NAVAIR OVERVIEW TO THE F/A-18 COMMUNITY

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Cost Wise Readiness Integrated Improvement
ProcessProduct Enterprise Team
Stephanie K. Wood Enterprise Team Lead 12
November 2004
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Why CWRIIP?

• To achieve Cost Wise Readiness in order to
  support future readiness.
• Goal is to achieve the current level of readiness
  at a reduced cost.
• Use the saved for recapitalization
• Simplify focus through a lens of reliability,
  cost, cycle time, inventory
• Better align people and products
• Identify a CEO that understands all aspects of
  their product, managing the life cycle across
  O-I-D through the metrics
• Common comparable process with data to support
  product/project choices
• Hold people accountable for results

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WHY CWRIIP ?

• 3. Providing tools to the Program Manager to
  prioritize efforts
• Ensure the right investment now to support
  readiness across the life cycle.
• Focus tools and techniques at the biggest pay off
  areas
• Apply standard data methods and metrics to
  support requirements
• 4. Provide tools and methods for Leadership
  decision making
• Apply standard measures to allow valid comparison
  at all levels
• Provide standard process for escalation
• Understand influence and impact of local decision
  across the NAE

4
Too many unstructured demands, no standard
prioritization process
Current Operations
Result - Frustration Poor Results
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Solution
Metrics driven prioritization process aligns
resources to CWR goals
Safety - Reliability - Time - Inv - Cost -
Resources
Metrics ? Results ? Maximized CWR
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Cost Wise Readiness Integrated Improvement
Process (CWRIIP)
Process
Tools to enable the Program Manager users
to prioritize workload and NAE to assess
local decisions for global impact
PET Structure
PET Metrics
Intend to use the TMS construct for all
platforms to pull together overall CWR plans
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CWRIIP Macro Level Steps

1. Initial Rack Stack Assess baseline alignment
   of current projects (funded unfunded) to CWR
   objectives
2. PET Selection Pareto analysis of Cost and
   Readiness (SCIR) degraders
3. Assess lists
4. Further refine projects prioritization with
   standardized ROM and BCA processes
5. Assign resources by candidate priority and
   resource availability
6. Use metrics to track progress

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Cost Wise Readiness Integrated Improvement
Process Summary
Phase 7 Implementation
Phase 1 Monitoring
Phase 2 Qualification
Phase 3 Initial Rack Stack
Phase 4 Barrier Analysis
Phase 5 Business Case Analysis
Phase 6 Fund Launch
Barrier Analysis Recommendation
Fund Launch
Business Case Analysis Backlog
Prioritized BCA Backlog
Prioritized Backlog
LEGEND Phase 1 A Product Enterprise Team (PET)
monitors trends in the metrics on the cockpit
chart, validates the problem and submits it to
Phase 2. Phase 2 In Phase 2 the business rules
and local filters are applied to prioritize
efforts through use of the PMP process and begin
issue tracking and documentation. Phase
3 Projects are sorted according to their
expected impact on the 4 productivity metrics
(Reliability, Cycle Time, Inventory, Cost) and
Safety to create an initial prioritized list.
This list is then subjected to TMS approval.
Phase 4 The PET uses AIRSpeed and NAVRIIP tools
to identify and prioritize potential solution
alternatives for submission to the Business
Case Analysis (BCA) backlog. Phase 5 Projects
leave the BCA backlog to begin the BCA process
according to resource availability and priority
of impact. TMS again has approval . Phase
6 Projects leave the funding backlog and are
launched according to resource availability and
impact as calculated in the Business
Case. Again the TMS has final approval. Phase
7 PETs implement the projects to improve Cost
Wise Readiness (CWR) for their respective
products or components. During implementation
the PETs continually monitor the cockpit charts
to track progress to desired levels.
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Standard tools to prioritizeeffort and maximize
Impact
Project Volume
GateYield
Rack Stack
ROM
BCA
Time
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Initial Rack Stack
Additional Data for each Project - Project Name
/ Description - Cost to Complete - Year
Complete - Funding Source - Funded or Unfunded
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PMA 231 Rack Stack of Active Backlog Projects
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BCA/ROM
Workload Prioritization and Fidelity
Business Case Analysis (BCA)
Rough Order Magnitude (ROM)
Initial Rack Stack
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PET SELECTION

• Utilize a Pareto analysis of the top Cost and
  Readiness Drivers
• Establish PETs where appropriate
• Component, system, commodity levels
• Activate PETs based upon
• NAVRIIP RFT and Cost metrics
• Prioritization listing
• Resource availability

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Product Enterprise Team Concept of Operations
CNAF
PEO
Board of Directors
NAE
TMS Team
Commodore/USMC/WRWG/NAVRES/CNET/NSWAC
PMA
TMS PET
Competency Support to program teams
Commodity PET
Component PET
PETs are stood up for every Readiness and Cost
Significant System. PETs are composed of IPT,
Item Mgr, 4.2, 6.0, FST, NATEC, SE, TRNG,TRIAD,
3.0, 4.0, TYCOM, DLA, others as needed.
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Product Enterprise Team

• PETs are
• Prioritized by a standard process
• Metrics driven
• Measured by results
• Held accountable
• Encompass O-I-D levels
• Hold an Enterprise view

• PETs should not be
• construed as ONLY
• Barrier removal teams
• Tiger teams
• The way we currently do business
• Reliability improvement programs
• Just doing stuff

Most platforms are meeting RFT entitlements
therefore, need to make the shift from readiness
focus to cost focus
PET establishment is driven by metrics (safety,
readiness, cost) and resource availability
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What is a PET?

• A PET does
• Use standard metrics
• Use standard BCA
• Prioritize workload
• Measure results
• Become new way of doing business

• A PET does NOT
• Require additional resources
• Take away PMA authority
• Create new structure
• Rename current activities

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Drive with Metrics and Track Results
Example PET Component Cockpit Chart
SCIR Hours
SCIR
SCIR
Operating Cost
-
-
-
-
-
-
-
RFI of Inventory
Inventory
RFI

-

-
Ready Inv. Vs.
Reqd
. Inv.
First Pass Yield
Reliability
Cycle Time
First Pass Yield
Productivity
-
-
-
-
-
-
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Drive with Metrics and Track Results
Example PET Team Cockpit Chart
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Metrics
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Iteration

• Continual Monitoring of Metrics to check on
  progress
• Are implemented solutions returning expected
  gains, savings?
• Reprioritize as necessary
• Cycle through the process as needed
• With endorsement from TMS team

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Notional CWRIIP Roadmap
4/04
10/06
10/05
10/07
10/04
10/08
Deployment
Phase 1
PET Monitoring all cost significant readiness
items Activity and resources prioritized by TMS
team on Safety Readiness Cost
Initial Process Development F/A-18 Pilot
Continued Process Refinement Automation
Development and Implementation Socialization
Training Development Knowledge Management System
MFR
CONTR
Phase 2
Expand to other NAVRIT platforms in PEO(A)
Pilot programs for PEO(W), AIR-1.0, AAIPT,
Phase 3
Expand to other programs in PEO(W), PEO(A)
AIR-1.0 Competency Training
Phase 4
Expand to all other programs Include
prioritization of other funding lines
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Detailed near term plan
Phase 2
11/04
10/05
12/05
3/05
11/05
10/04
12/04
1/05
2/05
4/05
5/05
6/05
7/05
8/05
9/05
F-18 expansion
P-3
H-60
EA-6B
E-2C
S-3
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Back UP Charts
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The Enterprise Vision

• The over-arching theme is a Single Naval Aviation
  Enterprise to Achieve Aircraft Ready for Tasking
  (RFT) While Reducing Cost
• Alignment of the Naval Aviation Enterprise
• Realize a culture of Readiness
• Ensure that this is cost-wise Readiness
• Improved reliability
• Decrease turnaround time (increase availability
  of assets)
• Right-size the Naval Aviation costs, identify
  cost structure
• Manage reductions as a cohesive enterprise
• Improve material management
• Balance integrated logistics support

CWRIIP is the process to operationalize
this vision
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My vision of NAVAIR is clear We exist to
provide cost-wise readiness and dominant maritime
combat power to make a great Navy/Marine Corps
team better.
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Our goals are

• To balance current and future readiness.
• We need to ensure that we provide our Naval
  Aviators with the right products to fight the
  Global War On Terrorism and other potential
  future conflicts.
• To reduce our costs of doing business.
• We need to pursue actual cost reductions, not
  so-called savings or avoidance. We need to
  return resources to recapitalize our Fleet for
  tomorrow. We must continue to introduce best
  business practices and remove barriers to getting
  our job done with greater efficiencies.
• To improve agility.
• Our ability to make rapid decisions in support of
  emerging Fleet requirements is essential if we
  are to continue to provide value to the nation.
  We must reinvigorate a solid chain of command
  that values responsibility and accountability in
  its leadership.
• To ensure alignment.
• We have come a long way aligning ourselves
  internally, now it is time to ensure that we are
  fully aligned, internally and externally, with
  CNOs transformation initiatives.
• To implement Fleet-driven metrics.
• Single Fleet-driven metrics will ensure we
  directly contribute to the Naval Aviation
  Enterprise.

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Detailed near term plan
Phase 1
10/04
9/04
3/05
2/05
12/04
5/05
11/04
1/05
4/05
6/05
PEO(T) INDOC
AIR-1.0 process policy
NAVICP
AIR-4.0 Strategy Training plan
Brief Leadership Forums CPEO, CCBU, etc
Develop training plan, automation plan, Detailed
roll out plan
Train the trainers