department of the navy lean six sigma way ahead nick kunesh special assistant to the secretary of...

Department of the NavyLean Six Sigma

Way Ahead

Nick Kunesh Special

Assistant to the Secretary of the Navy Lean Six Sigma

16 May 2007

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DON Business Transformation

Performance Driven Better Resource Decisions

Financial Improvement Program- Auditability and Internal Controls

Processes SystemsPeople

- Measurement -

- Standardization - and Internal

Controls

Accurate, Timely, and Transparent Financial Visibility

The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening

the quality of financial information.

FY 07 DoN Budget

RDT&E13%

O&M31%

Procurement26%

M&P30%

DoN Total Obligation Authority (TOA)

$127.3B 65% is people cost

FY06 TOA$125.6B

CVN-21 DDX LCS JSF MMA V-22 ACS LPD-17 EFV LHA(R) HLR

Assign a CPI/LSS focal point to coordinate with the DoD CPI/LSS Program Office.

Establish a 12 to 18 month workforce training objective of 1% LSS black belt trained and 5% green belt trained personnel. Personnel selected should include top-rated staff members.

Include CPI/LSS in individual employee performance objectives.

Provide support to the DoD CPI/LSS Program Office in DoD-wide process improvement initiatives.

Report progress and outcomes of ongoing and completed CPI/LSS projects and activities to the DoD CPI/LSS Program Office every 30 days initially.

SECNAV Lean Six Sigma Deployment Session

27 June 2006

SECNAV CNO

Under SECNAV ACMC

ASN (RD&A) ASN (M&RA)

ASN (FM&C) ASN (I&E)

DCMC (M&RA) DCMC (I&L)

NAVSEA NAVAIR

NAVSUP NAVFAC

SPAWAR N1

N4B N80

DASN (Logistics) DASN (RDT&E)

DASN (Environment) ADC (P&R)

GC BUMED

DNS CNI COO

DoN Lean Six Sigma Three Year Action Plan

Phase I Year 1CY06

Phase II Year 2CY07

Phase III Year 3CY08

Leadership

• Leadership Kick-off and monthly progress meetings

• Balance process metrics across DoN objectives & goals

• Plan for XX% reduction in overhead through CY08

• NSPS SES / Flag fitness report bullet that recognizes LSS contributions

• Accelerate the journey for those who have started (AIRSpeed, Task Force Lean, et. al.) and report out financial results

• Start the journey with enabling service, support and transactional functions (i.e., FIN, HR, SC, IT, etc)

• Take XX% of overhead cost out of the Department

• Accelerate integration w/ industrial base and be accountable for financial harvesting

• Re-align to DoN 07 objectives & goals, and measure LSS output to DoN 06 objectives and goals

• All military and civilian performance evaluations and fitness reports recognize LSS contributions

• Take an additional XX% of overhead cost out of the Department


• Accelerate Enterprise maturity

Work Product

• High impact core value streams are identified, mapped, and all applicable personnel are prepared to DMAIC

• Accelerate Integration of organic Supply & Industrial Base with external suppliers (i.e., private industry, DLA)

• Identify where LSS applies to the Warfighter (i.e., war-game planning & events)

• Identify and clean legacy data bases for conversion to Navy ERP

• High impact core value streams are DMAIC

• Continuous Improvement of those activities that started before Jan 06

• 100% of all major Defense contracts awarded to industry will contain a LSS incentive clause

• Introduce Malcolm Baldrige criteria

• High impact core value streams are revisited

• Service, support and transactional functions are in a Continuous Improvement closed loop

• 25% of extended (with industry) value chains have been leaned out

Education and Training

• 1,000 Black Belts certified

• 2,000 Green Belts certified

• 25% of GS-15 /06 and above complete Champion training

• Synchronize LSS training body of knowledge and training methods across the DoN

• Incorporate initial LSS training into all training schools (review Officer, Enlisted & Civilian career paths)

• 1,000 additional Black Belts

• 4,000 additional Green Belts


• Optimize LSS training across enterprise; BB/GB factory; (incorporate into 5 vector model)

• Train additional Black Belts equal to 1% of affected workforce

• Train additional Green Belts equal to 4% of affected workforce

• 100% of GS-15 / 06 and above are LSS Champions

• 5% of GS-15 / 06 and above are Green Belt certified

Phase I Year 1CY06

Leadership

• Leadership Kick-off and monthly progress meetings

• Balance process metrics across DoN objectives & goals

• Plan for XX% reduction in overhead through CY08

• NSPS SES / Flag fitness report bullet that recognizes LSS contributions

• Accelerate the journey for those who have started (AIRSpeed, Task Force Lean, et. al.) and report out financial results

• Start the journey with enabling service, support and transactional functions (i.e., FIN, HR, SC, IT, etc)

Work Product

• High impact core value streams are identified, mapped, and all applicable personnel are prepared to DMAIC

• Accelerate Integration of organic Supply & Industrial Base with external suppliers (i.e., private industry, DLA)

• Identify where LSS applies to the Warfighter (i.e. war-game planning & events)

• Identify and clean legacy data bases for conversion to Navy ERP


• 1,000 Black Belts certified

• 2,000 Green Belts certified


• Synchronize LSS training body of knowledge and training methods across the DoN

• Incorporate initial LSS training into all training schools (review Officer, Enlisted & Civilian career paths)

Phase II Year 2CY07

Leadership

• Take XX% of overhead cost out of the Department

• Accelerate integration w/ industrial base and be accountable for financial harvesting


• All military and civilian performance evaluations and fitness reports recognize LSS contributions

Work Product

• High impact core value streams are DMAIC

• Continuous Improvement of those activities that started before Jan 06

• 100% of all major Defense contracts awarded to industry will contain a LSS incentive clause

• Introduce Malcolm Baldrige criteria


• 1,000 additional Black Belts

• 4,000 additional Green Belts • 100% of GS-15 /06 and above complete Champion training

• Optimize LSS training across enterprise; BB/GB factory; (incorporate into 5 vector model)

Phase III Year 3CY08

Leadership

• Take an additional XX% of overhead cost out of the Department


• Accelerate Enterprise maturity

Work Product

• High impact core value streams are revisited

• Service, support and transactional functions are in a Continuous Improvement closed loop

• 25% of extended (with industry) value chains have been leaned out


• Train additional Black Belts equal to 1% of affected workforce

• Train additional Green Belts equal to 4% of affected workforce

• 100% of GS-15 / 06 and above are LSS Champions

• 5% of GS-15 / 06 and above are Green Belt certified

SECNAV Values Leaders Who…• Excel At Business / Process Improvement

• Deliver Solutions At Best Cost

• Are Change Agents

• Lead Based On Insightful Metrics

• Use LSS To Improve

• Cascade / Measure SECNAV Guidance Penetration Throughout Organizations

SECNAV’s Guidance for Senior Executive’s PerformanceAlign Leadership Expectations With Workforce Accountabilities

SECNAV SMR FEEDBACK

MEMORANDUM FOR CHIEF OF NAVAL OPERATIONS COMMANDANT OF THE MARINE CORPS ASSISTANT SECRETARIES OF THE NAVY GENERAL COUNSEL

SUBJECT: SECNAV Monthly Review (SMR) – Feedback from 4 May SessionThank you for the significant effort that you and your organizations have put into the SMR. All are making progress towards depicting Department of the Navy (DON) activities and programs in an understandable way,

with clear indicators of priority and value. In particular, your listings of the “Top 5 Concerns” help focus our collective efforts to take future, meaningful action. I would like to discipline our discussions to center on the most significant issues, those of near-term interest as well as those of overall importance to the DON. I would encourage each of you to use the SMR forum to help assemble a cogent picture of the multi-faceted issues we face together.

I asked you last month to improve metrics, and many improvements are evident. Navy is commended for their progress in the Warfare Enterprise areas, clearly the product of hard work and careful analysis. Marine Corps depiction of Readiness is comprehensive and intuitive. ASN (RD&A) milestone charts place key points in context and timescale. ASN (FM&C) depicted complex reprogramming actions in an easily understandable way. In as many areas as possible, metrics and measures used at the SMR should be built on an “information” basis, assembling or depicting data in a structured way that builds insight. Continue to focus efforts on metric improvements in this regard for the next session. The improvements in DON metrics adds to the “measure” step in the DMAIC process which underpins SMR.

Continue to press your organizations to improve SMR based on our individual discussions last month. Though the turn-around is quick, I would ask you to reflect our agreements in the June SMR reports.

As much as possible, I ask you to address the “Top 5 Concerns” by ensuring that the strategy to improve each one is clearly depicted in the SMR with its accompanying metrics. Many of the “Top 5” concerns should also be addressed using Lean Six Sigma (LSS) precepts, either for the effort itself or for its underlying processes. Where that is the case, the LSS effort should be clearly depicted, as well. Several good examples were discussed in the latest session: Navy efforts in SEAL recruiting and training; ASN (M&RA) Comprehensive Casualty Care; Marine and ASN (RD&A) efforts in delivering Mine Resistant Ambush Protected (MRAP) vehicles.

I want to understand how you are using LSS to move your organizations forward. To that end, LSS reporting should continue to document training progress to support our reporting responsibilities to OSD in the DoD enterprise LSS effort. High Impact Core Value Streams should also continue to be reported. Details of those Lean Six Sigma efforts should be clearly depicted in the SMR report, either in the separate LSS section or in the details of the reporting of the activity, as best suits. Underutilized Green and Black Belts should be assigned to Lean Six Sigma activity relative to your “Top 5 Concerns” or our department goals and objectives.

Attachment (1) lists actions for specific organizations. Please find the best approach to address them before our next session on 15 June. The SIPRNet SMR Quickplace web-site is populated with the May SMR

report, as well as archived reports from previous months for your personal use. Please contact Mr. Griffes, Mr. Ferko, or Mr. Tesch for further assistance.

Donald C. Winter

May 08, 2007THE SECRETARY OF THE NAVY

Washington DC

CNO Guidance for 2007

Focus on Execution

2 February 2007

Each objective will be pursued using discrete, measurable goals. The accountable Executive Agent is listed:

“Develop effective business strategies for the day-to-day management of Navy processes through the use of Lean Six Sigma and other business practices (DNS)"

The Director of Navy Staff will develop an execution plan for the achievement of this objectives within 60 days.

The Vice Chief of Naval Operations will review and approve the execution plan.

Secretary of the Navy

Under Secretary of the Navy

ASN (FM&C)ASN (RD&A)

CMCCNO

ASN (M&RA)

100%100%100%100%

92% (average)

100%

100%

74% 90%

Lean Six Sigma Champions Trained or Scheduled% of Direct Reports and 1st Tier

ASN (I&E) OGC

8 Dec 06

TQL/TQMISO 9000

1990

1999

2000

2001

2003

2002

2004

ASN RD&A Directs Use of LSS

DEPOTS and SHIPYARDS COMMENCE

LEAN

NAVAL AVIATION ENTERPRISE

LEAN Events on Three AIRCRAFT CARRIERS

NAVSEA Task Force Lean

NAVAIR HQ AIRSPEED

DoD Senior Leadership Directs Use of LSS

Navy and USMC Industrial Base Demonstrates Output From LSS

2005

Transactional Projects Yield

Output

2006

DoN Lean Six Sigma (LSS) Journey

SECNAV Directs roll-out across all DoN Service, Support and

Transactional Activities.

2007

RD&A

CNO UNDER CMC

FM&C

I&EM&RA

Four Outputs: 1. Knowledge Based Sharing

2. Training Standardization

3. Roll Out Scalability

4. Financial Harvesting

Communications WG Steve Santos, GS-15

NAVSUP

WG #1

Education & Training WGRDML Skinner

NAVAIR

Metrics WGCAPT SnedekerSECNAV OPA

Financial Harvesting WGJim Brice, SES

NAVSEA

Tools WGCAPT Stabile

NAVAIR

DON LEAN SIX SIGMA Team and Process Flow

TTL ChairNick Kunesh

SECNAV SA, LSS

GC

Transformational Team Leaders (TTL) Forum LSS Network

WG #2

WG #3

WG #4

WG #5

FWG Membership

Executive Leader: Value Stream ChampionMr. Nick Kunesh, SECNAV SA Ms. Caral Spangler ASN (FM&C)

Team Leader: Black Belt: Mr. Jim Brice, SEA TFL Ms. Chris Cummings, NAVAIRTeam Members

Sally Reams, ASN (FM&C)David VanDornick, Mike Hansley, Susan Yang, NAVSEA Capt. Bob Novak, NAVAIRDale Criswell, NAVSUPBob Kamensky, Greg Hansford, Tom Straughn, SPAWARDave Clifton, Pat Lynch, USMCKatherine Clark, NAVAUDSVCCarla Moore, PEO(IS)Gary Younes, DASN (CHR)/OCHRCdr. Duane Schatz, Junius Wright, (ONR)Oscar Friedman PEO(LMW)Capt Chuck Mingonet, Cdr Steve Evans, OPNAV N8Gloria Tuck, OPNAV N4Heidi Bopp, ASN(M&B)

Benefits Categorization Types 1, 2, and 3 (Phase 1)

• Type 1: Permanent cost reduction identified to BLI(s) (Hard Savings)*

– Example: Elimination of non-labor cost; reduced CSS Support; elimination of whole work-year(s) and associated billets

• Type 2: Potential cost reduction from decreased cycle times or improved equipment/space utilization (Soft Savings)*

– Example: Improved resource utilization to produce a product (work-year reduction, but does not eliminate a billet, improved capital equipment utilization, partial footprint reduction)

• Type 3: Other benefits (Cost Avoidance)*– Example: Improves safety, customer satisfaction, quality, and work-life. No

financial validation required

*(Industry Equivalent Terms)

End

DC

PS

Belt

SFL

FR

CLFR

FSME

Project Charter

Pre-Launch Define Measure ControlAnalyze Improve

(R) Calculates

and completes initial FBW

(as-is) baseline

data (DMS Metric 2)

(R) Requests FR from SFL

(Electronically)

(R) Updates FBW (Non-

Recurring and To-Be Costs)

(DMS Metric 2)

(R) Reviews project charter and assigns

FR. Informs Belt, FR, PS and DC.

(R) Reviews charter for

familiarization.

(R) Completes FBW with Manpower and BLIs

(DMS Metrics

3&5)

(R) Electronically notifies FR of FBW to be reviewed/validated early in Control Phase. (NLT 2 weeks before

tollgate)

(R/A) consolidates &

reports Command Type 1 & Type 2 Benefits

(R/A) Updates

DMS

(R) Prints out FBW and the “FR Documentation of

Review Sheet” and brings to TG.

Start

(R) Projects Financial

Benefits & Enters project

into DMS

Financial Benefits Validation Process – Phase 1

(R) Identifies the appropriate

FSME and informs FSME

and Belt

(R) Contacts

FR for planning purposes

(R) Reviews FBW and inserts comments on

the “FR Documentation of Review Sheet”.

(Locks Estimate in DMS)

(R) Examines expected benefits

during define phase. Reviews/

updates project charter. Ensures

benefits are realistic.

(R) Updates project charter benefit estimate if root cause analysis results in any

change.

Key:DC Deployment Champion (Lean Champion)PS Project Sponsor (Value Stream Champion)FR Financial Representative (Independent Reviewer)SFL Site Financial LeadCLFR Command Level Financial Rep FSME Financial Subject Matter Expert

(R/A) Notifies Customers of

Financial Impact to BLIs

Validate

(R/A) Validates Process and Financial

Benefits

(R) Validates Financial Benefits

(Locks Actuals in DMS)

(R/A) Updates

DMS

Assists Belt with

compilation of financial

information

CLFR

PM/PEO/OPBUD

HOLDERS

Enterprise:Provider or

Fleet Readiness

CNO/CMCACM

C, DC PROG &

RES.

Execution Year Out yearsBudget Year

Disseminates Type 1 Benefits by BLI for all Fiscal Years

and identifies as Type A or B

Leveraging Financial Benefits – Phase 2

Key:CLFR: Command Level Financial RepPM: Program Manager/Responsible ManagerPEO: Program Executive OfficerEnt: Enterprise FMB: Navy Comptroller (ASN/FM)CNO/CMC Chief of Naval Operations /Commandant Marine Corps (OPNAV)

FMB

Start

PM/PEO Reprioritizes

and Reprograms

Type 1A Benefits in

YOE

FMB Approves via normal BTR or ATR process

Enterprise keeps Book on BY

Benefits - Offsets Congressional Reductions or

Holds for Execution Year

Enterprise Informed of BY

Benefits

Enterprise Reprioritizes &

Reprograms and Informs CNO/CMC

CNO/CMC Informed

CNO/CMC Prioritizes &

Structures Budget in POM Years

FMB Approves via normal BTR or ATR Process

PM/PEO Informs

Appropriate Enterprise

and CNO of Benefits

CNO/CMC Informed of

outyear benefits

Enterprise is defined as follows:

For Navy: Fleet Readiness Enterprise for Current Readiness and Provider Enterprise for Future Capabilities & Support of Current Readiness.

For MC: Deputy Commandants, MARFOR Commanders, Commander MCSC and Director C4I.

1A

1BPBISReport

Department of the Navy Lean Six Sigma Density & Event Metrics

Direct Reports People at Site Trained In Training

Green Belt Trained

Champion Training Kaizen

GB/BB Projects

NAVSEA & PEOs 51,035 272 62 1,964 1,594 1,341 529 NAVAIR & PEOs (NAE) 25,869 344 42 721 903 149 418 NAVFAC 12,807 3 9 106 4 4 NAVSUP 9,869 56 45 151 1 86 SPAWAR & PEOs 7,574 53 3 483 140 102 143 SSP 1,280 2 - 51 178 127 15 ONR 2,954 2 8 104 1 4 PEO (LS) 193 3 2 18 1 ASN(RD&A) HQ 156 5 159 4 1 NIPO 140 1 13 122 3 7 DoD/DoN Senior Leadership 1,162 MARCOR 2 - 9 200 54 13 ASN(M&RA) 2 1 18 30 1 5

Total 111,877 740 108 3,328 4,867 1,787 1,226

Blackbelt Events

As of Feb 07

Standardization of Definitions

Standardize the terminology of specific CPI programs

DoN definitions have been approved for Lean, Six Sigma, Theory of Constraints (TOC) and Kaizen. Lean: A systematic methodology for continuous process improvement based on the principles of customer value, waste elimination, and pursuit of process perfection. Lean is unique from traditional process improvement strategies in that its primary focus is on eliminating non-value added activities and creating flow and pull in the value added activities. A major result of Lean is an improvement in cycle time. Lean attacks waste. Six-Sigma: A systematic methodology for process improvement that focuses on reducing variation, producing highly repeatable processes, and creating customer satisfaction. Six-Sigma utilizes the Define-Measure-Analyze-Improve-Control (DMAIC) methodology to make process change through disciplined use of facts, data, and statistical analysis and control of existing processes. It also includes an understanding of customer needs and diligent attention to managing, improving, and reinventing business processes. Six-Sigma attacks variation. Theory of Constraints (TOC): A systematic approach to optimize resource utilization by identifying, exploiting, subordinating, elevating and reassessing constraints in the process. Scientific principles are applied as a set of logical thinking processes to develop transformational, breakthrough business solutions. A constraint is any resource whose capacity is less than the demand placed upon it. TOC attacks constraints and barriers (a restriction or other block to increases in output).

Kaizen (also known as “Kaizen Event”): A Japanese term meaning “Continuous Improvement”. In Lean Six-Sigma terms, it refers to a highly focused, short-term rapid improvement event performed by cross-functional teams at the work-group level that identifies and removes waste from a process. Good Kaizen events follow the Define-Measure-Analyze-Improve-Control (DMAIC) recipe, can be performed quickly (usually less than two months), and involve the use of basic Lean Six-Sigma tools to implement process improvement solutions. Kaizen is focused on rapid improvement.

Standardize DoN certification process for

Teaching/Black Belt Training Certification Process (Approved)

Training Testing Projects OtherMentoring

Min 160 hrs over min four (4) weeks covering Navy-wide Body of Knowledge (BOK) including project work

Comprehensive (to BOK) Training Completion Test with >75% passing score and allowance for one (1) retest. DoN ASQ Certification Exam encouraged.

Successful (signed off final tollgate) completion of: two (2) LSS Full DMAIC projects minimum 3-6 month projects and one (1) RIE/ KAIZEN event

Mentor two (2) GBs through one project each or three (3) RIEs/KAIZENs for each

Certification by each Command's Head of LSS Office or Approval Board

Green Belt Training Certification Process (Approved)

Training Testing Projects Other

Min 40 hrs covering Navy-wide BOK for GBs including project work

Comprehensive (to BOK) Training Completion Test w/ >75% passing score and allowance for one (1) retest.

Successful (signed off final tollgate) completion of: two (2) LSS Full DMAIC projects (minimum 2-4 month); or four (4) RIEs/ KAIZENs; or one (1) LSS and three (3) RIEs/ KAIZENs

None Certification by each Command's Head of LSS Office or Approval Board

Mentoring

DoN/ASQ Lean Six Sigma (LSS) Black Belts

• iGrafx Process for Six Sigma– LSS expert/Black Belt/Green Belt process mapping and analysis tool– Optimizes processes via modeling and simulation capability– Captures knowledge (value stream and process maps) for sharing and

enabling replication

• Minitab – Statistical software designed to support Lean Six Sigma and other quality

improvement projects– Integrates seamlessly with iGrafx

• Deployment Management System (DMS)– Web-based application for managing enterprise-wide Lean Six Sigma

deployment– Currently in Phase I deployment at NAVAIR

Lean Six Sigma Software Tools

Lean Six Sigma Improvements for CVN-21Lean Six Sigma Improvements for CVN-21Milestone BMilestone B

CVN-21’s Milestone B Documentation Effort

TEMPDOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21

APMLife CycleSupport

APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design

MGRIntegratedWarfareSystems

USD AT&L

NVA

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC

NavalSurfaceWarfareCenter

NGNN

ASD (N II)DIAP

SPAWARChief Engr.PEO

IWSPEOC4I

Approvals

NVA

APPROVALS = NVA

12.5 Months 2.5 Months

Rework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA

9 Months

24.0 Months

DOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21

APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWSPEOC4I

Carderock

12.5 Months

Rework = 3 Revisions/Adjutications = NVA

24.0 Months

9 Months 2.5 Months

Rework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA APPROVALS = NVA

Approvals

LFT&E

DOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21


APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWSPEOC4I

OSDPA&E

CAIG

NAVSEA017

APMCost Engr.

X5X5

Each red arrow = 100 revisions!!

13.5 Months

7 Months 2.5 Months4 Months

Draft/Initial Reviews = VA Rework = 100 Revisions/Adjutications = NVA APPROVALS = NVA

Approvals

APMAcq &

Contracts

PLCCE

C4ISRDOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21


APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

INTERNAL VA

NVA

VA

24 Months NVA

APPROVALS = NVA

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWS

PEOC4I &TEAM

APMAcq. &

Contracts

20X

20X

Approvals

37 Months 4.5 Months

Draft/Initial Reviews = VA Rework = 3 Revisons/Adjutications = NVA

65.5 Months

9X

VAR IIDOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21


APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWSPEOC4I

Carderock

Approvals

APPROVALS = NVA

22.0 Months


Draft/Initial Reviews = VA

9 Months

Rework = 1 Revision/Adjutication = NVA

CARDDOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21


APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWSPEOC4I

OSDPA&E

CAIG

NAVSEA017

APMCost Engr.

APMAcquisition& Contracts

Approvals

APPROVALS = NVARework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA

2 Months 5 Months 0.5 Months

7.5 Months

ILADOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21


APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWSPEOC4I

OSDPA&E

CAIG

NAVSEA017

APMCost Engr.

APMAcquisition& Contracts

NAVICP

SYSCOMSUP

TRNGNETC

NAVSEALog. Cen.

SYSCOMNav Fac

FLEET

FORCES

LANTFLEET

PACFLEET

DASNEnviron.

DASNSafety

DASNLogistics

NCCACost

Analysis

ASNI&E

OPNAV N795Training NAVMAC

N125 Supt.Naval U/P

Analysis Ctr.OPNAVN125 OPNAV

N41

SYSCOMSPAWAR

Approvals

Draft/Initial Review = VA

12 Months

APPROVALS = NVA

27.25 Months


Rework = Revisions/Adjutications = NVA

7 CVN-21 MS B documents analyzed:

Man-hours expended: 245,742

Total cost: $18.4M

Total review touch points: 6,952

Non value add (NVA) touch points: 6,654

56 different organization ‘touch-points’

Average number of organizations touched per document = 22

NVA cost: $11.171M (96%)

NVA man-hours: 148,939

Team’s Perspective $11.17M NVA touch points

Note: Above data based on CVN-21 Milestone B complexity analysis. NVA determined from CVN-21 team perspective.

CVN-21’s Milestone B TEMP Time and Motion Study

Note: Arrows represent review loops, red are non value added, black are value added.

TEMP Doc Data Summary

Queue Time: included in NVA routing + 26 days for approvals

Total Man-hours: 16,612

Total Cost: $1.246M

Total Arrows: 377

VA = 47 (12%)

NVA = 330 (88%)

NVA Cost = $1.091

DOT&E

DT&E

ASNRDA

DoNWarfare Reqmts

&ProgramsN6/N7(N78)

SYS ENGR

RD&ADASNShips

COTF

DoNDir., T&E

N091

SEA – 08Nuclear

SYSCOMAir

PEOCarriers

SPAWARC4I

SYSCOMLabs

PMCVN 21


APMT&E

APMBFM

APMDesign/

Build

MGRAviation Systems

MGRShip

Design


USD AT&L

NVA

NAVSEAShips

05

CONV.SYS.

LFT&E

T&ETeam

CSC


NGNN

ASD (N II)DIAP


IWSPEOC4I

NVA

APPROVALS = NVA


Rework = 3 Revisions/Adjutications = NVADraft/Initial Reviews = VA

9 Months

24.0 Months

Justification and Approval (J&A) ProcessRapid Improvement Event

Current State Analysis• 41 day average flow time • 51 Hand offs• 1% first pass yield• 40% submitted

electronically• Five serial reviews

Future State Solution• 5.4 day average flow time • 11 Hand offs• 74% first pass yield• 100% submitted

electronically• Three serial reviews

Goal: Reduce J&A flow time and rework; increase review time flexibility

• Streamlined processStreamlined process• Increased automation -all reviews electronic --instant receipt Increased automation -all reviews electronic --instant receipt

notification notification • Reduced serial reviews / reworkReduced serial reviews / rework• Content requirements communicated to SYSCOM; submittal Content requirements communicated to SYSCOM; submittal

templates createdtemplates created

STARTAnalyst receives electronic

J&A/ Action Memo from respective SYSCOM

Analyst reads, transmits electronic copy of documents to respective DASN

office, General Counsel, and RDA Admin for DCN #.

Analyst reviews document.

Documentsreviewedin parallel.

Respective DASN office

performs internal review.

Corrects A/O

General Counsel reviews

document.

General Counsel

DASN

Analyst collects and assembles all

reviews.

LEGEND

Movement

Wait/Delay

Process

Document

DecisionInput

Mr. Young Reviews

Lead timeMin: 15 minMax: 8 hrs.Mode: 4 hrs.Staffing:

Review Sat

Major change

No

END75% Mr. Young

SIGNS

JUSTIFICATION & APPROVAL "FUTURE STATE" PROCESS VSM 09/07/05

J&A/ Action Memo sent electronicallyto Mr.Young for

review and signature.

Sent by CAPT. McManamon

Lead timeMin: 5 min.Max: 6 min.Mode: 5 min.Staffing: 1

Lead timeMin: 1 minMax: 2 minMode: 1 min.Staffing: 1

Parallel Work

Lead timeMin: 1 hr.Max: Mode: 2 daysStaffing: 1



Capt. McManamon reviews electronicJ&A document and

Action Memo

Lead timeMin: 30 min.Max: 8 hrs.Mode: 8 hrs.Staffing: 1

Review Sat

Contact SYSCOM for

(substantive revisions)

Wait for revisions from SYSCOM

Analyst reviews and enters changes

Lead timeMin: 15 min.Max: 2 daysMode: 1 dayStaffing: 1

Lead timeMin: 5 min.Max: 8 hrs.Mode: 8 hrs.Staffing:

Contact SYSCOM for

minor clerical changes. ACQ

makes changes.

Lead timeMin: 30 min.Max: 3 daysMode: 2 daysStaffing: 1

Lead timeMin: 1 dayMax: 3 daysMode: 2 daysStaffing: 1

No

Yes Front OfficeLog out &

RDA ADMIN.SYSCOM

DASN (ACQ) Transmits J&A

and Action Memo

Lead timeMin: 15 min.Max: 1 hr.Mode: 30 min.Staffing: 1


Lead timeMin: 10 min.Max: Mode: 1 hr.Staffing:


Yes

98%

Contact SYSCOM for

(substantive revisions)

Wait for revisions from SYSCOM

Analyst reviews and enters changes

Lead timeMin: 5 min.Max: 8 hrs.Mode: 8 hrs.Staffing:

Lead timeMin: 30 min.Max: 3 daysMode: 2 daysStaffing: 1

Lead timeMin: 1 dayMax: 3 daysMode: 2 daysStaffing: 1

Informal re-review by DASN

or Legal

Lead timeMin: 5 min.Max: 4 daysMode: 30 min.Staffing:

80 %

Mr. Essig reviewselectronic J&A document and Action Memo

Mr. Thackrah reviews electronic

J&A document and Action Memo



SYSCOMBRIEF

Yes

DASN (ACQ)Coordinates

SYSCOM BRIEF

No

YesLead time

Min: Max: Mode: 5 daysStaffing: 1

95%

Send toRDA Admin/Front office

Lead timeMin: 15 min.Max: 60 min.Mode: 30 min.Staffing: 1

Mr. Essig & Mr. Thackrah

Re-Review

Lead timeMin: 1 hr.Max: 2 daysMode: 2 daysStaffing:

No

Analyst

Justification and Approval (J&A) ProcessRapid Improvement Event/Value Stream Mapping

BFMC Lean Pilot Solution OutcomeReimbursable Funding Documents to NAVAIR Field Activities

Pre-VSA State • 30 plus steps (all serial)• 16 queues• 8 work-arounds • Multiple hard copies• 12 review and approval steps• 28 day average processing time

Current State Solution• 15 steps (4 performed concurrently)• 4 queues• No work-arounds• Fewer hard copies• 5 review and approval steps• 4 day average processing time

• Moved downstream activities up frontMoved downstream activities up front• Brought all parties to table – expanded IPT Brought all parties to table – expanded IPT • Removed WAIT time (queues)Removed WAIT time (queues)• Ensured complete and accurate product earlyEnsured complete and accurate product early• Reduced rework/rejectsReduced rework/rejects• Leveraged ERP ensuring all financial links match project plan to performing activityLeveraged ERP ensuring all financial links match project plan to performing activity

Pre-VSA State • 4,000 man hours expended

to execute process• 24 Process Steps• 70 day Process Cycle Time• $12.8K per recruit• Voice of Customer not

identified

Current State • 1,000 man hours expended

to execute process• 4 process Steps• 45 day Process Cycle Time• $2.4K per recruit• Voice of Customer

integrated

Summer Hire ProcessNAVAIR AIRSpeed Type Study: KAIZEN

Savings: One man-year in labor, faster, simpler, customer friendlySavings: One man-year in labor, faster, simpler, customer friendly

Goal: Streamline and reduce costs of summer hire program

SECNAV Congressional Response Process

Kaizen Project

Problem: Currently Department of Navy Congressional Responses are not meeting internal Navy cycle time requirements of 7 work days and the quality of the responses is not consistent. SECNAV has established the ASN (I&E) project as a prototype for replication purposes. Since the beginning of 2006, the mean ASN (I&E) Process Cycle Time has been 17.8 work days.

Scope: The scope of this project will include the response categories of: Congressional Constituent, Congressional Member of Congress.

Goal: Decrease the mean Process Cycle Time from 17.8 to 7 work days.

• Financial Impact

– Type I Savings – none anticipated at this time

– Type II Savings – TBD• Non-Quantifiable Benefits

– Better customer relations with Congress

• Dr. Donald Winter Project Sponsor/Process Owner/Green Belt• CDR Jim Aiken Deployment Champion• Phil Zalesak Black Belt• Steve Bonacorsci Master Black BeltCore Team Role LSS Training• LT Ball SME Yellow Belt• Catherine Timco SME Yellow Belt• YN1 Suggs SME Yellow Belt• Alan Anglin SME Yellow Belt• Jim Ives SME Yellow Belt• Denise Brown SME Green Belt• Oral John SME Green BeltExtended Team• TBD (ASN I&E)

Event Date

• Initial tasking 7/6

• Scoping 7/17 – 8/23

• Kaizen preparation 8/24 – 9/9

• SECNAV Brief 9/12

• Kaizen 9/18 – 9/21

• Implementation 10/2

Timeline

Business Impact

Core Team

Problem/Goal Statement