Captain Joseph Campbell Commander, Norfolk Naval Shipyard Portsmouth, Virginia. Statement A: Approved for public release; distribution is unlimited
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1 2005 DOD Maintenance Symposium & Exhibition Tuesday (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 1
2 SEA POWER 21 Sea Shield Projecting Defense... Assured access, sea-based homeland defense Sea Trial Sea Warrior FORCEnet Sea Strike Projecting Offense... Agile, sustainable, precise, persistent Sea Enterprise Sea Basing Projecting Sovereignty... Worldwide access, secure, adaptable Transformation/Change is a continuous process! Approved for public release; distribution is unlimited. 2
3 CNO Priorities & NAVSEA Taskers: Fully Aligned Maintaining Current Readiness Building a 21 st 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 Plan Enhancing the PEO/NAVSEA Partnership Enhancing the NAVSEA/ONR Partnership and Technology Transition Alignment of NAVSEA Contracting to a Competency Construct 3
4 NAVSEA: A Provider Command SINGLE NAVY ENTERPRISE CFFC Both at the Enterprise and individual Warfighter Domain Level AIR SUB NETWAR SURF PROVIDERS EXW RESOURCE SPONSORS This is where we are headed 4
5 NAVSEA s Lines of Business NAVSEA Business Model: Seamless Support Across the Enterprise L e a n PEO SHIPS PEO IWS PEO LMW PEO CV PEO SUB NAV SEA LINES OF BUSINESS Subs Carriers Surf Ships Systems Missiles/ Torp. Guns Build & Buy ENGINEERING In-Service/Legacy Support Undersea Warfare Engineering Nuclear Propulsion Ship Design, Integration & Engineering Warfare Systems Engineering Human Systems Integration INDUSTRIAL OPERATIONS Maintenance/Logistics Shipyards SUPSHIP New Construction SUPSHIP Repair - Transfer to RMC TECHNICAL SERVICES 12 Aligned Product Areas across the NAVSEA Warfare Canters BUSINESS OPERATIONS FM/Comptroller Cost Engineering Contracting Command Ops/IT
6 NAVSEA Industrial Operations Line of Business SEA POWER 21 Sea Trial Sea Warrior Sea Shield Projecting Defense... Assured access, sea-based homeland defense Sea Strike FORCEnet Projecting Offense... Agile, sustainable, precise, persistent - One Shipyard - Sea Enterprise Sea Basing Projecting Sovereignty... Worldwide access, secure, adaptable Transformation/Change is a continuous process! PUGET SOUND NSY & IMF Pacific Northwest RMC Navy Foundry and Propeller Center (NFPC) Naval Sea Logistics Center GD Electric Boat SUPSHIP GROTON SUPSHIP BATH PORTSMOUTH NSY SUBMEPP / SHAPEC CVN Depot Maintenance Facility Southwest RMC NAVSEA HQ & PEOs NORFOLK NSY NG Newport News SUPSHIP NEWPORT NEWS Mid-Atlantic RMC Japan RMC SUPSHIP GULF COAST Southeast RMC PEARL HARBOR NSY & IMF Hawaii RMC South Central RMC Reducing the Cost of Maintenance & Increasing Operational Availability of Ships Naval Shipyard FY05 Workforce Budget (M) PNSY 3,909 $572 NNSY 7,778 $967 PSNSY&IMF 9,879 $1,063 PHNSY&IMF 4,266 $491 Total 25,832 $3,093 6
7 Partnering With the Shipyard Industry National Shipbuilding Research Program (NSRP) Advanced Shipbuilding Enterprise (ASE) Government collaboration with industry to reduce cost and eliminate waste NSRP Lean Shipbuilding Initiative Northrop Grumman Newport News 7
8 Smart Shift of Capital Investment Optimum Number of Ships Fleet Response Plan SEA Enterprise Optimum Number of Ships $ to Sustain $ to Recapitalize Current Fleet Readiness Right Readiness Right Force More Operational Time Right Cost Capability & Capacity Facilities Workforce Maintenance & Logistics Policies THE INDUSTRIAL BASE Future Fleet Readiness More Force Structure Right Readiness Right Force Right Cost Lean Transformation of of Industrial Base 8
9 NSY Lean Transformation Plan L e a n Shipyard Deployment Plans Executive Planning Sessions Values Stream Analysis Rapid Improvement Events Training Metrics National Value Streams Platform NVSs (Tier-One) Carrier SSN688 SSBN/SSGN Process/ Functional NVSs (Tier-Two) Industrial Process Project Management Lifting & Handling Material Training Resource Management Human Capital Strategy Hiring Strategy Attrition SurgeMain NSPS Voluntary Protection Program/Safety $$$ Cost-Wise Readiness $$$ Lean in the Shop, Lean on the Ship, and Lean everywhere in between 9
10 NAVSEA Lean Six Sigma College (L6SC) L e a n Enterprise Training: NAVSEA/ PEOs Naval Warfare Centers Naval Shipyards Fleet Joint Force Involvement Courses Washington California L e a n PUGET SOUND NSY & IMF NUWC KEYPORT SUPSHIP Bath (detachment) NSWC CORONA NSWC PORT HUENEME South West Regional Repair West Coast L6SC Site NSWC Port Hueneme (start FY 06) 3 3 Indiana NSWC CRANE Regional Regional Training Training for for Green Green Belts Belts & Champions Champions Pennsylvania NSWC Ship Systems Engineering Station NAVAL Foundry & Propeller Center Hawaii PEARL HARBOR NSY & IMF Mississippi Maine SUPSHIP GULF COAST NAVSHIPYD PORTSMOUTH SUPSHIP BATH SUBMEPP Florida NSWC Coastal Systems Station (Panama City) Rhode Island NUWC HQ NUWC NEWPORT Connecticut SUPSHIP GROTON Maryland NSWC CARDEROCK NSWC INDIAN HEAD Washington DC NAVSEA HQ PEOs NSWC HQ Virginia NAVSHIPYD NORFOLK NSWC DAHLGREN Surface Combat Systems Center (Dam Neck) Mid Atlantic Regional Repair Roles and Responsibilities East Coast L6SC Site Norfolk Naval Shipyard Black Belt - Six weeks of instruction over six months Green Belt - Five days of instruction over 1 week Champion - Three days of instruction Course # of Classes Students per Class Total Trained Black Belt Green Belt VS Champion Lean Repair Exercise TOTAL Lean Office Internal Deployment Leader Captures Metrics Owns Communication Plan Owns Deployment Plan Master Black Belts Trains Black Belts Trains Green Belts Leads Complex Projects Full-time position Leads larger projects Coaches Green Belts Full-time position Owns vision, direction, business results Leads change Allocates Resources Executive Leadership COs/DHs Value Stream Lean Champion Champion Black Belts All Employees Provide data and voice of customer inputs to VSA, RIE, and Projects Apply concepts to their own jobs and work areas Green Belts Lead small-moderate projects Support Rapid Improvement Teams Full time role Line Departments Team Leaders Team Members Owns Rapid Improv. Plan Owns Redeployment Plan Owns financial results Removes Barriers RI Team or Project specific support Part-time RI Team or Project specific support Part time 10
11 Lean Transformation Plan: NNSY Metrics Dashboard Lean Implementation Example: Norfolk Naval Shipyard (NNSY) FY05 Lean Implementation Plan/Results L e a n Note: Metrics are measured against TFL Deployment Model based on N/20 Pace for FY05 per NAVSEA Memo 5200 Ser TFL/006 dated 14 Jan 06 Lean Lean Training (Roles) NNSY Lean Implementation Lean Lean Deployment (Participation) Lean Lean Execution (ROI) (ROI) Total RIEs/Projects Completed: 72 Total CRRs Submitted: 69 Champion Training Annual Target: TBD Act to Date: % 8.9% 12.3% 24.7% Black Belt Belt Training Annual Target: 22 Act to Date: 21 Annual Target: 1227 Act to Date: 1060 Cost Reductions FY07 Value (By Value Stream) 21.1% 16.4% 3.3% 9.6% Subs L & H C920 Backshop C930 Backshop C960 Backshop C970 Backshop CVN FA Focus 30.0% Green Belt Belt Training Annual Target: 45 Act to Date: 42 Lean Lean Basics (Workforce) Cost Cost Reductions Annual Target: $18.5M Act to Date: $12.7M Rapid Improvement Events & Projects Cost Reduction FY07 Value (By Affected Platforms) 28.7% 41.3% Annual Target: 77 Act to Date: 70 $M $M Redeployment Annual Target: None Act to Date: 75 TFL Model First Year Target Pace: N/20 (5%) Based on Actual CRRs Submitted; Avg: $200K/CRR Cost Reductions Accrual in FY05 for FY07 Based on Deployment Plan (RIE rate and $200K ROI) Deployment Model Based on $200K/RIE Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Aug Aug Sep Sep FY05 FY05 FY FY Model Model FY07 FY07 Projected Projected Reduction Actual Actual SUBS CARRIERS OVERHEAD 11
12 Request to Add HM to AUL [1.1] HAZMINCEN Verify & Accept Order [4.3] CRITICAL Request Paint Test [4.4] END: Close Out Project Accounts Payable [5.0] HM Review & AUL Approval [1.2] Transport to B/280 Warehouse [4.2] REJECT MATERIAL (MPR/SDR) LAB RESULTS (LIMS) Inspect Paint for QA [4.5] NON-CRITICAL Mechanic Use / Reuse Paint & Return [7.2] S/F & Contractor Paint Waste [7.3] WASTE START: Approved Work Package Receipt Material (MMD) [4.1] Resolve Defective Material [4.6] CHRIMP Decant & Issue Paint (Track Use) [7.1] Overpack at HAZMAT Accum. Area [7.3] FAIL (MPR/ PDQR) Manage Material [4.7] SHOP STORES RETURN CREDIT ID Mat'l & Generate JML [2.1] Shop Stores/ MRP Generate 1348 [2.2] After Receipt of Order (ARO) Ship New Supplier Fills Paint to B/ Order ($700) 276 [3.6] [3.7] Transport to HAZMIN Satellite [6.4] Submit "Outage Verification Log" [7.3] CURRENT STATE Verify AUL, PASS Create HSMS Record & Label [4.8] Process MMD "Issue" in HSMS [6.3] Transport & Receipt Waste B/506 [8.1] Procurement Action Lead Time (PALT) Automatic CC "0" SC "A" Source To Local Shop Stores Prep Waste for Shipment [8.2] Process MRQT / JML in MAT & Forward [3.1] CC "2" SC "P" (75%) NON-STANDARD NON-STANDARD (15%) Local >$2,500 Technical Credit Card Contract <$2,500 Review Purchase Award [3.2] & QA = "4" [3.4] [3.5] END: Paint RFI Material Kitting / Pick Up [6.2] UDM Call Out Paint (ARK) [6.1] EXCESS / EXPIRED S/L END: Waste Disposed (10%) (10%) Source to STANDARD Federal Supply Service [3.3] Review Inventory for Deposition [9.1] START: Job Execution EXPIRED SHELF LIFE END: Transport Off-Base (15%) [9.2] Rev. 10/20/2004 END: Close Out Project Accounts Payable [610] Internal Receipts Inspect Paint for QA [130] Mechanic Use / Reuse Paint & Return [971] START: Approved Work Package Receipt Material (MMD) [562] CHRIMP Decant & Issue Paint (Track Use) [971] Notification of Lot (Batch) Approval ID Mat'l & Generate JML Ship New Paint to EUSL FUTURE STATE Shop Stores/ MRP Generate 1348 [250] [562/224] Forecast Requisition After Receipt of Order (ARO) Delivery Order Vendor Fills Order [Virtual SS] ARK Call Out / Shop Stores Release Order Procurement Action Lead Time (PALT) Automatic CC "0" SC "A" Use "J" Source To Local Shop Stores Local Contract Award [530] Material Kitting / Pick Up [562] Process MRQT / JML [MAT01] Call Out Paint (ARK) [225] START: Job Execution. NNSY Process Improvement Program: Transforming to Better Support the Fleet FY06 Lean Execution Strategy: L e a n Example: Cost Performance Schedule Performance Quality Performance Safety Performance Example: Supply Chain Just in Time Delivery Before After LEAN PAINT VSM LEAN PAINT VSM SSN CVN SSBN/GN Submarine Structural Fab Before After C-610 C-134 Vendor C-200 Waterfront C-225 C-136 C-560 (Bldg 276) C-530 C C-560 (Kitting) C-560 (Bldg 280) C-610 C-134 Vendor C-200 Waterfront C-225 C-136 Cost Reduction FY05 $0K FY06 ~$575K FY07 ~$767K C-560 (Bldg 267) C-530 C-560 Bld 280 C C-560 (Kitting) FY06 Key/Support Processes Budget; Schedule; Paper; Material Driving Down Cost $$$ Core Mission Structural 920 Machine 930 Electrical 950 Piping 960 Service 970 FY07 Cost Reduction FY05 ~$444K FY06 ~$455K FY07 ~$468K USS HAMPTON (SSN-767) FY05 DMP USS CHARLOTTE (SSN-766) FY06 DMP USS GEORGIA (SSBN-729) FY05 ERO/CONV USS ALASKA (SSBN-732) FY07 ERO USS TRUMAN (CVN-75) FY06 DPIA 12
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