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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…
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
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