Working Smarter Putting Best Practices to Work: Transforming Logistics Capability into Readiness at the Marine Corps Maintenance Centers Maj Don Humpert, USMC humpertde@matcom.usmc.mil
The Problem Example: MK-48 Power Unit Fielded in 85 Planned SLEP never happened Wearing Out Of about 1700 fielded, only 330 have been rebuilt or through enhanced IROAN
The Depot Contribution Rebuilt/E-IROAN 100% 95% Average 12% Higher Readiness 90% Readiness (R-Rating) 85% 80% 75% 70% 65% No Depot/ Bare-Bones IROAN 60% 1/7/00 4/7/00 7/7/00 10/7/00 1/7/01 4/7/01 7/7/01 10/7/01 1/7/02 4/7/02 Report Date Enhanced LVS Power Unit Non-Enhanced Power Unit (Minus MPS/NALMEB Fleet)
And Average Annual OpFor Hours in Maintenance per Vehicle 25 20 15 10 5 0 10 23 "Enhanced" "Non-Enhanced"
But Rebuild too expensive E-IROAN not cheap either Production (ahem) sluggish
The Challenge Increase Throughput and make schedule without increasing Operating Expenses or sacrificing quality ISO Lean TOC MRPII
Theory of Constraints **Five Focusing Steps** 1. Identify the Constraint 2. Exploit the Constraint 3. Subordinate everything else to the Constraint 4. Elevate the Constraint 5. Go back to step one (Avoid Inertia)
Drum-Buffer-Rope ASSEMBLY BUFFER Process 1a Process 1b Process 1c Material Release ASSEMBLY Process 3 SHIP Process 2a Process 2b THE CONSTRAINT SHIPPING BUFFER CONSTRAINT BUFFER
Simplified DBR Process 1a Process 1b Process 1c Material Release ASSEMBLY Process 3 SHIP Process 2a Process 2b Process 2c SHIPPING BUFFER OK Act
Production vs. Project Production: Lots of queue time relative to touch time Usually waiting for something to start Usually decrease RCT by reducing time in queue Project: Little queue time relative to touch time Usually waiting for something to finish Decrease RCT by removing safety time built into individual tasks
Critical Chain Solution Use safety time for the whole project, not individual tasks Reduce WIP Don t batch inductions Stop multi-tasking Buffer Management
Tasks 10 10 16 20 16 16 Step 1: Tasks arranged in chronological order
Remove Safety Time 5 6 7 10 7 9 Step 2: Safety time removed from individual tasks.
Resource Assignments 5 6 7 10 7 9 Step 3: Resources are assigned to each task
Resource Sync 5 6 7 10 7 9 Step 4: Resource demands are de-conflicted
Critical Chain 5 6 7 10 7 9 Critical Chain Step 5: Critical Chain is identified
Project Buffer 5 6 7 10 17 7 9 Critical Chain Step 6: Project Buffer added 50% of critical chain touch time, rule of thumb
Feeding Buffers Feeding Buffer 5 6 6 7 10 17 7 9 Step 7: Feeding Buffers are placed between Critical Chain and non-critical Chain activities
Capacity Buffers 5 6 6 7 10 17 7 9 5 6 6 7 10 17 50% of Drum touch time (8 days) used as Capacity Buffer 7 9 5 6 6 7 10 17 7 9 Drum resource used to determine Capacity Buffer between projects
Critical Chain + SDBR Feeding Buffer 5 6 6 7 Project Buffer 10 17 7 9 Shipping Buffer Process 1a Process 1b Process 1c ASSEMBLY Process 3 SHIP New Materials Process 2a Process 2b Process 2c Capacity Buffer 5 6 6 7 10 17 7 9
Production Management = (A)(Schedule) + (pull system) Critical Chain project management Simplified Drum-Buffer-Rope production Theory of Constraints thinking MRPII engine
Implications for MRP Create Critical Chain in usual way Modify item masters, routers and BOMs to reflect the new lead times, routes and BOM indentures Create Project Level Work Order and route using the CC schedule Run MRP to time phase materials and create a dispatch list and shop orders with CC priorities Create Immediate Action report for SDBR and Project Buffer Status report for CC to manage by buffers
Result Push (MRP) Pull (MRPII+TOC) RCT WIP Throughput
Maintenance Center Albany
Repair Cycle Time Days 240 220 200 180 160 140 120 100 80 60 40 20 0 Articulation Hitch Problems FY-00 FY-01 FY-02 0 20 40 15 35 55 75 0 20 40 60 80 Vehicle Number
Labor Hours Hours 1750 1625 1500 1375 1250 1125 1000 875 750 625 500 375 250 125 0 0 20 0 20 40 60 80 5 25 45 65 85 FY-00 FY-01 FY-02 Vehicle Number
Engine RCT Days 100 90 80 70 60 50 40 30 20 10 0 0 20 0 20 40 60 80 5 25 45 65 85 Vehicle Number FY-00 FY-01 FY-02
Engine Labor Hours Hours 325 300 275 250 225 200 175 150 125 100 75 50 25 0 0 20 0 20 40 60 80 1 21 41 61 81 101 FY-00 FY-01 FY-02 Vehicle Number
Lean Thinking 6S Concept Sort: Get rid of what s not needed. Be ruthless. Straighten: Organize what belongs (Parts and Materials). Scrub: Clean everything (Equipment, Floors, and Walls). Standardize: Assign tasks. How will you keep your shop clean and organized and who will do it? Safety: + ALWAYS put safety first! + Sustain: Audit shops. Create checklist.
Cable Shop Before
Cable Shop After
Body Shop Before
Body Shop After
MK-48 Readiness Contribution What-If 2000 6 per month per depot 167 days/vehicle $152K /vehicle What-If 2003 19 per month per depot 51 days/vehicle $120K /vehicle General, for $137M we could raise readiness 12%, but it will take 19 years General, for $108M we could raise readiness 12%, in 2 years
And Not Just MK-48s Production Line Before Critical Chain Actual MK48 167 53 48 LAV 180-240 92-102 111-167 MK14 Trailer 56 23 34 MK15 Trailer 229 69 95 MK16 Trailer 126 22 38 MK17 Trailer 269 49 M931 5-ton 113 48 70 M936 Wrecker 278 63 * M970 Refueler 282 82 M149A2 Water Trailer M88 Tank Retriever AAV P & C Variants No data 213 66** 18 159 66*** *No current production line. **AAV hull repair and assembly after receipt of hull from UDLP. ***The AAV critical chain has been established to cover the work performed after the hull has been modified by UDLP. 39 146
WIP Reduction Production Line Before TOC Target Actual MK48 55 35 39 LAV 13 7 7 MK14 Trailer 8 3 3 MK15 Trailer 2 2 1 MK16 Trailer 2 2 1 MK17 Trailer 3 2 1 M931 5-ton 5 4 4 M936 Wrecker 6 0 0* M970 Refueler 8 6 13** M149A2 Water Trailer 17 7 7 M88 Tank Retriever 5 3 3 AAV P Variant 5 4 4 AAV C Variant 22 9 9 *Production line completed. **Awaiting one part to complete; received 23 Aug 02.
to be continued Questions? Maj Don Humpert, USMC humpertde@matcom.usmc.mil DSN 567-7417, Comm (229) 639-7417