The foundation of our L/6 transformation is a trained workforce who can identify the opportunities for improvement and who can use the analytical tools to answer those challenges. Our vision is to not to drive individual projects but, rather, to create a climate where L/6 is a way of life. ARDEC (in partnership with our PEO customers) is undergoing an extensive training initiative, with the ultimate goal being 100% Center awareness and understanding of the tenants of L/6 . To date, the exact training goal (types, percentages, etc.) is still under consideration. However, while the end state is still fluid the journey has begun, with 27.4% of the workforce receiving formal (Green Belt) training and more than 14% of those continuing on to higher-level (Black Belt) training. Furthermore, ARDEC has 6 Master Black Belts who act as subject matter experts and who will help shape the Center’s long-term L/6 strategy.
Though still relatively early in our journey (only 25% of the workforce receiving formal training), Picatinny has already reaped significant benefits from L/6 . To date, Picatinny has identified over $2.66B in life cycle savings/avoidance to the Army. But even looking at our success through a skeptical eye, Picatinny still has recognized approx. $67M in Value Engineering returns (scored by our independent Value Engineering Office) from its $3M training investment … a better than 20:1 ROI! And this represents only a small portion of Picatinny’s L/6 projects. The measure of L/6 success is the Q$SR model that mandates positive returns in the areas of Quality (customer satisfaction), Cost, Schedule and/ or Risk. As can be seen by the data provided, Picatinny has done a fine job impacting on all these issues, with many projects satisfying multiple requirements. It is also worth note that while we are an RD&E Center, we have identified savings in all aspects of the acquisition life cycle, including improving internal management and administrative processes.
Infrastructure: builds the foundation for success.
The next few slides describe several Lean and Six Sigma success stories. It is important to note that this is only a small sampling and, as previously stated, each project has provided tangible quality, cost, schedule and risk benefits to the Army. PAX-2a Production : Upon small scale analysis, it was found that the Picatinny Arsenal Explosive (PAX) –2A type II could not be manufactured in a cost effective manner using the current process. Through Process Mapping, FMEA and Design of Experiments, the process redesign increased yield from 70% for the current process to near 100% for the faster process providing significant cost savings impacting Artillery and Rocket systems. This savings will require a switch in supplier and will be implemented at the next buy.
Artillery Ammunition Digital X-ray Equipment : Reduced qualification cycle time for Projectile High Explosive Nondestructive Inspection Equipment X-ray System (PHENIXS). Use of the DMAIC process identified process inefficiencies and risk areas allowing for a 33% reduction in qualification time. M734A1 Mortar Fuze Production : A 5% scrap rate for the fuze’s electronic assembly was resulting in related losses of approx. $50K/month. Using Six Sigma protocols, the failure was determined to be due to cracking capacitors caused by mechanical & thermal stresses in the manufacturing process. Re-orientation of the capacitor solved the problem, without increasing unit cost. 120mm Mortar Fin Malfunction Investigation : A preliminary investigation into short 120mm mortar rounds indicated the cause as fin blade shear. Using Six Sigma protocols, high Ignition Cartridge pressure was identified as the root cause and subsequent redesign resulted in saving a $200M stockpile.
Lean/Six Sigma has also been used to improve Administrative processes. IM Waiver Process : The waiver approval process was not standardized, often causing program delays including impacts upon Materiel Release. Through the use of such tools as a Process Map and FMEA (Failure Mode & Effects Analysis) a pamphlet was created to provide a clear, structured, repeatable process.
As I conclude my presentation, I would ask that you come away from this brief with some significant points: A New Army Thrust is Requiring Program Managers to take a more aggressive approach to life cycle costs. Given the years of “Bloated Bureaucracy”, there are plenty of opportunities throughout the Army’s materiel acquisition process to improve efficiency and effectiveness. The Army has committed to Lean and Six Sigma and has already shown positive Return-on-Investment. And, Lean and Six Sigma savings serve not only the acquisition community and the field commanders, but help to create a better, faster Army at reasonable cost to the taxpayer. Once again, let me express my thanks to the ASQ and the conference committee for their invitation and I look forward to the question & answer period that follows.
U.S. ARMY ARMAMENT RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (ARDEC) LEAN/SIX-SIGMA 20 September 2005 Presented to 32 nd National Energy & Environmental Conference PAUL E. CHIODO Director, Quality Engineering & System Assurance, RDECOM-ARDEC Chair, AMC Quality Federation Certified Lean/Six Sigma Master Black Belt
Q : Quality/Customer Satisfaction (91% of Projects)
$ : Cost (70% of Projects)
S : Schedule (67% of Projects)
R : Risk (84% of Projects)
Improvement Projects in:
Figures in $M Training Costs VE Validated Savings Estimated Life-Cycle Avoidance 67.3 3 2,660
ARDEC L/6 Timeline Six-Sigma Initiated by PM CAS Leadership Transitioned to ARDEC First Certification C erem ony Industry Benchmark Studies First Integrated Lean/Six-Sigma Course JUL 2000 APR 2001 JAN 2006+ ARDEC Enterprise Excellence SM Plan Complete AUG 2001 JUN 2002 May 2003 OCT 2002 Phase I – Launch & Management Buy-In JUN 2004 APR 2005 GB Training to In-house L/6 Office Established 3 rd Ceremony, 500 th person trained to date at ARDEC Phase II – Full Scale Deployment Phase III – Self Sustain for Continuous Improvement
Operation Levels ARDEC L/6 Board Executive Champions Black Belts Green Belts Team Members Master Black Belts/L6 Comp Office
Discipline Adaptability Speed Label signifies Executive Black Belt (EBB) Projects that impact ARDEC Processes VOC EE EE EE EE EE EE EE EE EE EE EE EE EE CI CI CI CI CI CI CI DT RB RB RB DT TT TT TT RP RP RP Customer Integration Rapid Battle-types Disruptive Technology Technology Transfer Resource Planning Enterprise Excellence EBB Projects EE CI RB DT TT RP CI CI CI CI CI CI
Improve the yield of PAX-2A Manufacture at Lab-Scale by developing an alternate mix process that meets high-speed LAP requirements.
Type Management Business Production Engineering X R isk S chedule Production yield potential of 100%, up from the original mix process less than 30%. This paves the way for Large-Scale production of PAX-2A. Benefited from other Q$SR areas Benefited from other Q$SR areas Alternate slurry mix process developed that meets minimum bulk density requirements of 0.85 g/cc Co $ t Q uality or Customer Satisfaction
Combined the two existing PALT processes into one streamlined (Alpha) process for XM982.
Type Management Business X Production Engineering R isk S chedule Significant risk reduction in meeting DA directed milestones for the XM982 program. The reduced PALT time eliminates a high risk factor in the program. Combined the quasi-concurrent 24-month Army PALT and the 24-month International PALT processes into a single 11 month Alpha contracting effort. Cost avoidance of $12 M, based on a minimum saved effort of four months. VE Validated Savings: $8.9 M PM-CAS (sponsor) ecstatic in that existing schedules were high risk in meeting DA requirements. Co $ t Q uality or Customer Satisfaction
The E 2 Framework QMS VoC 6 Lean Culture Efficiency Effectiveness Reqm’ts Concepts from paper by VSE Corp.
Why Change to “Lean/Six-Sigma Way of Doing Business”?
ARDEC Reorganization led to Transformation from a Traditional Product-Driven Structure to an Integrated ‘Continuous Measurable Improvement’ Process-Driven Way of Doing Business
Positive Impact Obtaining Faster, More Comprehensive, Fact Based Solutions in support of GWOT, OIF, OEF
Need to Promote Enterprise Excellence (QMS, L/6 , VOC)
A disciplined , structured approach for process and product optimization that is focused on the effectiveness' and efficiency bottom line of the organization