2005 DOD Maintenance Symposium & Exhibition · 2005 DOD Maintenance Symposium & Exhibition ... NAVSEA Business Model: ... USS TRUMAN (CVN-75) FY06 DPIA FY06 FY07

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2005 DOD Maintenance Symposium & ExhibitionTuesday (10/25), 14:00-16:00 Breakout/Technical Session:Reinventing the Wheel or an Idea Whose Time has Come?Ideas that are Transforming Defense Maintenance (Ships)

Captain Joseph Campbell Commander, Norfolk Naval Shipyard

Portsmouth, Virginia

Statement A: Approved for public release; distribution is unlimited

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Sea BasingProjecting Sovereignty...

Worldwide access, secure, adaptable

Sea Warrior FORCEnet

Sea Trial

Sea Enterprise

Sea ShieldProjecting Defense...

Assured access, sea-based homeland defense

Sea StrikeProjecting Offense...

Agile, sustainable, precise, persistent

Transformation/Change is a continuous process!Approved for public release; distribution is unlimited.

SEA POWER 21

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CNO Priorities & NAVSEA Taskers:Fully Aligned

Maintaining Current Readiness

Building a 21st Century Workforce

Building a Navy for the Future

Maintaining Current Readiness

Building a 21st Century Workforce

Building a Navy for the Future

Naval Sea Systems Command Roles and Responsibilities in the Naval Warfare Domain Enterprises

Assessment of the Organizational Alignment to Support the Enterprise Construct

Defining and Measuring Output and Outcome

Assessment of Current & Future Initiatives

Strategic Communication PlanEnhancing the PEO/NAVSEA

PartnershipEnhancing the NAVSEA/ONR

Partnership and Technology Transition

Alignment of NAVSEA Contracting to a Competency Construct

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NAVSEA: A Provider Command

CFFC

PROVIDERS RESOURCE SPONSORS

Both at the Enterprise and individual

Warfighter Domain Level

AIR

NETWAR

EXW

SUB

SURF

SINGLE NAVY ENTERPRISE

This is where we are headed

NAVSEA Su

bs

Car

riers

Gun

s

Syst

ems

Mis

sile

s/To

rp.

Surf

Sh

ipsPEO

CVPEOIWS

PEOLMW

PEOSHIPS

PEOSUB

Build & Buy In-Service/Legacy SupportENGINEERING

INDUSTRIAL OPERATIONS

BUSINESS OPERATIONS

TECHNICAL SERVICES

LINES OF BUSINESS

NAVSEA’s Lines of Businesseee aaa nnnLLL eee aaa nnnLLLNAVSEA Business Model: Seamless Support Across the Enterprise

Undersea Warfare EngineeringNuclear Propulsion

Ship Design, Integration & EngineeringWarfare Systems EngineeringHuman Systems Integration

Maintenance/LogisticsShipyards

SUPSHIP New ConstructionSUPSHIP Repair - Transfer to RMC

12 Aligned Product Areas across the NAVSEA Warfare Canters

FM/ComptrollerCost Engineering

ContractingCommand Ops/IT

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Sea Warrior FORCEnet

Sea Trial

Sea Enterprise









Transformation/Change is a continuous process!

SEA POWER 21

NAVSEA Industrial Operations “Line of Business”

- One Shipyard -

CVN Depot Maintenance Facility

Southwest RMC

Navy Foundry and Propeller Center (NFPC)

Naval Sea Logistics CenterSUPSHIP BATH

PUGET SOUND NSY & IMFPacific Northwest RMC GD Electric Boat

SUPSHIP GROTON

NORFOLK NSYNG Newport NewsSUPSHIP NEWPORT NEWSMid-Atlantic RMC

SUPSHIP GULF COAST

PORTSMOUTH NSYSUBMEPP / SHAPEC

PEARL HARBOR NSY & IMFHawaii RMC

Southeast RMC

South Central RMC

Japan RMC

NAVSEA HQ & PEOs

Reducing the Cost of Maintenance &Increasing Operational Availability of Ships

Workforce Budget (M)PNSY 3,909 $572NNSY 7,778 $967PSNSY&IMF 9,879 $1,063PHNSY&IMF 4,266 $491Total 25,832 $3,093

Naval Shipyard FY05

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Partnering With the Shipyard IndustryPartnering With the Shipyard Industry

NSRP Lean Shipbuilding Initiative

Northrop Grumman Newport News

National Shipbuilding Research Program (NSRP)Advanced Shipbuilding Enterprise (ASE)

Government collaboration with industry to reduce cost and eliminate waste

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OptimumNumber of ShipsOptimum

Number of Ships

Lean Transformation of Industrial BaseLean Transformation of Industrial Base

$ to Recapitalize $ to Sustain

Fleet Response Plan SEA Enterprise

Current Fleet Readiness Future Fleet Readiness

THE INDUSTRIAL BASE

Capability& CapacityFacilities

WorkforceMaintenance& Logistics

Policies

Smart Shift of Capital Investment

THE INDUSTRIAL BASE

Capability& CapacityFacilities

WorkforceMaintenance& Logistics

PoliciesRightReadiness

RightCost

Right Force

More Force StructureMore Force Structure

Right Force

More Operational TimeMore Operational Time

RightCost

RightReadiness

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Lean in the Shop, Lean on the Ship, and Lean everywhere in between

NSY Lean Transformation Plan

Hum

an C

apita

l Stra

tegy• Executive

Planning Sessions

• Values Stream Analysis

• Rapid Improvement Events

• Training

• Metrics

• Hiring Strategy

• Attrition

• SurgeMain

• NSPS

• Voluntary Protection Program/Safety

$$$ Cost-Wise Readiness $$$

Shi

pyar

d D

eplo

ymen

t Pla

ns

Nat

iona

l Val

ue S

tream

s

Platform NVSs (Tier-One)

• Carrier• SSN688• SSBN/SSGN

Process/ Functional NVSs (Tier-Two)

• Industrial Process

• Project Management

• Lifting & Handling

• Material• Training• Resource

Management

eee aaa nnnLLL eee aaa nnnLLL

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All Employees• Provide data and voice of

customer inputs to VSA, RIE, and Projects

• Apply concepts to their own jobs and work areas

• RI Team or Project specific support

• Part time

TeamTeamMembersMembers

All Employees• Provide data and voice of

customer inputs to VSA, RIE, and Projects

• Apply concepts to their own jobs and work areas


• Part time



• Part time


• Owns vision, direction, business results• Leads change• Allocates Resources

ExecutiveExecutiveLeadershipLeadershipCOs/DHsCOs/DHs

• Lead small-moderate projects

• Support Rapid Improvement Teams

• Full time role

Green BeltsGreen Belts

• Lead small-moderate projects

• Support Rapid Improvement Teams

• Full time role

Green BeltsGreen Belts• Leads larger projects • Coaches Green Belts• Full-time position

Black BeltsBlack Belts

• Leads larger projects • Coaches Green Belts• Full-time position

Black BeltsBlack Belts

• Trains Black Belts • Trains Green Belts• Leads Complex Projects • Full-time position

MasterMasterBlack BeltsBlack Belts

• Trains Black Belts • Trains Green Belts• Leads Complex Projects • Full-time position

MasterMasterBlack BeltsBlack Belts Team LeadersTeam Leaders


• Part-time

Team LeadersTeam Leaders


• Part-time

• Internal Deployment Leader• Captures Metrics• Owns Communication Plan• Owns Deployment Plan

Lean ChampionLean Champion

Lean Office

• Internal Deployment Leader• Captures Metrics• Owns Communication Plan• Owns Deployment Plan

Lean ChampionLean Champion

Lean Office

• Owns Rapid Improv. Plan• Owns Redeployment Plan• Owns financial results• Removes Barriers

Value StreamValue StreamChampionChampion

Line Departments

• Owns Rapid Improv. Plan• Owns Redeployment Plan• Owns financial results• Removes Barriers

Value StreamValue StreamChampionChampion

Line Departments

Roles and Responsibilities

NAVSEA Lean Six Sigma College (L6SC)

EnterpriseEnterpriseTraining:Training:

CoursesCoursesBlack Belt - Six weeks of instruction over six months

Green Belt - Five days of instruction over 1 week

Champion - Three days of instruction

Pennsylvania

Indiana

California

Virginia

Maryland

Florida

Maine

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L e a n

Hawaii

Mississippi

WashingtonPUGET SOUND NSY & IMF

NUWC KEYPORT

PEARL HARBOR NSY & IMF

SUPSHIP Bath (detachment)NSWC CORONANSWC PORT HUENEME

South West Regional Repair

NSWC CRANE

SUPSHIP GULF COAST

NSWC Coastal Systems Station (Panama City)

NSWC Ship Systems EngineeringStation

NAVAL Foundry & Propeller Center

NAVSHIPYD NORFOLKNSWC DAHLGRENSurface Combat Systems

Center (Dam Neck)Mid Atlantic Regional Repair

NAVSEA HQ PEOsNSWC HQ

Washington DC

NSWC CARDEROCKNSWC INDIAN HEAD

SUPSHIP GROTON

NUWC HQNUWC NEWPORT

Connecticut

NAVSHIPYD PORTSMOUTHSUPSHIP BATHSUBMEPP Rhode Island

Pennsylvania

Indiana

California

Virginia

Maryland

Florida

Maine

333333

L e a nL e a n

Hawaii

Mississippi

WashingtonPUGET SOUND NSY & IMF

NUWC KEYPORT

PEARL HARBOR NSY & IMF

SUPSHIP Bath (detachment)NSWC CORONANSWC PORT HUENEME

South West Regional Repair

NSWC CRANE

SUPSHIP GULF COAST

NSWC Coastal Systems Station (Panama City)

NSWC Ship Systems EngineeringStation

NAVAL Foundry & Propeller Center

NAVSHIPYD NORFOLKNSWC DAHLGRENSurface Combat Systems

Center (Dam Neck)Mid Atlantic Regional Repair

NAVSEA HQ PEOsNSWC HQ

Washington DC

NSWC CARDEROCKNSWC INDIAN HEAD

SUPSHIP GROTON

NUWC HQNUWC NEWPORT

Connecticut

NAVSHIPYD PORTSMOUTHSUPSHIP BATHSUBMEPP Rhode Island

Regional Training for Green Belts &

Champions

Regional Training for Green Belts &

Champions

Course# of

ClassesStudents per Class

Total Trained

Black Belt 7 22 154Green Belt 13 22 286

VS Champion 13 22+ 286Lean Repair Exercise 6 40 240

TOTAL 39 966

• NAVSEA/PEOs

• Naval Shipyards

• Naval Warfare Centers

• Fleet

Joint Force Involvement

•

West Coast L6SC Site –NSWC Port Hueneme

(start FY 06)

East Coast L6SC Site –

Norfolk Naval Shipyard


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Cost Reductions FY07 Value(By Value Stream)

21.1%

3.6%

12.3%

3.3%9.6%24.7%

8.9%

16.4%

Subs L & H C920 BackshopC930 Backshop C960 Backshop C970 BackshopCVN FA Focus

Total RIEs/Projects Completed: 72Total CRRs Submitted: 69

Lean Implementation Example:Norfolk Naval Shipyard (NNSY)

FY05 Lean Implementation Plan/Resultseee aaa nnnLLL eee aaa nnnLLL

Cost Reductions

02468

101214161820

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

FY05

$M

FY Model FY07 Projected Reduction Actual

Cost Reductions

02468

101214161820

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

FY05

$M

FY Model FY07 Projected Reduction Actual

Deployment Model Based on $200K/RIE

Based on Actual CRRs Submitted; Avg:

$200K/CRR

Cost Reduction FY07 Value(By Affected Platforms)

30.0% 28.7%

41.3%

SUBS CARRIERS OVERHEAD

NNSY Lean ImplementationNNSY Lean Implementation

Lean Training(Roles)

Lean Training(Roles)

Lean Deployment

(Participation)

Lean Deployment

(Participation)

Lean Execution

(ROI)

Lean Execution

(ROI)

Green Belt

Training

Green Belt

TrainingBlack Belt Training

Black Belt Training

Champion Training

Champion Training

Rapid Improvement

Events & Projects

Rapid Improvement

Events & Projects

Lean Basics

(Workforce)

Lean Basics

(Workforce)

RedeploymentRedeploymentCost Reductions

Cost Reductions

Lean Transformation Plan: NNSY Metrics Dashboard

Annual Target: $18.5MAct to Date: $12.7M

Note: Metrics are measuredagainst TFL Deployment Modelbased on N/20 Pace for FY05 perNAVSEA Memo 5200 Ser TFL/006dated 14 Jan 06

Annual Target: 22Act to Date: 21

Annual Target: TBDAct to Date: 57

Annual Target: NoneAct to Date: 75




TFL ModelFirst YearTarget Pace:N/20 (5%)

Accrual in FY05 for FY07 Based on Deployment Plan

(RIE rate and $200K ROI)

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Structural920

Machine930

Electrical950

Piping960

Service970

Key

/Sup

port

Pro

cess

esBu

dget

; Sch

edul

e; P

aper

; Mat

eria

l

FY06 Lean Execution Strategy:

SSN CVN SSBN/GNShop Stores/ MRP

Generate 1348[2.2]

CHRIMP

After Receipt of Order(ARO)

HM Review &AUL Approval

[1.2]

ProcessMRQT / JML

in MAT &Forward

[3.1]

Overpack atHAZMAT

Accum. Area[7.3]

ReviewInventory forDeposition

[9.1]

MechanicUse / Reuse

Paint &Return [7.2]

Prep Wastefor Shipment

[8.2]

Inspect Paintfor QA[4.5]

HAZMINCENVerify &

Accept Order[4.3]

ReceiptMaterial(MMD)[4.1]

Supplier FillsOrder ($700)

[3.6]

LocalContractAward[3.5]

Credit CardPurchase

[3.4]

TechnicalReview[3.2]

Request to AddHM to AUL

[1.1]

Transport toB/280

Warehouse[4.2]

Ship NewPaint to B/

276[3.7]

Transport toHAZMINSatellite

[6.4]

START:Approved

WorkPackage

LEAN PAINT VSM

Source To Local Shop Stores

NON-STANDARD

>$2,500 <$2,500

LAB RESULTS (LIMS)

NON-CRITICAL

WASTE

CRITICAL

FAIL (MPR/PDQR)

Call Out Paint(ARK)[6.1]

CURRENT STATE

Rev. 10/20/2004

REJECT MATERIAL (MPR/SDR)

Request PaintTest[4.4]

MaterialKitting / Pick

Up[6.2]

ProcessMMD "Issue"

in HSMS[6.3]

Verify AUL,Create HSMS

Record &Label[4.8]

ResolveDefectiveMaterial

[4.6]

Decant &Issue Paint(Track Use)

[7.1]

Transport &Receipt

Waste B/506[8.1]

AutomaticCC "0"SC "A"

CC "2"SC "P"

END:Close OutProject

SHOP STORES RETURNCREDIT

EXPIREDSHELF LIFE

END:PaintRFI

ManageMaterial

[4.7]

END:Waste

Disposed(10%)

Submit "OutageVerification Log"

[7.3]

UDM

Source toFederalSupplyService

[3.3]

STANDARD

NON-STANDARD

ID Mat'l &Generate JML

[2.1]

START: JobExecution

& QA = "4"

END:TransportOff-Base(15%)[9.2]

S/F &Contractor

Paint Waste[7.3]

(10%)

(15%)(75%)

PASS

EXCESS / EXPIRED S/L

AccountsPayable

[5.0]

Procurement Action LeadTime (PALT)

Shop Stores/ MRPGenerate 1348

[562/224]

CHRIMP

After Receipt of Order(ARO)

ProcessMRQT / JML

[MAT01]

MechanicUse / Reuse

Paint &Return [971]

Inspect Paintfor QA[130]

ReceiptMaterial(MMD)[562]

LocalContract

Award[530]

Ship NewPaint toEUSL

START:Approved

WorkPackage

LEAN PAINT VSM

Source To Local Shop Stores

Call Out Paint(ARK)[225]

FUTURE STATE

Decant &Issue Paint(Track Use)

[971]

AutomaticCC "0"SC "A"Use "J"

END:Close Out

Project

ID Mat'l &Generate JML

[250]

START: JobExecution

AccountsPayable

[610]

Procurement Action LeadTime (PALT)

Forecast

Del iveryOrder

ARK Call Out / Shop StoresRelease Order

Notification of Lot (Batch)Approval

Internal Receipts

MaterialKitting / Pick

Up[562]

Requisition

.

VendorFills Order[Virtual SS]

“Just in Time”Delivery

Before After

Example:

Submarine Structural Fab

Before After

Cost ReductionFY05 $0KFY06 ~$575KFY07 ~$767K

Cost ReductionFY05 ~$444KFY06 ~$455KFY07 ~$468K

DrivingDown

Cost$$$

Example:

Supply Chain

CostPerformance

SchedulePerformance

QualityPerformance

SafetyPerformance

C-200

C-134

C-610

Vendor

Waterfront

C-225C-560 (Bldg 276)

C-530

C-560(Bldg 280)

C-515.1

C-560 (Kitting)C-136

C-200

C-134

C-610

Vendor

Waterfront

C-225C-560 (Bldg 267)

C-530

C-560Bld 280

C-515.1

C-560 (Kitting)C-136


Core Mission

USS HAMPTON (SSN-767) FY05 DMP USS CHARLOTTE (SSN-766) FY06 DMP

USS TRUMAN (CVN-75) FY06 DPIA

FY06 FY07

USS GEORGIA (SSBN-729) FY05 ERO/CONV USS ALASKA (SSBN-732) FY07 ERO

NNSY Process Improvement Program:“Transforming to Better Support the Fleet”

Documents

2005 DOD Maintenance Symposium & Exhibition · 2005 DOD Maintenance Symposium & Exhibition ... NAVSEA Business Model: ... USS TRUMAN (CVN-75) FY06 DPIA FY06 FY07