NSRP SHIPWAY 2.0 PROJECT

1. NSRP SHIPWAY 2.0 PROJECT Product Line 4: Assess & Select Event February 13-14, 2007

2. Agenda February 14, 2007 • Introductions/Welcome • Meeting Objectives • Overview of NSRP & SHIPWAY Project • Trident Submarine Value Chain Analysis • Identify Critical Value Streams • Select & Value Streams • Define Value Streams • Project Charter • Calendar of Events

3. Attendees • Capt Leo Falardeau, TRF KB • LCDR Steven DeWitt, TRF KB • Brett Mounsey, TRF KB • Mel Garman, TRF KB • CDR Mike Sowa, GRU-10 • Joe Mulcahy, TRF KB • Don Paugh, Electric Boat • CDR Gerald Mackaman, TRF KB • Keith Truex, SOSB Groton • Dave Mitchell, SPA Inc. • Caren Spahr, TRF KB • Jill Winkelman, Georgia Institute of Technology • Lisa Hepinstall, Hepinstall Consulting Group, Inc.

4. National Shipbuilding [& Ship Repair] Research Program Collaboration on Technologies and Processes to Boost Naval Capability Per Dollar – Asymmetric Attack on Cost Drivers in Ship Construction & Repair Mission - Manage and focus national shipbuilding and ship repair research and development funding on technologies that will reduce the cost of ships to the U.S. Navy and other National Security Customers by leveraging best commercial practices and improving the efficiency of the U.S. shipbuilding and ship repair industry. Provide a collaborative framework to improve ship-related technical and business processes.

5. SHIPWAY II • Lean Best Practice • Value-stream focused • Standard Work Elements • Business & Information Processes • Supporting Naval New Construction & Naval Ship Repair NSRP Recently Awarded SHIPWAY II Phase I : January 2007 – January 2008

6. Project Objectives • Identify and validate the new construction and repair business processes that yield the greatest leverage in driving mutual Naval & Industry success • Develop and streamline the identified business & information processes into value stream focused standard work elements using lean principles • Implement the streamlined processes and assure sustainment • Integrate the solutions in a coordinated manner for all affected value chain members so that waste is minimized and recognized throughout the chain by the PEOs

7. Project Scope Intersection: Wasteful business processes used by industry partners

8. Product Lines • Product Line 1 – Carrier Repair (Todd/PSNS) • Product Line 2 – LCS New Construction (Bollinger/SupShip Gulf Coast) • Product Line 3 – Surface Ship Repair (Atlantic/SERMC) • Product Line 4 – Submarine Repair (TRF-KB/EB, PSNSY & IMF-Bangor)

9. SHIPWAY Product Lines PL 1 PL 2 PL 3 PL 4

10. Project Approach (updated)

11. Project Approach

12. Review of SHIPWAY IFocus Areas • PL 3: Developed Standard Life Cycle Maintenance Model for USCG Deepwater Assets • PL 1: Developed interface between Atlantic’s AS400 server and Navy Maintenance Database • PL 1: Developed the “skeleton” for Future State Integrator Engine and GUI (AMHC Intranet) • Eliminated manual re-entry of data from Atlantic Marine’s computer system into NMD. • “Auto-notification” created for changes in NMD • Reduced cycle time for growth and new work • Developed and posted over 40 Standard Process Procedures (SPPs) • PL 4 : Created Preservation Planning Tool • PL 4: SSGN Fly-Away Team Maintenance Model • PL 2: Streamlined the process of becoming EVMS Certified through large-scale lean transformation of business processes.

13. Review of SHIPWAY I Results • Product Line 1 was able to accommodate 25% additional work during a recent SRA due to an improved ship check process that allowed for earlier scheduling of potential growth work. • PL 1 is also forecasting a 5% cost savings due to improved connectivity between contractor and government computer systems. • Product Line 2 is forecasting a 10% man-hour savings for LCS new construction, along with a 5% cycle time reduction. • Product Line 3 is forecasting an 8-10% reduction in maintenance & modernization costs through their work on the Life Cycle Maintenance future state. • Product Line 4 has a plan in place to achieve virtually 100% high-solids paint application for all Kings Bay SSBNs in tanks, superstructures, voids and recesses by the end of CY 08, greatly reducing the need for future structural repairs.

14. Submarine Repair Product Line • Purpose • To provide the war-fighter with quality industrial and logistics support by incremental overhaul, modernization, repair and replenishment of submarines. • At the right price • To increase the Ao.

15. Trident Submarine Repair Value Chain

16. Trident Submarine Repair Value Chain

17. Trident Submarine Repair Value Chain • Value Chain Concerns • Ship underway on time • Lost workdays / injuries • Unscheduled return to port due to material failure/issues • Improvements in productivity • Nuclear Weapons Security (Force Protection) • To ensure that we get the SSBN’s underway – escorted by the Screening vessels • Human Resource Capacity • Facilities Capability – Machine Technology 20 yrs old; part obsolescence

18. Trident Submarine Repair Value Chain • Value Chain Challenges • Human Resource Capacity • Facilities Obsolescence • Decreasing funding levels and maintenance budgets • Aging Work Force – diminishing skill level • Increased modernization activity – ILS and training insufficient • Increased expectations regarding Project Management – how to implement best practices while maintaining nimble PM infrastructure; • Significant pressure to increase current oversight responsibilities • Multiple projects in process simultaneously • Execution of Fly-Away Team Model • TRF performing rework that was originally performed by AIT. • Age of submarines – increase maintenance workload/demand • Increase in complexity of maintenance requirements • Increase in maintenance requirements based on de-scoping shipyard work package and color of money limitations…overflow from shipyard requirements • Nuclear work – competing priorities for TRF Executive Team

19. Trident Submarine Repair Value Chain

20. Trident Submarine Repair Value Chain

21. Trident Submarine Value Chain • Product Line 4 – TRFKB Metrics • Potential Product Line Metrics • Primary Metric – Decrease availability duration for both typical refits and modernization refits (increased Ao) • Secondary Metrics – Increase reimbursable work to enable more level loading of resources • Decreased average refit maintenance cost (normalized) • Reduce maintenance backlog • Potential Value Stream Metrics • AIT Modernization cycle time (Benchmark vs previous alts – Florida MMP) • Tank preservation cycle time, tanks per month preserved

22. Trident Submarine Repair Value Chain Important Value Streams within the Value Chain • Work Integration of Rapid Curing High Solids Tank Preservation • Advanced Maintenance & Logistics Planning of the Force Protection Screening Vessels Value Stream • Submarine Modernization Integration • Work scope definition value stream • Submarine Class Maintenance Plan (SUBMEPP) (for a class of ship) • AWP (specific for an availability) for CNO avails including SSGN MMPs (SUBMEPP) – E-specs – • Process and system for identifying and controlling reimbursable work • Work Flow Integration of TRF Feeder Streams (TRIPER, Inside Shops, etc) • Resource Allocation • Work and Schedule Integration • Surge Capacity and Capability - SHIPWAY 1 • Execution Control • Contracting Value Stream • Fly Away Team Model Development – SHIPWAY 1 • Fly Away Team Execution

23. Work Integration of Rapid Cure High Solids Tank Preservation Value Stream • Purpose • To develop the standard processes required to contract, plan, schedule, execute, and control the application of a rapid curing coating system on the Trident Submarine Product Line. • Current Method • Current process does not exist – emergent technology • Approved by NAVSEA 07 • NAVSEA 05 Technical Process Instruction exists for the application of the coating. • TRF personnel experienced at using high solids coating systems • Desired Outcome • Reduce cycle time of Refits and preservation process • Validation of the NAVSEA 05 Technical Process Instruction for Rapid Curing Paint Application. • Gain expertise within TRF to utilize rapid curing paints/coatings • Transfer expertise to other contract community and other public yards • Contract in place with service provider that allows TRF to utilize contractors to apply • Process Owner: Paul Fender and Bob Thran • Process Participants – Shop 71A, PSNS, PNSY, NAVSEA 05, Code 413 –Engineering, Safety – Code 108, Union, Atlantic, EB, Todd Pacific

24. Submarine Modernization – AIT Integration Value Stream • Purpose • To develop and execute a standardized approach to integrating the submarine modernization package during a modernization period. The standard approach would include the following: • Integrated Processes • Organizations roles/responsibilities • Logistics • Planning Elements • Execution • Control and De-conflict (Space, Resource, etc) • Current Method • Multiple organizations involved with competing goals • TRF experienced in performing modernization • TRF installations have been successful - • Overarching MOA exists that establishes roles and responsibilities • No single point coordination of the installation planning and certification • Some level of integration in the schedule • Standard planning elements do not exist for all modernization work. • Authorization and Approval is sometimes “interim” approvals instead of final approvals which impact ILS delivery • Modernization Work gets deferred. • Desired Outcome • Increase accountability and visibility into AIT work scope • Daily integration of modernization activities • Minimize AIT Modernization Cycle Time • Process Owner – Mel Garman • Process Participants –NUWC, SOSG-EB, TRF Code 741, Cindy Straney, Code 303 scheduler, SPAWARS, PMS392, NSSC – Naval Submarine Support Center, Tycom (Lt Hallas),MARMC)

25. Advanced Maintenance & Logistics Planning of the Force Protection Screening Vessels Value Stream • Purpose • To develop the standard maintenance plan and define the supporting value stream infrastructure to sustain the maintenance activity of screening vessels to enhance the force protection security of Trident Submarines. • Current Method • Current process doesn’t exist within the Submarine Repair Value Chain. • Insight into current state can be gleaned from maintenance of surface ships. • Desired Outcome • Developed the Maintenance Value Stream and supporting tools for Maintenance Support (O & I Level) of Screening Vessels. • Developed a Level loaded Logistics Plan • Incorporated the Maintenance Requirements for Screening Vessels. • Defined organization’s roles and responsibilities • Process Owner – Mel Garman, • Participants – Code 303 Ray Paquin, Brett Mounsey, Fred Madeja, Dave Mitchell, LCDR Meron (Port Operations), SP (CDR Luck), NSSC, EB, Subbase, SERMC, SWFLANT,

26. Work Scope Definition Value Stream • Purpose • This is the process that documents the technical and business requirements of a submarine asset for a given maintenance period. • Current Method • Work scope is defined by multiple groups over several iterations of advanced planning. • Multiple funding streams influence work scope prioritization • Some maintenance and modernization work is deferred. • Desired Outcome • There is a streamlined, reliable, repeatable method that identifies the technical work scope for a given submarine maintenance period to ensure the asset maintains optimal operational performance. • Process Owner – LCDR Steve DeWitt • Participants – John Hart Code 740, Brett Mounsey, EB, Atlantic, SERMC, NSSC, Comptroller,

27. Resource Allocation Value Stream • Purpose • To identify and allocate resources to meet the customers’ work requirements in the most efficient manner • Current Method • PMA sets the priority • Mitigate workload peaks through OT • Desired Outcome • Process to manage limited resources among multiple customers • Process to identify formal requirements at an Enterprise level? • Prioritizing shared resources process • Streamline information & communication • Process and contract in place to use outsourcing to mitigate workload peaks… • Process Owner – Mel Garman • Participants – John Hart Code 740, Brett Mounsey, EB, Atlantic, SERMC, NSSC, Comptroller,

28. Selection Criteria • Business Core – What are the value streams that are at the center of the business and drive business activities. • Multiplier Effect – Which value streams, if developed, will have a multiplier effect on the business in that an improvement of these streams will yield a return in many of the other streams. • Cause and Effect of Waste – What are the value streams that are the source of the most waste, relative to the other streams. (structural waste or system waste) • High Leverage – If effort were to be focused on a vital few of the value streams that were thought to have significant impact on the business, and the other streams were not developed, which of the value streams would be considered this vital few. • Customer-centric/importance (integration of PEO expectations/goals/objectives) • Global impact (not shipyard specific) and applicability to industry and other organizations • Measurable results / VS cycle time needs to be within the duration of the project (preferably shorter) • Common/repeated problem areas (especially as seen by customer) • Definable ROI (for PEO/Program Managers/service providers) • Customer feedback (CPARs, surveys, etc) • Achievability / Impact Difficulty / Changeability • Impact on Operational Availability (shorter repair/construction availabilities)

29. Value Stream Selection Matrix 1 3 2 4 5

30. Value Stream Definition • For each selected Value Stream • Definition “This value stream is defined as….. • Purpose “The value stream exists because……” • Characteristics of the Current Method • Desired Outcome • Value Stream Boundaries (in/out) • Value Stream Owner • Participants

31. Elements of the Team Charter • Lead Organization • TRF KB – Capt Falardeau • Prime Sponsors • PEOSUB – RDML Hilarides • PEOSUB – Deputy – Richard McNamara • Sponsors • NAVSEA 04 – Jim Brice • TYCOM – Capt Bryant Fuller • CO IMF Bangor – Capt Ken Voorhees • Electric Boat – Dick Palmieri • GRU-Trident – RADM Frank Drennan • SP115 – Capt Jonathan Kan

32. Team Charter • SHIPWAY Project Mission • Developing Lean Best Practice (Value Stream Focused Standard Work Elements) for Naval Submarine Repair Business and Information Processes. • Problem Statement • Our current maintenance and management strategies and processes are not sufficient to meet future submarine maintenance requirements and mission changes. • Vision • The selected value streams will be streamlined and standardized will have considered all agencies concerned. • The efforts of this project will lead to an increase in Ao, increased throughput of maintenance activity, and decrease in refit cycle time.

33. Calendar of Events