maintenance center albany cost containment

Logistics Solutions for the WarfighterLogistics Solutions for the Warfighter

Maintenance Center AlbanyCost Containment

Trent Blalock, Deputy CommanderDate: 29 October 2008

Logistics Solutions for the Warfighter

Marine Corps’ Operational Logistics Solution providerfor fielded weapons systems, support services and supplies.

Operational logistics solutions to satisfy the Warfighter’s tactical logistics requirements. Sustain weapon systems and equipment with supporting products and services.

With a Warfighter focus, we provide competitive, comprehensiveand integrated solutions by being “the best” or sourcing from

The best commercial, organic and DOD providers.Fulfill the Operating Forces’ logistics requirements

……………with innovative, efficient and effective solutions.Best-value logistics support provider for strategic functions

………… resource from best-value support providers for all other functions.Enhance the Marine Corps’ ability to execute

and sustain its warfighting competency.Logistics broker connecting strategic logistics resources to tactical logistics requirements. Take logistics burden off of the Warfighters’ shoulders

…….. allowing them to focus more on their core competency of warfighting.

Logistics Command’sVISION

Presenter

Presentation Notes

CG MARCORPLOGCOM vision is to posture MCLC to take the demand signal from MCSC and the warfighter and translate into workable and relevant maintenance solutions. Becoming more relevant to the warfighter is a major goal of MCA. In order to draw “closer” to our customer, we are pursuing a culture of Innovation in four major areas to provide Expeditionary Integrated Maintenance Support to the warfighter. Over the next several slides we will briefly address MCA’s activity in each of these areas.


FBI Navy

Versatility and Capability Multi-Commodity / 493 Lines

69 Trade Skills - Laborers to Engineers

National Guard Bureau

Private Industry

Marine Corps

Foreign Military AssistanceArmy

Homeland Security

104 103115

184

311 313295

351

0

50

100

150

200

250

300

350

400

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

ANNUAL REVENUE

Air Force

http://www.fas.org/man/dod-101/sys/ac/equip/docs/000198a.jpg


It’s All About The People!

Current on Board: 1,788Contractor: 571Temp/Term: 417Permanent: 791Marines: 9

0

500

1,000

1,500

2,000

FY01 FY03 FY05 FY07

Permanent Tem/Term Contractor

1,620

774


Total Cost Hourly Rate

• Click to edit Master text styles– Second level

• Third level– Fourth level

» Fifth level

$100 $130 $160

2005

2006

2007


Hourly Rate Without Material



» Fifth level

$60 $75

2005

2006

2007


Net Operating Results



» Fifth level

-20

0

20

2000 2001 2002 2003 2004 2005 2006 2007

$M

PB NOR NOR


Cost Containment

Leadership ‒

Communications ‒

Think SafetyFocus on ThroughputControl WIP/InductionsMaterial Management -

Parts Availability

“Right Size”

the WorkforceManage Capacity ‒

Shifts/overtime/equipment

Facility improvements/Capital investmentContinuous Process ImprovementRemember the Lean years


Customers

Employees

OrganizationHead

Senior Staff

Middle Management

Supervision

Comm

unication

Info

rmat

ion

Talk the Talk, WALK the WALKTalk the Talk, WALK the WALK

MCA LEADERSHIP CONCEPT

“Radical” ApproachManagers work for employeesSupervisors exist to help employeescreate valueManagers ensure employees haveeverything they need to do their jobsManage by walking the floor, answers are not in an office or in meetingsManagers get engaged with creatingvalue for the customer

Managers drive change with personal action

Presenter

Presentation Notes

If one truly wants the company to be successful, turn the org chart upside down and start operating that way Customers must always be at the top of the organization. Without customers why do companies exist! Employees generate value for the customer. The “money makers” Managers daily activities should be focused on How do I ensure the workers have everything they need to generate value The important answers are not on email, in meetings. Can we just quit attending mtgs, ignore the in box. Probably not, but if you are not spending 75% of your time focused on improving the money makers jobs, you are just part of the waste stream and NOT the value stream Not grip and grin, this is watch listen and learn TAKE ACTION


THROUGHPUT FOCUS



» Fifth level

Increase throughput and make schedule without increasing operating expenses or sacrificing quality.

1. Identify the constraint2. Exploit the constraint3. Subordinate everything else to the constraint4. Elevate the constraint5. Go back to step one (avoid inertia)


RCT VARIATION REDUCTION

Weapon System FY-04(RCT Variation)

FY-07(RCT Variation)

Reduction(Days) (%)

MK-48 100 (138-38) 38 (68-30) 62 (62%)

MK-15 Trailer 71 (133-62) 5 (41-36) 66 (93%)

MK-17 Trailer 53 (105-52) 10 (47-37) 43 (81%)

M970 Refueler 86 (136-50) 4 (73-69) 82 (95%)

M149A2 Water Trailer 49 (65-16) 19 (38-19) 30 (62%)

M88 Tank Retriever 89 (235-146) 31 (129-98) 58 (65%)

192 in FY-01


CONTROL OF WIP / INDUCTIONS

One Piece FlowPull SystemCritical ChainSimplified Drum-Buffer-Rope


MATERIAL MGT



» Fifth level

Ensure Parts AvailabilityAggressively worked with DLA, OEMs and other vendors“It’s NOT a parts problem!”

Maximized Line-Side Stock High volume materials within arms reach of the artisanAutomated the reorder process - Reduced from 5 to 1 day

Make/Buy DecisionsDetermine uneconomical repair processesLess inventory OH + less labor to complete + increasedthroughput = Reduced cost

• Increased Kitting • Develop kits to support/optimize production throughput• Purchase kits ready to use vs. making in house


“Right Size” the Workforce

Right people, the right job, the right timeCore Permanent Workforce Temps/Term EmployeesAugment with ContractorsDevelop the Workforce


Manage Capacity

Expand First Shift CapacityOvertime – Voluntary/Mandatory2nd Shift used for Constrained ShopsCritical Plant Equipment AvailabilityOutsource when Needed Monitor WIP


Facility Improvement & Capital Investments

FY03 $4.8MFY04 $4.7MFY05 $5.9MFY06 $6.1MFY07 $3.5MFY08 $6.7M


Continuous Process Improvement

DEFENSE ACQUISITION REVIEW JOURNALAPPLYING THEORY OF CONSTRAINTS PRINCIPLES AND LEAN THINKING

Theory of Constraints principles can be used in Conjunction with Lean thinking to leverage even

more benefits for the enterprise.Theory of Constraints & Lean enables growth strategy.TOC primarily focuses on the bottleneck. Lean is focused on reducing waste at all levels. Lean uncovers additional capacity for further growth.Lean thinking corporate implementation plan developed.Set up Lean Team. Lean 6-S efforts results:

Reengineered supply warehouse, Significant increase in available shop floor space,Streamlined process flows, Cleaner workplace, less cluttered, and safer.

“The Center has become extremely flexible and better positioned to meet itsresponsibilities for regeneration and reconstitution of critical supplies.”

DEFENSE ACQUISITION REVIEW JOURNAL

Presenter

Presentation Notes

Lean Six Sigma NSPS Performance Management Voluntary Protection Program


METRICS/RESULTS IMPROVED



» Fifth level

ThroughputEmployee MoraleCustomer SatisfactionDirect Labor HoursRepair Cycle Time

Work in Process Direct Labor CostsOverhead CostsTotal Repair Cost


Remember the Lean Years

Organizational Review OffsitesBenchmarking Relationships w/ Industry SustainmentMarket Share Expansion


What you do is IMPORTANT! Everyday a Marine’s Life depends on it !


Questions?

Cost Containment


Backup Slides


BAE Foreign Military Sales (Taiwan)

BAE Systems

Joe Gibbs Racing

Oshkosh

DRS Technologies

Delta Airlines

3 M

Force Protection

W.W. WilliamsFranklin Covey

Booz Allen Hamilton

International Military Group

STRATEGIC RELATIONSHIPS

Other DoD Depots …

Lockheed Martin

(Benchmarked)

John Deere

Toyota

GDLS

(Both)(Relationships)

Presenter

Presentation Notes

In our quest for improvement, MCA has established formal and informal relationships with certain organizations, who's capabilities when coupled with ours, provide increased responsiveness to our customers.


Increasing Beyond Traditional Customer Base

USMCUSMCUSMC

NAVAIR Seabees

National Guard Bureau

MARSOC

Homeland Security…??

MARKET SHARE EXPANSION

Air Force

Private Industry

maintenance center albany cost containment

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