AMMUNITION ENTERPRISEEXCELLENCE

Ready for Tomorrow?

Robert CrawfordJoint Munitions Command

19 February 2004DSN 793-6899

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• Kevin Fahey, Deputy PEO Ammunition

• Pat Serao, ARDEC

• Mark DeYoung, ATK

• Pierre Chao, Defense-Industrial Initiatives Center

• Jody Parker, Lockheed Martin

• Judy Solgaard, American Ordnance

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The Ammunition Enterprise implementation ofThe Ammunition Enterprise implementation ofEnterprise Excellence is a Enterprise Excellence is a disciplineddisciplined, , structuredstructuredapproach for process and product optimization that isapproach for process and product optimization that isfocused on the focused on the effectivenesseffectiveness and and efficiencyefficiency of the of theorganization.organization.

Effectiveness x Efficiency = Enterprise ExcellenceEffectiveness x Efficiency = Enterprise Excellence

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Ammunition EnterpriseAmmunition Enterprise

� Instilling discipline across the board� Permeate six sigma/lean into our business –

both Service and Production Processes� Kicked off a Ammunition Enterprise six

sigma/lean enterprise executive black beltprogram

� Using Lean/Six Sigma principles in theestablishment of Ammunition Enterprise wideprocesses

� Encouraging contractors to use Lean/Six Sigmatools

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s

Lean Metrics

Lean WorkloadBalancing

• Focused Q$S-R

• Payback

• InfrastructureSupport

• Enterprise Map

• DMAIC Process

• AO

• MTBF

• MTTR

• Cycle Times

• TAKT Times

• Unit Cost

Process Metrics

• Yield

• Scrap

• Rework

• RTR

• Cost

• Cycle Time

Lean Process

• Routing Analysis

• Work Cells

• StandardizedActivities

• Line Balancing

Process Optimization

QualityManagement

System

• Work Cells

• StandardizedActivities

• One Piece Flow

• Automation

• Infrastructure

• ProcessDocumentation

• Management

• Implementation

• ISO-9000

Effectiveness

Efficiency

Voice of theCustomer

• IPPD

• Product to ProcessLink

• PerformanceRequirements

• ProcessRequirements

Six-SigmaProject

Selection

Six-SigmaProcess Control

Six-SigmaProcess

Improvement

• Process Mapping

• Process FMEA

• Statistical ProcessControl

• Measurement SystemsEvaluation

• Process Capability

• Descriptive Statistics

• Inferential Statistics

• Analysis of Variance

• Linear Contrasts

• Design ofExperiments

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DevelopAmmunition

AcquisitionOf Ammunition

ProductionOf Ammunition

sRequirementsGenerationProcess - AAORequirementsDocumentFunded Program

• ProgramManagement/Planning/Control

• Contracting• System Engineering• Test and Evaluation• PPBES• Milestone Review Process

DP1 2

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Yes

No

TechnicalDefinitionMilestone CIndustrial BaseStrategy

Funding• Acquisition Strategy /

Planning• Contracting• Program

Management/Planning/Control

• Review/Certification if TDP ifApplicable

• PPBES• Pre-production Engineering• Price & Availability• IM Strategy (legacy

systems)

Contract

Funding

StockpileManagement

• Production/Systems Engineering (ifApplicable)

• Design and Process Improvement• Production Testing• Production Monitoring• Configuration Management• Acceptance• Program

Management/Planning/Control• Manufacturing• Quality Assurance• First Destination Shipping• Contract Modification• Safety and Environmental

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Ammunition/ComponentsSurveillanceRequirementContingency/Out-loadingRequirements

• ProgramManagement/Planning/Control

• Surveillance Program / QDRSuspensions

• Inventory Control/Accountability• Receipt and Issue• Distribution and Requisitioning• Out loading• Retrograde• Transportation• Maintenance of Storage Facilities• Safety/Security• Pre-positioning• Malfunction Investigation• PPBES

5/6

ServiceableObsoleteUnserviceableFunded ProgramTechnical definition

TechnologyDevelopment

• S and T• Systems

Engineering• Modeling and

Simulation• Technology

Transfer• Configuration

Management• New Technologies

• DevelopingTechnologies

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Maintenanceof Stockpile

Sales

DemilitarizationOf Ammunition

MaintenanceRequired4

• Program Management/Planning/Control• Maintenance Planning• Parts Procurement• Contracting• Acceptance• Safety security environmental• Execute Program• Management Control

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Yes

No

• ProgramManagement/Planning/Control

• Commercial Sale• Develop Demil Technologies and

Procedures• R3

• Contracting• Disposal• Recode to Stock

• FMS• Presidential Drawdown• Direct Sales• GFM

E

• Unserviceable• Recap• Modernization

Expended?

4

5

6

7 Expended?

3/4

No

No

Organic Issue

• Requisition• Training• Combat• Testing

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SummarySummary

• Ammunition Enterprise serious about continuousimprovement

• Utilizing Lean/Six Sigma structured approach

• Expect all of ammunition enterprise to include industrypartners commitment to this journey

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What makes up a “perfect contractor”to you?

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What benefits has your Lean/SixSigma program had over otherimprovement programs you havetried in the past?

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How have you and yourcustomers benefited from yourLean/Six Sigma program?

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How will the Army use Lean/SixSigma as a factor in Best Valuecontracting if at all?

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Is there a financial advantage to fullyimplementing Lean/Six Sigma toolsin a business?

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How do you verify and track thegains made from implementation ofLean/Six Sigma within yourorganization?

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What price premium are you willingto pay to ensure a quality product?

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If you were interested in starting acontinuous improvement programtomorrow what are the first three thingsyou would do?

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The other Service's perception is ourenterprise is not consistently makingquality ammunition. Based on yourexperience can a robust Lean/SixSigma program turn the tide on thequality of our products? How?

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Ammunition Enterprise CommitmentThe PEO Ammunition, JMC and ARDEC are leading theway in implementing Enterprise Excellence in theAmmunition Enterprise:

� Executive Champions 147

� Green Belt Six Sigma Lean 638

� Black Belts Six Sigma Lean 189

� Total Productivity Maintenance 41

� Current Process Improvement ProjectsApproximately 200 within the AmmunitionEnterprise