ARDEC Journey to Excellence

1. ARDEC Journey to Excellence COL Russell Hrdy Deputy Director 973-724-7000 Russell.hrdy@us.army.mil

2. FIRST FEDERAL & DOD RECIPIENT • OF THE MALCOLM BALDRIGE • NATIONAL QUALITY AWARD ARDEC • US Army Armament Research, Development and Engineering Center • Provide 90% of Army’s Suite of Armaments • No Single Counterpart in the World • Provide Battlefield Supremacy for Our Warfighters Vision – “Innovative Armaments for Today and Tomorrow”

3. 2007 Malcolm Baldrige Quality Award Recipient Large R&D Organization of the Year 86,95,99,00,04,06 NJ Quality Partnership Award 1996 First Use of Six Sigma, CMMI & ISO Knowledge Base Creation Army Performance Excellence Award Jan. 2006 CINC Community of Excellence Awards 96&00 Presidential Award for Quality 1996 Presidential Award for Quality Improvement 1999 US Army’s Greatest Invention Awards 2002-07 R&D Organization of the Year 1986&1995 R&D Center of Excellence Award 89,90,91,96,97 GPRA Driven Strategic & Business Planning Start of Formal Benchmarking Process Action Teams and Quality Management Boards Established Baldrige Category Champions Integrated Product Teams Middle Management Work Groups Power Down Formal Evaluation Of Baldrige Feedback On Opportunities for Improvement & Corrective Actions QIP Nomination Middle Managers Trained System Approach Adopted, Natural Work Groups PM Teams ARDEC’s Performance Excellence Journey CSA ACOE Award 96,99,00, 02 Reduced Cost Increased Quality Faster Cycle Times Increased Innovation Satisfied Customers System Owners Handbooks NJ Quality Achievement Award 1998, 2004 Legend: ARDEC “Triple Crown” Events Awards Vice President’s NPR “Hammer” Award Evolving Excellence Quality Improvement Prototype Award 1995 President’s Council for Management Improvement Award 1991 X PEG V X PEG IV Quality Circles X PEG III X TQM Executive Council Formed Vision Established PEG = Productivity Enhancement Group PEG II 1984 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2002 2004 2007

4. Enterprise Excellence Integrates Best Practices FY05 Adoption of Enterprise Excellence FY03 Adoption of Balanced Scorecard FY03 Corp Commitment CMMI, ISO, SE Continuous Improvement Started in Areas with Biggest Business Benefit FY01 First CMMI Certifications FY01 First ISO Certifications FY01 Corporate Commitment to Six Sigma FY00 Six Sigma, CMMI, ISO Starts FY95 Baldrige Management Framework

5. Level 1 ARDEC Centers Level 2 ARDEC Competency Directors / Office Chiefs Cascade of Strategies Vision / Mission Strategy Definition Level 0 ARDEC Corporate Lean Six Sigma Projects Linked to Strategy Strategy Execution Individual Employees Workforce has a Clear Line-of-Sight of What is Important

6. ARDEC Human Capital Management (HCM) Human Capital “Pillars” Strategy: Workforce Strategic Alignment Leadership: Succession Planning for Leaders Diversity: Demographic & Talent Diversity Culture: Embody a Learning Organization Talent: Recruit, Train, Develop & Educate Performance: Enterprise-wide Management Multi-Path Career Progression Succession Planning and Metrics Leadership Development Strategic HCM Mentoring and Rotational Assignments Recruitment Practices Personnel Evaluation

7. Applied Talent Management • Objectives of the HCMO • The integration of LSS Projects • The ARDEC HCC Charter • The Impact of the 10 year hiring freeze • Exit Interviews • Measurements of the HCMO • Strengthening Talent Pipelines • Proactive Recruiting, Talent Acquisition • Marketing ARDEC Plan Evaluate Acquire • Internal Flow of Talent • Improved Mentoring • Programs • Knowledge Sharing and Management ARDEC’s Human Capital Goals 1.Align and integrate workforce 2. Decentralized execution 3. Data driven workforce analysis 4. Organizational learning 5. Human Capital Strategic Plan Retain Engage Lead Develop • Employee Development • Talent Leadership for 1st Line Supervisors • Common attributes for Mangers/Leaders Deploy • Cross Functional Assignments

8. Learning & Development • Professional Development Key Workforce Expectation • Individual Development Plans • Armaments University On-Site • Master’s Classes On-Site • Teaming Fosters On-the-Job Training • Experiential Learning • Corporate Investment in Learning American Society for Training & Development International 2007 Best Award – 6th of 102

9. Knowledge Sharing • Approximately 50% of E&S Newly Hired • Organizational and Employee Knowledge Critical • Oracle Collaboration Suite (OCS) Repositories • Project Information • Lessons Learned • Process Asset Library • Armaments Knowledgebase

10. Bottom Line Results Effectiveness/ Efficiency 40% Less Workforce Execute40% More Work Diversity in Markets, Integrated Business Development Carryover Supports Business Sustainability Productivity, Effectiveness, Efficiency

11. ARDEC Strength: Customer & Market Focus Multi-point Voice of the Customer (VoC) Customers part of Strategic Planning & IPT Members

12. ARDEC Strengths: Work Environment & Systems Workforce Environment Horizontal IPTs Capability & Competency Knowledge Sharing Innovation & Continuous Improvement Work Systems Design Competency-Centric Organizational Structure Competency Management System

13. ARDEC Strength: Customer -Focused Outcomes

14. ARDEC Opportunities for Improvement Understand Product & Service Outcomes Primary HQ Focus on Top 40 Programs Performance & Schedule Not Measured for Majority of Programs Lack of Measures May Hamper Performance Assessment and Allocation of Improvement Resources Obtain Comparative & Competitive Data Other RD&E Suppliers Document & Control Several Key Work Processes Implementing Business Strategies Ensuring Full Implementation of Lean Six Sigma Outcomes

15. Summary • ARDEC is a Role Model • Journey Never Ends • Requires Commitment & Effort • Benefits Well Worth the Effort Estimated Baldrige Scores 2007 Recipient 500 Point ARDEC “Glass Ceiling” The Real “Winners” In ARDEC’s Journey