WAF – WPC Value Stream Mapping Project Preparation and Training

1. WAF – WPCValue Stream Mapping Project Preparation and Training Prepared for: WAF & Work Packaging Control Project Team (10 August 06)

2. Agenda • Introduction • Steering Committee • Scheduling Project • Objective • Steering Committee • Projects • Teams • WAF – WPC Project • Goals • Scope • Lean Overview • What is Lean • Where is Waste? • Value Stream Mapping • Improvement Solutions • Project Approach • Project Agenda • Ground Rules

3. Project Objective • Scheduling Project Objectives: • Everyone working to the same priority and plan (coordination). • Non-stop progress of work.

4. Involvement • Steering Committee: • Leo Falardeau, CO • Bob Finley, XO • Tom Sweeney, Technical Director • Harry Spafford, Union President • Gerald Mackaman, RO • Mike Hader, PMA • Miles Prescott, Weapons PMA • Steve DeWitt, Planning Department Head • Bob Thran, Deputy Planning Department Head • Jill Winkelman, Georgia Tech • External advisors as appropriate/needed: Commodore, Boat Captain, NSSC

5. Steering Committee • Roles and Responsibilities of Scheduling Steering Committee: • Be Leaders • Provide • Leadership • Guidance to working groups • Resources • Command vision/direction • Encouragement • Objective feedback • Timing/boundaries • Monitor results/quality control • Manage change (change management)

6. Involvement • WAF & Work Packaging Control • Project Team: • Mike Hader, PMA • Bob Thran, Planning • Andy Lowe • Chief Martin, Chief Discher or other (as designated by Andy Lowe) • Moore, PO (or other designated by PMA) • Refit manager • Mixson or Emerson • Mel Garmin, Planners • Supervisors June Byrd (alt. Dave Crosby, John Parsons or Lonnie Smith) • Dennis Kapparis, GF (alt. Steve Swan) • Wayne Collier • Ms. Liz Pittaluga, Code 700 • Jill Winkelman, Georgia Tech

7. WAF – WPC Project Goals • *Reliable, consistent method for opening WAFs (consistent by shop and boat, by tagouts and non-tagouts…) • Standardize process • Standardize WAFs • Reduce WAF Process/Scheduling/Review Time of General Foremen and Supervisors • (with consideration to emergent work)

8. WAF – WPC Project Scope • Regular refits with consideration of ERP’s • TRF Work Only (includes TRF Alts) • From the point of the job loaded and screened to the point of the WAF (Work Authorized) • From the point of Work Complete to the point of the AWR signed off. • (handle variation?)

9. Lean Overview

10. Lean Overview Definition of Lean Thinking Product: Anything that flows from input to output. • A systematic approach throughout an organization to: • Specify value by specific product • Identify the value stream for each product • Make valueflow without interruptions • Let the customer pullvalue from the producer • Pursue perfection Source: Lean Thinking, Womack & Jones, 1996

11. Lean Overview • VA vs. NVA • Value Added Activities (VA) • Activities that transform materials into the finished product • Customer willing to pay for • Non-Value Added Activities (NVA) • Activities that take time and resources (Waste) • Customer is NOT willing to pay for • Need to eliminate or minimize

12. Lean Overview Product Leadtime Traditional Focus 95% 5% Lean Focus Non-Value Adding activities Value Adding activities

13. Lean Overview • Cycle Time • One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” • Henry Ford, 1926

14. Types of Waste • Types of Waste • Defects: Rework or Scrap • Overproduction • Inventory • Waiting of parts/people/machines/paperwork • Transportation of parts/people/paper • Extra processing • Motion of people/machines • Unused employee ideas

15. Lean Overview Continuous Improvement Pull/Kanban Cellular/Flow TPM Quality at Source POUS Setup Reduction Standardized Work Batch Reduction Teams Value Stream Mapping 5S System Visual Plant Layout

16. Lean Overview Customer Service Order Entry/New Accounts Credit Check Distribution Center Shipping What is a Value Stream? What happens when you order something by phone…..

17. Lean Overview • Value Stream • Includes all activities related to getting from raw material to delivery of the product • Includes both value-added and non-value added activities • Includes the interactions related to the larger value stream

18. Lean Overview • Value Stream Map • Visual • Common language • Material and information flow • Identifying opportunities • Understanding impact • Current State • Future State

19. Lean Overview Using the Value Stream Product Family How the process currently operates.The foundation of the future state. Current State Map Future State Map Designing a lean flow. Plan and Implement

20. 5S Sort Set in Order Shine Standardize Sustain • A safe, clean, neat arrangement of the workplace which provides a specific location for everything and eliminates anything not required.

21. Standardized Work Where there is no Standard, there can be no Kaizen. -- Masaaki Imai Three Elements of Standard Operations: Standard Operations Sheet Clean Grind • Takt Time • Work Sequence • Standard WIP 1 2 Machine 4 Make it Visible! 6 5 3 QA Debur Drill Takt Time Cyc Time Std WIP Quality Chk Safety Focus # of Emp 4 min 4 min = 6 2

22. Quality at the Source • Pass • Fail • Places responsibility for quality on the worker doing the job • Promotes doing the job right the first time

23. Point-of-Use Storage • Raw materials stored where used • Frequent, small shipments from vendors • Requires trustworthy workforce • Simplifies physical inventory tracking

24. Batch vs. One Piece Flow Process Process A B Lead Time: 30+ min. for total order 21+ min. for the first piece • Batch & Queue Processing Process C 10 minutes 10 minutes 10 minutes • Continuous Flow Processing Process Process Process A B C 12 min. for total order 3 min. for first piece

25. Setup Time • The time from the last good product of the previous run to the first consistently good product of the next run. • Gathering necessary items • Exchanging parts • Positioning parts • Making adjustments

26. Pull System / Kanban • Make to Order versus Forecast. • Signals (Kanbans) communication tool for production. • Producing at the rate of the customer buying the product.

27. Takt Time Calculation Time Available = Takt Time Demand Takt Time = Example: Time Available = 25,200 seconds (one shift) Demand = 200 Gold Buzz per day 25,200 = = 126 seconds 2.1 minutes 200 units

28. How Do We Know We’re on Target?

29. Project Approach

30. Project Approach • Project Approach • Project Timeline • Project Agenda • Process • Ground Rules • Management Support

31. Next Steps