COL Nicholas C. Amodeo Program Director Army Lean Six Sigma. 17 April 2007 ASQ 509 Washington
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1 COL Nicholas C. Amodeo Program Director Army Lean Six Sigma 17 April 2007 ASQ 509 Washington
2 Army Corporate Profile FY 08 Appropriation + Supplemental FY 09 President s Budget $183.2B* $140.7B** * Includes HR2764 Supplemental but not pending $63.7B supplemental ** Does not include expected Supplemental support for GWOT. FY09 President s Budget Military Personnel $ 51.8B Operations & Maintenance $ 40.2B Procurement/RDT&E $ 35.1B Military Construction $ 5.4B Army Family Housing $ 1.4B BRAC $ 4.6B ChemDemil $ 1.6B JIEDDO $ 0.5B Other $ 0.1B $ 140.7B* * Does not include Supplemental support for GWOT As a corporation Would rank #6 on the Fortune 500 based on revenue As large a workforce as Wal-Mart and McDonalds (1.5M) UPS has 355K employees Key Facts Recognized by CJCS as the busiest Service with 251,000 Soldiers deployed in 120 Countries Iraq and Kuwait ~150K Afghanistan ~20K Korea ~ 28K Homeland Defense ~ 8K Fleet Wheels ~237,000 vehicles Tracks ~28,000 vehicles Rotary wing ~4,200 airframes Installations ~$251B Plant Replacement Value ~4,100 Installations and centers ~14.0M acres ~56,487 miles of roads ~973 Million square feet of buildings People Army End Strength Active Military 547.4K Reserve Military 564.2K Civilians 243.0K Contractors 213.0K est. 2
3 Today s Full Spectrum Challenges Complex Threats Conventional traditional Unconventional asymmetric Complex Environment World wide Commitments Culture, Language NGO s Media Political HN Police and Military Mix of Combatants and Non-combatants Full range of Terrain: Urban, desert, etc. Full Spectrum Operations Conventional High Intensity Ops Stability Ops Support Ops Global Threats Global Commitments The The security environment has has changed increasing your your Army s global global commitments. 3
4 History Steadfast circa 1973 established TRADOC and FORSCOM as MACOMS. Operational Force War Fighting Support Force Evaluate Adjust Assessment JEM GWOT OP Concept Innovate Implement JEM GWOT Measure Results Warfighting Capability Assessment Warfighting Capability Evaluate Adjust LM OP Concept Innovate Implement Measure Results Assessment Evaluate Adjust Assessment ALB OP Concept Innovate Implement Evaluate Adjust Assessment OP Concept Innovate Implement Steadfast RETO Evaluate Adjust OP Concept Innovate Implement Measure Results Measure Results ARTS Measure Results Time Time 4
5 Building the Army Now and for the Future - Complex Interrelationships You cannot focus on just one initiative Will directly influence: Recruiting / Retention Public Support Army Resourcing 5 Force Force Force Generation Generation Generation Winning GWOT Winning GWOT Winning GWOT AC/RC AC/RC AC/RC Mix Mix Mix Inherently linked Initiatives Quality Quality Quality of of of Life Life Life Business Business Business Transformation Transformation Transformation Innovation Innovation Innovation & & & Improvement Improvement Improvement Manning Manning Manning Business Business Business Efficiencies Efficiencies Efficiencies Quality Outcomes the the the Force Force Force Training Training Training you have to consider the effect that each has on the whole Modular Force Initiative Reset/ Modernization Stationing Therefore you have to focus on the desired outcome to win today s s war and prepare for future conflicts. Consistent and flexible funding and execution will allow the Army to synchronize these interdependent initiatives to sustain global commitments.
6 Army Imperatives We will Sustain our Soldiers, Families and Civilians; Prepare soldiers for success in current operations; Reset to restore readiness and depth for future operations; and Transform to become the Army the Nation needs today and in the future. 6
7 Decade of Change America s Army A campaign-quality expeditionary force able to operate effectively with Joint, interagency and multinational partners across the spectrum of conflict. Institutional Focus Operational Focus Transformational Focus GEN Schoomaker GEN Casey Enterprise Transformation We will not cement the transformational change of the Army until the institution reflects that change. Business Transformation Chief of Staff, Army 19 June 2007 GEN Shinseki Warfighting Transformation 7
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10 The Keys to Lean / Six Sigma Lean Six Sigma Support for Warfigher Improve Processes Quality Speed Team Work Variation & Defects Process Flow Data and Facts Program Theory Application Guidelines Focus Lean Thinking Remove Waste 1. Identify Value 2. Identify Value Stream 3. Flow 4. Pull 5. Perfection Flow Focused Six Sigma Reduce Variation 1. Define 2. Measure 3. Analyze 4. Improve 5. Control Problem Focused Source of chart: What is Lean Six Sigma?, George, Rowlands, & Kastle Source of Picture: Simpler Business Systems, Inc., facilitating a lean VSA at a GSIE depot 10
11 Army LSS Deployment Strategy 1 Design and Build Initial Deployment Infrastructure Initial Planning 2 Identify Senior LSS Deployment Champions Dep. Design & Governance Award LSS Contract Establish LSS HQDA PMO and Army LSS School House Deploy Contractor MBBs / BBs Build Skills and Execute Executive Leadership Workshops Exec Awareness ID Sponsors ID PVCs PowerSteering Database 3 Build ELs & Project Sponsors (3-4 months) Train Sponsors Draft Charters & Opportunities Project Sponsor Workshops Project Identification & Selection Workshops Defined &Prioritize d Charters Integrate and Sustain the Effort Execute via DMAIC Process 2-3 months 4-6 months Green Belt (DMAIC) via 2-1 week classes/month projects completed Black Belt (DMAIC) via 4 1 week classes per month Ongoing JDIs & Rapid Improvement Events (DMAIC) Green Belt (DMAIC) via 2-1 week classes/month Integrate LSS POI in Army Institutional Courses projects completed Army Deployment Characteristics Top down Bottom up Army wide (Active, Res, NGB) One central system of record - PowerSteering Decentralized execution central policy, training, and IT support BB centric with 3 year phase in of 1% BBs and 3% GBs Sustainment in FY08 Project opportunities generated via PSWs and refined via Plan and Execute Project Identification workshops (PISW) Repeat to achieve project & belt goals Build Army Master Black Belts from Army BBs and Grandfathering 11
12 Army LSS Leadership Structure HQDA Structure EOH Forum Joint Civilian and Military leadership at all levels LSS Sr. Advisor DUSA(BT) Enterprise Deployment Director Program Director SRG (BT) Deployment Team Co-Chairs: DUSA-BT and MILDEP ASA(ALT) Members: HQDA Staff and ACOM Deployment Directors Training, Cert, & HR Integration Project Execution/ Finance Information Technology Strategic Comms Command/DRU/ASCCs Structure Organization s Senior Leader Deployment Director Process Owner Process Owner Process Owner Master Black Belt Green Belt Green Belt Black Belt Black Belt 12
13 Key to Sustaiment: Army MBBs and POI Integration Army Experts MBB Contract MAKE BUY/LEASE Integrate Q1 and Sustain the Effort FY07 MBBS = 86 FY08/09 MBBs =TBD FY07 =30% Courses FY08 =80% Courses FY09 = 100% Courses Q2 FY07 Q3 Create Army Master Black Belts from Army BBs and Grandfather Integrate LSS POI in Army Institutional Training 30% courses integrated Q4 Q1 Q2 FY08 Q3 80% courses integrated Q4 Q1 Q2 Integrate with Suppliers (TBD) FY09 Q3 LSS delivered part of Civ/Mil Institutional training 100% courses integrated Time Q4 13
14 Current Deployment of MBB Resources HQDA Location of Leased MBBs FORSCOM TRADOC AMC Army EUSA USASOC USARCENT USARNORTH SDDC USARSO USAREUR USARPAC SMDC / ARSTRAT ASA(ALT) CSA PMG CSA CSA CSA COE TSG CIO/G-6 G-2 ACSIM Acquisition Support Center ATEC CIDC USMA USARC MDW USACE MEDCOM NETCOM INSCOM IMCOM MBBs strategically deployed to provide LSS enterprise wide consultation to Command Deployment Directors to accelerate project ID, execution, and completion to realize hard dollar savings 14
15 Project Execution and Training: Building the Bench Build Executive Leaders/ Project Sponsors and Draft Project Charters Executive Leadership Workshops 3-4 months Build Army Belts and Execute via DMAIC Process 4-6 months ID Sponsors Exec Awareness ID PVCs Hands on Sponsor Training Draft Charters & Opportunities PowerSteering Database Project Sponsor Workshops Project Identification & Selection Workshops Defined & Prioritized Charters 2-3 months GB Courses(2-wk crs) Completed Ongoing JDIs & Rapid Improvement Events (DMAIC) 2-3 months GB Courses(2-wk crs) BB Courses(4-wk crs) Completed Certifications submitted & approved 15
16 Power Steering Tracking Tool Idea & Pipeline Management Project Management Knowledge Management Resource Management Portfolio & Program Management Submit Ideas Project Plans & Schedules Version Control Roles & Allocation Rollup Benefit Reporting Prioritize Tools & Templates Full Text Search Time Sheets & Cost Tracking Benefit Allocation Across Units Charter Status Reporting Best Practice Repository Skill Sets & Certifications Graphical Status Display Issues / Discussion Dynamic Portfolios Benefit Tracking Saved & Custom Reports Configurable Look, Feel, and Permissioning Per Unit, Group, or User Alerts, Full Activity History, Metric Versions Search, Users, Documents, Tasks, and Templates Functionally Robust: Best-of-Breed Tool for Army s Implementation of LSS 16
17 Power Steering Tracking Tool Project Dashboard in PowerSteering: User-specific view of important data If it s not in PowerSteering, it doesn t exist! Project Name Status 17
18 LSS Deployment FY08 Deployment Milestones Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Oct. 07 Nov. 07 Dec. 07 Jan. 08 Feb. 08 Mar. 08 Apr. 08 May. 08 Jun. 08 Jul. 08 Aug. 08 Sep. 08 Oct. 09 Nov. 09 Dec. 09 PMO Events Army Decisions 18-Oct 22-Nov 20-Dec 17-Jan 21-Feb 17-Apr 20-Mar 22-May 19-Jun 17-Jul DD DD DD DD DD DD DD DD DD DD 30 Jan 30 Apr 29 Jul PS Test Environment PMR PMR PMR PS V3 Update & DD Off-Site LSS POI LSS Guidebook V2 PS V4 Updates, CRB & LSS POI V2 LSS Guidebook V3 Grandfathering Policy Identify BB/GB in PowerSteering for Q3FY08 Determine FY09 Belt Class Allocations Identify BB/GB in PowerSteering for Q4FY08 PS V5 Updates, LSS Guidebook V4, & LSS POI V3 Identify BB/GB in PowerSteering for Q1FY09 21-Aug DD PS V6 Updates, LSS Guidebook V5, & LSS POI V4 18-Sep 23-Oct 21-Nov DD DD DD 24 Sep PMR 19-Dec DD FY08 Goals 4500 Completed (Cum) 2,600 Gated 1,900 Non-Gated 1625 BB Certified (Cum see Note) 3850 GB Certified (Cum see Note) 40 MBB Certified (Cum see Note) Add 90 MBBs Trained in FY08 Add 1770 BBs Trained in FY08 Add 3000 GBs Trained in FY08 Identify BB/GB in PowerSteering for Q2FY09 Leadership Tng & Project Identification 10/09 10/23 LSS Opps a PowerSteering Database 11/06 Single source of BT initiative status data 11/27 12/04 01/08 01/22 02/05 02/19 03/04 03/18 04/01 04/15 04/29 Executive Leader & Project Sponsor Workshops (2 ½ Days) Assess LSS Opportunities Assess LSS Opportunities 05/13 05/27 06/10 Project Selection and Identification Workshops (3 Days) 06/24 07/10 07/22 Assess LSS Opportunities 08/05 08/19 09/02 09/16 Assess LSS Opportunities Belt Training & Certification Rev. A GB Q1-2 MBB Classes (30) Q2 1 MBB Classes (15) Q3 2 MBB Classes (30) Q4 1 MBB Classes (15) Q1 MBB Classes (TBD) BB Q3 BB projects closed out Q1 15 BB Classes (450) BB Q2 19 BB Classes (570 BBs) GB Q4 BB projects closed out BB Q3 17 BB Classes (510BBs) GB Q1 BB projects closed out Q4 8 BB Classes (240) Q3 BB projects closed out Q1 BB Classes (TBD) Q1 27 GB Classes (810) Q2-33 GB Classes (990) Q3-18 GB Classes (540) Q4-22 GB Classes (660) Q1 GB Classes (TBD) Note: Assumes 99% of MBB trained through 1QFY08 will be certified by end of FY08; 95% of BB trained through 2QFY08 will be certified by end of FY98; and 90% of GB trained through 3QFY08 will be certified by end of FY08. 11/01/ BB GB Q2 BB projects closed out BB GB
19 2007 Award Recipients Red River Army Depot Bradley Power-train HEMTT HMMWV Production US Army Rock Island Arsenal Joint Mftg & Tech Ctr Forward Repair System Shop Equipment Contact Maintenance Tobyhanna Army Depot AN/TPQ-36 Firefinder Antenna Malcolm Baldrige National Quality Award Armament Research, Development and Engineering Center (ARDEC) Letterkenny Army Depot Anniston Army Depot HMMWV Recap FAASV Power Generators Corpus Christi Army Depot ACLC/AMCOM Fort Rucker AGT 1500 Turbine Engine HH-60 Pavehawk C20J Engine Line TH-57 Sea Ranger 19
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21 Army Transformation Done Right VISION A fundamental change in how the Army does business. Apply proven business principles to the Army s business problems DESIRED EFFECTS Maximizing return on taxpayers dollar A culture that drives costs down vs. driving budgets up. Defending the Nation is more important than defending the budget A culture of continuous improvement. Payoff an Army which effectively and efficiently provides the necessary forces and capabilities to the Combatant Commanders in support of National Security and Defense Strategies 21
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