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Department of the NavyLean Six Sigma
Way Ahead
Nick Kunesh Special
Assistant to the Secretary of the Navy Lean Six Sigma
16 May 2007
NS
PS
LS
S
Fin
an
cia
l Im
pro
vem
en
t P
lan
NS
PS
Navy
ER
P
LS
S
DON Business Transformation
Performance Driven Better Resource Decisions
Financial Improvement Program- Auditability and Internal Controls
Processes SystemsPeople
- Measurement -
- Standardization - and Internal
Controls
Accurate, Timely, and Transparent Financial Visibility
The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening
the quality of financial information.
FY 07 DoN Budget
RDT&E13%
O&M31%
Procurement26%
M&P30%
DoN Total Obligation Authority (TOA)
$127.3B 65% is people cost
FY06 TOA$125.6B
CVN-21 DDX LCS JSF MMA V-22 ACS LPD-17 EFV LHA(R) HLR
Assign a CPI/LSS focal point to coordinate with the DoD CPI/LSS Program Office.
Establish a 12 to 18 month workforce training objective of 1% LSS black belt trained and 5% green belt trained personnel. Personnel selected should include top-rated staff members.
Include CPI/LSS in individual employee performance objectives.
Provide support to the DoD CPI/LSS Program Office in DoD-wide process improvement initiatives.
Report progress and outcomes of ongoing and completed CPI/LSS projects and activities to the DoD CPI/LSS Program Office every 30 days initially.
SECNAV Lean Six Sigma Deployment Session
27 June 2006
SECNAV CNO
Under SECNAV ACMC
ASN (RD&A) ASN (M&RA)
ASN (FM&C) ASN (I&E)
DCMC (M&RA) DCMC (I&L)
NAVSEA NAVAIR
NAVSUP NAVFAC
SPAWAR N1
N4B N80
DASN (Logistics) DASN (RDT&E)
DASN (Environment) ADC (P&R)
GC BUMED
DNS CNI COO
DoN Lean Six Sigma Three Year Action Plan
Phase I Year 1CY06
Phase II Year 2CY07
Phase III Year 3CY08
Leadership
• Leadership Kick-off and monthly progress meetings
• Balance process metrics across DoN objectives & goals
• Plan for XX% reduction in overhead through CY08
• NSPS SES / Flag fitness report bullet that recognizes LSS contributions
• Accelerate the journey for those who have started (AIRSpeed, Task Force Lean, et. al.) and report out financial results
• Start the journey with enabling service, support and transactional functions (i.e., FIN, HR, SC, IT, etc)
• Take XX% of overhead cost out of the Department
• Accelerate integration w/ industrial base and be accountable for financial harvesting
• Re-align to DoN 07 objectives & goals, and measure LSS output to DoN 06 objectives and goals
• All military and civilian performance evaluations and fitness reports recognize LSS contributions
• Take an additional XX% of overhead cost out of the Department
• Re-align to DoN 08 objectives & goals, and measure LSS output to DoN 07 objectives and goals
• Accelerate Enterprise maturity
Work Product
• High impact core value streams are identified, mapped, and all applicable personnel are prepared to DMAIC
• Accelerate Integration of organic Supply & Industrial Base with external suppliers (i.e., private industry, DLA)
• Identify where LSS applies to the Warfighter (i.e., war-game planning & events)
• Identify and clean legacy data bases for conversion to Navy ERP
• High impact core value streams are DMAIC
• Continuous Improvement of those activities that started before Jan 06
• 100% of all major Defense contracts awarded to industry will contain a LSS incentive clause
• Introduce Malcolm Baldrige criteria
• High impact core value streams are revisited
• Service, support and transactional functions are in a Continuous Improvement closed loop
• 25% of extended (with industry) value chains have been leaned out
Education and Training
• 1,000 Black Belts certified
• 2,000 Green Belts certified
• 25% of GS-15 /06 and above complete Champion training
• Synchronize LSS training body of knowledge and training methods across the DoN
• Incorporate initial LSS training into all training schools (review Officer, Enlisted & Civilian career paths)
• 1,000 additional Black Belts
• 4,000 additional Green Belts
• 100% of GS-15 /06 and above complete Champion training
• Optimize LSS training across enterprise; BB/GB factory; (incorporate into 5 vector model)
• Train additional Black Belts equal to 1% of affected workforce
• Train additional Green Belts equal to 4% of affected workforce
• 100% of GS-15 / 06 and above are LSS Champions
• 5% of GS-15 / 06 and above are Green Belt certified
Phase I Year 1CY06
Leadership
• Leadership Kick-off and monthly progress meetings
• Balance process metrics across DoN objectives & goals
• Plan for XX% reduction in overhead through CY08
• NSPS SES / Flag fitness report bullet that recognizes LSS contributions
• Accelerate the journey for those who have started (AIRSpeed, Task Force Lean, et. al.) and report out financial results
• Start the journey with enabling service, support and transactional functions (i.e., FIN, HR, SC, IT, etc)
Work Product
• High impact core value streams are identified, mapped, and all applicable personnel are prepared to DMAIC
• Accelerate Integration of organic Supply & Industrial Base with external suppliers (i.e., private industry, DLA)
• Identify where LSS applies to the Warfighter (i.e. war-game planning & events)
• Identify and clean legacy data bases for conversion to Navy ERP
Education and Training
• 1,000 Black Belts certified
• 2,000 Green Belts certified
• 25% of GS-15 /06 and above complete Champion training
• Synchronize LSS training body of knowledge and training methods across the DoN
• Incorporate initial LSS training into all training schools (review Officer, Enlisted & Civilian career paths)
Phase II Year 2CY07
Leadership
• Take XX% of overhead cost out of the Department
• Accelerate integration w/ industrial base and be accountable for financial harvesting
• Re-align to DoN 07 objectives & goals, and measure LSS output to DoN 06 objectives and goals
• All military and civilian performance evaluations and fitness reports recognize LSS contributions
Work Product
• High impact core value streams are DMAIC
• Continuous Improvement of those activities that started before Jan 06
• 100% of all major Defense contracts awarded to industry will contain a LSS incentive clause
• Introduce Malcolm Baldrige criteria
Education and Training
• 1,000 additional Black Belts
• 4,000 additional Green Belts • 100% of GS-15 /06 and above complete Champion training
• Optimize LSS training across enterprise; BB/GB factory; (incorporate into 5 vector model)
Phase III Year 3CY08
Leadership
• Take an additional XX% of overhead cost out of the Department
• Re-align to DoN 08 objectives & goals, and measure LSS output to DoN 07 objectives and goals
• Accelerate Enterprise maturity
Work Product
• High impact core value streams are revisited
• Service, support and transactional functions are in a Continuous Improvement closed loop
• 25% of extended (with industry) value chains have been leaned out
Education and Training
• Train additional Black Belts equal to 1% of affected workforce
• Train additional Green Belts equal to 4% of affected workforce
• 100% of GS-15 / 06 and above are LSS Champions
• 5% of GS-15 / 06 and above are Green Belt certified
SECNAV Values Leaders Who…• Excel At Business / Process Improvement
• Deliver Solutions At Best Cost
• Are Change Agents
• Lead Based On Insightful Metrics
• Use LSS To Improve
• Cascade / Measure SECNAV Guidance Penetration Throughout Organizations
SECNAV’s Guidance for Senior Executive’s PerformanceAlign Leadership Expectations With Workforce Accountabilities
SECNAV SMR FEEDBACK
MEMORANDUM FOR CHIEF OF NAVAL OPERATIONS COMMANDANT OF THE MARINE CORPS ASSISTANT SECRETARIES OF THE NAVY GENERAL COUNSEL
SUBJECT: SECNAV Monthly Review (SMR) – Feedback from 4 May SessionThank you for the significant effort that you and your organizations have put into the SMR. All are making progress towards depicting Department of the Navy (DON) activities and programs in an understandable way,
with clear indicators of priority and value. In particular, your listings of the “Top 5 Concerns” help focus our collective efforts to take future, meaningful action. I would like to discipline our discussions to center on the most significant issues, those of near-term interest as well as those of overall importance to the DON. I would encourage each of you to use the SMR forum to help assemble a cogent picture of the multi-faceted issues we face together.
I asked you last month to improve metrics, and many improvements are evident. Navy is commended for their progress in the Warfare Enterprise areas, clearly the product of hard work and careful analysis. Marine Corps depiction of Readiness is comprehensive and intuitive. ASN (RD&A) milestone charts place key points in context and timescale. ASN (FM&C) depicted complex reprogramming actions in an easily understandable way. In as many areas as possible, metrics and measures used at the SMR should be built on an “information” basis, assembling or depicting data in a structured way that builds insight. Continue to focus efforts on metric improvements in this regard for the next session. The improvements in DON metrics adds to the “measure” step in the DMAIC process which underpins SMR.
Continue to press your organizations to improve SMR based on our individual discussions last month. Though the turn-around is quick, I would ask you to reflect our agreements in the June SMR reports.
As much as possible, I ask you to address the “Top 5 Concerns” by ensuring that the strategy to improve each one is clearly depicted in the SMR with its accompanying metrics. Many of the “Top 5” concerns should also be addressed using Lean Six Sigma (LSS) precepts, either for the effort itself or for its underlying processes. Where that is the case, the LSS effort should be clearly depicted, as well. Several good examples were discussed in the latest session: Navy efforts in SEAL recruiting and training; ASN (M&RA) Comprehensive Casualty Care; Marine and ASN (RD&A) efforts in delivering Mine Resistant Ambush Protected (MRAP) vehicles.
I want to understand how you are using LSS to move your organizations forward. To that end, LSS reporting should continue to document training progress to support our reporting responsibilities to OSD in the DoD enterprise LSS effort. High Impact Core Value Streams should also continue to be reported. Details of those Lean Six Sigma efforts should be clearly depicted in the SMR report, either in the separate LSS section or in the details of the reporting of the activity, as best suits. Underutilized Green and Black Belts should be assigned to Lean Six Sigma activity relative to your “Top 5 Concerns” or our department goals and objectives.
Attachment (1) lists actions for specific organizations. Please find the best approach to address them before our next session on 15 June. The SIPRNet SMR Quickplace web-site is populated with the May SMR
report, as well as archived reports from previous months for your personal use. Please contact Mr. Griffes, Mr. Ferko, or Mr. Tesch for further assistance.
Donald C. Winter
May 08, 2007THE SECRETARY OF THE NAVY
Washington DC
CNO Guidance for 2007
Focus on Execution
2 February 2007
Each objective will be pursued using discrete, measurable goals. The accountable Executive Agent is listed:
“Develop effective business strategies for the day-to-day management of Navy processes through the use of Lean Six Sigma and other business practices (DNS)"
The Director of Navy Staff will develop an execution plan for the achievement of this objectives within 60 days.
The Vice Chief of Naval Operations will review and approve the execution plan.
Secretary of the Navy
Under Secretary of the Navy
ASN (FM&C)ASN (RD&A)
CMCCNO
ASN (M&RA)
100%100%100%100%
92% (average)
100%
100%
74% 90%
Lean Six Sigma Champions Trained or Scheduled% of Direct Reports and 1st Tier
ASN (I&E) OGC
8 Dec 06
TQL/TQMISO 9000
1990
1999
2000
2001
2003
2002
2004
ASN RD&A Directs Use of LSS
DEPOTS and SHIPYARDS COMMENCE
LEAN
NAVAL AVIATION ENTERPRISE
LEAN Events on Three AIRCRAFT CARRIERS
NAVSEA Task Force Lean
NAVAIR HQ AIRSPEED
DoD Senior Leadership Directs Use of LSS
Navy and USMC Industrial Base Demonstrates Output From LSS
2005
Transactional Projects Yield
Output
2006
DoN Lean Six Sigma (LSS) Journey
SECNAV Directs roll-out across all DoN Service, Support and
Transactional Activities.
2007
RD&A
CNO UNDER CMC
FM&C
I&EM&RA
Four Outputs: 1. Knowledge Based Sharing
2. Training Standardization
3. Roll Out Scalability
4. Financial Harvesting
Communications WG Steve Santos, GS-15
NAVSUP
WG #1
Education & Training WGRDML Skinner
NAVAIR
Metrics WGCAPT SnedekerSECNAV OPA
Financial Harvesting WGJim Brice, SES
NAVSEA
Tools WGCAPT Stabile
NAVAIR
DON LEAN SIX SIGMA Team and Process Flow
TTL ChairNick Kunesh
SECNAV SA, LSS
GC
Transformational Team Leaders (TTL) Forum LSS Network
WG #2
WG #3
WG #4
WG #5
FWG Membership
Executive Leader: Value Stream ChampionMr. Nick Kunesh, SECNAV SA Ms. Caral Spangler ASN (FM&C)
Team Leader: Black Belt: Mr. Jim Brice, SEA TFL Ms. Chris Cummings, NAVAIRTeam Members
Sally Reams, ASN (FM&C)David VanDornick, Mike Hansley, Susan Yang, NAVSEA Capt. Bob Novak, NAVAIRDale Criswell, NAVSUPBob Kamensky, Greg Hansford, Tom Straughn, SPAWARDave Clifton, Pat Lynch, USMCKatherine Clark, NAVAUDSVCCarla Moore, PEO(IS)Gary Younes, DASN (CHR)/OCHRCdr. Duane Schatz, Junius Wright, (ONR)Oscar Friedman PEO(LMW)Capt Chuck Mingonet, Cdr Steve Evans, OPNAV N8Gloria Tuck, OPNAV N4Heidi Bopp, ASN(M&B)
Benefits Categorization Types 1, 2, and 3 (Phase 1)
• Type 1: Permanent cost reduction identified to BLI(s) (Hard Savings)*
– Example: Elimination of non-labor cost; reduced CSS Support; elimination of whole work-year(s) and associated billets
• Type 2: Potential cost reduction from decreased cycle times or improved equipment/space utilization (Soft Savings)*
– Example: Improved resource utilization to produce a product (work-year reduction, but does not eliminate a billet, improved capital equipment utilization, partial footprint reduction)
• Type 3: Other benefits (Cost Avoidance)*– Example: Improves safety, customer satisfaction, quality, and work-life. No
financial validation required
*(Industry Equivalent Terms)
End
DC
PS
Belt
SFL
FR
CLFR
FSME
Project Charter
Pre-Launch Define Measure ControlAnalyze Improve
(R) Calculates
and completes initial FBW
(as-is) baseline
data (DMS Metric 2)
(R) Requests FR from SFL
(Electronically)
(R) Updates FBW (Non-
Recurring and To-Be Costs)
(DMS Metric 2)
(R) Reviews project charter and assigns
FR. Informs Belt, FR, PS and DC.
(R) Reviews charter for
familiarization.
(R) Completes FBW with Manpower and BLIs
(DMS Metrics
3&5)
(R) Electronically notifies FR of FBW to be reviewed/validated early in Control Phase. (NLT 2 weeks before
tollgate)
(R/A) consolidates &
reports Command Type 1 & Type 2 Benefits
(R/A) Updates
DMS
(R) Prints out FBW and the “FR Documentation of
Review Sheet” and brings to TG.
Start
(R) Projects Financial
Benefits & Enters project
into DMS
Financial Benefits Validation Process – Phase 1
(R) Identifies the appropriate
FSME and informs FSME
and Belt
(R) Contacts
FR for planning purposes
(R) Reviews FBW and inserts comments on
the “FR Documentation of Review Sheet”.
(Locks Estimate in DMS)
(R) Examines expected benefits
during define phase. Reviews/
updates project charter. Ensures
benefits are realistic.
(R) Updates project charter benefit estimate if root cause analysis results in any
change.
Key:DC Deployment Champion (Lean Champion)PS Project Sponsor (Value Stream Champion)FR Financial Representative (Independent Reviewer)SFL Site Financial LeadCLFR Command Level Financial Rep FSME Financial Subject Matter Expert
(R/A) Notifies Customers of
Financial Impact to BLIs
Validate
(R/A) Validates Process and Financial
Benefits
(R) Validates Financial Benefits
(Locks Actuals in DMS)
(R/A) Updates
DMS
Assists Belt with
compilation of financial
information
CLFR
PM/PEO/OPBUD
HOLDERS
Enterprise:Provider or
Fleet Readiness
CNO/CMCACM
C, DC PROG &
RES.
Execution Year Out yearsBudget Year
Disseminates Type 1 Benefits by BLI for all Fiscal Years
and identifies as Type A or B
Leveraging Financial Benefits – Phase 2
Key:CLFR: Command Level Financial RepPM: Program Manager/Responsible ManagerPEO: Program Executive OfficerEnt: Enterprise FMB: Navy Comptroller (ASN/FM)CNO/CMC Chief of Naval Operations /Commandant Marine Corps (OPNAV)
FMB
Start
PM/PEO Reprioritizes
and Reprograms
Type 1A Benefits in
YOE
FMB Approves via normal BTR or ATR process
Enterprise keeps Book on BY
Benefits - Offsets Congressional Reductions or
Holds for Execution Year
Enterprise Informed of BY
Benefits
Enterprise Reprioritizes &
Reprograms and Informs CNO/CMC
CNO/CMC Informed
CNO/CMC Prioritizes &
Structures Budget in POM Years
FMB Approves via normal BTR or ATR Process
PM/PEO Informs
Appropriate Enterprise
and CNO of Benefits
CNO/CMC Informed of
outyear benefits
Enterprise is defined as follows:
For Navy: Fleet Readiness Enterprise for Current Readiness and Provider Enterprise for Future Capabilities & Support of Current Readiness.
For MC: Deputy Commandants, MARFOR Commanders, Commander MCSC and Director C4I.
1A
1BPBISReport
Department of the Navy Lean Six Sigma Density & Event Metrics
Direct Reports People at Site Trained In Training
Green Belt Trained
Champion Training Kaizen
GB/BB Projects
NAVSEA & PEOs 51,035 272 62 1,964 1,594 1,341 529 NAVAIR & PEOs (NAE) 25,869 344 42 721 903 149 418 NAVFAC 12,807 3 9 106 4 4 NAVSUP 9,869 56 45 151 1 86 SPAWAR & PEOs 7,574 53 3 483 140 102 143 SSP 1,280 2 - 51 178 127 15 ONR 2,954 2 8 104 1 4 PEO (LS) 193 3 2 18 1 ASN(RD&A) HQ 156 5 159 4 1 NIPO 140 1 13 122 3 7 DoD/DoN Senior Leadership 1,162 MARCOR 2 - 9 200 54 13 ASN(M&RA) 2 1 18 30 1 5
Total 111,877 740 108 3,328 4,867 1,787 1,226
Blackbelt Events
As of Feb 07
Standardization of Definitions
Standardize the terminology of specific CPI programs
DoN definitions have been approved for Lean, Six Sigma, Theory of Constraints (TOC) and Kaizen. Lean: A systematic methodology for continuous process improvement based on the principles of customer value, waste elimination, and pursuit of process perfection. Lean is unique from traditional process improvement strategies in that its primary focus is on eliminating non-value added activities and creating flow and pull in the value added activities. A major result of Lean is an improvement in cycle time. Lean attacks waste. Six-Sigma: A systematic methodology for process improvement that focuses on reducing variation, producing highly repeatable processes, and creating customer satisfaction. Six-Sigma utilizes the Define-Measure-Analyze-Improve-Control (DMAIC) methodology to make process change through disciplined use of facts, data, and statistical analysis and control of existing processes. It also includes an understanding of customer needs and diligent attention to managing, improving, and reinventing business processes. Six-Sigma attacks variation. Theory of Constraints (TOC): A systematic approach to optimize resource utilization by identifying, exploiting, subordinating, elevating and reassessing constraints in the process. Scientific principles are applied as a set of logical thinking processes to develop transformational, breakthrough business solutions. A constraint is any resource whose capacity is less than the demand placed upon it. TOC attacks constraints and barriers (a restriction or other block to increases in output).
Kaizen (also known as “Kaizen Event”): A Japanese term meaning “Continuous Improvement”. In Lean Six-Sigma terms, it refers to a highly focused, short-term rapid improvement event performed by cross-functional teams at the work-group level that identifies and removes waste from a process. Good Kaizen events follow the Define-Measure-Analyze-Improve-Control (DMAIC) recipe, can be performed quickly (usually less than two months), and involve the use of basic Lean Six-Sigma tools to implement process improvement solutions. Kaizen is focused on rapid improvement.
Standardize DoN certification process for
Teaching/Black Belt Training Certification Process (Approved)
Training Testing Projects OtherMentoring
Min 160 hrs over min four (4) weeks covering Navy-wide Body of Knowledge (BOK) including project work
Comprehensive (to BOK) Training Completion Test with >75% passing score and allowance for one (1) retest. DoN ASQ Certification Exam encouraged.
Successful (signed off final tollgate) completion of: two (2) LSS Full DMAIC projects minimum 3-6 month projects and one (1) RIE/ KAIZEN event
Mentor two (2) GBs through one project each or three (3) RIEs/KAIZENs for each
Certification by each Command's Head of LSS Office or Approval Board
Green Belt Training Certification Process (Approved)
Training Testing Projects Other
Min 40 hrs covering Navy-wide BOK for GBs including project work
Comprehensive (to BOK) Training Completion Test w/ >75% passing score and allowance for one (1) retest.
Successful (signed off final tollgate) completion of: two (2) LSS Full DMAIC projects (minimum 2-4 month); or four (4) RIEs/ KAIZENs; or one (1) LSS and three (3) RIEs/ KAIZENs
None Certification by each Command's Head of LSS Office or Approval Board
Mentoring
DoN/ASQ Lean Six Sigma (LSS) Black Belts
• iGrafx Process for Six Sigma– LSS expert/Black Belt/Green Belt process mapping and analysis tool– Optimizes processes via modeling and simulation capability– Captures knowledge (value stream and process maps) for sharing and
enabling replication
• Minitab – Statistical software designed to support Lean Six Sigma and other quality
improvement projects– Integrates seamlessly with iGrafx
• Deployment Management System (DMS)– Web-based application for managing enterprise-wide Lean Six Sigma
deployment– Currently in Phase I deployment at NAVAIR
Lean Six Sigma Software Tools
Lean Six Sigma Improvements for CVN-21Lean Six Sigma Improvements for CVN-21Milestone BMilestone B
CVN-21’s Milestone B Documentation Effort
TEMPDOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NVA
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
Approvals
NVA
APPROVALS = NVA
12.5 Months 2.5 Months
Rework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA
9 Months
24.0 Months
DOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
Carderock
12.5 Months
Rework = 3 Revisions/Adjutications = NVA
24.0 Months
9 Months 2.5 Months
Rework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA APPROVALS = NVA
Approvals
LFT&E
DOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
OSDPA&E
CAIG
NAVSEA017
APMCost Engr.
X5X5
Each red arrow = 100 revisions!!
13.5 Months
7 Months 2.5 Months4 Months
Draft/Initial Reviews = VA Rework = 100 Revisions/Adjutications = NVA APPROVALS = NVA
Approvals
APMAcq &
Contracts
PLCCE
C4ISRDOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
INTERNAL VA
NVA
VA
24 Months NVA
APPROVALS = NVA
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWS
PEOC4I &TEAM
APMAcq. &
Contracts
20X
20X
Approvals
37 Months 4.5 Months
Draft/Initial Reviews = VA Rework = 3 Revisons/Adjutications = NVA
65.5 Months
9X
VAR IIDOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
Carderock
Approvals
APPROVALS = NVA
22.0 Months
12.5 Months 0.5 Months
Draft/Initial Reviews = VA
9 Months
Rework = 1 Revision/Adjutication = NVA
CARDDOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
OSDPA&E
CAIG
NAVSEA017
APMCost Engr.
APMAcquisition& Contracts
Approvals
APPROVALS = NVARework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA
2 Months 5 Months 0.5 Months
7.5 Months
ILADOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
OSDPA&E
CAIG
NAVSEA017
APMCost Engr.
APMAcquisition& Contracts
NAVICP
SYSCOMSUP
TRNGNETC
NAVSEALog. Cen.
SYSCOMNav Fac
FLEET
FORCES
LANTFLEET
PACFLEET
DASNEnviron.
DASNSafety
DASNLogistics
NCCACost
Analysis
ASNI&E
OPNAV N795Training NAVMAC
N125 Supt.Naval U/P
Analysis Ctr.OPNAVN125 OPNAV
N41
SYSCOMSPAWAR
Approvals
Draft/Initial Review = VA
12 Months
APPROVALS = NVA
27.25 Months
14.5 Months 0.75 Months
Rework = Revisions/Adjutications = NVA
7 CVN-21 MS B documents analyzed:
Man-hours expended: 245,742
Total cost: $18.4M
Total review touch points: 6,952
Non value add (NVA) touch points: 6,654
56 different organization ‘touch-points’
Average number of organizations touched per document = 22
NVA cost: $11.171M (96%)
NVA man-hours: 148,939
Team’s Perspective $11.17M NVA touch points
Note: Above data based on CVN-21 Milestone B complexity analysis. NVA determined from CVN-21 team perspective.
CVN-21’s Milestone B TEMP Time and Motion Study
Note: Arrows represent review loops, red are non value added, black are value added.
TEMP Doc Data Summary
Queue Time: included in NVA routing + 26 days for approvals
Total Man-hours: 16,612
Total Cost: $1.246M
Total Arrows: 377
VA = 47 (12%)
NVA = 330 (88%)
NVA Cost = $1.091
DOT&E
DT&E
ASNRDA
DoNWarfare Reqmts
&ProgramsN6/N7(N78)
SYS ENGR
RD&ADASNShips
COTF
DoNDir., T&E
N091
SEA – 08Nuclear
SYSCOMAir
PEOCarriers
SPAWARC4I
SYSCOMLabs
PMCVN 21
APMLife CycleSupport
APMT&E
APMBFM
APMDesign/
Build
MGRAviation Systems
MGRShip
Design
MGRIntegratedWarfareSystems
USD AT&L
NVA
NAVSEAShips
05
CONV.SYS.
LFT&E
T&ETeam
CSC
NavalSurfaceWarfareCenter
NGNN
ASD (N II)DIAP
SPAWARChief Engr.PEO
IWSPEOC4I
NVA
APPROVALS = NVA
12.5 Months 2.5 Months
Rework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA
9 Months
24.0 Months
Justification and Approval (J&A) ProcessRapid Improvement Event
Current State Analysis• 41 day average flow time • 51 Hand offs• 1% first pass yield• 40% submitted
electronically• Five serial reviews
Future State Solution• 5.4 day average flow time • 11 Hand offs• 74% first pass yield• 100% submitted
electronically• Three serial reviews
Goal: Reduce J&A flow time and rework; increase review time flexibility
• Streamlined processStreamlined process• Increased automation -all reviews electronic --instant receipt Increased automation -all reviews electronic --instant receipt
notification notification • Reduced serial reviews / reworkReduced serial reviews / rework• Content requirements communicated to SYSCOM; submittal Content requirements communicated to SYSCOM; submittal
templates createdtemplates created
STARTAnalyst receives electronic
J&A/ Action Memo from respective SYSCOM
Analyst reads, transmits electronic copy of documents to respective DASN
office, General Counsel, and RDA Admin for DCN #.
Analyst reviews document.
Documentsreviewedin parallel.
Respective DASN office
performs internal review.
Corrects A/O
General Counsel reviews
document.
General Counsel
DASN
Analyst collects and assembles all
reviews.
LEGEND
Movement
Wait/Delay
Process
Document
DecisionInput
Mr. Young Reviews
Lead timeMin: 15 minMax: 8 hrs.Mode: 4 hrs.Staffing:
Review Sat
Major change
No
END75% Mr. Young
SIGNS
JUSTIFICATION & APPROVAL "FUTURE STATE" PROCESS VSM 09/07/05
J&A/ Action Memo sent electronicallyto Mr.Young for
review and signature.
Sent by CAPT. McManamon
Lead timeMin: 5 min.Max: 6 min.Mode: 5 min.Staffing: 1
Lead timeMin: 1 minMax: 2 minMode: 1 min.Staffing: 1
Parallel Work
Lead timeMin: 1 hr.Max: Mode: 2 daysStaffing: 1
Lead timeMin: 1 hr.Max: Mode: 2 daysStaffing: 1
Lead timeMin: 1 hr.Max: Mode: 2 daysStaffing: 1
Capt. McManamon reviews electronicJ&A document and
Action Memo
Lead timeMin: 30 min.Max: 8 hrs.Mode: 8 hrs.Staffing: 1
Review Sat
Contact SYSCOM for
(substantive revisions)
Wait for revisions from SYSCOM
Analyst reviews and enters changes
Lead timeMin: 15 min.Max: 2 daysMode: 1 dayStaffing: 1
Lead timeMin: 5 min.Max: 8 hrs.Mode: 8 hrs.Staffing:
Contact SYSCOM for
minor clerical changes. ACQ
makes changes.
Lead timeMin: 30 min.Max: 3 daysMode: 2 daysStaffing: 1
Lead timeMin: 1 dayMax: 3 daysMode: 2 daysStaffing: 1
No
Yes Front OfficeLog out &
RDA ADMIN.SYSCOM
DASN (ACQ) Transmits J&A
and Action Memo
Lead timeMin: 15 min.Max: 1 hr.Mode: 30 min.Staffing: 1
Lead timeMin: 10 minMax: 2 hrs.Mode: 2 hrs.Staffing:
Lead timeMin: 10 min.Max: Mode: 1 hr.Staffing:
Lead timeMin: 15 minMax: 8 hrs.Mode: 4 hrs.Staffing:
Yes
98%
Contact SYSCOM for
(substantive revisions)
Wait for revisions from SYSCOM
Analyst reviews and enters changes
Lead timeMin: 5 min.Max: 8 hrs.Mode: 8 hrs.Staffing:
Lead timeMin: 30 min.Max: 3 daysMode: 2 daysStaffing: 1
Lead timeMin: 1 dayMax: 3 daysMode: 2 daysStaffing: 1
Informal re-review by DASN
or Legal
Lead timeMin: 5 min.Max: 4 daysMode: 30 min.Staffing:
80 %
Mr. Essig reviewselectronic J&A document and Action Memo
Mr. Thackrah reviews electronic
J&A document and Action Memo
Lead timeMin: 30 min.Max: 8 hrs.Mode: 8 hrs.Staffing: 1
Lead timeMin: 30 min.Max: 8 hrs.Mode: 8 hrs.Staffing: 1
SYSCOMBRIEF
Yes
DASN (ACQ)Coordinates
SYSCOM BRIEF
No
YesLead time
Min: Max: Mode: 5 daysStaffing: 1
95%
Send toRDA Admin/Front office
Lead timeMin: 15 min.Max: 60 min.Mode: 30 min.Staffing: 1
Mr. Essig & Mr. Thackrah
Re-Review
Lead timeMin: 1 hr.Max: 2 daysMode: 2 daysStaffing:
No
Analyst
Justification and Approval (J&A) ProcessRapid Improvement Event/Value Stream Mapping
BFMC Lean Pilot Solution OutcomeReimbursable Funding Documents to NAVAIR Field Activities
Pre-VSA State • 30 plus steps (all serial)• 16 queues• 8 work-arounds • Multiple hard copies• 12 review and approval steps• 28 day average processing time
Current State Solution• 15 steps (4 performed concurrently)• 4 queues• No work-arounds• Fewer hard copies• 5 review and approval steps• 4 day average processing time
• Moved downstream activities up frontMoved downstream activities up front• Brought all parties to table – expanded IPT Brought all parties to table – expanded IPT • Removed WAIT time (queues)Removed WAIT time (queues)• Ensured complete and accurate product earlyEnsured complete and accurate product early• Reduced rework/rejectsReduced rework/rejects• Leveraged ERP ensuring all financial links match project plan to performing activityLeveraged ERP ensuring all financial links match project plan to performing activity
Pre-VSA State • 4,000 man hours expended
to execute process• 24 Process Steps• 70 day Process Cycle Time• $12.8K per recruit• Voice of Customer not
identified
Current State • 1,000 man hours expended
to execute process• 4 process Steps• 45 day Process Cycle Time• $2.4K per recruit• Voice of Customer
integrated
Summer Hire ProcessNAVAIR AIRSpeed Type Study: KAIZEN
Savings: One man-year in labor, faster, simpler, customer friendlySavings: One man-year in labor, faster, simpler, customer friendly
Goal: Streamline and reduce costs of summer hire program
SECNAV Congressional Response Process
Kaizen Project
Problem: Currently Department of Navy Congressional Responses are not meeting internal Navy cycle time requirements of 7 work days and the quality of the responses is not consistent. SECNAV has established the ASN (I&E) project as a prototype for replication purposes. Since the beginning of 2006, the mean ASN (I&E) Process Cycle Time has been 17.8 work days.
Scope: The scope of this project will include the response categories of: Congressional Constituent, Congressional Member of Congress.
Goal: Decrease the mean Process Cycle Time from 17.8 to 7 work days.
• Financial Impact
– Type I Savings – none anticipated at this time
– Type II Savings – TBD• Non-Quantifiable Benefits
– Better customer relations with Congress
• Dr. Donald Winter Project Sponsor/Process Owner/Green Belt• CDR Jim Aiken Deployment Champion• Phil Zalesak Black Belt• Steve Bonacorsci Master Black BeltCore Team Role LSS Training• LT Ball SME Yellow Belt• Catherine Timco SME Yellow Belt• YN1 Suggs SME Yellow Belt• Alan Anglin SME Yellow Belt• Jim Ives SME Yellow Belt• Denise Brown SME Green Belt• Oral John SME Green BeltExtended Team• TBD (ASN I&E)
Event Date
• Initial tasking 7/6
• Scoping 7/17 – 8/23
• Kaizen preparation 8/24 – 9/9
• SECNAV Brief 9/12
• Kaizen 9/18 – 9/21
• Implementation 10/2
Timeline
Business Impact
Core Team
Problem/Goal Statement