Business Case Basis for Modifying/Improving SSRAC Standard Item Change Process

Transcription

1 Business Case Basis for Modifying/Improving SSRAC Standard Item Change Process Presented by Robert Birtalan JASRA September JINII Planning Session

2 Premise Modifications to NAVSEA Standard Items through SSRAC change process occur annually modification proposals , 74 proposals ( Deck Covering ) , 143 proposals ( Cleaning & Painting ) NSRP SP-3, 25 each Government- 19 each Public SY- 34 each Submarine 33 each Private SY s- 16 each RMC 16 each Other Std Items 109 proposals

3 NAVSEA Standard Specification for Ship Repair and Alteration Committee (SSRAC) SSRAC MEETING SSRAC # (SSRAC USE) Submitted by: Activity: SI No: Title: 1. Paragraph No: Page No: 2. PROBLEM: 3. PROPOSED CHANGE: 4. RATIONALE FOR CHANGE: MAJOR MINOR COST IMPACT? YES NO If Yes, describe cost impact SCHEDULE IMPACT? YES NO If Yes, describe schedule impact SUBCOMMITTEE ACTION TAKEN: STEERING COMMITTEE ACTION/INITIAL:

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7 3.8.8 The qualified contractor's representative shall witness or perform and document all tests and inspections within a 50-mile radius of the contractor's plant nearest to the place of performance of the contract The authority to witness or perform and document tests and inspections may be delegated to subcontractors who are MSRA or ABR agreement holders and have a current Quality Management System accepted by the SUPERVISOR. However, (G)-Point notification requirements shall not be delegated.

8 JASRA Costs Analysis (change 014) Item Units Assumptions Delete Estimate Estimated Labor Hrs/Evolution Rate Evolutions/ Availability Availabilities/ Year Increased Costs No Delegation 2.5 $ $2,550,000

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10 JASRA Costs Analysis (change 233) Item Units Assumptions (I) to (I)(G) Estimate Estimated Labor Hrs/Evolution Rate Evolutions/ Availability Availabilities/ Year Increased Costs 2 $ $1,020,000

11 JASRA Costs Analysis (change 233) Item Units Assumptions (I) to (I)(G) Estimate Estimated Labor Hrs/Evolution Rate Evolutions/ Availability Availabilities/ Year Increased Costs 2 $ $1,020,000 No Delegation scenario Prime 2 $ $612,000 On Site Sub Off Site Sub 2 Sub Prime 2 Sub 5 - Prime $ $688,500 $ $357,000 Total - $1,657,500

12 "Inspection" Points added this year: "START OF PROCEDURE" previously a (V)(G) or (I)(G) was changed to only (I)(G) "LIQUID PENETRANT INSPECTION" or "MAGNETIC PARTICLE INSPECTION" previously an (I) now an (I)(G) in "LIQUID PENETRANT INSPECTION" previously an (I) now an (I)(G) in "SEAT TIGHTNESS" previously a (V)(G) now a "(V)(G) or (I)(G)" with (I)(G) for Level I (NOTE: The other valve items were already this way this one may have been overlooked) The 4-E criteria used for inserting inspection points in Work Items now includes: Nondestructive Testing VT for weight handling equipment manufacture and repair - (I) Nondestructive Testing VT for corrective maintenance within the certified boundaries of cranes - (I) new (I) or (I)(G) "NONSKID MIXING AND APPLICATION" (depending on whether it's critical surface) in

13 Death by Ant Bites Increased Requirements Repair Budget

14 There are also some good things happening NSRP SP-3 Panel A model we can build upon and institutionalize

15 Where do we want to be? Where are we?

16 (product model) Over the last 10 years has GROWN to drive the cost of Preservation to its current level. A result of adding requirements without measuring the cost or risk vs. reward. What did you get for your dollar? NSRP your Industry Partner, Public Yards, NAVSEA 05P23 - Mark Ingle and Mega Rust are working together to reverse the effect of not having a PROCESS in place to make a business decision in preservation. The collaborative effort of NSRP SP-3, NAVSEA 05P23, CWP & Mega Rust Working Groups are an example of making an informed Business decision to reduce cost. It is the example of exactly what needs to happen to all SSRAC Standard Items working groups.

17 NSRP SP-3 Panel Feb Chair and Vice Chair met with Adm. McCoy at NAVSEA Action: Focus on the Cost Drivers in Preservation. He asked us to make sure we were collaborating with the Public yards and Mega Rust working groups for solutions Mar 2008 panel meeting - workshop to develop SSRAC proposals for revisions to Navy Standard Item Public Yards, RMC s, Mega Rust, Surf Prep Panel Jun 2008 panel meeting- review of current issues being worked by the various Navy groups Performed gap analysis to identify topics which would make good NSRP Panel Projects Public Yards, RMC s, Mega Rust, Surf Prep Panel Jun 2008 review Naval Vessel Rules Part 8, Chapter 4 (NAVSEA Standard Item ), Coatings And Corrosion Control Completed a Whitepaper at ATI s request discussing the benefits of having one governing document for Navy paint.

18 SP-3 Panel CONTINUED Jul 2008 Admiral McCoy directs Public yards to use SI as paint requirements document Jul presented Panel proposals to SSRAC Aug presented NSRP Surf Prep Panel activities at MEGA RUST Action considered complete; engagement will continue Aug 2008 ATI awarded contract to fast-track Single Coat use in private shipyards at Admiral McManamon s request Oct 2008 joint panel meeting with SP-1, Environmental Nov 2008 completed project to Fast Track Single Coat use in private shipyards Completed in under 3 months Private shipyards continue to adopt technology

19 SP-3 Panel CONTINUED March joint meeting with NACE and MEGA RUST mid year update developed SSRAC proposals June 2009-Delivered Final Report: How to Inspect Flash Rust Manual June joint meeting with MEGA RUST: NSRP/Public Yards/NSTC. Very productive, focus on cost drivers: SSRAC proposals, Paperless Paint, & Flash Rust. The Collaborative Effort is producing results. July SSRAC, 27 proposals submitted by SP-3. Private and Public Yards are working with one document and a common goal to remove waste, reduce cost and maintain quality in preservation. Sept Delivered Final Report: Reduced RH requirements Sept Delivered Final Report: Flash Rust Phase Two (final)

20 NSRP Role in Navy Ship Painting Process Improvement Approval and Institutionalization Tech Warrant Holder Approval SSRAC Data Gathering, Solution Development, and Process Demonstration NSRP Panel Projects Cumbersome Work Practices Paint Task Force Process Improvement Opportunity Identification Cost of Corrosion Working Group NSRP Meetings and Workshops

21 Collaborative Effort Results NSRP Proposal Outcome 30 NumberofProposals Rejected 15 Favorably Received but not adopted 10 Adopted

22 Summary SSRAC is a very good and valuable process. Provides and annual review and updating of the NAVSEA Standard Items. Provides a forum for discussion and debate wrt the technical adequacy of the Standard Items.

23 However, the SSRAC process does not require vetting of independent estimates of the cost of proposed changes. No formal process or requirement for a class C, class F or Government estimate. No formal process such as scoping conference, TAR or other comparison prior to incorporating the change. Executive Steering Committee final say in changes 10 members 7 Engineers 1 Legal Counsel 1 Coordinator 1 Contracts ( Added this year )

24 Technical people making technical and business decisions Decisions to modify the NAVSEA Standard Items which Automatically get incorporated into future contracts should be a joint Technical and Business decision. The SSRAC process has continually increased the cost of standard processes over the years. The process could just as easily be used to effectively ratchet down the cost of standard processes with some relatively minor improvements.

25 Recommendations SSRAC NAVSEA Standard Item change process should be modified to provide true cost vetting by both government & commercial parties to ensure cost savings are accurately reflected and hidden costs are exposed Task NSRP ( Joint Government and Industry forum ) to develop a standard format to provide Government and Industry estimates and a process to vett the differences.

26 Recommendations - continued The NSRP Tasking should include the development of standard assumptions that Government and Contractor estimators could use for cost analysis. Such as, but not limited to; Labor Rate Various Availability sizes # of Availabilities per year # of Ship Repair Contractors Etc.

27 Death by Ant Bites Increased Requirements Repair Budget

28 Unnecessar y Costs New improved SSRAC/NSRP Formula by JINII The Increasing Requirements Process Cost Creep

29 Questions

30 BACK UP SLIDES As Modified (I) (V) (G) inspections Proposal #129 NSRP Proposal list touch up for tanks 11 (G) points SSRAC Charter wrt Steering Committee and Technical Warrant Holders

31 As Modified

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33 Proposal #124- example

34 Proposal #124- example, continued.

35 Proposal # SSRAC NSRP Description Action Taken Proposals which were substantially accepted 84 Most NAVSEA approved ASTM 718's allow storage temperature of 40 to & 16 degrees Fahrenheit - revise accordingly Clarify QA checkpoints for items that are powder coated. Terminology for paint/nonskid/coating should be standardized with terminology. Terminology for paint/nonskid/coating should be standardized with terminology. Identify sumps as part of the RAST track trough and surface ship bilges. Submittal of CAPS sheets is not needed when using CQATK. Submittal requirement for CAPSHEET is non-value added and causing delay and disruption and cost/schedule impact. Delete paragraph in its entirety. Amount of profiles to be taken when over 1,000 and under 2,000. How many need to be taken for less than an additional 1,000? Change to read one reading per additional 500 sq. ft or less. All three paragraphs specify additional readings required "for each additional 1,000 square feet." Add "or increment thereof" consistent with language in SSPC PA-2. Give direction for conductivity/chlorides to be taken when over 1,000 and under 2,000 sq ft. Stripe coat listed under one coat system, Attachment A. Change second sentence of to read, "Unless otherwise stated in tables and lines, this excludes any stripe coats." With single coat, rapid cure coating system, DFT's may be taken IAW Attachment A in lieu of the application of a stripe coat. This direction is provided in the Tables and should be indicated. Allow 85 percent relative humidity during touch-up. Clarify the extent of cure which must be carried out at 50 percent relative humidity. Allow 85 percent relative humidity for small tanks and voids. Modify to allow 85 percent relative humidity for shop work. Add dirty drain collecting tanks to line. Modify requirements for fuel oil service/storage tanks for consistency with 15 CCAM. Change to read, "Data logger shall collect data at a minimum of every four 8 & 17 hours" vice every five minutes. Allow contractors to add a salt remover to potable water at the water wash 22 step, in lieu of repeated water washes to remove chlorides. Adopted as modified to allow storage temperature of 50 to 90 degrees Fahrenheit. See SSRAC #085. Paint vendors agree there is a cost savings. Adopt as modified - QA checkpoints still required for critical coated areas listed in 3.7. Adopted as modified. Changed throughout Adopted as modified. See SSRAC #099. Adopted as modified. "(including sumps)" Withdrawn by originator. See 111 Adopted as modified. Information will be in database. Adopted as modified. Adopted as modified. Adopted as modified. Adopted as modified. Not adopted. See SSRAC #146. Adopted as modified. See SSRAC #074. Adopted as modified Adopted as modified. Requirements will be changed in Tables for CHT and chain lockers only. Not adopted. Covered by Adpoted as modified - Table 4, Line 6-8 Adopted as modified. Added new Note to not require painting of fuel tanks. Adopted as modified. See SSRAC #123. Adopted as modified. Proposals which were positively received but action was deferred Allow retention of pre-construction primer on tank stiffeners as per Not adopted. Pending NAVSEA tank inspection and more

36 PAINTING PROCESS 11 G points for one area over 10 square feet Obtain item and review all paragraphs, man hours and material cost Order required amount of primer/paint/supplies. Conduct paint sampling process and get sample analyzed. Determine if paint sample is non hazardous or if toxic abatement is required (action levels higher than 50ppm for Chromium, Cadmium & Lead). Identify paragraph specific to paint craft and utilize lines specified in Determine if area is a critical coat or not. If the area is critical, is the area over 10 sq.ft. or 1% of total area? Submit blast media certification to the Government (if blasting is required), Complete Appendix 8 in CQATK or if paper submit CFR with Appendix 8 (CAPS Sheet) if over 10 sq. ft. or 1% of total area. 10. Set up ventilation and services required (air/electric) 11. Set up Blast equipment (if required) 12. Mask and protect non-affected areas/equipment G point 13. Clean/degrease the complete area to SP-1 standards G point 14. Record ambient and substrate surface temperatures, relative humidity and dew point during preservation process (QA Checklist Form Appendix 1) 15. Call out SP-1 checkpoint (QA Checklist Form Appendix 2) G point 16. Begin preparation procedures (Blast/power tool clean) 17. Record paint storage temperatures 24 hours prior to application (QA Checklist Form Appendix 1) 18. Call out checkpoint Surface profile (QA checklist form Appendix 3) G point Surface Conductivity of Chloride test results (QA Checklist Form Appendix 4) G point and surface cleanliness (QA Checklist Form Appendix 5) G point 19. Begin priming coat application 20. Break down blast equipment, call of rental and retrieve services 21. Call out Dry Film Thickness(DFT)/Holiday checkpoint G point for prime coat(qa Checklist Form Appendix 7) G point 22. Begin stripe coat application 23. Call out Stripe Coat Holiday inspection (QA Checklist Form Appendix 7) G point 24. Begin top coat application 25. Call out Top Coat (DFT)/Holiday checkpoint for G point Top Coat(QA Checklist Form Appendix 7) G point 26. Remove all protective measures and clean up all industrial debris 27. Conduct touch up of the affected area 28. Notify all concerned, when coating system has reached its cure time 29. Review all Appendixes and sign off as completed in CQATK/or submit CFR with 72 hours of completion of critical coatings.

37 NAVSEAINST D is the SSRAC "Charter" which states with regard to the Steering Committee, "The two main functions of the Steering Committee are to act on recommendations received from subcommittees (final point in the decision making/approval process) and to handle issues that cannot be resolved by subcommittees or issues that may be beyond the scope of any one subcommittee." As for the SSRAC subcommittees, the Charter states, "Subcommittees review proposals on issues relating to their technical/trade specialties and provide recommendations to the Steering Committee with supporting rationale. In general, the NAVSEA Technical Warrant Holder for a specific warranted area will be a member of the corresponding Technical Subcommittee."

38 Certified vrs Qualified persons Number of additional certified persons per shipyard Cost to get certified (/3 for annual cost) Est. # of shipyards Additional cost per hour for certified personell Hours per year Annual cost increase to Navy budget Estimated # of Shipyards; Mayport Norfolk San Diego Northwest Hawaii Total $ $ $ 1 1, $ $ , $ $ , $ 263, $ TRUE 5 1, $ $ , $ 10 1, ,600.00