Memo for Record
Date: 29 Feb 04
Subject: William Rutley Experience with MG Taylor Models/Processes/Environment
Intellectual Property (IP)
Background:
I served in the USAF for nearly 26 years, retiring as a Colonel in Aug 1998. Following a brief flying career as a WSO in F-4s, I spent the rest of my career in Air Force acquisition, R&D, and sustainment assignments to include Commander of the Arnold Engineering Development Center (AEDC) and System Program Director (SPD) for the F-15 Eagle fighter. Following my Air Force career I spent three years as a Principal with the Cap Gemini Ernst and Young (CGEY) Accelerated Solutions Environment (ASE) before taking on my current position as Jacobs Sverdrup Director for the Enterprise Information Services (EIS) Group.
I first met Matt Taylor in late 1991, shortly after I became Commander at AEDC. My predecessor as Commander had Matt design and facilitate a DesignShop for AEDC Strategic Planning involving over 60 of the Center’s top leadership. The AEDC planning organization recommended I meet with Matt and examine the MG Taylor models, processes, and environment for myself. I have always believed in the inherent ability of people, regardless of race/creed/education/color/culture/age/sex, to work collaboratively in generating great value, if - leaders and managers provide the models, processes and environment for continuous breakthrough innovation through relentless focus and alignment on excellence. Over my professional career I have, and still, employ many tools to accomplish this goal, e.g. Six Sigma, TQM, Theory of Constraints, GE Workouts, Juran, Covey, Peters and more.
BOTTOMLINE: The MG Taylor models, processes, and environment are unique in an ability to drive real value through focused and aligned innovation and transformation, day after day and year after year. All the other tools become much more effective when applied within the innovation context created through the MG Taylor IP. The ROI between most of the other tools and MG Taylor IP is the difference between an improvement of 10% to 50% and an improvement of an order of magnitude (X10).
The key results at AEDC, summarized below, led me to bring MG Taylor onboard when I became the SPD of the F-15 program following my AEDC tour. The application of the MG Taylor IP for the F-15 program had equally spectacular results to those achieved at AEDC and these results are also summarized below.
Ernst and Young recognized the power of the MG Taylor IP and sought a long-term partnership and license with MG Taylor that has transformed how consulting value is delivered for E&Y Consulting, and ultimately its successor, Cap Gemini Ernst and Young. CGEY has extended the high value of the MG Taylor IP to many Fortune 500 companies across sectors from Healthcare to Energy to Automotive to Aerospace to the Public Sector. I was part of this fantastic journey for three years as a senior facilitator and ASE leader for CGEY. A groundbreaking patent now recognizes the incredible value and uniqueness of the MG Taylor IP worldwide.
Finally, I have arrived back as a User for the MG Taylor IP as I employ it to create a new business line within Jacobs Engineering and Jacobs Sverdrup, known as Enterprise Information Services (EIS). That chapter of my journey with Matt is still being written!
Major Accomplishments Utilizing the MG Taylor IP at AEDC and the F-15 Program:
Arnold Engineering Development Center (AEDC)
AEDC was on a down hill slide in 1991 partly due to only the Air Force extensively used the test capabilities, while the Navy, Army and NASA used AEDC only if they had no other choice and in most cases maintained their own facilities. With the number of Air Force systems being brought through development dropping AEDC was laying off highly talented people and looking hard at closing and/or demolishing test cells. A world-class national capability was in trouble.
From its inception AEDC has used a large (over 2000) contractor workforce with approximately 300 to 400 Air Force military and civilian people. This is a complex team that includes 13 unions. A major strike had taken place during my predecessor’s time as Commander. While the strike was over, the damage to morale and teamwork was extensive. Tools being employed like TQM, Juran, and others were only marginally effective.
To me, as the “new guy” AEDC needed a breakthrough in teamwork and focus. If AEDC were to not just survive, but to thrive in the coming world then it must transform, and maintain that transformation, to a higher value entity for the U.S. Government, the taxpayer and the companies involved in the aerospace and defense work. Only by establishing a higher value path could AEDC maintain and justify its unique place in the future of aerospace development.
My introduction in late 1991 to Matt Taylor and the MG Taylor IP convinced me that a full commitment to the DesignShop IP would provide the innovation, focus, and alignment needed to find the “best value” path. The Sole Source Justification was written from this assessment to contract with MG Taylor for 2 years during which AEDC would learn the IP, be certified in its application, licensed and full transfer would take place, such that AEDC could run the IP on its own while being a member of the MG Taylor ValueWeb. This was completely successful.
Several Major Strategies Emerged during the Grand Strategy DesignShops early in the process:
AEDC needed to develop win-win and collaborative alliances with NASA, Navy, and Army test centers and program offices as well as maintain those with the Air Force side.
Examination of the founding of AEDC and dialogs on the components of National Security led to the conclusion that AEDC needed to find a way for both military and commercial aerospace products to be tested at AEDC. Laws and regulations in effect in 1991 did not allow for commercial aerospace testing at AEDC.
AEDC needed to lead the way in establishing a national public-private aerospace partnership (value web) that would reverse the erosion in the U.S. economic and military leadership in aerospace. This included recognition that National Security is mainly composed of economic, military and political strength. AEDC was intended to contribute to both military and economic strength, but over 40 years had remained dominated by military needs and, increasingly, Air Force needs. |
AEDC was successful, using the MGT IP, in building a value web with U.S. Defense and Commercial aerospace companies, who, through their elected representatives, enabled a change to the law that created AEDC. This change to the law provided AEDC a mechanism by which commercial and government organizations could do aerospace testing through a fair pricing and access process. It was estimated that this change added over $750M in new revenue to AEDC over the next 20 years (1993 to 2013).
As a result of the AEDC led Public-Private aerospace testing alliance the GE, P&WA, and Rolls Royce engines for the 777 were all tested and certified in the AEDC unique ASTF test complex. Because the FAA was involved from the beginning, and the testing was so complete and accurate, the FAA released the 777 for overseas routes 2 years early. The economic impacts for Boeing, the engine manufacturers and the airlines were in the billions of dollars. In addition, this led to unprecedented cooperation between government and commercial aerospace organizations that benefited the U.S, economy, the defense sector, and the U.S. taxpayer.
The value web that AEDC built, via the MGT IP, with the Navy led to the Navy deciding to incorporate all Navy testing at AEDC and to join in making AEDC a multi-service organization. Today, both Navy and Army people are stationed at AEDC and the integration of the services ground test needs at AEDC has saved the taxpayer at least $30M per year.
Today, AEDC leads a collaborative government and commercial aerospace alliance value web that encompasses all DoD services, NASA, and U.S. commercial aerospace industry.
The F-15 Eagle Fighter Program
The success of the MGT IP at AEDC led me to bring it to the huge, complex and global F-15 program.
The F-15 System Program Office (SPO) has responsibility for over $50B in F-15 hardware and software, $2.5B in R&D projects involving over 1000 USAF F-15s and the F-15s of Israel, Saudi Arabia, and Japan.
At the time I took over the F-15 program the McDonnell Douglas F-15E production line was coming to an end and was to be completely shutdown, with no production, for 18 months or more before the new F-15s for Saudi Arabia (72 jets) and for the USAF (18 jets) would begin production. The production line was to drop from over 1500 people to approximately 150. This is normally a disaster for cost and quality for the follow-on jets. Using the MGT IP we took the following steps:
We held a DesignShop that included all the major stakeholders: warfighter, F-15 SPO, Pentagon, McDonnell Douglas, P&WA, Northrop Grumman, Hughes, and others. The main goal was to build an effective and efficient value web for the F-15 program.
Out of this DesignShop came 3 major objectives for the USAF F-15E Tail Number 210 in comparison to the last jet produced before production line shutdown, USAF Number 209:
1. F-15E Tail Number 210 would have a unit cost 10% less, in constant year dollars, than 209.
2. F-15E Tail Number 210 would be at least 1.5 times more reliable, nose to tail, than 209.
3. F-15E Tail Number 210 would be equal to, or greater than, 209 in combat capability. |
The above objectives had never been accomplished before and, in fact, based on all previous history the following results would be expected:
1. Tail Number 210 would be 10% to 20% more expensive than 209, in constant year dollars.
2. Tail Number 210 would have significant quality problems and be of generally lower quality than 209.
3. The combat capability should not be an issue once the quality problems were resolved. |
The DesignShop that produced the F-15E Tail Number 210 objectives, and the follow-on DesignShop sessions, produced the following results:
1. Tail Number 210 was 12% less in constant year dollars than Number 209.
2. Tail Number 210 was over 2 times more reliable, nose to tail than 209.
3. Tail Number 210 was over 1.5 times as combat capable than 209 due to the advantages of incorporating new technologies. |
The MGT IP is responsible for the superb results achieved by the F-15 in transforming how the Government—industry team delivered on the warfighter and taxpayer requirements. Creating collaboration, innovation and alignment among all the stakeholders in the F-15 program was a remarkable accomplishment. The example above is only the most dramatic example of many successes.
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