Enterprise Transformation through Lean Six Sigma Deployment
-
Upload
vijaybijaj -
Category
Education
-
view
265 -
download
1
Transcript of Enterprise Transformation through Lean Six Sigma Deployment
Enterprise Transformation through Lean Six Sigma Deployment
VADM Wally Massenburg, USN (Ret)
1 May 2008
F404 Case Study – A Journey of Discovery
Requirements/Risk AssessmentCEO
CHIEF EXECUTIVE OFFICER
ProvidersCOO
CHIEF OPERATING OFFICER
SponsorsCFO
CHIEF FINANCIAL OFFICER
NAVAL AVIATION ENTERPRISE
RIGHT FORCE . . .RIGHT FORCE . . .RIGHT READINESS . . . RIGHT READINESS . . . RIGHT TIME . . .RIGHT TIME . . .RIGHT COST . . .RIGHT COST . . .
OPERATING AS AN ENTERPRISE
• SINGLE PROCESS OWNER • SINGLE FLEET-DRIVEN METRIC: AIRCRAFT UNITS READY
FOR TASKING AT REDUCED COST (CONTINUES TO MATURE)
• VALUES – WHAT WE BELIEVE– FLEET READINESS– “COST-WISE” (LESS $’S)– TIME ON WING (LESS STUFF)– SPEED (LESS TIME IN MAINTENANCE)– PEOPLE (CONTINUOUS IMPROVEMENT)
• THREE MAIN FOCUS AREAS: – READINESS: TODAY, TOMORROW, AND FUTURE– TOTAL FORCE READINESS (PEOPLE DIMENSION)– COST MANAGEMENT
THE INSPIRATION
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11PB98 71 125 144 150 164
PB99 71 119 143 154 164
PB00 105 140 163 183 187 201
PB01 128 130 173 177 187
PB02 88 92 115 119 143 155
PB03 90 85 105 147 193
PB04 100 100 133 191 254 302
PB05 108 134 183 238 283
PB06 128 170 195 242 248 242
# AIRCRAFT
Where did the money go?
Basis for Process Improvement – Lean Six Sigma
Product Enterprise TeamExample: F-404 Capacity Reduction
(Pre-Cursor to Fleet Readiness Centers)
•FY03 State was 9 Intermediate Maintenance Activities with excesscapacity and manpower
•37 Options Considered, 7 selected for detailed evaluation w/AIRSpeed application, ie. TOC, Lean, Six Sigma where appropriate
•Team Recommendation:–Phased down approach from 9 (FY04) to 5 I-Levels in FY05to 3 in FY06
•Starting Basic Allowance was 480 billets and COB was 359 personnel
–End state became167 military personnel & 8 tech reps•$161M was saved over the FYDP
F404 I-Level Consolidation MetricsF404 RFI / NRFI Removals
50
520
50
100
150
200
Oct-02
Apr-0
3
Oct-03
Apr-0
4
Oct-04
Apr-0
5
Oct-05
Apr-0
6
RFI
NRFI
F404 I-Level In-Work TAT
13 11
01020304050
FY03 Q
1
FY03 Q
3
FY04 Q
1
FY04 Q
3
FY05 Q
1
FY05 Q
3
FY06 Q
1
Inw
ork
Day
s
F404-400F404-402RIMAIR RTAT Goal
F404 TOW
428
463
0 100 200 300 400 500
F404-400
F404-402
MTSR
FY03
FY04
FY05
FY05 Q3-FY06 Q2
F404 I-Level NRFI Transfers
15.4
21010203040
Oct-04
Jan-
05
Apr-0
5
Jul-0
5
Oct-05
Jan-
06
Apr-0
6
Jul-0
6
Tra
nsf
er C
ou
nt
& D
ays
F404 NRFI Infant Mortality
131
0 50 100 150 200 250 300
0-100
201-300
401-500
Removals
FY03
FY04
FY05
FY05 4th qtr - FY06 3rd qtr
F404 PRG Status
62
27-500
50100150200
F404-400 Goal
F404-400 Status
F404-402 GoalF404-402 Status
F404 MEFHBR Status
440
422
0
100
200
300
400
500
Oct-99
Oct-01
Oct-03
Oct-05
Oct-07
Oct-09
Oct-11
Oct-13
-400 Actual-400 Goal-400 Fan Blade Life Stepdown-402 Actual-402 Goal-402 Fan Blade Life Stepdown
Manpower (MP)Aug 06
MP InputsEngines per Body
(12-Month RFI)
AIMD Lemoore - BA 84 1.3AIMD Oceana - BA 85 3.3MALS-11 - TO 43 4.4MALS-12 - TO / BA 27 2.6MALS-31 - TO 45 1.5Major I-Level - BA / TO 284 2.5
AIMD Lemoore - COB 66 1.6AIMD Oceana - COB 91 3.1MALS-11 - COB 43 4.4MALS-12 - COB 32 2.2MALS-31 - COB 42 1.6Major I-Level - COB 274 2.6
AIMD Lemoore - mechs available 32 3.8AIMD Oceana - mechs available (28 CFT included) 90 3.2MALS-11 - mechs available (7 CFT included) 43 4.4MALS-12 - mechs available 21 3.6MALS-31 - mechs available (5 CFT included) 32 2.5mechs available (40 CFT included) 218 3.5manpower end state goal 167annual engine per body baseline 6.4
F404 I-Level Consolidation Over-Arching Benefits
• Eliminates I-1 training requirements• Aligns sea & shore duty billet skill sets (I-3 repairs mirrored
at sea & ashore)
• Utilizes manpower more efficiently with civilian workforce• Creates local permanent resident experts with civilian
workforce
• Eliminates high turnover of mechanics- Reduces lost time due to inexperience- Reduces infant mortality removals (TOW)- Reduces production assembly variances
• Increases projected reliability- Historically depot produced engines consistently had
higher TOW than I-level sites
- Depot MEFHBR 502 EFH FY00-05
- Five major I-1 activities MEFHBR 398 EFH FY00-05
- All options support CNO’s military manpower reduction
goals
18
CRITICAL NAVY ENTERPRISE PROCESSES AND BEHAVIORSCRITICAL NAVY ENTERPRISE PROCESSES AND BEHAVIORS
1. Identify Domains and assign Single Process Owners.
2. Assemble the right Enterprise teams and gain commitment .
3. Operate in support of a Single Fleet-Driven Metric (what the Enterprise values).
Agreement on scope, outputs, and linked metrics
Transparency of data to promote trust and monitor performance
Shared knowledge on issues and key problems affecting the Domain
Recognize, nurture and respect technical authority
Identified entitlements (what’s needed, when, how much, and no more)
4. Agree on desired output (e.g., Readiness over Cost), with focus/ trade-space involving current and future readiness.
5. Operate with discipline, governance, and a regular (timely) drumbeat.
6. Baseline every dollar, all the people, all the stuff, and all the capability within the domain, with assigned accountability for outcomes.
7. Establish entitlements. Continually measure gaps-to-entitlement.
8. Remove barriers to productivity.
FLEET-WIDE VISIBILITY
72%
76%
80%
84%
88%
Nov
-02
Dec
-02
Jan-
03
Feb
-03
Mar
-03
Apr
-03
May
-03
Jun-
03
Jul-0
3
Aug
-03
Sep
-03
Oct
-03
Nov
-03
Dec
-03
Jan-
04
Feb
-04
Mar
-04
Apr
-04
May
-04
Jun-
04
Jul-0
4
Aug
-04
Sep
-04
Oct
-04
Nov
-04
Dec
-04
RFT- ALLNAV Linear (RFT- ALLNAV)
AVAILABILITY
OUTER WING PANELS. DEPOT REPAIR, EXPECT HEALTHY BY AUG05 SYSTEM CONFIGURATION, A/C DISTRIBUTION
EA-6BP-3
< 70%
NMCM (S). ACFT INVENTORY.PROP MOD. RFT POLICY CHANGE IN WORK.
SH-60BE-2
70%-89%
F-14, F/A-18, S-3, SH-60F/H, C-2> 90 %
M&SCM IMPACTING RFTPLATFORMRFT %
READINESS . . . SLOWLY INCREASING
-100
-50
0
50
100
150
200
250
J F M A M J J A S O N D J F
Squ
adro
ns
In Limits 20% 30%
READINESSFLIGHT HOUR PROGRAM
OVERARCHING READINESS AND SUSTAINMENT CONCEPT
• Balance Capability and Availability @ Reduced Cost(Fleet Driven Metric)
• Supporting MetricsInventory (People and Stuff)ReliabilityCycle Time Reduction$$ Total Cost (All Financial Stovepipes)
• 10 Integrated Logistics Support Elements (Where all the cost is borne)
CONCEPT COMPARISONLegacy Concept
• Centralized Approach
• More Work / Fewer Places Is Better
• Expand Capacity
• Functionally Stove-piped
• Supply Push Model
• Inventory Oriented
• Result: Cost Neutral
Future Concept
• Fleet Driven - Enterprise Controlled
• Work Required Where It Makes Best Business Sense
• Continuous Improving and Synchronous (Lean)
• Fully Integrated – End To End• Demand Pull Model• Readiness Oriented• Result: Managed Cost and
Personnel Reductions
We Take Advantage Of Lean At The Nodes, And Take Advantage Of Cycle Time Reduction, Across The Enterprise To Take Greater Advantage of Continuous Reductions In People and Parts
While Only Producing the Required Readiness – AND NO MORE