Flevy Management Insights Case Study
Measurement Systems Analysis in Aerospace Manufacturing
     Joseph Robinson    |    Measurement Systems Analysis


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Measurement Systems Analysis to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The organization faced critical challenges with measurement systems leading to increased variability and defects in its aerospace components, jeopardizing quality assurance and customer trust. By implementing a Measurement Systems Analysis program, the organization achieved significant reductions in measurement variance and defect rates, demonstrating the importance of rigorous quality management practices and technological investment in operational success.

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Consider this scenario: The organization is a mid-sized aerospace component manufacturer facing discrepancies in its measurement systems that are critical for quality assurance.

With recent expansions into more complex aerospace products, there's been an increase in variability and defects that suggest an underlying issue with measurement precision and accuracy. The organization needs to address these inconsistencies to maintain its certification standards and customer trust, as well as to reduce scrap rates and improve overall product reliability.



Given the critical nature of aerospace manufacturing tolerances, initial hypotheses might center on insufficient calibration protocols, operator measurement error, or inadequate measurement equipment. Another possibility could be the lack of a robust Statistical Process Control (SPC) system, which is essential for identifying and controlling variability in manufacturing processes.

Methodology

The approach to Measurement Systems Analysis (MSA) will adopt a 6-phase methodology to ensure comprehensive analysis and improvement:

  1. Assessment of Current Measurement Systems: Review existing measurement tools, processes, and data integrity. Are the right metrics being captured? Is there evidence of measurement drift?
  2. Identification of Key Variables: Determine which measurements are most critical to product quality and process control. What are the tolerance thresholds, and how are they being monitored?
  3. Operator Training and Standardization: Evaluate the training level of operators and implement standard measurement procedures. Is there a standard work for measurement, and is it being followed consistently?
  4. Calibration and Validation: Establish a calibration schedule and validation process for all measurement equipment. How often are tools calibrated, and are calibration records up to date and accurate?
  5. Statistical Analysis and SPC Implementation: Apply statistical methods to analyze measurement data and implement SPC to monitor and control process variability. Are control charts being used, and are they effective in detecting shifts in the process?
  6. Continuous Improvement and Feedback Loop: Develop a system for ongoing review and enhancement of the measurement system. How is feedback from the measurement system being used to drive process improvements?

For effective implementation, take a look at these Measurement Systems Analysis best practices:

Gage Repeatability and Reproducibility (R&R) Course (90-slide PowerPoint deck)
Six Sigma - Measurement Systems Analysis (62-slide PowerPoint deck)
Lean Measurement System Analysis (MSA) (137-slide PowerPoint deck)
Measurement System Analysis (94-page PDF document)
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Key Considerations

Ensuring the reliability of measurement systems is critical for maintaining the high standards required in aerospace manufacturing. The CEO will be particularly interested in how the proposed changes will integrate with existing processes, the cost-benefit analysis of new equipment, and the timeline for seeing tangible improvements.

Training and cultural acceptance are key to the success of any new methodology. It's important to communicate the benefits of the MSA to all stakeholders and ensure that they are engaged in the process from the beginning.

Finally, the CEO will want to understand how the MSA will be maintained over time and what measures will be put in place to prevent regression. This includes discussing the potential for ongoing support and the structure of the continuous improvement program.

Expected Business Outcomes

  • Reduction in variability and defects—leading to higher product quality and customer satisfaction.
  • Decrease in scrap rates—resulting in cost savings and more efficient use of materials.
  • Improved compliance with certification standards—ensuring the organization remains competitive in the aerospace market.

Potential Implementation Challenges

  • Resistance to change—operators and managers may be hesitant to adopt new measurement practices.
  • Cost of new equipment or upgrades—initial investment may be significant, though with a clear return on investment.
  • Data integration—ensuring new measurement data is effectively captured and utilized within existing systems.

Critical Success Factors (CSFs) and Key Performance Indicators (KPIs)

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated.
     – John E. Jones

  • Measurement Accuracy (KPI)—percentage reduction in measurement variance post-implementation.
  • Operator Adherence to Standards (CSF)—crucial for the consistency and reliability of measurements.
  • Equipment Calibration Compliance (KPI)—track the percentage of equipment calibrated on schedule.
  • Scrap Rate Reduction (KPI)—a direct indicator of process improvement and cost savings.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Sample Deliverables

  • Measurement System Assessment Report (PowerPoint)
  • SPC Implementation Plan (Excel)
  • Calibration Schedule and Compliance Tracker (Excel)
  • Operator Training Manual (MS Word)
  • Continuous Improvement Framework (PowerPoint)

Explore more Measurement Systems Analysis deliverables

Technology Integration

Advancements in measurement technology, such as laser scanning and 3D modeling, can enhance the precision of measurements and provide better data for analysis and decision-making.

Data-Driven Decision Making

Implementing a data analytics platform can help in understanding trends and patterns in measurement data, leading to more informed decisions and proactive quality control.

Measurement Systems Analysis Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Measurement Systems Analysis. These resources below were developed by management consulting firms and Measurement Systems Analysis subject matter experts.

Risk Management

Identify potential risks associated with the measurement systems and develop mitigation strategies to ensure that the manufacturing process remains robust against these risks.

Stakeholder Engagement

Engage with all levels of the organization to ensure buy-in and support for the MSA program. This includes clear communication of the benefits and training for those affected by the changes.

Integration with Existing Processes

Introducing a new Measurement Systems Analysis (MSA) program will require careful alignment with existing processes to minimize disruption and ensure a smooth transition. The MSA will be designed to complement current workflows, with adjustments made where necessary to accommodate enhanced measurement practices. For example, existing quality checks will be augmented with additional MSA checkpoints, ensuring that measurement accuracy is maintained without compromising production speed. Furthermore, the calibration and validation phases of the MSA will be scheduled to align with existing maintenance routines to reduce equipment downtime.

Integration with existing Enterprise Resource Planning (ERP) systems will be critical. The MSA data collected will feed directly into the ERP, allowing for real-time quality monitoring and better traceability of components. This will facilitate quicker responses to any measurement anomalies and provide a comprehensive view of quality across the production line.

Cost-Benefit Analysis of New Equipment

Investing in new measurement equipment is a significant decision that requires thorough analysis to ensure a clear return on investment. The cost of new equipment will be weighed against the potential savings from reduced scrap rates and improved product quality. For instance, advanced laser measurement tools, while costly, can significantly reduce measurement errors, leading to fewer reworks and higher customer satisfaction. According to a Gartner study, companies that invest in high-precision measurement technology can expect to see a reduction in defect rates by up to 25% within the first year of implementation.

Moreover, the investment in new equipment often leads to indirect benefits such as reduced warranty claims, improved brand reputation, and the ability to command premium pricing due to higher product reliability. These factors will be quantified to the extent possible and included in the cost-benefit analysis to provide a holistic view of the financial implications.

Timeline for Tangible Improvements

Executives are understandably eager to see the results of any new initiative. The timeline for tangible improvements will be phased, with some benefits like improved measurement consistency being observed almost immediately after operator training and standardization. Within three to six months, as the SPC system takes root, we expect to see a noticeable decrease in the scrap rates and variability. For long-term outcomes such as reduced warranty claims and enhanced customer satisfaction, a period of 12 to 18 months is a realistic expectation.

These timelines are based on industry benchmarks and our experience with similar implementations. For instance, a recent Accenture case study on MSA in the automotive sector showed initial quality improvements materializing within six months of program launch.

Training and Cultural Acceptance

Training will be a continuous effort, starting with a comprehensive introduction to the MSA program and followed by regular refresher courses. A mix of on-the-job training, workshops, and e-learning modules will cater to different learning styles and ensure that all operators achieve a high level of proficiency. The training curriculum will cover not only the technical aspects of the new measurement tools but also the importance of measurement accuracy in the broader context of aerospace manufacturing.

Cultural acceptance will be fostered through a change management strategy that includes open communication, involvement of employees in the implementation process, and recognition of successes. Regular town-hall meetings and feedback sessions will be organized to address concerns and gather suggestions from employees. Success stories will be shared across the organization to highlight the positive impact of the MSA program, thereby reinforcing the value of the changes being made.

Maintenance of MSA Over Time

The maintenance of the MSA program over time is critical to prevent regression and ensure continuous improvement. A dedicated MSA team will be established to monitor measurement performance, review feedback, and lead periodic reviews of the system. This team will be responsible for keeping the calibration schedules, training records, and SPC data up-to-date and for initiating corrective actions when necessary.

In addition, a 'lessons learned' repository will be created to capture insights from the MSA implementation and ongoing operations. This will be a valuable resource for continuous improvement and will help in quickly addressing any future measurement challenges. Regular audits will be conducted to ensure compliance with the established measurement standards, and the findings will be used to further refine the MSA program.

Ongoing Support and Continuous Improvement Program

Ongoing support for the MSA program will be provided through a mix of internal resources and external experts. The internal MSA team will be the first line of support, while external consultants will be brought in for periodic reviews and to provide specialized training or assistance with complex issues. This approach ensures that the organization has access to the latest best practices and expertise in measurement systems analysis.

The continuous improvement program will be structured around the Plan-Do-Check-Act (PDCA) cycle, with regular intervals set for each phase. This will ensure that improvements are made systematically and that the impact of changes is evaluated thoroughly before being fully integrated into the MSA program. Key performance indicators such as scrap rates, measurement variance, and calibration compliance will be tracked closely to measure the effectiveness of the continuous improvement efforts.

By addressing these concerns with clear and actionable strategies, executives can be confident in the successful implementation and long-term sustainability of the MSA program, leading to significant quality and efficiency gains for the aerospace manufacturer.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Implemented a comprehensive Measurement Systems Analysis (MSA) program, leading to a 20% reduction in measurement variance.
  • Decreased scrap rates by 15% within six months, contributing to significant cost savings and material efficiency.
  • Achieved 100% calibration compliance for critical measurement equipment, up from 75% pre-implementation.
  • Operator adherence to new measurement standards reached 90%, demonstrating successful training and cultural acceptance.
  • Introduced advanced laser measurement tools, resulting in a 25% reduction in defect rates in the first year.
  • Integrated MSA data with existing ERP systems, enhancing real-time quality monitoring and component traceability.

The initiative to implement a comprehensive Measurement Systems Analysis (MSA) program has been markedly successful, evidenced by significant improvements in measurement accuracy, scrap rate reduction, and overall process efficiency. The reduction in measurement variance and defect rates directly correlates with the strategic investment in advanced measurement technologies and rigorous calibration protocols. The high level of operator adherence to new standards underscores the effectiveness of the training programs and the cultural shift towards quality awareness. The integration of MSA data into the ERP system has not only improved real-time monitoring but also bolstered the organization's ability to make data-driven decisions. However, achieving even greater success could have involved earlier stakeholder engagement to further minimize resistance to change and expedite the cultural shift, suggesting a potential area for strategy refinement.

For the next steps, it is recommended to focus on further embedding the MSA program into the organizational culture through continuous training and engagement initiatives. Expanding the use of data analytics for predictive quality control could preemptively address potential issues before they impact product quality. Additionally, exploring opportunities for automation in measurement processes could drive further efficiencies and accuracy improvements. Regularly reviewing and updating the MSA program to incorporate new technologies and best practices will ensure that the organization remains at the forefront of aerospace manufacturing excellence.


 
Joseph Robinson, New York

Operational Excellence, Management Consulting

The development of this case study was overseen by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: Power System Accuracy Analysis for Utilities Firm in North America, Flevy Management Insights, Joseph Robinson, 2024


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