1. WAF – WPC Value 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 WAF – WPC Project Team Scheduling Project Team 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. A systematic approach throughout an organization to: –Specify value by specific product –Identify the value stream for each product –Make value flow without interruptions –Let the customer pull value from the producer –Pursue perfection Source: Lean Thinking, Womack & Jones, 1996 Definition of Lean Thinking Product: Anything that flows from input to output.

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 95%5% Traditional Focus Lean Focus Value Adding activitiesNon-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 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 Setup Reduction Standardized WorkBatch ReductionTeams Quality at Source 5S SystemVisualPlant Layout POUS Cellular/FlowPull/KanbanTPM Value Stream Mapping Continuous Improvement

16. Lean Overview Customer Service Order Entry/ New Accounts Credit CheckDistribution 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 Product Family Current State Map Future State Map Plan and Implement How the process currently operates. The foundation of the future state. Designing a lean flow. Using the Value Stream

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

21. Standardized Work Where there is no Standard, there can be no Kaizen.-- Masaaki Imai Three Elements of Standard Operations: 1. Takt Time 2. Work Sequence 3. Standard WIP Standard Operations Sheet Debur Machine Drill Grind QA Clean 2 4 3 56 1 Takt Time 4 min Cyc Time 4 min Std WIP = 6 Quality ChkSafety Focus # of Emp 2 Make it Visible!

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

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

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

28. How Do We Know We’re on Target?

29. Project Approach

30. –Project Timeline –Project Agenda –Process –Ground Rules –Management Support

31. Next Steps