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Portsmouth Naval Shipyard Lean Manufacturing Implementation Presented to:

Portsmouth Naval Shipyard. Portsmouth Naval Shipyard Lean Manufacturing Implementation Presented to: Advanced Production, Quality and Manufacturing Course. Captain P. M. Delpero 30 April 2002. Overview. Introduction/Background Shipyard Overview Work Workforce Management

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Portsmouth Naval Shipyard Lean Manufacturing Implementation Presented to:

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  1. Portsmouth Naval Shipyard Portsmouth Naval Shipyard Lean Manufacturing Implementation Presented to: Advanced Production, Quality and Manufacturing Course Captain P. M. Delpero 30 April 2002

  2. Overview • Introduction/Background • Shipyard Overview • Work • Workforce Management • Lean Initiatives • Summary

  3. Introduction • Captain Philip M. Delpero, Operations Officer, Portsmouth Naval Shipyard • Other duty stations • Naval Reactors, Washington, D.C. • Mare Island Naval Shipyard, Vallejo, CA • Portsmouth Naval Shipyard, Kittery, ME • SEAWOLF Program Office, Washington, D.C. • Education • B.S. Nuclear Engineering, Penn State • M.S. Mechanical Engineering, MIT • M.S. Naval Architecture/Marine Engineering, MIT • Level 3 Program Management Career Field

  4. Roles and Capabilities Facilities and people to provide a full range of submarine maintenance and modernization • Industrial Plant • Engineering Disciplines • Production Trade Skills

  5. Shipyard Characteristics • 275 Acres on Seavey Island in the Piscataqua River • 25 Acres in Kittery, Maine (Military Housing) • 234 Units of Housing • 3 Drydocks • 4100 Civilian Workers (excluding apprentices) • 32 Naval Officers and 72 Enlisted Personnel

  6. History • Established June 12, 1800 • Treaty of Portsmouth - 1905 • Museum and Visitor Center

  7. Shipboard Microwave Wastewater Treatment Photoluminescent Technology Plasma Arc Cutting Wearable PC Technology Transfer Office Standing Wave Reflectometer High Performance Brush

  8. Key to Success is On-time, Affordable Quality Performance Increase Revenue • Technology Transfer • Partnering • Outleasing • Marketing Unique Capabilities = Affordability Reduce Operating Expenses • Process Improvement/Technology Transfer • Partnering • Outleasing • Facilities Consolidation/Demolition • Energy Conservation • SMART Base Initiatives More Customer Value

  9. Shipyard Hiring Plan Goal* Onbd Occupation FY97 FY98 FY99 FY00 FY01 FY02 FY02 Mechanics / 35 69 205 286 228 277 142 Apprentices Engineers/ 1 28 83 79 101 133 38 Technicians Clerical/Admin/ 5 11 11 17 6 9 8 Miscellaneous Fire/Police 0 8 10 23 20 8 8 Total: 41 116 309 405 424 427 196 *FY02 Goal subject to review upon finalization of FY03 workload (FY03 through FY05 hiring estimated in the range of 200 per year to account for attrition)

  10. Revitalization Apprentice Class - 1999 • Apprentice Program - Congressional Appropriations • Engineer Hiring • Demographics - Average age down from 48 to 45

  11. Age Distribution

  12. Optional Retirement Potential 4100 Employees 2000 First time eligibles by FY 1794 1800 Total projected retirements by FY @ 25%/yr (20% FY01) 1600 Cumulative eligibles (assumes no retirements) 1400 Cumulative eligibles given 25% annual retirement rate (20% FY01) 1200 PNS Employees 1000 820 800 698 560 600 491 Actual 32 YTD 26 435 365 400 211 207 256 153 192 193 175 176 170 200 173 158 165 171 161 140 123 119 109 91 64 34 0 as of 2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 May 01 End of Fiscal Year

  13. What is Lean? • First, Lean isn’t: • an inventory reduction program • a housecleaning program • Lean is a War on Waste: • Lean Manufacturing defines waste as actions that do not add value to the product • Value is defined as actual changes to the product that the customer wants • Naval ship maintenance industry has non-value added but required process steps • Lean Manufacturing applies in maintenance/repair industry • Lean Production (MIT-Womack) • T.P.S. - Toyota Production System (Toyota) • WCM - World Class Manufacturing (Schonberger) • FPS - Ford Production System (Ford) • BPS – Boeing Production System (Boeing)

  14. Transport Inspect Waiting Re-Install Machine Machine Remove From Ship Set-up Inspection Time Raw Finished Material Product Lead-time Transport Parts • Value Added Time is only a very small percentage of the Leadtime. • Traditional Cost Savings focused on only Value Added Items. • BETTER: LIST ALL STEPS AND TARGET THENON-VALUE ADDINGONES! = Value Added Time = Non-Value Added Time (WASTE)

  15. Traditional vs. Lean Results Traditional Process Improvement Results Focuses on improving the Value Added area Time Time -VS- Small Amount of Time Eliminated Lean Results Focuses on eliminating the non-Value Added area Large Amount of Time Eliminated Time

  16. The Seven Wastes in Manufacturing 1. Over Production--Producing more material than is needed before it is needed is the fundamental waste in lean manufacturing. 2. ExcessInventories--Material sits taking up space, costing money, and potentially being damaged. Problems are not visible. 3. Waiting--Material waiting increases lead time and cost without adding value to the product. 4. Producing Defective Products--Defective products cause rework, impede work flow and lead to wasteful handling, time, and effort. 5. Motion--Toolrooms. 6. Transportation--Moving material between work sites does not add value. 7. Processing--Over engineering, inspections, layers of document review.

  17. Inventory Hides Waste FINISHED PRODUCT TO CONSUMER RAW MATERIAL SEA OF INVENTORY LINE IMBALANCE LACK OF HOUSE KEEPING QUALITY PROBLEMS LONG SET-UP TIME POOR SCHEDULING MACHINE BREAKDOWN LONG TRANSPORTATION ABSENTEEISM COMMUNICATION PROBLEMS VENDOR DELIVERY

  18. Exposed Waste “Make Problems Visible” FINISHED PRODUCT TO CONSUMER SEA OF INVENTORY LINE IMBALANCE LACK OF HOUSE KEEPING QUALITY PROBLEMS LONG SET-UP TIME POOR SCHEDULING MACHINE BREAKDOWN VENDOR DELIVERY COMMUNICATION PROBLEMS ABSENTEEISM LONG TRANSPORTATION

  19. Lean Manufacturing Implementation • Leadership from the top Biweekly Focused Reading, Learning, Strategy Sessions with Key Managers • Move out with Focused Work Shops - they produce solid results Shop 31 Ball Valve Workshop • Reduce Mechanic Walk Distance by 60% • Improved Floor Space Utilization by 51% • Part Travel Distance reduced by 50% Average • Lead Time Reduced by 25% SHAPEC Job Summary Process Workshop • Engineer travel distance reduced by 96% • Handoffs reduced by 40% • Process Steps reduced 53% • Lead Time reduced from 55 days to 27 • Information Sharing with Industry

  20. Summary of “Tools” UsedBall Valve Repair Shop Rapid Improvement Workshop • Waste Walk • 5-S • Sort/Scrap • Straighten/Set In Order • Shine • Systemize/Standardize • Sustain • Visual Management • Brainstorming • Value Stream Mapping • “Just Do It”

  21. Specific Goals of Workshop: • - Improve Safety – 100% (Preventive Actions) • - Improve 5S • Identified 132 Tagged Items • Goal is to address 90 of them • - Reduce Mechanic Walking Distance – 20% • - Improve Lead Time by 10% • - Improve Floor Space Utilization – 25% • - Reduce Part Travel Distance – 20% • - Improve Visual Control Usage by 80%

  22. Before Situation Measures • Key Measures • Usable Floor Space – 1,710 Square Feet • Mechanic Walking Distance – 12,552 ft (2.4 Miles) • Lead Time – Average is 175 days (approximated) • 80 5-S Items Identified • Waste Walk • Identified 30 items (Motion, Transport, Waiting…)

  23. Before Layout

  24. Layout After

  25. Spaghetti Diagram

  26. After Mechanic Walking

  27. Ball Valve Flow Diagram

  28. After Ball Valve Flow

  29. Results • Safety • Reduced Clutter • Removed Tripping Hazard (Pallets) • Improved 5S • Identified 132 “tagged” items • Completed 104 items * Reduce Mechanic Walk Distance by 87% (60% Avg.) * Lead Time Reduced by 25% • Improved Floor Space Utilization by 51% * Reduce Part Travel Distance by 88% (50% Avg.) • Provide Visual Controls • There is a place for everything and everything is in it’s place * At completion of 30 Day Homework page

  30. LOW HANGING FRUIT • Procurement of removable chuck and long jaws • Initiating pre-engineered and pre-authorized fixes • Implementing of cold epoxy shim installation method • Moving X64 into X31 workspace • Certification Process

  31. Specific Goals of WorkshopCircuit Breaker Repair Shop Rapid Improvement Workshop • Improve Safety • Improve 5S • Identified 80 “tagged” items • Goal is to Address 40 items • Reduce Mechanic Walk Distance by 90% • Improve Lead Time by 40% • Improve floor space utilization • Reduce part travel distance by 50% • Provide Visual Controls

  32. Before Situation Measures • Key Measures • Wasted Floor Space – 588 Square Feet • Mechanic Walking Distance – 14,044 ft (2.7 Miles)[Add 1 mile for every X64 Mechanic trip to and from Bldg 60] • Lead Time – Average is 42 days • Part Travel Distance – 1886 ft [Add 1 mile for every trip to and from Bldg 60] • 132 5-S Items Identified • Waste Walk • Identified 12 items (Motion, Transport, Waiting…)

  33. Results Potential Improvement Current State Future State Value Added Time (Days) 10.5 10.5 0% Wait Time (NVA) 144.5 1 99% Repair Lead Time = 155 days 8.5 days 90+% Useable Floor Space (SF) 1,710 2,052 20% Walking Travel Distance (Feet) 12,552 2,385 81% Part Travel Distance (Feet) 513 410 20% Safety Improved 5S Provide Visual Controls

  34. Summary of “Tools” Usedin a Focused Workshop Environment • Waste Walk • Value Stream Mapping Before & After • Brainstorming • 5-S • Sort/Scrap • Straighten/Set In Order • Shine • Systemize/Standardize • Sustain • Visual Management • TAKT Time • 30 Day Homework List

  35. Project Evaluate Need for Scoping Mtg. ENGR NVAR P. Mgt. 1 Initiate JMLs for Long Lead & S/A DWG MATL List ENGR VA 5 x .3 = 1.5 New / Existing or Roll ENGR VA .1 YES NO Need More CU's? ENGR .2 - 3 d Current State J.S. Process Process Start Hold Scoping Mtg, if needed (e.g. 1st Time Shipalt, Large Job, Incorp Lessons Learned, DLs, DRs) PM. ENGR BSPO Schd NVAR 2 J.S. H. Assembles Draft Bubble Chart for Submittal to Project ENGR NVAR 2 J.S.H. send FIFO for Bubble Chart (Ident Funding) to Code ENGR NVAR 4 DM2 Re-issue Bubble Chart 0.3 hrs (usually white board available = no additional time reqd) Schd NAVR 1 All Preparers Review TM Index, SDI, MS, etc ENGR NVAR 10 2/ ea Run Report ENGR (LI/chgs) NVAR .1 Feedback for LI Scope Clarification ENGR NVAR .1 Initiate / add to J.S,- AIM ENGR VA .1 Assign JS Code for Prep. ENGR NVAR .1 BSPO Communicate Role over Source ENGR NVA Provide Initial J.S. Funds to Code ENGR NVAR .2 Codes Assign J.S. Holder ENGR NVAR .2 DM2 J.S. Holder Understand Work Scope & Players ENGR NVAR 8 Code Assigns FIFO Action NVAR .6 .2 each DM2 Prepare Bubble Chart for FIFO ENGR NVAR 6, 2 ea Set Scoping Meeting ENGR NVAR .5 J.S. H./Project Estimate Cost to Develop JS ENGR NVAR .5 Adjust Code Funding Project ENGR NVAR .5 J.S. H. submit additional FIFOs for CUPH Preps Engr NVAR 3 Assign FIFO Assign .2/ea NVAR .4 Receive L.I. from Ext Customer Auth. L.I. Ext Customer Load L.I./Chg AIM BSPO VA .2 hr 'F' Phases YES 1 d 1 d 2 d 7 d 2 d 2 d 1 d 3 d .5 d 1 d .5 d 1 d 1 d 14 d NO NO Make Changes on Proj Proj. Engr. 2nd etc people Wait 15 d YES 'F' Approv? 2 d 3 d Do it in the Project Group ASSIGN AIM Roles ENGR NVA .1 J.S.H. Prepare Bubble Chart ENGR NVAR 4 START ?? NO 3 d Initiate EWO DM2 BSPO NVAR .2 Get dwg/dist copies if not electronic ENGR NVAR .2 YES 62 d Wait Are Chg. Reqd? YES NO 1 d Issue S/A dwgs PY ENGR Separate Receive dwg from PY ENGR YES JS RVW Mtg END UPDATE Project J.S. Database ENGR NVA .1 NO Review dwgs for added AIM Cus ENGR NVAR 2 5 d Codes Prepare Shipcheck Packages ENGR VA 4 Interference Shipcheck VA 3 12 d Preparers Identify long lead matl. ENGR 5 x 2 =10 NVAR 10 All Preparers Acquire Refs (additional dwg/TM'S) ENGR 5 x .3 = 1.5 NVAR 1.5 JML Research Contact Vendors if not NSN Item. Determine. Sole Source if needed ENGR NVAR .3 Establish LLT Mat'l CUPH. ENGR NVAR .2 T-Code JML Review ENGR NVAR 5 x .3 = 1.5 Place LLT CUPH in "CPL" in AIM Include ENGR NVAR START MATL PROCESS J.S. H. receive marked-up prelim J.S. (JS Holder) 1 d 1 d YES NO 1 d Provide additional CUI's or provide feedback ENGR NVAR .3 Phase CU's per bubble chart ENGR 30 x .1 VA 3 Consolidate comments for chg. Engr NVAR .3 1 d 1 d Request CU's ENGR NVAR .2 Build CU assemblies if needed ENGR 10 x .2 = 2 VA 2 PHASE CUI assemblies to summary ENGR 10 x .1 = 1 VA 1 Make Corrections ENGR VA 2 YES NO a - Estimate tasks, utilize STDs b - Create task descriptions c - Layout tasking & hours d - Identify any remaining material Determine "F" CU-PH req'd dates Develop working prefab "F" CU PH schedule - Proj. Mgt. - Schd. Coduct Review Mtg. - WTC - Test - Zn Mgr - APS - Schd - BSPO NVAR 10 x 4 = 40 Identify prefab CU-phases (if any) ENGR Develop "F" CU-PH as 1st priority ENGR VA 3 x 3 = 9 Schd Review Meeting ENGR NVAR .2 Start Schd Process Schd 5 d 1 d 1 d Identify remaining required material ordering JML Review NVAR 10 JML ENGR 35 x .3 = 10 VA Review J.S. APS - 4 Zn Mgr - 16 Schd - 2 Test - 2 BSPO - 2 Shops - 12 NVAR 38 Initiate all other CU phases Develop CU phase (TGI short) task level ENGR VA 27 x 3 = 81 Transfer long lead material to end use CU-phase 5 x .2 = 1 ENGR VA All preparers submit all related FIFO's to Job Summary Holder ENGR 0 Place CU Phases in PRL (some projects opt to have tech code do in process) ENGR NVAR .2 Code Tech Review ENGR NVAR 30 J.S. H. review complete JS ENGR NVAR 24 J.S. H. submit prelim JS to project ENGR NVAR .5 Review to B.C. & update spreadsheet (database) Proj. ENGR NVAR 2 Route J.S. for review Proj. ENGR NVAR .2 6 d 10 d .5 d 1 d 1 d 1 d Develop QA Forms Validate line items associated to JS (PPS) Develop L.F. TGI's (tech code) Package approved TGI's (WPC) BSPO Chgs made VA 12 Submit summary corrections J.S. H. ENGR NVAR 2 Review corrected Prelim J.S. & update status (PE/IPS) ENGR NVAR 2 Approve JS in AIM & file (PPS) ENGR NVAR .2 Validate JS in AIM ENGR NVAR 2 7 d 1 d Compl EWO to BSPO NVAR .2 Start LF TGI process Conduct JS lead meetings to manage WIP (PE/IPS) -Code Leads -Proj. Engr. NVAR 1.2 'F' Phase Submit for CU-phase apvl (prior to summary submittal) ENGR 0 Revien "F" CU-Phases & review (correct where possible) ENGR, APS, IPS 3 x .2 = .6 each NVAR 1.8 Approve "F" CU-PHASE ENGR 3 x .1 = .3 NVAR Start Packaging or TGI Processes .5 d 1 d PSNS Job Summary Creation - Before

  36. - Co-Located Team - Standard Processes START: INCORPORATE ASSIGN One JS “Owner” .5 COMMENTS J.ob Summary 12 PHASE DEVELOP 2 DEVELOP .1 CONFIRM BUILD TECH .5 APPROVE END PROCESS CU’S PER ALL PHASES STATUS BUBBLE W.B.S. CU REVIEW SUMM & START: BUBBLE “F ” Phase ALL CU PH APS / WITH CONTRACT - LF TGI CHART ASSYS ALL CU PH CHART PRIORITY TO PRL ZM 8 OR IN- TEAM - PACKAGING .2 .2 REVIEW 2 90 3 3 HOUSE 30 12 14 3 PREP SHIP UPDATE S/C XFER START METRICS CHECK PKG. LLTM SCHEDULING 1 & HISTORY PROCESS TO END USE 4 3 FILE Product Line 1 History START FILE Cross-Functional Core Team Self-Directed Reviews REMAINING STD. JMLS PACKAGE 10 MATL SPECALIST COMPL JML 10 1.5 LLTM CU MATL SPECIALIST PHASE ISSUE .2 MATL LLTM PROCESS 1.5 JML PSNS Job Summary Creation - After

  37. Results of the PSNS Job Summary Lean RIW Potential Improvement Current State Future State • Value Added Time (Days) 15 15 0% • Non-Value Added – Required 20 8 60% • Wait Time (NVA) 62 3 95% • Total Lead Time = 97 26 73% • Travel Distance (Feet) 30,744 2,464 to 13,944 55 to 92% • Process Steps 70 23 67% • Hand-Offs 58 10 80% • Primary Action: • Co-located, Cross-functional Team, FIFO’s replaced w/focused individual temporarily sits in a work area with the planning team.

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