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NAVSEA LEAN Presented By Maggie Maguire NAVSEA Comptroller 13 June 2005

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

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NAVSEA LEAN Presented By Maggie Maguire NAVSEA Comptroller 13 June 2005

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

  2. 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 NAVSEA LEAN

  3. 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….. NAVSEA Lean is…

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

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

  6. 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 FY 2003 FY 2004 Quarter 1 2 3 4 1 2 3 4 1 2 Cycle Time (days) 208 176 148 140 100 82 61 53 54 45 Goal = 20 Days 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

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

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

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

  10. 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 The Lean Toolbox(NOT all inclusive)

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