NAVSEA LEAN Presented By Maggie Maguire NAVSEA Comptroller

NAVSEA LEAN Presented By Maggie Maguire NAVSEA Comptroller 13 June 2005 It’s a Journey – Not a Destination 1

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 2

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…. . 3

LEAN CONCEPTS AND PRINCIPLES • Key terms • Value/ Value stream • Flow • Muda • Type One –unavoidable in current system • Type Two - avoidable • Customer focus • Pull • Perfection 4

Task Force Lean (TFL) Organization COMMANDER NAVAL SEA SYSTEMS COMMAND SEA 00 VADM P. BALISLE VICE CDR/DEP CDR FLEET EXEC DIR. MAINT & MOD SEA 00 B SEA 09 RADM A. LENGERICH P. BROWN (SES) Task Force Lean Flag/SES level Task Force Support Functions Lean Efforts Contract Support Warfare Centers Naval Shipyards HQ Lo. B & PEO CORPORATE OPERATIONS SEA 10 Contracts; legal & financial support as needed Deploy via Command Lines of Business (Lo. B) 5

PNSY - Ball Valve Repair “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 PNS and throughout NAVSEA. ” - Inspector General Report, March 2004 Process Improvements FY 2002 - FY 2004 95% Decrease in Overtime Hours 28% Increase in Throughput 92% Increase in Productivity per Labor Hour 60% Improvement in Cycle Time Average Ball Valve Cycle Time per Quarter FY 2002 Quarter 1 2 3 FY 2003 4 1 Cycle Time (days) 208 176 148 140 100 FY 2004 2 3 4 1 2 82 61 53 54 45 Goal = 20 Days 6

Improving Crane Availability Portal Cranes Bridge Cranes Reduced Crane Maintenance from 98 to 37 Days § Category II Bridge Crane Savings $400 K/YR Reduced Overtime Costs from $180 K to $0 § 88% Reduction in Maintenance Cycle Time from 30 to 7 days Portal Crane Annual Maintenance Savings $960 K/Year § Eliminated Work Backlog 7

Lean in SWRMC 38 B Ordnance Shop First Pass Before • • • Lead Time: 60 Days Manpower: 18 Sailors Inventory: 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 $30 K per repair not sent to UD • Anecdotal quality increase Added capability to repair VLS Hatches due to improved gun repair process. 8

NAVSEA LEAN BUSINESS AND OPERATIONS • Currently Approved Projects – Funding Documents – University Affiliated Research Centers – Procurement Requests 9

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 10