# Presentation: 701059

## Engineering Task Force
16 June 2003

- 16 June 2003

- Organization & Services

## Our Mission

**The Design and Fabrication segment of the Engineering Division *****provides technical resource capabilities***** which contribute to the scientific and technical achievement of the Laboratory's research and development programs. **
**The Department is geared to meet the on-location needs of the myriad of scientific groups. The majority of the unique and specialized fabrication design and assembly capabilities at the Berkeley Lab are located within the Building 77 or Building 25 complexes. The facility is *****staffed and equipped to permit the production of novel parts***** and components as well as finished prototypes for complex scientific research equipment.**
** ****The Department is subdivided into *****relevant areas to provide unusual and distinctive***** activities found only in the national laboratory system. Manufacturing as well as precision measurement of requisite subassemblies and assemblies and final inspection of fabricated articles is also housed within the complex.**

## Our Business

**Volume of Work**

- Experimental

- Low

- High

**Degree of Lab Specific Skill Required**

- Commonplace

- QUICK FIX

- PROTOTYPE

- PRODUCTION

- EXPERIMENTAL

**Outsourcing (Commercial Vendors)**

- Jason Garoutte Consulting

**Notes:**
This is generally consistent with Paul Hernandez memo, circulated to ME staff, on make/buy guidelines, except that I want to clarify that Shops should not invest to facilitate SPEED.

## Slide 5

## Highly trained staff
State-of-the-art equipment 
Specialize for the lab science programs
Specialized manufacturing capabilities
Special skills and capabilities
Fabrication facilities to fit the lab culture
Includes local area shops and student shops
Centralized highly qualified fabrication outsourcing service

**State-of-the-art equipment **
**Specialize for the lab science programs**
**Specialized manufacturing capabilities**
**Special skills and capabilities**
**Fabrication facilities to fit the lab culture**
**Includes local area shops and student shops**
**Centralized highly qualified fabrication outsourcing service**

- Attempt to make LBNL The best place to do Science by Providing a competitive advantage to the scientific divisions

## Berkeley Lab Shops

**1 Main Shop (~ 68K sq ft) **
**Ultra High Vacuum Cleaning**
**ceramics machining**
**35 Area shops (>33.5K ft****2****)**
**8 Large =  >2 mills/lathes and full time employees (3-4K sq ft)**
**5 Medium =  >1 mill/lathe and part time employees (500-1500 sq ft)**
**22 Small = One mill/lathe and no full time employees**
**Other Specialty Shops (~ 13K *****ft******2******)***
**photo fabrication**
**optical polishing**
**Vacuum coating**** **
**Vacuum brazing**
**super conducting wiring winding**

## Organizational Changes

**We will change the organization to fit the Lab’s needs**
**Leaner Infrastructure**
**Working Leads**
**Project Planning Group Changes**
**20% Staff Reduction from FY2001-03 **
**Change in type of business **
**Change in required skills **
**General Reduction of Large Projects**

## Laying a Foundation for Change

**A Customer Service Attitude **
**Shop Management Software **
**New Machine Tools **
**CAD/CAM **
**Organizational Changes**
**High Speed Machining**
**Specialty Manufacturing**

## Major Customer Mix - Three Year Ago

**Notes:**
This chart depicts all work performed by the Shops, exclusive of Assembly and only that captured by 01-Track. This likely does not include all work performed.

## Workload vs. Headcount

- Exit DARHT

- Exit SNS

- Capabilities & Strengths

## Shop Management Software

**FY2003**
**Job Scheduling **
**Shop Floor Job Tracking **
**Cost Estimates **
**Early FY2004**
**Integrated QA Software **
**Web Base Tracking for Customers (testing currently**)

## CAD/CAM Software

**Computing Infrastructure**
**Everyone now on E-mail (39 of 80 people added Fall 2001)**
**9 Boxx Technologies Dual 2Ghz PC**
**1 New Dell 1.5Ghz PC **
** ****10 Shop Floor PC with Wireless Networking (500-600 Mhz machine inherited from Engineering)**
**1 Dell Server for JobBoss**
**1 Gigabit Ethernet Sub-net**
**Software Purchased During FY2002 - **
**12 license of SolidWorks**
**10 license of AlphaCAM **
**10 license of Esprit 2002 CAD/CAM **
**1 license of Hyperform HSC **
**5 licenses of SolidView Pro.  **
**20 licenses of Predator DNC **
**4 licenses of Predator Tool Crib  **
**4 licenses of Predator Gauge Crib**

## Building 77 Machine Upgrades 

**OKK VM-7Large CNC Machining Center (30”x30”x60”)**** **

**DMG - Universal Machining Centers**

**Gildemeister 4 axis turning center (26 in swing)**

**Makino KE-55 Manual/CNC Prototype Mills**

**Flow Water Jet Machining Center (2x4 M)**

**Roku-Roku (17x13x8) and Yasda (36x24x18) Precision Mills**

- FY02 & FY03 Budgets & Expenses

## How is the new equipment being paid for? 

**We have paid <$130K on leases the last two years (<1FTE)**
**Includes Rapid Prototype equipment**
**However, the equipment pays for itself: **
**Reduction in Machining Time,  Reduction in Clean-Up Time, Reduction in Floor Space,  Reduction in Scrap Parts**
** ****Reduction in Maintenance Costs - >$200K+ per year**
**The cost of the equipment will ultimately be  <3 FTE's                           < 6% of the cost of doing business overall**** **
**When GPE money is made available we will buy based on priorities set within the Division. **
**Failure to lease equipment means we will not be able to modernize ...**

## CNC vs. Manual Milling Machines

**=**

**=**

**When was the last time you used a Ditto Machine or an IBM Selectric? **
**They get the job done, right? **
**Ever have to type a copy or retype an entire page of a report because of one error?**

**Even for the simplest tasks a CNC machine can offer 10X accuracy and 10X the speed at 4X the capital cost. **_**Quality is priceless.   **_
**Quality of manual machine depends on the operator, quality of a CNC machine depends on the machine.**
**Even if the benefit of speed and improved accuracy only yielded a 2X reduction in time **
**CNC: 1 FTE = $10,400 per month (with pay leave factor of .87) + $1,125 machine payment = ****$11,525 per month**
**Manual: 2 FTE = $20,800 per months + $250 machine payment = ****$21,050 per month**

## D&F Indirect Operating Budgets

## D&F Recharge Operating Budget

- FY 2004 will be based on fixed hourly rate

- Specific Challenges

## Training Opportunities

**Compartmentalized Staff  ... NO back-up**
**Ceramics (Andrew Mei)**
**High Vacuum Welding (Tim Williams)**
**Specialty Sheet metal (Bob Conroy)***
**CMM (Bob Connors)**
**Photofab (Rudy Bartolo)**
**Precision Grinding (Dave Frasier)**
**Precision Machine tool repair (Paul Knopp)**
**Electromechanical tool repair (Mike Casey)***
- * Due to retire 7/03

## “To have outdated machines in the shop, such as decade old mechanical 2-D CAD design software, and electronic test equipment of similar vintage delivers the wrong message.  That message is that LBNL, as an organization, wants their engineers to compete in the larger world using second-rate tools.  I believe the original Star Trek series had Spock once ask, “ you want me to save us using only bear skins and stone knives?”  Our recommendation is that a more aggressive transition to modern tools be pursued.

**“****To have outdated machines in the shop, such as decade old mechanical 2-D CAD design software, and electronic test equipment of similar vintage delivers the wrong message.  That message is that LBNL, as an organization, wants their engineers to compete in the larger world using second-rate tools.  I believe the original **_**Star Trek**_** series had Spock once ask, *****“ you want me to save us using only bear skins and stone knives?”*****  Our recommendation is that a more aggressive transition to modern tools be pursued.**

## Recommendations/ Observations from Directors Review of Engineering Division,, March 8-9, 2000 

... a single central facility.  Put the best equipment in this single place and have a supervisor in charge of managing the workload. 

- ... **a single central facility.  Put the best equipment in this single place and have a supervisor in charge of managing the workload.**

## First-ever Department Retreat Feb 2001

***The fabrication capability at LBNL and other National Labs suffers from ***_***eons***_*** of ***_***stagnation and neglect***_*** ***
***The current capability is ***_***not technologically competitive***_
***The space is ***_***decrepit and poorly utilized***_
***Equipment is woefully out of date ... no it’s ancient. ***
***The CNC equipment that does exist is poor in quality and ***_***does not adequately support the mission of the lab***_***. ***
*** ******The paradigm of categorizing machine tools as capital equipment has ***_***strangled***_*** the labs ability to make improvements.***
***Today’s equipment is like computers ... a maximum lifetime of 3-5 years!***
***Personnel have ***_***not benefited from training***_*** on modern equipment and ******Compartmentalized jobs with no cross training***
***The Problem is Everywhere - ******Precision Machining, Metrology, Sheet Metal Shop, Welding Shop, AND Satellite Shops***
***Today we must outsource most of the difficult fabrication jobs***
***Shop planning and management traditionally  performed by shop personnel (tactical not strategic)***
***Staff not trained to handle 3D CAD files***
***Computing infrastructure and network needs upgrade to handle paperless design and fabrication methodologies***
***and customer service and real time response is non-existant!***

## B-77 Siesmic Retrofit – The Vehicle for Change

**Notes:**
Bullard – Vertical Lathe w/ 72” capacity
10Vs - Vertical milling machine
3,000 RPM max, 30” per side acticle

## A New Look

## Divisional Infrastructure Initiatives 10/2001

**Modernize design methodology **
**Modernize Computer tools - CAD/CAM/CAE**
**Upgrade Workstations and Network **
**Provide technical leadership to process shops**
**Modernize Primary Shops**
**Develop unique fabrication capabilities**
**Consolidate, clean and upgrade space**
**Provide Support for small projects**
**Understand fabrication costs for lab programs**
**Streamline make-buy decision**
**Optimize outsourcing**** **
**Upgrade doc. access and control**

## Implementation 

- Low Hanging Fruit First
**Space**
**Phase 1~ Seismic (Complete ~12/15/01)**
**Phase 2~ MEA (begin 6/04)**
**Infrastructure**
**Network ~ (Complete 3/30/02)**
**Shop floor control SW~ (JobBoss 8/30/02)**
- Leave the Difficult until Last
**Personnel ~ ongoing**
**Training**
**Manufacturing Engineering**
**Finance ~ 6/30/03**

## Moving Forward

**Eliminate non-strategic and cost ineffective shop processes**
**Establish a fair, equitable and competitive shop recharge **
**Vacate building 25 and consolidate into building 77 complex**

## FY2002
Clean Up 
elimination of 18 machines to surplus 
>78 tons of stuff thrown out (4 dump truck loads Sheetmetal and Welding alone!) 
moving of assembly and clean up after building retrofit
Acquisition of Manufacturing Software 
CAD/CAM, DNC Software, and Shop Management/Scheduling Software
Acquisition of Basis CNC Machines
Small to Medium Machine with priority on milling 
Reduction in Maintenance Costs  
FY2003 
Implementation of CAD/CAM and Shop Management Software
Acquisition of Large Milling Machines (OKK - 30x60 VMC)
Specialty Equipment
Waterjet 
Jig Boring CNC 
Wire EDM

**Clean Up **
**elimination of 18 machines to surplus **
**>78 tons of stuff thrown out (4 dump truck loads Sheetmetal and Welding alone!) **
**moving of assembly and clean up after building retrofit**
**Acquisition of Manufacturing Software **
**CAD/CAM, DNC Software, and Shop Management/Scheduling Software**
**Acquisition of Basis CNC Machines**
**Small to Medium Machine with priority on milling **
**Reduction in Maintenance Costs  **
**FY2003 **
**Implementation of CAD/CAM and Shop Management Software**
**Acquisition of Large Milling Machines (OKK - 30x60 VMC)**
**Specialty Equipment**
**Waterjet **
**Jig Boring CNC **
**Wire EDM**

- Progress so far ....

## Lowell Koht , Berkeley
Richard Spellman, Thomas Lambertson, Michael Bebon, Brookhaven
Bruce Affeldt, Paul McKey, Jerry Fordham, Terry Smith, Sandia
"Charles Matthews, Jerry Perterson, Richard Stanek, Fermi
Claude Robison, Robert Mink, Oakridge
Dennis Egan, Mike Hedrick, National Radio Astronomy Observatory
Garith Helm, Hugh Watling, Monika Witte, Livermore
James Sleeth, Argonne 
Jerry Leeches, John Ruminer, Robert Ortiz, Los Alamos
John Bumgardner, Kevin Pfeifer, Pacific Northwest         
Karen Fant, Lowell Klaisner, SLAC
* Dick Nolan, DOE representation 

- Richard Spellman, Thomas Lambertson, Michael Bebon, ***Brookhaven***
- Bruce Affeldt, Paul McKey, Jerry Fordham, Terry Smith, ***Sandia***
- "Charles Matthews, Jerry Perterson, Richard Stanek, ***Fermi***
- Claude Robison, Robert Mink, ***Oakridge***
- Dennis Egan, Mike Hedrick, ***National Radio Astronomy Observatory***
- Garith Helm, Hugh Watling, Monika Witte,*** ******Livermore***
- James Sleeth,** *****Argonne***** **
- Jerry Leeches, John Ruminer, Robert Ortiz, ***Los Alamos***
- John Bumgardner, Kevin Pfeifer, ***Pacific Northwest***
- Karen Fant, Lowell Klaisner, ***SLAC***
- * Dick Nolan, ***DOE representation***

- We Share Problems ... so we formed the National Fabrication Peer Group  (June 2002)

## Rapid Response Review committee findings
Committee Members
Dan Colomb, Peter Denes, Jian Jin, Daryl Oshatz, Marty Pollard, Alex Ratti, Ross Schlueter
Independent Consultant
Interviewed 28 Laboratory employees
19 customers
Eric Anderssen - David Beck - John Boehm - Kevin Bradley - Dan Colomb 
Richard DiGennarro - Rob Duarte - Neal Hartmann - Matt Hoff - Bob Macgill
Daryl Oshatz - Alan Paterson - Soren Prestemon - Joseph Rasson -Carl Rago 
Al Rawlins - Seno Rekawa - Steve Virostek - Russ Wells
9 “Providers”
Bob Conroy - Dan DeBoer - Bill Gath - John Haugrud - Chip Hollister
John Mehren - Guy Pulsifer - Norman Salmon -Tom West 

Shops Task Force 
Joseph Rasson, Russ Wells, Steve Virostek, Rob Duarte

- Committee Members
- Dan Colomb, Peter Denes, Jian Jin, Daryl Oshatz, Marty Pollard, Alex Ratti, Ross Schlueter
- Independent Consultant
- Interviewed 28 Laboratory employees
- 19 customers
- Eric Anderssen - David Beck - John Boehm - Kevin Bradley - Dan Colomb
- Richard DiGennarro - Rob Duarte - Neal Hartmann - Matt Hoff - Bob Macgill
- Daryl Oshatz - Alan Paterson - Soren Prestemon - Joseph Rasson -Carl Rago
- Al Rawlins - Seno Rekawa - Steve Virostek - Russ Wells
- 9 “Providers”
- Bob Conroy - Dan DeBoer - Bill Gath - John Haugrud - Chip Hollister
- John Mehren - Guy Pulsifer - Norman Salmon -Tom West
- Shops Task Force
- Joseph Rasson, Russ Wells, Steve Virostek, Rob Duarte

- And We Have Some Problems ... Peer Review/Customer Feedback in FY 2003

## Charges of these groups

- Rapid Response Committee
- Identify the problems
- Independent Consultant
- Identify the problems
- Suggest changes
- Shops Task Force
- Suggest Operational and Financial changes

## Key Insights from Interviews

**1. Workload: **“The falling water level is showing the rocks.”
**2. Satisfaction:** The customers who trust the shops are the ones who are very hands-on. Those who want “turnkey” service are frustrated.
**3. Make/Buy: **Customers aren’t *that* cost sensitive (+/-20% is fine); they essentially choose whomever they _trust_ most to get the job done in a reasonable time. Where trust exists, it is with individuals, not the shops. Nobody has a clear understanding of the prohibition against competing.
**4. Purpose**: The main shops exist to do work that isn’t profitable.
**5. Recharge**: The mathematics of recharge hurt the shops. Customers don’t understand the need for modern equipment that appears to exceed their needs. Shops are forced to “nickel-and-dime”. Worse, customers generally believe the shops are desperate to attach overhead to any account.
**6. Communication**: There are many stakeholder factions, and the shops are losing the PR war. Customers feel like shop management has been unresponsive to their concerns. Some people in the shop feel the same.
**7. The Future**: Building trust will take time. It is not enough to have the right answers.

## D&F Report Card*

- *Jason Garoutte Consulting

- Goals

## Customer “Bill of Rights”

- 1. Valued Processes
**The shops will engage the science and engineering community on a regular basis to ensure that fabrication and assembly capabilities (either internal or through partner labs) are aligned with customers’ valuable needs.**
- 2. Reliable Delivery
**The shops will provide a reasonably accurate estimate of delivery date based on their best knowledge of anticipated processes. Anticipated delays will be communicated as soon as they arise.**
- 3. Reliable Estimates
**The shops will provide a reasonably accurate estimate based on their best knowledge of anticipated processes. Overruns are a natural consequence of experimental work, but the cost of accidents will be shared equally across hours. Customers will not be charged to the estimate if the work takes less time.**
- 4. High Quality
**As part of estimating, the shops will specify the binding data and identify critical dimensions to monitor. Customers will be alerted to, and given the opportunity to reject, variances on critical dimensions.**
- 5. Collaborative Design
**Shops will accept data in any format with the understanding that re-formatting, if necessary, must be charged to the customer. With experimental work, the shops will contact the customer after checkpoint operations. **
- 6. Rapid Response
**Shops will facilitate iterative, rapid design by providing prompt estimates, delivery dates, and status information. **
- 7. Transparent Billing
**Shops will provide an explanatory itemization of costs as billed to each job number and account number.**

- Jason Garoutte Consulting