Original Date: 08/07/1995
Revision Date: 01/18/2007
Best Practice : Asset Consolidation
Lean Manufacturing efforts at Lockheed Martin Tactical Aircraft Systems (LMTAS) have created an incentive for cost savings in all areas of the Fort Worth facility, and continues to further drive down operating costs through asset consolidation.
LMTAS has deactivated floor space and reduced its manufacturing area by 800,000 square feet, thereby greatly reducing electrical power, heating, and air conditioning expenses to those sections. In addition to the utility cost savings in the manufacturing area, LMTAS has reduced major machinery inventory by 191 pieces. Not conducive to the current LMTAS low production rates, the Flexible Machining System and Automatic Guided Vehicle system have been sold, and the income from the equipment sales was recycled back into facility modifications.
Cost improvements have resulted in a 24% improvement in touch labor hours per unit. At the same time, the average monthly F-16 contract deliveries were reduced by 56% and the work force reduced by 37%. These strides in Lean Manufacturing equate to an overall F-16 cost per unit improvement of 36% from June 1992 to year end 1994.
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