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GEN Kern’s Memo, 20 Aug 02 – Creating
Lean—A Mgmt Tool for the Future
The Beginning….
“…there is
potential for
great progress.”
To put out a fire?
WHY DO LEAN EVENTS?
For performance appraisals!
Misconception!!
REAL REASON!!
IMPROVE QUALITY
REDUCE COST
QUICKER DELIVERY
FOR THE WARFIGHTER
Put picture of soldiers here!
Reduce costs
VISUAL MANAGEMENT
BEFORE AFTER
ANDON LIGHT
STANDARD WORK
PROCESS TOOLS
# of black belts
# of green belts
# employees trained
Strategic Plan
CO on Lean Event
CPI for Leaders
Strong Leadership Support
Employee buy-in
New Employees
Incentives
Effective Lean Events 5 Simple Questions
Group Award
1. Why are we doing this event?
2. What metric/problem do we hope to improve/solve via this
event?
3. What’s the baseline of the condition?
4. By how much do we expect to see that metric/condition
improve as a result of this event?
5. What data source will we measure ourselves against?
Monitor progress
Ensure sustainment of improvements
Level 1: 45 Day Follow-up Meeting
Level 2: 30, 60 and 180 day audits
Level 3: Monthly Lean Sustainment
Command Reviews
One of our most effective lines of attack
to ensure we move the needle on our
metrics is:
Lean Sustainment
Command Reviews
Monthly Meetings
Command Group & Directors
Review Quad Charts & Action Plans of VSAs
LEAN SUSTAINMENT COMMAND REVIEWS
Quality
Repair Cycle Time
Labor Hours
Hours
Cost
QUAD CHART EXAMPLE
* Data sources: D/PM for Cost, Delivery, and Labor Hours ; LMP Transaction ZQM_ATTR for Quality Time Frame: Dec 08 – Oct 09
$0.0M
$0.2M
$0.4M
$0.6M
$0.8M
$1.0M
$1.2M
$1.4M
$1.6M
$1.8M
Co
st
pe
r U
nit
Completion Date
Unit Funded Cost(less NOR)
Actual Cost Act $ > UFC (less NOR) Act $ ≤ UFC (less NOR) UFC (less NOR) 4 System Moving Avg.
0
100
200
300
400
500
600
No
. o
f D
ays
Completion Date
Repair Cycle Time(Induction to Completion)
RCT RCT > Std RCT ≤ Std Standard RCT 4 System Moving Avg.
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Ins
pe
cti
on
Pa
ss
%
Completion Date
Quality
Inspection Pass % Pass % < 90% Pass % ≥ 90% 4 System Moving Avg.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Ho
urs
pe
r U
nit
Completion Date
Labor Hours
Direct Hours Charged DLH > Std DLH ≤ Std Standard Auth Hours 4 System Moving Avg.
Have we
refocused?
Are we
achieving
successful
results?
Defense Secretary Robert M. Gates Memo - Aug 2010
―Redirect overhead & support resources to more critical mission areas….‖
―Move our defense enterprise toward a more efficient, effective and
cost-conscious way of doing business…..‖
Today we are supporting….
Purchase Request Process
Paperless Travel Vouchers
Customer Satisfaction Program
Employee Pay Out
Visitor Process
Fixed Price Exercise
AN/TSC-154
AN/TYQ-23
AN/ASM-146/147
LEAN EVENTS
$ 24.1M – Financial Benefits
No full-time OSD
created civilian
positions to replace
contractors.
Reduce by 25%
funding for
advisory studies.
Reduce 10%
funding for
assistance
contractors.
Reduce 10% funding
for service support
contractors.
Developed & conduct
our own in-house courses. …….. ……..
As we continue to reduce
Costs $$$
Repair Cycle Time
and
Improve Quality
WE ARE BACK
ON TRACK
A LITTLE MORE ABOUT GOOD
IDEAS AND SHARING!
Lean
CPI representatives from U.S. AMC Industrial Base
Installations who facilitate Lean events in both the
industrial and administrative areas of our
installations.
U.S. ARMY MATERIEL COMMAND
DEPOT & ARSENAL PROCESS
IMPROVEMENT TEAM
AMCOM
Corpus Christi Army Depot
Anniston Army Depot
Blue Grass Army Depot
Sierra Army Depot
Letterkenny Army Depot
Redstone Arsenal
Rock Island Arsenal
Tobyhanna Army Depot
DEPARTMENT of DEFENSE
PROCESS IMPROVEMENT TEAM
Process Improvement representatives who facilitate Lean
events in both the industrial and administrative areas of our
installations. Air Force
Marines Army Navy
PURPOSE
Bridge the gap between
tactical & operational levels
Define strategic objectives to achieve
DoD’s vision of Operational Readiness
Reach out to the CPI Community
WHY?? May have
same
problems.
Share best
practices.
ARMY NAVY AIR FORCE MARINES
ENTERPRISE
Eliminate
project
duplications.
Want to transition from departmental silos
to a CPI Value Stream across DOD
Save time
and
resources.
Share
best
practices!
Share
lessons
learned! Share
challenges!
SHARING! SHARING! SHARING!
MORE REASONS…
Share issues!
AMC
WORKSHOPS Each
installation
rotates hosting
Held 4 workshops
Jul 09, Jan 10,
Jul 10 & Oct 10
CONDUCT AS A
LEAN EVENT
Long Days….
Great Brainstorming!!
DEPARTMENT OF DEFENSE
CPI WORKSHOP Great take-aways!!!!
Energy Action Plans
Streamlining the Hiring Process
OTHER RESULTS
Action Register established.
Benchmarked other facilities.
Lean Facilitator Certification Course developed.
Standardized procedure for calculating financial benefits.
Different missions, different commodities,
BUT same focus – the WARFIGHTER.
Mission: Provide Superior Logistics Support, Sustainment, Manufacturing,
Integration, and Field Support for Command, Control, Communications,
Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR)
Systems for the Warfighter – Worldwide.
DoD’s Only Joint C4ISR Maintenance, Repair/Overhaul
and Systems Integration Facility
