Enterprise Transformation through Lean Six Sigma Deployment

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Enterprise Transformation through Lean Six Sigma Deployment

  1. 1. Enterprise Transformation through Lean Six Sigma Deployment VADM Wally Massenburg, USN (Ret) 1 May 2008 F404 Case Study – A Journey of Discovery
  2. 2. Requirements/Risk Assessment CEO CHIEF EXECUTIVE OFFICER Providers COO CHIEF OPERATING OFFICER Sponsors CFO CHIEF FINANCIAL OFFICER NAVAL AVIATION ENTERPRISE RIGHT FORCE . . . RIGHT READINESS . . . RIGHT TIME . . . RIGHT COST . . .
  3. 3. OPERATING AS AN ENTERPRISE <ul><li>SINGLE PROCESS OWNER </li></ul><ul><li>SINGLE FLEET-DRIVEN METRIC: AIRCRAFT UNITS READY FOR TASKING AT REDUCED COST (CONTINUES TO MATURE) </li></ul><ul><li>VALUES – WHAT WE BELIEVE </li></ul><ul><ul><li>FLEET READINESS </li></ul></ul><ul><ul><li>“ COST-WISE” (LESS $’S) </li></ul></ul><ul><ul><li>TIME ON WING (LESS STUFF) </li></ul></ul><ul><ul><li>SPEED (LESS TIME IN MAINTENANCE) </li></ul></ul><ul><ul><li>PEOPLE (CONTINUOUS IMPROVEMENT) </li></ul></ul><ul><li>THREE MAIN FOCUS AREAS: </li></ul><ul><ul><li>READINESS: TODAY, TOMORROW, AND FUTURE </li></ul></ul><ul><ul><li>TOTAL FORCE READINESS (PEOPLE DIMENSION) </li></ul></ul><ul><ul><li>COST MANAGEMENT </li></ul></ul>
  4. 4. THE INSPIRATION # AIRCRAFT Where did the money go?
  5. 5. Basis for Process Improvement – Lean Six Sigma
  6. 6. F404 I-Level Consolidation Metrics
  7. 7. F404 I-Level Consolidation Over-Arching Benefits <ul><li>Eliminates I-1 training requirements </li></ul><ul><li>Aligns sea & shore duty billet skill sets (I-3 repairs mirrored at sea & ashore) </li></ul><ul><li>Utilizes manpower more efficiently with civilian workforce </li></ul><ul><li>Creates local permanent resident experts with civilian workforce </li></ul><ul><li>Eliminates high turnover of mechanics </li></ul><ul><ul><li>Reduces lost time due to inexperience </li></ul></ul><ul><ul><li>Reduces infant mortality removals (TOW) </li></ul></ul><ul><ul><li>Reduces production assembly variances </li></ul></ul><ul><li>Increases projected reliability </li></ul><ul><ul><li>Historically depot produced engines consistently had higher TOW than I-level sites </li></ul></ul><ul><ul><ul><li>Depot MEFHBR 502 EFH FY00-05 </li></ul></ul></ul><ul><ul><ul><li>Five major I-1 activities MEFHBR 398 EFH FY00-05 </li></ul></ul></ul><ul><ul><li>All options support CNO’s military manpower reduction goals </li></ul></ul>
  8. 9. FLEET-WIDE VISIBILITY READINESS FLIGHT HOUR PROGRAM
  9. 10. OVERARCHING READINESS AND SUSTAINMENT CONCEPT <ul><li>Balance Capability and Availability @ Reduced Cost </li></ul><ul><li>(Fleet Driven Metric) </li></ul><ul><li>Supporting Metrics </li></ul><ul><ul><li>Inventory (People and Stuff) </li></ul></ul><ul><ul><li>Reliability </li></ul></ul><ul><ul><li>Cycle Time Reduction </li></ul></ul><ul><ul><li>$$ Total Cost (All Financial Stovepipes) </li></ul></ul><ul><li>10 Integrated Logistics Support Elements </li></ul><ul><li>(Where all the cost is borne) </li></ul>

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