1 U.S. ARMY ARMAMENT RESEARCH, DEVELOPMENT AND ENGINEERING CENTER (ARDEC) LEAN/SIX-SIGMA 20 September 2005 Presented to Presented to 2 2 nd nd National Energy & Environmental Conferenc National Energy & Environmental Conferenc PAUL E. CHIODO PAUL E. CHIODO Director, Quality Engineering & System Director, Quality Engineering & System Assurance, RDECOM-ARDEC Assurance, RDECOM-ARDEC Chair, AMC Quality Federation Chair, AMC Quality Federation Certified Lean/Six Sigma Master Black Certified Lean/Six Sigma Master Black Belt Belt
19
Embed
U.S. ARMY ARMAMENT RESEARCH, DEVELOPMENT AND ENGINEERING ...
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
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
2
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!
3
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!
4
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
5
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)
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$$t
Alternate slurry mix process developed that meets minimum bulk
density requirements of 0.85 g/ccBenefited from other Q$SR areas
Benefited from other Q$SR areas
Production yield potential of 100%, up from the original mix process less than 30%. This paves the way for Large-Scale
production of PAX-2A.
SSchedule RRisk
15
M80/PAX-2A High-Speed Load, Assemble & Pack (LAP)
Increase the yield of “LAP-compatible” PAX-2A explosive production and increase the production rate of Dual-Purpose Improved Conventional Munitions (DPICM) between maintenance cycles.
Type
Engineering
X Production
Business
Management
QQuality or Customer Satisfaction Co$$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
16
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: $8.9 M
Combined the quasi-concurrent 24-month Army PALT and the 24-month International PALT processes into a single 11 month Alpha contracting effort.
Significant risk reduction in meeting DA directed milestones for the XM982 program. The reduced PALT time eliminates a high risk factor in the program.
Why Change to “Lean/Six-Sigma Way of Doing Business”?
• ARDEC Reorganization led to Transformation from a Traditional Product-Driven Structure to an Integrated ‘Continuous Measurable Improvement’ Process-Driven Way of Doing Business
• Positive Impact Obtaining Faster, More Comprehensive, Fact Based Solutions in support of GWOT, OIF, OEF
• Need to Promote Enterprise Excellence (QMS, L/6, VOC)
– A disciplined, structured approach for process and product optimization that is focused on the effectiveness' and efficiency bottom line of the organization
Perform
Asse ssment
Lean
Process
Improve Effectiveness
Six -Sigma
Project
Process
Six -Sigma
Process
Control
Six -Sigma
Process
Improvement
Perform
Asse ssment
Quality
Management
System
Management
Improve Efficiency
Improve Customer Satisfaction
Q$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
19
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
• 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!!