When the First Shot has to Count... Count on Letterkenny Defense Acquisition University Lean Aerospace Initiative (LAI) Education Network COL William A. Guinn Commander, Letterkenny Army Depot 16 October 2003 16 Oct 03 UNCLASSIFIED

Where We Are … 300 miles 65 miles south of Harrisburg, PA International Airport 200 miles 100 miles Vicinity Chambersburg, PA - 4 miles off I-81 Letterkenny Army Depot, located in south central Pennsylvania, is strategically located within easy access to Pennsylvania Interstate 81 and close proximity to the Pennsylvania Turnpike. 50 Miles south of Harrisburg International Airport 120 miles north of Ft Belvoir, VA 16 Oct 03 UNCLASSIFIED

Our Facilities … Bldg. 370 296K sq. ft. Bldg. 320 66K sq. ft. Bldg. 350 318K sq. ft. 19,430 ACRE FACILITY Letterkenny, the most Advanced Military Missile Maintenance Facility in the Department Of Defense, is DOD’s Tactical Missile Center and Center of Technical Excellence (CTX) for HAWK, PATRIOT, AVENGER, ATACMS, SPARROW and HELLFIRE. The depot is fully certified in Contractor Certification Program (CP2), which is the Army’s quality certification program. Expanding on ISO 9000, CP2 sets the standards for innovation, quality and performance. These standards, the diverse capabilities, state of the art facilities, combined with a highly skilled workforce enable Letterkenny to provide superior products and services to posts, camps, stations and ultimately to the soldiers, our most valued customer. 17,950 Acres 798 K sq.ft. Industrial Shop Space Test Track Missile System Test Site Storage/Staging Areas Secured Site Major Item Overhaul Forward Field Support System Integration 16 Oct 03 UNCLASSIFIED

Letterkenny… a Model Depot Depot Wide Quality Certification Pursuing Certification for ISO 9001-2000 & ISO 14000 Public/Private partnerships Army Recapitalization 16 Oct 03 UNCLASSIFIED

Average Years of Service 22.5 Who We Are … On Board Strength LEAD = 1092 Contractors = 117 Average Years of Service 22.5 Average Age 49 16 Oct 03 UNCLASSIFIED

Where We Are At … Supporting Logistics Power Projection AFSC Korea Germany LEAD AFSC Ft. Bliss AMC Field Support Centers (AFSC) provide Capability Forward 16 Oct 03 UNCLASSIFIED

What We Do … Customers Aviation & Missile Command Special Operations Command PATRIOT RECAP Hellfire SECONDARY ITEM REPAIR Army SF Navy DEVGRP GMV RESET ATACMs TOW HAWK Army Ranger Navy WARCOM Soldier Biological & Chemical Command Avenger MLRS Tank-automotive & Armaments Command BIDS BIDS M31A1 Containerized Chapel Force Provider JPBDS Trailer MKT 16 Oct 03 UNCLASSIFIED

Lean Is … Transforming The Depot Customer Focused, Eliminating Waste, Adding Value and Giving Back to the Customer 16 Oct 03 UNCLASSIFIED

LEAD Lean Methodology Overcome Inertia Plan to Lean in all areas Direct Command Involvement Select & Empower Change Agent Obtain Results-Oriented Lean Consultant Plan to Lean in all areas Maintenance, Support and Administrative Educate Workforce Core Team w/M&S Training Workforce Lean 101 Learn By Doing just do it!!! Appointed a steering committee to provide guidance and oversight Provide training at all levels Initial training provided to the leadership Additional workshops provided follow-on training to emphasize results 2-day formal training provided for change agents Awarded one Command-wide Contract to standardize implementation AMC-wide Provided resources to implement Developed metrics to measure success Began implementation on selected programs at each of the maintenance depots, followed-up with implementation AMC-wide to include the Administrative processes To provide continued emphasis, I hold a monthly IPR to track progress Execute for Success Key Metrics: Productivity & Safety Quality On-time Delivery Flexible Event Schedules 16 Oct 03 UNCLASSIFIED

Lean Progress 69 Lean Events completed. 5 Events In-process, 89 planned thru Aug 04. Just started ‘walking’. Union on Board Cost Savings for FY04 – FY09 Estimated at $25.3 million. 348 employees (32%) have engaged in Lean events. Approximately 43,149 square foot of interior and 41,963 square foot of exterior space has been identified for new business. Letterkenny Army Depot Chambersburg, PA 17201 Pay to PATRIOT LTPO $1,200,000 The sum of one million two hundred thousand dollars For: LEAN Savings COL William A. Guinn Commander, Letterkenny Army Depot Date 1 October 2003 16 Oct 03 UNCLASSIFIED

SUPPLY AND TRANSPORTATION Internal Value … SUPPLY AND TRANSPORTATION While Transportation Mission for FY03 increased 63.5% over FY02 with a Jan-Mar 03 surge of 99.5% over Oct-Dec 02 … … Backlog for Receiving … Process time reduced thru Lean efforts and new technology. LEANed 16 Oct 03 UNCLASSIFIED

Operation Iraqi Freedom 75,000 sq feet reduced to 48,000 sq feet Customer Value … Operation Iraqi Freedom Original Turn Around Time Reduced from 10 weeks to 3 weeks. Further reduced to 8.8 days during surge. 24 vehicles per week during surge FLOOR SPACE 75,000 sq feet reduced to 48,000 sq feet 1500 hours under cost GMVs - Nov 02 to present 233 - Special Forces 72 – Rangers 16 – East Coast Seals 10 – West Coast Seals 72 mod kits – Special Forces 16 Oct 03 UNCLASSIFIED

Operation Iraqi Freedom GMV Production Video Clip Lean At Work … Operation Iraqi Freedom GMV Production Video Clip 16 Oct 03 UNCLASSIFIED

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Your Soldier Essential Depot When the First Shot has to Count... Count on Letterkenny Questions … Your Soldier Essential Depot 16 Oct 03 UNCLASSIFIED