DLA/DNSC Provides stewardship for strategic and critical materials in the US National Defense Stockpile

The Stockpile was created before WWII to reduce US dependence on foreign sources of supply during national emergencies

DNSC currently stores over 40 commodities valued at over $1.5 Billion at 27 locations DLA Headquarters, Fort Belvoir, Virginia

In 1992, Congress authorizes aggressive sale of 99% DNSC materials, closing storage sites, and

reduction in force

48

43

8891011

57

32

20

40

65

1921

15

28

50

4239

33

24

8

19

13

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Actuals 1997 Strategic Plan

820Unstaffed Locations37Staffed Depot Locations1127Active Storage Sites

FY 2008FY 2006

Resource Reduction + Increased Workload = Increased Risks

DNSC was the first DLA Activity to implement a conforming EMS ISO 14001 and integrated with OHSAS 18001

Transformation demands innovation, dynamic and forward thinking, and expansion of potential tools to execute mission

TRANSFORMATION

DNSC Process Management and Optimization Project

KEY ELEMENTS of the PMOP:

Tap into the Human Capital and knowledge base before force reduction takes it’s toll

Draw from all best practices and lessons learned

Develop culture of inclusion, value human capital

Top Level Support Is the Key

Top management drivesthe transformation withfull, active and visible support.

Commitment is consistent and repeated oftenManagers at all levels share and dedicate human capital to contribute to team planning, and meeting participationTeam Leader or Project Manager selected to facilitate

Identify Burning PlatformWith Top Management, Operations

Management, and Team Lead

Environmental RisksSafety & Health RisksCustomer satisfactionFinancial managementAcquisition lifecycleprocessesAll of the above and/or more?

How our EMS was the Enabler

Plan – Do – Check - Act

Had established EMS elements such as documentation, document control, emergency plans, monitoring and measurement, communications, objectives and targets, periodic reviews, compliance, records – all part of the PMOP

With the EMS structure in place, the Process Optimization With the EMS structure in place, the Process Optimization elements were easy to applyelements were easy to apply

Team Selection

Once a Process was selected for optimization, the core working team was establishedStakeholder or process owner with knowledge of existing top level process flow from start to deliverableSubject Matter Experts, individuals with distinctly different functional expertise having “hands on” knowledge of the processTeam lead and overarching process owner remain core membersthroughout projectTeam lead facilitates meetings and working sessionsSubject Matter Experts may be Ad Hoc members, attending only sessions involving specific parts of the overall processOperations or Middle Managers attend all meetings, but may not attend all working sessionsTop level management is briefed on status at regularly scheduled briefings

Initial Team Collaboration and Brainstorming Session

Verified site and Depot Verified site and Depot closure project scope, closure project scope,

Verified project objectivesVerified project objectivesRelate all to agency or Relate all to agency or customer missioncustomer missionVerified organizational Verified organizational goals and objectivesgoals and objectivesVerified project deliverablesVerified project deliverables

Develop Process Flow MapDevelop Process Flow Mapof current process across functional linesof current process across functional lines

Developed rough top Developed rough top level process from level process from start to deliverablestart to deliverableDevelop and breakoutDevelop and breakoutlower level processeslower level processesEnsure Subject Matter Ensure Subject Matter experts participate on their areaexperts participate on their area

Process Name: Project Planning

ESS

Dep

otPr

ojec

t Mgt

.O

pera

tion

Mgt

.G

SSD

irect

or Brief on recommmendations

Accept Prelim Analysis?

Notification of commodity move

Proceed to SOW,IGE,PR

process using PA

Preliminary Analysis

Completed

Present Prelim. Analysis for

review

DataSales Plan

DNSC?

DataInventory Levels

Project on Hold

PROCESS OUTPUTPreliminary Analysis

Proceed to Implementation

using PA

Envir/Health/Safety risk evaluation

Aprroved? Project Released

Use Contractor

Revise Plan?

YES

NO

NO

YES

NO

YESYES

Project on Hold

NO

Project Released

CLARIFY MAP AND REVISIT FOR ACCURACYCLARIFY MAP AND REVISIT FOR ACCURACY

OSDDC database is not designed for multiple trucks

Well developed training for using the SDDC system.

Truck line evaluation. Must evaluate each shipment when it is completed

Depot SDDC government transportation database

PriceCorrect trucks

3

ONo documentation or procedures to accomplish the work.

Open communicationClose proximity to each other

Cost savings of rent.Specific customer need metAble to determine whether to use contractor or DNSC staff

Ops HR restructure planHR staffing levelInfo from depot on staffing levelProject analysis planVerbalWritten

Cost savingsAble to meet customer’s needsAchieve restructure plan

2

ONo documented method or records

Timeliness and streamlinesRelationship with depots

No measurements Monitors budget and timing

Director-Operations (No formal document sent)

Depots (inventory levels, commodities.., no defined information, in e-mail or verbal)Environmental (reviews and approves or doesn’t approve)

Project Analysis Plan

1

FWeaknessesStrengthsMetricsCustomer(Internal)

Supplier(Internal)

Desired Results

Task

Process Description Form

Process Description Form Example

Methods not documentedMethods not documentedCommunication informal (verbal)Communication informal (verbal)Conflicting ideas of how work flows Conflicting ideas of how work flows Process stops when people are not available (out of Process stops when people are not available (out of town for a week)town for a week)No analysis of incidents to determine root causeNo analysis of incidents to determine root causeLack of understanding of the constraints and Lack of understanding of the constraints and expectations of other departmentsexpectations of other departments

Brainstorm Working Session Failure Analysis and Process

ImprovementPotentials for failureRedundancies identifiedOpportunities for improvement

Re-create process map with improvements

Prepare Future State Map and Products

Formalize Improved Process Maps with changesFormalize Improved Process Maps with changes

Prepare SOPs and higher level instructionPrepare SOPs and higher level instruction

Formalize SOPs and Instructions into the EMSFormalize SOPs and Instructions into the EMS

SOPs and Process maps combine complete SOPs and Process maps combine complete documentation in the websitedocumentation in the website

Monitor and Measure

Establish Metrics, Monitor Results

Measure number of contract modificationsDo post project evaluations

Uncontrolled environmental impactsUncontrolled health and safety impactsOn-time completionProblems or surprises

Further revise if neededPut into management system

Despite a 30% reduction in resources and staff in the past year, DNSC actually increased income providing more return to our war-fighter.

PMOP serves as Continual Process Improvement tool

All processes formalized in the EMS website

DELIVERABLES

Formal top level Instructions developedAnd implemented

Formal SOPs developedand implemented at Operations and Headquarters levels

Metrics established andMonitoring & MeasurementImplemented

All processes formalized in the EMS website

So What are the Benefits?

Formal Instructions and SOPs where none existedRetain knowledge/Experience Base despite force reductionsCreate Value-Added processes from chaosDo more with lessEstablish continual improvement cultureEstablish and foster interdepartmental, cross functional relationships to solve problemsReduce single point failures

Maximize return where it ultimately matters most…

M I S S I O N

Where Do We Go From Here?

From pilot approach to across the organization wall to wall

Continual improvement as we draw down further

Continual success and sharing our experiences with the DLA Enterprise

Visit the web sitehttps://www.dnsc.dla.mil/iamthekey

Questions & AnswersStephen Surface

703-767-6520Stephen.surface@dla.mil

John P. De Renzis703-767-6519

John.derenzis@dla.mil