Dale L. Moore NAVAIR AIRSpeed Deputy Corporate Deployment Champion 27 March, 2007 Achieve the Mission Decrease Inventory Decrease Cycle Time Improve Reliability

Dale L. MooreNAVAIR AIRSpeed

Deputy Corporate Deployment Champion27 March, 2007

Achieve the Achieve the MissionMission

Decrease Inventory

Decrease Cycle Time

Improve Reliability

Decrease Operating Expenses

Naval Aviation Enterprise AIRSpeed:

Transforming the End-to-End Value Stream

presented to

15th Annual Conference on Quality in Space & Defense

04/19/23 13:2200A1 KC 00A_AIRSPEED_STRUCTURE_4OCT04.PPT 2

TQL/TQMISO 9000

1990

1999

2000

2001

2003

2002

2004

ASN RD&A Directs Use of LSS

Cultural Institutionalization

DEPOTS and SHIPYARDS COMMENCE

LEANNAVAL AVIATION

ENTERPRISE

LEAN Events on Three AIRCRAFT CARRIERS

NAVSEA Task Force Lean

Striving for: “LSS - Business as Usual”

NAVAIR HQ AIRSPEED

DoD Senior Leadership Directs Use of LSS

Navy and USMC Industrial Base Shows Output From LSS

2005

Transactional Projects Yield

Output

2006

DoN Lean Six Sigma (LSS) Journey


FY 07 DoN Budget

RDT&E13%

O&M31%

Procurement26%

M&P30%

DoN Total Obligation Authority (TOA)

$127.3B 65% is people cost

FY06 TOA$125.6B

CVN-21 DDX LCS JSF MMA V-22 ACS LPD-17 EFV LHA(R) HLR


Continuous Process Improvement Ingrained At The Senior Level of

Navy Leadership

• “…faced with executing two great tasks simultaneously…fighting today’s war and positioning our Force for an uncertain future…

• We face additional fiscal pressures that lead us to better stewardship of taxpayer dollars…where greater efficiency leads to improved effectiveness..

• …I found that both buyers and sellers who employed Lean Six Sigma (LSS) experienced greater efficiencies, increased morale and higher levels of performance…

• LSS is a proven business process…several elements of the Navy/Marine Corps Team have engaged…4:1 return on investment…

• The mission is clear: create more readiness and assets within our budget through LSS…I expect you, my Leadership Team, will personally support this initiative…injecting it into our performance objectives…

• …establish the next steps toward more fully employing LSS in our organization. “

Donald C. Winter

SECNAV Values Leaders Who…•Excel At Business / Process Improvement

•Deliver Solutions At Best Cost

•Are Change Agents

•Lead Based On Insightful Metrics

•Use LSS To Improve

•Cascade / Measure SECNAV Guidance Penetration Throughout Organizations

SECNAV’s Guidance for Senior Executive’s PerformanceAlign Leadership Expectations With Workforce Accountabilities


5

10

15

20

98 00 02 04 06 08 10 12 14

AV

ER

AG

E A

GE

FISCAL YEAR

The Dilemma

…And We Can’t Afford To Buy The Number Of New Aircraft We

Need

The Problem: We Need To Buy An Average Of 200 New Aircraft Each Year To Maintain

Our Average Aircraft Age.

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 111 134 183 238 283

PB06 128 170 195 242 248 242

20-year-old Aircraft Are Costly To Maintain… Maintenance Man-hours Per Flight Hour

Increasing…


Key Organizational Concepts

Three Major Concepts Converging:

• Naval Aviation Enterprise (NAE) Construct

• Competency Aligned/Integrated Product Team Concept of Operations

• NAE AIRSpeed Deployment of Lean Six Sigma and Theory of Constraints Continuous Process Improvement (CPI)


NAE BOD LOGOS


Enterprise Principles

• Start With the Outcome (Readiness / Cost), Improve Your Processes (AIRSpeed), Implement Residual Organization

• Utilize A Set Of Consistent, Integrated, And Hierarchical Metrics

• Ensure Full And Consistent Transparency Of Data And Information Throughout

• Establish And Maintain Process Discipline Throughout

• Establish And Maintain Accountability For Actions And Results Throughout

• Apply An Integrated Governance Structure

A Deliberate, Disciplined Process To Achieve Aviation Units Ready For Tasking At Reduced Cost . . . Today And In The Future


NAE Mission

• “Facilitate business process transformation and foster a culture of productivity and continuous improvement enterprise-wide. Develop and advocate high potential, cross-functional enterprise initiatives and ensure enhanced performance and organizational efficiencies are not lost in the ‘white space’. Ensure savings are harvested and returned to the corporation for reallocation against other corporate Navy priorities.”


THE NAE ORGANIZATION

PLANNINGCAPT PORTER

PLANNINGCAPT PORTER

TOTAL FORCE READINESS CFT

RDML SHANNON

TOTAL FORCE READINESS CFT

RDML SHANNON

COST MGMT CFTRADM KILCLINE (CFO)

SES NEWTON

COST MGMT CFTRADM KILCLINE (CFO)

SES NEWTON

TOTAL FORCE READINESS STANDARDS & POLICY

RDML SHANNON

TOTAL FORCE READINESS STANDARDS & POLICY

RDML SHANNON

TOTAL FORCE TRAINING DEVELOPMENT &

DISTRIBUTIONRDML QUINN / SES HOLCOMB

TOTAL FORCE TRAINING DEVELOPMENT &

DISTRIBUTIONRDML QUINN / SES HOLCOMB

TOTAL FORCE SHAPINGRDML LEMMONS /

CAPT BARAN

TOTAL FORCE SHAPINGRDML LEMMONS /

CAPT BARAN

NAVRIIP CFTRADM STARLINGNAVRIIP CFTRADM STARLING

METRICSMR. COCHRAN

METRICSMR. COCHRAN

EXECUTIONCAPT MCALOON

EXECUTIONCAPT MCALOON

* NAE CORE LEADERSHIP

NAE BOARD OF DIRECTORS (BOD)

READINESS, STANDARDS & POLICY

CAPT PLATAMONE

READINESS, STANDARDS & POLICY

CAPT PLATAMONE

CARRIER READINESS TEAMCAPT DONEGAN

CARRIER READINESS TEAMCAPT DONEGAN

MAINT & SUPPLY CHAIN MGT

RADM ROESNER /RDML WILLIAMS

MAINT & SUPPLY CHAIN MGT

RADM ROESNER /RDML WILLIAMS

ACQUISITION & LIFE CYCLE SUPPORT

RADM VENLET

ACQUISITION & LIFE CYCLE SUPPORT

RADM VENLET

UPDATED: 1MAR06

VADM ZORTMAN, CNAF (CEO) * VADM VENLET, NAVAIR (COO) * LTGEN CASTELLAW, USMC AVN

RADM STARLING, CNAL * RDML SHANNON (TFR) * RADM STONE, NAVSUP

RADM BOZIN, N82 MS. HARRELL, CFFC N4/7 RADM KILCLINE, N88 (CFO) *

RADM MOFFITT, NSAWC MR. BALDERSON, DASNAIR RDML LEMMONS, RES / N43 *

MR. KUNESH, DASNLOG RDML QUINN, CNATRA RDML MCCARTHY, OPTEVFOR

VADM MORAN, NETC VADM HARVEY, NPC VADM SULLIVAN, NAVSEA VADM MCCARTHY, N4

VADM MCARTHUR, NETWARCOM VADM CONWAY, CNI RDML BACHMANN, SPAWAR


NAVICPNAVAL INVENTORY

CONTROL POINT

COMSPAWAR SPACE & NAVAL WARFARE

SYSTEMS COMMANDCNO

CHIEF OF NAVAL OPERATIONS

PEO (A)AIR ASW, ASSAULT &

SPECIAL MISSIONPROGRAMS

PEO (W)STRIKE WEAPONS &

UNMANNED AVIATION

PEO (JSF)JOINT STRIKE

FIGHTER

PROGRAMEXECUTIVE OFFICES

OPERATINGAGREEMENT

ASN (RD&A)ASSISTANT SECRETARY OF THE NAVY

(RESEARCH, DEVELOPMENT, AND ACQUISITION)

NAVAL RESERVEAIR-09R

DEP ASST CDR / DIRECTOR

NAVAL RESERVEAIR-09R

DEP ASST CDR / DIRECTOR

ORGANIZATIONAL STRUCTURE

COMNAVSUPNAVAL SUPPLY

SYSTEMS COMMAND

ECHELON IVECHELON IV

ECHELON IIIECHELON III

ECHELON IIECHELON II

PEO (T)TACTICAL AIRCRAFT

PROGRAMS

STAFFCOMPTROLLER AIR-10.0

LEGAL AIR-11.0SAFETY DIRECTOR AIR-09F

IG AIR-00GJAG AIR-00J

CMC AIR-00WCIO AIR-7.0

CTO AIR-4.0XSMALL BUSINESS AIR-09D

STAFFCOMPTROLLER AIR-10.0

LEGAL AIR-11.0SAFETY DIRECTOR AIR-09F

IG AIR-00GJAG AIR-00J

CMC AIR-00WCIO AIR-7.0

CTO AIR-4.0XSMALL BUSINESS AIR-09D

AIR-7.0CORPORATEOPERATIONS

ASST. COMMANDER

AIR-7.0CORPORATEOPERATIONS

ASST. COMMANDER

AIR-2.0CONTRACTS

ASST. COMMANDER

AIR-2.0CONTRACTS

ASST. COMMANDER

AIR-1.0PROGRAM

MANAGEMENT

ACQUISITION EXEC

AIR-1.0PROGRAM

MANAGEMENT

ACQUISITION EXEC

ADDU

NAVAL AIR WARFARE CENTERS

NAVAIR HEADQUARTERS

SLIDE PARTIALLY UPDATED 13 JUN 06

NAVAL AIR DEPOTS & LOGISTICS SUPPORT ACTIVITIES

NAVAL AIRDEPOT

(NAVAIRDEPOT)NORTH ISLAND

COMMANDING OFFICER

NAVAL AIRDEPOT

(NAVAIRDEPOT)NORTH ISLAND

COMMANDING OFFICER

NAVAL AIR PACIFICREPAIR ACTIVITY

(NAVAIRPRA)ATSUGI, JAPAN

COMMANDING OFFICER

NAVAL AIR PACIFICREPAIR ACTIVITY

(NAVAIRPRA)ATSUGI, JAPAN

COMMANDING OFFICER

NAVAL AIR MEDITERRANEAN REPAIR ACTIVITY

(NAVAIRMRA)NAPLES, ITALY

COMMANDING OFFICER

NAVAL AIR MEDITERRANEAN REPAIR ACTIVITY

(NAVAIRMRA)NAPLES, ITALY

COMMANDING OFFICER

NAVAL AIRDEPOT

(NAVAIRDEPOT)JACKSONVILLE

COMMANDING OFFICER

NAVAL AIRDEPOT

(NAVAIRDEPOT)JACKSONVILLE

COMMANDING OFFICER

NAVAL AIRDEPOT

(NAVAIRDEPOT)CHERRY POINT

COMMANDING OFFICER

NAVAL AIRDEPOT

(NAVAIRDEPOT)CHERRY POINT

COMMANDING OFFICER

NAVAL AIRTECHNICALDATA & ENG

SERVICE COMMAND(NATEC)

NORTH ISLANDCOMMANDING OFFICER

NAVAL AIRTECHNICALDATA & ENG

SERVICE COMMAND(NATEC)

NORTH ISLANDCOMMANDING OFFICER

NAVAL TEST WINGPACIFIC

PT MUGUCOMMANDER

NAVAL TEST WINGPACIFIC

PT MUGUCOMMANDER

WEAPONSDIVISION

(NAWCWD)

CHINA LAKECOMMANDER

WEAPONSDIVISION

(NAWCWD)

CHINA LAKECOMMANDER

TRAINING SYSTEMS

ORLANDOCOMMANDING OFFICER

TRAINING SYSTEMS

ORLANDOCOMMANDING OFFICER

AIRCRAFTDIVISION

(NAWCAD)

PATUXENT RIVERCOMMANDER

AIRCRAFTDIVISION

(NAWCAD)


NAVAL TEST WINGATLANTIC


NAVAL TEST WINGATLANTIC


AIR-5.0TEST &

EVALUATION

ASST. COMMANDER

AIR-5.0TEST &

EVALUATION

ASST. COMMANDER

AIR-4.0RESEARCH & ENGINEERING

ASST. COMMANDER

AIR-4.0RESEARCH & ENGINEERING

ASST. COMMANDER

AIR-6.0LOGISTICS &INDUSTRIALOPERATIONS

ASST. COMMANDER

AVIATION DEPOT COMMANDER

AIR-6.0LOGISTICS &INDUSTRIALOPERATIONS

ASST. COMMANDER

AVIATION DEPOT COMMANDER

NAVAL AVIATION ENTERPRISE

TOTAL FORCE READINESS

NAVAL AVIATION ENTERPRISE

TOTAL FORCE READINESS

DEPUTY COMMANDERAIR-00A

VICE COMMANDERAIR-09

NAVAL AIR SYSTEMS COMMAND HEADQUARTERSPATUXENT RIVER

COMMANDERAIR-00

** DUAL HATTED

**

** **

**


INTEGRATED CONCEPT OF OPERATIONSFOR LIFE CYCLE SYSTEMS MANAGEMENT

• COMPETENCIES SPANALL SITES

• LINKED BY COMMONORGANIZATION &PROCESSES

• CAPABILITY / ASSET VISIBILITY

• MULTI-DISCIPLINED• FLEET / PRODUCT

FOCUSED• FULL LIFE CYCLE

SYSTEM SUPPORT

COMPETENCY ALIGNED

ORGANIZATION (FORMAL STRUCTURE)

CHERRY POINT NAVAIRDEPOT

JACKSONVILLE NAVAIRDEPOT

ORLANDO TRAINING

NORTH ISLANDNAVAIRDEPOT, NATEC

CHINA LAKE WEAPONS

PT MUGUWEAPONS

LAKEHURST AIRCRAFT

PATUXENT RIVERNAVAIR HQ, PEOs, AIRCRAFT

NAVAIRPRA - ATSUGI, JAPAN

NAVAIRMRA - NAPLES, ITALY

DEPOTS

FL

EE

T

PEO(T)PEO(A)PEO(W)PEO(JSF)

PROGRAMEXECUTIVEOFFICERS

EXTERNALCUSTOMERS

NAWC• AIRCRAFT DIVISION• WEAPONS DIVISION

PR

OD

UC

TS

& S

ER

VIC

ES

INTEGRATED PROGRAM TEAMS

(TEAM STRUCTURE TO PERFORM WORK)

DEMAND SUPPLY

COMPETENCY ALIGNED WORKFORCE PROGRAM

MGMT

CORP OPS / COMPT / COUNSEL

CONTRACTS LOGISTICS & INDUSTRIAL

ANALYSISRESEARCH &ENGINEERING

ENTERPRISE EFFORTS

INTEGRATED PROGRAM TEAMS

TEST &EVALUATION

CUSTOMER / PRODUCT FOCUSEDDEPLOYMENT

NAVAIRTOTAL WORKFORCE

30 SEP 04

35,437

MIL 2,484CIV 24,178CSS 8,775

TOTAL WITH PEOS

36,839


SEA BASED AIRCRAFT AND SYSTEMS

MARITIME WEAPONS MARINE EXPEDITIONARY AVIATION SYSTEMS

TEST ANDEVALUATION

REPAIR /MODIFICATION

IN-SERVICE ENGR &LOGISTICS SUPPORT

TECHNOLOGY, R&D,HW / SW PRODUCTS

WE EXECUTE (ON BEHALF OF THE USER)

ACQUISITIONMANAGEMENT

OUR CORE PROCESSES . . .

PERFORM ACQUISITION MANAGEMENT FOR THE DEVELOPMENT, PRODUCTION, AND IN-SERVICE SUPPORT OF AIRCRAFT AND WEAPONS SYSTEMS

TEST AND EVALUATE AIRCRAFT, WEAPONS AND INTEGRATED SYSTEMS, SCIENCE AND TECHNOLOGY FOR TEST AND EVALUATION

PROVIDE FOR THE REPAIR AND / OR MODIFICATION OF AIRCRAFT, ENGINES, SYSTEMS AND COMPONENTS

PROVIDE FOR IN-SERVICE ENGINEERING AND LOGISTICS SUPPORT

CONDUCT EFFORTS FOCUSED ON THE ADVANCEMENT OF SCIENCE, TECHNOLOGY, RESEARCH AND DEVELOPMENT AND DELIVERY OF HARDWARE / SOFTWARE PRODUCTS

DEVELOP / MAINTAIN COMPETENCY POLICIES, PROCEDURES & SUPPORT SERVICES. FACILITATE EFFECTIVE UTILIZATION OF INFRASTRUCTURE, SECURITY, LEGAL, FINANCIAL, HUMAN & INFORMATION RESOURCES

SUPPORTOPERATIONS

AIR ASW / ASUW

AIRCREW / MAINTENANCE TRAINING SYSTEMS

OUR PRODUCTS . . .


Naval Aviation Enterprise AIRSpeed

Enterprise AIRSpeed(Lean, Six Sigma, TOC)

• Fleet-Wide Repair Sites & Processes

• Led by O-6 ESC

• O-I-D + Supply Chain

• Links to NAVRIIP

• AIR-3.3 Coord Office

Depot AIRSpeed(Lean, Six Sigma, TOC)

• Depot production processes

• Led by COs/AIR-6.0

• Rollout to 3 sites

NAVAIR AIRSpeed(Lean, Six Sigma, TOC)

• Corporate/Competency Processes and Other Productivity Initiatives

• Led by AAG/EDB Guidance

• Enabled by Core Team

• Links with Enterprise & Depot AIRSpeed

• There are FOUR AIRSPEED programs with One Goal and One Metric:

– Depot AIRSPEED which began in 1999

– Enterprise AIRSPEED which began in 2003

– NAVAIR AIRSPEED which began in 2004

– NAVICP AIRSPEED which began in 2005

• All four drive productivity through process improvement using

industry-proven tools, and help establish a self-sustaining culture

of continuous improvement.

NAVICP AIRSpeed(Lean, Six Sigma, TOC)

• Corporate/Competency Processes and Other Productivity Initiatives

• Led by NAVSUP Guidance

• Enabled by Deployment Team

• Links with Enterprise & Depot AIRSpeed


Corporate Deployment ChampionsRDML Mark Skinner CDC

Stu Young (SES) Executive DirectorCapt. Bob Novak PM/Dale Moore (GS-15) Dep. CDC

Capt. Mike Stabile

Core Team

Phil Zalesak JJ Perryman

Bobby Jenkins Monique Johnson

Allen Heim Susanne Johnson

Project RealizationJJ Perryman

Training Coordination &

SupportAllen Heim

Candidate Selection & Retention

Barb Ward/Allen Heim

Financial ControlTBD

Deployment Champions•AIR 1.0: Ken Mcilhenney•AIR 2.0: Pam Gray•AIR 3.0/6.0: Joe Incorvia

Denise Gontarek•AIR 4.0 Denise Breckon•AIR 5.0 Rick Quade•AIR 7.0/11.0: Chuck Cathcart•AIR 10.0/7.8: Joel Carey/

Chris Cummings•CIO: Carol Ecklund•PEO(A): Glenn Perryman•PEO(T): Randy Allen•PEO(W): Audie Dennis•JSF: TBD

Black Belts & Black Belt Candidates

MBB SupportGeorge Group

Consultants

Project Mgmt and LSS Deployment

TrackingJJ Perryman/Dick

Logue

Communications & Change Mgmt

Phil Zalesak

Deployment Team Activities: Develop recommendations for deployment approach Execute on-going deployment of Lean Six Sigma Develop and manage Lean Six Sigma results objectives, guidelines, and measures Establish and manage Lean Six Sigma management processes Ensure integration between LSS and other NAVAIR productivity efforts Manage internal and external NAVAIR Lean Six Sigma communications

NAVAIR AIRSpeed Deployment Team


NAVAIR AIRSpeed Roles

(Updated for FY07)

All Employees• Understand vision• Apply concepts to

their job and work area

• Owns vision, direction, integration, business results

• Leads change

• Project owner• Implements solutions• Owns financial results• Part time as part of job• Develops Project

Charter

• Participate on Black Belt teams and/or lead projects

• Part time on projects

• Provide project-specific support

• Can be Yellow or Green Belt and includes Financial Representation

• Part time on projects

• Lead organizational performance improvement

• Prioritize projects• Full time

assignment

DeploymentDeploymentChampionsChampions

ProjectProjectSponsorsSponsors

Project TeamProject TeamMembersMembers

ExecutiveExecutiveLeadershipLeadership

Green BeltsGreen Belts

• Train Black Belts/Green Belts• Coach Black Belts/Green

Belts• Lead Complex/Large projects • Full-time position

MasterMasterBlack BeltsBlack Belts

• Execute AIRSpeed projects • Train and coach Project

Teams• Full-time assignment

Black BeltsBlack Belts

AIRSpeed AIRSpeed Core TeamCore Team

•Enables successful deployment / execution•Develops and reports metrics•Coordinates training •Leads change management and internal / external cross-communication

• Manage Value Stream performance improvement

• Prioritize VS projects• Full time assignment

Value StreamValue StreamManagersManagers

New Role Evolving


NAVAIR AIRSpeed Implementation Process 2004 2005

YEAR 1 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG

BENCHMARKING & DEPLOYMENT DESIGN

EXECUTIVE ENGAGEMENT

SELECTION OF CHAMPIONS, BLACK BELTS AND SPONSORS

PROJECT IDENTIFICATION & SELECTION

MOBILIZATION

BLACK BELT LEAN SIX SIGMA WAVES

BENEFITS

WAVE 1

WAVE 3WAVE 4

WAVE 5

WAVE 6

INIT

IAT

ION

RE

SO

UR

CE

&

PR

OJ

EC

T

SE

LE

CT

ION

IMP

LE

ME

NT

AT

ION

&

EV

OL

UT

ION

• • • •

• • • •

• • • •

• • • •

$ $ $ $ $

• • • •

WAVE 2

ONGOING REVIEWS, INVOLVEMENT AND COMMUNICATION

ONGOING PROJECT PORTFOLIO MANAGEMENT BY CHAMPIONS / MASTER BLACK BELTS

LEADERSHIP REVIEWS OF BLACK BELT PROJECTS AND PROCESSES

PROJECT SPONSORSHIP WORKSHOPS

DEPLOYMENT WORKSHOPS &

LEADERSHIP COORDINATION

EXECUTIVE LAUNCH

REFERENCE: LEAN SIX SIGMA, BY MICHAEL L. GEORGE

PERSONNEL IDENTIFICATION & ROLE-SPECIFIC TRAINING

BB PROJECT ID, PROJECT CHARTERING & SPONSORING

• • • •


WHAT WE EXPECT

• Eliminate non-value added activities.

• Reduce cycle times.

• Improve quality and productivity.

• Develop a workforce with the right skills, focused on the right workload, at the right time, at the right cost, to deliver the right capability to the Warfighter.

• A fundamental cultural transformation that will help our workforce become more efficient and more productive, while facilitating the cost-wise decisions that will help us deliver Fleet aircraft ready for tasking at reduced cost.


NAVAIR AIRSpeedService/Transactional

EnvironmentsUnique Attributes/Differences

• Fundamentally Knowledge-based “Creative” Work

• Value-Added Less Tangible/Quantifiable

• More Difficult to “Walk-the-Process” than on the shop floor

• Bounded within: Data, Information, Knowledge Domains

• Highly Complex & Inter-dependent “adhoc” Social Networks

• Strongly IT dependent/facilitated/institutionalized

– Collaboration, databases/repositories, work flow mgmt etc.

• High Variance: Dependent on Knowledge Capital

– Learning, experience, sharing, culture, knowledge mgmt etc.


VALUE STREAMLIFE CYCLE MANAGEMENT

ACQUISITION MANAGEMENT

S&T, R&D, HARDWARE / SOFTWARE PRODUCTS / DESIGN

TEST AND EVALUATION

IN-SERVICE ENGINEERING & LOGISTICS SUPPORT

REPAIR / MODIFICATIONS

TRANSLATE AND ANALYZE MISSION REQUIREMENTS, DEVELOP ACQUISITION STRATEGY, CONTRACT AWARD / MANAGEMENT, PROGRAM MANAGEMENT OVER LIFE CYCLE

PLAN AND CONDUCT DEVELOPMENTAL TESTS; SUPPORT OPERATIONAL TESTS

PLAN / MANAGE / EXECUTE REPAIRS AND MODIFICATION PROJECTS

PROVIDE NEW WARFIGHTING TECHNOLOGY AND SYSTEMS ANALYZE SYSTEM DATA, DETERMINE / IMPLEMENT CORRECTIVE ACTIONS TO SUSTAIN IN-SERVICE SYSTEMS

AND TO ENSURE SAFETY, AFFORDABILITY, AND AVAILABILITY; PERFORM ENGINEERING INVESTIGATIONS,

ENGINEERING CHANGE PROPOSALS

OPERATIONS &SUPPORT

PRODUCTION &DEPLOYMENT

SYSTEM DEVELOPMENT& DEMONSTRATION

CONCEPT REFINEMENT

& TECHNOLOGYDEVELOPMENT

FUTURE READINESS CURRENT READINESS

CORPORATE OPERATIONS

CO

RE

FU

NC

TIO

NS

/P

RO

CE

SS

ES

S&T

RQMTS /RISKSFROMFLEET /OPNAV

HEADQUARTERS / PEOsWARFARE CENTERS / DEPOTS


Common Process Design Issues

TASK

METRICS

TASK

METRICS

DECISIONPOINTS

REVIEW/APPROVAL

POINTS

Scope is not clearly defined or

bounded

External Dependencies/Undefined Linkages

Inadequate Focus on critical objectives

Emphasis onInspection &

Correction vicePrevention

Poorly Documented/ Defined Procedures

Lack of Performance Measures/Tollgates

Unclear/UndefinedResponsibilities &

“Checklist” ExpectationsUpfront

INPUTS OUTPUTS

DuplicatedActivities

Excess Complexity:Lack of Standardization

& Reuse

Nonvalue Added activities vice

CVA

Poor Understanding of Customer

RQMTS

Feedback Loop

Ref: Enterprise Process Mapping, C. Cobb


TYPICAL PROCESS IMPROVEMENT

EXPERIENCE W/O LSS1. Problems are not well “defined,” scoped or

bounded; typically a “boil-the-ocean” or “grand slam” approach & challenges are too big and take too long to effectively tackle

2. Data gathering or “measurement” is rarely or poorly conducted around root causes of specific problems

3. Limited “analysis” tools to available

4. Limited “improvement” tools available to develop and implement desired changes

5. Little or no follow-through for institutional lock-in and “control” of required changes


LSS “DMAIC” METHODOLOGY(the scientific “data driven” method to improve existing

processes)

1. DEFINE: Properly define, decompose and scope the problem to a manageable size for a small team to tackle

2. MEASURE: Gather pertinent, useful, statistically significant data to address the specific problem

3. ANALYZE: Conduct analysis on the data to understand the well-defined problem and gain insights into specific solution recommendations

4. IMPROVE: Design and prototype improvements

5. CONTROL: Lock-in improvements w/metrics, SOPs, Institutionalization and Change Management


AIRSpeed Project Development Process Success Recipe: Right Project, Right Leader, Right Support and Right

Resources

12/15/2004 10:527.1.1_DBGEDB_BRIEF_TEMPLATE_22DEC03.PPT 15

The Process for Identifying Opportunities and Selecting Lean Six Sigma Projects

Identify value levers in the business

• Strategic

• Financial

• Customer

• Process

Prioritize value levers

Translate Value Levers into Opportunity Areas

Translate Opportunity Areas into Project Ideas

Score each project as High / Med / Low for Benefit and Effort

Fill in Benefit / Effort Matrix

Review plotted results

Select highest priority opportunities for further analysis

Assign opportunities to project sponsors for project definition

Complete Draft Project Charters

Evaluate projects using Evaluation Criteria

Update Benefit / Effort Matrix

Review plotted results

Prioritize projects

Schedule project launches based on resource availability

Identify Value Drivers/ Levers

1Identify Project Opportunities

2Screen Initial List of Opportunities

3Scope and Define Projects

4Prioritize List of Defined Projects

5

BenefitApproach

Calculations

Net Benefit

Assumptions

EffortPeopl e Required

Team Member Role

% of Time

on Project

Proposed

Duration

(in weeks)

Total FTE

Weeks

1 -

2 -

3 -

4 - 5 -

6 -

7 -

8 -

9 -

10 -

-

Project Duration weeks

One Time Costs

Risks

BenefitApproach

Calculations

Net Benefit

Assumptions

EffortPeopl e Required

Team Member Role

% of Time

on Project

Proposed

Duration

(in weeks)

Total FTE

Weeks

1 -

2 -

3 -

4 - 5 -

6 -

7 -

8 -

9 -

10 -

-

Project Duration weeks

One Time Costs

Risks

Simple PDF Templat e Revised 10-24-00

Project Namepage 1 of 2

Problem Statement

- include the 4 basic elements : What , Where, When, Extent

- make quant ifiable whenever possible

Scope StatementScope In

Scope Out

Key MeasuresMeasure Name I/P/O Exists Baseline Notes

1

2

3

4

5

6

7

8

9

10

Simple PDF Templat e Revised 10-24-00

Project Namepage 1 of 2

Problem Statement

- include the 4 basic elements : What , Where, When, Extent

- make quant ifiable whenever possible

Scope StatementScope In

Scope Out

Key MeasuresMeasure Name I/P/O Exists Baseline Notes

1

2

3

4

5

6

7

8

9

10

Project CharterE f f o r t

B e n e f i t

H ig hL o w M e d

Hig

hL

ow

Me

dH

igh

Lo

wM

ed

1 31 3

66

1 51 5

11 88

33

1 21 2

99

44

77

1 71 7

1 41 4221 1

5

1 01 0

1 61 6

AIRSpeed PROJECTINPUTS

ACQ CFT Value Stream

Mapping

Project ID & Selection Workshop

Project Sponsor Training

Grass Roots Ideas/MyIdea Network

5 STEP PROJECT SELECTION PROCESS

BB

MATCHING PROJECTSELECTION

W/BB (or GB) & FORMING TEAM

BLACK BELTDMAIC PROJECT

TRAINING/EXECUTION

TA D/M M/A A I/C V

YB GB

ST YB

PS

TOLLGATES

D M A I C V

1 2 3 4 5

GGCHARTER

APPROVAL

Challenge Areas:•Generating Enough Well-Scoped Projects w/Type I Savings•Following the 5 Step Process to Select Project Portfolios•Engaging Project Sponsors in Charter Devmt, Tollgates & Process Mgmt•Linking Savings to Intelligent Targets/SES Accountabilities•Forming Teams (BB) and Committing Team Members (PS)•BB Project Mgmt: Scheduling Events/Reviews, Team Devmt, Data Mining, Mastering LSS & IT Tools•The “Follow-Through” on Implementation & Control for Type I/II Savings Realization

REALIZATION


What Is High Impact Core Value Stream Mapping?

• HICVS Analysis Is A Top-Down Approach Tying Specific Activities Occurring Along a Value Stream for a Product or Product Family

• HICVS Mapping And Analysis Provides An End-to-End Value Stream View To Effectively Identify And Address Barriers And Constraints To Program Success

• Value Stream Analysis Provides A Common Framework For Decomposition And “Drill-Down” To Executable Projects

– Addresses Systemic Problems

– Attack Tactical Process Problems

• Results Map Back To Command Objectives


• SECNAV Directed The PEOs & SYSCOMs To Conduct High Impact Core Value Stream Mapping

• NAVAIR’s HICVS Approach Approved By EDB On 30 October 2006• PEO’s & SYSCOMs Report Monthly Status To SECNAV Via

ASN(RDA) On Progress And Results Of LSS Training, Projects And HICVS Activity

• Ultimate Goal Is To Improve Program Execution

PHASE I YEAR 1CY06

PHASE II YEAR 2CY07

PHASE III YEAR 3CY08

LEADERSHIP

• HIGH IMPACT CORE VALUE STREAMS AND ID’D, MAPPED, AND ALL APPLICABLE PERSONNEL ARE PREPARED TO DMAIC

1) NAVAIR VALUE STREAMS MAPPED / SINGLE PROCESS OWNERS IDENTIFIED; NAE HIGH LEVEL VALUE STREAMS MAPPED BY ACQ / MSCM / SCM / TFR CFTS

2) APPLY AIRSpeed CPI TOOLS TO NAE / NAVAIR HIGH LEVEL VALUE STREAMS TO ADDRESS CURRENT / FUTURE READINESS IMPROVEMENT OPPORTUNITIES

• HIGH IMPACT CORE VALUE STREAMS ARE DMAIC

1) CONTINUE REFINEMENT OF NAVAIR / NAE STRATEGIC “BUSINESS YS” TO FURTHER INTEGRATE CROSS-FUNCTIONAL HORIZONTAL IMPROVEMENT OPPORTUNITIES

• HIGH IMPACT CORE VALUE STREAMS ARE REVISITED

1) EXECUTE CPI TO ADDRESS NAVAIR / NAE STRATEGIC BUSINESS YS

Why Are We Conducting High Impact Core Value Stream

Analysis?

NAVAIR / AVIATION PEO LEAN SIX SIGMA 3-YEAR ACTION PLAN


OPERATIONS &SUPPORT


SYSTEM DEVELOPMENT & DEMONSTRATION

CONCEPT & TECHNOLOGYDEVELOPMENT

Navy and Marine Corps Weapons Systems HICVS

WarfighterRequirements

ResearchDevelopment and

AcquisitionSustainability and

Disposal

NAVAIR / PEO HICVS

Current Readiness CFTFuture Capability CFT

FLEET

JCIDS/JROC

DARPA

ONR

SBIR

OTHERS

N81

N82

N85

N86

N87

N88

AIR

2.0

AIR

4.0

AIR

5.0

AIR

6.0

AIR

7.0

INDUSTRY

AIR

6.0

OPNAV $24 BILLIONFLEET $16

BILLION

CNAF/FRC

FLEET

15,000 ~ 17,000 MIL/GOVT/CSS~165,000 – 167,000

MIL/GOVT/CSS

25 MBBs / 140 BBs 48 MBBs / 363 BBs

Total Force Readiness CFT

NAE CFT / HICVS ALIGNMENT

AIR

1.0


High Impact Core Value Stream Development Process

OPERATIONS &SUPPORT




Generic High Impact Core Value Stream of Acquisition Process from Concept Decision to IOC

DAU ACQ Map + ALCS CFT Inputs

One Single Integrated “Complexity” HICVS map:•ID Variation

•Apply Available Data• ID Critical Nodes

+ PEO/DC SME Inputs + NAVAIR/GG MBB Skills


High Impact Core Value Stream Development Process

Comments Below

Step Title Ranking ScoreSchedule to IOCDeliver Required CapabilityCost Growth24 Acquisition Plan required to support Contract AM T T3 0.75

31 PPC AM AM4 1

35 Clinger-Cohen Act Documents Prepared (including IT Strategy) AM 1-9 1-9 2 0.5 1-9 1-9

41 Draft Clinger-Cohen Act Compliance (AIR-7.2) IT 1-9 1-9 2 0.5

44 Initial Acquisition Strategy Developed T, W, 1-9 T3, W3, 1-9 2 2 T, W, 1-9 T, W T, W, 1-9

45 PPC AM AM4 1 AM AM

48 Acquisition Program Baseline 1-2, 1-9 1-2 1 0.25 1-2, 1-9 1-2, 1-9 1-2, 1-9

49 C4 Info Support Plan AM, 1-9 AM4, 1-9 2 1.5 AM, 1-9 AM AM, 1-9

50 Program Protection Plan (PPP) AM AM3 0.75 AM AM AM

51 Clinger-Cohen Act 1-9 1-9 2 0.5 1-9 1-9

52 Information Assurance Strategy 1-2, 1-9 1-9 1 0.25 1-2, 1-9 1-9

Pre MS-B SRR T, W T4, W1 0.5

59 Program Protection Plan Update (PPP) AM AM3 0.75 AM AM

62 PPC AM AM4 1

67 Information Assurance Strategy Completed 1-9 1-9 2 0.5 1-9 AS

75 PPC AM AM4 1

Market Research T,W W3 0.75

88 Life Cycle Cost Estimate 1-2 1-2 5 1.25

90 Tech Readiness Assessment 1-2 1-2 4 1 1-2

92 Systems Engineering Plan Update AM, AS AM/AS-2 0.5 AM

93 Systems Engineering Plan Update AM, AS AM/AS2 0.5 AS AM, AS

94 Systems Requirements Review T, W T1, W1 0.5 W W W

99 Critical Design Review (CDR) 4.1 AS, W, 1-2, 1-9 AS5, W4, 1-2 4 3.25 1-2, 1-9 1-2 W

102a SPEC/SOW Updates T T4 1 T T T

107 ALSP Initial Product Support Strategy Developed W W4 1 W

110 Core Logistic Analysis 1-9 1-9 2 0.5 1.8 1.9 1.9

135 Competitive SubProcess AM 1-2 1-2 3 0.75

148 Dev T&E (Tes Report) Operational Assessment T, 1-2 T2, 1-2 5 1.75

149 TEMP Update 1-9 1-9 2 0.5 1-9

157 Initial Capabilities Document (ICD) Developed - N78 1-9 1-9 2 0.5 1-9 1-9 1-9

160 Key Performance Parameters Identified T T4 1

162 Capabilities Development Document (CDD) Initiated AM, W, 1-2, 1-9 AM1, W2, 1-2/1-9 2 1.25 AM, W, 1-2, 1-9 W, 12 AM, W, 1-9

163 Component Cost Assessment Completed (CAIG) AM, AS W AM/AS3, W4 1.5 AM AM, W

170 Non-Advocate Review (NAR) 1-9 1-9 2 0.5 1-9 1-9

171 Capabilities Development Document Approved AM AM1 0.25 AM AM

176 Capability Production Document Initiated AM AM1 0.25

180 Component Cost Assessment Completed (CAIG) AM, AS AM/AS3 1.5

183 Capability Production Document Approved AM AM1 0.25

186 C4ISP NETWARCOM & 7.2 1-9 1-9 2 0.5 1-9 1-9

190 Component Cost Assessment Completed (CAIG) AM,. AS AM/AS3 1.5

193 Independent Initial Operational Test & Evaluation Performed 1-2, 1-9 1-9 2 0.5 1-2, 1-9 1-9 1-2

Sh

ape

ID

ID START & END Point

for Progra

X if NOT

Conducted Critical Node

Significant Impact Only

Prioritized critical node list

Integrated HICVS map, including 224 identified nodes

The 41 prioritized critical nodes were narrowed to 8 focus areas based on PEO prioritization, grouping of related nodes, and degree of commonality between PEOs. PEO staff members then evaluated each for benefit, likelihood of success, interdependencies

During the individual program family HICVS mapping event, the PEO staffs identified & prioritized nodes that impacted their ability to deliver to the KPPs, on-time, and on budget

2/2/2007 11:53 AMnovak Fy07 draft AIRSpeed deployment planning. ppt 17

High Impact Core Value Stream (HICVS) Project Charter(Focus Area – Internal & External Requirements)

Problem: Externally generated additions and changes to

requirements (volatility) impacts programs’ ability to “lock down” internal requirements in a timely manner within acquisition process … resulting in budget and schedule pressures and risk balancing.

High-level requirements volatility results in disconnects within lower level internally “derived”requirements between what Navy wants and what contractors have bid

Problem Statement

Draft POA&M

Business Impact

Team Resources

Existing gaps in requirements definition have significant impacts on system’s final development costs, system’s ability to meet a given IOC date, and its ability to meet its milestone schedule.

Actions/Milestones Proposed date

Detail POA&M complete 26 Jan

Launch decision 12 Feb

Begin measurements baseline effort 19 Feb

N88 alignment complete 1 Mar

Analyze effort complete TBD

Individual Project Launches TBD

• Process Owners: RADM Clingan (N88)

• Project Sponsor (Flag/SES): RDML Skinner

• Team Lead: Glenn Perryman, PEO(A). Lead for Internal scope)Team Lead: Dale Moore, AIRSpeed DC, Lead for External scope

• AIRSpeed Support: Barry Barefoot, Hundley Elliotte (GG), Walt Mores (GG), Rob Sharples (GG), Greg Collins (GG), Bill Kelleher (TG), other NAVAIR BBs/GBs TBD

• Stakeholder SMEs: All PEOs, N88, AIR-1.0, 4.0, 5.0. 7.8, 7.10,

Description: External (N88 & JCIDS) and internal requirements volatility impact execution of programs in terms of schedule, performance, and cost


High Impact Core Value Stream (HICVS) Project Charter(Focus Area – Pre-MS B Acquisition Strategy and Planning)

Problem:The Acquisition Strategy & Planning process is neither

consistently nor effectively executed in a timely manner. Actual documentation tends to be an after the fact formality.

A significant objective of the process is improved understanding of market capability to provide products that meet program requirements. The current process lacks value-add depth and can be treated as a “check-in-the-box”, resulting in programs acquiring deficient capabilities or planning procurement of capabilities that are not available in the marketplace in the required timeframe.

Problem Statement

Draft POA&M

Business Impact

Team Resources

The strategy for obtaining a capability requirement has significant impacts on the system’s final development costs, the systems ability to meet a given IOC date, and the ability of the system to meet its milestone schedule.



Socialization complete 4 Feb

Launch Decision 12 Feb

Collect and translate VOC

Define key success measures

Characterize current state process

Baseline current performance

Project Sponsor/Process Owner Review

• Process Owner: Dennis Chapman AIR 1.1

• Project Sponsor (Flag/SES): Stephanie Easter

• Team Lead: Ken McIlhenny (AIR-1.0)

• AIRSpeed Support: Mike Meaney, Tim Collins (GG), Rusty Croom(GG), other BBs/GBs: TBD

• Other Stakeholder SMEs: All 3 PEOs, N88, AIR-1.0, 2.0, 4.0, 6.0, 7.8

Description: This area focuses on the process of standing up a sound acquisition program. Prior to MS B, the development of the Acquisition plan & strategy is accomplished over a span of time that eventually leads to a procurement strategy and program structure for acquiring a given set of requirements. The focus area is not about creating a DOD 5000 compliant AP or AS.


High Impact Core Value Stream (HICVS) Project Charter(Focus Area – Accurate Program Budgeting/Costs)

Problem: Early program budgets don't reflect true program costs

and are not fully understood until well after system becomes a program and then has difficulty in getting modified to reflect true program execution costs. Requirements creep causes increased costs not reflected in budget

Early budget estimates may be based on “best case scenarios”, poor requirements baselines or may not have used cost estimating best practices

Actual programs costs exceed programs and independent estimates

Problem Statement

Draft POA&M

Business Impact

Team Resources

Impacts: Existing gaps in requirements definition have significant impacts on system’s final development costs, system’s ability to meet a given IOC date, program’s ability to meet its milestone schedule and control cost growth. The difficulty to control program costs and keep within program cost estimates and budget





Begin deep dive analyses

Opportunity ID workshop

Charter projects / schedule PISWs

• Process Owner: Dave Burgess, PEOs

• Project Sponsor (Flag/SES): RDML Eastburg

• Team Lead: Audie Dennis, PEO(W) w/ Denise Breckon (AIR-4.0)

• AIRSpeed Support: Randy Stone, Greg Collins (GG), Mike Higgins (GG), Other NAVAIR BBs/GBs TBD.

• Other Stakeholders SMEs: All 3 PEOs, Chris Cummings (AIR-10.0), AIR-4.2, AIR-3.0, AIR-4.0, AIR-5.0

Description: Process of determining and budgeting to a reasonable cost estimate that is aligned with the budgeting and requirements processes that allows sufficient accuracy to manageable risk throughout the program develop and procurement process.


High Impact Core Value Stream (HICVS) Project Charter(Focus Area – Systems Requirements Review (SRR) & Critical Design Review (CDR) Execution)

Requirements not well understood prior to RFP release

Quality of the reviews

Short cuts made due to optimism

Level of insight at contractor & subcontractor

The depth and standardization of the reviews to cover the required material to the correct depth for program insight and Government oversight.

Reviews may be schedule-driven vs event driven

Problem Statement

Draft POA&M

Business Impact

Team Resources

Systems Engineering Technical Reviews have significant impacts on the system’s final development costs, the systems ability to meet a given IOC date, and the ability of the system to meet its milestone schedule.





Collect and translate VOC

Define key success measures

Characterize current state process

Baseline current performance

Project Sponsor/Process Owner Review

• Process Owners: Capt. Carlson, John Fischer, Dave Cohen, Terry Clark 4.1

• Project Sponsor (Flag/SES): Jesse McCurdy, 4.0

• Team Lead: Randy Allen, PEO(T) with Denise Breckon (AIR-4.0)

• AIRSpeed Support: Dave Parker, Greg Collins (GG), Michael Higgins (GG), other NAVAIR BBs/GBs: TBD

• Stakeholder SMEs: AIR-1.0, AIR-2.0, AIR-3.0, AIR-5.0, Contractors, All 3 PEOs

Description: This focus area covers the Systems Engineering Technical Review processes, with particular emphasis on the SRR and the CDR. The DoD 5000 requires all CDRs to be complete prior to the DRR. Both reviews tend to have a significant program management review function as well. Formal descriptions of SETR, SRR & CDR are provided by the Defense Acquisition Deskbook Systems Engineering Guide.

Focus area evaluation

Top four focus areas 4-Quad developed


The “HICVS” View

OPERATIONS &SUPPORT




Acquisition High Impact Core Value Stream

INPUTS• RQMTS• BUDGET• AP

OUTPUT METRICS:• PRODUCT(s) • COST• CYCLE TIME• QUALITY• SAFETY

Identified Processes to “Improve,” “Replicate” and “Control”

Roadmap Thrust Areas

S&T Innovation

StrategicData AnalysisEVM, HICVS,S&T, SCM, T&E BOD

FC CFT Pilots &StrategicThrusts

EVM

EVM

S&T

S&T

T&E BODHICVS

HICVS

SCM

SCM

EVM

EVMHICVS

S&TPR-09/IWP

PR-09/IWP

ERPABC

ERPABC


HICVS: “Clipping the Peaks” of EVM Drivers & Productivity Barriers/Degraders

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22……224

Total Cost ($) Impact

Round 1

Round 2

Round 3

ContinuousImprovement

DrivingDown

Total Cost DriversHICVS Processes

HICVS Focus Areas

HICVSVOC/DATA

EVMRed Programs T&E BOD

S&T Innovation Systems Impact

ERP ABCLabor Today

PR09 IWPLabor Budgeted

SCMNAE Costs


Acquisition Program Cost Growth

“Attacking the Cost Challenges with a Balanced Focus for

Today and Tomorrow”

+$BBow Wave

+ $M/day Cost GrowthAcquisition

Costs(FYDP)

PEO/PMARed Program Prototypes

Operational Focus“Get Well” Plans

HICVSStrategic/Systemic Focus

“Root Cause Plans”

Time

Today

BudgetBaseline


HICVS Productivity Improvement Process

IntegratedAnalysis

StrategicThrust Area 1

StrategicThrust Area 2

PEO/PMAGet-Well

Pilots

DECOMPOSITION

Project

Project

Project

Project

Project

Project

Project

Project

Project

Project

Project

ApprovedExecutionRoadmaps

RESULTS

Codify, Control & Train Process Updates

PrioritizedThrust Areas

Project Portfolios

(BB/GB/Kaizen)

Benefit/Effort

Assessment

B

Project

B

B

E

E

E

HICVS

EVM

T&E BOD

S&T

SCM

Input Data

HICVSConfiguration

Control

Replicate Successes

HICVS/AIRSpeed

ProjectExecution

ERP ABC

PR09IWP


NAE AIRSpeed – The Power of ReplicationT

ota

l Sav

ing

s $

x

Project #1 Savings X

200X

150X

100X

50X

10XProject 1-5 Savings 5X

Cumulative Project

Execution Costs

AIRSpeed’s return on investmentincreases rapidly as replication

expands

AIRSpeed’s return on investmentincreases rapidly as replication

expandsCumulative

Project SavingsSavings/Project ~ Same

NAVAIRPEO/PMA

Project

ReplicateCost Est

Project AcrossPMA’s

Feedback Loop for continuous improvementincreases savings from

existing projects over time

ReplicateCost Est Projectwith additional

Industry

ReplicateCost Est

Project AcrossPEO’s

ReplicateCost Est Projectwith additional

SYSCOMs


NAE AIRSpeed INDUSTRY/GOVERNMENT COLLABORATIVE OPPORTUNITIES AT THE SEAMS“ATTACKING THE NON VALUE-ADDED WORK/PROCESSES

BETWEEN THE CUSTOMER & THE SUPPLY CHAIN”

OPERATIONS &SUPPORT




GOVMTINPUTS

• RQMTS• VOC• VOS• VOP• VOB

OPERATIONS &SUPPORT




INDUSTRYINPUTS

• RQMTS• VOC• VOS• VOP• VOB

ACQUISITION PROGRAM

VALUE STREAM OUTPUTS:

• COST• CYCLE TIME

• QUALITY• SAFETY

ACQUISITION LIFE CYCLE VALUE STREAM PROCESS IMPROVEMENT

“SWEET SPOT” FOR HIGH VALUE-ADD LSS/TOC

UNDERSTANDING & IMPROVING THE AEROSPACE END-TO-END “VALUE CHAIN”: FROM REQUIREMENTS & INNOVATION TO PRODUCT DELIVERY AND SUSTAINMENT


AIRSpeed Deployment Management System(PowerSteering)

Initial Project List (Future Phase)

Project Charter Problem Statement,

Goal Statement

Project Selected & Team assigned to

project

Project Status, Deliverables &

Dates

Project Documents

Dashboards & Reports

Financial & Non-Financial Metric

Tracking

Idea Tracking

Add Benefits & Effort


AIRSpeed Systems & Tools Evolution

ADMS

iGrafx

ERP

LSS Curriculum

Crystal Ball

Minitab

DiscreteLSS Systems

ADMS

iGrafx

ERP

LSS Curriculum

Crystal Ball

Minitab

Interfaced LSS Systems

(in work)

ADMS

iGrafx

ERP

LSS Curriculum

Crystal Ball

Minitab

Integrated LSS Systems

(conceptualizing)

Foundation: High Impact Core Value Stream Mgmt & Process Owner Leadership


Top Deployment Challenges• Cultural Transformation & Change Management

– Significant “Information/Knowledge Diffusion” Challenge: Tools & Methodologies

– Ensuring Alignment/Engagement, Follow-through & Constancy of Purpose

– Driving Standardization & Re-use coupled with Continuous Improvement

– Thinking in terms of Value Streams vice Organizational Stovepipes

• Workforce– “Breaking Lock” on Embedded Behaviors & NVA Activity Awareness

– Work-in-Progress (WIP) mgmt re. “Little’s Law” & Balancing Workload Priorities

– Project Sponsor/ Team Member Availability on Project Teams

• LSS/TOC in the Transactional “Knowledge” Environment vs. Manufacturing– Deployment in the Federal Workplace – Training Alignment & Tailoring

• Inefficient Project Identification– General Lack of Process Related Data: Cost, Cycle Time, Quality

– Business Y/Strategic “North Stars” Difficult to Determine: Step 1 to Step 2 Translation

• Deployment Management System (DMS)– Deploying DMS capabilities across the NAE

• AIRSpeed Infrastructure Institutionalization– Organization Structure/Governance, Financial Strategies, NAE AIRSpeed Activities

• Institutionalized Replication Strategy


Areas of Emphasis

• Commit to the Change – Make it Last Through Leadership Turnover– Include in Performance Evaluations / FITREPs

– Incentivize Group Performance Goals for Senior Leadership

– Include Productivity Improvement Training in Leadership Development Programs

• Participate in the Effort– Provide Executive Sponsorship for Projects

– Get Trained as a Green Belt

– Demand Data and Metrics …… Stamp Out Obfuscation

• Provide Resources - Vision Without Money Equals Hallucination– Provide Stable Funding To Ensure Success

– Demand Validated Return on Investment

Leadership Commitment And Accountability Make Cultural Change A Reality


DoN Lean Six Sigma (LSS) Continuous Process Improvement Summary

• DoN is fully committed to deployment of LSS CPI

– Extensive 2 day SECNAV Leadership training (>1300)

– SECNAV Monthly Metrics Reporting

– SECNAV Monthly Strategic Management Reviews

– Tracking Progress to 3 Year LSS CPI POA&M

• LSS CPI contains all the necessary tools

– Lean, Six Sigma, Theory of Constraints

– Leveraging enabling IT

– Baselining DMAICV for existing processes

– Leveraging High Impact Core Value Streams

• Self-Sustainment to drive institutionalization & results

• Continuous Process Improvement for Continuous Process Improvement – Maximize ROIC


BACKGROUND

The DoN’s LSS CPI consists of methodologies and tools, and associated knowledge, skills and abilities (e.g., Strategic Planning, Communications and Change Management, Knowledge Management, Information Technology Management, Quality Management, and Supply Chain Management etc.).

This procurement will be processed as an unrestricted, competitive, performance-based, Fixed Price Indefinite-Delivery-Indefinite-Quantity (IDIQ) contract with Time-and-Material provisions. This contract is for 60 months during which time orders may be placed.


BOTTOM LINE

The DoN Wants:

1. “Best-of-the-Best” LSS CPI Knowledge/Capabilities

2. Fully Integrated LSS CPI Organizational System

3. Self-Sustainment & Cultural Transformation

4. Innovation for LSS CPI Transformation Acceleration

5. DoN Enterprise LSS/CPI Commonality

6. Maximized LSS CPI Value Proposition

7. Quality, Speed, Cost & Safety Results


DoN Lean Six Sigma (LSS) Continuous Process Improvement (CPI)

Go to: a) www.navair.navy.mil

b) DOING BUSINESS WITH US

c) OPEN SOLICITATIONS

d) N00421-07-R-0012DoN LSS CPI

http://www.navair.navy.mil/

QUESTIONS?


Contact Information

Dale L. [email protected]

301-342-8000