1. DoD Depots of the Future: Maintaining Yesterday’s and Tomorrow’s Navy
October 2004
NAVSEA Vision
Jim Brice, Assistant Deputy Commander for Industrial Operations, NAVSEA 04X

2. Outline Resources--The Imperative Navy Shipbuilding and Repair
Competes for Resources
Transformation
Lean
One Shipyard
Shipyard Transformation Plan
Lean Training
The Future

3. Resource Constraint Forces Transformation
The Imperative
Resource Constraint Forces Transformation
Fleet Response Plan
SEA Enterprise
300 Ships
300 Ships
$ to Sustain
$ to Recapitalize
Current Fleet Readiness
Future Fleet Readiness
Right
Force
Right
Force
Capability
& Capacity
Facilities Workforce
Maintenance
& Logistics Policies
More Operational Time
More Force Structure
Right Readiness
Right Cost
Right Readiness
Right Cost
THE INDUSTRIAL BASE
Goal is to effectively and efficiently manage the national industrial base to achieve future goals.

4. Last Decade: Next Decade:
New Ship Construction and Submarine Availabilities
Ship New Construction Environmental Scan
Last Decade: Next Decade:
8 Starts or More?
1990
2000
2010
SSN 774
SSGN
LMSR
CVN 76 MR
DDG 51 Flt IIA
TAKE
DD 21
CVNX
LHD 8
LHAR
DDX
CVN 21
MPF Future
T-AOE(X)
T-AGM Repl
CG(X)
LCU(X) ... ?
MCS(X) ... ?
CVN 77 MR
17 Designs in Progress
SSN 23 MMP
LPD 17
CG CONV
LCS
Submarine Depot Availabilities SSN/SSBN DMPs, EROs & EOHs
We Are Here!
Number of Submarines Scheduled in Shipyards
SSN
SSBN
SSGN
Quarter of Fiscal Year 2 4 6 8 10 12 14 16 18 20

5. Continuing the Transformation
Phase 5
IMPLEMENT LEAN PRINCIPLES
& Level Two Collaboration
Deploy Human Capital Strategy
Aug ‘04
CNO & COMNAVSEA Annual Guidance
May ‘04
Action Plans
Complete
Alignment
Assessment
Reassessment
Sep ‘04
Nov ‘03
Phase 4
Improving our alignment
Improving our productivity
Refining our Human Capital Strategy
Phase 3
Jul ‘03
100 day study
complete
Integrated Planning Activity
Business Operations Post-CNI
Supply Support / Logistics
Business Efficiencies
Contracting
Engineering
Human Systems Integration
Financial Management
Phase 2
Mar ‘03
100 day study
complete
Warfare Center Transformation Plan
Naval Shipyard Transformation Plan
We are here
NAVSEA Commanders Conference July 2004
Action for All: Begin to apply Lean Principles
and changes to all appropriate work processes
Phase 1
Jul ‘02
100 day study
complete
HQ/PEO Realignment
Technical Authority

6. NAVAL SEA SYSTEMS COMMAND
NAVSEA Enterprise
NUCLEAR
PROPULSION
SEA 08
COMMANDER
NAVAL SEA SYSTEMS COMMAND
SEA 00
VADM P. BALISLE
ADM F. BOWMAN
SHIPS
INTEGRATED
WARFARE SYSTEMS
VICE CDR/DEP CDR FLEET
MAINT & MOD
EXEC DIR.
SEA 00B
P. BROWN (SES)
SEA 09
RADM A. LENGERICH
COMSPAWAR
SYSCOM
(ADDU for C4I)
LITTORAL
& MINE WARFARE
Task Force Lean
COMNAVSUP
SYSCOM
(ADDU for LOG SPT)
CHIEF INFORMATION
FLEET SUPPORT
OFFICER
CARRIERS
MANAGEMENT
SUBMARINES
SEA 00I
REVIEW BOARD
TECHNICAL AUTHORITY
COMMAND STAFF
BOARD
PEO Organizations
ORDNANCE SAFETY
SEA 00V
WARFARE CENTER
POLICY BOARD
COMPTROLLER
CONTRACTS
HUMAN SYSTEMS
INTEGRATION
LOG, MAINT,
& IND OPS
SHIP DESIGN
INTEGRATION
& ENGINEERING
WARFARE
SYSTEMS
ENGINEERING
SEA 06
UNDERSEA
WARFARE
SEA 07
CORPORATE
OPERATIONS
SEA 10
SEA 01
SEA 02
SEA 04
SEA 03
SEA 05
NAVAL SHIPYARDS
COMMANDER,
NAVAL
SURFACE WARFARE
CENTER
COMMANDER NAVAL UNDERSEA
WARFARE CENTER
NUWC
SUPSHIPs
SUBMEPP
SEALOGCEN
Aug 2004
NOSSA
EOD-TD

7. Multi-ship/ Multi-year Indefinite Quantity (IDIQ)
One Shipyard
One Naval Repair Shipyard
MSRA / ABR Contractors
Partnerships
Multi-ship/ Multi-year
(MS/MO)contracts
Other Contracts
GDEB
NGNN
Multiple-award
contracts
One Naval Shipyard
Indefinite Quantity (IDIQ)
Indefinite Delivery
One Nuclear Shipyard
One Naval Repair Shipyard
Resource and Infrastructure sharing across the boundaries of Public/Private will be instrumental in providing cost effective Ship construction, modernization and maintenance while maintaining core capability at the NSYs.

8. Naval Shipyard Transformation Plan
Sub Best Practices Sail, Tanks, MSW/ASW, Grooming IPPTP, VLS, Steering&Diving, Torp Tubes, Hull UROs, Engr & Project Mgmt
Carrier Team One ALRE Material, Process Masters, Execution Charging & Progressing, Co-yard, MCAP, etc.
NSY Productivity Projects Quality initiatives, High Performance team building, personal accountability, Lean processes, CIMP, etc.
Corp Programs CWP/ERM, MANTECH, CTMA, SHIPMAIN, NSRP, etc.
Fleet Programs I&D Integration, Waterfront Realignment, SHIPMAIN, etc.
Lean
A Comprehensive Business Strategy for Successful Transformation

9. Any Ship, Any Time, Any Where
NSY Training on Lean
Any Ship, Any Time, Any Where
One Master Black Belt hired from Ford
Five experienced LSSC graduates certified as ASQ Six Sigma Black Belts
82 Process Improvement Engineers trained via the Naval Shipyards’ Lean Six Sigma College (NNSY, PSNS, PHNS, SIMA-N)
2515 people trained in Lean Basics
1456 people participated in Lean events
175 Lean events
Training our People on Lean Six Sigma
Lean Six Sigma College
6-month Training Plan
Lean Six Sigma
Developed & Taught with USNR and Certified Black Belts
Independently Validated by Industry
Integrates Lean, Six Sigma, Theory of Constraints, and Corporate Quality Tools
Tailored to ship repair environment
Methodology taught in a 6 month course called Lean Six Sigma College
Students who complete LSSC are qualified Process Improvement Engineers (equivalent to Black Belts by Industry Standards)
Corporate Process for
Process Improvement
Observe “As Is” Baseline
ID Key Metrics & Targets
Understand
Define
Commit
Characterize
Improve
Implement
Close
Define the Problem
Define the Case for Action
Define Customer Value
Define Expected Benefit
Define Expected Costs
Define the Vision
Develop Draft Economic
Analysis
Prioritize
Commit Resources
Update Priorities
Plan Next Steps
Publicize & Recognize Results & Benefits*
Knowledge Sharing
Sustain & Maintain Metric
Train and Deploy
Implement Controls
Measure Key Metrics
Codify
Assess and Adjust
Reduce Waste
Conduct Pilots
Develop Implementation Plan
Develop Benefits Realization Schedule*
Lean Six Sigma
Chronology
Training may only be a presentation for
self-study, with list of other learning resources
“Glossary" or self-study, awareness only,
with list of "lifelines"
Emphasis Levels
Training includes case study or equivalent;
students may be ready to apply, or may need
minor addl training/reading
Training includes a practical example or
exercise; students leave ready to apply the tool
1999
3 Six Sigma pilot projects
Program Change
Continuous Self
Improvement (CSI)
Process
Re-Engineering
Hierarchy of Process Improvement
Summer
Sabbatical with Experts (naval reservists)
to develop the Lean Six Sigma concept
and 6-step model
2001
Nov 2001
Flight 1 of Lean Six Sigma College
starts at NNSY
Hired a Ford Six Sigma Black Belt.
Further developed and delivered
LeanSigma College
Lean Repair Exercise (LRE)
The LRE is an interactive Lean Improvement exercise, developed by the Shipyards, based on the Motor Regional Repair Center, simulates variability typical of repair processes & uses LeanSigma to focus and drive improvements
Dec 2001
Lean Six Sigma Toolbox
Vision/Mission Development
Change Management
Assessment Models
QPS, CLL
Balanced Scorecard
Value Stream Analysis
Brainstorming
Win/Win
Prioritization
5 Why's
Theory of Constraints
7 Quality Control Tools
7 Management & Planning Tools
Nominal Group Technique (NGT)
Team Building & Facilitation
Project Planning
Internal Consulting
Capacity Analysis, Takt Charts
Process Analysis
FMEA
IPO / ICOM Diagrams
Causal Loop Diagramming
Process Observation / GEMBA
Basic Statistics
Data Analysis Tools
SPC, Gage R & R
Sampling Theory
Root Cause Analysis
CTQs / CTPs
Hypothesis Testing
5 S / Visual Controls
Poke-Yoke / Error Proofing
Process Simplification & Design
Pull Systems
Supply Chain Management
Critical Chain Project Mgt
Mar 2002
Flight 1 graduates and
LeanSigma projects begin.
May
Flights 2, 3, and 4 complete.
June 2003
Sept 2003
PSNS, NNSY, and USNR
agree to partner on LSC
Oct 2003
4 PIEs certified as
Six Sigma Black Belts by ASQ
Lean Repair Exercise developed to teach
and demonstrate the use of LSS principles
in Repair Environment
Dec 2003
April 2004
Master Black Belt Certified
(former BB from Ford)
May 2004
Flight 5 starts at NNSY with 15 students
from NNSY, NFPC, and SIMA-Norfolk

10. The Way Ahead...
We will continue to
Deliver as promised on products and services to keep our Warfighters ready to win
Ensure cost, scheduling, and process efficiency gains are factored to return value and needed investment monies
Bottom Line: Our Industrial Base is fundamental to the Navy and the nation as it ensures that the Fleet is ready to deploy

11. Questions?