Lean
The Beginning. GEN Kern s Memo, 20 Aug 02 Creating Lean A Mgmt Tool for the Future there is potential for great progress.
WHY DO LEAN EVENTS? To put out a fire? Misconception!! For performance appraisals!
REAL REASON!! IMPROVE QUALITY REDUCE COST QUICKER DELIVERY
FOR THE WARFIGHTER Put picture of soldiers here!
Reduce costs
VISUAL MANAGEMENT ANDON LIGHT BEFORE AFTER PROCESS TOOLS STANDARD WORK
# of black belts # of green belts # employees trained
Strategic Plan Strong Leadership Support CO on Lean Event CPI for Leaders Employee buy-in New Employees Incentives Group Award Effective Lean Events 5 Simple Questions
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
LEAN SUSTAINMENT COMMAND REVIEWS Monthly Meetings Command Group & Directors Review Quad Charts & Action Plans of VSAs
Hours per Unit Cost per Unit QUAD CHART EXAMPLE No. of Days Inspection Pass % $1.8M Cost Unit Funded Cost (less NOR) 600 Repair Cycle Time Time (Induction to Completion) $1.6M $1.4M $1.2M $1.0M $0.8M $0.6M $0.4M $0.2M $0.0M 500 400 300 200 100 0 Completion Date Completion Date Actual Cost Act $ > UFC (less NOR) Act $ UFC (less NOR) UFC (less NOR) 4 System Moving Avg. RCT RCT > Std RCT Std Standard RCT 4 System Moving Avg. 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 Labor Hours Labor Hours 100% 95% 90% 85% 80% 75% 70% 65% 60% Quality 1,000 55% 0 50% Completion Date Completion Date Direct Hours Charged DLH > Std DLH Std Standard Auth Hours 4 System Moving Avg. Inspection Pass % Pass % < 90% Pass % 90% 4 System Moving Avg. * Data sources: D/PM for Cost, Delivery, and Labor Hours ; LMP Transaction ZQM_ATTR for Quality Time Frame: Dec 08 Oct 09
Have we refocused? Are we achieving successful results?
Today we are supporting. 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..
$ 24.1M Financial Benefits No full-time OSD created civilian positions to replace contractors... Developed & conduct.. our own in-house courses. Reduce 10% funding for assistance contractors. Reduce by 25% funding for advisory studies. LEAN EVENTS 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 Reduce 10% funding for service support contractors.
WE ARE BACK ON TRACK As we continue to reduce Costs $$$ Repair Cycle Time and Improve Quality
A LITTLE MORE ABOUT GOOD IDEAS AND SHARING!
Lean
U.S. ARMY MATERIEL COMMAND DEPOT & ARSENAL PROCESS IMPROVEMENT TEAM CPI representatives from U.S. AMC Industrial Base Installations who facilitate Lean events in both the industrial and administrative areas of our installations. 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 Army Navy Marines
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. Eliminate project duplications. Share best practices. Want to transition from departmental silos ARMY NAVY AIR FORCE MARINES Save time and resources. to a CPI Value Stream across DOD ENTERPRISE
MORE REASONS SHARING! SHARING! SHARING! Share issues! Share challenges! Share lessons learned! Share best practices!
Held 4 workshops Jul 09, Jan 10, Jul 10 & Oct 10 AMC WORKSHOPS Each installation rotates hosting 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