P L N 07 B O1 C Mc Ginnis Navsea Lean Six Sigma

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P L N 07 B O1 C Mc Ginnis Navsea Lean Six Sigma

  1. 1. L E A N Continuous Improvement Applying L A l i Lean Six Sigma to Enable Si Si E bl Navy Enterprise Transformation CDR Brian McGinnis NAVSEA 04XP 14 Mar 2007 1
  2. 2. NAVSEA/PEO Organization L E A N New Hampshire Maine NAVSHIPYD PORTSMOUTH SUPSHIP BATH Pennsylvania Submarine Maintenance Engineering, Engineering Planning & Procurement NSWC Ship Systems Engineering Station Indiana Naval Sea Logistics Center Rhode Island Connecticut Washington NSWC CRANE NUWC HQ SUPSHIP GROTON NUWC NEWPORT PUGET SOUND NSY & IMF NUWC KEYPORT New J N Jersey AEGIS Technical Rep Maryland California NSWC CARDEROCK NSWC INDIAN HEAD NSWC CORONA Naval Ordnance Safety & NSWC PORT HUENEME Security Activity 50,000 Gov Personnel Naval Explosive Ordnance Disposal Technology Div Headquarters at WNY Washington DC NAVSEA DIR & PEOs Five Affiliated PEOs NSWC HQ Virginia 30+ Organizations NAVSHIPYD NORFOLK SUPSHIP NEWPORT NEWS NSWC DAHLGREN NSWC Combat Direction Systems Activity Surface Combat Systems Hawaii Center Mississippi SEASPARROW Project Support Office PEARL HARBOR NSY & IMF AEGIS Ballistic Missile SUPSHIP GULF COAST Defense Florida NSWC Coastal Systems Station Naval Experimental Diving Unit South Carolina COMPACFLT Claimancy/ Naval Nuclear Power NAVSEA Tech Mgmt 2 Training Unit As of Sep 05
  3. 3. Navy Ships vs Time L E A N US Navy 40-Year Ship Force Level Actuals from 1979 to 2006 and projected through 2018 (313 Ships by mid-2020s) 700 High of 594 in 1987 N u m b e r o f A c t iv e S h ip s s 600 p 500 Plan is 330 in 2018 400 300 200 Low of 283 today 100 0 0 5 10 15 20 25 30 35 40 45 Year,, 1979 - 2018 3
  4. 4. SECNAV Memo on LSS L E A N Honorable Donald C. Winter memo - 3 May 2006 Subject: Transformation Through Lean Six Sigma Six-Sigma Two Great Tasks: Fight today’s war. g y Position the Force for an uncertain future. The Mission: Create more readiness and assets within Navy budget through Lean Six-Sigma (LSS). Leadership Team: Personally involved. Leadership d l L d hi deployment in mid-June. i id J 4
  5. 5. The Big Five L E A N 1. Drive our behavior with the Enterprises 2. Transform to a Competency Aligned Organization p y g g 3. Measure our output with customer driven metrics 4. y Focus on diversity 5. Document and Improve our processes through Lean Six Sigma ( g (LSS) ) Commander’s Guidance Part III 5
  6. 6. Naval Enterprise Construct L E A N CNO Approved WE MUST EXECUTE 6
  7. 7. Enterprise Productivity L E A N Input $ p Enterprise Processes p Output p nput: $ Spending Base Management Options A B S • A to B = More output, same $ C • A to C = Same output, less $ In Output: Alignment & Cost Control Capability Ready for Tasking COST = Productivity 7
  8. 8. NAVSEA Lean Journey L E A N 2003 Maturing-Growing-Connecting NAVAL SEA SYSTEMS COMMAND Shore Activities New Hampshire Maine NAVSHIPYD PORTSMOUTH SUPSHIP BATH Enterprise Level Pennsylvania Submarine Maintenance Engineering, NSWC Ship Systems Engineering Planning & Procurement Station Indiana Naval Sea Logistics Center Rhode Island Connecticut Washington NSWC CRANE NUWC HQ SUPSHIP GROTON NUWC NEWPORT PUGET SOUND NSY & IMF SUPSHIP PUGET SOUND New Jersey Connect to Navy Value NUWC KEYPORT AEGIS Technical Rep Maryland NSWC CARDEROCK California Streams NSWC INDIAN HEAD SUPSHIP SAN DIEGO Naval Ordnance Safety & Security Activity NSWC CORONA Naval Explosive Ordnance NSWC PORT HUENEME Disposal Technology Div TFL – August 2004 Washington DC NAVSEA HQ & PEOs 100% of the Business NSWC HQ Virginia NAVSHIPYD NORFOLK SUPSHIP PORTSMOUTH Organizational changes in process SUPSHIP NEWPORT NEWS NSWC DAHLGREN Command Level Central NSWC Combat Direction Systems Activity Mississippi Surface Combat Systems Center PEARL HARBOR NSY & IMF SUPSHIP GULF COAST SEASPARROW Project Support Office Coordination 2005 Guide Florida Naval Sea Systems Command (NAVSEA) Naval Shipyard (NAVSHIPYD) SUPSHIP JACKSONVILLE Supervisors of Shipbuilding (SUPSHIP) NSWC Coastal Systems Station Surface Warfare Center (NSWC) South Carolina Naval Experimental Diving Unit Undersea Warfare Center (NUWC) Naval Nuclear Power Other NAVSEA Activities Training Unit Activities Managed by PEOs As of Apr 04 Connected to National NAVAL SEA SYSTEMS COMMAND Shore Activities Value Streams New Hampshire Maine NAVSHIPYD PORTSMOUTH SUPSHIP BATH Pennsylvania Submarine Maintenance Engineering, NSWC Ship Systems Engineering Planning & Procurement Organizational Level Station Indiana Naval Sea Logistics Center Rhode Island Connecticut 30 % of the Business Washington NSWC CRANE NUWC HQ SUPSHIP GROTON PUGET SOUND NSY & IMF NUWC NEWPORT SUPSHIP PUGET SOUND New Jersey NUWC KEYPORT Connected to Local AEGIS Technical Rep Maryland California NSWC CARDEROCK Value Streams SUPSHIP SAN DIEGO NSWC INDIAN HEAD Naval Ordnance Safety & NSWC CORONA Security Activity NSWC PORT HUENEME Naval Explosive Ordnance Disposal Technology Div Washington DC NAVSEA HQ & PEOs 5 % of the Business NSWC HQ Virginia NAVSHIPYD NORFOLK SUPSHIP NEWPORT NEWS Organizational changes in process SUPSHIP PORTSMOUTH NSWC DAHLGREN NSWC Combat Direction Mississippi Systems Activity PEARL HARBOR NSY & IMF Surface Combat Systems SUPSHIP GULF COAST Center SEASPARROW Project Guide Support Office Florida Naval Sea Systems Command (NAVSEA) Naval Shipyard (NAVSHIPYD) SUPSHIP JACKSONVILLE Supervisors of Shipbuilding (SUPSHIP) NSWC Coastal Systems Station Surface Warfare Center (NSWC) South Carolina Naval Experimental Diving Unit Undersea Warfare Center (NUWC) Naval Nuclear Power Other NAVSEA Activities Training Unit Activities Managed by PEOs As of Apr 04 2001-2003 2004-mid 2005 mid 2005-2007 8
  9. 9. Lean Process Chart L E A N Lean Principles* D Executive Planning Session (EPS) Customer/Value Map the Value Stream M Value Stream Analysis (VSA) Create Flow and Pull *From Seek Perfection “Lean Thinking” Lean Thinking by James T. Womack A Rapid Improvement Plan (RIP) Rapid Improvement Events Projects Just Do Its I ( (RIEs) (7 Week cycle) y ) (3-6 months) C Cost Reduction Reports 5S Standard Flow Pull (CRRs) Work W k 9
  10. 10. Lean Deployment Roles L E A N • Owns vision, direction, business results Training • Leads change ALL • Allocates Resources Metrics Executive • Owns Value Streams Leadership • Heads Lean Office Value Stream • Owns Rapid Improvement • Owns Deployment Plan Lean Champion Champions Plan • Owns Communication Plan 1600 • Owns Redeployment Plan • Owns financial results • Captures Metrics • Removes Barriers Master All Employees 5 Black Belts 27,363 Basic Training Team Leaders • Provide data and voice of • Trains Black Belts / Green Belts customer inputs to VSA, RIE, VSA RIE •RI Team or Project RI • Leads Complex Projects and Projects specific support • Full-time position • Apply concepts to their own •Part-time jobs and work areas Team 278 Black Belts Members • RI Team or Project specific • Experts on principles and tools • Leads larger projects Green Belts support • Coaches Green Belts 2133 • Part time • Full-time position • Lead small-moderate projects • Support Rapid Improvement Teams Model taken from “Lean Six-Sigma” • Full time or part time role by Michael George SECNAV Goals: BBs - 1%; GBs - 4%; Champions - 100% O-6/15 & above 10
  11. 11. Lean Six-Sigma College (L6SC) L E A N L e a n Maine Pennsylvania NAVSHIPYD PORTSMOUTH SUPSHIP BATH 3 NSWC Ship Systems Engineering Indiana Station SUBMEPP Rhode Island 3 NAVAL Foundry & Propeller Center East Coast L6SC Site – NSWC CRANE NUWC HQ West Coast L6SC Site – NUWC NEWPORT Washington PUGET SOUND NSY & IMF Connecticut NUWC KEYPORT SUPSHIP GROTON NSWC Port Hueneme CA W California Maryland NSWC CARDEROCK NSWC INDIAN HEAD Norfolk Naval Shipyard SUPSHIP Bath (detachment) NSWC CORONA NSWC PORT HUENEME Washington DC South West Regional Repair NAVSEA HQ PEOs NSWC HQ Virginia NAVSHIPYD NORFOLK • Producing a High Standard NSWC DAHLGREN y Surface Combat Systems Center (Dam Neck) Mid Atlantic Regional Repair of: Hawaii Mississippi SUPSHIP GULF COAST • Black Belts •Validated Curriculum by PEARL HARBOR NSY & IMF Florida Industry Experts (via NSWC Coastal Systems Station • Green Belts (Panama City) Regional Training for Green Belts & Champions USNR) • Champions • Use SMEs from Industry • Integrated Approach: Lean, & Government to enhance Six-Sigma, & Theory of instruction Constraints •Black Belts Prepared to Earn ASQ Certification • Black Belt Training Focused 33 on DMAIC process & aligned •Just in Time Training of with NAVSEA Lean Process Improvement Team Members using • Standardized Core Interactive Simulations Curriculum for all Classes (LRE & others) real projects, real people, real results 11
  12. 12. NAVSEA/PEO Value Stream Network L E A N Sea S t S Systems Lif Cycle - P i Life C l Primary Activities A ti iti Navy After Next Next Navy Current Navy Customers R&D Acquisition MRO In-Service Support WBS Warfare FLEET INTRO O UILD & TEST T MAINTAIN R&D MODERNIZE DISPOSE DESIGN Products CERTIFY Enterprises & Services Subs USE M BU Carriers NAE Program Mgt – Contracts – Legal Business Financial Mgt/Comptroller Ships SWE Research and Systems Engineering IWS WSs NNFE Logistics – Industrial Ops – Corporate Ops Explosive Ordnance Devices (EOD) Ops LMW WSs NECC Non-NAVSEA N NAVSEA End Items Non-Navy Functional/Competency Customers Areas Integrated Supporting Activities Providing Standard Processes Across All Product Lines and Primary Activities 12
  13. 13. NAVSEA/PEOs L6σ IN 5 ENTERPRISES L E A N L6σ Joint/ Projects NAE SWE USE NNFE NECE Other CVN Const/RCOH DDG51 and 1000 VA Class 2-4-12 NMCI C&A SDVs Product Line In-service Support Config Control Sub Maint Avails SPS Efforts Classified Spills Value Streams Maint Avails MSMO / Fleet Into Sub Modern Avails Individual Protection Modern. Avails Small Arms FMS Case Develop Equipment (IDE) Joint Exec Mgt MW Programs VA Class Fly-By-Wire EOD Programs Team Single CS in LCS WSQ-9 System Installs PBL f IWS for SOF U d Undersea M bilit Mobility Missiles, Guns, CSs UUV Work Areas OA Combat UUV Test Beds Competency Systems Processes Funding Documents F di D t Contracting Process Paint/Preservation QA Ship Design Baseline App Strike Force Certification Acquisition T&E SCN Outfitting Config Mgt Ind Ops - Cranes, Material, Resources Admin Support Corp Ops - Support, Manpower Budgets, Payroll Process Engaging High Impact Core Value Streams 13
  14. 14. Continuous Improvement Flow Map L E A N CIR Logic Map Draft 5.igx g p g Execution Enterprise Priorities Plans Outputs Navy Enterprise Leadership Dialogue on g Voice of Inputs to the I t t th Meeting Goals the Enterprises and Objectives Customer Command Goals and Objectives Command Strategic Plan g (Define Outputs) ( f O ) Outputs O t t NAVSEA Corporate Leadership (Strategic) Executive Leadership Council Monthly EPS Review Portfolio of NAVSEA Value Streams Continuous Improvement LSS Plans, Goals, Objectives and Processes Engaged with LSS EPSs / VSAs Reports (CIRs) for Major Value Streams Tactical and Processes Engaged Competency Product Lines Processes Resources Train and Cost Reduction LSS Improvement Events Operational Deploy Experts Reports (CRRs) RIEs, Projects, JDIs (GBs and BBs) (or Equivalent) Closed Loop Continuous Improvement 14
  15. 15. L E A N Aligning to “The Main Thing” FRP & Surge Navy Sea Enterprise / Enterprise Construct NAVSEA Lean Business Strategy Strategy Fleet Readiness Processes Customers Safe, Reliable, and Affordable Naval Ships Right Force NAVSEA Lean and Weapons Systems Right Readiness One SY – Resource & Inf. Sharing – Standard Processes Right Operational Availability Warfare Center Alignment Right Cost Technical Authority Streamlined Business Processes – Seaport-e Seaport e People – Distance Support 21st Century Workforce – Total Force – revitalize workforce, skills mix – training, career path, leadership development Safety - care, well being, work place Model taken from “The Power of Alignment” Recognition – incentives, motivation, satisfaction, value/worth by George Labovitz & Victor Rosansky Culture – Lean thinking, agile, responsive, safety, quality, accountability 15
  16. 16. SY Lean – Creating Alignment : L E A N National Value Stream Management Platform NVS (Tier-One) (Tier- 4 NSYs + Carrier Submarine NVS 2 Private NVS SSN 688 SSBN/SSGN NAVSEA 04X tional NV (Tier-Two) NAVSEA 04X Industrial Process VS (Tier-T NVS– PSNSY Lead ardizing Across Project Management NVS– NSSG Lead A Lifting & Handling NVS NSYs – NNSY Lead (1) Integrating & Aligning Material NVS– (2) Creating Accountability Standa ss/Funct SEA04L Lead Training NVS– NNSY Lead Proces Resource Management NVS– SEA04X Lead Standardizing Across Platforms 16
  17. 17. Key Challenges L E A N Align to Navy Enterprises Respond to their Priorities p Capture and Report Results at Value Stream Level New CIR Process Mature Lean Metrics Maintain Change Pace but Involve more People g p Improve Utilization of GBs and BBs Get RIEs going at Headquarters s go g eadqua te s Improve Industry Partnerships and Projects Communicate Results 17
  18. 18. Key Points L E A N For Major Processes and Value Streams PEOs/PMs for Product Lines Competency Leads for Processes Aligned to Navy Enterprises Monthly Tempo Partnerships Encouraged p g Show Status/Maturity Chartered – Projected – Realized j Cover all Appropriate Metrics Show Total Cost Picture – Puts and Takes 18
  19. 19. L E A N BACKUP 19
  20. 20. CIR L E A N Continuous Improvement Report (CIR) Reporting Organization: _______________ Date: _________________ Competency/PEO: _________________ 1. Value Stream/Process Engaged Value Stream/Process (Title): ____________________________________________________ Description: __________________________________________________________________ POCs: Champion (VSC): __________________ BB/Sensei: _________________________ Dollar Value for Specified Value Stream/Process: (By fiscal year)______________________ 2. Alignment Warfare Enterprise: _________________ Customer(s): _______________________ National VS: ________________________ National VSC: ______________________ Product (WBS): _____________________ Competency Area: ___________________ 3. Status of Lean Events VSA Date: _____________ Pass: (First, Second, etc) Quad Chart Date: (Latest Update) Rapid Improvement Plan (RIP) Projected Comp Date: _______________ RIEs Projects JDIs Number Planned Number Completed 4. Process Changes Description: (Briefly explain changes made to processes)_________________________ How Institutionalized: (Explain changes made to Instructions, Procedures, SOPs)_____ Redeployment: (Number of personnel reassigned to other work or left organization)____ 5. Benefits 20 Describe Benefits: ________________________________________________________
  21. 21. CIR (Continued) L E A N Metrics Table: Provide table of key metrics showing performance before and after continuous improvement transformation efforts, such as following: (Note: These are example metrics - Actual metrics should align to Navy Enterprises) Output Metric Before After Percent Change Safety Quality Schedule (On Time Delivery) Cycle Time Cost Productivity Inventory 6. Cost Benefit Analysis For each Warfare Enterprise/Customer, identify fiscal year and following info: Type of Cost Benefit: _______ (1) Actual cost reduction to customer budget (2) Potential cost reduction from reducing cycle time (3) Cost avoidance / Intangible benefits to customer Investment Costs: _________________________________________________________ Other Costs: ______________________________________________________________ Projected Cost Reduction: __________________________________________________ Projected Net Cost Reduction: _______________________________________________ Status: _____________ (1) Chartered - Forecast based on planned work (2) Projected - Accurate estimate based on Lean work (3) Validated - Confirmed by financial representative (4) Realized - Actual cost returns based on completed Lean work Actual Realized Cost Reduction when Complete: ______________________________ (Define total cost reduction and basis - specify in terms of $ per unit output where possible) Projected Validated Cost Reduction over FYDP: (Based on historical data and workload projections - state assumptions) Enterprise Value Stream FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 7. Risk Analysis: Traditional risk cube - Probability of success vs Impact of event 21 8. Comments:
  22. 22. L E A N Examples of Value Stream Transformations Naval Shipyards – Puget Tank Work, TGI Flow Warfare C W f Centers – CAD/PAD T CAD/PAD, Torpedoes, C d Crane examples l Projects with Industry Partners Headquarters – S H d t Several E l Examples l 22
  23. 23. Good News Story - Lean in Action L E A N USS ABRAHAM LINCOLN TANK VALUE STREAM TEAM at PSNS & IMF Best output before Lean: 10 tanks in 6 month drydock period Output in LINCOLN after Lean: 18 tanks in 3.5 month drydock period 210% improvement in throughput 23
  24. 24. PNSY – SSN 720 EOH – TGI Flow L E A N Multiple Value Streams Boeing Moving Line B i M i Li SSN 720 TGI Fl Flow Fundamental Change in Ship Availability Management 24
  25. 25. NSWC Indian Head: CAD/PAD L E A N Lean Transformation Journey CAD Lean Manufacturing Cells Lean manufacturing cells were set up with in-line digital X-ray equipment. eq ipment Digital X-ray equipment alleviate 16 miles of transportation from the process. Manufacturing cells have demonstrated 60-90% cycle time reductions and 46% labor reductions for this portion of the Before After process. CY 2003 CY 2005 Lean Modular Workholding System Lean Miniaturization and Mobility 25
  26. 26. NUWC Newport - Torpedo Enterprise L E A N MK 54 Torpedo Value Stream Value Stream Participants • Acquisition cost of Mk 54 torpedoes was limiting the Navy's ability to procure sufficient q quantities. This directly impacted the Fleet by y p y requiring the continued use of older, less capable weapons systems to meet Non Nuclear Ordnance Requirements. KEYPORT • The procurement profile of MK 54 Torpedo is Status expected to increase by ~ a factor of 4 from d i b f f f • VSA Conducted 23-26 January 2005 FY05 to FY09. • Proofing Spec Review conducted on 23 Feb 2005 • Fence Posts - NAVSEA/PMS 404 contract award • Failure Analysis Value Stream Conducted 8-9 March 2005 to Ready for Issue Torpedo in the bunker • Additional Heavyweight Torpedo VSAs applicable to MK 54 Metrics/Benefits Future F t Acquisition and Failure Analysis Rapid Improvement Plans • 2nd pass VSA tentatively scheduled for 7-11 August 2006 8 Rapid Improvement Events FY05 – FY11 Production 19 Projects in excess of 1300 weapons 26 Do its Mk54 Value Stream attacks both Warfare Goals Center and Contractor Costs 49% Govt labor reduction 30% Cycle Time Reduction 30% Unit Cost Reduction 26
  27. 27. CONTINUOUS IMPROVEMENT L E A N SECTION 3: Maximizing Value - Effectiveness Electro-Optics T h l El t O ti Technology History: NSWC - Crane Division’s Electro-Optic Technology Division provides Project Description: This quad chart details the actions of four dedicated week-long Electro-Optic (EO) and Infrared hardware and engineering and sustainment services RITs, and Lean thinking over the course of four fiscal years starting in June 2003. for NAVSEA/PEOs, NAVAIR, and Naval Special Warfare in support of the Global Project Impact: The group has successfully implemented the Continuous War on Terrorism (GWOT) and Homeland Security. Continuous Improvement is Improvement methodologies to improve their schedule performance at a time of paramount in assuring the Warfighter receives thousands of imaging and aiming increasing customer demand. This group is the first Model Cell in the Electro-Optic i i d d Thi i h fi M d l C ll i h El O i devices each year in order to support their mission as efficiently and effectively as Technology Division. The most previous dedicated event established a complete possible. first-in-first-out mixed model cell in this area. One particular group of the Electro-Optic Technology Division, the Image POC: Bradley Secrest 812 854-5943/ CAPT Mark Welsh 812 854-1210 Intensification (I2) group, have been the Continuous Improvement leaders within this Lean Facilitators: F. Todd Knepp ASQ/DoN BB 812 854-5008, Sharon division. This group Provides Test & Evaluation and repair of man-portable (VAS) Hemmerlien BB, CDR Pat Shaffer GB. “Visual Augmentation Systems” such as Day/Night Optics, Thermal Imagers, Image Intensifiers, Cameras, and Image Fusion devices. Metrics/Benefits: Cost & Benefits: Investment Cost: Team Labor $108,772 Baseline Actual Actual % Metrics (FY2002) (FY2006) Change Material $ 14,629 Total Investment $123,401 Turn-Around-Time (days) 75.2 10.1 86.6% Quality (QA FPY) 85% 96% 11% Cost Avoidances: Additional Labor* $782,431 Productivity (assets/FTE) 903.8 1554.3 60.9% Equipment $ 91,000 91 000 Total Benefits $873,431 ROI: 7:1 TAT Standard Deviation (days) 109.9 20.0 81.8% Customer Demand (assets per year) 5875 8362 42% *Additional Labor Cost Avoidance: Includes cumulative labor avoidances of 0 4 FTE in FY03 0.8 FTE in FY04 1.6 FTE in FY05 and 3.5 FTE in FY06. 0.4 FY03, 0 8 FY04, 1 6 35 FY06 Status as of: 11/29/2006 27
  28. 28. CONTINUOUS IMPROVEMENT L E A N SECTION 3: Maximizing Value - Effectiveness S D dE n - C d 80 elf irecte ve elfD dE ts o e 23 e80 SELF DIRECTED WORK TEAM Sm a u m ry 802 Mixed Model Receiver Supercell RIT Summary RECEIVER SUPER CELL 3/01/07 September 14, 2006 1st Planned Effort Date N e am M asurem e ent Start End Improvement Results Reduced TAT by 49% (3 195 minutes to 1,556 minutes) (3,195 1 556 8/8/06 CalibratedE alibratedEquipment S reequipm reduction 169units pa equipm re entreduction 169units ent 105units 105units 62% Reduced WIP by 63% (122 units to 45 units) CalibrationCost 57k 36K 63% S eS torag pace 210cuft 73cuft 50% 2nd Planned Effort Results Reduced TAT by 21% (57 days to 45.5 days) 1 /06 A -81S ver 0/23 LR tepsa ReduceT tim ravel e 12,000ste 3375steps ps 72% Reduced CT by 9% (45.2 hrs to 40.7 hrs) Reduced Floor Space by 52% (1,470 sq ft to 717 sq ft) p y ( , q q ) 2/8/07 A C /D onverter W R IP eduction 172units 55units 68% 3rd Planned Effort W AT T R A 78days 30days 61% Results S AT T R A 121days 30days 75% Reduced WIP by 60% (23 units to 12 units (wras)) 3/2/07 A S R R pair team P -130 adar e W R IP eduction 90units 33units 63% T Treduction A reduction T 17days 17days 14days 14days 17% Lean is an attitude. It must be communicated to your employees. It is critical that a link to the LSS BB DMAIC Project burning platform is evident. Use the lean tools; make them a part of your day to day work life. That is what has happened in the 80232 & 80233 labs. Experience and training are critical elements. The • Right SRA parts available to goal is to have the “work cell” leaders participate in greenbelt training. Everyone functions via visual complete WRA management. Employees update the production control boards. Managers monitor the production control boards. If an issue exists it is addressed immediately. Employees have a sense of • Reduce repair cost empowerment. There is a great sense of pride by the employees. They are able to set and achieve t Th i t f id b th l Th bl t t d hi realistic goals. Sustainment through teamwork is critical. Success is managers and employees • Reduces TAT working together to improve the process. The team have executed 4 self directed teams. The key elements of a successful self directed work team event are pre-event planning and knowing the tools • No work stoppage due to lack of lean and how to use them. Pre-events maximize team involvement. There are tangible and intangible benefits to continuous improvement. Tangible benefits have proven to be reduced TAT of parts and WIP. Intangible benefits include: increased & better communication by forming a cell structure, teaming between employees and management is evident resulting issues being resolved at the lowest • Eliminating cost of maintaining level. excess inventory storage • Units available to meet customer demand levels 28
  29. 29. L E A N Projects with Industry Partners PEO Carriers with Northrop Grumman Newport News ( (NGNN) and SUPSHIP Newport News; Black Belt ) p ; support by VPMEP. CVN 77 Change Control GFE/GFI Processes Logistics Processes PEO Subs with General Dynamics Electric Boat, Northrop Grumman Newport News, SUPSHIP Groton, and SUPSHIP Newport News; Black Belt support by TFL. Align all submarine construction industry Lean Six Sigma work and achieve construction of two VA class submarines per year for total of $4.0B ($2.0B each in FY 05 dollars) by FY 2012. 29
  30. 30. PEO Ships L E A N PEO SHIPS CONTINUOUS PROCESS IMPROVEMENTS DDG-51: THROUGH IMPLEMENTATION OF NUMEROUS LEAN INITIATIVES IN CONJUNCTION WITH PRODUCTION PROCESS IMPROVEMENTS, GENERAL DYNAMICS IMPROVEMENTS HAS REDUCED THE TOTAL LABOR HOURS REQUIRED TO CONSTRUCT DDGs BY OVER 950,000 HOURS OVER THE LAST THREE SHIPS DELIVERED TO THE NAVY. DDG-1000: COST REDUCTION INITIATIVE. SAVINGS GOALS: $267M – LEAD SHIP $213M – FOLLOW AFFORDABILITY CONSIDERATIONS ESTABLISH AFFORDABILITY TARGETS FOR END ITEM AND PERMIT CAPABILITY TRADES DESIGNING FOR PRODUCIBILITY DESIGNING FOR LIFECYCLE OPTIMIZATION A STABLE SHIPBUILDING PLAN, COUPLED WITH ONE OR MORE AFFORDABILITY STRATEGIES, PLUS A FOCUSED INDUSTRY PUSH O S G S, US OCUS N US US FOR COST REDUCTION YIELDS AFFORDABLE PLATFORMS. 30
  31. 31. Multi-Ship Multi-Option (MSMO) Contract L E A N Solicitation Process VSA Project Description: By eliminating unnecessary waste Status: VSA conducted in May 05 •CPARS are being addressed as part of the Award Fee Evaluation Board and improving our process critical steps the MSMO Lean process. Team hopes to be able to solicit and award MSMO •PEO-SHIPS working with the RMCs to standardize the CPARS and AFEB Contracts in the most efficient manner possible with a high Processes. Processes degree of quality and adherence to all applicable legal and •Industrial Base concerns are being addressed & re-evaluated with each new procurement. regulatory standards. •RMCs are reviewing their process for developing government estimates. Project Impact: Eliminate unnecessary waste and •SEA02 has conducted an independent VSA to address contracting issues improving critical process steps. Improved cycle time. as a whole. 8 of 8 Do Its have been completed Value Stream Champion: Rich Chiappane 4 of 4 RIE goals have been completed 8 of 8 Projects have been completed Metrics/Benefits: M i /B fi Cost d C and Benefits: Value Stream Data Name Current Stae MSMO Contract Process Future State MSMO Contract Process •Team Cost: $20,000. Demand 5 5 Work in Process Takt Time 49 Days 7 44 Days 5 •Benefits: Total Flow Time Value Added Time 333 Days y 11.75 Days 115 Days 12 Days y • Process time reduced from 333 to 230 days Non Value Added Touch Time 159.75 Days (30% reduction) Wait Time 161 Days The image cannot be display ed. Your computer may not Rolling First Pass Yield 0% hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and •As of Feb 07, 13 of 21 MSMO Contracts planned then open the file again. If the red x still appears, y ou may hav e to delete the image Process cycle efficiency 3% >10% and then insert it again. Hand-offs >40 Documents 30 have been awarded with the balance on Reviews # of Signatures >30 >60 schedule to be awarded by Jan 09 31
  32. 32. Value Stream Analysis Activity to Date L E A N ILS Certification Process VSA Project Description: Review FMP ILS Certification Process in Status: support of configuration changes i t ll d on PEO SHIPS PEO t f fi ti h installed SHIPS, •Initial VSA conducted in Oct 05 I iti l d t di O t CARRIERS and PEO SUBS platforms, analyze the current state and •Follow-up tiger team meetings have continued as required develop a future state, in which a single, efficient, FMP ILS certification process meeting all the needs of the customer. to work through issues Project Impact: Ship Program Managers will receive benefits in terms • 4 Do Its planned of reduced time to achieve ILS certifications for changes planned • 1 RIEs planned installations both inside and out of availabilities and associated cost • 5 Projects planned avoidance. The fleet will benefit by receiving timely integrated logistics support for these changes. Value Steam Champion: Bob Stout/Stephanie Blaine Lean Coordinator: Phil Schneider Metrics/Benefits: Cost and Benefits: Current State Future State •Team Cost: $15,000. Carriers Surface Subs Carriers Surface Subs Demand pe 26 23 23 26 23 23 •Benefits:PMs, PARMs and TYCOMs will receive benefits Flow Time 18.5 5.0 18.0 2 1 6 of reduced time to achieve ILS certifications for changes planned Touch Time 5.0 4.8 20.0 3.5 4 12 For availabilities and associated cost avoidance. The fleet will Passes 18 6 10 6 6 6 benefit by receiving timely delivery of complete, integrated logistics support for these changes Green Dots 6 5 3 6 2 3 Red Dots 10 17 2 2 4 2 Total 16 22 5 8 6 5 NVA% 63% 77% 40% 25% 67% 40% VA % 38% 23% 60% 75% 33% 60% 32
  33. 33. Fleet Introduction - PEO Ships L E A N Project Description & Expected Outcome: Status: Analyze Fleet Introduction as conducted within PEO Event type: VSA completed 14 June 2006 Ships addressing manpower planning, crew phasing plans, pre-commissioning, commissioning, training, Future Events: Date: and Outfitting processes. d O fi i •CSPP Aligned w/ HCO Mapping (RIE) Sep 07 Goal: Savings and service improvements through •Standard PEO Ships Process Instr (JDI) Mar 07 streamlining and standardizing, better sharing of •Simplified Inventory Procedures (RIE) Deferred resources, and eliminating non-value added steps. •Common IT Structure for PreCom(Proj) Oct 06 •2ND P VSA 2ND Pass May07 M 07 Value Stream Champion: CDR James F. Buckley III Metrics / Benefits: Cost and Benefits: Metric/Benefit Current Future Comments Team Cost = $ $15,000 Ongoing: LPD17, DDG51, LHD class Projected Cost Reductions: FLOW TIME (Cum Days) 8549 8148 5% Current State* = $ $8-10M/yry TOUCH TIME (HRS) 62016 59405 4% Future State* = $7.5-9.4M/yr Future: DDG 1000 and LCS Reduction* = $0.5-0.6M/yr FLOW TIME (Cum Days) 3322 3086 7% TOUCH TIME (HRS) 5503 5042 8% * Average combined total of all classes thru FYDP 33
  34. 34. SMALL ARMS EXAMPLE L E A N PEO LMW – NSWC Crane Value Stream Status Repair vs. Refurbishment of Individual Weapons. • JDIs completed • Old way of Business (Refurbishment) : Weapons would be • Model 727 5.56mm Carbine Apr 2005 p shipped back to NSWC Crane and be completely • M16A3 5.56mm Rifle May 2005 overhauled. NSWC would replace all parts on a weapon • 12 Gauge Shotgun July 2005 except for the Lower Receiver with brand new parts and the • M11 9mm Pistol Sept 2005 weapon then returned to the inventory. • M9 9mm Pistol Oct 2005 • New Way of Business (Repair): Weapons are shipped back • M203 40mm Launcher Nov 2005 to NSWC Crane where they are completely screened for damaged parts. These parts are replaced with new parts and the weapon is returned to the inventory. Metrics/Benefits Cost Benefit Result of new business model (Repair vice Refurbishment • Total saved since inception of new business model $7,657.515. of Individual Weapons) April 05 thru Oct 06 (18 months). • Type of Cost Benefit: (1) Actual cost reduction to customer SAVED SAVED SAVED FY07 UNIT FY07 TOTAL budget. g FY05 FY06 K$PREV K$ REP SAVINGS TO DATE SAVINGS - Pistol, M9 K$ 0 2916 2916 4099 $394 $1,615,006$4,531,006 • Projected Validated Cost Reduction over FYDP: (Based on - Pistol, M11 28 173 201 42 $320 $13,440 $214,440 - Rifle, M16A3 165 900 1065 0 $497 $1,065,082 historical data and workload projections - state assumptions) - Launcher, M203 0 59 5 142 $459 $65,178 $124,178 - Carbine, 727/M4 380 638 1018 1197 9 $269 $321,993 $1,339,993 - Shotgun, 500A1 60 256 316 384 $174 $66,816 $382,816 Enterprise FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 SWE $5.0M $4.1M $0M $0M $0M $0M 34 2/27/2007
  35. 35. Milestone Acquisition Documentation Kaizen L E A N Charter PEO LMW Approach/Status Description: Develop proposed MS documentation • 5 Milestone Packages, NAVAIR input, process plans for MRUUVS and OASIS to reflect a 50% non- performer input as data set value added document reduction with supporting • U d standard current state, waste analysis, Used t d d t t t t l i rationale. countermeasure, future state, and Standard Work lean techniques. Expected Outcome: Submit plan to MDA for • Developed tailored document list, value stream, data approval. environment, standard work and measurement plan for Team: P T Process performers, stakeholders, customers f t k h ld t MRUUVS program to pilot the improved process (combined experience in 10 Milestones, and • Plan submitted to ASN who provided guidance that included 5 Lean Six Sigma Greenbelts). Total of 17 would enable partial efficiencies for ACAT I,II. Greater people. Efficiencies achievable for ACAT III, IV. Results Summary • Documentation reqt’s have doubled over the past 8 years. • Kaizen recommends 17 of 36 for MRUUV • U f t t il i and stakeholder buy in will provide Upfront tailoring d t k h ld b i ill id value by reducing document number and volume • Improves quality, focus, use of scarce resources • Risk with tailoring is low. • Results consistent with NAVAIR JSOTs review • A goal of 50% reduction is achievable for ACAT III, IV programs. 35

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