NAVSEA Vision

Jim Brice, Assistant Deputy Commanderfor Industrial Operations, NAVSEA 04X

DoD Depots of the Future: Maintaining Yesterday’s and Tomorrow’s Navy

October 2004

2

Outline Resources--The Imperative

Navy Shipbuilding and Repair

Competes for Resources

Transformation

Lean

One Shipyard

Shipyard Transformation Plan

Lean Training

The Future

3

300 Ships300 Ships

Goal is to effectively and efficiently manage the national industrial base to achieve future goals.

Goal is to effectively and efficiently manage the national industrial base to achieve future goals.

$ to Recapitalize $ to Sustain

Fleet Response Plan SEA Enterprise

Current Fleet Readiness Future Fleet Readiness

THE INDUSTRIAL BASE

Resource ConstraintForces Transformation

Capability& Capacity

Facilities Workforce

Maintenance& Logistics

PoliciesRightReadiness

RightCost

Right Force

More Force StructureMore Force Structure

RightCost

RightReadiness

Right Force

More Operational TimeMore Operational Time

The Imperative

4

Ship New ConstructionEnvironmental Scan

Last Decade: Next Decade: 8 Starts 12 or More?

1990 2000 2010

SSN 774 SSGN

LMSR

CVN 76 MRDDG 51 Flt IIA

TAKEDD 21

CVNXLHD 8

LHAR

DDXCVN 21 MPF Future

T-AOE(X)T-AGM Repl

CG(X)

LCU(X) ... ?MCS(X) ... ?

CVN 77 MR

17 Designs in Progress

SSN 23 MMP

LPD 17

CG CONV

LCS

2000

New Ship Construction and Submarine Availabilities

0

2

4

6

8

10

12

14

16

18

20

Submarine Depot Availabilities SSN/SSBN DMPs, EROs & EOHs

We Are Here!

Num

ber

of

Sub

mari

nes

Sch

ed

ule

d in S

hip

yard

s

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

SSN

SSBN

SSGN

Quarter of Fiscal Year

5

Continuing the Transformation

Phase 1

Jul ‘02

100 day studycomplete

• HQ/PEO Realignment• Technical Authority

Phase 3

Jul ‘03

100 day studycomplete

• Integrated Planning Activity• Business Operations Post-CNI• Supply Support / Logistics

Business Efficiencies• Contracting• Engineering• Human Systems Integration • Financial Management

Phase 2

Mar ‘03

100 day studycomplete

• Warfare Center Transformation Plan• Naval Shipyard Transformation Plan

Phase 5

• IMPLEMENT LEAN PRINCIPLES & Level Two Collaboration• Deploy Human Capital Strategy

Aug ‘04

May ‘04

Action PlansComplete

AlignmentAssessment Reassessment

Sep ‘04Nov ‘03

Phase 4

• Improving our alignment• Improving our productivity• Refining our Human Capital Strategy

CNO & COMNAVSEA Annual Guidance

CNO & COMNAVSEA Annual Guidance

We are here

LEANTransformation

NAVSEA Commanders Conference July 2004Action for All: Begin to apply Lean Principles and changes to all appropriate work processes

6

NAVSEA Enterprise

COMMANDERNAVAL SEA SYSTEMS COMMAND

SEA 00EXEC DIR.SEA 00B

P. BROWN (SES)

VICE CDR/DEP CDR FLEETMAINT & MODSEA 09

RADM A. LENGERICH

COMNAVSUPSYSCOM

(ADDU for LOG SPT)

SHIPS

CARRIERS SUBMARINES

INTEGRATEDWARFARE SYSTEMS

PEO Organizations

LITTORAL & MINE WARFARE

CONTRACTS

SEA 02

COMPTROLLER SHIP DESIGNINTEGRATION

& ENGINEERINGSEA 05

UNDERSEAWARFARE

SEA 07

LOG, MAINT, & IND OPS

SEA 04

WARFARESYSTEMS

ENGINEERINGSEA 06

HUMAN SYSTEMSINTEGRATION

SEA 03

COMSPAWARSYSCOM

(ADDU for C4I)

ORDNANCE SAFETYSEA 00V

CHIEF INFORMATIONOFFICERSEA 00I

FLEET SUPPORTMANAGEMENT

REVIEW BOARD

WARFARE CENTER POLICY BOARD

TECHNICAL AUTHORITY BOARD

CORPORATEOPERATIONS

SEA 10

NAVAL SHIPYARDS

SUPSHIPs

VADM P. BALISLE

SUBMEPP

SEALOGCEN

NUCLEAR PROPULSION

SEA 08ADM F. BOWMAN

SEA 01

Aug 2004

COMMANDER,NAVAL

SURFACE WARFARECENTER

COMMAND STAFF

COMMANDER NAVAL UNDERSEAWARFARE CENTER

NUWC

NOSSA EOD-TD

Task Force Lean

E A NL

7

One Naval Repair Shipyard

MSRA / ABR Contractors

Multi-ship/ M

ulti-year

(MS/M

O)contracts

Multi

ple-award

contra

cts

Partnerships

Indefinite Delivery

Indefinite Quantity (IDIQ)

Oth

er C

ontr

acts

One Naval Repair Shipyard

GDEB NGNN

One Nuclear Shipyard

One Naval Shipyard

Resource and Infrastructure sharing across the boundaries of Public/Private will Resource and Infrastructure sharing across the boundaries of Public/Private will be instrumental in providing cost effective Ship construction, modernization and be instrumental in providing cost effective Ship construction, modernization and

maintenance while maintaining core capability at the NSYs.maintenance while maintaining core capability at the NSYs.

One Shipyard

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Naval Shipyard Transformation Plan

A Comprehensive Business Strategy for Successful Transformation

Sub Best Practices Sail, Tanks, MSW/ASW, Grooming IPPTP, VLS, Steering&Diving, Torp Tubes, Hull UROs, Engr & Project Mgmt

Carrier Team One ALRE Material, Process Masters, Execution Charging & Progressing, Co-yard, MCAP, etc.

NSY Productivity Projects Quality initiatives, High Performance team building, personal accountability, Lean processes, CIMP, etc.

Corp Programs CWP/ERM, MANTECH, CTMA,SHIPMAIN, NSRP, etc.

Fleet Programs I&D Integration, Waterfront Realignment, SHIPMAIN, etc.

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One Master Black Belt hired from Ford

Five experienced LSSC graduates certified as ASQ Six

Sigma Black Belts

82 Process Improvement Engineers trained via the

Naval Shipyards’ Lean Six Sigma College (NNSY, PSNS,

PHNS, SIMA-N)

2515 people trained in Lean Basics

1456 people participated in Lean events

175 Lean events

Training our People on Lean Six Sigma

The LRE is an interactive Lean Improvement exercise, developed by the Shipyards, based

on the Motor Regional Repair Center, simulates variability typical of repair

processes & uses LeanSigma to focus and drive improvements

Lean Six Sigma ToolboxLean Six Sigma Toolbox Vision/Mission Development Change Management Assessment Models QPS, CLL

Balanced Scorecard Value Stream Analysis Brainstorming Win/Win Prioritization 5 Why's

Theory of Constraints 7 Quality Control Tools

7 Management & Planning Tools Nominal Group Technique (NGT) Team Building & Facilitation Project Planning Internal Consulting

Capacity Analysis, Takt Charts

Process Analysis FMEA

IPO / ICOM Diagrams Causal Loop Diagramming Process Observation / GEMBA Basic Statistics Data Analysis Tools SPC, Gage R & R Sampling Theory Root Cause Analysis CTQs / CTPs Hypothesis Testing 5 S / Visual Controls Poke-Yoke / Error Proofing

Process Simplification & Design Pull Systems

Supply Chain Management Critical Chain Project Mgt

Developed & Taught with USNR and Certified Black Belts

Independently Validated by Industry

Integrates Lean, Six Sigma, Theory of Constraints, and Corporate Quality Tools

Tailored to ship repair environment

Methodology taught in a 6 month course called Lean Six Sigma College

Students who complete LSSC are qualified Process Improvement Engineers

(equivalent to Black Belts by Industry Standards)

Corporate Process for Process Improvement

Observe “As Is” BaselineID Key Metrics & TargetsUnderstand

Define Commit Characterize

Improve Implement Close

Define the ProblemDefine the Case for ActionDefine Customer ValueDefine Expected BenefitDefine Expected CostsDefine the Vision

Develop Draft Economic Analysis PrioritizeCommit Resources

Update PrioritiesPlan Next StepsPublicize & Recognize Results & Benefits*Knowledge SharingSustain & Maintain Metric

Train and DeployImplement ControlsMeasure Key MetricsCodifyAssess and Adjust

Reduce WasteConduct PilotsDevelop Implementation PlanDevelop Benefits Realization Schedule*

Program Change

Continuous SelfImprovement

(CSI)

Process Re-

Engineering

Hierarchy of Process Improvement

Training may only be a presentation for self-study, with list of other learning resources

“Glossary" or self-study, awareness only, with list of "lifelines"

Emphasis Levels

Training includes case study or equivalent; students may be ready to apply, or may need

minor addl training/reading

Training includes a practical example or exercise; students leave ready to apply the tool

Lean Six Sigma College 6-month Training Plan

1999 3 Six Sigma pilot projects

Summer

2001

Sabbatical with Experts (naval reservists) to develop the Lean Six Sigma concept and 6-step model

Nov 2001 Flight 1 of Lean Six Sigma College starts at NNSY

Dec 2001Hired a Ford Six Sigma Black Belt. Further developed and delivered LeanSigma College

Mar 2002 Flight 1 graduates and LeanSigma projects begin.

Flights 2, 3, and 4 complete.

Sept 2003PSNS, NNSY, and USNR agree to partner on LSC

Oct 20034 PIEs certified as Six Sigma Black Belts by ASQ

Dec 2003Lean Repair Exercise developed to teach and demonstrate the use of LSS principles in Repair Environment

May 2004 Flight 5 starts at NNSY with 15 students from NNSY, NFPC, and SIMA-Norfolk

May 2002 -

June 2003

DEFINE COMMIT CHARACTERIZE IMPROVE IMPLEMENT CLOSE

Survey Questions Win/Win Timed Value MapProcess

SimplificationMeasurement

DesignKnowledge

Management

Assessment Models (Self-, Baldrige)

7 Quality Control Tools

Chi-Square, T-Test, F-Test

5 S (Workplace Organization)

Policies, Instructions,& Standards

Reward / Recognition

Systems

Quality Performance System (QPS)

7 Management &Planning Tools

Root Cause Analysis Error Proofing /

Poka-YokeCommunication

SystemsOrganizationalDevelopment

Value Stream Analysis

Theory of Constraints

Basic StatisticsPush vs. Pull

SystemsPriority

Management

Vision/MissionPrioritization &

ParetoHypothesis Testing Process Design

Monitoring Systems

Strategy Development

Project PlanningCapacity Analysis / Resource Loading

Control System Design

Data Analysis

Change Management

Team BuildingProcess Mapping

(Logical and Physical)

Standard Processes &

Tools

Trend/Control Charts

Corporate Lessons Learned (CLL)

Communication & Presentation Skills,

Adult Learning, Training

Failure Modes & Effects Analysis (FMEA)

DOEStatistical Process

Control (SPC)

Balanced ScorecardNominative Group Technique (NGT)

Gage Repeatability & Reproducibility

Critical ChainProject

Management

Brainstorming 5 Why's

Input-Process-Output (IPO) / Input-Control-

Output-Mechanism (ICOM) Diagrams

Level Schedules

Fishbone (C & E) Affinity Diagrams Takt ChartsOrganizational

Design

Benchmarking Internal Consulting GembaSupply Chain Management

Quality Function Deployment (QFD)

Reality Trees / Dissolving Clouds

Causal Loop Diagramming

Lot Size Reduction

Cultural Assessment

Machine ObservationJust in Time /

Kanban

Financial Analysis Sampling Theory Set-up Reduction

Market Analysis Scatter DiagramWorkgroup Technology

Relationship Chart Ergonomics

HistogramTolerance Allocation

Box Plots Visual Controls

Main Effects Diagram Kaizen / Kaikaku

Normality Test Response Surface

Capability AnalysisTest

OptimizationANOVA (Analysis of

Variance)Change Readiness

SurveyMeasurement Systems

Analysis

Key Topics with Emphasis Levels

April 2004 Master Black Belt Certified (former BB from Ford)

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The Way Ahead...

Bottom Line: Our Industrial Base is fundamental to the Navy and the nation as it ensures that the Fleet is ready to deploy

We will continue to• Deliver as promised on products and services

to keep our Warfighters ready to win• Ensure cost, scheduling, and process

efficiency gains are factored to return value and needed investment monies

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Questions?Questions?