What is AFSO21?

Overview

• What is AFSO21?• Lean Defined• 6S and Standard Work• Problems Solving, Process identification and

mapping• What Does an Event Look Like?• AF and ANG Successes

History of CPI

1900 1915 1935 1945 1973 1983 1991

Toyoda Automatic Loom WorksSakichi Toyoda“Error Proofing”

Time and MotionF. Taylor

Interchangeable Parts

E. Whitney

Mass ProductionHenry Ford

“Flow, StandardizedWork, Eliminate

Waste”

1970’s – Oil Crisis forces other Japanese

Companies to adopt TPS/Lean

1980’s – Japan Begins Domination

of Auto Industry

Toyoda Motor CompanyKiichiro Toyoda“Just-In-Time”

American Supermarkets“Pull Systems”

1990’s - U.S Industry Begins TPS/Lean Transformation

Machine That Changed the World

“Lean Term Coined”

Toyota Production SystemTaiichi Ohno

“Lean Principles”

Deming’s Quality Seminars“Customer Focus”

AF Strategic Imperative for Operations Improvements

Real Need for Organic Improvement in

Operations

PersonnelHealthcare& Support

Costs Rising

31% Rise inJP8 Fuel Costfor Air Forcein Past Year

IncreasingFleet Age

(Avg > 23 yrs)

CongressionalBudget Pressure Highly Dynamic

GWOT Demand

AFSO21 Methodology

• Primary AFSO21 methodology (80%) is Lean Principles.

• Remaining 20%:o 6 Sigma:

Improvement and measurements of specific processes. Statistical validation.

o Theory of constraints: Elimination of the most significant constraint in sequence. Big picture focus.

o Business Process Reengineering: Longer term process redesign.

A combination of process improvement methodology & tools

AFSO21 Objectives

• Provide a standard AF approach to continuously improve all processes that employ our AF capabilities to deliver required effects.

• Develop a culture which promotes elimination of waste, sharing of best practices, and reduction of cycle times across all products and services, and involvement of all Airmen in the relentless pursuit of excellence.

• Ensure that all Airmen understand their role, develop the ability to effect change and continuously learn new ways to improve processes in their daily activities in order to save resources and eliminate waste.

AFSO21 Five Desired Effects

• Increase Productivity of our most valued asset – People

• Significant increase in critical equipment availability rates

• Improve response time and agility• Sustain safe and reliable operations• Improve energy efficiency

AFSO21 is about combat capability – Relentlessly Strengthening the Total Force

Establish a Resilient Continuous Process Improvement (CPI) Foundation

Benefits of Continuous Process Improvement (CPI)

• Reduce lead time • Improve speed of throughput• Lower costs• Improve quality• Improve safety• Respond to change in customer demand• Better use of capital • Engage your people

Definition of Lean

What is Lean?

• Lean is a standardized method and mindset for in all of the processes we use reducing waste to execute our mission.

• The goal of lean is the endless pursuit of the identification and elimination of waste, adapting to change, and continuous process improvement.

• Non-value added activity = Waste.

The Five Principles of Lean

Specify

Value

Value Strea

m

FlowPull

Perfection

Specify Value

The value definition is the baseline for determining what activity is “non-value added”.

• What is the value to customer/end-user?

• Make sure that what we do provides value from the perspective of the customer.

Identify the Value Stream

• Everything that goes into creating and delivering value to the end customer… including waste!

• We generally own steps in the process; typically nobody is responsible for the entire value stream.

Flow, Push, Pull

• Flow: The alignment of the operations in a process

• Push: Moving product into a process without a customer request

• Pull: Movement of product based on customer request

Flow

• Flow is the smooth movement of products and services along the value stream.

• What do you think is a “Batch and Queue” system?

What are some examples of batch vs. flow?

Perfection

• The complete elimination of waste so that all activities along the value stream creates value.

• Exactly what you need, exactly when you need it, with a minimum of spare time and resources.

All steps are value-added….not realistically attainable, but serves as a “true north.“

A Process

TimeRaw

MaterialFinished

Parts

Waiting

StagingTransportation Inspection Set-up

Machining AssemblyDip Tank

Value Added/Non-Value Added

• Value Added Activity- o An activity that changes the form, fit or

function of the product. Something the customer is willing to pay for….

• Non-Value Added (Waste)-o Those activities that take time, resources, or

space, but do not add value.

What Do We Mean By Lean?

LEAN is the endless pursuit of identification and elimination of waste, adapting to change, and

continuous process improvement.

TimeRaw

MaterialFinished

Parts

Waiting

StagingTransportation Inspection Set-up

Machining AssemblyDip Tank

= ValueAdded Time

= Non-ValueAdded Time(WASTE)

Traditional Results

Savings or Improvement

Often Focus Here

Savings or Improvement

Lean Approach

Remove WasteNon-Value Added Work

22

Instinct to Focus on Improving Value-Added Work

Airplane Exercise Round OneBatch of Six

Flow, Push and Pull

Airplane ExerciseBatch Size # People Output WIP Cycle Time Quality

What Are The Problems With Round One Of The Airplane

Exercise?

Problems – Round One

• Flowo Caused transportationo Possible misdeliverieso Bottlenecks

• Six piece batcho WIPo Qualityo Constraints

1

3

7

25

4 6

Creating Flow

• Analyze the flow of work• Redesign the process and/or workplace• Produce and move one piece at a time• Develop multi-skilled employees• Balance work (people / process)• Pace to customer demand

Process A Process B Process C End User

Flow: Batch and Queue

Elapsed time:33 seconds

Airplane Exercise Round TwoBatch of Three

Flow, Push and Pull

Airplane ExerciseBatch Size # People Output WIP Cycle Time Quality

What Differences Are Noted With Round Two From Round One Of

The Airplane Exercise?

Round Two Results

• Flowo Transportation (gone)o Misdeliveries (gone)o Bottlenecks (reduced)

• Three piece batcho WIP (reduced)o Quality (improved)o Constraints (Balanced)

1

7

4

6

32

5

1

7

2 4

6

3

5

Single Piece Flow

• Provides product to customer faster

• Greatly reduces wait time between operations

• Greatly reduces quality issues

• Reduces WIP

Process A Process B Process C End User

Single-Piece Flow

Elapsed time:15 seconds!

Airplane Exercise Round ThreeSingle Piece Flow

Flow, Push and Pull

Airplane ExerciseBatch Size # People Output WIP Cycle Time Quality

What Differences Are Noted With Round Three From Round One

And Two Of The Airplane Exercise?

Round Three Results

• Flowo Transportation (gone)o Misdeliveries (gone)o Bottlenecks (gone)

• One Piece Flowo WIP (gone)o Quality (great)o Constraints (gone)o Production Up

1

7

2 4

6

3

5

Push systems attempt to predict demand and cover that demand with inventory.

Pull allows us to synchronize our production to our customer demand

Push vs. Pull

Push System Examples

• What are some examples of a Push system?

o Junk mailo Requirement for electronic deposito Inspectionso New missionso Resource cutso Pop up adds on a web pageo E-mail

Pull System Examples

• What are some examples of a Pull system?

o Supermarket shelveso Amazon.como Internet researcho Community of Practice on Portalo Buying a houseo Any type of reservation

Pull vs. Push

PUSH• Schedules order releases

based on lead times and master schedule.

• Lot sizes are based on rules from master schedule.

• Priorities based on rules (ex: earliest due date, FIFO) but are often changed on the floor according to the work schedule.

PULL• Order release occur when

the downstream buffer reaches a given level.

• Lot sizes determined at shop-floor level and based on downstream requirements.

• Priorities are determined by operators using a sequence board.

Demonstrate Pull System

6S and Standard Work

The 6S System

Sort

Safety

Straighten

ShineStandardize

Sustain

The 6S System (Explained)

• Sort: Eliminate all excess materials in the work area.

• Straighten: Everything is positioned in a specific, consistent, and organized manner.

• Shine: Everything is clean, allowing undesirable changes to be immediately visible.

• Standardize: Keeping the area organized, orderly, and clean, making standards visual and obvious.

• Sustain: Education and communication to ensure that everyone continues to follow the 6S standards.

• Safety: Reduced safety hazards due to first 5 S’s.

“A place for everything – everything in its place.”

Visual Management in Action

AGE Shop Before 6S

Visual Management in Action

AGE Shop After 6S

What It Looks Like On The Shop Floor

LOW

DIRTYGLOVES

HARDHAT

AREA

FIREEXSTINGUISHER

SLEDGEHAMMER

PRODUCTION RESULTS

QUALITY RESULTS

SCHEDULE SOPs

CLEANGLOVES

1 3 7

TODAY’SRUN

WARNINGHOT STEEL

6 0 0

TODAY’SGOAL

STATION 3OPERATOR

Standard Work

• Definition:o The agreed-upon set of work procedures that

establish the best and most reliable methods and sequences for each process and each worker.

o Flexible enough to meet customer demand.

• Includes:o A prescribed sequence of steps.o Assigned to a single person.o Represents the current best practice.

• Not your traditional SOP!!!

If you think of “standardization” as the best that you know today, but which isto be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops – Henry Ford, Today and Tomorrow

Pig Exercise

Pig Steps

1. Handout a blank piece of paper. Tell everyone to draw a pig. Share results and thoughts.

– Handout a piece of grid paper and SOP. Tell everyone to draw a pig according to the SOP on the grid. Share results and thoughts.

– Hand out the SOP with the example and grid paper. Tell everyone to draw a pig according to the SOP on the grid. Share results and thoughts.

Task Description Sub-Task Instructions

1 Draw a letter M at the top left intersection. 1.1 Bottom center of M touches intersection

2 Draw letter W at bottom left intersection 2.1 Top center of W touches intersection

3 Draw letter W at bottom right intersection 3.1 Top center of W touches intersection

4 Draw arc from letter M to top right intersection

5 Draw another arc from top right intersection to bottom right W

6 Draw an arc between the two bottom Ws

7 Draw the letter O in center left box

8 Draw arc from letter M to tangent of the circle

9 Draw arc from left W to tangent of the circle

10 Draw an arc for the mouth 10.1 Half way between the W and circle

10.2 Must be a happy pig

11 Draw an arc for the eyes 11.1 Half way between the M and circle

12 Draw cursive letter e near top of arc on right

13 Draw two dots in middle of circle for pigs’ nose.

Task Description Sub-Task Instructions

1 Draw a letter M at the top left intersection. 1.1 Bottom center of M touches intersection

2 Draw letter W at bottom left intersection 2.1 Top center of W touches intersection

3 Draw letter W at bottom right intersection 3.1 Top center of W touches intersection

4 Draw arc from letter M to top right intersection

5 Draw another arc from top right intersection to bottom right W

6 Draw an arc between the two bottom Ws

7 Draw the letter O in center left box

8 Draw arc from letter M to tangent of the circle

9 Draw arc from left W to tangent of the circle

10 Draw an arc for the mouth 10.1 Half way between the W and circle

10.2 Must be a happy pig

11 Draw an arc for the eyes. 11.1 Half way between the M and circle

12 Draw cursive letter e near top of arc on right

13 Draw two dots in middle of circle for pigs’ nose.

Waste

• Waste may not be as easy to recognize as you think!

• In most traditional processes, the vast number of steps in the process accomplished by people and machines are waste.

• To understand what is considered waste, ask “if this step went away, would the customer know or care?”

IF it does not add value…IT IS WASTE!

8 Wastes

D

O

M

N

T

W

I

Defects—not meeting specified requirements

Over Production—ties up more resources than necessary

Motion (Excess)—poor labor efficiency because of work layout or material not in easy reach

Non-Standard Work—creates delays without adding any benefit and invites more defects in the process

Transportation—the unnecessary movement of material or a product adding time and consuming space

Waiting—increases wait time, work in process, and delays response time to the customer

Injuries—increased absenteeism, reduced mission effectiveness, and reduced morale

E Excess Inventory—ties up capital and invites risk of obsolescence and damage

Lean Thinking Recap

5 Principles of Lean• Value• Value Stream• Flow• Pull• Perfection

2 Major Lean Tools• 6S• Standard Work

Waste• D-Defects• O-Overproduction• W-Waiting• N-Non-Standard Work• T-Transportation• I-Injuries• M-Motion• E-Excess Inventory

“We get brilliant results from average people managing a brilliant process. Others get average results from brilliant people managing broken processes.”

Taiichi Ohno, Toyota

Problem Solving, Process Identification And Mapping

8 Step Problem Solving Process

1. Clarify The Problem

2. Break Down The Problem/Identify Performance Gaps

3. Set Improvement Target

4. Determine Root Causes

5. Develop Countermeasures

6. See Countermeasures Through

7. Confirm Results & Process

8.Standardize Successful Processes

What is A Process?

• Process: An organized group of related activities that together create a result of value to the customer.

Processes

• Everything has processes• Flow of a process impacts the efficiency

of the process• Creating flow and standard work creates

efficiency reduces waste• Processes have boundaries

o A start and a done (beginning an end)

Filling Your Car’s Gas Tank

RemoveGas Cap

SelectPaymentOption

Scan CardWaitFor

Approval

SelectGrade

RemoveGas nozzle

PlaceNozzle in

Tank

SqueezeHandle

Fill TankRemoveNozzle

ReplaceNozzle in

Pump

CloseGas Cap

GetReceipt

Drive Away

ParkAt

Pump

Current State

ALL Tasks are clearly identified• Each task is in the simplest form• Linking tasks together will map a

process

Trigger

Done

The Current State

RemoveGas Cap

SelectPaymentOption

Scan CardWaitFor

Approval

SelectGrade

RemoveGas nozzle

PlaceNozzle in

Tank

SqueezeHandle

Fill TankRemoveNozzle

ReplaceNozzle in

Pump

CloseGas Cap

GetReceipt

Drive Away

ParkAt

Pump

Tasks identified as Value Added or Non Value Added- Value Added in Green

- Non-Value Added in Red

Current State – VA / NVA Identified

Problem Identification

• Problems impact processeso Impacts flowo Impacts efficiencies

• Typical response:o Increase manpowero Contract out

• How do you identify the real problem?o Root Cause Analysiso Five Whys

Problem Identification (Fuel)

• Problems impact processeso Taking gas cap offo Long line at gas stationo Removing credit card from walleto Waiting for receipts – malfunctioning pump

• Typical response:o Plan more time to accomplish tasko Get gas on way homeo Purchase vehicle that get better mileageo Purchase a hybrido Purchase motorcycleo Carpoolo Ride a bicycleo Move closer to work

Ideal State Map

AutoTankFill

Drive Away

ParkAt

Pump

Ideal State

NO CONSTRAINTS!!!!• In a perfect world...• Think outside the

box

The Future State

EasyPassScan

RemoveGas nozzle

PlaceNozzle in

Tank

SqueezeHandle

Fill TankRemoveNozzle

ReplaceNozzle in

PumpDrive Away

ParkAt

Pump

Future State The Process of the future• Remove as much waste as possible• Remove NVA activities

Assumptions• Gas cap has nozzle access port• Easy pass account knows typical grade you

chose

Caution – Number of steps reduced is not a good measurement

Example of an Action PlanDescription Type OPR ECD Comments

Acquire gas cap with pass thru Do It Fred Flintstone 10 Mar Must fit Fred’s car

Establish Easy Pass Account Do it Wilma Flintstone 10 Mar Ensure you include the typical grade of gas used by Fred

* Process Owner/Team Lead Responsibility to implement

* Leadership MUST support this process

What Does an Event Look Like?

EC-130J Isochronal Inspection

What is an event

• 3-5 days with a team of Subject Matter Experts (SME) and at least one customer

• Follow the 8 step problem solving model• Look at the process from end to end• Identify waste in the process• Develop countermeasures to remove waste• Identify action plan for implementation

o Attainable within 6 months• Provide out-brief to process owner • Implement new process

Steps to Get There

• Conduct Strategic Alignment & Deployment with senior leadershipo Senior leaders identify process’ for improvemento Identify Process owners and team leaderso Process owners and team leads develop charter with

facilitator• Process owners and team leads develop team• Complete charter• Begin Rapid Improvement Event• Implement new efficient processes rapidly

Charter

AF and ANG Successes

AF Energy Use Case for Action

Source: DESC FY06 Cost Data, AFTOC,Fuels Enterprise System & Defense Utility Reporting System, and VEMSO fuel reporting system

Aviation Mobility

Into-Plane

Trainer

Bomber

FacilityFighter

Gnd Trans

“Other”

16%

6%

3%

2%

42%

22%

3%

6%

Aviation Fuel Use is 81% of total AF Annual Consumption

All must-pay bills!

Initiatives

Related: fuel accountability

Turning off your monitor at the end of the day and setting your monitor sleep mode to 10 minutes saves the ANG $1.5M in annual energy costs!?

Source: Air Force Communications Agency IT Energy Conservation Analysis, April 2007

Did you know…

KC-135 Weight Reduction Event - Hawaii ANG

• Initial Results – Identified 5370 Lbs of weight (equipment, tools, chutes, etc) carried w/in the fuselage

• Evaluating mission-specific/standardized configurations, equipment reductions and potential light weight modifications

• Integrating weight reduction processes across the entire Mobility and Combat AF wide-body fleets

Weight by Criticality

MC- 1547.5 lbs

MC MOD 1301 lbs

NMC 2339.5 lbs

MC 181.5 lbs

Mission Critical Mission Critical - Less Mission Critical Modified Non-Mission Critical

NMC = 2339.5 lbs1= MC 181.502= MC- 1547.503= MC MOD 1301.004= NMC 2339.50

5369.50 lbs

ANG CPI Event Results Unit/State System Date/Type Frequency Results (Savings) Projected Savings/Yr

ANGRC Awards Jan 2007 / RIE Annually 114 Days ~354 Days per year

128th ARW (WIANG) KC-135RISO / Fuel Cell

Feb 2008 / ISO 15 months 232 Hrs/ISO ~203 Days per year

128th ARW (WIANG) PHA Mar 2008 / RIE Annually / person ~1.75 hours / physical ~122 Days per year

105th AW (NYANG) C5AA/C tow

Mar 2008 / RIE Per occurrence 42 Mins /Occurrence

~ 323 Man Hrs/ ISO/Yr

144 FW (CAANG) ATSO Jun 2008 / RIE Per Exercise / Inspection

42% reduction / occurrence

Standardized process

OHJFHQ HRO – Vacancy Process

Jun 2008RIE

As required 20 Day / occurrence ~90 Days per year

171st ARW (PAANG) Flying Hour Execution July 2008RIE

Weekly 41 Hours ~ 267 Man Hrs / year

173rd FW ORANG CE – Work Order Process

Oct 2008 / Problem Solving

380 / year 96% / 28 Days per work order

~ 10640 days / year

193rd SOW (PAANG) EC-130JAircraft Generation

Jan 2009 / Problem Solving

Per Exercise / Inspection

14.3 % reduction Standardized Process

193rd SOW (PAANG) Special Ops Wing A/C Scheduling

Feb 2009 / Problem Solving

Quarterly 1 Increased AC Avail/ 2 Man Yr Reabsorbed

52 days AC Availability156 Man Hr Reabsorbed

“Man o' man, hooray! … Great to hear this news of both success-in-processes and especially unit enthusiasm to make it happen. That's the way to culture/paradigm change and giving momentum to the process. Good on the 128th!” Col Rich Howard NGB/A4

"Thank you and your team …. I was not exactly into doing this project at first, having been scarred by the TQM thing in the past, but quickly learned that AFSO21 does not compare. I have since determined that there are several issues within Vehicle Management that we need to tackle and will do so in the future.” CMSgt Charles Breitzman 128th ARW

“Thanks for all your efforts to helping us become a much better running unit. Things are really beginning to move. We are down to around 75-80 backlogged work orders. Things are really looking up.”TSgt Carson Williams, 128th ARW/CES

Quotes From Customers

Quotes From Customers

“…people in the Guard need to know that AFSO 21 works !” Col Charlie Daughterly 179th AW/MXG

“I just couldn’t see taking 20-plus people and pulling them out of their shops and putting them in a room for a week to study the process…But, once we were in the room and the details were being worked, it quickly became apparent that this was a great opportunity to save valuable time. We actually earned back our up-front time investment after our first new ISO.” CMSgt Mike Stichler, 179th AW/MX

“We took 268 processes and cut it down to 48…And the beauty is that the quality is better than it was before. Most importantly, though, the process belongs to the people – it’s their process and they have provided 100 percent buy-in.” SMSgt Mike Vasko 179th AW/MX

Quotes From Customers

“The facilitators were outstanding! I can't give enough praise to them. Domreally put some time into this to make sure we had the best result possible.He was fully engaged prior to, during, and after the event. We knew we hada problem, but didn't know how to fix it. Dom and Bruce gave that knowledgeto us. I couldn't be happier with the service we were provided.” Lt Col Todd Swass 157th MXG

“Linda, Things here in the Inspection world are going great. The inspection flow is quite the thing to see, we are working on our third A/C and it's going pretty smooth, we've had hiccups along the way but have found ways to still make the process work”. MSgt. Norio M. Colipano142 MXS Inspection Section Supervisor

National Guard CPI

Why AFSO21?

“Top-down leadership; bottom-up solutions.”General Craig McKinley

Progression of NG CPI

• TAGs asked for a joint program o Link AFSO21 and ARNG LSS Methodologies

• Aligned from a Strategic and Performance Perspective

• Incorporate disciplines and best methodologies or Army and AF programs

National Guard CPI Program

• CNGB announced that the National Guard CPI Program was going to happen on 11 March 09

• Money was requested and allocated on 24 March 09

NGB CPI Program Time Line

Contractor Support to FY

11Staff Training

States and Projects Identified

Projects in motion

Measure Performance

TAG and Field Leadership

Strategic Alignment & Deployment

MissionThe Air National Guard AFSO21 Office provides training,

mentoring, problem solving, communication and effectiveness validation in order to change the culture to

accomplish the ANG mission.

VisionBy December 31, 2009, have the process and

measurement system in place that communicates the AFSO initiatives’ effectiveness

Air National Guard AFSO21 Office – NGB/CCO

ANG AFSO 21 Hi-Level Process

CandidatesProblem

Solve

Identify Candidates

Train Candidates

CertifyCandidates

FeedbackResults

ContactField Unit

AnalyzeProcessValidateResults

Report

Target #1

CommunicationReadinessCross tell

Culture Change

Air National Guard AFSO 21 OfficeStrategic Alignment

Educate, Motivate, and Consult

Strengths Weaknesses

ThreatsOpportunities

SWOT Profile

• Skilled Personnel• Funding

• Good Training Progress

• Good Event Execution

• Good Visibility and Control of Program

(Level I)

• Only 1 Full Time Level II in 50 States

• Level II programs not defined

• Poor - o Follow Up

o Data Collectiono Validation of

Eventso Scheduling and

Forecastingo Communication of

Vision

• Consequences of poor ROI communication

• Units dissociation with AFSO

• Outside Consulting Different Methodology

• Loss of AFSO Identity

• Partnerships with Civilian CPI

Organizations• Still Lots of Low

Hanging Fruit• Enterprise Applications

• Assistance to Readiness Center

for Goals and Objectives

• Marketing• Joint CPI with Army

National Guard• Outside Certification

Strategic Alignment &Deployment (SA&D)

• Results of SA&D drive events• List of 3-4 Events Identified

o Concentrate on processes that will build weaknesses into strengths

o Select a date for NGB to return to facilitate processes

• Events are Chartered and Supported by Wing Leadership and ANGRC Office

• Charters are developed by Process Owners, Team Leaders and Facilitators

ANG AFSO 21 Target #1 Charter

1. Mission - The Air National Guard AFSO21 Office provides training, mentoring, problem solving, communication and effectiveness validation in order to change the culture to accomplish the ANG mission

2. Vision - By December 31, 2009, have the process and measurement system in place that communicates the AFSO initiatives’ effectiveness

3. Burning Platform – the Readiness Center needs change of culture to meet mission with a reduction in resources

4. Process Description – The ANG provides the education, motivation, consultation, and infrastructure

5. Problem Statement – AFSO 21 is an initiative that can change that culture, but needs to prove its effectiveness sooner than later. The data collection and reporting appear to be constraint to increasing the flywheel effect towards culture change

6. Sponsor - 7. Team Lead – 8. Team Members -