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NAVSEA LEAN

Presented By

Maggie MaguireNAVSEA Comptroller

13 June 2005

It’s a Journey – Not a Destination

LEANTransformation

LEANTransformation

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NAVSEA LEAN

• Goals and Objectives– Improve productivity and return on investment– Support any efforts that are already underway– Change the culture – Incorporate Lean into the line organizations

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NAVSEA Lean is…

• Integrated and Aligned with– ASN (RD&A) Source Document, “Blueprint for the Future”– DASN (Logistics) Lean Efforts

• Applicable to all lines of business, product lines, and processes across HQ/PEO/Field Activity enterprise for

direct, direct support, and overhead work

• Consistent with NAVSEA’s overarching business strategy/approach for continuous improvement– Incorporates Lean, Six Sigma, Theory of Constraints

Critical Chain Project Management, BPR…..

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LEAN CONCEPTS AND PRINCIPLES

• Key terms • Value/ Value stream• Flow• Muda

• Type One –unavoidable in current system• Type Two - avoidable

• Customer focus• Pull• Perfection

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COMMANDERNAVAL SEA SYSTEMS COMMAND

SEA 00EXEC DIR.SEA 00B

P. BROWN (SES)

VICE CDR/DEP CDR FLEETMAINT & MODSEA 09

RADM A. LENGERICH

CORPORATEOPERATIONS

SEA 10

VADM P. BALISLE

Task Force Lean

Warfare Centers

Naval Shipyards

HQ LoB& PEO

Task Force Support Functions

Flag/SES level

Lean Efforts

Task Force Lean (TFL)

Organization

Contracts; legal & financial support as

neededContractSupport

Deploy via Command Lines of Business (LoB)

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PNSY - Ball Valve RepairPNSY - Ball Valve Repair

““Implementation of Lean Manufacturing Techniques in the Ball Valve Shop is Implementation of Lean Manufacturing Techniques in the Ball Valve Shop is the first and most mature example of a process that is the best in class at the first and most mature example of a process that is the best in class at PNS and throughout NAVSEA.” PNS and throughout NAVSEA.”

- Inspector General Report, March 2004- Inspector General Report, March 2004

Average Ball Valve Cycle Time per QuarterAverage Ball Valve Cycle Time per Quarter

Quarter Quarter 1 2 3 4 1 2 3 4 1 2 1 2 3 4 1 2 3 4 1 2

Cycle Time (days)Cycle Time (days) 208 176 148 140 100 82 61 53 54 45208 176 148 140 100 82 61 53 54 45

FY 2002FY 2002 FY 2003FY 2003

Goal = 20 DaysGoal = 20 Days

FY 2004FY 2004

95% Decrease in Overtime Hours95% Decrease in Overtime Hours

28% Increase in Throughput28% Increase in Throughput

92% Increase in Productivity per Labor Hour92% Increase in Productivity per Labor Hour

60% Improvement in Cycle Time60% Improvement in Cycle Time

Process Improvements FY 2002 - FY 2004Process Improvements FY 2002 - FY 2004

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Improving Crane Availability

Portal Cranes

Reduced Crane Maintenance from 98 to 37 Days

Reduced Overtime Costs from $180K to $0

Portal Crane Annual Maintenance Savings $960K/Year

Bridge Cranes

Category II Bridge Crane Savings $400K/YR

88% Reduction in Maintenance Cycle Time from 30 to 7 days

Eliminated Work Backlog

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38B Ordnance ShopFirst Pass

Before• Lead Time: 60 Days• Manpower: 18 Sailors• Inventory: Excessive• Excessive Transportation• Premiums paid to local

contractors• Unpredictable quality

After• Lead Time: 3-5 Days• Manpower: 15 Sailors• Inventory: 50%

reduction• Transp. waste

eliminated• Premiums reduced by

$30K per repair not sent to UD

• Anecdotal quality increase

Added capability to repair VLS Hatches due to improved gun repair process.

Lean in SWRMC

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NAVSEA LEAN BUSINESS AND OPERATIONS

• Currently Approved Projects– Funding Documents– University Affiliated Research Centers– Procurement Requests

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The Lean Toolbox(NOT all inclusive)

• Change Management

• Balanced Scorecard Metrics

• Value Stream Analysis / Value Stream Maps

• Rapid Improvement Workshop

• Brainstorming

• Win/Win

• Prioritization

• 5 Why's

• Theory of Constraints

• Nominal Group Technique (NGT)

• Team Building & Facilitation

• Project Planning

• Process Analysis

• Causal Loop Diagramming

• Process Observation / GEMBA

• Six Sigma

• Basic Statistics

• Data Analysis Tools

• Root Cause Analysis

• Hypothesis Testing

• 5 S / Visual Controls

• Poke-Yoke / Error Proofing

• Pull Systems

• Supply Chain Management