AIRSpeed. BRIEF TO: DOD Maintenance Symposium & Exhibition

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1 BRIEF TO: DOD Maintenance Symposium & Exhibition CAPT Tim Trainer 5 September 20

2 Outline AIRSpeed Background Vision Organization Culture NAVAIR Depot AIRSpeed AIRSpeed Vision and and Goals Tools Execution Plan Plan Results to to Date Road Ahead

3 Naval Aviation Enterprise Where We are Today: Numerous process improvement efforts underway Stove piped, unlinked and and at at times competing Push vice vice Pull Pull systems Local decisions not not globally aligned Vision AIRSpeed: An Enabling Framework for achieving and sustaining costwise readiness across the Naval Aviation Enterprise.

4 AIRSpeed Guiding Principles The path to to costwise readiness is is properly managed in in this order Throughput MISSION Inventory/Investment.... Parts, Parts, Equipment & Facilities Operating Expenses FHP, FHP, O&MN, O&MN, Manpower Local decisions must be be aligned to to global impact!

5 PMs NAVRIIP AIP Management tie metrics and cost Senior Executive Leadership Training OID Level & Supply across the enterprise Methods: Lean, 6 Sigma, AFAST CPMB: Top Degraders TMS Teams Dollars Benchmark Metrics APN 1,2,3,4 FHP APN 5,6,7 MPN, O&MN RDT&E, NCWF AIR 3.0 Product Flow Cycle Time Reliability Cost

6 Enterprise Architecture On Acft Off Acft Retail ICP Wholesale Order/Issue Retrograde Buffer Mgmt TRR Lean Order/Issue Retrograde (ATAC) Buffer Mgmt TRR Lean DLA Repl TRR Buffer Mgmt NRFI RFI IMA NRFI RFI Distribution Depot NADEP OEMs? Lean? Repl DBR (TRR) DIFM Buffer Buffer Mgmt Lean 6 Sigma...enterprise architecture for AIRSpeed Repl WRA Buffer SRA Buffer Buffer Mgmt TRR Lean 6 Sigma Repl DBR (TRR) BCM Buffer SRA Buffer Buffer Mgmt PM Lean 6 Sigma Identifying and addressing interdependencies Managing and reducing variability Identifying and managing constraints

7 Tool Set Six Sigma Continuous Improvement Culture LEAN Management Commitment and discipline are essential to building and sustaining a Continuous Improvement Culture

8 AIRSpeed The NAVAIR Depot Vision.. Incorporate the the most current business initiatives to to enable reduced cycle times to to meet the the requirements and and needs of of the the 21st 21st century Warfighter and and beyond. Enhance responsiveness and and flexibility Increase the the velocity of of the the maintenance, repair, repair, and and overhaul process Eliminate waste waste and and inefficiencies Reduce the the cost cost of of Naval Naval Aviation Share, Share, export export and and integrate Depot Depot cycletime reduction initiatives across across the the enterprise through NAVRIIP Integrate Depot Depot efforts efforts with with Global Naval Naval Aviation Wide Wide AIRSpeed implementation

9 NAVAIR DEPOT AIRSpeed Plan An operating strategy that will leverage Theory of Constraints Dramatically improve depot cycle Lean principles time, reduce depot pipeline and increase the total Fleet supply Six Sigma chain velocity Provides structured, systematic methodologies to enhance depot responsiveness and agility to meet warfighter needs Systematic identification and management of that which limits the organization or system (Constraints). Targets sustainable process improvement to leverage the quickest and largest improvement to performance of the system. Systematic identification and elimination of non value added activity and process variation across the entire enterprise.

10 What makes AIRSpeed different? Time equals money What is the customer willing to pay for? = Non value added time (waste) = Value Added Time TurnAroundTime Value Added Time is only a very small percentage of the Total TurnAroundTime. TRADITIONAL PROCESS IMPROVEMENT RESULTS Time Savings New TurnAroundTime Traditional Improvements and Cost Savings typically focus on only the Value Added activity. Lean Six Sigma PROCESS IMPROVEMENT RESULTS Time Savings New TurnAroundTime Better Method: TARGET THE NONVALUE ADDED ACTIVITIES! AIRSpeed

11 Return on Efforts to Date TurnAroundTime Improvements: F404 HPC & Fan Cell F404 LPT Cell F404 HPT Cell PreEvent Present PreEvent Present TAT (days) TAT (days) Hi Pri Requisition Improvements: Plasma Central Process Center 0 0 PreEvent Present TAT (days) Clean Central Process Center PreEvent Present Pri 1 Units PreEvent Present Pri 1 Units

12 F404 HPT LEAN Event (July 2002) Before After Before After

13 IMPROVED H46 THROUGHPUT H46 WORKINPROCESS BEFORE MANAGEABLE WORKINPROCESS AFTER TURNAROUND TIME = 215 DAYS AIRCRAFT IN WORK = 33 TURNAROUND TIME = 150 DAYS AIRCRAFT IN WORK = 16 Work scope increased from 9000 hrs to 13,000 + hours! ABLE TO RETURN FULL SQUADRON TO FLEET, AHEAD OF SCHEDULE, WITHIN PLANNED COSTS AIRSpeed

14 AIRSpeed Process Improvements F/A18 PMI1 (CModel) Calendardays % Reduction Actual TAT Before Lean 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Month (CY02) % F/A18 Brake Cell 81% +59% After Lean 0 TAT Units/qtr Pre Event Post Event

15 NADEP Cherry Cherry Point: Point: Continuing AIRSPEED () () deployment throughout depot depot currently at at 70% 70% level level for for H46, H46, H53, H53, H1, H1, AV 8TUP, AV 8TUP, T64, T64, T58, T58, F402, F402, H53 Rotorhead H53 Rotorhead and and Gearbox Gearbox Drum Drum Buffer Buffer Rope Rope Implementation Implementation for for Components/Backshop Components/Backshop Processing Processing Critical Critical Chain Chain Implementation Implementation for for T400, T400, APUs APUs Operational/Performance Operational/Performance Metrics Metrics Implementation Implementation Related Related Business Business Process/SOP Process/SOP Development Development for for AIRSPEED (Six (Six Sigma) Sigma) effort effort ongoing with with GE GE for for T64 T64 SOW SOW inprocess for for AIRSPEED (LEAN) (LEAN) activities Estimated start: start: SEPT SEPT Depot AIRSpeed Status NADEP Jacksonville: AIRSPEED (LEAN) (LEAN) events events inprocess and and scheduled: Landis Landis Grinder: Grinder: MAR MAR (in (in process) process) Clean: Clean: MAR MAR (inprocess) (inprocess) Plasma: Plasma: MAY MAY (inprocess) (inprocess) NDI: NDI: JUL JUL Waterjet: Waterjet: SEP SEP AIRSPEED SOW SOW under under final final review: review: On On track track for for contract contract award award Oct Oct.. NADEP North North Island: Island: AIRSPEED AIRSPEED (LEAN) events inprocess events inprocess and and scheduled: scheduled: Components Components Shops Shops (nearterm) (nearterm) Landing Landing Gear Gear Shop: Shop: JUN JUN S3 S3 Strut Strut Shop: Shop: JUL JUL Brake Brake Shop: Shop: JUL JUL F/A18 F/A18 PMI1 PMI1 Line Line (near (near term) term) PMI1 PMI1 Assembly: Assembly: JUL JUL AutoCrib AutoCrib prototype prototype on on F/A18 F/A18 PMI1 PMI1 line line AUG AUG Process Process Audits Audits SOW SOW for for F/A 18 F/A 18 IMC IMC and and E2 E2 PDM PDM under final under final review. review. Contract Contract award award Sep Sep.. SOW SOW for for H53 H53 and and C2 SLEP C2 SLEP in in final final development stage. development stage. Contract Contract award award Sep Sep

16 The Road Ahead Overall Depot Plan: Continue ongoing Lean, Lean, Six Six Sigma Sigma and and rollout rollout FY05 Integrate with with centered Enterprise AIRSpeed AIRSpeedvia via T/M/S T/M/S rollout/deployment Integrate depot depot metrics metrics with with NAVRIIP Naval Naval Aviation Enterprise metrics metrics Support Enterprise conversion to to pull pull system system for for comp, comp, eng eng and and acft acftscheduling Invest Invest in in cycle cycle time time reduction where where it it makes makessense sense to to support CNO s CNO s Fleet Fleet Readiness Plan Plan and and Cost Cost Wise Wise readiness Utilize Utilize Enterprise AIRSpeed AIRSpeedto to prioritize cycle cycle time time reduction efforts efforts Warfighter Warfighter (customer) (customer) Establish Establish the the drum drum beat beat Harmonize Depot Depot CT CT reduction efforts efforts through Enterprise AIRSpeed AIRSpeed

17 The Road Ahead (Cont.) Optimized maintenance/supply chain produce only only what what warfighter needs needs when when it s it s needed Warfigther Pull Where Where most most efficiently produced Improve system velocity then evaluate capacity Retire Retire excess excess capacity savings Warfigther Retain Retain desired desired capacity RFT/O, RFT/O, FRP FRP surge Decision surge Integrate Factory with with the the fleet fleet Map Map Value Stream across the the enterprise Optimize to to meet RFT/O entitlement to to support CNO s Fleet Response Plan (FRP) at Least Cost