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DoD Depots of the Future: Maintaining
Yesterday’s and Tomorrow’s Navy
October 2004
NAVSEA Vision
Jim Brice, Assistant Deputy Commander
for Industrial Operations, NAVSEA 04X
Outline
 Resources--The Imperative
 Navy Shipbuilding and Repair
 Competes for Resources
 Transformation
 Lean
 One Shipyard
 Shipyard Transformation Plan
 Lean Training
 The Future
2
The Imperative
Fleet Response Plan
300 Ships
Resource
Constraint
Forces
Transformation
$ to Sustain
Right
Readiness
Future Fleet Readiness
Capability
& Capacity
More Operational Time
Right
Cost
300 Ships
$ to Recapitalize
Current Fleet Readiness
Right
Force
SEA Enterprise
Facilities
Workforce
Maintenance
& Logistics
Policies
THE INDUSTRIAL BASE
Right
Force
More Force Structure
Right
Readiness
Right
Cost
Goal is to effectively and efficiently manage the national
industrial base to achieve future goals.
3
New Ship Construction and
Submarine Availabilities
Ship New Construction
Environmental Scan
2000
17 Designs in Progress
SSN 774 SSN 23 MMP
SSGN
Last Decade:
8 Starts
Next Decade:
12 or More?
Number of Submarines Scheduled in Shipyards
LHAR
CG CONV
DDG 51 Flt IIA
CVNX
CVN
21
MPF Future
TAKE
LHD 8
CVN 76 MR
LCS
T-AOE(X)
DDX
LPD 17
DD 21 CVN 77 MR
T-AGM Repl
LMSR
CG(X)
MCS(X) ... ?
1990
2000
2010
LCU(X) ... ?
20
Submarine Depot
Availabilities SSN/SSBN
DMPs, EROs & EOHs
SSN
18
16
We Are Here!
SSBN
SSGN
14
12
10
8
6
4
2
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Quarter of Fiscal Year
4
Continuing the Transformation
Phase 5
LEAN
Transformation
CNO & COMNAVSEA
Annual Guidance
Alignment
Assessment
Aug ‘04
• IMPLEMENT LEAN PRINCIPLES
& Level Two Collaboration
• Deploy Human Capital Strategy
Action Plans
Complete
Reassessment
Phase 4
Nov ‘03
100 day study
complete
May ‘04
Sep ‘04
• Improving our alignment
• Improving our productivity
• Refining our Human Capital Strategy
Phase 3
Jul ‘03
Business Efficiencies
• Contracting
• Integrated Planning Activity
• Engineering
• Business Operations Post-CNI
• Human Systems Integration • Supply Support / Logistics
• Financial Management
100 day study
complete
Phase 2
We are here
Mar ‘03
100 day study
complete
Phase 1
• Warfare Center Transformation Plan
• Naval Shipyard Transformation Plan
NAVSEA Commanders Conference July 2004
Action for All: Begin to apply Lean Principles
and changes to all appropriate work processes
Jul ‘02
• HQ/PEO Realignment
• Technical Authority
5
NAVSEA Enterprise
VICE CDR/DEP CDR FLEET
MAINT & MOD
SEA 09
RADM A. LENGERICH
LITTORAL
& MINE WARFARE
CARRIERS
ADM F. BOWMAN
EXEC DIR.
SEA 00B
P. BROWN (SES)
COMSPAWAR
SYSCOM
(ADDU for C4I)
Task Force Lean
CHIEF INFORMATION
OFFICER
SUBMARINES
E A N
NUCLEAR
PROPULSION
SEA 08
COMMANDER
NAVAL SEA SYSTEMS COMMAND
SEA 00
VADM P. BALISLE
INTEGRATED
WARFARE SYSTEMS
SHIPS
L
COMNAVSUP
SYSCOM
(ADDU for LOG SPT)
SEA 00I
FLEET SUPPORT
MANAGEMENT
REVIEW BOARD
COMMAND STAFF
TECHNICAL AUTHORITY
BOARD
ORDNANCE SAFETY
SEA 00V
WARFARE CENTER
POLICY BOARD
PEO Organizations
COMPTROLLER
CONTRACTS
SEA 01
SEA 02
HUMAN SYSTEMS
INTEGRATION
SEA 03
LOG, MAINT,
& IND OPS
SEA 04
NAVAL
SHIPYARDS
SUPSHIPs
Aug 2004
SEALOGCEN
SHIP DESIGN
INTEGRATION
& ENGINEERING
SEA 05
WARFARE
SYSTEMS
ENGINEERING
SEA 06
COMMANDER,
NAVAL
SURFACE WARFARE
CENTER
NOSSA
UNDERSEA
WARFARE
SEA 07
COMMANDER
NAVAL UNDERSEA
WARFARE CENTER
NUWC
EOD-TD
CORPORATE
OPERATIONS
SEA 10
SUBMEPP
6
One Shipyard
MSRA / ABR Contractors
GDEB
NGNN
One Naval Shipyard
One Nuclear Shipyard
One Naval Repair Shipyard
Resource and Infrastructure sharing across the boundaries of Public/Private will
be instrumental in providing cost effective Ship construction, modernization and
maintenance while maintaining core capability at the NSYs.
7
Naval Shipyard Transformation Plan
Sub Best Practices
Sail, Tanks, MSW/ASW,
Grooming IPPTP, VLS,
Steering&Diving, Torp
Tubes, Hull UROs, Engr
& Project Mgmt
Carrier Team One
ALRE Material, Process
Masters, Execution
Charging & Progressing,
Co-yard, MCAP, etc.
NSY Productivity Projects
Quality initiatives, High
Performance team
building, personal
accountability, Lean
processes, CIMP, etc.
Corp Programs
CWP/ERM,
MANTECH,
CTMA,
Fleet Programs
I&D Integration,
Waterfront
Realignment,
SHIPMAIN, etc.
SHIPMAIN,
NSRP, etc.
Lean
A Comprehensive Business Strategy for Successful Transformation
8

Training our People
on Lean Six Sigma
Lean Six Sigma College
6-month Training Plan
Developed & Taught with USNR and
Certified Black Belts

Key Topics with Emphasis Levels
IMPROVE
IMPLEMENT
CLOSE
 Independently Validated by Industry
 Integrates Lean, Six Sigma, Theory of
Survey Questions
Win/Win
Timed Value Map
Process
Simplification
Assessment Models
(Self-, Baldrige)
DEFINE
7 Quality Control
Tools
Chi-Square, T-Test, FTest
5 S (Workplace
Organization)
Measurement
Design
Policies,
Instructions,
& Standards
Knowledge
Management
Reward /
Recognition
Systems
Quality Performance
System (QPS)
7 Management &
Planning Tools
Root Cause Analysis
Error Proofing /
Poka-Yoke
Communication
Systems
Organizational
Development
Constraints, and Corporate Quality Tools
Value Stream
Analysis
Theory of
Constraints
Prioritization &
Pareto
Basic Statistics
Push vs. Pull
Systems
Priority
Management
Monitoring
Systems
Vision/Mission
 Tailored to ship repair environment
 Methodology taught in a 6 month
 Students who complete LSSC are
qualified Process Improvement Engineers
(equivalent to Black Belts by Industry
Standards)
CHARACTERIZE
Hypothesis Testing
Process Design
Project Planning
Capacity Analysis /
Resource Loading
Change
Management
Team Building
Process Mapping
(Logical and Physical)
Control System
Design
Standard
Processes &
Tools
Corporate Lessons
Learned (CLL)
Communication &
Presentation Skills,
Adult Learning,
Training
Failure Modes & Effects
Analysis (FMEA)
DOE
Balanced Scorecard
Nominative Group
Technique (NGT)
Gage Repeatability &
Reproducibility
Critical Chain
Project
Management
Brainstorming
5 Why's
Input-Process-Output
(IPO) / Input-ControlOutput-Mechanism
(ICOM) Diagrams
Level Schedules
Fishbone (C & E)
Affinity Diagrams
Takt Charts
Benchmarking
Internal Consulting
Gemba
Quality Function
Deployment (QFD)
Reality Trees /
Dissolving Clouds
Causal Loop
Diagramming
Lot Size
Reduction
Cultural
Assessment
Machine Observation
Just in Time /
Kanban
Financial Analysis
Sampling Theory
Set-up Reduction
Strategy
Development
course called Lean Six Sigma College
COMMIT
Market Analysis
Emphasis Levels
Scatter Diagram
Relationship Chart
Histogram
Training includes a practical example or
exercise; students leave ready to apply the tool
1999
Summer
2001
Nov 2001
Dec 2001
Mar 2002
Training includes case study or equivalent;
students may be ready to apply, or may need
minor addl training/reading
3 Six Sigma pilot projects
Sabbatical with Experts (naval reservists)
to develop the Lean Six Sigma concept
and 6-step model
Training may only be a presentation for
self-study, with list of other learning resources
Hired a Ford Six Sigma Black Belt.
Further developed and delivered
LeanSigma College
May 2002 Flights 2, 3, and 4 complete.
June 2003
Sept 2003
PSNS, NNSY, and USNR
agree to partner on LSC
Oct 2003
4 PIEs certified as
Six Sigma Black Belts by ASQ
Dec 2003
Lean Repair Exercise developed to teach
and demonstrate the use of LSS principles
in Repair Environment
April 2004
Master Black Belt Certified
(former BB from Ford)
May 2004
Flight 5 starts at NNSY with 15 students
from NNSY, NFPC, and SIMA-Norfolk
Workgroup
Technology
Ergonomics
Tolerance
Allocation
Visual Controls
Main Effects Diagram
Kaizen / Kaikaku
Normality Test
Response Surface
Capability Analysis
Test
Optimization
 Five experienced LSSC
graduates certified as ASQ Six
Sigma Black Belts

Data Analysis
Trend/Control
Charts
Statistical Process
Control (SPC)
Corporate Process for
Process Improvement
Define
Define the Problem
Define the Case for Action
Define Customer Value
Define Expected Benefit
Define Expected Costs
Define the Vision
Improve
Commit
Develop Draft Economic Observe “As Is” Baseline
Analysis
ID Key Metrics & Targets
Prioritize
Understand
Commit Resources
Implement
Reduce Waste
Train and Deploy
Conduct Pilots
Implement Controls
Develop Implementation Plan Measure Key Metrics
Develop Benefits Realization Codify
Schedule*
Assess and Adjust
ANOVA (Analysis of
Variance)
Change Readiness
Survey
Measurement Systems
Analysis
Characterize
Vision/Mission Development
Change Management
Assessment Models
QPS, CLL
Balanced Scorecard
Value Stream Analysis
Brainstorming
Win/Win
Prioritization
5 Why's
Theory of Constraints
7 Quality Control Tools
7 Management & Planning Tools
Nominal Group Technique (NGT)
Team Building & Facilitation
Project Planning
Internal Consulting
Capacity Analysis, Takt Charts

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Process Analysis
FMEA
IPO / ICOM Diagrams
Causal Loop Diagramming
Process Observation / GEMBA
Basic Statistics
Data Analysis Tools
SPC, Gage R & R
Sampling Theory
Root Cause Analysis
CTQs / CTPs
Hypothesis Testing
5 S / Visual Controls
Poke-Yoke / Error Proofing
Process Simplification & Design
Pull Systems
Supply Chain Management
Critical Chain Project Mgt


2515 people trained in Lean
Basics
1456 people participated in
Lean events

175 Lean events
Hierarchy of Process
Improvement
Program
Change
Lean Six Sigma Toolbox

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82 Process Improvement
Engineers trained via the
Naval Shipyards’ Lean Six
Sigma College (NNSY, PSNS,
PHNS, SIMA-N)
Close
Update Priorities
Plan Next Steps
Publicize & Recognize Results
& Benefits*
Knowledge Sharing
Sustain & Maintain Metric
“Glossary" or self-study, awareness only,
with list of "lifelines"
Flight 1 of Lean Six Sigma College
starts at NNSY
Flight 1 graduates and
LeanSigma projects begin.
Box Plots
Organizational
Design
Supply Chain
Management
One Master Black Belt hired
from Ford
The LRE is an interactive Lean Improvement
exercise, developed by the Shipyards, based
on the Motor Regional Repair Center,
simulates variability typical of repair
processes & uses LeanSigma to focus and
drive improvements
Process
ReEngineering
Continuous Self
Improvement
(CSI)
9
The Way Ahead...
We will continue to
• Deliver as promised on products and services
to keep our Warfighters ready to win
• Ensure cost, scheduling, and process
efficiency gains are factored to return value
and needed investment monies
Bottom Line: Our Industrial Base is
fundamental to the Navy and the nation as
it ensures that the Fleet is ready to deploy
10
Questions?
11