U.S. ARMY ARMAMENT RESEARCH, DEVELOPMENT AND ENGINEERING ...
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U.S. ARMY ARMAMENT RESEARCH, DEVELOPMENT AND ENGINEERING CENTER
(ARDEC)
LEAN/SIX-SIGMA
20 September 2005
Presented toPresented to
3232ndnd National Energy & Environmental Conference National Energy & Environmental Conference
PAUL E. CHIODOPAUL E. CHIODODirector, Quality Engineering & System Assurance, Director, Quality Engineering & System Assurance, RDECOM-ARDECRDECOM-ARDECChair, AMC Quality FederationChair, AMC Quality FederationCertified Lean/Six Sigma Master Black BeltCertified Lean/Six Sigma Master Black Belt
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LEAN/SIX SIGMALEAN/SIX SIGMABOTTOM LINE UP FRONTBOTTOM LINE UP FRONT
• The Integration of Lean and Six Sigma has Provided ARDEC with a Proven Commercial Best Practice for Continuous Improvement
• In Partnership with its Customers, ARDEC has:– Increased Awareness– Improved RD&E, Manufacturing and Administrative Processes– Integrated Lean/Six Sigma into the Business Culture
Culture Change is Occurring!
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LEAN/SIX SIGMALEAN/SIX SIGMABOTTOM LINE UP FRONTBOTTOM LINE UP FRONT
(Continued)(Continued)
• ARDEC Stood Up a Lean/Six Sigma Competency Office to Assure Consistent, Effective and Efficient Deployment, Consulting and Training
• ARDEC is Integrating Lean/Six Sigma with a Quality Management System (QMS) and Voice of the Customer (VoC) Protocols on its Journey to Enterprise ExcellenceSM
Culture Change is Occurring!
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678133Black
N/A4271025Green
MasterCertTrainBelt
ARDEC L/6 Training & Certification
• Data from Inception (2000) to Present• Includes ARDEC, Program Executive Offices (PEO),
Contractors, and Other Government Activities• Black-Belts have Green Belt as Prerequisite
Includes Approx. 3.3% of ARDEC
Workforce
Includes Approx. 27.4% of ARDEC
Workforce
Goal: 240 Training Incidents/Yr
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ARDEC L/6 ROI• $2.66B Savings/Avoidance to Date • 20:1 VE Validated Returns
– Value Engineering Adds Rigor• Recognized Standard• Independent Verification• Hard Numbers Only
• All Aspects of Q$SR– Q: Quality/Customer Satisfaction (91%
of Projects)– $: Cost (70% of Projects)– S: Schedule (67% of Projects)– R: Risk (84% of Projects)
• Improvement Projects in:– Engineering (35%)– Production (32%)– Business/Admin (23%)– Management (10%)
0
10
20
30
40
50
60
70
80
90
100
Figures in $M
Training Costs
VE Validated Savings
Estimated Life-Cycle Avoidance
67.3
3
2,660
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ARDEC L/6 Timeline
Six-Sigma Initiated by PM CAS
Leadership Transitioned to ARDEC
First Certification Ceremony
Industry Benchmark Studies
First Integrated Lean/Six-Sigma Course
JUL 2000
APR 2001
JAN 2006+
ARDEC Enterprise ExcellenceSM Plan Complete
AUG 2001
JUN 2002
May 2003
OCT 2002
Phase I – Launch & Management Buy-In
JUN 2004
APR 2005
GB Training to In-house
L/6 Office Established
3rd Ceremony, 500th person trained to date at ARDEC
Phase II – Full Scale Deployment
Phase III – Self Sustain for Continuous Improvement
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Operation Levels
ARDEC L/6 Board
Executive Champions
Black Belts
Green Belts
Team Members
Master Black Belts/L6 Comp Office
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ARDEC Process/EBB Project Map
Enterprise Excellence
• Business Development• Configuration Mgmt• IPT/PM• System Engineering• Rapid Prototyping• Modeling & Sim
• Process Management• Budgeting Process• Funds Flow• Strategic Management• Technology Transfer• Workforce Development• Procurement
L/6s Competency
OfficeCustomer
ARDEC Mission Aiding Processes
ARDEC Mission Critical Processes
EE
EE
EE
EE
EE
EE
EE
EE
EE
EE
EE
EE
EE
CI
CI
CI
CI
CI
CI
CI
DT
RB
RB
RB
DT
TT
TT
TT
RP
RP
RP
Customer Integration
Rapid Battle-types
Disruptive Technology
Technology Transfer
Resource Planning
Enterprise ExcellenceEBB Projects
EE
CI
RB
DT
TT
RP
QMS
• Training• Consulting• Deployment
VOC
• Program Management• Funding
Products• Innovation & Engineering• Technology Transition• High Quality Products & Services
DisciplineAdaptabilitySpeed
Label signifies Executive Black Belt (EBB) Projects that impact ARDEC Processes
VOC
CI
CI
CI
CI
CI
CI
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Executive BB Projects
• ARDEC Enterprise Excellence– Integration of E2 (QMS, Lean/SS, VOC) with
ARDEC Strategic Plan and Development of the ARDEC E2 Deployment Plan
• ARDEC Requirements to Execution Framework & Integrated Prioritization Process– Process for prioritizing and allocating
ARDEC resources consistent with ARDEC strategic plan and customer requirements
• Rapid Battletypes– Identify opportunities to quickly deploy
innovative solutions directly to the soldier
• Enterprise Resource Planning– Increase customer satisfaction across all
users that access financial reporting
• ARDEC Technology Transition– Increase technology transitions from
ARDEC tech base to PEO/PM for fielding
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Some L/6 Success Stories• M795 155mm Artillery Projectile Quality
– Reduced Critical Defects from 5.0% to 0.5%– $250K Annual Cost Avoidance– Safety Risk Reduction
• Smart/Precision Munitions Development– Increased use of Modeling & Simulation and Lab
Testing for Risk Reduction– $35M Cost Avoidance through Reduced Excalibur
Ballistic Testing• PAX-2A Insensitive Explosive Quality
– Increased Yield from 13% to ~ 100%– $169M Potential Life Cycle Cost Avoidance
• PAX-2A Explosive Large-Scale Production– Developed Alternate Large-scale Manufacturing
process – Cost reduced from $65/lb. to $30/lb.
(Savings: $349M lifecycle Army-wide)– Implementation on next contract
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Some L/6 Success Stories (continued)
• Tank Training Ammunition Joint Reliability– Process Re-design– $6-14M Annual Cost Avoidance
• Artillery Ammunition Digital X-Ray Equipment – Integrated Contractor & Government’s Approval
Processes – 6 Months Reduced to 4 Months (Savings: $120K)
• M734A1 Mortar Fuze Production Yield– Analysis identified Design Deficiency– Re-design Reduced Scrap from 5.0% to 0.1%
(Savings: $50K/month)• 120mm Mortar Fin Malfunction Investigation
– Developed Corrective Actions to Release Suspended Mortar Ammunition (Stockpile worth $200M)
– Reduced Risk in Future Procurements
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Some On-Going L/6 Projects
• Green Small Caliber Ammunition
– Elimination of Lead – Environmentally Friendly
– Producibility of Tungsten-Tin• Missile/Artillery Grenade Fuze
Removal– New Fuze Meets UXO
Requirements– Grenade Recapitalization– Estimated Savings of
$41.5M
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Some Administrative L/6 Success Stories
• Excalibur/TCM Procurement Acquisition Lead Time
– 54% Reduction• Insensitive Munitions Waiver Process
– Streamlined Approval Process– 2+ year cycle Reduced to 7 Months
• ECP Review & Approval– Cycle Time Compliance Increased from 89 to 100%
• New-hire Integration– $78K Estimated Yearly Savings
• Printer Cartridge Recycling
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PAX-2A Explosive Quality
Improve the yield of PAX-2A Manufacture at Lab-Scale by developing an alternate mix process that meets high-speed LAP requirements.
Type
X Engineering
Production
Business
Management
QQuality or Customer Satisfaction Co$$t
Alternate slurry mix process developed that meets minimum bulk
density requirements of 0.85 g/ccBenefited from other Q$SR areas
Benefited from other Q$SR areas
Production yield potential of 100%, up from the original mix process less than 30%. This paves the way for Large-Scale
production of PAX-2A.
SSchedule RRisk
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M80/PAX-2A High-Speed Load, Assemble & Pack (LAP)
Increase the yield of “LAP-compatible” PAX-2A explosive production and increase the production rate of Dual-Purpose Improved Conventional Munitions (DPICM) between maintenance cycles.
Type
Engineering
X Production
Business
Management
QQuality or Customer Satisfaction Co$$t
•PM-CAS (sponsor) indicated this effort will allow achievement of strategic goals.Increase Manufacturing yield from 13% to 50%Grenade Penetration increase of 25%Reduced Product variation- increased SPCIncreased required cone push-out force by 200%
Reduce PAX-2A Unit Cost from $132/lb to $68/lbReturn on $1.5M Program Capital investment$1.2B Future Cost Savings to Potential PAX-2A Customers for Manufacture/LAPAssets saved in ASP from enemy fireGrenade LAP cost savings of $5.41/unit
M915 Cartridge MR in 1QFY05 with IM enhancement Load & Preserve Grenades in FY02-03 under current FY97/98 LRIP contractConduct Accelerated PQT Effort by 4 MonthsImpact GMLRS/M864 RECAP Projects
Significantly Reduced Program Risk to PM-CAS managed M915 and future DPICM Artillery programs for IM insertionSignificantly increased potential for mission successIncreased survivability of engaged troops
SSchedule RRisk
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Procurement Acquisition Lead Time (PALT)
Combined the two existing PALT processes into one streamlined (Alpha) process for XM982.
Type
Engineering
Production
X Business
Management
QQuality or Customer Satisfaction Co$$t
PM-CAS (sponsor) ecstatic in that existing schedules were high risk in meeting DA requirements.
Cost avoidance of $12 M, based on a minimum saved effort of four months.
VE Validated Savings: $8.9 M
Combined the quasi-concurrent 24-month Army PALT and the 24-month International PALT processes into a single 11 month Alpha contracting effort.
Significant risk reduction in meeting DA directed milestones for the XM982 program. The reduced PALT time eliminates a high risk factor in the program.
SSchedule RRisk
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The E2 Framework
QMSVoC
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Lean
Culture
EfficiencyEffectiveness
Reqm’ts
Concepts from paper by VSE Corp.
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Why Change to “Lean/Six-Sigma Way of Doing Business”?
• ARDEC Reorganization led to Transformation from a Traditional Product-Driven Structure to an Integrated ‘Continuous Measurable Improvement’ Process-Driven Way of Doing Business
• Positive Impact Obtaining Faster, More Comprehensive, Fact Based Solutions in support of GWOT, OIF, OEF
• Need to Promote Enterprise Excellence (QMS, L/6, VOC)
– A disciplined, structured approach for process and product optimization that is focused on the effectiveness' and efficiency bottom line of the organization
Perform
Asse ssment
Lean
Process
Improve Effectiveness
Six -Sigma
Project
Process
Six -Sigma
Process
Control
Six -Sigma
Process
Improvement
Perform
Asse ssment
Quality
Management
System
Management
Improve Efficiency
Improve Customer Satisfaction
Q$SR
E2
Lau
nch
Q$SR Perform
Asse ssment
Q$SR
E2In
tegr
ation
Q$SR
Improved Organization
Lean
Workload
Balancing
Lean
Metrics
Perform
Asse ssment
Metrics
Voice of the
Customer
L/6
DFL/6
E2
Perform
Asse ssment
Lean
Process
Improve Effectiveness
Six -Sigma
Project
Process
Six -Sigma
Process
Control
Six -Sigma
Process
Improvement
Perform
Asse ssment
Quality
Management
System
Management
Improve Efficiency
Improve Customer Satisfaction
Q$SR
E2
Lau
nch
Q$SR Perform
Asse ssment
Q$SR
E2In
tegr
ation
Q$SR
Improved Organization
Lean
Workload
Balancing
Lean
Metrics
Perform
Asse ssment
Metrics
Voice of the
Customer
L/6
DFL/6
E2
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ARDEC Lean/Six-SigmaTake-a-Ways
• Needs to be Driven from Top Management for an Effective Organizational Culture Change– Assure L/6 Projects are Properly Aligned to Customer Requirements– Provides resources and commitments
• ARDEC L/6 Competency Office Provides: – Centralized Management– Organic GB Consulting & Training Activities
• VSE Partnership Still Essential– Limited Black Belt Pool (Black Belt Distributed to Organization)
• All Phases of the Acquisition Life Cycle and All Business Processes Offer Opportunities for Improved Effectiveness & Efficiency
• L/6 is a Fundamental Component of ARDEC’s Enterprise ExcellenceSM – Structured and Disciplined Approach to Meet Mission Objectives
• Lean/Six Sigma is a Commercial Best Practice that is Providing the Army Meaningful Savings … Every Quality, Reliability and Process Improvement Equates to Real Dollars!!
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