                                    potentialofof our
                                                                  our        Amazing                               function
                                                                                                                   function as  as a
                                                                                                                                   a team
                                                                                                                                      team
                                                        people
                                                         people               People

                                                                                                                                                  1
                                                                                                                                                  0
Standardised Work,

Work Sequence Boards (Yamazumi)

•Visual plan for checks
•Real time status
•Provides ownership of process to crews
•Approximate 100% on time delivery since implementation

                                                          1
                                                          1
4 pillars of our Business :
 Lean Sigma

• Lean Initiatives
   - Improving Productivity
   - Reducing Waste!

                               1
                               2
Problems and Countermeasures

•   Reporting Problems

•   Immediate Containment

•   Taking Ownership

•   Long Term Solution

•   Problems Permanently Solved
                                  1
                                  3
PPS
                                                                                      No:_________
Practical Problem Solving Worksheet

 Team Leader:                         Direct Cause:
 Member 1:                Member 2:   Enviro            Materials         Method

 Member 3:                Member 4:
                                                                                                   Problem

Problem Definition:
                                      Time                 Man            Machine

                                        Root Cause:
Point of Cause:                         1.   Why:                         4.   Why:
                                        1.   Because:                     4.   Because:
                                        2.   Why:                         5:   Why:
    Insert Point of Cause Detail        2.
                                        3.
                                             Because:
                                             Why:
                                                                          5.   Because:

                                        3.   Because:

Containment Action:                   Countermeasure:
                                        Countermeas ures     Impact   S    Q      C   D              Ok/Ng
When Implemented:
                                                A

Where is it:                                    B

Who Responsible:                                C

                                                D

Confirmation Frequency:                         E
                                                                                                             1
                                                Key              OK             POT           NG
                                                                                                             4
                                                                                          X
Avalon Workshops

                   1
                   5
Qantas Engineering Program Office

                   Strategy Translation                       Benefits Realisation        Prioritisation
                   Recommendations and Prioritisation         Governance development
                   Resource Recommendation                    Risk M itigation
       Portfolio   Portfolio M anagement (cross segment)      Portfolio Reporting

                   Programme M anagement            Tool Development
                   Cross Functional management      Leadership coaching
                   Benefit Realisation              Communication
                   Relationship M anagement         Prioritisation
                   Coaching and M entoring          Reporting and Tracking
                   Consulting Services              Financial Procedures and Governance
     Programme

                   M ethodology Development        Health Check/ Audits        Risk M anagement
                   Tool and Process Development    Rapid Response Fix team     Financial Procedures
                                                                               and Governance
                   M entoring and Coaching         BU Prioritisation
                   Training and Eduction           Outcome behaviour drive

      Project      Infrastructure Development      Stakeholder M anagement
                   KPI development                 Change M anagement                                      1
                                                                                                           6
Getting Lean

   •If you are going uphill and taking one step at a time, You
   are headed in the right direction.
   •Employee involvement is the foundation
   •All that we have to do to become world class can not be
   accomplished from the bottom up: it has to start from the
   top down.
   •If your not simple you cannot be fast, and if you aren’t
   fast, you can’t win
   •Metrics must be few,simple,meaningful and directly
   linked to the visual targets in the workplace.
                                                                 1
                                                                 7
People are the key to World class,
Not Technology

“You should submit wisdom to the company.
If you don’t have any wisdom to contribute,
submit sweat.
If nothing else, work hard and don’t sleep. Or
resign.”

Taiichi Ohno                                     1
                                                 8
Wrap-Up

          Questions.

                       1
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