CAPT Ralph T. Soule

1. CAPT Ralph T. Soule Supervisor of Shipbuilding Newport News Career Goals: Shipyard Command Supervisor of Shipbuilding Command Qualifications: Surface Warfare Officer Acquisition Certifications: APM; AG2; AG3 Year 1985 1990 1995 2000 2005 2010 Now YCS 0 5 10 15 20 25 30 20/30 TYS Bryan K ELEM JRHI HS COL Beau K ELEM JRHI HS COL Career Plan SWOS Student FF 1087 Kirk EMO FFG 48 Vande- grift ERO, CICO Nuc Pwr School Nuc Prototyp CGN 40 Miss- issippi MPA MIT Student CVN 65 Enter- prise (RCOH) Station Officer PSNS Nuclear APS, Carrier Avail Improvement CNAL N43 Deputy Supship Newport News Carrier Overhaul Project Officer, PMR CVN 69 Dwight D. Eisen- hower Reactor Officer PHNSY OPS Comm Naval Air Force ACOS Ship Materiel N43 Supship Newport News Supervisor ED/EDQP Boards Promotion ENS LTjg LT LCDR CDR CAPT FitReps 20/30 TYS YCS 0 5 10 15 20 25 30 Now Year 1985 1990 1995 2000 2005 2010 12/14/2006 5:10:27 PM Career Planner (ver 1.6b1 03-25-02) Supship Newport News Super-visor

2. Why You Should “Do” Carriers • The problems you encounter are really the Navy’s highest priorities. • The resource sponsors understand and value maintenance. • While the problems are complex, you get great support and rapid attention. • Carriers have enough money to work ahead of most of their problems.

3. Career Planning Insight (Soule’s view) • Keep options open, 2 paths to O6/Command as long as possible • No one path to O6/Command • Performance will always be #1 factor • Develop the KSAs you need for future jobs, it’s not just about OJT • Always think one or two jobs ahead • Observe and get mentoring from senior officers • Personal development plan • Have fun!

4. CV/N Maintenance • Governance • Life Cycle Management Group • Management of Life Cycle material and programmatic issues • CV/N Team One • Manages the “white space” in the CV/N CNO availability process (planning and execution)

5. Current Interests and Reading

6. My Personal Development Themes • Leadership Development (of course!) • Human Performance Capabilities and Models • Systems Thinking • Safety Culture/High Reliability Organizations/Error Management • Risk (Crisis) Management/Failure Analysis • Distributed Cognition • Critical Thinking

7. Recent Reading • Recently finished • Irrationality, Sutherland • Safety at the Sharp End, Flinn et al • The Checklist Manifesto, Gwande • How the Mighty Fall, Collins

8. Current Reading • Power Rules, Gelb • 7 Deadly Scenarios, Krepinevich • Upgrade Your Life, Trapani

9. Suggested Reading • Havard Business Review • What Makes a Leader, Goleman • The Hidden Traps in Decision Making, Hammond et al • What You Don’t Know About Making Decisions • What Is Strategy?, Porter • The New Economics, Deming • Fifth Discipline, FD Fieldbook, Senge et al • Leadership and the Art of Communication, Krisco • Seven Habits, Covey • Getting Things Done, Allen • Managing the Unexpected, Weick • Intuition at Work, Klein • The New Rational Manager, Kepner-Tregoe • Becoming a Critical Thinker, Diestler • Boyd, Coram

10. JO Industrial Tour Success Strategies • Know your customers and what they value. • Read “Lean Thinking” and “The Toyota Way;” think about where and why we fall short. • Read and understand the Shipyard Business Plan. • Get involved in Carrier or Sub Team One. • Update your career planner and always have available for "drive by career counseling" opportunities. You will get better mentoring if you frequently ask “Why do we …?” • Complete all DAWIA quals possible during this tour. • Always be thinking about what you want to learn and get better at doing. What skill sets are you building for Navy problems? • If there is a Shipyard CO shadow program at your command, get on the schedule ASAP.

11. Decision Games/Case Studies • Running out of money in CVN RCOH • What to do when you realize your new construction ship is going to be late.

12. Recommended Reading • Managing the Unexpected • Asking the Right Questions • New Rational Manager • Intuiton at Work • The $5B Misunderstanding • The Checklist Manifesto

13. Increasing Aircraft Carrier AoOperations Drives Maintenance CVN 68 Class Incremental Maintenance Plan OLD Mid life plan with 27-Month OP Cycle • 32 vs 27 month Op Cycle • Eliminates 2 DPIAs and 4PIAs • Implements CIA concept • Drydock Extension Program (8 vs 6 year periodicity) • RCOH incorporating SRA • Eliminates post-RCOH SRA • C4I mod insertion • PMA 251 LLTM risk reductions 45 months increased Ao over each 50 year life cycle. Eliminated 2 DPIAs and 4 PIAs. New Con / ROCH NEW Mid life plan with 32-Month OP Cycle PIA PIA PIA PIA PIA PIA New Con / RCOH RCOH / Inact DPIA DPIA CVN 68 Class Refueling Complex Overhaul OLD NEW Aircraft Carrier Class Maintenance Plan

14. Supervisors of Shipbuilding

15. SUPSHIP Bath DDG51 // DDG1000 Mobile, AL LCS // JHSV Detachment San Diego TAKE // MLP SUPSHIP Groton SSN 774 Submarine Repair SUPSHIP Newport News CVN 78 Carrier Repair Carrier Refueling SSN 774 Submarine Repair SUPSHIP Gulf Coast DDG51 // DDG1000 (Deck House) // LPD 17 // LHA 6 // TAGM // TAGS66 // Marinette, WI LCS SUPSHIPs Today $110+ Billion Contracts Administered 5 Major Shipbuilders 55,900 Employees $110+ B Contract Value ~$10 B Annual Contractor Progress Payments 4 SUPSHIPs 1 Det, 2 On-Site Offices SEA 04Z Civilians 1087 Direct 114 Military 1201 Total ~$130 M O&MN 1 Military 10 Civilian SWFT-PM addresses funding

16. SUPSHIP Community 5 Major Shipbuilders 4 SUPSHIPs + 1 Detachment And 3 On-Site Offices 54,000 Employees $100B+ Contract Value $9.75B Annual Shipbuilder Progress Payments NAVSEA 04Z Civilians 1064 Direct (EOB) 113 Military 1177 Total ~$126M EOB 1 Military 11 Civilian • Requirements • Program Execution • Resources • Policy • Reporting • Contract Administration • Project Management • Engineering Tech Auth • Quality Assurance • ShipBuilding Contract Execution • Planning • Nuclear Repair

17. SUPSHIP Functions • Traditional Contract Management Functions: • Administrative Contracting Officer • Naval Supervisory Authority • NAVSEA field engineering • Program management • Quality Assurance for key shipbuilder processes • Non-traditional Functions: • Field Pricing Support for new contracts • Customer interface • Solution facilitation • Program management interface • Program reviews • Work Integration of non NGSB contractors

18. SUPSHIPNN Mission and Goals • Mission of SUPSHIP Newport News • Administer contracts for new ship construction, overhauls, and conversion • Execute NAVSEAcontractual, technical, and fiduciaryresponsibilities • Program management and technical oversight of ship construction and repair (NSA responsibilities) • Command Goals • Inspect to get what the gov’t expects • Improve mission capability • Support lower cost of production Assure that NGSB NN adheres to Navy contracts and provide onsite technical/program support between NGSNN and Navy activities.

19. SUPSHIP Manning Bath, Groton, Newport News, Gulf Coast • SUPSHIP Manning directly linked to CNO (N8) Navy Shipbuilding Plan • OPNAV (N81) accredited SUPSHIP model (SWFT) calculates manning & funding requirements across the FYDP • Change in Shipbuilding plan = Change in SUPSHIP requirements • SWFT accounts for geographic disparities, shipbuilder competence, & ship design complexity In FY07: • NAVSEA agreed to fund FY08 -09 SUPSHIP CIVPERS shortfalls via CDRs Reserve • Not sustainable long term • OPNAV N8F agreed to fund POM10 and future • FY10 requirement funded!! • Divergence from requirement beginning in FY11 SUPSHIPs Bath, Groton, Newport News, Gulf Coast

20. Northrop Grumman ShipbuildingShipbuilder Summary Issues: CVN71 RCOH (execution) Delivery schedule Feb 12 CVN72 RCOH (planning) Delivery scheduled for April 09 SUB REPAIR Planning Yard and AIT Installations Virginia Class Submarine (shared with EB) SSN 781, 783 – Cost performance concerns. CVN 65 Inactivation Concern with resources, engineering and workers, to accomplish. CVN 78 Construction CVN 79 Planning

21. Navy Private Sector Management - NGSB Roles and Responsibilities PEO Carriers/Subs Executive Mgmt and Program Management NAVSEA 08 Program Mgmt, Contracting, and Technical Authority for Naval Nuclear Propulsion Systems NAVSEA 02 Subs and Carriers Contracting Authority NAVSEA 05 Subs and Carriers Technical Authority SUPSHIP On-Site Project, Contracts, Business, Q/A, and Eng Mgmt • Tactical • Formal Contracts • CVN 68 Class RCOHs • CVN 78 Design and Construction • CVN 65 Maintenance RSLP availabilities • Selected other Carrier maintenance availabilities • Strategic • Joint Executive Management (JEM) • PEO Carriers/Subs • DASN Ships • NAVSEA 00B • NAVSEA 08 • Regulatory • Naval Nuclear Propulsion Audit – NAVSEA 08 • Virginia Class New Construction • SSN 688 Planning Yard Services • SSN 21 Planning Yard Services • SSN AIT Installations • Select Submarine maintenance availabilities • President, NGNN • Support from NAVSEA Senior Leadership and SUPSHIP • Contracts, Cost Estimating, Engineering

22. 2006 RAND Evaluation of Shipbuilding Costs • Highlights of Findings • 7.4%-10.8% annual inflation from 1950- 2000 for Battle Force Ships (Amphibs, Combatants, CVNs, Attack Subs) • ~50% due to economic factors such as labor and commodities • ~50% due to customer-driven factors such as capability (requirements creep) and build rate • Recommendations • Increase investments in producibility • Increase procurement stability • Fund technology and efficiency improvements • Improve management stability • Change GFE-program management controls • Employ batch production scheduling • Consolidate the industrial base • Encourage international competition/participation • Build ships as a vehicle • Change the design life of ships • Buy a mix of mission focused and multi-role ships • Build commercial-like ships

23. Affordability of the 313 Ship Navy • The Navy currently builds 4-6 ships per year at a cost of $8.9 billion • Navy needs to build 200 ships over the next 20 years at a average annual cost of $14 billion (forty percent increase above the current budget). • Navy assumes no real growth in the Navy's top line—how can we buy the ships we need? • Lower maintenance costs for in service ships • No cost growth: personnel, ship cost, operations • Increased commonality between ship classes at the component level

24. Other Navy Shipbuilding Challenges • Maintaining the industrial base • Current ship designs are too expensive for the funds available • Cost growth on lead ships of a class • Lifecycle support costs of all weapons systems and platforms are on unsustainable trend lines

25. SUPSHIP Challenges

26. In-Service Aircraft Carriers Years of Service - ENTERPRISE will be 51 at her FY12 inactivation - NIMITZ-Class: 500 total carrier-years, serving from 1975 until 2059 RCOH Years of Service Life as of today

27. SUPSHIP Health: Back to Basics Implement Actions to make SUPSHIPs a more proactive organization in driving quality performance and execution at private shipyards Lead: SEA04/Vice Commander NAVSEA CDRs Conference Task

28. SUPSHIP Back to Basics FY10 Code 300 Quality– Implement results CY Q1-Q2 Team Lead – Capt Elkin (SSGR) 1 Code 150 Project Oversight– Gap ID & Analysis CY Q1; Implement Q3 Team Lead – Capt Soule (SSNN) 2 Code 400 Contracts – Gap ID, Analysis CY Q1-Q2; Implement CYQ3-Q4 Team Lead – Capt Krestos (SSBA) and Capt Barnard (SEA02) 3 Code 200 Engineering – Gap ID, Analysis CYQ2-Q3; Implement CY Q4 Team Lead – Capt Galinis (SSGC) 4

29. SUPSHIP Back to Basics • C300 Quality Improvement - Implement CY 2010 Q1-2 • Chain of Accountability: • SEA04 QA Audits of SUPSHIPs (note: completed 2 SUPSHIPs and 2 Det to date) • SUPSHIP Code 300 Audit of Shipbuilder QMS • Changing waterfront behavior on a daily basis • Develop and implement a structured QA planning process • Standardized CAR process • Documented QA standards/requirements • Ensure safe and reliable operations • Clearly identify, communicate and follow up with the shipbuilders defects and corrective actions • Ship Quality Metric reporting by Class, hull, CCP, sector • Better engagement with Shipbuilder/PEO/SEA04/SEA00 • Audits and oversight of Shipbuilder’s Quality Management Systems (QMS) • Major shift toward Process Evaluation (PE) vice Product Verification Inspection (PVI) • C150 Project Management Improvement - Gap ID CY 2010 Q1 • Better Cost/Schedule Performance Analysis (EVM) • Change Management • Enhance Project Analysis & Reporting • Better engagement with Shipbuilder/PEO on Project Mgmt & Tech Issues • Quality Data Schedule Analysis • Tracking and resolving Open Issues • Readiness for Milestones • Reassert the role of the "Supervisor" of Shipbuilding • Give the PMs the “Story behind the Story”

30. SUPSHIP Back to Basics 3. C400 Contracts Improvement- Gap ID CY 2010 Q1-2 • Improve Selected Shipbuilding Contract Clauses, SEA02/PEO/SUPSHIP • Streamlined way of doing business for Shipbuilder & SUPSHIP • Shipbuilder's Cost/Schedule Performance Analysis (EVM) 4. C200 Engineering Improvement- Gap ID CY 2010 Q3 • Revitalize Waterfront Engineering Organization • More time on the ships • Collaboration with SUPSHIP Code 300 Quality team • Focus on quicker decisions (more local decisions, faster TWH decision cycle time) • Refine Tech Authority workload during design & construction phase • Clear definition of responsibilities for Code 200

31. Carrier Maintenance Plan

32. Summary Roles of SUPSHIP ACO, NSA, Tech Authority, Quality Assurance Contract delineates requirement Unfunded Reqts – Contract Change On Site Govt Representatives Program Office, NAVSEA, Fleet, Govt Vendors SUPSHIP commands cannot easily grow/contract for workload Crew Support - Ship’s Force is often caught in the middle of repair/construction problems. SUPSHIP has to be prepared to stand up for the things they need to be successful

33. Questions

34. Backup Check out my blog at: www.rtsoule.squarespace.com

35. Public vs. Private Shipyard – Execution Top Level Similarities / Differences More Similar More Different Workload Management/NSA Alignment NRRO Interface Delivery (NewCon) Hazmat / Mixed Waste / Environmental TWDs/DR/DL/IR Project Management IT (SAP vs AIM) Industrial Procedures Funding ECC Size WPC LBOD SUBSAFE New Ship Construction EVMS No production work In-Service Project Execution No nuclear tech authority In-Service Work Certification Contracting Outsourcing to MSRs New work mgmt CVN Team One, LEAN, Co-Yard, One SY/Resource Sharing, Navy Acqusition Programs, BRAC, Enterprise Construct have all Driven Convergence in Operations, Practices, Similarities, and Workload Sharing

36. SUPSHIP Customers and Stakeholders • Major Customers: the direct recipients or beneficiaries of the services that SUPSHIP provides. • The Fleet: Warfare Enterprises (SUB, SURF, and AIR) • NAVSEA (Program Offices, Naval Shipyards) • Private Shipyards • Major Stakeholders: those who influence the budget, funding and resource allocations; fill a stewardship or regulatory role. • NAVSEA HQ, ASN (RD&A), OPNAV • PEO, OSD, Congress, EPA, OSHA • NRC, State & Local Governments

37. SUPSHIP Back to Basics Tasking #1 Affirmation of the Supervisors of Shipbuilding Role

38. Tasking #1: Affirmation of the Supervisors of Shipbuilding Role • Establish clear lines of communication, accountability and authority • Goal: “One Navy Voice” to the Shipbuilder – Q2 • SUPSHIP, NAVSEA HQ and PEO teams to develop SUPSHIP common business processes – IT (Q1), Project Office (Q2), Contracts (Q3), Testing & Engineering (Q4) - FY10 • SEA04 Council (PEO, NAVSEA 02/05/07/08) to address SUPSHIP Community issues – Q2 • Establish SUPSHIP input to Ship Program Acquisition Strategies • Need: Consistent Shipbuilding Contract Requirements – 04/02/SS - Q4 • Define: SUPSHIP (C200) Responsibility in design process – 04/05/SS - Q3 • Acquisition Strategy and Alignment – 04/PEO/SS - Q3 • Shipbuilding lessons learned process – SS/PEO - Q4 • Define Post-Delivery responsibilities – 04/PEO/05 – Q2

39. SUPSHIP Back to Basics Tasking #2 Standardize SUPSHIP Organization and Functions

40. Tasking #2: Standardize SUPSHIP Functions and Organization • Establish standard SUPSHIP organization • Establish SUPSHIP Standard Codes & Org Chart – Q2 • Re-Establish independent SUPSHIP Bath QA Department – Q2 • Define SUPSHIP Products & Services by functional area – Q4 • Establish standard SUPSHIPmetrics to assess and influence shipbuilders • Define common Quality (C300) metrics – Q1 • Define cost and schedule metrics, including EVMS – Q3 • Establish Common Business Processes by functional area • Implement SUPSHIP Quality Team (C300) Results - Q1 • Common IT (C800) functionality – Q1 • Common Comptroller (C700) functions – Q1 • Programmatic Oversight (C150) – Q3 • Engineering (C200) functionality – Q4 • Common Contract (C400) functionality – Q4

41. SUPSHIP Back to Basics Tasking #3 Ensure SUPSHIP resources ($$ and People) are properly allocated

42. Tasking #3: Ensure SUPSHIP resources ($$ and People) are properly allocated • Efficient alignment of SUPSHIP manning – 04Z/SS – Q4 Annually • Evaluate Manning vs Workload Changes • Align $$ and CIVPERS requirements across SUPSHIPs • Execution/Budget years • Are we properly staffed? • Is workload accounted for/has it shifted? Q4 Annually • CDRs Reserve Request? Annual review Q4 • Update SWFT manning model to determine required resources over FYDP – 04Z/SS • OPNAV (N81) Full Accreditation of SWFT-PM - Q1 FY10 • POM/PR input to (N8F) resource sponsor – Q1 Annually • Determine efficient & effective alignment of remote sites • Site analysis (Mobile, Marinette, San Diego, New Orleans) - Q1 • Establish Detachments (if necessary) – Q4 FY10 • NAVSEA In-Sourcing – SUPSHIP BOD – Q1 FY10

43. SUPSHIP Back to Basics Tasking #4 Recruit, hire, train and retain the talent needed at the SUPSHIPs

44. Tasking #4: Recruit, Hire, Train and Retain the talent needed at the SUPSHIPs • Recruit & Hire • Establish a THREE year plan) to meet CIVPERS manning requirement – Q4 • Based on SWFT output and updated annually • Surge Capability using contract vehicles • SUPSHIPs Team with local HRSC/HRO • Participate on NAVSEA recruiting teams – SEA10/04/SS • College recruiting for diversity and new employees – Q2 each SS • Military TAP class recruiting for experienced employees • Obtain & deploy lessons learned from SS Gulf Coast hiring success – Q1 • Train/Mentor • Broaden SUPSHIP Skill sets, increase diversity, retain required expertise • Continue to deliver SOM training- class schedule Q1 • 9 classes delivered in FY09 (~225 SUPSHIP personnel @ 7 locations) • 12 classes scheduled in FY 10 (~300 SUPSHIP personnel targeted) • Develop specific required training at SUPSHIPs – Q2 • Establish Rotation billets across SUPSHIPs/PEO/NAVSEA – Q1 • Continue development of SUPSHIP Training Continuum – Q1 thru Q4 • Retain/Mentor • Monitor retention information at each SUPSHIP - Annually • Establish individual succession-readiness Plans – Q4 • Incentive tools for CIVPERS ($$, awards, promotion, NSPS) – Q2 SS • Develop/codify experience required for critical SUPSHIP positions – Q2 SS

45. Revised Project Oversight Team Timeline Summary of Changes: • Extended Roles Team activity completion into early Apr 2010 • Project Analysis and Reporting Team start shifted to Apr 2010 due to shift in completion of Roles Team • Recognized Implementation & Sustainment Actions • June 2010 completion timeframe maintained