northrop grumman shipbuilding - apqc
TRANSCRIPT
Glenn MarshallBenchmarking & Sustainability ChampionQuality and Process Excellence Division
Northrop Grumman Shipbuilding
Effective Benchmarking Versus
“Industrial Tourist”
Northrop Grumman Shipbuilding
Northrop Grumman Corporation Copyright 2010
• Over a century designing, building, overhauling and repairing ships for the U.S. Navy, the U.S. Coast Guard and world navies
• The nation's sole industrial designer, builder and refueler of nuclear-powered aircraft carriers
• One of only two companies capable of designing and building nuclear-powered submarines
• One of the nation’s leading providers of major surface combatants (destroyers, cruisers, high endurance cutters, and amphibious assault ships) for the U.S. and international navies
• Have built over 70 percent of the U.S. Navy’s current surface combatant fleet
• After-market services –maintenance, repair, and overhaul – support a wide array of naval and commercial vessels
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The Nation’s Military Shipbuilder
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People
• Nearly 40,000 employees
• Third, fourth and fifth generation shipbuilding employees
– More than 2,500 Engineers– More than 1,050 employees with
advanced degrees– More than 17 different crafts &
trades employed– Nearly 5,000 veterans
• Over 900 Master Shipbuilders (40 years or more)
The True Key to our Success
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A Historical Perspective
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Process Improvement – Our History
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Priorities for Shipbuilding Integration
Value Stream Thinking
Value Stream Management
Navy Contracts& Pricing
Design/Eng. Planning Supply
Chain Mgt.Detail
PlanningMfg.Ops.
AssemblyOps. Navy
Value Stream Thinking: Everyone at all levels of the organization and across programs understanding what their products are, knowing who their customers are and what their customers value. It is everyone working together to remove waste from our processes!
External Suppliers Internal Suppliers Internal Customers External Customers
Value Stream: Refers to all the activities the company does to design, order, produce, and deliver its products to the customer. (Activities can be value adding or non-value adding.)
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Copyright 2007 Northrop Grumman Corporation
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Our Continuous Improvement System (CIS) provides the common framework to better align our value streams - enabling deck plate success.
Engaging People using the Continuous Improvement System
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Continuous Improvement Process
“Measuring What Matters”
Benchmarking Definitions
• Benchmarking – The systematic process of seeking out and adapting best practices and using benchmarks
• Best Practice - a practice that fully satisfies customers, produces superior results in one operation, performs as reliably as any alternative and can be adapted elsewhere
• Lessons Learned – a practice that once performed, leads to an unintended and often undesirable result
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Companies who used benchmarking to measure business performance against their peers achieved 69% faster growth and 45% greater productivity over those who did not.
Source: Price WaterhouseCoopers
Many fortune 500 companies and other large organizations have embraced benchmarking as an important systematic methodology for achieving the organizations strategic objectives.
Benchmarking is reflected in the Malcolm Baldrige National Quality Award criteria more extensively than any other management concept.
Source: APQC
Why Do Benchmarking?
Casual VS Effective Benchmarking
There is nothing wrong with doing benchmarking to set standards, close gaps, or prevent reinventing the wheel.
The logic behind what works at top performers, why it works, and what works elsewhere is barely understood, resulting in mindless initiations.
The first thing people copy is the most visible, obvious, and frequently least important practices.
Toyota’s success is not a set of techniques or tools --- its their philosophy. Instead of copying what others do we need to understand how they ”think”.
HARD FACTS Dangerous Half Truths & Total Nonsense by Jeffrey Pfeffer / Robert I. Sutton
You need to ask the question about your new knowledge….. will this really work in my company ?
How to Become Effective at Benchmarking?
Find “Trusted” Benchmarking Partners
APQC, Boeing, Raytheon, Northrop Grumman, others
What We Have Learned
Use the APQC Code of Conduct and infrastructureUnderstand your process “first”What gaps do you want to closeDevelop questions to find the right partnersBenchmarking partners are looking to get value in returnBe prepared to offer a reciprocal visitRecord findings and share the learningDefine an action plan to deploy new knowledge
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Benchmarking Process Enables Continuous Improvement
Benchmarking Guide
Defining the responsibilities and steps for identifying benchmarking opportunities
Outlining how to initiate benchmarking projects with internal and external sources
Describing how to share and deploy best practices across the sector, enterprise, and with our customers and suppliers
NORTHROP GRUMMAN NEW PORT NEWSProcess Excellence Division, Department O09 –Strategy
Benchmarking Guide
BenchmarkingDM(B)AIC Process
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Benchmarking Opportunities
Benchmarking Matrix
NGSB Process Excellence Benchmarking Matrix
Industry Best Practices Industry “Best In Class”Strategic Planning / Deployment
Hoshin Kanri Toyota Danaher
Business / Quality System Toyota Danaher Alcoa
Lean Accounting / Balanced Scorecard Toyota Danaher
Training Within Industry Toyota ESCO
Enterprise Value Stream Northrop Grumman Newport News (NGNN)
Idea Creation / Suggestion System Toyota HON ESCO
Maturity Assessment Malcolm Baldrige Shingo LESAT
Employee Engagement Toyota ESCO HON
Customer Engagement Toyota Dell Disney Ritz Carlton
Supplier Engagement –Best Value Supplier Strategy
AME Best Practice Workshop NGNN Supply Chain
Benchmarking APQC Raytheon Boeing
Knowledge Management - COP APQC Raytheon Boeing
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Benchmarking Maturity Matrix
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Leveraging Internal and External Learning Networks
Virginia Business Excellence ConsortiumHampton Roads Quality Management Community
AME / APQC Webinar – (Your Desk)
Training WithinIndustry
Lean Accounting Summit
Lean and GreenSummit
APQCConference
Training Lean Accounting Sustainability Knowledge
Management
AME / APQC National Benchmarking COP –APQC, Boeing, Northrop Grumman, Raytheon,
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Southeast Region of Association for Manufacturing Excellence 12 States
AME International Conference & Learning Summit
Benchmarking Summit
Benchmarking Enablers
Opening Doors for Benchmarking, Networking, and Shared Learningfrom Conferences, Publications, and Professional Organizations.
National Conferences
Societies &Associations
IndustryPublications
Benchmarking Report
Benchmarking is only effective when a new“BEST Practice” is shared and deployed.
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Benchmarking Initiatives / Summary
“Always Good Ships”
• Increasing Deployment of New Knowledge• Developing a Continuous Improvement Maturity Model for Shipbuilding• Extending our Value Stream Improvement efforts to our Suppliers and Navy Customers• Launching Industry Transformational Initiatives:
Virginia Business Excellence Consortium (VBEC)National Benchmarking CoP through AME /APQCNational Lean Accounting Community of PracticeRegional Communities of Practice
“Enterprise Excellence through Shared Learning”
Association for Manufacturing Excellence (AME)www.ame.org
American Productivity & Quality Center (APQC)www.apqc.org
AME / APQC Benchmarking CoP – Open Forumame.org/index.aspx?page=COP
Society of Manufacturing Engineers (SME)http://www.sme.org
American Society for Quality (ASQ)www.asq.org
Society of Women Engineerssocietyofwomenengineers.swe.org
Shingo Prize for Operational Excellencewww.shingoprize.org
U.S. Senate Productivity and Quality Award for Virginia (SPQA)www.spqa-va.org
Virginia Business Excellence consortiumwww.vbec.org
Hampton Roads Quality Management Communitywww.hrqmc.com
Benchmarking Resources
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Questions ?
