Achieve the Mission Decrease Inventory Decrease Operating Expenses AIR Speed Enterprise Enterprise...

Achieve the Achieve the MissionMission

Decrease Inventory

Decrease Operating Expenses

AIRAIRSpeedSpeed

EnterpriseEnterprise

Enterprise AIREnterprise AIRSpeedSpeed


Decrease Inventory


AIRAIRSpeedSpeed


Why AIRWhy AIRSpeedSpeed??


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AIRAIRSpeedSpeed


Fiscal reality:

There’s never enough money in the POM to satisfy requirements for both acquisition and readiness at the same time.

Behavior: Trade off future procurements to pay for readiness today.

THE INSPIRATIONTHE INSPIRATION

# AIRCRAFT

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11PB98 71 125 144 150 164

PB99 71 119 143 154 164

PB00 74 105 140 163 183 187 201

PB01 73 116 128 130 173 177 187

PB02 73 115 124 88 92 115 119 143 155

PB03 115 124 90 83 85 105 147 193

PB04 124 91 99 104 104 134 192 255 303

PB05 92 98 107 108 136 186 240 285

PB06 105 110 128 173 200 249 259 254

PR

ES

IDE

NT

’S B

UD

GE

T (

PB

)

201

110

303

249


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AIRAIRSpeedSpeed


Enterprise AIRSpeed(Lean, Six Sigma, TOC)

• Fleet-Wide Repair Sites & Processes

• Led by O-6 ESC

• O-I-D + Supply Chain

• Links to NAVRIIP

• AIR-3.3 Coord Office

Depot AIRSpeed(Lean, Six Sigma, TOC)

• Depot production processes

• Led by COs/AIR-6.0

• Rollout to 3 sites

NAVAIR AIRSpeed(Lean, Six Sigma, TOC)

• Corporate/Competency Processes and Other Productivity Initiatives

• Led by EDB Guidance

• Enabled by Core Team

• Links with Enterprise & Depot AIRSpeed

NAVICP AIRSpeed(Lean, Six Sigma, TOC)


• Led by NAVSUP Guidance

• Enabled by Deployment Team


Enterprise AIRSpeed(Lean, Six Sigma, TOC)

• Fleet-Wide Repair Sites & Processes

• Led by O-6 ESC

• O-I-D + Supply Chain

• Links to NAVRIIP

• AIR-6.7.2.1 Coord Office

Depot AIRSpeed(Lean, Six Sigma, TOC)

• Depot production processes

• Led by COs/AIR-6.0

• Rollout to 3 sites

NAVAIR AIRSpeed(Lean, Six Sigma, TOC)


• Enabled by Core Team


NAVICP AIRSpeed(Lean, Six Sigma, TOC)


• Led by NAVSUP Guidance

• Enabled by Deployment Team


Naval Aviation Enterprise AIRSpeed

All AIRSpeed Elements Combined Under a Single Reporting Umbrella

BOD NAE-wide Visibility on all AIRSpeed Activities… Ensure all Activity is Properly

Prioritized and Coordinated

Develop Metrics to Quantify AIRSpeed Savings…Enable Portfolio Management


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AIRAIRSpeedSpeed


• CNO directed the Fleet Response Plan (FRP) to support the Global War on Terror (GWOT)

• Requirements growth in the Flying Hour Program (FHP)

• Naval Aviation will have to support current levels of readiness despite a budget shortfall

• Downsizing the active forces by 70k

• Navy and Marine Corps unit commanders will fight in a cost-wise readiness environment

July 2003 July 2003

Cost-Wise Readiness Became the FocusCost-Wise Readiness Became the Focus

Today’s Readiness ChallengeToday’s Readiness Challenge

““AIRAIRSpeedSpeed is NAVRIIP’s Enabler for is NAVRIIP’s Enabler for operationalizing cost-wise readiness operationalizing cost-wise readiness

across the Naval Aviation Enterprise.”across the Naval Aviation Enterprise.”


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AIRAIRSpeedSpeed

EnterpriseEnterpriseAIRAIRSpeedSpeed Mission Mission

To enable effective and efficient preparation of Cost-Wise RFT aircraft in support of FRP.

• Enable – using AIRSpeed tools in order to be….

• Effective - at meeting RFT/M rating requirements.

• Efficient - at iteratively reducing costs• Preparation – repair & replenishment of

equipment


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AIRAIRSpeedSpeed

EnterpriseEnterpriseAIRAIRSpeedSpeed is… is…

• Enterprise Approach– Creates a continuous process improvement

environment – Aligns and optimizes Maintenance and Supply

activities to end-user demand (Operations)– Leverages existing initiatives– Utilizes TRR* to size & position inventories

• Cultural ChangeCultural Change – Synergizes a set of industry toolsSynergizes a set of industry tools– Eliminates sub-optimizationEliminates sub-optimization– Local decisions made with Global impact knownLocal decisions made with Global impact known

• Creates a “pull” system

*TRR: Time to Reliably Replenish*TRR: Time to Reliably Replenish

NRFI

RFI

On AircraftOff Aircraft

Retail

IMAs

NADEPs

NAVSUP/ICP

DLA

NADEPs/ Contractor DepotsIMAs

NRFI

RFI

DIS

TR

IBU

TIO

N D

EP

OT

S

The Scope of Enterprise AIRSpeedThe Scope of Enterprise AIRSpeed

ManageManage Interdependencies & VariabilityInterdependencies & Variability ThroughoutThroughout

The Entire SystemThe Entire System

Wholesale

http://www.nadepni.navy.mil/home/images/030328-N-6817C-046.jpg


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AIRAIRSpeedSpeed


““Local decisions must be aligned to the global impact”Local decisions must be aligned to the global impact”

Fundamentals of AIRFundamentals of AIRSpeedSpeed

• Properly Manage RFT (mission)• Manage and Reduce

– Inventory/Investment • parts, equipment and facilities, APN

– Reduce Operating Expenses • O&M,N, MPN

– Variability• Identify and manage constraints• Identify and address interdependencies• Create a Culture of Continuous Process

Improvement (CPI)


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AIRAIRSpeedSpeed

EnterpriseEnterprise Enterprise AIREnterprise AIRSpeedSpeedCurrent ToolsCurrent Tools

• Theory of Constraints (TOC) is based on the belief that any organization has at least one constraint and that any improvements on non-constraints may not yield as significant ROI as working on the constraint

• LEAN focuses on the removal of waste-defined as anything not necessary (no value added) to produce the product or service

• Six Sigma is based on the assumption that the outcome of the entire process will be improved by reducing the variation of multiple elements


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AIRAIRSpeedSpeed

EnterpriseEnterpriseThe ApproachThe Approach

• Utilizing an integrated blend of TOC, Lean & Six Sigma

• Train the Trainers – gives the NAE “Internal Consultants”– Program Core Teams consist of Active Duty & Civilian

Personnel (Internal Consultants)

• TMS Approach

LE

AN

6-S

igm

a

AF

AS

T

Theory of Constraints (TOC) NAENAE


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AIRAIRSpeedSpeed

EnterpriseEnterprise An Integrated ApproachAn Integrated Approach

F

A

1d

Subroute

Generator Control UnitGenerator Control UnitTOTO--BEBE

PC

QA/Final Sell

Ship

Final Assembly

Final Test

NAVICP

Static Test

Generator

FMS

Fleet

Aircraft Line

Unscheduled

Receive

Disassemble

Examine

Parts

Repair

Final Assembly

Final Test

Avg

TAT

= 25

day

s

DRUM

A-ConditionGenerators

7R/SRAs & Consumables

Induct

PC

Tim

e to

Dru

m T

RR

M1

CASS

Dru

m T

RR

M2

Shi

ppin

g T

RR

M3

1d1d

2d

3 days

*5 d

ays/

wee

k,

3 sh

ifts

2 units

SRA(Unscheduled)

2M Repair

Disassembly

Test (CASS)

Repair

PartsSubrouteDisassembly

TOCTOCDesignDesign

andand

6 Sigma6 Sigmaopportunitiesopportunities

IdentifiesIdentifies

LEANLEANeventsevents


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AIRAIRSpeedSpeed

EnterpriseEnterprise Transform from a Transform from a “ “Push”Push” to a “ to a “Pull” Pull” System System (Consumables)(Consumables)

1

3

45

2

Vendors

Trading high levels of inventory, investments and costs for speed and responsiveness of the

enterprise.

PEBMALS 31Supply

DLA DD


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AIRAIRSpeedSpeed

EnterpriseEnterprise Three Phases of Three Phases of Enterprise AIRSpeedEnterprise AIRSpeed

• Design • 7 Weeks per site• Baseline the “As-Is” state• Design the “To-Be” state

• Deployment• Put in place resources to support “to-be”• Go live with the “to-be” state• 12-18 Months to encompass the entire activity

• Sustainment (on-going)• Establish a Center of Excellence• Incorporate “AIRSpeed” into Policy

– NAMP, P485, OPNAV5442– AIRSpeed Office at every activity

• Schoolhouse & Online Training– “A” & “C” Schools– JASMMM, AMO, SEAM, PCO, PXO, etc– NKO

AIRAIRSpeedSpeed Implementation Schedule Implementation Schedule

Jan-Mar Jan-Mar 20042004

Apr-Jun Apr-Jun 20042004

Jul-Sept Jul-Sept 20042004

Oct-Dec Oct-Dec 20042004




Lean (Prototype)HSC-3HSC-3HS-10 VAQ-129HS-10 VAQ-129

Lean (Prototype)CV-63CV-63CVN-68CVN-68

LeanIMA MayportIMA MayportMALS 12MALS 12TOC IMA LemooreIMA LemooreMALS 31 MALS 31 NADEP NORISNADEP NORIS

LeanIMA NorfolkIMA NorfolkIMA North Island IMA North Island MALS 31 MALS 31 MALS 14MALS 14

LeanIMA JacksonvilleIMA JacksonvilleIMA BrunswickIMA BrunswickMALS 16MALS 16MALS 24MALS 24MALS 29MALS 29TOC IMA Whidbey IslandIMA Whidbey IslandMALS-11 MiramarMALS-11 MiramarIMA North IslandIMA North Island

LeanMALS 39MALS 39MALS 13MALS 13IMA FallonIMA FallonTOC IMA MayportIMA MayportIMA Jacksonville IMA Jacksonville MALS-14 MALS-14 MALS 12 MALS 12 NADEP JacksonvilleNADEP Jacksonville

AIRSpeed (Prototype)CVN-73CVN-73

LeanIMA Whidbey IslandIMA Whidbey IslandIMA Pt MuguIMA Pt MuguMALS 11 MALS 11

TOCIMA OceanaIMA Oceana (Lean Apr 01)

AIRAIRSpeedSpeed Implementation Schedule Implementation Schedule








MALS-24 MALS-24 MALS-29 MALS-29 MALS 39 MALS 39

IMA MisawaIMA MisawaIMA Pt MuguIMA Pt MuguIMA NorfolkIMA Norfolk

MALS 36MALS 36MALS 26MALS 26MALS 13MALS 13

IMA FallonIMA FallonJRB NewburghJRB NewburghJRB Fort WorthJRB Fort Worth

IMA AtsugiIMA AtsugiJRB New OrleansJRB New Orleans 2 CVN/CAW (TBD)2 CVN/CAW (TBD)2 FRS Sqdns* (TBD)2 FRS Sqdns* (TBD)

3 CVN/CAW (TBD)3 CVN/CAW (TBD)3 FRS Sqdns* (TBD3 FRS Sqdns* (TBD))

3 CVN/CAW (TBD)3 CVN/CAW (TBD)3 FRS Sqdns* (TBD)3 FRS Sqdns* (TBD)

3 CVN/CAW (TBD)3 CVN/CAW (TBD)3 FRS Sqdns* (TBD)3 FRS Sqdns* (TBD)

3 FRS Sqdns* (TBD) 3 FRS Sqdns* (TBD) 3 L-Class / MAW (TBD)3 L-Class / MAW (TBD)







6 L-Class / MAW (TBD)6 L-Class / MAW (TBD)

*Proposed Plan *Proposed Plan


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AIRAIRSpeedSpeed

EnterpriseEnterpriseDefinitionsDefinitions

• Time to Reliably Replenish (TRR)– Does not use averages – 50% rule.– Calculates the time to actually replenish utilizing

90% • Buffer

– Recommended allowance size for the to-be design based upon customer demand and TRR

• Demand-based Pull System– Repair and replenishment processes are activated

by customer demand. • Ex. Don’t induct and repair unless needed by the system

to meet customer demand.


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AIRAIRSpeedSpeed

EnterpriseEnterpriseThe MetricsThe Metrics

• Four top level metrics that must shape our behavior– Inventory

• How much stuff do we have? (people, material contracts, etc)

– Reliability• How well are we doing? (quality of product)

– Cycle Time• How fast? (driven by people & processes)

– Cost Reduction• Complete understanding of the baseline to identify cost

reduction impacts and opportunities


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AIRAIRSpeedSpeed


• NAVRIIP U 101 (1-day class or online)– Contains a general overview of AIRSpeed

• SCTE (1-week class)– Pax River, MD

• SCTDE (1-week class)– Pax River, MD

• SCDE (1-week class)– Pax River, MD

• SCTDM (1-week class)– Pax River, MD

• Jonah (2-week class)– Pax River, MD

• Green Belt (1-week class)• Black Belt (2-weeks long separated by 30 days)

Project Office Project Office AIRAIRSpeedSpeed Training Training


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AIRAIRSpeedSpeed

EnterpriseEnterpriseAIRAIRSpeedSpeed Training - NKO Training - NKO

•The Navy Knowledge Online https://wwwa.nko.navy.mil/portal/splash/index.jsp

•NAVRIIP U 101 – Overview Course including Theory of Constraints, Lean and Six Sigma

•Fleet Business: The Navy Business and Fiscal Practices Course (CNL-FB-1.0)

•Lean Classes

•Lean Logic (OPER0151)

•Lean Value (OPER0152)

•Six Sigma

•Six Sigma Introduction (OPER0131)

•Six Sigma: Reducing Variation to Improve Quality (OPER0141)

•Six Sigma: Listening to the Voice of the Customer (OPER0142)

•Six Sigma DMAIC: Defining the Problem (OPER0143)

•Six Sigma DMAIC: Measuring the Process (OPER0144)

•Six Sigma DMAIC: Analyzing the Data (OPER0145)

•Six Sigma DMAIC: Analyzing the Process (OPER0146)

•Six Sigma DMAIC: Improving the Process (OPER0147)

•Six Sigma DMAIC: Controlling the Improved Process (OPER0148)


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AIRAIRSpeedSpeed

EnterpriseEnterpriseAIRAIRSpeedSpeed Training - DAU Training - DAU

•Defense Acquisition UniversityDefense Acquisition University•Lean Thinking and Value Stream Mapping (Seminar)

•Focuses on creating value as determined by the customer emphasizing lean thinking principles and concepts.

•Introduction to Lean Enterprise Concepts (CBT or Seminar)

•Explains lean enterprise concepts and techniques, the key to success for many corporations around the world in the 21st century.

•Lean—Six Sigma (CBT or Seminar)

•Is a continuation of the ‘Introduction to Lean Enterprise Concepts’ and ‘Six Sigma: Concepts and Process’ modules.

•Six Sigma: Concepts and Process (CBT or Seminar)

•Introduces the foundations of the Six Sigma quality control methodology created by Motorola to increase the productivity and quality of products and customer service processes

•Theory of Constraints (Classroom)

•Theory of Constraints (TOC) is a philosophy of management improvement and set of techniques used to manage an organization. Mr. Eliyahu Goldratt originated the TOC idea in his book “The Goal” as a way of managing a business to increase profits

•Six Sigma (Classroom)

•Six Sigma is a Quality Control methodology that is the leading Quality Improvement program in Industry. This course discusses what Six Sigma is and how it can be implemented for DoD programs to identify, improve, and measure job processes. Participants will also learn how Six Sigma is being deployed, including the roles of the principle players: “Green Belts”, “Black Belts” and “Champions”

Reference: DAU 2006 Catalog, Chapter 3, DAU Learning Assets


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AIRAIRSpeedSpeed

EnterpriseEnterpriseSuccessful OutcomesSuccessful Outcomes

• Support Fleet Readiness Plan• Provide Ready for Tasking Aircraft

– Per CFT 1 Entitlements

• Reduce Total Cost of Naval Aviation• Reduce Inventory, Operating Expenses, and Manpower

• Integrated Maintenance & Supply Support System

• Seamless support to the Fleet • Improve Logistics/Maintenance Response

• Decrease Cycle Time• Decrease Logistics Footprint

• Place Ownership and Accountability at the appropriate Levels

These are the consequences of doing AIRSpeed right.These are the consequences of doing AIRSpeed right.


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AIRAIRSpeedSpeed

EnterpriseEnterpriseWe have the opportunity to positively impact the business of Naval Aviation through the

proper application of AIRSpeed.


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AIRAIRSpeedSpeed

EnterpriseEnterpriseAdditional InformationAdditional Information

• WEBSITE– http://www.cnaf.navy.mil/airspeed

Leadership Must Be Visibly Committed & Leadership Must Be Visibly Committed & Engaged Engaged


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AIRAIRSpeedSpeed


Questions???Questions???

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