1 E A N L NAVSEA Lean Transforming the Way We Work Presented by Mr. Jim Brice SEA TFL 18 Nov 2005
1
E A NL
NAVSEA LeanTransforming the Way We Work
Presented by
Mr. Jim Brice
SEA TFL
18 Nov 2005
2
E A NLNAVSEA Lean Journey
Organizational Level
Connected to Local Value Streams
5 % of the Business
2001-2003 2004-mid 2005 mid 2005-2007
NUWC KEYPORT
SUPSHIP SAN DIEGO
Maine
Pennsylvania
NSWC Ship Systems EngineeringStation
Washington
Indiana
NSWC CRANE
SUPSHIP BATH
PUGET SOUND NSY & IMF
NAVAL SEA SYSTEMS COMMANDShore Activities
California
Naval Sea Systems Command (NAVSEA)Naval Shipyard (NAVSHIPYD)Supervisors of Shipbuilding (SUPSHIP)Surface Warfare Center (NSWC)Undersea Warfare Center (NUWC)Other NAVSEA ActivitiesActivities Managed by PEOs
Guide
Virginia
Washington DC
NAVSEA HQ & PEOs
NSWC CARDEROCK
Maryland
ConnecticutRhode Island
NUWC HQSUPSHIP GROTON
New Jersey
AEGIS Technical Rep
NAVSHIPYD NORFOLK
Florida
Mississippi
SUPSHIP JACKSONVILLENSWC Coastal Systems Station Naval Experimental Diving Unit
SUPSHIP GULF COAST
South Carolina
Naval Nuclear PowerTraining Unit
New Hampshire
NAVSHIPYD PORTSMOUTH
As of Apr 04
Organizational changes in process
PEARL HARBOR NSY & IMF
SUPSHIP PUGET SOUND
NSWC CORONA
NSWC PORT HUENEME
Naval Sea Logistics Center
NUWC NEWPORT
Submarine Maintenance Engineering, Planning & Procurement
NSWC HQ
NSWC INDIAN HEAD Naval Ordnance Safety &
Security ActivityNaval Explosive Ordnance
Disposal Technology Div
SUPSHIP PORTSMOUTH
SUPSHIP NEWPORT NEWSNSWC DAHLGREN
NSWC Combat Direction Systems Activity
Surface Combat SystemsCenter
SEASPARROW ProjectSupport Office
2003
3
E A NLNAVSEA 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
NUWC KEYPORT
SUPSHIP SAN DIEGO
Maine
Pennsylvania
NSWC Ship Systems EngineeringStation
Washington
Indiana
NSWC CRANE
SUPSHIP BATH
PUGET SOUND NSY & IMF
NAVAL SEA SYSTEMS COMMANDShore Activities
California
Naval Sea Systems Command (NAVSEA)Naval Shipyard (NAVSHIPYD)Supervisors of Shipbuilding (SUPSHIP)Surface Warfare Center (NSWC)Undersea Warfare Center (NUWC)Other NAVSEA ActivitiesActivities Managed by PEOs
Guide
Virginia
Washington DC
NAVSEA HQ & PEOs
NSWC CARDEROCK
Maryland
ConnecticutRhode Island
NUWC HQSUPSHIP GROTON
New Jersey
AEGIS Technical Rep
NAVSHIPYD NORFOLK
Florida
Mississippi
SUPSHIP JACKSONVILLENSWC Coastal Systems Station Naval Experimental Diving Unit
SUPSHIP GULF COAST
South Carolina
Naval Nuclear PowerTraining Unit
New Hampshire
NAVSHIPYD PORTSMOUTH
As of Apr 04
Organizational changes in process
PEARL HARBOR NSY & IMF
SUPSHIP PUGET SOUND
NSWC CORONA
NSWC PORT HUENEME
Naval Sea Logistics Center
NUWC NEWPORT
Submarine Maintenance Engineering, Planning & Procurement
NSWC HQ
NSWC INDIAN HEAD Naval Ordnance Safety &
Security ActivityNaval Explosive Ordnance
Disposal Technology Div
SUPSHIP PORTSMOUTH
SUPSHIP NEWPORT NEWSNSWC DAHLGREN
NSWC Combat Direction Systems Activity
Surface Combat SystemsCenter
SEASPARROW ProjectSupport Office
NUWC KEYPORT
SUPSHIP SAN DIEGO
Maine
PennsylvaniaNSWC Ship Systems Engineering
Station
Washington
Indiana
NSWC CRANE
SUPSHIP BATH
PUGET SOUND NSY & IMF
NAVAL SEA SYSTEMS COMMANDShore Activities
California
Naval Sea Systems Command (NAVSEA)Naval Shipyard (NAVSHIPYD)Supervisors of Shipbuilding (SUPSHIP)Surface Warfare Center (NSWC)Undersea Warfare Center (NUWC)Other NAVSEA ActivitiesActivities Managed by PEOs
Guide
Virginia
Washington DC
NAVSEA HQ & PEOs
NSWC CARDEROCK
Maryland
ConnecticutRhode Island
NUWC HQSUPSHIP GROTON
New Jersey
AEGIS Technical Rep
NAVSHIPYD NORFOLK
Florida
Mississippi
SUPSHIP JACKSONVILLENSWC Coastal Systems Station Naval Experimental Diving Unit
SUPSHIP GULF COAST
South Carolina
Naval Nuclear PowerTraining Unit
New Hampshire
NAVSHIPYD PORTSMOUTH
As of Apr 04
Organizational changes in process
PEARL HARBOR NSY & IMF
SUPSHIP PUGET SOUND
NSWC CORONA
NSWC PORT HUENEME
Naval Sea Logistics Center
NUWC NEWPORT
Submarine Maintenance Engineering, Planning & Procurement
NSWC HQ
NSWC INDIAN HEAD Naval Ordnance Safety &
Security ActivityNaval Explosive Ordnance
Disposal Technology Div
SUPSHIP PORTSMOUTH
SUPSHIP NEWPORT NEWS
NSWC DAHLGREN
NSWC Combat Direction Systems Activity
Surface Combat SystemsCenter
SEASPARROW ProjectSupport Office
2003
2005
4
E A NLNAVSEA 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
NUWC KEYPORT
SUPSHIP SAN DIEGO
Maine
Pennsylvania
NSWC Ship Systems EngineeringStation
Washington
Indiana
NSWC CRANE
SUPSHIP BATH
PUGET SOUND NSY & IMF
NAVAL SEA SYSTEMS COMMANDShore Activities
California
Naval Sea Systems Command (NAVSEA)Naval Shipyard (NAVSHIPYD)Supervisors of Shipbuilding (SUPSHIP)Surface Warfare Center (NSWC)Undersea Warfare Center (NUWC)Other NAVSEA ActivitiesActivities Managed by PEOs
Guide
Virginia
Washington DC
NAVSEA HQ & PEOs
NSWC CARDEROCK
Maryland
ConnecticutRhode Island
NUWC HQSUPSHIP GROTON
New Jersey
AEGIS Technical Rep
NAVSHIPYD NORFOLK
Florida
Mississippi
SUPSHIP JACKSONVILLENSWC Coastal Systems Station Naval Experimental Diving Unit
SUPSHIP GULF COAST
South Carolina
Naval Nuclear PowerTraining Unit
New Hampshire
NAVSHIPYD PORTSMOUTH
As of Apr 04
Organizational changes in process
PEARL HARBOR NSY & IMF
SUPSHIP PUGET SOUND
NSWC CORONA
NSWC PORT HUENEME
Naval Sea Logistics Center
NUWC NEWPORT
Submarine Maintenance Engineering, Planning & Procurement
NSWC HQ
NSWC INDIAN HEAD Naval Ordnance Safety &
Security ActivityNaval Explosive Ordnance
Disposal Technology Div
SUPSHIP PORTSMOUTH
SUPSHIP NEWPORT NEWSNSWC DAHLGREN
NSWC Combat Direction Systems Activity
Surface Combat SystemsCenter
SEASPARROW ProjectSupport Office
NUWC KEYPORT
SUPSHIP SAN DIEGO
Maine
PennsylvaniaNSWC Ship Systems Engineering
Station
Washington
Indiana
NSWC CRANE
SUPSHIP BATH
PUGET SOUND NSY & IMF
NAVAL SEA SYSTEMS COMMANDShore Activities
California
Naval Sea Systems Command (NAVSEA)Naval Shipyard (NAVSHIPYD)Supervisors of Shipbuilding (SUPSHIP)Surface Warfare Center (NSWC)Undersea Warfare Center (NUWC)Other NAVSEA ActivitiesActivities Managed by PEOs
Guide
Virginia
Washington DC
NAVSEA HQ & PEOs
NSWC CARDEROCK
Maryland
ConnecticutRhode Island
NUWC HQSUPSHIP GROTON
New Jersey
AEGIS Technical Rep
NAVSHIPYD NORFOLK
Florida
Mississippi
SUPSHIP JACKSONVILLENSWC Coastal Systems Station Naval Experimental Diving Unit
SUPSHIP GULF COAST
South Carolina
Naval Nuclear PowerTraining Unit
New Hampshire
NAVSHIPYD PORTSMOUTH
As of Apr 04
Organizational changes in process
PEARL HARBOR NSY & IMF
SUPSHIP PUGET SOUND
NSWC CORONA
NSWC PORT HUENEME
Naval Sea Logistics Center
NUWC NEWPORT
Submarine Maintenance Engineering, Planning & Procurement
NSWC HQ
NSWC INDIAN HEAD Naval Ordnance Safety &
Security ActivityNaval Explosive Ordnance
Disposal Technology Div
SUPSHIP PORTSMOUTH
SUPSHIP NEWPORT NEWS
NSWC DAHLGREN
NSWC Combat Direction Systems Activity
Surface Combat SystemsCenter
SEASPARROW ProjectSupport Office
2003
2005
Maturing-Growing-Connecting
5
E A NLTask Force Lean (TFL) Implementing Lean Six Sigma across the Diverse
NAVSEA/PEO Enterprise – 30 Organizations Key Objectives
World Class Performance – Safety, Quality, Reliability Improve Productivity and Return on Investment Mainstream Lean into the Line Organizations Delight Customers and Employees
Navy’s Burning Platform Current Capability – Cost-wise Fleet Readiness Future Capability – Build More Ships and Planes
Culture of Continuous Process Improvement
6
E A NLLean – 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
ProblemSolving
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
E A NLLean 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
E A NLHWT Torpedo Lean Cost Reduction
Heavyweight Torpedo Lean Savings
1568
0
200
400
600
800
1000
1200
1400
1600
1800
Months
FY
07 C
ost
Red
uct
ion
($K
)
Cumulative Dollar Savings Goal
Afterbody RIE (Completed)
Load / Disassembly RIE (Completed)
Warshot RIE (CRR Pending)
Nose Array RIE (Completed)
Production Control RIE (CRR Pending)
Value Stream Target FY07 Cost Reduction of $1375K
9
E A NLNAVSEA/PEO EPS
Goal Reduce Costs by $250M in FY 07 Across all of NAVSEA/PEO In Addition to Intelligent Targets
Lean Implementation Plan Issued by Formal Letter 14 Jan 05
Initial Value Streams Surface System Combat Systems Product Area 688 Class Major Availabilities Torpedo Maintenance (PEO Sponsored) Engineering (LOB) Support to Current Navy
N A VS E A S
ub
s
Ca
rrie
rs
Gu
ns
Sy
ste
ms
Mis
sile
s/
To
rp.
Su
rf
Sh
ips
P E OC V
P E OIW S
P E OL M W
P E OS H IP S
P E OS U B
B u i l d & B u y I n - S e r v i c e / L e g a c y S u p p o r t
I n i t i a l V a l u e S t r e a m s
N u c l e a r P r o p u l s i o n
H u m a n S y s t e m s I n t e g r a t i o nW a r f a r e S y s t e m s E n g i n e e r i n g
S h i p D e s i g n , I n t e g r a t i o n & E n g i n e e r i n g
U n d e r s e a W a r f a r e E n g i n e e r i n g
E N G I N E E R I N G
M a i n t e n a n c e / L o g i s t i c s
S U P S H I P N e w C o n s t r u c t i o nS U P S H I P R e p a i r – t r a n s f e r t o R M C
S h i p y a r d s
I N D U S T R I A L O P E R A T I O N S
C o m m a n d O p s / I TC o n t r a c t i n g
C o s t E n g i n e e r i n gF M / C o m p t r o l l e r
B U S I N E S S O P E R A T I O N S
1 2 A l i g n e d P r o d u c t A r e a s a c r o s s t h e N A V S E A W a r f a r e C e n t e r s
T E C H N I C A L O P E R A T I O N S
L I N E S O F B U S I N E S S
E A NL
10
E A NL
Establishes Formal, Disciplined, Standard Process for Change
Strong Alignment and Support
11
E A NLMajor Value Streams Technical Operations
AEGIS, SSDS, ACDS, Small Arms, Mk125 Ordnance, Ranges, Torpedoes, Periscopes, Large Scale Model Testing, Electronic Warfare Systems, Financial Management, Procurement, Plant Maintenance, IT
Shipyards CVN, SSN, SSBN CNO Avails; Project Mgt; Cranes; Trng
Logistics and Maintenance SCN Outfitting, Calibration, Configuration Mgt, JEDMICS, RADIAC
Engineering Remote Monitoring, MGT, Paint Teams, Environmental, LCS Naval Vessel Rules,
SUBSAFE Processes
Business & Ops Financial Execution and Contracting, IT Support
PEOs CVN 77 Const, CVN 21 Design, Mine Warfare, MSMO, Common Logistics, VA
Class Const, Working with WC Value Streams
Over 100 VSAs Engaging
Major Value Streams
Almost $8B in Value – FY05
12
E A NL
12390
118
24
99
97
119
29
0
200
400
600
800
1000
1200
1400
1600
1800
2000O
ct-
04
Nov-0
4D
ec-0
4Jan-0
5
Feb-0
5M
ar-
05
Apr-
05
May-0
5
Jun-0
5Jul-05
Aug-0
5
Sep-0
5O
ct-
05
Nov-0
5D
ec-0
5
Jan-0
6F
eb-0
6M
ar-
06
Apr-
06
May-0
6
Jun-0
6Jul-06
Aug-0
6
Sep-0
6
FY
05In
FY
05
FY
06
FY
07
Nu
mb
er
of
RIE
s &
Pro
jec
ts
$0
$50
$100
$150
$200
$250
$300
$350
$400
Inve
stm
ent
/ Co
st R
edu
cti
on
in M
illio
ns
The Lean Deployment Model Vs Actual
CRRs - Lean
CRRs - Other
Implementation Plan Model
Number of RIEs & Projects (Actual)
Number of RIEs & Projects (Projected)
Actual
Model
Investment - Lean
Investment - Other
CostReduction
FY05, 06, 07($ Millions)
FY05 Investment($ Millions)
13
E A NL
All Employees
• Provide data and voice of customer inputs to VSA, RIE, and Projects
• Apply concepts to their own jobs and work areas
• Owns vision, direction, business results• Leads change• Allocates Resources• Owns Value Streams
• Owns Rapid Improvement Plan
• Owns Redeployment Plan
• Owns financial results• Removes Barriers
• Experts on principles and tools
• Leads larger projects • Coaches Green Belts• Full-time position
• Lead small-moderate projects
• Support Rapid Improvement Teams
• Full time or part time role
• RI Team or Project specific support
• Part time
• Heads Lean Office• Owns Deployment Plan• Owns Communication
Plan• Captures Metrics
Lean ChampionLean ChampionValue StreamValue Stream
ChampionsChampions
TeamTeamMembersMembers
ExecutiveExecutive LeadershipLeadership
Green BeltsGreen Belts
Black BeltsBlack Belts
• Trains Black Belts / Green Belts
• Leads Complex Projects • Full-time position
MasterMasterBlack BeltsBlack Belts
Team LeadersTeam Leaders
•RI Team or Project specific support•Part-time
Lean Deployment Roles
Model taken from “Lean Six-Sigma” by Michael George
166
1
746
19,773 Basic Training
1015
ALL
14
E A NLBlack Belt Graduating Class
BB Trained & Practicing 100
BB in Training 59
Total by end of FY 05 159
NAVSEA/PEO Organizations Total NAVSEA/PEO Organizations TotalWCs LOB - NSWC/NUWC Ind Ops LOB - SEA 04Carderock Division 1 Norfolk NSY 3 Philadelphia 1 Pearl Harbor NSY&IMF 2CRANE Division 2 SUPSHIP Bath 1DAHLGREN Division 8 SUPSHIP Newport News 1 Panama City 6 NSRO Norfolk 1 Dam Neck 1 NSRO Puget 1INDIAN HEAD Division 11 Ind Ops Total 9PORT HUENEME Division 1 Engineering LOBKEYPORT Division 3 SEA05 1NEWPORT Division 2 SUBMEPP 1
WC Total 36 ELOB Total 2Bus&Ops LOB Fleet PartnersSEA 00I 1 MARMC 4
Bus&Ops Total 1 RMC Total 4GRAND TOTAL 52
15
E A NLContinuous 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
E A NLEmployee Participation
Power of Lean Approach – Drives the Culture Change Teams of People Who Do the Work Define Current & Future State – Make the Process Changes
Seeing Results Private Industry – ROIC Navy – Readiness per Invested Capital – Hard to Measure
Motivation Challenge Private Industry – Growth Navy – Getting Smaller
Command Pledge No One Will Lose Employment Due to Lean Efforts
17
E A NL
SUBMARINE OVERHAUL
Multiple Value StreamsMultiple Value Streams
• Improved Process Flow• Created Visual Controls • Contingent Repair Instructions• Continuous Improvement
PNS Ball Valve Repair:
• Machine Fixturing• Workplace 5S• Satellite Epoxy Work Cell• Standard Work Instructions
Model Line
PNSY - Ball Valve RepairPNSY - Ball Valve Repair
18
E A NLPNSY - Ball Valve RepairPNSY - Ball Valve Repair
““Implementation of Lean Manufacturing Techniques in the Ball Valve Shop is 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 the first and most mature example of a process that is the best in class at PNS and throughout NAVSEA.” PNS and throughout NAVSEA.”
- Inspector General Report, March 2004- Inspector General Report, March 2004
Average Ball Valve Cycle Time per QuarterAverage Ball Valve Cycle Time per Quarter
Quarter Quarter 1 2 3 4 1 2 3 4 1 2 1 2 3 4 1 2 3 4 1 2
Cycle Time (days)Cycle Time (days) 208 176 148 140 100 82 61 53 54 45208 176 148 140 100 82 61 53 54 45
FY 2002FY 2002 FY 2003FY 2003
Goal = 20 DaysGoal = 20 Days
FY 2004FY 2004
95% Decrease in Overtime Hours95% Decrease in Overtime Hours
28% Increase in Throughput28% Increase in Throughput
92% Increase in Productivity per Labor Hour92% Increase in Productivity per Labor Hour
60% Improvement in Cycle Time60% Improvement in Cycle Time
Process Improvements FY 2002 - FY 2004Process Improvements FY 2002 - FY 2004
19
E A NLSSN DMP Value Stream Analysis
PlanPlanning & Support VSA
Work Scoping
Job Summary Development
Material Ordering
TWD Writing
Work Packaging
Multiple Value Streams
IsolateTemp Services VSA
Temp Services Kitting
System Take-Down VSA
Re-InstallSystem Turn Back VSA
Problem Resolution
Material Kitting
TestOperational Test Planning
TWD Certification
Improving Engineering & Planning Performance
Improving Tank Maintenance & RepairImproving Crane
Availability
Electroplating
Portal and Bridge Crane Maintenance
Tank VSA
Tank Inspection / Cleaning
Sea Water Sys VSA
Rip-Out & RepairStaging Set Up
Hose Fabrication
Ball Valves
Shafts
Hydraulics
Bench Machining
Structural Fab
Focus areas to date…
20
E A NLPSNS & IMFEngineering Planning & Support Services
Material Ordering Cell Projected Improvement92% 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 Improvement75% 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 DPIAFY05: 37 people redeployed to other critical work
Total Cost Reductions for Entire Value Stream
21
E A NLPSNS & IMF
Lifting and Handling
Portal CranesReduced Crane Maintenance from 98 to 37 Days
Reduced Overtime Costs from $180K to $0
Portal Crane Annual Maintenance Savings $960K/Year
Increased Crane Availability has Allowed for Net Reduction of 2 Category I Portal Cranes
New Portal Crane procurement Cancelled
Inventory Reduction Applied to Movement of 2 Portal Cranes to IMF Cost Avoidance FY 2010 $25M
Bridge Cranes Category II Bridge Crane Savings $400K/YR
88% Reduction in Maintenance Cycle Time from 30 to 7 days
Eliminated Work Backlog
22
E A NLPSNS & IMF
Tank Maintenance & Repair
Value Stream Map (Current State, Jul 04)
Sample Results:Ballast tanks• Open thru wash (688CL): 4 days (vice 3-4 wk avg)• Open thru paint (726CL): 138 days (baseline: 281)
Reserve feed tanks• Blasting (CVN): 47% mhr reduction (720 to 380)• Painting flow time (688CL): Avg savings = 30 days (down from 52 to 22)
OPEN/CLEAN
BLAST PAINT RE-INSTALL
CLOSURESTAGE INSPECT RIPOUT REPAIR BLASTPROTECT
1 SP5
1 SP5
1 SP5
1 SP5
1 SP5
1 SP5
1 SP5
1 SP5
1 SP5
1 SP5
Lean Flow Cells Developed and Implemented
Improvements made:• Restructured & standardized work sequence for flow
• Assembled cross-functional Cell teams
• Cells flow continuously through the tanks
23
E A NLPNSY – SSN 720 EOH – TGI Flow
Boeing Moving Line SSN 720 TGI Flow
Fundamental Change in Ship Availability Management
Multiple Value Streams
24
E A NL
Key Actions Implemented
• TGI Supermarket to Control WIPTGI Supermarket to Control WIP
• Shipboard Engineering Trouble DeskShipboard Engineering Trouble Desk
• Dockside Material Consumables TrailerDockside Material Consumables Trailer
• Improvements in Communication & CoordinationImprovements in Communication & Coordination
SSN 720 EOH Metrics
Equivalent Metrics at Three Months into the Availability
Projected Cost Reduction: $22M
Metric SSN 719 EOH SSN 720 EOH Percent Imp
Avg No of People 440 346
Avg TGI WIP 785 551
Jobs Complete 1304 1163
Avg Job Cycle Time 13 Days 8 Days
Cost Performance 0.97 1.04
25
E A NL
Carrier Carrier NVSNVS
Project Project Management NVSManagement NVS
Platform NVS (Tier-One)Platform NVS (Tier-One)
Lifting & Handling Lifting & Handling NVSNVS
Resource Resource Management NVSManagement NVS
Industrial Process Industrial Process NVSNVS
Training NVSTraining NVS
Material NVSMaterial NVS
Pro
ces
s/F
un
cti
on
al N
VS
(T
ier-
Tw
o)
Pro
ces
s/F
un
cti
on
al N
VS
(T
ier-
Tw
o)
SSN 688 SSN 688 NVSNVS
SSBN/SSGN SSBN/SSGN NVSNVS
Standardizing Across PlatformsStandardizing Across Platforms
Sta
nd
ard
izin
g A
cro
ss
S
tan
da
rdiz
ing
Acr
os
s
NS
Ys
NS
Ys
(1) Integrating & Aligning (1) Integrating & Aligning
(2) Creating Accountability(2) Creating Accountability
National Value Stream (NVS) Network
Shipyards
Structural920
Machine930
Electrical950
Piping960
Service970
Key
/Sup
port
Pro
cess
esB
ud
ge
t; S
che
du
le;
Pa
pe
r; M
ate
rial
FY06 Lean Execution Strategy:
SSN CVN SSBN/GN
“Just in Time”Delivery
Example:Submarine
Structural FabCost Reductions
FY05 $0KFY06 ~$575KFY07 ~$767K
Cost ReductionsFY05 ~$444KFY06 ~$455KFY07 ~$468K
Cost Reductions Submitted Reported (To-Date) FY05 FY06 FY07 3-Year Total
Cost Reductions: $10.8 M $11.4 M $12.7M $34.9 MillionRedeployment: 75 MPD 39 MPD 26 MPD 140 Men Per Day
• 21 Black Belts; 42 Green Belts - 14 Value Stream Analyzed - 58 Rapid Improvement Events - 16 Projects
DrivingDown
Cost$$$
Example:Supply Chain
CostPerformance
SchedulePerformance
QualityPerformance
SafetyPerformance
eee aaa nnnLLL eee aaa nnnLLL
Core Mission
USS HAMPTON (SSN-767) FY05 DMP USS CHARLOTTE (SSN-766) FY06 DMP
USS TRUMAN (CVN-75) FY06 DPIA
FY06 FY07
USS GEORGIA (SSBN-729) FY05 ERO/CONV USS ALASKA (SSBN-732) FY07 ERO
NNSY Process Improvement Program:“Transforming to Better Support the Fleet”
FY05 Lean Execution Summary:
Supportingthe Work
Executingthe Work
Support
1. Hotwork/Firewatch, C920
2. New Work, C1200
3. Resource Allocation, C900
4. Prioritization, C300
5. Topside Work Control, C246
6. Supervision/DSS, C900P
Execution MDs1. Shafting, C930 9K2. Hull/Sea Valves, C930 4.7K
Reboiler Retube, C930 3.1K3. Blow Down Trunks, 970 3.4K4. Reserve Feed Tanks, C970 5K5. A/C Conversion, C960 11K6. Smart Carrier, C950 9K
Focused Initiatives to Get There:
Norfolk Naval Shipyard Lean Transformation:“Providing More Maintenance for the Manday”
Bottom Line To Customer:Customer: ____MD reduction or “more work” NNSY NOR: Improved CP & FP Performance
Cost Performance(against barebones)
Schedule Performance(against CNO completion date)
920(structural)
930(Machine)
950(Electrical)
960(Piping)
970(Service)
7 K
ey
Pro
cess
es14
Sup
port
Pro
cess
es
CVN-68 Class Avails
CostPerformance
SchedulePerformance
QualityPerformance
SafetyPerformance
DrivingDown
Cost$$$
eee aaa nnnLLL eee aaa nnnLLL
USS TRUMAN (CVN-75) FY06 DPIA
Cost Schedule Quality Safety
WorkingToward
FRE
WorkingToward
FRE0.95
0.96
0.97
0.98
0.99
1.00
1.01
1.02
1.03
CVN-73FY98DPIA
CVN-71FY00PIA
CVN-73FY01PIA
CVN-75FY01PIA
CVN-71FY02PIA
CVN-73FY03PIA
CVN-75FY03PIA
CVN-71FY04DPIA
Scheduled Delivery
0.90
1.031.05
1.07
0.97
0.900.94
0.86
0.70
0.80
0.90
1.00
1.10
1.20
1.30
CVN-73
FY98DPIA
CVN-71
FY00PIA
CVN-73
FY01PIA
CVN-75
FY01PIA
CVN-71
FY02PIA
CVN-73
FY03PIA
CVN-75
FY03PIA
CVN-71
FY04DPIA
CP > .95(PMC/
Barebones)
SP > 1.0Meet or beat allMSs and KEs
20% Reduction in Deficiencies per 1000MDs
5% Reduction in Lost Workday Accident Rate
Good
Good
28
E A NLKeys to Success Engage Value Streams – Enterprise Level Focus on Results
Accomplish the RIEs and Projects – Change the Processes Redeploy People – Capture Cost Reductions
Formal Implementation Plan Roadmap – Standard / Consistent Implementation Creates Alignment and Support
Broad Focus Fundamental Business Strategy Way of Thinking – Culture Change
Training is Important – Build Self-Sufficient Infrastructure Sustained Leadership is Crucial
THINK LEAN