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NASA Electronic Non-Conformance System 15.567 Economics of InformationNASA Electronic Non-Conformance SystemStrategic and Economic AnalysisMIT StudentsNASA Electronic Non-Conformance System Objective• Study development, implementation, and economic impact of an electronic “Non-Conformance” management system created for the NASA Space Program**specifically the External Fuel Tank for the Space Shuttle15.567 Economics of Information2NASA Electronic Non-Conformance System About NASA - Highlights• 1958: $100m budget, 8,000 employees• Today: $19bn budget, 23,000 employees• Along the way:– 9 human space flight missions– 8 unmanned lunar missions• Focus of Our Study:– NASA facility in Michoud, New Orleans– 833 acre facility, one of the largest production buildings in the country15.567 Economics of Information3NASA Electronic Non-Conformance System The Challenge• Example: Manufacturing Process of the $5m External Fuel Tank for the Space Shuttle15.567 Economics of Information4Customized equipment, machinery and toolsHuman ErrorsMaster PlanQualityInspectionDepartmentTime Constraints EquipmentMalfunctionSafetyAssuranceMaterialReviewBoardDelaysMillions ofPartsSource: NASA Kennedy Space Center.NASA Electronic Non-Conformance System NCD (Non-Conformance Document)• Around 20,000 deviations *“Non-Conformances”+ / tank• Thousands of NCD, ranging from 5-2,000 pages, to manage the review process– Any given NCD must pass througha variety of departments:• Quality• Safety and Product Assurance (S&PA)• Engineering• Floor Supervision• Engineering• NASA Engineering• NASA Safety and Mission Assurance (S&MA)15.567 Economics of Information5NASA Electronic Non-Conformance System Review Process Overview15.567 Economics of Information6Manufacturing Floor ManagerOriginatorManufacturing EngineerEngineering GroupMaterial Review BoardSafety AssuranceFactory WorkerNASA Electronic Non-Conformance System Problem with Paper-Based System• NCDs are hard to replicate and can only be viewed by one person at a time• NCDs may get lost or damaged• Tracking the approval process or where the document isphysically at becomes difficult• Also, segregation of job functionsis reflective of the misalignmentin incentives15.567 Economics of Information7NASA Electronic Non-Conformance System Technology Options Considered• Simple Digital Replication– Simply duplicate the entire paper based process– Not tackle the risk management issues inherent in paper based system15.567 Economics of Information8 Comprehensive Paperless Management Entry System  No enablers such as Java, XML or Wikis available yet Outsource vs. Internal Development: Given the complexity, refinement over time and idiosyncrasies of a paperless NCD system, decision to build in-houseNASA Electronic Non-Conformance System Basis for Selection15.567 Economics of Information9ReliabilityFunctionalityEase of Implementation / Internal AcceptanceSecurityPriceNASA Electronic Non-Conformance System Implementation – What Happened?15.567 Economics of Information102001 ‘022001: PMES first implemented in non-time sensitive area(“beta”)Late 2002: PMES rolled out in 50% of facility, plan to finish all in 12 months‘03 ‘04 ‘05 ‘06 ‘07 ‘08 TodayFeb 2003: Columbia Disaster; production work on tank halted until early 2004Early 2005: back to normal, roughly75% usage of PMESSep 2005 - 2007: Further PMES implementation stopped due to Hurricane KatrinaAugust 2008: PMES rolled out to entire facility, paper NCDs no longer in use1998 …NASA Electronic Non-Conformance System Unexpected Issues• Front line users such as factory workers had no immediate benefit of using the system, and often just printed the electronic NCD to work with a paper copy• Many engineering experts, especially older generations, refused to use the new system because they resented the beta product• Overall the system was non-intuitive because it attempted to directly replicate a paper based system, which caused user confusion early on• Training sessions were conducted but they were sporadic15.567 Economics of Information11NASA Electronic Non-Conformance System PMES Today: A Success?• Despite existing quirks and inefficiencies in the system, the implementation of PMES is universally considered a success, and employees generally prefer it to the paper system• In 2009, management reported that NCDs were processed faster than ever before• By all standard metrics the electronic NCD system is now superior to the paper one15.567 Economics of Information12NASA Electronic Non-Conformance System Lessons Learnt• When moving from paper-based to electronic systems, do not just simply try to replicate the processes• Conduct user research and get feedback to implement a system which takes into account user needs• Create incentives for all parties involved to adopt the new system• Have more effective communication processes• Provide thorough training sessions15.567 Economics of Information13NASA Electronic Non-Conformance System Questions?15.567 Economics of Information14MIT OpenCourseWarehttp://ocw.mit.edu 15.567 The Economics of Information: Strategy, Structure and PricingFall 2010 For information about citing these materials or our Terms of Use, visit:


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MIT 15 567 - NASA Electronic Non-Conformance System

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