NSRP ASE Lean presentation

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LEAN and the DoN Blocking Tackling
Fundamentals DoN 2004 Logistics Conference
Nick Kunesh
Deputy Assistant Secretary of the Navy
(Logistics)
May 18, 2004
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DoN Total Obligation Authority (TOA)
115.1B
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The Need to TransformWhat Are Our Leaders Saying?
We simply have to transform this place. It is
every bit as important to the success of the
global war on terrorism as the other things we're
doing. Donald B. Rumsfeld Secretary
of Defense
Now a few words about transforming business
practices. First of all, efficiency equals
effectiveness. They go together. We should be
constantly searching for improved effectiveness
through improved efficiency.
Gordon R. England
Secretary of the Navy
As we look to the future, we must transform to
retain the advantage against innovative and
determined enemies. ADM
Vern Clark Chief of
Naval Operations
Its not a destination its a journey!
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Secretary of the Navys Near
Term Priorities

• Combat Capability
• Win the War on Terrorism
• People
• Ensure quality of service
• Technologies
• Recapitalize our Forces
• Improving Business Practices
• Transform the Business of Defense
• Process characteristics needed to support
  SECNAVs priorities
• Speed
• Agility
• Flexibility
• Sustainment (TAV, ITV)

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Efficiency Methodologies and Tools for
Continuous Improvement

• Enablers for speed, agility, flexibility
  sustainment in an affordable manner.
• Efficiency Methodologies
• Theory of Constraints (TOC)
• Lean
• Six Sigma
• Others ISO 9000, Malcolm Baldridge Award, CMMI
  
• Information Technology
• Navy Enterprise Resource Planning (ERP)
• Global Combat Support System (GCSS) Marine Corps
• Automatic Identification Technologies (AIT)
• Unique Identification (UID)
• Radio Frequency Identification (RFID)

All provide an environment for lead time
reduction in the Value Chain.
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Lean is...

• A set of principles, concepts and techniques
  designed for a relentless pursuit in the
  elimination of waste. Producing an efficient
  just-in-time production system, that will deliver
  to our customers

• exactly what they need
• when they need it
• in the quantity they need
• in the right sequence
• without defects
• and at the lowest possible cost

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Lean Improves Overall System Performance by
Reducing Waste, Variability, Inflexibility
System (inhibitors)
Performance indicators (outputs)
Business flows (inputs)
People and process
Quality
Waste
Material
Cost
Variability
Inflexibility
Information
Delivery
Feedback loop
Customer/shareholder requirement
Performance
Gap business problem
Actual performance
Time
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C Current Environmental Landscape E-2C
Gyroscope Repair Example
DRAFT
Gyroscope Organization Space
NAVICP
Lean
Lean
VAW-120
VAW-120 Work
Item
Pilot
Maps
Maps
Center
Manager
VAW-120
Pack and Preservation
Maintenance Control
FISC Building 36
VAW-120 Supply
Container
Reclamation
VAW-120 QA
SRS MDU
472 Work Center
SRS
472 Production
Contractor
Control

Although this
Instruments Shop Work
SRS Materiel
gyroscope is a one-
Center
for-one exchange,
the repairable sent
Instruments Shop
DCU (Supply)
Production Control
to NADEP North
Island may not be
Instruments Shop
sent back to Norfolk
AMSU (AIMD)
Planner

Over 400 of this
Instruments Shop
type of gyroscope
AIMD 62A Work Center
Pre-stage Area
are in inventory
AIMD 600 Production Control
FISC
DDDC
ATAC Norfolk CFS
ATAC Norfolk
Building 3304
ATAC
Government
CFS Houston
North
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Island CFS

• 35 Physical Moves
• 25 Building Moves
• 10 Sites Moves
• 52 IT Transactions
• 11 Info Systems
• 7 Logbooks

• No End-to-End Management
• Lack of Visibility
• Long-Cycle Times
• Increased Inventory Levels
• Limited Ability to Forecast

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Lean-Pathways/AirSpeed Accelerated Improvement
Workshop Onboard USS Harry S. Truman (CVN-75) 2
April 2004 700 Division BRU-32
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(No Transcript)
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HST Lean-Pathways/AirSpeed Event Roadmap
Elements Completed Inport
Event 3 Improvement Workshop 1 Roadmap
Refinement Implementation Tools Workshop 2
Plan
Event 4 Improvement Workshop 2 Roadmap
Refinement Implementation Tools Workshop 3
Plan
Event 5 Improvement Workshop 3 Review Long Term
Change Strategy Update
Event 2 Lean Training/ Plans for Workshop 1
Event 1 Kickoff HST
Event 6 Capstone Event
Prior Event Program Kickoff And Carrier
Familiarization Map Current State
Elements Completed At Sea
AIW Leader Training
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BRU 32
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BRU AIW Team

• Members
• AE2 Kemper, IM2
• AS1 Thomas, IM4
• SK2 Bobnock, MSP
• AM1 Schulz, IM2
• AT1 Halloran, IM3
• AE1 Taylor, QA
• AO2 Travers, IM3
• AE1 Hamilton, IM3
• Team Leaders
• LT Belmont
• LTJG Bast
• Process Owners
• LT Dunn
• AOC Gilbert
• Facilitators
• Ralph Day
• Rick Davidson
• Observers

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Goals

• Reduce people and part travel by 50
• Eliminate potential backlog
• Improve availability of consumable parts within
  the work center for BRU-32
• 100 Consumable Parts Availability (bit piece
  parts)
• Increase on-board repairable availability by 50
  with a Stretch goal of 100 availability

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Data GatheringTime Observation Sheets
190 steps
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Data GatheringProcess Flow Sheets
167 items
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BRU 210 Day Inspection Cycle As is
BRU 210 Day Inspection Cycle
Tool Box
Computer Printer
To GSE to Clean Parts
To Hazmat Locker
Pallet
Parts Locker
BRU Bench
Work Bench
Computer
Locker
Test Bench
Computer
Sink
Locker
Work Bench
People distance 3,232 feet Parts distance 281
feet
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Future State VSM
Current State Future State
Value Added Time 259 259
Non-value Added Time 112 19.45
Non-value Added but Required Time 64 49
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Brainstorming
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Ideas

• Daily Hazmat Run or Local Hazmat Locker
• Dedicated AZ for NALCOMIS
• Parallel Processing
• Dedicated tool boxes
• Rotable kits
• New Parts Washer
• New Bench
• Mounted Test Set
• Parts Shadow Board
• 5S
• Tabbed Pub, centrally located

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BRU 210 Day Inspection Cycle To Be
BRU 210 Day Inspection Cycle
Tool Box
Computer Printer
Pallet
Parts Locker
Work Bench
Computer
2nd Stage Disassembly
1st Stage Disassembly
Locker
kanban
Computer
Parts Washer
Sink
Locker
2nd Stage Re-assembly
Final Assembly and Test
People distance 85 feet (before LEAN 3,232
ft) Parts distance 67 feet (before LEAN 281 ft)
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Accomplishments

• Reduced people travel by 97 (Goal 50)
• Reduced part travel by 76 (Goal 50)
• Eliminate potential backlog
• Improve availability of consumable parts within
  the work center for BRU-32
• 100 Consumable Parts Availability (bit piece
  parts)
• Increase on-board repairable availability by 50
  with a Stretch goal of 100 availability

?
?
?
?
?
?
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External Supply Chain
Lead-time Reduction Event
F/A-18 E/F Nose Landing Gear
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Nose Gear Supply Chain Structure
Boeing (assembly)
Messier-Dowty (assembly and machining)
Wyman Gordon (forgings)
Cam-Tag (machined parts)
SL Aerospace (assembly and machining)
VacAero (heat treatment)
Carpenter (specialty materials)
Tecnickrome (surface treatment)
Superior Plating (surface treatment)
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Lead Time Reduction (sum)
Projected sum of lead time for studied parts
based on plans. Overall delivery time has
reached 48 week goal (driven by critical
path) Lead time reductions also lead to cost and
quality improvements
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F/A 18 E/F Nose Landing GearTimeline View
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SLAM-ER Cycle Time by Part True Lead Time
Reduction
Lean-Pathways Engaged Suppliers
Goodrich-UPCO
Kemco Tool
Harris Corp.
Kaman - Results from Pilot Program
Kemco Tool

• Performance Improvement Results (average)
• 98 delivery improvement
• 18 Lead time reduction
• 6 quality improvement

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• NAVY
• INTERMEDIATE LEVEL MAINTENANCE
• LEAN FORUM

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Independent Initiatives

• Basic TOC
• AIMD/ASD NAS North Island
• AIMD/ASD NAS Pt. Mugu
• MALS-26
• MALS-29
• AIMD/ASD NAS Whidbey Island
• AIMD/ASD NAS Oceana
• NADEP Cherry Point
• TMS Team Gap Closure Efforts
• CVN-21 Lean Pathways

• Lean
• AIMD Lemoore
• AIMD Oceana
• VFA-106 (phase shop)
• MALS 11
• MALS 31
• NADEP Jax
• NADEP North Island
• AIMD Rota
• Six Sigma
• AIMD Oceana
• NADEP Jax

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AIRSpeed Current Tools

• Theory of Constraints is based on the belief that
  any organization has at least one constraint and
  that any improvements on non-constraints may not
  yield as significant ROI as working on the
  constraint.
• LEAN focuses on the removal of waste-defined as
  anything not necessary (no value added) to
  produce the product or service.
• Six Sigma is based on the assumption that the
  outcome of the entire process will be improved by
  reducing the variation of multiple elements.
• AFAST is a Cost Analysis tool used to understand
  Consumption Variances and Production Cycles

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Deployment Schedule

• Initially focused on Shore Based Activities
• Focus on Cost and Aircraft Ready for Tasking
• F/A-18 T/M/S first, followed by
• H-60
• CH-53/CH-46
• E-2C

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AIRSpeed Deployment Schedule
2004

NAS Oceana

MALS-11
MALS-31
NADEP NI
NAS Lemoore
MALS-12

AIMD North Island

NAS Whidbey Island

NAS Point Mugu
NAS Norfolk
NS Mayport
NAS Jacksonville

MALS-26

MALS-29
B-TOC Complete
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CDR CJ Jaynes journey begins..

• Officer-in-Charge of Aircraft Intermediate
  Maintenance Detachment (June 2000 May 2003)
• Performed maintenance on F/A-18 components,
  systems, engines, hydraulics, life support
  equipment, etc.
• 63 production work centers
• Total Workforce of 816
• 11 officers, 751 enlisted personnel, 54
  civilians
• Immediate Challenges
• High maintenance backlog
• Production inefficiencies
• Low sailor and civilian morale
• weve always done it that way attitudes

Something had to be done quickly..
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NAS Lemoore Snapshot in timeAIMD in June 2000

• Manning at 70
• Backlog (other than engines) at 1260 items
• EXREPS 200
• Engine backlog _at_ 35 AWM
• Module backlog _at_ 190 AWM
• No light at the end of the tunnel

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Plan for Success

• Teamed with Boeing and the F/A-18 Program Office
• Trained a core team of military Lean facilitators
• Trained all E-5 and above in Lean concepts
• Developed a roadmap Held two AIWs every month
  every work center was effected
• Make Lean a way of life not just a program

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AIMD Trends Results of Lean
Decreasing Backlog with increasing customer base
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400 Division Power Plants
Reduced Engine Turn Around Time
181 Engines
83
135 Engines
Number of Maintenance Days
40
139 Engines
14
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AIMD Lemoore Power Plants BEFORE
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AIMD Lemoore Power Plants AFTER
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What Does Lean Mean to the AIMD at NAS Lemoore?

• AIMD Sailors are now able to work 8 hour days
  instead of 12 hour days.
• Re-enlistment rates improved from less than 50
  to over 76
• More parts on the shelf and less in the repair
  cycle
• More up aircraft on the ramp
• Better quality product to the fleet
• Established repeatable, consistent production
  processes

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DoN Efficiency Tools, Methodologies, and Sponsors

• IT End to End
• Converged Navy ERP
• GCSS MC
• DoN eBusiness
• IT applications
• EWSP
• Govt management tool
• Lean Pathways
• Lean, SPANS IT Applications
• NAVRIIP AIRSPEED
• TOC, Lean, Six Sigma
• One Shipyard
• Lean, Six Sigma
• NSWC Crane
• Lean
• LOG Modernization
• TOC, Lean
• SHIPMAIN
• Lead-time reduction

• ASN(RDA)/OPNAV,
• CMC (DC, IL)/MCSC
• UNSECNAV, DoN CIO
• ASN(MRA), NAVSEA
• ASN(RDA)/ONR, MANTECH
• CNAF, NAVAIR
• NAVSEA
• CMC (DC, IL), LOGCOM
• CFFC, NAVSEA
• OPNAV, CMC