nick kunesh deputy assistant secretary of the navy (logistics) 2005 spring product support...
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Nick Kunesh Deputy Assistant Secretary of the
Navy (Logistics)
2005 SpringProduct Support Conference
Naval Logistics TransformationClearwater Beach, FL
May 10, 2005
“We simply have to transform this place. It is every bit as important to the success of the global war on terrorism as the other things we're doing.”
Donald B. RumsfeldSecretary of Defense
“…transforming the military. What is different today is this sense of urgency: The need to build this future force while fighting this present war. It is like overhauling a car engine while you are going 80 miles an hour.”
George W. Bush President of the United States
“…we will create an enterprise culture and achieve Operational Excellence….like most major corporations, we need to build a process centered organization that eliminates the variation between goals and results through Six Sigma improvements.”
Gordon
R. England Secretary of the Navy
The Need to TransformWhat Are Our Leaders Saying?
“…I am the one Chief that is asking for fewer people. This year 7,900, without getting into details I believe I can expect that curb to continue because what I'm trying to do is to figure out how to learn from industry and lean manufacturing techniques and the things that will allow us to provide the greatest opportunity to the people who decide they are going to commit themselves in our profession.”
ADM Vern Clark Chief of Naval
Operations
Secretary of the Navy’s Near Term Priorities
• Combat Capability– Win the War on Terrorism
• People– Ensure quality of service
• Technologies– Recapitalize our Forces
• Improving Business Practices– Transform the Business of Defense
Process characteristics needed to support SECNAV’s priorities:
» Speed» Agility» Flexibility» Sustainment (TAV, ITV)
DoN Total Obligation Authority (TOA)
$119.4B 65% is people cost
FY04 TOA$115.1B
Navigation to TAV/ITV Analogy Lead-time Reduction
Open Ocean fix accuracy
30-50 NM
4 NM
1 NM
xxxx yds
Electronic Age 1911
2200 BCERP AIT-UID/RFID eProcurement
2005
Line of Sight COASTLINE
Latitude1 LOP
2 fixes/daySEXTANT
6-8 fixes/day SATNAV
On Demand GPS
2050
Polaris Celestial Reference Point
SEXTANT
SATNAV
LOS
GPS
FORCEnetOmni-Object Intelligence
JCS/ OSD and Services Logistics Transformation Roadmap Destination
Focused Logistics Capability Areas:1. Joint Deployment / Rapid Distribution
2. Agile Sustainment
3. Operational Engineering
4. Multi-National Logistics
5. Force Health Protection
6. Information Fusion
7. Joint Theater Logistics Management
Today
R O A D M A PFocused Logistics
|
Sea Power 21
Key is cost
Transformation Enablers
Sea TrialSea Trial
Sea WarriorSea Warrior
Sea EnterpriseSea Enterprise
• Lean /Six SigmaLean /Six Sigma• AIRSpeedAIRSpeed• Task Force LeanTask Force Lean• Enterprise Resource Planning Enterprise Resource Planning • Human Capital StrategyHuman Capital Strategy• SYSCOM AlignmentSYSCOM Alignment• Productive RatiosProductive Ratios• Performance Based Logistics Performance Based Logistics • Naval Logistics IntegrationNaval Logistics Integration• Navy Readiness Integrated Navy Readiness Integrated Improvement ProgramImprovement Program• Ship Maintenance ProgramShip Maintenance Program• Task Force EXCELTask Force EXCEL• Strategic Sourcing Strategic Sourcing • Navy-Marine Corps IntranetNavy-Marine Corps Intranet• Commander, Navy InstallationsCommander, Navy Installations• ACNO-ITACNO-IT
EXAMPLES
Joint Operations AreaNot to Scale
SPOD
APOD
Strategic Airlift
Strategic Sealift
Strategic Airlift
Strategic Sealift
High Speed Sealift
High Speed Connectors (HSC)
Shuttle Ships
AustereSPODs
AdvancedBase
Military/CommercialRe-supply
CONUS
Sea Base
IntermediateLog Source
Intra-theater Aircraft
SurfaceAir
Future-TBD
The sea base is an inherently maneuverable, scalable aggregation of distributed, networked platforms that enable the global power projection of offensive and defensive forces from the sea, and includes the ability to assemble, equip, project, support, and sustain those forces without reliance on land bases within the Joint Operations Area.
Sea Base Vision
Commercial Resupply
Air/Surface
Future Capability to Project Power is Joint Sea Basing
Sea-Base: Open Ocean Environment
Sea State 4
• Whitecaps are everywhere with spray• Average waves are 8´ high • Significant waves are 12´ • Average highest waves are 16´• Beaufort Wind Force is 6 (22–27 knots)• Sea condition described as rough
Sea State 4
• Whitecaps are everywhere with spray• Average waves are 8´ high • Significant waves are 12´ • Average highest waves are 16´• Beaufort Wind Force is 6 (22–27 knots)• Sea condition described as rough
Required Enabling Capabilities
Interface & Transfer Capabilities
• Skin-Skin Transfers• At-Sea Container Transfer• Heavy Unrep• Integrated Logistics Platform
Capabilities required to provide interface between connectors to facilitate the transfer of containers, quadcons, pallets, personnel, ordnance, and equipment.
Intra-Ship Capabilities
• Modular Packaging Designs• Selective Offload• Improved Internal Cargo Handling• Total Asset Visibility
Without them …
limited to current methods
of resupply.
Lean
Standardization
Reduce logistics footprint, decrease demand, increase commonality, joint interoperability
Critical Seabase CapabilitiesLynchpin is Logistics
• Fully joint capable• Maneuverable, dispersed – able to coalesce rapidly as needed• Integrated command and control• At-sea arrival, assembly, and transfer of material and
personnel• Selective, robust offload• Conduct and sustain forcible entry and subsequent operations• Facilitate movement ashore• Force protection• Re-suppliable throughout the follow-on force build-up period
in adverse weather• Ability to reconstitute and redeploy the force• Robust in challenging seas
Optimization Synchronization
Common Theme of Sea Base
• Success depends on an end-to-end supply chain with a complete IT solution that provides TAV and ITV crucial for time-phased replenishment and retrograde.
• Our mandate requires an order of magnitude improvement in our processes to yield speed, agility, flexibility, and sustainment in an environment of constant change (battlefield) with the difficulty of conducting distribution operations in the open ocean (sea state 4).
Deputy Assistant Secretary of the Navy for Logistics View
Efficiency Methodologies and Tools for Continued Improvement
• Enablers for speed, agility, flexibility & sustainment in an affordable manner. – Information Technology
• Global Combat Support System (GCSS)– US Army, USAF, USMC
• Navy Enterprise Resource Planning (ERP)
– Efficiency Methodologies• Theory of Constraints (TOC)• Lean• Six Sigma• Others : ISO 9000, Malcolm Baldridge Award, CMMI
– Automation Identification Technologies (AIT)• Unique Identification (UID) • Radio Frequency Identification (RFID)
All provide an environment for lead time reduction in the Value Chain.
Push to a Common Environment
CDL IP TDL
ISR C2
ISRJC2DJC2DCGSNCES
OARAPIDS/C2ERA
Clients
B2B
Distributed Services
C2 CombatSystems
B2B
B2
C
B2
C
B2
C
B2
C
C2C C2C C2C
GIG JTRS TCSIntegrated Networks & CommunicationsGIG-BE
Key Enablers•XML•IP•End-to-End Information Assurance
•Open Systems
B2B = Business to BusinessB2C = Business to ConsumerC2C = Consumer to Consumer(Enabling Publish/Subscribe Solutions)
FORCEnet TargetAs - Is
Consumers
Servers Combat Systems
Security Security
Stovepipe Communications
Security
Representative Building Blocks
Current Environmental Landscape:E-2C Gyroscope Repair Example
• 35 • 25 • 10
• 52 • 11 • 7
DRAFT
Quick Statistics:
Physical Moves: 35
Building Moves: 25
Site Moves: 10
# of Nodes: 29
VAW-120Pilot
VAW-120 WorkCenter
VAW-120Maintenance Control
VAW-120 Supply
VAW-120 QA
SRS MDU
SRSContractor
DCU (Supply)
AMSU (AIMD)
AIMD 62A Work Center
AIMD 600 Production Control
ATAC Norfolk CFSATAC NorfolkGovernmentCFS Houston
ATACNorth
Island CFS
Building 3304
DDDC
FISC
Instruments ShopPre-stage Area
Instruments ShopPlanner
Instruments ShopProduction Control
Instruments Shop WorkCenter
ContainerReclamation
FISC Building 36
Pack and Preservation
472 ProductionControl
472 Work Center
SRS Materiel
NAVICPItem
Manager
Gyroscope Organization Space
• Although thisgyroscope is a one-for-one exchange,the repairable sentto NADEP NorthIsland may not besent back to Norfolk
• Over 400 of thistype of gyroscopeare in inventory
12
Intra-site Physical Flow
Information Flow
Inter-site Physical Flow
Site Marker
Building Marker
LeanMapsLeanMaps
13
DRAFT
Manua l Ha nd-off
El ect ronic Tra nsmi ssion
Manua l/ Elect ronic Transmi ssion
Si te Ma rke r
B ui lding Marker
VAW-120 Pilot VAW-120 Work
CenterVAW-120
Maintenance Control
VAW-120 Supply
VAW-120 QA
SRS MDU
SRSContractor
DCU (Supply)
AMSU (AIMD)
AIMD 62A Work Center
AIMD 600 ProductionControl
ATAC Norfolk CFS
ATAC NorfolkGovernmentCFS
HoustonATACNorth
Island CFS
Building 3304
DDDC
FISC
Instruments ShopPre-stage Area
InstrumentsShop Planner
InstrumentsShop Production
Control
Instruments ShopWork Center
ContainerReclamation
FISC Building 36
Pack and Preservation
472 ProductionControl
472 Work Center
SRS Materiel
NAVICPItem
Manager
NALCOMISOMA NALCOMIS OMA
NALCOMIS OMA
NALCOMIS OMA
NALCOMIS IMA
NALCOMIS IMA
NALCOMIS IMA
NALCOMIS IMA
Manual Logbook #2NALCOMIS IMA
Manual Paperwork
NALCOMIS IMA
ADB
Manual Logbook #1
Manual Logbook #3
Manual Logbook #5
ATAC DatabaseCustody Control Manifes tMRIL
FEDLOG
DSS
BREES
MAPPEROPDOCS
UADPS Cards
UADPS Cards
UADPS Cards
UADPS Cards
UADPS Cards
UADPS Cards
BREES
WIPICS
UADPS Cards
FEEDBACK
FEEDBACK
WIPICS
DSS
Manual Logbook #4
Manual Logbook #6
Manual Logbook #7
Gyroscope Systems Map
NOTE: this map issomewhatincomplete sincenot all nodes wereinterviewed
Quick Statistics:
InformationTransac tions: 52
# of InformationSystems: 11
# of Logbooks: 7
LeanMaps
LeanMaps
• No End-to-End Management
• Lack of Visibility• Long-Cycle Times• Increased Inventory Levels• Limited Ability to Forecast
Physical MovesBuilding MovesSite Moves
IT TransactionsInfo SystemsLogbooks
ERP Foundation
A0 Speed Cycle Time Productivity
• Inherently within SAP are over 20 generations of best commercial practices
• Lean & Six Sigma will no doubt require alignment with IT (ERP and DIMHRS) to be successful
• Closeness of our common reengineered processes will give us the order of magnitude improvements we seek
ERP enables
Navy ERP Functional Scope Release 1.1
Release 1.X
Release 1.0
FMSD
MM
PM
HR
IM
FI
CO
AM
PS
IS-PS
SAP
WF
BW
DMS
PPWMS
EH&S
mySAPNetWeaver
QM
• Workforce Management– Time Management– Certification & Assignment Control– Training and Event Management
• Program Management– Project Management
• Financial Management– Financial Accounting– Revenue and Cost Controlling– Asset Accounting– Public Sector Management
• Plant Maintenance– Plant Maintenance – Quality Management– Environment, Health, and
Safety
• Wholesale Supply/APS– Production Planning and
Procurement Planning– Advanced Planning
System (APS) Processing– Business-to-Business Procurement
• Materials Management– Procurement– Sales and Distribution– Inventory Management, Warehouse
Management– Environment, Health, and Safety– Material Requirements Planning
(Regional Level)
Functional Design Specifications (FDSs)Breakdown by Process Area
Financial Supply Maintenance Acq WFM Total
Mandated Interfaces(e.g.,WAWF/DTS/DCPS/DCPDS/
DAAS/SPS/DDRS/WINS)32 16 0 2 19 69
Legacy TradingPartners
(e.g., NALDA/NTCSS/ U2/OOMA/CDMD-OA)
1 67 21 2 0 91
SAP Gap 0 0 1 3 1 5
Reports 18 11 15 23 8 75
Conversions 3 11 8 1 1 24
Other 18 18 26 20 6 88
Total (352) 72 123 71 51 35 352
Lean-Lean-PathwaysPathways/AirSpeed/AirSpeedAccelerated Improvement WorkshopAccelerated Improvement Workshop
OnboardOnboardUSS Harry S. Truman (CVN-75)USS Harry S. Truman (CVN-75)
2 April 20042 April 2004
700 Division700 DivisionBRU-32BRU-32
AIRAIRSpeedSpeedThe Way AheadThe Way Ahead
Process Name: Standard Work Sheet
Model Number:
Model Name:
Date:
From: Dept. Head SupervisorScope of Operations
To:
QualityCheck
SafetyPrecaution
Standard Workin-process
#. of pieces of std.work in-process
TAKT Time
OperatorNumber
Sink Work BenchL
ocke
rC
ompu
ter
Par
ts
Loc
ker
Com
pute
rLocker
Wor
k B
ench
Too
l Box
Test Bench
BR
U B
ench Pallet
Computer Printer
To GSE to Clean Parts
To Hazmat Locker
BRU 210 Day Inspection Cycle
People distance: 3,232 feetParts distance: 281 feet
Lean Process Improvement BRU 210 Day Inspection Cycle “As is”
Process Name: Standard Work Sheet
Model Number:
Model Name:
Date:
From: Dept. Head SupervisorScope of Operations
To:
QualityCheck
SafetyPrecaution
Standard Workin-process
#. of pieces of std.work in-process
TAKT Time
OperatorNumber
SinkL
ocke
rC
ompu
ter
Par
ts
Loc
ker
Com
pute
rLocker
Wor
k B
ench
Too
l Box
Par
ts
Was
her
Pallet
Computer Printer
BRU 210 Day Inspection Cycle
1st Stage Disassembly
kanb
an2nd Stage Disassembly
2nd Stage Re-assembly
Final Assembly and Test
Lean Process Improvement BRU 210 Day Inspection Cycle “To be”
People distance: 85 feet (before LEAN 3,232 ft)Parts distance: 67 feet (before LEAN 281 ft)
Business Financial Management Community (BFMC) Lean Pilot
Project
BFMC Lean Pilot Solution OutcomeReimbursable Funding Documents
to NAVAIR Field Activities
Current State Analysis– 30 plus steps (all serial)– 16 queues– 8 work-arounds – Multiple hard copies– 12 review and approval steps– An average of 28 days
processing time
Future State Solution– 15 steps (4 performed concurrently)– 4 queues– No work-arounds– Fewer hard copies– 5 review and approval steps– An average of 4 days processing time
Lean Tools
Moved downstream activities up front
• Brought all parties to table – expanded IPT
• Removed WAIT time (queues)
• Ensured complete and accurate product early
• Reduced rework/rejects
• Leveraged ERP ensuring all financial links match project plan to performing activity
NAVICP Lean/Six Sigma ProjectPerformance Based Logistics (PBL)
Contract Development
Current State Analysis– Cycle time – 29 mo avg. – Touch time – 1.8 MY per PBL– SOW development – 21 events
avg. – J&A manual process– Rerun BCA – 7 times avg.
• Moved to an “Event Driven” ProcessMoved to an “Event Driven” Process
• Removed variation in the processRemoved variation in the process
• Standardized the SOWStandardized the SOW
• Reduced reviews/reworkReduced reviews/rework
• Reduced learning curveReduced learning curve
Future State Solution– Cycle time – 14 mo avg.
– Touch time – 1 MY avg.
– SOW development – 2 events
– Automating J&A process
– Rerun of BCA – 3 times avg.
Lean/Six SigmaConclusion
• Continuous Improvement (CI), with Lean/Six Sigma as the cornerstone, has been endorsed by the highest leadership
• Lean/Six Sigma applied in the industrial base is providing “order of magnitude” throughput improvements returning Aircraft, Submarines and Marine Corps assets faster to our warfighters
• Squadrons of Aircraft and Helicopters have been more effectively utilized – Squadrons did not need to be purchased
• Intensive Lean/Six Sigma education and training focused on Value Streams including non-industrial activities – From leadership to sailors, marines, and civilians at all levels
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