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2005 DOD Maintenance Symposium & ExhibitionTuesday (10/25), 14:00-16:00 Breakout/Technical Session:Reinventing the Wheel or an Idea Whose Time has Come?Ideas that are Transforming Defense Maintenance (Ships)
Captain Joseph Campbell Commander, Norfolk Naval Shipyard
Portsmouth, Virginia
Statement A: Approved for public release; distribution is unlimited
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Sea BasingProjecting Sovereignty...
Worldwide access, secure, adaptable
Sea Warrior FORCEnet
Sea Trial
Sea Enterprise
Sea ShieldProjecting Defense...
Assured access, sea-based homeland defense
Sea StrikeProjecting Offense...
Agile, sustainable, precise, persistent
Transformation/Change is a continuous process!Approved for public release; distribution is unlimited.
SEA POWER 21
3
CNO Priorities & NAVSEA Taskers:Fully Aligned
Maintaining Current Readiness
Building a 21st Century Workforce
Building a Navy for the Future
Maintaining Current Readiness
Building a 21st Century Workforce
Building a Navy for the Future
Naval Sea Systems Command Roles and Responsibilities in the Naval Warfare Domain Enterprises
Assessment of the Organizational Alignment to Support the Enterprise Construct
Defining and Measuring Output and Outcome
Assessment of Current & Future Initiatives
Strategic Communication PlanEnhancing the PEO/NAVSEA
PartnershipEnhancing the NAVSEA/ONR
Partnership and Technology Transition
Alignment of NAVSEA Contracting to a Competency Construct
4
NAVSEA: A Provider Command
CFFC
PROVIDERS RESOURCE SPONSORS
Both at the Enterprise and individual
Warfighter Domain Level
AIR
NETWAR
EXW
SUB
SURF
SINGLE NAVY ENTERPRISE
This is where we are headed
NAVSEA Su
bs
Car
riers
Gun
s
Syst
ems
Mis
sile
s/To
rp.
Surf
Sh
ipsPEO
CVPEOIWS
PEOLMW
PEOSHIPS
PEOSUB
Build & Buy In-Service/Legacy SupportENGINEERING
INDUSTRIAL OPERATIONS
BUSINESS OPERATIONS
TECHNICAL SERVICES
LINES OF BUSINESS
NAVSEA’s Lines of Businesseee aaa nnnLLL eee aaa nnnLLLNAVSEA Business Model: Seamless Support Across the Enterprise
Undersea Warfare EngineeringNuclear Propulsion
Ship Design, Integration & EngineeringWarfare Systems EngineeringHuman Systems Integration
Maintenance/LogisticsShipyards
SUPSHIP New ConstructionSUPSHIP Repair - Transfer to RMC
12 Aligned Product Areas across the NAVSEA Warfare Canters
FM/ComptrollerCost Engineering
ContractingCommand Ops/IT
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Sea BasingProjecting Sovereignty...
Worldwide access, secure, adaptable
Sea BasingProjecting Sovereignty...
Worldwide access, secure, adaptable
Sea Warrior FORCEnet
Sea Trial
Sea Enterprise
Sea ShieldProjecting Defense...
Assured access, sea-based homeland defense
Sea ShieldProjecting Defense...
Assured access, sea-based homeland defense
Sea StrikeProjecting Offense...
Agile, sustainable, precise, persistent
Sea StrikeProjecting Offense...
Agile, sustainable, precise, persistent
Transformation/Change is a continuous process!
SEA POWER 21
NAVSEA Industrial Operations “Line of Business”
- One Shipyard -
CVN Depot Maintenance Facility
Southwest RMC
Navy Foundry and Propeller Center (NFPC)
Naval Sea Logistics CenterSUPSHIP BATH
PUGET SOUND NSY & IMFPacific Northwest RMC GD Electric Boat
SUPSHIP GROTON
NORFOLK NSYNG Newport NewsSUPSHIP NEWPORT NEWSMid-Atlantic RMC
SUPSHIP GULF COAST
PORTSMOUTH NSYSUBMEPP / SHAPEC
PEARL HARBOR NSY & IMFHawaii RMC
Southeast RMC
South Central RMC
Japan RMC
NAVSEA HQ & PEOs
Reducing the Cost of Maintenance &Increasing Operational Availability of Ships
Workforce Budget (M)PNSY 3,909 $572NNSY 7,778 $967PSNSY&IMF 9,879 $1,063PHNSY&IMF 4,266 $491Total 25,832 $3,093
Naval Shipyard FY05
7
Partnering With the Shipyard IndustryPartnering With the Shipyard Industry
NSRP Lean Shipbuilding Initiative
Northrop Grumman Newport News
National Shipbuilding Research Program (NSRP)Advanced Shipbuilding Enterprise (ASE)
Government collaboration with industry to reduce cost and eliminate waste
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OptimumNumber of ShipsOptimum
Number of Ships
Lean Transformation of Industrial BaseLean Transformation of Industrial Base
$ to Recapitalize $ to Sustain
Fleet Response Plan SEA Enterprise
Current Fleet Readiness Future Fleet Readiness
THE INDUSTRIAL BASE
Capability& CapacityFacilities
WorkforceMaintenance& Logistics
Policies
Smart Shift of Capital Investment
THE INDUSTRIAL BASE
Capability& CapacityFacilities
WorkforceMaintenance& Logistics
PoliciesRightReadiness
RightCost
Right Force
More Force StructureMore Force Structure
Right Force
More Operational TimeMore Operational Time
RightCost
RightReadiness
9
Lean in the Shop, Lean on the Ship, and Lean everywhere in between
NSY Lean Transformation Plan
Hum
an C
apita
l Stra
tegy• Executive
Planning Sessions
• Values Stream Analysis
• Rapid Improvement Events
• Training
• Metrics
• Hiring Strategy
• Attrition
• SurgeMain
• NSPS
• Voluntary Protection Program/Safety
$$$ Cost-Wise Readiness $$$
Shi
pyar
d D
eplo
ymen
t Pla
ns
Nat
iona
l Val
ue S
tream
s
Platform NVSs (Tier-One)
• Carrier• SSN688• SSBN/SSGN
Process/ Functional NVSs (Tier-Two)
• Industrial Process
• Project Management
• Lifting & Handling
• Material• Training• Resource
Management
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10
All Employees• Provide data and voice of
customer inputs to VSA, RIE, and Projects
• Apply concepts to their own jobs and work areas
• RI Team or Project specific support
• Part time
TeamTeamMembersMembers
All Employees• Provide data and voice of
customer inputs to VSA, RIE, and Projects
• Apply concepts to their own jobs and work areas
• RI Team or Project specific support
• Part time
TeamTeamMembersMembers
• RI Team or Project specific support
• Part time
TeamTeamMembersMembers
• Owns vision, direction, business results• Leads change• Allocates Resources
ExecutiveExecutiveLeadershipLeadershipCOs/DHsCOs/DHs
• Lead small-moderate projects
• Support Rapid Improvement Teams
• Full time role
Green BeltsGreen Belts
• Lead small-moderate projects
• Support Rapid Improvement Teams
• Full time role
Green BeltsGreen Belts• Leads larger projects • Coaches Green Belts• Full-time position
Black BeltsBlack Belts
• Leads larger projects • Coaches Green Belts• Full-time position
Black BeltsBlack Belts
• Trains Black Belts • Trains Green Belts• Leads Complex Projects • Full-time position
MasterMasterBlack BeltsBlack Belts
• Trains Black Belts • Trains Green Belts• Leads Complex Projects • Full-time position
MasterMasterBlack BeltsBlack Belts Team LeadersTeam Leaders
• RI Team or Project specific support
• Part-time
Team LeadersTeam Leaders
• RI Team or Project specific support
• Part-time
• Internal Deployment Leader• Captures Metrics• Owns Communication Plan• Owns Deployment Plan
Lean ChampionLean Champion
Lean Office
• Internal Deployment Leader• Captures Metrics• Owns Communication Plan• Owns Deployment Plan
Lean ChampionLean Champion
Lean Office
• Owns Rapid Improv. Plan• Owns Redeployment Plan• Owns financial results• Removes Barriers
Value StreamValue StreamChampionChampion
Line Departments
• Owns Rapid Improv. Plan• Owns Redeployment Plan• Owns financial results• Removes Barriers
Value StreamValue StreamChampionChampion
Line Departments
Roles and Responsibilities
NAVSEA Lean Six Sigma College (L6SC)
EnterpriseEnterpriseTraining:Training:
CoursesCoursesBlack Belt - Six weeks of instruction over six months
Green Belt - Five days of instruction over 1 week
Champion - Three days of instruction
Pennsylvania
Indiana
California
Virginia
Maryland
Florida
Maine
33
L e a n
Hawaii
Mississippi
WashingtonPUGET SOUND NSY & IMF
NUWC KEYPORT
PEARL HARBOR NSY & IMF
SUPSHIP Bath (detachment)NSWC CORONANSWC PORT HUENEME
South West Regional Repair
NSWC CRANE
SUPSHIP GULF COAST
NSWC Coastal Systems Station (Panama City)
NSWC Ship Systems EngineeringStation
NAVAL Foundry & Propeller Center
NAVSHIPYD NORFOLKNSWC DAHLGRENSurface Combat Systems
Center (Dam Neck)Mid Atlantic Regional Repair
NAVSEA HQ PEOsNSWC HQ
Washington DC
NSWC CARDEROCKNSWC INDIAN HEAD
SUPSHIP GROTON
NUWC HQNUWC NEWPORT
Connecticut
NAVSHIPYD PORTSMOUTHSUPSHIP BATHSUBMEPP Rhode Island
Pennsylvania
Indiana
California
Virginia
Maryland
Florida
Maine
333333
L e a nL e a n
Hawaii
Mississippi
WashingtonPUGET SOUND NSY & IMF
NUWC KEYPORT
PEARL HARBOR NSY & IMF
SUPSHIP Bath (detachment)NSWC CORONANSWC PORT HUENEME
South West Regional Repair
NSWC CRANE
SUPSHIP GULF COAST
NSWC Coastal Systems Station (Panama City)
NSWC Ship Systems EngineeringStation
NAVAL Foundry & Propeller Center
NAVSHIPYD NORFOLKNSWC DAHLGRENSurface Combat Systems
Center (Dam Neck)Mid Atlantic Regional Repair
NAVSEA HQ PEOsNSWC HQ
Washington DC
NSWC CARDEROCKNSWC INDIAN HEAD
SUPSHIP GROTON
NUWC HQNUWC NEWPORT
Connecticut
NAVSHIPYD PORTSMOUTHSUPSHIP BATHSUBMEPP Rhode Island
Regional Training for Green Belts &
Champions
Regional Training for Green Belts &
Champions
Course# of
ClassesStudents per Class
Total Trained
Black Belt 7 22 154Green Belt 13 22 286
VS Champion 13 22+ 286Lean Repair Exercise 6 40 240
TOTAL 39 966
• NAVSEA/PEOs
• Naval Shipyards
• Naval Warfare Centers
• Fleet
Joint Force Involvement
•
West Coast L6SC Site –NSWC Port Hueneme
(start FY 06)
East Coast L6SC Site –
Norfolk Naval Shipyard
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Cost Reductions FY07 Value(By Value Stream)
21.1%
3.6%
12.3%
3.3%9.6%24.7%
8.9%
16.4%
Subs L & H C920 BackshopC930 Backshop C960 Backshop C970 BackshopCVN FA Focus
Total RIEs/Projects Completed: 72Total CRRs Submitted: 69
Lean Implementation Example:Norfolk Naval Shipyard (NNSY)
FY05 Lean Implementation Plan/Resultseee aaa nnnLLL eee aaa nnnLLL
Cost Reductions
02468
101214161820
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY05
$M
FY Model FY07 Projected Reduction Actual
Cost Reductions
02468
101214161820
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY05
$M
FY Model FY07 Projected Reduction Actual
Deployment Model Based on $200K/RIE
Based on Actual CRRs Submitted; Avg:
$200K/CRR
Cost Reduction FY07 Value(By Affected Platforms)
30.0% 28.7%
41.3%
SUBS CARRIERS OVERHEAD
NNSY Lean ImplementationNNSY Lean Implementation
Lean Training(Roles)
Lean Training(Roles)
Lean Deployment
(Participation)
Lean Deployment
(Participation)
Lean Execution
(ROI)
Lean Execution
(ROI)
Green Belt
Training
Green Belt
TrainingBlack Belt Training
Black Belt Training
Champion Training
Champion Training
Rapid Improvement
Events & Projects
Rapid Improvement
Events & Projects
Lean Basics
(Workforce)
Lean Basics
(Workforce)
RedeploymentRedeploymentCost Reductions
Cost Reductions
Lean Transformation Plan: NNSY Metrics Dashboard
Annual Target: $18.5MAct to Date: $12.7M
Note: Metrics are measuredagainst TFL Deployment Modelbased on N/20 Pace for FY05 perNAVSEA Memo 5200 Ser TFL/006dated 14 Jan 06
Annual Target: 22Act to Date: 21
Annual Target: TBDAct to Date: 57
Annual Target: NoneAct to Date: 75
Annual Target: 77Act to Date: 70
Annual Target: 1227Act to Date: 1060
Annual Target: 45Act to Date: 42
TFL ModelFirst YearTarget Pace:N/20 (5%)
Accrual in FY05 for FY07 Based on Deployment Plan
(RIE rate and $200K ROI)
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Structural920
Machine930
Electrical950
Piping960
Service970
Key
/Sup
port
Pro
cess
esBu
dget
; Sch
edul
e; P
aper
; Mat
eria
l
FY06 Lean Execution Strategy:
SSN CVN SSBN/GNShop Stores/ MRP
Generate 1348[2.2]
CHRIMP
After Receipt of Order(ARO)
HM Review &AUL Approval
[1.2]
ProcessMRQT / JML
in MAT &Forward
[3.1]
Overpack atHAZMAT
Accum. Area[7.3]
ReviewInventory forDeposition
[9.1]
MechanicUse / Reuse
Paint &Return [7.2]
Prep Wastefor Shipment
[8.2]
Inspect Paintfor QA[4.5]
HAZMINCENVerify &
Accept Order[4.3]
ReceiptMaterial(MMD)[4.1]
Supplier FillsOrder ($700)
[3.6]
LocalContractAward[3.5]
Credit CardPurchase
[3.4]
TechnicalReview[3.2]
Request to AddHM to AUL
[1.1]
Transport toB/280
Warehouse[4.2]
Ship NewPaint to B/
276[3.7]
Transport toHAZMINSatellite
[6.4]
START:Approved
WorkPackage
LEAN PAINT VSM
Source To Local Shop Stores
NON-STANDARD
>$2,500 <$2,500
LAB RESULTS (LIMS)
NON-CRITICAL
WASTE
CRITICAL
FAIL (MPR/PDQR)
Call Out Paint(ARK)[6.1]
CURRENT STATE
Rev. 10/20/2004
REJECT MATERIAL (MPR/SDR)
Request PaintTest[4.4]
MaterialKitting / Pick
Up[6.2]
ProcessMMD "Issue"
in HSMS[6.3]
Verify AUL,Create HSMS
Record &Label[4.8]
ResolveDefectiveMaterial
[4.6]
Decant &Issue Paint(Track Use)
[7.1]
Transport &Receipt
Waste B/506[8.1]
AutomaticCC "0"SC "A"
CC "2"SC "P"
END:Close OutProject
SHOP STORES RETURNCREDIT
EXPIREDSHELF LIFE
END:PaintRFI
ManageMaterial
[4.7]
END:Waste
Disposed(10%)
Submit "OutageVerification Log"
[7.3]
UDM
Source toFederalSupplyService
[3.3]
STANDARD
NON-STANDARD
ID Mat'l &Generate JML
[2.1]
START: JobExecution
& QA = "4"
END:TransportOff-Base(15%)[9.2]
S/F &Contractor
Paint Waste[7.3]
(10%)
(15%)(75%)
PASS
EXCESS / EXPIRED S/L
AccountsPayable
[5.0]
Procurement Action LeadTime (PALT)
Shop Stores/ MRPGenerate 1348
[562/224]
CHRIMP
After Receipt of Order(ARO)
ProcessMRQT / JML
[MAT01]
MechanicUse / Reuse
Paint &Return [971]
Inspect Paintfor QA[130]
ReceiptMaterial(MMD)[562]
LocalContract
Award[530]
Ship NewPaint toEUSL
START:Approved
WorkPackage
LEAN PAINT VSM
Source To Local Shop Stores
Call Out Paint(ARK)[225]
FUTURE STATE
Decant &Issue Paint(Track Use)
[971]
AutomaticCC "0"SC "A"Use "J"
END:Close Out
Project
ID Mat'l &Generate JML
[250]
START: JobExecution
AccountsPayable
[610]
Procurement Action LeadTime (PALT)
Forecast
Del iveryOrder
ARK Call Out / Shop StoresRelease Order
Notification of Lot (Batch)Approval
Internal Receipts
MaterialKitting / Pick
Up[562]
Requisition
.
VendorFills Order[Virtual SS]
“Just in Time”Delivery
Before After
Example:
Submarine Structural Fab
Before After
Cost ReductionFY05 $0KFY06 ~$575KFY07 ~$767K
Cost ReductionFY05 ~$444KFY06 ~$455KFY07 ~$468K
DrivingDown
Cost$$$
Example:
Supply Chain
CostPerformance
SchedulePerformance
QualityPerformance
SafetyPerformance
C-200
C-134
C-610
Vendor
Waterfront
C-225C-560 (Bldg 276)
C-530
C-560(Bldg 280)
C-515.1
C-560 (Kitting)C-136
C-200
C-134
C-610
Vendor
Waterfront
C-225C-560 (Bldg 267)
C-530
C-560Bld 280
C-515.1
C-560 (Kitting)C-136
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Core Mission
USS HAMPTON (SSN-767) FY05 DMP USS CHARLOTTE (SSN-766) FY06 DMP
USS TRUMAN (CVN-75) FY06 DPIA
FY06 FY07
USS GEORGIA (SSBN-729) FY05 ERO/CONV USS ALASKA (SSBN-732) FY07 ERO
NNSY Process Improvement Program:“Transforming to Better Support the Fleet”
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