achieve the mission decrease inventory decrease operating expenses air speed enterprise enterprise...
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Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
Enterprise AIREnterprise AIRSpeedSpeed
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
Why AIRWhy AIRSpeedSpeed??
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
Fiscal reality:
There’s never enough money in the POM to satisfy requirements for both acquisition and readiness at the same time.
Behavior: Trade off future procurements to pay for readiness today.
THE INSPIRATIONTHE INSPIRATION
# AIRCRAFT
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 74 105 140 163 183 187 201
PB01 73 116 128 130 173 177 187
PB02 73 115 124 88 92 115 119 143 155
PB03 115 124 90 83 85 105 147 193
PB04 124 91 99 104 104 134 192 255 303
PB05 92 98 107 108 136 186 240 285
PB06 105 110 128 173 200 249 259 254
PR
ES
IDE
NT
’S B
UD
GE
T (
PB
)
201
110
303
249
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
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 EDB Guidance
• Enabled by Core Team
• Links with Enterprise & Depot AIRSpeed
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
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-6.7.2.1 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
• Enabled by Core Team
• Links with Enterprise & Depot AIRSpeed
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
Naval Aviation Enterprise AIRSpeed
All AIRSpeed Elements Combined Under a Single Reporting Umbrella
BOD NAE-wide Visibility on all AIRSpeed Activities… Ensure all Activity is Properly
Prioritized and Coordinated
Develop Metrics to Quantify AIRSpeed Savings…Enable Portfolio Management
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
• CNO directed the Fleet Response Plan (FRP) to support the Global War on Terror (GWOT)
• Requirements growth in the Flying Hour Program (FHP)
• Naval Aviation will have to support current levels of readiness despite a budget shortfall
• Downsizing the active forces by 70k
• Navy and Marine Corps unit commanders will fight in a cost-wise readiness environment
July 2003 July 2003
Cost-Wise Readiness Became the FocusCost-Wise Readiness Became the Focus
Today’s Readiness ChallengeToday’s Readiness Challenge
““AIRAIRSpeedSpeed is NAVRIIP’s Enabler for is NAVRIIP’s Enabler for operationalizing cost-wise readiness operationalizing cost-wise readiness
across the Naval Aviation Enterprise.”across the Naval Aviation Enterprise.”
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseAIRAIRSpeedSpeed Mission Mission
To enable effective and efficient preparation of Cost-Wise RFT aircraft in support of FRP.
• Enable – using AIRSpeed tools in order to be….
• Effective - at meeting RFT/M rating requirements.
• Efficient - at iteratively reducing costs• Preparation – repair & replenishment of
equipment
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseAIRAIRSpeedSpeed is… is…
• Enterprise Approach– Creates a continuous process improvement
environment – Aligns and optimizes Maintenance and Supply
activities to end-user demand (Operations)– Leverages existing initiatives– Utilizes TRR* to size & position inventories
• Cultural ChangeCultural Change – Synergizes a set of industry toolsSynergizes a set of industry tools– Eliminates sub-optimizationEliminates sub-optimization– Local decisions made with Global impact knownLocal decisions made with Global impact known
• Creates a “pull” system
*TRR: Time to Reliably Replenish*TRR: Time to Reliably Replenish
NRFI
RFI
On AircraftOff Aircraft
Retail
IMAs
NADEPs
NAVSUP/ICP
DLA
NADEPs/ Contractor DepotsIMAs
NRFI
RFI
DIS
TR
IBU
TIO
N D
EP
OT
S
The Scope of Enterprise AIRSpeedThe Scope of Enterprise AIRSpeed
ManageManage Interdependencies & VariabilityInterdependencies & Variability ThroughoutThroughout
The Entire SystemThe Entire System
Wholesale
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
““Local decisions must be aligned to the global impact”Local decisions must be aligned to the global impact”
Fundamentals of AIRFundamentals of AIRSpeedSpeed
• Properly Manage RFT (mission)• Manage and Reduce
– Inventory/Investment • parts, equipment and facilities, APN
– Reduce Operating Expenses • O&M,N, MPN
– Variability• Identify and manage constraints• Identify and address interdependencies• Create a Culture of Continuous Process
Improvement (CPI)
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise Enterprise AIREnterprise AIRSpeedSpeedCurrent ToolsCurrent Tools
• Theory of Constraints (TOC) is based on the belief that any organization has at least one constraint and that any improvements on non-constraints may not yield as significant ROI as working on the constraint
• LEAN focuses on the removal of waste-defined as anything not necessary (no value added) to produce the product or service
• Six Sigma is based on the assumption that the outcome of the entire process will be improved by reducing the variation of multiple elements
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseThe ApproachThe Approach
• Utilizing an integrated blend of TOC, Lean & Six Sigma
• Train the Trainers – gives the NAE “Internal Consultants”– Program Core Teams consist of Active Duty & Civilian
Personnel (Internal Consultants)
• TMS Approach
LE
AN
6-S
igm
a
AF
AS
T
Theory of Constraints (TOC) NAENAE
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise An Integrated ApproachAn Integrated Approach
F
A
1d
Subroute
Generator Control UnitGenerator Control UnitTOTO--BEBE
PC
QA/Final Sell
Ship
Final Assembly
Final Test
NAVICP
Static Test
Generator
FMS
Fleet
Aircraft Line
Unscheduled
Receive
Disassemble
Examine
Parts
Repair
Final Assembly
Final Test
Avg
TAT
= 25
day
s
DRUM
A-ConditionGenerators
7R/SRAs & Consumables
Induct
PC
Tim
e to
Dru
m T
RR
M1
CASS
Dru
m T
RR
M2
Shi
ppin
g T
RR
M3
1d1d
2d
3 days
*5 d
ays/
wee
k,
3 sh
ifts
2 units
SRA(Unscheduled)
2M Repair
Disassembly
Test (CASS)
Repair
PartsSubrouteDisassembly
TOCTOCDesignDesign
andand
6 Sigma6 Sigmaopportunitiesopportunities
IdentifiesIdentifies
LEANLEANeventsevents
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise Transform from a Transform from a “ “Push”Push” to a “ to a “Pull” Pull” System System (Consumables)(Consumables)
1
3
45
2
Vendors
Trading high levels of inventory, investments and costs for speed and responsiveness of the
enterprise.
PEBMALS 31Supply
DLA DD
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise Three Phases of Three Phases of Enterprise AIRSpeedEnterprise AIRSpeed
• Design • 7 Weeks per site• Baseline the “As-Is” state• Design the “To-Be” state
• Deployment• Put in place resources to support “to-be”• Go live with the “to-be” state• 12-18 Months to encompass the entire activity
• Sustainment (on-going)• Establish a Center of Excellence• Incorporate “AIRSpeed” into Policy
– NAMP, P485, OPNAV5442– AIRSpeed Office at every activity
• Schoolhouse & Online Training– “A” & “C” Schools– JASMMM, AMO, SEAM, PCO, PXO, etc– NKO
AIRAIRSpeedSpeed Implementation Schedule Implementation Schedule
Jan-Mar Jan-Mar 20042004
Apr-Jun Apr-Jun 20042004
Jul-Sept Jul-Sept 20042004
Oct-Dec Oct-Dec 20042004
Jan-Mar Jan-Mar 20052005
Apr-Jun Apr-Jun 20052005
Jul-Sept Jul-Sept 20052005
Lean (Prototype)HSC-3HSC-3HS-10 VAQ-129HS-10 VAQ-129
Lean (Prototype)CV-63CV-63CVN-68CVN-68
LeanIMA MayportIMA MayportMALS 12MALS 12TOC IMA LemooreIMA LemooreMALS 31 MALS 31 NADEP NORISNADEP NORIS
LeanIMA NorfolkIMA NorfolkIMA North Island IMA North Island MALS 31 MALS 31 MALS 14MALS 14
LeanIMA JacksonvilleIMA JacksonvilleIMA BrunswickIMA BrunswickMALS 16MALS 16MALS 24MALS 24MALS 29MALS 29TOC IMA Whidbey IslandIMA Whidbey IslandMALS-11 MiramarMALS-11 MiramarIMA North IslandIMA North Island
LeanMALS 39MALS 39MALS 13MALS 13IMA FallonIMA FallonTOC IMA MayportIMA MayportIMA Jacksonville IMA Jacksonville MALS-14 MALS-14 MALS 12 MALS 12 NADEP JacksonvilleNADEP Jacksonville
AIRSpeed (Prototype)CVN-73CVN-73
LeanIMA Whidbey IslandIMA Whidbey IslandIMA Pt MuguIMA Pt MuguMALS 11 MALS 11
TOCIMA OceanaIMA Oceana (Lean Apr 01)
AIRAIRSpeedSpeed Implementation Schedule Implementation Schedule
Oct-Dec Oct-Dec 20052005
Jan-Mar Jan-Mar 20062006
Apr-Jun Apr-Jun 20062006
Jul-Sept Jul-Sept 20062006
Oct-Dec Oct-Dec 20062006
Jan-Mar Jan-Mar 20072007
Apr-Jun Apr-Jun 20072007
MALS-24 MALS-24 MALS-29 MALS-29 MALS 39 MALS 39
IMA MisawaIMA MisawaIMA Pt MuguIMA Pt MuguIMA NorfolkIMA Norfolk
MALS 36MALS 36MALS 26MALS 26MALS 13MALS 13
IMA FallonIMA FallonJRB NewburghJRB NewburghJRB Fort WorthJRB Fort Worth
IMA AtsugiIMA AtsugiJRB New OrleansJRB New Orleans 2 CVN/CAW (TBD)2 CVN/CAW (TBD)2 FRS Sqdns* (TBD)2 FRS Sqdns* (TBD)
3 CVN/CAW (TBD)3 CVN/CAW (TBD)3 FRS Sqdns* (TBD3 FRS Sqdns* (TBD))
3 CVN/CAW (TBD)3 CVN/CAW (TBD)3 FRS Sqdns* (TBD)3 FRS Sqdns* (TBD)
3 CVN/CAW (TBD)3 CVN/CAW (TBD)3 FRS Sqdns* (TBD)3 FRS Sqdns* (TBD)
3 FRS Sqdns* (TBD) 3 FRS Sqdns* (TBD) 3 L-Class / MAW (TBD)3 L-Class / MAW (TBD)
Jul-Sept Jul-Sept 20072007
Oct-Dec Oct-Dec 20072007
Jan-Mar Jan-Mar 20082008
Apr-Jun Apr-Jun 20082008
Jul-Sept Jul-Sept 20082008
Oct-Dec Oct-Dec 20082008
6 L-Class / MAW (TBD)6 L-Class / MAW (TBD)
*Proposed Plan *Proposed Plan
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseDefinitionsDefinitions
• Time to Reliably Replenish (TRR)– Does not use averages – 50% rule.– Calculates the time to actually replenish utilizing
90% • Buffer
– Recommended allowance size for the to-be design based upon customer demand and TRR
• Demand-based Pull System– Repair and replenishment processes are activated
by customer demand. • Ex. Don’t induct and repair unless needed by the system
to meet customer demand.
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseThe MetricsThe Metrics
• Four top level metrics that must shape our behavior– Inventory
• How much stuff do we have? (people, material contracts, etc)
– Reliability• How well are we doing? (quality of product)
– Cycle Time• How fast? (driven by people & processes)
– Cost Reduction• Complete understanding of the baseline to identify cost
reduction impacts and opportunities
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
• NAVRIIP U 101 (1-day class or online)– Contains a general overview of AIRSpeed
• SCTE (1-week class)– Pax River, MD
• SCTDE (1-week class)– Pax River, MD
• SCDE (1-week class)– Pax River, MD
• SCTDM (1-week class)– Pax River, MD
• Jonah (2-week class)– Pax River, MD
• Green Belt (1-week class)• Black Belt (2-weeks long separated by 30 days)
Project Office Project Office AIRAIRSpeedSpeed Training Training
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseAIRAIRSpeedSpeed Training - NKO Training - NKO
•The Navy Knowledge Online https://wwwa.nko.navy.mil/portal/splash/index.jsp
•NAVRIIP U 101 – Overview Course including Theory of Constraints, Lean and Six Sigma
•Fleet Business: The Navy Business and Fiscal Practices Course (CNL-FB-1.0)
•Lean Classes
•Lean Logic (OPER0151)
•Lean Value (OPER0152)
•Six Sigma
•Six Sigma Introduction (OPER0131)
•Six Sigma: Reducing Variation to Improve Quality (OPER0141)
•Six Sigma: Listening to the Voice of the Customer (OPER0142)
•Six Sigma DMAIC: Defining the Problem (OPER0143)
•Six Sigma DMAIC: Measuring the Process (OPER0144)
•Six Sigma DMAIC: Analyzing the Data (OPER0145)
•Six Sigma DMAIC: Analyzing the Process (OPER0146)
•Six Sigma DMAIC: Improving the Process (OPER0147)
•Six Sigma DMAIC: Controlling the Improved Process (OPER0148)
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseAIRAIRSpeedSpeed Training - DAU Training - DAU
•Defense Acquisition UniversityDefense Acquisition University•Lean Thinking and Value Stream Mapping (Seminar)
•Focuses on creating value as determined by the customer emphasizing lean thinking principles and concepts.
•Introduction to Lean Enterprise Concepts (CBT or Seminar)
•Explains lean enterprise concepts and techniques, the key to success for many corporations around the world in the 21st century.
•Lean—Six Sigma (CBT or Seminar)
•Is a continuation of the ‘Introduction to Lean Enterprise Concepts’ and ‘Six Sigma: Concepts and Process’ modules.
•Six Sigma: Concepts and Process (CBT or Seminar)
•Introduces the foundations of the Six Sigma quality control methodology created by Motorola to increase the productivity and quality of products and customer service processes
•Theory of Constraints (Classroom)
•Theory of Constraints (TOC) is a philosophy of management improvement and set of techniques used to manage an organization. Mr. Eliyahu Goldratt originated the TOC idea in his book “The Goal” as a way of managing a business to increase profits
•Six Sigma (Classroom)
•Six Sigma is a Quality Control methodology that is the leading Quality Improvement program in Industry. This course discusses what Six Sigma is and how it can be implemented for DoD programs to identify, improve, and measure job processes. Participants will also learn how Six Sigma is being deployed, including the roles of the principle players: “Green Belts”, “Black Belts” and “Champions”
Reference: DAU 2006 Catalog, Chapter 3, DAU Learning Assets
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseSuccessful OutcomesSuccessful Outcomes
• Support Fleet Readiness Plan• Provide Ready for Tasking Aircraft
– Per CFT 1 Entitlements
• Reduce Total Cost of Naval Aviation• Reduce Inventory, Operating Expenses, and Manpower
• Integrated Maintenance & Supply Support System
• Seamless support to the Fleet • Improve Logistics/Maintenance Response
• Decrease Cycle Time• Decrease Logistics Footprint
• Place Ownership and Accountability at the appropriate Levels
These are the consequences of doing AIRSpeed right.These are the consequences of doing AIRSpeed right.
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseWe have the opportunity to positively impact the business of Naval Aviation through the
proper application of AIRSpeed.
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterpriseAdditional InformationAdditional Information
• WEBSITE– http://www.cnaf.navy.mil/airspeed
Leadership Must Be Visibly Committed & Leadership Must Be Visibly Committed & Engaged Engaged
Achieve the Achieve the MissionMission
Decrease Inventory
Decrease Operating Expenses
AIRAIRSpeedSpeed
EnterpriseEnterprise
Questions???Questions???