1. Lean Manufacturing Implementation
Portsmouth Naval Shipyard
Portsmouth Naval Shipyard
Lean Manufacturing Implementation
Presented to:
Advanced Production, Quality and Manufacturing Course
Captain P. M. Delpero
30 April 2002

2. Overview Introduction/Background Shipyard Overview Work
Workforce Management
Lean Initiatives
Summary

3. Introduction
Captain Philip M. Delpero, Operations Officer, Portsmouth Naval Shipyard
Other duty stations
Naval Reactors, Washington, D.C.
Mare Island Naval Shipyard, Vallejo, CA
Portsmouth Naval Shipyard, Kittery, ME
SEAWOLF Program Office, Washington, D.C.
Education
B.S. Nuclear Engineering, Penn State
M.S. Mechanical Engineering, MIT
M.S. Naval Architecture/Marine Engineering, MIT
Level 3 Program Management Career Field

4. Roles and Capabilities
Facilities and people to provide a full
range of submarine maintenance and
modernization
Industrial Plant
Engineering Disciplines
Production Trade Skills

5. Shipyard Characteristics
275 Acres on Seavey Island in the Piscataqua River
25 Acres in Kittery, Maine (Military Housing)
234 Units of Housing
3 Drydocks
4100 Civilian Workers (excluding apprentices)
32 Naval Officers and 72 Enlisted Personnel

6. History Established June 12, 1800 Treaty of Portsmouth - 1905
Museum and Visitor Center

7. Technology Transfer Office
Plasma Arc Cutting
Photoluminescent
Technology
Shipboard Microwave Wastewater Treatment
Wearable PC
Standing Wave
Reflectometer
High Performance
Brush

8. = Key to Success is On-time, Affordable Quality Performance
Increase Revenue
Technology Transfer
Partnering
Outleasing
Marketing Unique Capabilities =
Reduce Operating Expenses
Affordability
Process Improvement/Technology Transfer
Partnering
Outleasing
Facilities Consolidation/Demolition
Energy Conservation
SMART Base Initiatives
More Customer Value

10. *FY02 Goal subject to review upon finalization of FY03 workload
Shipyard Hiring Plan
Goal* Onbd
Occupation FY97 FY98 FY99 FY00 FY FY02 FY02
Mechanics /
Apprentices
Engineers/
Technicians
Clerical/Admin/
Miscellaneous
Fire/Police
Total:
*FY02 Goal subject to review upon finalization of FY03 workload
(FY03 through FY05 hiring estimated in the range of 200 per year to account for attrition)

11. Revitalization Engineer Hiring
Apprentice Class
Apprentice Program - Congressional Appropriations
Engineer Hiring
Demographics - Average age down from 48 to 45

12. Age Distribution

13. Optional Retirement Potential
4100 Employees
2000
First time eligibles by FY
1794
1800
Total projected retirements by
25%/yr (20% FY01)
1600
Cumulative eligibles (assumes no
retirements)
1400
Cumulative eligibles given 25% annual
retirement rate (20% FY01)
1200
PNS Employees
1000
820
800
698
600
560
Actual
32 YTD 26
491
435
400
365
153
256
192
211
207
200
173
193
161
165
176
175
140
158
170
171
119 91
109
123 34 64
as of 2
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
May 01
End of Fiscal Year

14. What is Lean? First, Lean isn’t: Lean is a War on Waste:
an inventory reduction program
a housecleaning program
Lean is a War on Waste:
Lean Manufacturing defines waste as actions that do not add value to the product
Value is defined as actual changes to the product that the customer wants
Naval ship maintenance industry has non-value added but required process steps
Lean Manufacturing applies in maintenance/repair industry
Allowing Waste to remain in our processes costs the Navy. If there was significantly less waste then we could accomplish more work with the same personnel. We could also plan and execute work with less forewarning.
Waste = Lost capacity to accomplish more work at the same cost!
Lean is often named different things in separate organizations.
Toyota Production System started over 40 years ago to recover from WWII
Todd Pacific calls theirs Lean Ship Repair - Have not gone past the 5S program
PSNS has not coined it’s own name for Lean application
Lean Production (MIT-Womack)
T.P.S. - Toyota Production System (Toyota)
WCM - World Class Manufacturing (Schonberger)
FPS - Ford Production System (Ford)
BPS – Boeing Production System (Boeing)

15. Product Lead-time
Time
Raw
Material
Finished
Transport
Inspection
Waiting
Set-up
Machine
Inspect
Re-Install
Remove From
Ship
Transport
Parts
Value Added Time is only a very small percentage of the Leadtime.
Traditional Cost Savings focused on only Value Added Items.
BETTER: LIST ALL STEPS AND TARGET THE NON-VALUE ADDING ONES!
Take note of a Value Added “Inspection” and then later a non-value added “Inspection”. Point can be made here about inspecting quality into the product.
Lean measures Lead time.
Lead time reduction increases your ability to increase Throughput. Raises availability of resources. Increases flexibility to respond to new work, more revenue measured against the onboard resources.
This means the Navy gets more work done within their budget!
= Value
Added Time
= Non-Value
Added Time
(WASTE)

16. Traditional vs. Lean Results
Traditional Process Improvement Results
Focuses on improving the Value Added area
Time
Time
-VS-
Small Amount of
Time Eliminated
Lean measures Lead time.
Lead time reduction increases your ability to increase Throughput. Raises availability of resources. Increases flexibility to respond to new work, more revenue measured against the onboard resources.
This means the Navy gets more work done within their budget!
Lead time reduction through reduction of wasted steps and holdups is very major. Compare your Value Stream Mapping results.
FOR YOUR OWN PURPOSES: Take a minute to prepare for the question about what we charge the customer. Somebody might get the ‘smart aleck’ idea that since the green (value added) area doesn’t reduce we don’t charge the customer less. Wrong, real answer is that we already charge the customer for a huge amount of waste already, this is what we are attacking.
Lean Results
Focuses on eliminating the non-Value Added area
Large Amount
of Time
Eliminated
Time

17. The Seven Wastes in Manufacturing
1. Over Production--Producing more material than is needed before it is needed is the fundamental waste in lean manufacturing.
2. Excess Inventories--Material sits taking up space, costing money, and potentially being damaged. Problems are not visible.
3. Waiting--Material waiting increases lead time and cost without adding value to the product.
4. Producing Defective Products--Defective products cause rework, impede work flow and lead to wasteful handling, time, and effort.
5. Motion--Toolrooms.
6. Transportation--Moving material between work sites does not add value.
7. Processing--Over engineering, inspections, layers of document review.
How does this apply in the Navy Maintenance community?
1. All known material in the Shipyard by A-0
2. Engineering paper produced in abundance very early which drives the need for reworked paper
3. Ditto
4. Inspecting quality in through inspection versus building quality into the process
5. Let’s see now… EVERYWHERE I look! Pile material for later dig through to obtain. Move pallet to get to another. Inspections due to lack of faith in the process.
6. Processes that work in a back-shop that could be worked in place. Palletized material in the way of other material, multiple handling
7. Much in our processes that is non-Value Added. What value is added by writing an engineering request. Also, see later Value Stream Mapping

18. Inventory Hides Waste FINISHED PRODUCT RAW MATERIAL TO CONSUMER
SEA OF INVENTORY
What is a Sea of inventory?
In manufacturing it can be building up large amounts of work in process (WIP) to keep all actively employed.
Loss of focus on what is important.
All material in hand by X date
All paperwork in hand by X date
Scheduled in buffers for each step
LINE
IMBALANCE
QUALITY
PROBLEMS
LACK OF
HOUSE KEEPING
LONG
SET-UP
TIME
POOR
SCHEDULING
MACHINE
BREAKDOWN
LONG
TRANSPORTATION
ABSENTEEISM
COMMUNICATION
PROBLEMS
VENDOR
DELIVERY

19. “Make Problems Visible”
Exposed Waste
“Make Problems Visible”
FINISHED PRODUCT
TO CONSUMER
SEA OF INVENTORY
What is a Sea of inventory?
In manufacturing it can be building up large amounts of work in process (WIP) to keep all actively employed.
Loss of focus on what is important.
All material in hand by X date
All paperwork in hand by X date
Scheduled in buffers for each step
QUALITY
PROBLEMS
LINE
IMBALANCE
LACK OF
HOUSE KEEPING
LONG
SET-UP
TIME
POOR
SCHEDULING
MACHINE
BREAKDOWN
VENDOR
DELIVERY
ABSENTEEISM
COMMUNICATION
PROBLEMS
LONG
TRANSPORTATION

20. Lean Manufacturing Implementation
Leadership from the top
Biweekly Focused Reading, Learning, Strategy Sessions with Key Managers
Move out with Focused Work Shops - they produce solid results
Shop 31 Ball Valve Workshop
Reduce Mechanic Walk Distance by 60%
Improved Floor Space Utilization by 51%
Part Travel Distance reduced by 50% Average
Lead Time Reduced by 25%
SHAPEC Job Summary Process Workshop
Engineer travel distance reduced by 96%
Handoffs reduced by 40%
Process Steps reduced 53%
Lead Time reduced from 55 days to 27
Information Sharing with Industry

21. Summary of “Tools” Used Ball Valve Repair Shop Rapid Improvement Workshop
Waste Walk
5-S
Sort/Scrap
Straighten/Set In Order
Shine
Systemize/Standardize
Sustain
Visual Management
Brainstorming
Value Stream Mapping
“Just Do It”

22. Specific Goals of Workshop:
- Improve Safety – 100% (Preventive Actions)
- Improve 5S
Identified 132 Tagged Items
Goal is to address 90 of them
- Reduce Mechanic Walking Distance – 20%
- Improve Lead Time by 10%
- Improve Floor Space Utilization – 25%
- Reduce Part Travel Distance – 20%
- Improve Visual Control Usage by 80%

23. Before Situation Measures
Key Measures
Usable Floor Space – 1,710 Square Feet
Mechanic Walking Distance – 12,552 ft (2.4 Miles)
Lead Time – Average is 175 days (approximated)
80 5-S Items Identified
Waste Walk
Identified 30 items (Motion, Transport, Waiting…)
Lead Time – Average is 175 days (approximated)
What the Team Did
Waste Walk
Identified 30 potential issues
Discussion of “New Flow” for Area
5-S
Tagged 80 items for sort
Removal of unnecessary items
Cleaned Floor and Straightened
Created Storage Areas
Labeled Everything That Didn’t Move!
New Layout
Moved workbenches and storage bins
Established Aisle ways and Work Areas
Completed WIP Storage Racks
Completed Visual Management Board
Value Stream Map
Created current Value Stream Map
Created “To-Be” Value Stream Map
Management Presentations

24. Before Layout

25. Layout After

26. Spaghetti Diagram

27. After Mechanic Walking

28. Ball Valve Flow Diagram

29. After Ball Valve Flow

32. Results Safety Improved 5S
Reduced Clutter
Removed Tripping Hazard (Pallets)
Improved 5S
Identified 132 “tagged” items
Completed 104 items
* Reduce Mechanic Walk Distance by 87% (60% Avg.)
* Lead Time Reduced by 25%
Improved Floor Space Utilization by 51%
* Reduce Part Travel Distance by 88% (50% Avg.)
Provide Visual Controls
There is a place for everything and everything is in it’s place
* At completion of 30 Day Homework page

33. LOW HANGING FRUIT Procurement of removable chuck and long jaws
Initiating pre-engineered and pre-authorized fixes
Implementing of cold epoxy shim installation method
Moving X64 into X31 workspace
Certification Process

34. Specific Goals of Workshop Circuit Breaker Repair Shop Rapid Improvement Workshop
Improve Safety
Improve 5S
Identified 80 “tagged” items
Goal is to Address 40 items
Reduce Mechanic Walk Distance by 90%
Improve Lead Time by 40%
Improve floor space utilization
Reduce part travel distance by 50%
Provide Visual Controls

35. Before Situation Measures
Key Measures
Wasted Floor Space – 588 Square Feet
Mechanic Walking Distance – 14,044 ft (2.7 Miles)[Add 1 mile for every X64 Mechanic trip to and from Bldg 60]
Lead Time – Average is 42 days
Part Travel Distance – 1886 ft [Add 1 mile for every trip to and from Bldg 60]
S Items Identified
Waste Walk
Identified 12 items (Motion, Transport, Waiting…)

36. Results Safety Improved 5S Provide Visual Controls
Potential
Improvement
Current State
Future State
Value Added Time (Days) %
Wait Time (NVA) %
Repair Lead Time = days days %
Useable Floor Space (SF) , , %
Walking Travel Distance (Feet) 12, , %
Part Travel Distance (Feet) %
Safety
Improved 5S
Provide Visual Controls
NOTE: Captain, this information is in Captain McCoy’s Brief
In 2001 completed 25 Breakers,
in 2002 completed 6 Breakers since 1 January 2002 with a cycle time of __ days
Beating down a backlog
Dirty Thirty (actually 33)

37. Summary of “Tools” Used in a Focused Workshop Environment
Waste Walk
Value Stream Mapping Before & After
Brainstorming
5-S
Sort/Scrap
Straighten/Set In Order
Shine
Systemize/Standardize
Sustain
Visual Management
TAKT Time
30 Day Homework List
Rapid Improvement Workshop: Team of empowered and process knowledgeable personnel who work for a short time frame (usually one week) to make exceptional change to a specific process through removal of wasted time which has been captured in the actual process.
Team consist of a facilitator/change agent and representatives from each step in the “Value Stream”. Who provides INPUTS to the PROCESS leading up to the OUTPUT. (ie - Raw stock material, work instructions, money, prioritization, inspection, laborers, etc)
Value Stream Mapping - Actual process with all delay points. Every step (and space between steps) is provided duration and and determined if CUSTOMER VALUE is added or not.
Waste Walk - The team physically walks the process flow and identifies potential areas of waste for further discussion within the team meeting process. Spaghetti Diagram of flow drawn.
5-S is Lean terminology for getting the physical part of the process work area tuned up: details LATER
Sort/Scrap - the first S focuses on eliminating unnecessary items from the workplace.
Straighten/Set In Order - is the second S and focuses on efficient and effective storage methods. What do I need to do my job? Where should I locate this item? How many of this item do I need?
Shine - the next step is to thoroughly clean the work area. Workers take pride in a clean and clutter-free work area and the Shine step will help create ownership in the equipment and facility.
Systemize/Standardize - concentrate on standardizing best practice in your work area. Allow your employees to participate in the development of such standards. Make a system and monitor first three S’s.
Sustain - This is by far the most difficult S to implement and achieve. Human nature is to resist change and more than a few organizations have found themselves returning to the status quo and the comfort zone of the "old way". Focus on defining a new status quo (culture).
Visual Management - Metrics and Status kept up to date for all to readily see and easily understand performance of the process.
TAKT Time: The time required to produce a component or set of components to meet customer demand. The Drum Beat, Production Pace. 1 unit produced every x hours.
TAKT Time = Total Daily Operating Time / Total Daily Customer Requirements
TAKT Time is subject to change every month.
TAKT Time determines rate of production and is Key to minimizing manpower

38. PSNS Job Summary Creation - Before
All Preparers Review TM Index, SDI, MS, etc
ENGR
NVAR 10
2/ ea
Assign FIFO
Assign .2/ea
NVAR .4
J.S. H. submit additional FIFOs for CUPH Preps Engr
NVAR 3
Adjust Code Funding
Project ENGR
NVAR .5
J.S. H./Project Estimate Cost to Develop JS
Re-issue Bubble Chart 0.3 hrs (usually white board available = no additional time reqd)
NAVR 1
Schd
Hold Scoping Mtg, if needed (e.g. 1st Time Shipalt, Large Job, Incorp Lessons Learned, DLs, DRs)
PM.
BSPO
NVAR 2
Set Scoping Meeting
J.S. H. Assembles Draft Bubble Chart for Submittal to Project
Prepare Bubble Chart for FIFO ENGR
NVAR 6, 2 ea
Code Assigns FIFO Action
NVAR .6
.2 each
DM2
J.S.H. send FIFO for Bubble Chart (Ident Funding) to Code ENGR
NVAR 4
Prepare Bubble Chart ENGR
J.S.H.
J.S. Holder Understand Work Scope & Players
NVAR 8
Codes Assign J.S. Holder ENGR
NVAR .2
Provide Initial J.S. Funds to Code ENGR
Interference Shipcheck
VA 3
Codes Prepare Shipcheck Packages
VA 4
UPDATE Project J.S. Database ENGR
NVA .1
ASSIGN AIM Roles ENGR
Communicate Role over Source ENGR
NVA
Assign JS Code for Prep. ENGR
NVAR .1
Do it in the Project Group
Initiate / add to J.S,- AIM ENGR
VA .1
Feedback for LI Scope Clarification ENGR
Initiate EWO DM2
Receive L.I. from Ext Customer
Ext Customer
Auth. L.I.
Process Start
Run Report ENGR (LI/chgs)
1 d
Existing or Roll
New /
Current State J.S. Process
14 d
Wait
15 d
12 d
2 d
3 d
7 d
.5 d
2nd etc
people d
START ??
62 d
Evaluate Need
Project
for Scoping
Mtg.
NVAR
P. Mgt. 1 NO
YES
Issue S/A dwgs
PY ENGR
Separate
Receive dwg from PY ENGR
Get dwg/dist copies if not electronic
Review dwgs for added AIM Cus
Load L.I./Chg AIM
VA .2 hr
5 d
Establish LLT Mat'l CUPH.
NVAR .2
ENGR
All Preparers Acquire Refs (additional dwg/TM'S)
NVAR 1.5
5 x .3 = 1.5
T-Code JML Review
NVAR
1 d
Initiate JMLs for Long Lead & S/A DWG MATL List VA
JML Research Contact Vendors if not NSN Item. Determine. Sole Source if needed
NVAR .3
Place LLT CUPH in "CPL" in AIM
Include
START MATL PROCESS
Phase CU's per bubble chart
VA 3
30 x .1
Preparers
lead matl.
Identify long
NVAR 10
5 x 2 =10
YES NO
CU's?
More
Need
Request CU's
Provide additional CUI's or provide feedback
Build CU assemblies if needed
VA 2
10 x .2 = 2
PHASE CUI assemblies to summary
VA 1
10 x .1 = 1
a - Estimate tasks, utilize STDs
b - Create task descriptions
c - Layout tasking & hours
d - Identify any remaining material
Identify prefab CU-phases (if any)
Determine "F" CU-PH req'd dates
Develop working prefab "F" CU PH schedule
- Schd.
- Proj. Mgt.
Develop "F" CU-PH as 1st priority
VA 3 x 3 = 9
Initiate all other CU phases
Develop CU phase (TGI short) task level
VA 27 x 3 = 81
Phases
'F'
Develop QA Forms
Identify remaining required material ordering
JML Review
JML
35 x .3 = 10
Transfer long lead material to end use CU-phase
5 x .2 = 1
'F' Phase
Submit for CU-phase apvl (prior to summary submittal)
Revien "F" CU-Phases & review
(correct where possible)
ENGR, APS, IPS
NVAR 1.8
3 x .2 = .6 each
Approve "F" CU-PHASE
3 x .1 = .3
.5 d
Start Packaging or TGI
Processes
Code Tech Review
NVAR 30
All preparers submit all related FIFO's to Job Summary Holder
6 d
J.S. H. review complete JS
NVAR 24
10 d
J.S. H. submit prelim JS to project
NVAR .5
VA 12
Chgs made
Submit summary corrections
J.S. H.
NVAR 2
Review corrected Prelim J.S. & update status (PE/IPS)
7 d
Approve JS in AIM & file (PPS)
Validate JS in AIM
Validate line items associated to JS (PPS)
Develop L.F. TGI's (tech code)
(WPC)
Package approved
TGI's
BSPO
END
Compl EWO to BSPO
Start LF TGI process
Conduct JS lead meetings to manage WIP (PE/IPS)
-Proj. Engr.
-Code Leads
NVAR 1.2
Review to B.C. & update spreadsheet (database)
Proj. ENGR
Place CU Phases in PRL (some projects opt to have tech code do in process)
Schd
Start Schd Process
Route J.S. for review
Review J.S.
APS
Test
Schd
Zn Mgr - 16
NVAR 38
BSPO - 2
Shops - 12
Schd Review Meeting JS
RVW
Mtg
Coduct Review Mtg.
- WTC
- APS
- Zn Mgr
- Test
- BSPO
- Schd
10 x 4 = 40
5 d
Reqd?
Chg.
Are
Make Corrections
Consolidate comments for chg.
Engr
on Proj
Changes
Make
Proj. Engr.
J.S. H. receive marked-up prelim J.S. (JS Holder)
'F' Approv?
Busy slide for visual effect compared to After Lean Process Slide
Job Summary Creation process before our Rapid Improvement Workshop the week of 13 November 2001
If we blew up a piece of this we would see color scheme and numbers for duration and who does it and whether it is value added or not. (See next slide)

39. PSNS Job Summary Creation - After
STATUS
ALL CU PH
TO PRL .2
FILE
STD.
PACKAGE
START:
ASSIGN
J.ob
Summary
DEVELOP
BUBBLE
CHART
CONFIRM
W.B.S.
WITH
TEAM
PHASE
CU’S PER
BUILD CU
ASSYS
ALL PHASES “F
” Phase
PRIORITY
TECH
REVIEW
CONTRACT
OR IN-
HOUSE
APS / ZM
APPROVE
SUMM &
END PROCESS
- LF TGI
- PACKAGING
PREP
S/C
PKG.
SHIP
CHECK
XFER
LLTM
TO END USE
LLTM CU
START
REMAINING
JMLS
MATL
PROCESS
SPECIALIST
ISSUE
JML
SPECALIST
COMPL JML
INCORPORATE
COMMENTS
SCHEDULING
UPDATE
METRICS
& HISTORY 8 2 .1 3 14 1 10
1.5 30 12 .5
Cross-Functional Core Team
- Co-Located Team
- Standard Processes
One JS “Owner”
Self-Directed Reviews
Product Line
History 90 4
Job Summary Creation process after our Rapid Improvement Workshop the week of 13 November 2001
Results on next slide

40. Results of the PSNS Job Summary Lean RIW
Potential
Improvement
Current State
Future State
Value Added Time (Days) %
Non-Value Added – Required %
Wait Time (NVA) %
Total Lead Time = %
Travel Distance (Feet) , ,464 to 13, to 92%
Process Steps %
Hand-Offs %
Primary Action:
Co-located, Cross-functional Team, FIFO’s replaced w/focused individual temporarily sits in a work area with the planning team.
Job Summary Creation process results from our Rapid Improvement Workshop the week of 13 November 2001
Have we met the potential? No, but we now have a vision/target and know we can reach or closely approach it.