NAVSEA Lean Transforming the Way We Work Presented by Mr. Jim Brice SEA TFL 18 Nov 2005
NAVSEA Lean Journey Organizational Level Connected to Local Value Streams 5 % of the Business 2001-2003 2004-mid 2005 mid ...
NAVSEA Lean Journey Organizational Level Connected to Local Value Streams 5 % of the Business TFL – August 2004 Command Le...
NAVSEA Lean Journey Organizational Level Connected to Local Value Streams 5 % of the Business TFL – August 2004 Command Le...
Task Force Lean (TFL) <ul><li>Implementing Lean Six Sigma across the Diverse NAVSEA/PEO Enterprise – 30 Organizations </li...
Lean – The Business Strategy NAVSEA Lean Improving the Business -  Lean/Six Sigma/TOC -  Rapid Improvement -  Improve Agil...
Lean Process Chart Executive Planning Session (EPS) Value Stream Analysis (VSA) Rapid Improvement Plan (RIP) Rapid Improve...
HWT Torpedo Lean Cost Reduction
NAVSEA/PEO EPS <ul><li>Goal </li></ul><ul><ul><li>Reduce Costs by $250M in FY 07 </li></ul></ul><ul><ul><li>Across all of ...
Establishes Formal, Disciplined, Standard Process for Change Strong Alignment and Support
Major Value Streams <ul><li>Technical Operations </li></ul><ul><ul><li>AEGIS, SSDS, ACDS, Small Arms, Mk125 Ordnance, Rang...
The Lean Deployment Model Vs Actual CRRs - Lean CRRs - Other Implementation Plan Model Number of RIEs & Projects (Actual) ...
All Employees <ul><ul><li>Provide data and voice of customer inputs to VSA, RIE, and Projects </li></ul></ul><ul><ul><li>A...
Black Belt Graduating Class BB Trained & Practicing  100 BB in Training    59 Total by end of FY 05  159
Continuous Learning Army Material Command -  Lean Focus -  Master Sensei GE Presentation -  Everything is a Process -  Q x...
Employee Participation <ul><li>Power of Lean Approach – Drives the Culture Change </li></ul><ul><ul><li>Teams of People Wh...
SUBMARINE   OVERHAUL Multiple Value Streams <ul><li>Improved Process Flow </li></ul><ul><li>Created Visual Controls  </li>...
PNSY - Ball Valve Repair “ Implementation of Lean Manufacturing Techniques in the Ball Valve Shop is the first and most ma...
SSN DMP Value Stream Analysis Plan Planning & Support VSA Work Scoping Job Summary Development Material Ordering TWD Writi...
PSNS & IMF Engineering Planning & Support Services Material Ordering Cell Projected Improvement 92% Flow Time Reduction  R...
PSNS & IMF Lifting and Handling <ul><li>Portal Cranes </li></ul><ul><li>Reduced Crane Maintenance   from 98 to 37 Days </l...
PSNS & IMF Tank Maintenance & Repair Value Stream Map (Current State, Jul 04)  <ul><li>Sample Results: </li></ul><ul><li>B...
PNSY – SSN 720 EOH – TGI Flow Boeing Moving Line  SSN 720 TGI Flow Fundamental Change in Ship Availability Management Mult...
SSN 720 EOH Metrics <ul><li>Key Actions Implemented  </li></ul><ul><li>TGI Supermarket to Control WIP </li></ul><ul><li>Sh...
Carrier NVS Project Management NVS Platform NVS (Tier-One) Lifting & Handling NVS Resource Management NVS Industrial Proce...
Structural 920 Machine 930 Electrical 950 Piping 960 Service 970 Key/Support Processes Budget; Schedule; Paper; Material F...
Supporting the Work Executing the Work <ul><li>Support </li></ul><ul><li>Hotwork/Firewatch, C920 </li></ul><ul><li>New Wor...
Keys to Success <ul><li>Engage Value Streams – Enterprise Level </li></ul><ul><li>Focus on Results </li></ul><ul><ul><li>A...
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NAVSEA Lean Transforming the Way We Work

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  • Purpose of slide : Demonstrates the acceleration of Lean events at Keyport. Narrative : Keyport’s deployment efforts began last September with the initial Lean fundamentals training that was provided to Keyport leadership, many of whom would later be identified as Value Stream Champions, union representatives, and workers in the torpedo maintenance and modernization production line, which Keyport had already selected to be its lead implementation area. Within two months from the initial Lean training, the Executive Planning Session and first Value Stream Analysis had been completed and preparations were made for the first Rapid Improvement Event. With the first group of Blackbelts and Greenbelts graduating, Keyport’s efforts have accelerated even more and the addition of trained Greenbelts will provide the resources necessary to conduct the Rapid Improvement Events identified in the Value Stream Analysis sessions. The addition of these trained personnel accounts for the projected sharp increase in RIEs and associated teams during the summer of this year that is projected to propel Keyport above the five percent change pace in the deployment model.
  • 6 Sigma Project Team Members 6 Sigma-skilled employees will eventually be referred to as Green Belts and Yellow Belts . Any Caterpillar employee can become a Yellow Belt–over time. Problem solving, statistics, and quality tools are a few of the skills required of a Green Belt. All Belts have certification requirements.
  • NAVSEA Lean Transforming the Way We Work

    1. 1. NAVSEA Lean Transforming the Way We Work Presented by Mr. Jim Brice SEA TFL 18 Nov 2005
    2. 2. NAVSEA Lean Journey Organizational Level Connected to Local Value Streams 5 % of the Business 2001-2003 2004-mid 2005 mid 2005-2007 2003
    3. 3. NAVSEA Lean Journey Organizational Level Connected to Local Value Streams 5 % of the Business TFL – August 2004 Command Level Central Coordination Connected to National Value Streams 30 % of the Business 2001-2003 2004-mid 2005 mid 2005-2007 2003 2005
    4. 4. NAVSEA Lean Journey Organizational Level Connected to Local Value Streams 5 % of the Business TFL – August 2004 Command Level Central Coordination Connected to National Value Streams 30 % of the Business Enterprise Level Connect to Navy Value Streams 100% of the Business 2001-2003 2004-mid 2005 mid 2005-2007 2003 2005 Maturing-Growing-Connecting
    5. 5. Task Force Lean (TFL) <ul><li>Implementing Lean Six Sigma across the Diverse NAVSEA/PEO Enterprise – 30 Organizations </li></ul><ul><li>Key Objectives </li></ul><ul><ul><li>World Class Performance – Safety, Quality, Reliability </li></ul></ul><ul><ul><li>Improve Productivity and Return on Investment </li></ul></ul><ul><ul><li>Mainstream Lean into the Line Organizations </li></ul></ul><ul><ul><li>Delight Customers and Employees </li></ul></ul><ul><li>Navy’s Burning Platform </li></ul><ul><ul><li>Current Capability – Cost-wise Fleet Readiness </li></ul></ul><ul><ul><li>Future Capability – Build More Ships and Planes </li></ul></ul>Culture of Continuous Process Improvement
    6. 6. Lean – The Business Strategy NAVSEA Lean Improving the Business - Lean/Six Sigma/TOC - Rapid Improvement - Improve Agility and Speed Running the Business - Disciplined Processes - Data Driven Decisions - Way of Thinking & Working Philosophy Problem Solving People and Partners Process A 4P Model of the Toyota Way from “The Toyota Way” by Dr. Jeffrey K. Liker Navy National Value Streams Effectiveness Efficiency
    7. 7. Lean Process Chart Executive Planning Session (EPS) Value Stream Analysis (VSA) Rapid Improvement Plan (RIP) Rapid Improvement Events (RIEs) (7 Week cycle) Projects (3-6 months) Just Do Its 5S Standard Work Flow Pull Lean Principles* Customer/Value Map the Value Stream Create Flow and Pull Seek Perfection *From “ Lean Thinking” by James T. Womack Cost Reduction Reports (CRRs) D M A I C
    8. 8. HWT Torpedo Lean Cost Reduction
    9. 9. NAVSEA/PEO EPS <ul><li>Goal </li></ul><ul><ul><li>Reduce Costs by $250M in FY 07 </li></ul></ul><ul><ul><li>Across all of NAVSEA/PEO </li></ul></ul><ul><ul><li>In Addition to Intelligent Targets </li></ul></ul><ul><li>Lean Implementation Plan </li></ul><ul><ul><li>Issued by Formal Letter 14 Jan 05 </li></ul></ul><ul><li>Initial Value Streams </li></ul><ul><ul><li>Surface System Combat Systems Product Area </li></ul></ul><ul><ul><li>688 Class Major Availabilities </li></ul></ul><ul><ul><li>Torpedo Maintenance (PEO Sponsored) </li></ul></ul><ul><ul><li>Engineering (LOB) Support to Current Navy </li></ul></ul>
    10. 10. Establishes Formal, Disciplined, Standard Process for Change Strong Alignment and Support
    11. 11. Major Value Streams <ul><li>Technical Operations </li></ul><ul><ul><li>AEGIS, SSDS, ACDS, Small Arms, Mk125 Ordnance, Ranges, Torpedoes, Periscopes, Large Scale Model Testing, Electronic Warfare Systems, Financial Management, Procurement, Plant Maintenance, IT </li></ul></ul><ul><li>Shipyards </li></ul><ul><ul><li>CVN, SSN, SSBN CNO Avails; Project Mgt; Cranes; Trng </li></ul></ul><ul><li>Logistics and Maintenance </li></ul><ul><ul><li>SCN Outfitting, Calibration, Configuration Mgt, JEDMICS, RADIAC </li></ul></ul><ul><li>Engineering </li></ul><ul><ul><li>Remote Monitoring, MGT, Paint Teams, Environmental, LCS Naval Vessel Rules, SUBSAFE Processes </li></ul></ul><ul><li>Business & Ops </li></ul><ul><ul><li>Financial Execution and Contracting, IT Support </li></ul></ul><ul><li>PEOs </li></ul><ul><ul><li>CVN 77 Const, CVN 21 Design, Mine Warfare, MSMO, Common Logistics, VA Class Const, Working with WC Value Streams </li></ul></ul>Over 100 VSAs Engaging Major Value Streams Almost $8B in Value – FY05
    12. 12. The Lean Deployment Model Vs Actual CRRs - Lean CRRs - Other Implementation Plan Model Number of RIEs & Projects (Actual) Number of RIEs & Projects (Projected) Actual Model Investment - Lean Investment - Other Cost Reduction FY05, 06, 07 ($ Millions) FY05 Investment ($ Millions)
    13. 13. All Employees <ul><ul><li>Provide data and voice of customer inputs to VSA, RIE, and Projects </li></ul></ul><ul><ul><li>Apply concepts to their own jobs and work areas </li></ul></ul><ul><li>Owns vision, direction, business results </li></ul><ul><li>Leads change </li></ul><ul><li>Allocates Resources </li></ul><ul><li>Owns Value Streams </li></ul><ul><li>Owns Rapid Improvement Plan </li></ul><ul><li>Owns Redeployment Plan </li></ul><ul><li>Owns financial results </li></ul><ul><li>Removes Barriers </li></ul><ul><li>Experts on principles and tools </li></ul><ul><li>Leads larger projects </li></ul><ul><li>Coaches Green Belts </li></ul><ul><li>Full-time position </li></ul><ul><li>Lead small-moderate projects </li></ul><ul><li>Support Rapid Improvement Teams </li></ul><ul><li>Full time or part time role </li></ul><ul><li>RI Team or Project specific support </li></ul><ul><li>Part time </li></ul><ul><li>Heads Lean Office </li></ul><ul><li>Owns Deployment Plan </li></ul><ul><li>Owns Communication Plan </li></ul><ul><li>Captures Metrics </li></ul>Lean Champion Value Stream Champions Team Members Executive Leadership Green Belts Black Belts <ul><li>Trains Black Belts / Green Belts </li></ul><ul><li>Leads Complex Projects </li></ul><ul><li>Full-time position </li></ul>Master Black Belts Team Leaders <ul><li>RI Team or Project specific support </li></ul><ul><li>Part-time </li></ul>Lean Deployment Roles Model taken from “Lean Six-Sigma” by Michael George 166 1 746 19,773 Basic Training 1015 ALL
    14. 14. Black Belt Graduating Class BB Trained & Practicing 100 BB in Training 59 Total by end of FY 05 159
    15. 15. Continuous Learning Army Material Command - Lean Focus - Master Sensei GE Presentation - Everything is a Process - Q x A = Effectiveness - BB are Future Leaders Boeing 737 Moving Line - Value Stream Focus Raytheon Visit - Leadership Involvement - BB Project Selection - Metrics, Speed, Celebrate SWRMC – 25MM Gun Shop NI NADEP – Pulsed Line Todd SY – WL Fluctuation NGNN – Value Stream Focus Sumitomo SY Visit - 20 years of disconnected Lean events not yielding results - 2 years of focused TPS across total VS reducing cycle times - Tours – No idleness, good visual control, low inventory
    16. 16. Employee Participation <ul><li>Power of Lean Approach – Drives the Culture Change </li></ul><ul><ul><li>Teams of People Who Do the Work </li></ul></ul><ul><ul><li>Define Current & Future State – Make the Process Changes </li></ul></ul><ul><li>Seeing Results </li></ul><ul><ul><li>Private Industry – ROIC </li></ul></ul><ul><ul><li>Navy – Readiness per Invested Capital – Hard to Measure </li></ul></ul><ul><li>Motivation Challenge </li></ul><ul><ul><li>Private Industry – Growth </li></ul></ul><ul><ul><li>Navy – Getting Smaller </li></ul></ul><ul><li>Command Pledge </li></ul><ul><ul><li>No One Will Lose Employment Due to Lean Efforts </li></ul></ul>
    17. 17. SUBMARINE OVERHAUL Multiple Value Streams <ul><li>Improved Process Flow </li></ul><ul><li>Created Visual Controls </li></ul><ul><li>Contingent Repair Instructions </li></ul><ul><li>Continuous Improvement </li></ul>PNS Ball Valve Repair: <ul><li>Machine Fixturing </li></ul><ul><li>Workplace 5S </li></ul><ul><li>Satellite Epoxy Work Cell </li></ul><ul><li>Standard Work Instructions </li></ul>Model Line PNSY - Ball Valve Repair
    18. 18. PNSY - Ball Valve Repair “ Implementation of Lean Manufacturing Techniques in the Ball Valve Shop is the first and most mature example of a process that is the best in class at PNS and throughout NAVSEA.” - Inspector General Report, March 2004 Average Ball Valve Cycle Time per Quarter Quarter 1 2 3 4 1 2 3 4 1 2 Cycle Time (days) 208 176 148 140 100 82 61 53 54 45 FY 2002 FY 2003 Goal = 20 Days FY 2004 95% Decrease in Overtime Hours 28% Increase in Throughput 92% Increase in Productivity per Labor Hour 60% Improvement in Cycle Time Process Improvements FY 2002 - FY 2004
    19. 19. SSN DMP Value Stream Analysis Plan Planning & Support VSA Work Scoping Job Summary Development Material Ordering TWD Writing Work Packaging Multiple Value Streams Isolate Temp Services VSA Temp Services Kitting System Take-Down VSA Re-Install System Turn Back VSA Problem Resolution Material Kitting Test Operational Test Planning TWD Certification Improving Engineering & Planning Performance Improving Tank Maintenance & Repair Improving Crane Availability Electroplating Portal and Bridge Crane Maintenance Tank VSA Tank Inspection / Cleaning Sea Water Sys VSA Rip-Out & Repair Staging Set Up Hose Fabrication Ball Valves Shafts Hydraulics Bench Machining Structural Fab Focus areas to date…
    20. 20. PSNS & IMF Engineering Planning & Support Services Material Ordering Cell Projected Improvement 92% Flow Time Reduction Reduced duration from 8 Days per JML to 4.5 Hours per JML 44% Productivity Improvement Reduced from 0.9 MD / JML to 0.5 MD / JML ($123,000 per DMP, $182,000 per DPIA) TWD Writing Cell Projected Improvement 75% Flow Time Reduction Reduced duration from 50 days/TWD to 12.4 Days/TWD 34% Productivity Improvement Reduced from 2.25 MD/TWD to 1.48 MD/TWD ($160,000 per SSBN, $344,000 per SSGN, $98,400 per DPIA, $49,200 per PIA) $389,000 per DMP $539,200 per PIA $600,400 per DPIA FY05: 37 people redeployed to other critical work Total Cost Reductions for Entire Value Stream
    21. 21. PSNS & IMF Lifting and Handling <ul><li>Portal Cranes </li></ul><ul><li>Reduced Crane Maintenance from 98 to 37 Days </li></ul><ul><li>Reduced Overtime Costs from $180K to $0 </li></ul><ul><li>Portal Crane Annual Maintenance Savings $960K/Year </li></ul><ul><li>Increased Crane Availability has Allowed for </li></ul><ul><li>Net Reduction of 2 Category I Portal Cranes </li></ul><ul><li>New Portal Crane procurement Cancelled </li></ul><ul><li>Inventory Reduction Applied to Movement of 2 Portal Cranes to IMF Cost Avoidance FY 2010 $25M </li></ul><ul><li>Bridge Cranes </li></ul><ul><li>Category II Bridge Crane Savings $400K/YR </li></ul><ul><li>88% Reduction in Maintenance Cycle Time from 30 to 7 days </li></ul><ul><li>Eliminated Work Backlog </li></ul>
    22. 22. PSNS & IMF Tank Maintenance & Repair Value Stream Map (Current State, Jul 04) <ul><li>Sample Results: </li></ul><ul><li>Ballast tanks </li></ul><ul><ul><li>Open thru wash (688CL): 4 days (vice 3-4 wk avg) </li></ul></ul><ul><ul><li>Open thru paint (726CL): 138 days (baseline: 281) </li></ul></ul><ul><li>Reserve feed tanks </li></ul><ul><ul><li>Blasting (CVN): 47% mhr reduction (720 to 380) </li></ul></ul><ul><ul><li>Painting flow time (688CL): Avg savings = 30 days (down from 52 to 22) </li></ul></ul>Lean Flow Cells Developed and Implemented <ul><li>Improvements made: </li></ul><ul><li>Restructured & standardized work sequence for flow </li></ul><ul><li>Assembled cross-functional Cell teams </li></ul><ul><li>Cells flow continuously through the tanks </li></ul>OPEN/ CLEAN BLAST PAINT RE- INSTALL CLOSURE STAGE INSPECT RIPOUT REPAIR BLAST PROTECT 1 S P 5 1 S P 5 1 S P 5 1 S P 5 1 S P 5 1 S P 5 1 S P 5 1 S P 5 1 S P 5 1 S P 5
    23. 23. PNSY – SSN 720 EOH – TGI Flow Boeing Moving Line SSN 720 TGI Flow Fundamental Change in Ship Availability Management Multiple Value Streams
    24. 24. SSN 720 EOH Metrics <ul><li>Key Actions Implemented </li></ul><ul><li>TGI Supermarket to Control WIP </li></ul><ul><li>Shipboard Engineering Trouble Desk </li></ul><ul><li>Dockside Material Consumables Trailer </li></ul><ul><li>Improvements in Communication & Coordination </li></ul>Equivalent Metrics at Three Months into the Availability Projected Cost Reduction: $22M
    25. 25. Carrier NVS Project Management NVS Platform NVS (Tier-One) Lifting & Handling NVS Resource Management NVS Industrial Process NVS Training NVS Material NVS Process/Functional NVS (Tier-Two) SSN 688 NVS SSBN/SSGN NVS Standardizing Across Platforms Standardizing Across NSYs National Value Stream (NVS) Network Shipyards (1) Integrating & Aligning (2) Creating Accountability
    26. 26. Structural 920 Machine 930 Electrical 950 Piping 960 Service 970 Key/Support Processes Budget; Schedule; Paper; Material FY06 Lean Execution Strategy: SSN CVN SSBN/GN Core Mission Value Streams “ Just in Time” Delivery Example : Submarine Structural Fab <ul><li>Cost Reductions </li></ul><ul><ul><li>FY05 $0K </li></ul></ul><ul><ul><li>FY06 ~$575K </li></ul></ul><ul><ul><li>FY07 ~$767K </li></ul></ul><ul><li>Cost Reductions </li></ul><ul><ul><li>FY05 ~$444K </li></ul></ul><ul><ul><li>FY06 ~$455K </li></ul></ul><ul><ul><li>FY07 ~$468K </li></ul></ul>Cost Reductions Submitted Reported (To-Date) FY05 FY06 FY07 3-Year Total Cost Reductions: $10.8 M $11.4 M $12.7M $34.9 Million Redeployment: 75 MPD 39 MPD 26 MPD 140 Men Per Day <ul><li>21 Black Belts; 42 Green Belts </li></ul><ul><ul><li>- 14 Value Stream Analyzed </li></ul></ul><ul><ul><li>- 58 Rapid Improvement Events </li></ul></ul><ul><ul><li>- 16 Projects </li></ul></ul>Driving Down Cost $$$ Example : Supply Chain Lead Shop Focus Cost Performance Schedule Performance Quality Performance Safety Performance Functional Area Focus NNSY Process Improvement Program: “Transforming to Better Support the Fleet” FY05 Lean Execution Summary: Core Mission USS HAMPTON (SSN-767) FY05 DMP USS CHARLOTTE (SSN-766) FY06 DMP USS TRUMAN (CVN-75) FY06 DPIA FY06 FY07 USS GEORGIA (SSBN-729) FY05 ERO/CONV USS ALASKA (SSBN-732) FY07 ERO
    27. 27. Supporting the Work Executing the Work <ul><li>Support </li></ul><ul><li>Hotwork/Firewatch, C920 </li></ul><ul><li>New Work, C1200 </li></ul><ul><li>Resource Allocation, C900 </li></ul><ul><li>Prioritization, C300 </li></ul><ul><li>Topside Work Control, C246 </li></ul><ul><li>Supervision/DSS, C900P </li></ul><ul><li>Execution MDs </li></ul><ul><li>Shafting, C930 9K </li></ul><ul><li>Hull/Sea Valves, C930 4.7K Reboiler Retube, C930 3.1K </li></ul><ul><li>Blow Down Trunks, 970 3.4K </li></ul><ul><li>Reserve Feed Tanks, C970 5K </li></ul><ul><li>A/C Conversion, C960 11K </li></ul><ul><li>Smart Carrier, C950 9K </li></ul>Focused Initiatives to Get There: Norfolk Naval Shipyard Lean Transformation: “Providing More Maintenance for the Manday” Bottom Line To Customer: Customer: ____MD reduction or “more work” NNSY NOR: Improved CP & FP Performance Cost Performance (against barebones) Schedule Performance (against CNO completion date) Platform Value Stream Trend USS TRUMAN (CVN-75) FY06 DPIA Cost Schedule Quality Safety Working Toward FRE CP > .95 (PMC/ Barebones) SP > 1.0 Meet or beat all MSs and KEs 20% Reduction in Deficiencies per 1000MDs 5% Reduction in Lost Workday Accident Rate Good Good Scheduled Delivery
    28. 28. Keys to Success <ul><li>Engage Value Streams – Enterprise Level </li></ul><ul><li>Focus on Results </li></ul><ul><ul><li>Accomplish the RIEs and Projects – Change the Processes </li></ul></ul><ul><ul><li>Redeploy People – Capture Cost Reductions </li></ul></ul><ul><li>Formal Implementation Plan </li></ul><ul><ul><li>Roadmap – Standard / Consistent Implementation </li></ul></ul><ul><ul><li>Creates Alignment and Support </li></ul></ul><ul><li>Broad Focus </li></ul><ul><ul><li>Fundamental Business Strategy </li></ul></ul><ul><ul><li>Way of Thinking – Culture Change </li></ul></ul><ul><li>Training is Important – Build Self-Sufficient Infrastructure </li></ul><ul><li>Sustained Leadership is Crucial </li></ul>THINK LEAN

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