1. 16 Oct 03 UNCLASSIFIED 1 COL William A. Guinn Commander, Letterkenny Army Depot COL William A. Guinn Commander, Letterkenny Army Depot Defense Acquisition University Lean Aerospace Initiative (LAI) Education Network 16 October 2003

2. 16 Oct 03 UNCLASSIFIED 2 300 miles 100 miles 200 miles Where We Are … 120 miles north of Ft Belvoir, VA 65 miles south of Harrisburg, PA International Airport Vicinity Chambersburg, PA - 4 miles off I-81

3. 16 Oct 03 UNCLASSIFIED 3 Bldg. 370 296K sq. ft. Bldg. 350 318K sq. ft. Bldg. 320 66K sq. ft. 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 Our Facilities …

4. 16 Oct 03 UNCLASSIFIED 4 Depot Wide Quality Certification Pursuing Certification for ISO 9001-2000 & ISO 14000 Public/Private partnerships Army Recapitalization Letterkenny… a Model Depot

5. 16 Oct 03 UNCLASSIFIED 5 Average Age 49 Who We Are … Average Years of Service 22.5 On Board Strength LEAD = 1092 Contractors = 117

6. 16 Oct 03 UNCLASSIFIED 6 Where We Are At … Supporting Logistics Power Projection AMC Field Support Centers (AFSC) provide Capability Forward AFSC Korea AFSC Germany AFSC Ft. Bliss LEAD

7. 16 Oct 03 UNCLASSIFIED 7 JPBDS Trailer BIDS BIDS M31A1 Soldier Biological & Chemical Command MLRS HAWK Avenger TOW PATRIOT RECAP Aviation & Missile Command Hellfire SECONDARY ITEM REPAIR ATACMs Navy DEVGRP Army SF GMV RESET Special Operations Command Army Ranger Navy WARCOM MKT Containerized Chapel Force Provider Tank-automotive & Armaments Command What We Do … Customers

8. 16 Oct 03 UNCLASSIFIED 8 Customer Focused, Eliminating Waste, Adding Value and Giving Back to the Customer Lean Is … Transforming The Depot

9. 16 Oct 03 UNCLASSIFIED 9 LEAD Lean Methodology Plan to Lean in all areas Maintenance, Support and Administrative Educate Workforce Core Team w/M&S Training Workforce Lean 101 Learn By Doing Overcome Inertia Direct Command Involvement Select & Empower Change Agent Obtain Results-Oriented Lean Consultant just do it!!! Execute for Success Key Metrics: Productivity & Safety Quality On-time Delivery Flexible Event Schedules

10. 16 Oct 03 UNCLASSIFIED 10 348 employees (32%) have engaged in Lean events. Cost Savings for FY04 – FY09 Estimated at $25.3 million. Approximately 43,149 square foot of interior and 41,963 square foot of exterior space has been identified for new business. Union on Board 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 69 Lean Events completed. 5 Events In-process, 89 planned thru Aug 04. Just started ‘walking’. Lean Progress

11. 16 Oct 03 UNCLASSIFIED 11 … Backlog for Receiving … Process time reduced thru Lean efforts and new technology. LEANed SUPPLY AND TRANSPORTATION Internal Value … While Transportation Mission for FY03 increased 63.5% over FY02 with a Jan-Mar 03 surge of 99.5% over Oct-Dec 02 …

12. 16 Oct 03 UNCLASSIFIED 12 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 GMVs - Nov 02 to present 233 - Special Forces 72 – Rangers 16 – East Coast Seals 10 – West Coast Seals 72 mod kits – Special Forces 1500 hours under cost FLOOR SPACE 75,000 sq feet reduced to 48,000 sq feet Operation Iraqi Freedom Customer Value …

13. 16 Oct 03 UNCLASSIFIED 13 Operation Iraqi Freedom GMV Production Video Clip Lean At Work …

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15. 16 Oct 03 UNCLASSIFIED 15 Questions …