SUBMARINE MAINTENANCE VALUE CHAIN & PROCESS MAPS

1. SUBMARINE MAINTENANCE VALUE CHAIN & PROCESS MAPS

2. Our Problem Maintain KPI’s: On-time Delivery and Performance to Budget Lost SSN Operational Days FY04 Cost Overruns FY04 Deep Maintenance * March 04 Facilitated Action Accumulating Lost SSN Days * Accumulating Cost Overruns Reliance on lagging indicators resulted in missed opportunities to improve future performance

3. OUR GOAL Manage and Lead Cost-Wise Readiness by Following Common Measurable/Measured Processes

4. Submarine and SHIPMAIN Maintenance Processes Operate & Evaluate Ship Modernization Change Needed? Logistic Support Policy Help Needed? Discover and Document Work When? Who? Contract? Feedback and Analyze Data Validate and Diagnose Work Integrate and Screen Work Operate & Evaluate Ship Identify Work Candidate Evaluate Work Candidate Estimate and Task Work CFT1 Plan Work Candidate Plan Work Execute Work Contract Approved Work SHIPMAIN Fleet Maintenance Process CFT2 Coordinate Work Execution Execute Work CFT3 Fixed Requirements (e.g., Inspections, Services) Analyze Results

5. Submarine Maintenance Process Modernization Change Needed? Operate & Evaluate Ship Logistic Support Policy Help Needed? Discover and Document Work When? Who? Contract? Feedback & Analyze Validate and Diagnose Work Feedback Integrate and Screen Work Work Authorization Estimate and Task Work Plan Work Execution Planning Execute Work Execution Advance Planning

6. MAINTENANCE RESOURCES & RESULTS LOGISTICS SUPPORT POLICY IBIB OPTAR 1B4B 1B4B-I 1B5B SAILORS AFLOAT SAILORS ASHORE TIME MATERIAL, TECHNICAL & INDUSTRIAL PERSONNEL Work Authorization Advance Planning Execution Planning Execution Feedback HULL READINESS

7. MAINTENANCE: WHY WE MEASURE Work Authorization Advance Planning Execution Planning Execution Feedback Do we have the time to accomplish the necessary work? Do we have the funds to accomplish the necessary work? Is authorized work planned to support smooth execution? Are our Execution Management Teams prepared to succeed? Are the industrial skills available in sufficient numbers to execute maintenance at all levels? Are we effective in the execution of maintenance at all levels? Are we identifying the right work? Is Work being assigned at the right level? Are ship systems performing as they should?

8. MEASURES: WORK AUTHORIZATION (PUBLIC DEPOT)

9. MEASURES: WORK AUTHORIZATION (PRIVATE DEPOT)

10. MEASURES: ADVANCE PLANNING (ALL DEPOT)

11. MEASURES: EXECUTION PLANNING (ALL DEPOT)

12. MEASURES: EXECUTION (ALL DEPOT)

13. MEASURES: FEEDBACK

14. DEEP MAINTENANCE VALUE CHAIN

15. MAINTENANCE: DISCOVER & DOCUMENT RELIABILITY CENTERED MAINTENANCE ENGINEERED REQUIREMENTS Inspection & Training Visits Watch Standing Zone Inspection PATs POTs O-Level PMS I-Level PMS D-Level PMS DFS PLANNED MAINTENANCE EMERGENT MAINTENANCE LOGISTIC SUPPORT POLICY Operate & Evaluate Ship VALIDATE & DIAGNOSE 2-KILO Modernization SHIPALT Request

16. MAINTENANCE: VALIDATE & DIAGNOSE SQUADRON RMC SHIP VALID WORK? NO REJECT ASSIGN TA3 YES YES 2-KILO COMPLETE? VALID WORK? NEED EXPERT? REVIEW 2-KILO PROVIDE TECH ASSIST YES YES 2-KILO NO NO NO REJECT INTEGRATE & SCREEN DISCOVER & DOCUMENT CSMP

17. MAINTENANCE: INTEGRATE & SCREEN NAVSEA SUBLANT RMC SHIP Modernization OFF-SHIP ASSISTANCE NEEDED? URGENT DO NOW? I-LEVEL CAPABLE? REVIEW CSMP 2-KILO ASSIGN TA1 NO NO NO YES YES SCHEDULED AVAILABILITY ASSIGN TA4 VOYAGE REPAIR ASSIGN TA2 VALIDATE & DIAGNOSE CSMP TA4 BACKLOG CSMP TA2 BACKLOG CSMP TA1 BACKLOG

18. MAINTENANCE: INTEGRATE & SCREEN: VOYAGE REPAIR CFFC SUBLANT RMC SHIP CHOOSE NSY INTEGRATE & SCREEN PUBLIC REMOTE NSY CAPACITY? CHOOSE ACTIVITY NO I-LEVEL CAPABLE? LOCAL NSY CAPACITY? IDIQ CONTRACT? YES PRIVATE NO NO SOLE SOURCE CONTRACT YES YES YES I-LEVEL CAPACITY? NO YES I-LEVEL PLAN & REPAIR NSY PLAN & REPAIR IDIQ PLAN & REPAIR NSY PLAN & REPAIR KTR PLAN & REPAIR NSY PLAN & REPAIR

19. MAINTENANCE: INTEGRATE & SCREEN: SCHEDULED AVAIL OPNAV SUBMEPP SUBLANT SQUADRON RMC FLEET SCHED CONF CNO AVAIL SCHED CNO AVAIL ESTIMATE & TASK Modernization AWP SUB FORCE OP SCHED SUB SQDN OP SCHED CNO TYPE AVAIL? FMAV EMERGENT AVAIL ESTIMATE & TASK INTEGRATE & SCREEN Z AVAIL WP Z AVAIL A AVAIL ESTIMATE & TASK FMAV WP

20. MAINTENANCE: MODERNIZATION OPNAV NAVSEA SUBMEPP SUBLANT SQUADRON RMC SHIP CAPABILITY UPGRADE REQUESTS PROGRAM ALT APPROVAL PROCESS NDE ALT BACKLOG D-ALT BACKLOG RM&A UPGRADE REQUESTS SHIPALT REQUEST INTEGRATE & SCREEN DISCOVER & DOCUMENT CHANGES

21. MAINTENANCE: ESTIMATE & TASK NAVSEA SUBMEPP SUBLANT NSY PRIVATE YARD RMC BUDGET PROCESS CNO AWP CNO AWP BUDGET PROCESS PROVIDE ESTIMATES PLAN WORK TASK WORK Z AVAIL WP FMAV WP Z AVAIL WP INTEG & SCRN SCHEDULED AVAILABILITY

22. MAINTENANCE: ESTIMATE & TASK: CNO AWP NAVSEA SUBMEPP SUBLANT NSY PRIVATE YARD APPROVE & FUND AWP1 CONTRACT PRIVATE SECTOR TASK WORK NO NSY AVAIL? ISSUE AWP 1 ISSUE AWP 2,3 APPROVE & FUND AWP1 YES TASK WORK START PLANNING PROVIDE ESTIMATES PLAN WORK CNO AWP

23. MAINTENANCE: ESTIMATE & TASK: FMAV WP NAVSEA SUBLANT NSY PRIVATE YARD SQUADRON RMC SHIP IDENTIFY ALT CANDIDATES PROVIDE FUNDS PROVIDE FUNDS IDENTIFY ALT CANDIDATES PROVIDE ESTIMATES IDENTIFY WP CANDIDATES REVIEW & FORWARD WP WDC YES Z AVAIL NEEDED? HAVE CAPACITY? IDENTIFY WP CANDIDATES NO A AVAIL PLAN WORK FMAV WP IDENTIFY WP CANDIDATES REJECT WORK

24. MAINTENANCE: PLAN WORK NAVSEA SUBLANT SQUADRON NSY PRIVATE YARD RMC SHIP PROVIDE FUNDS ADVANCE PLANNING EXECUTION PLANNING PROVIDE FUNDS SCREEN NEW WORK APPROVE SCHEDULE TRAIN PROJECT TEAM ASSIGN PROJECT TEAM PRODUCTION PLANS IDENTIFY WORKFORCE ORDER LLTM RECEIVE MATERIAL ROUTINE PLANNING MESSAGES EXECUTE WORK ORDER MATERIAL PLANNING AVAILABILITY PRODUCE JOB INST DEVELOP AVAIL SCHEDULE ESTIMATE & TASK SCREEN NEW WORK CREW TRNG & PREPS APPROVE SCHEDULE

25. MAINTENANCE: EXECUTE WORK NAVSEA SUBLANT SQUADRON NSY PRIVATE YARD RMC SHIP PROVIDE FUNDS SCREEN NEW WORK FEEDBACK & ANALYZE GUARANTEE PROVIDE FUNDS SCREEN NEW WORK APPROVE SCHEDULE COMP CONF ARRIVAL CONF WEEKLY MEETING CYCLE ROUTINE AVAIL REPORTS COMPL WORK RECEIVE NEW MATERIAL EXECUTE WORK ORDER NEW MATERIAL PREARRIVAL CONF PRODUCE NEW JOB INST REVISE SCHEDULE PLAN WORK SCREEN NEW WORK CREW TRNG ON NEW SYS SYSTEM CERT APPROVE SCHEDULE

26. MAINTENANCE: FEEDBACK & ANALYZE OPNAV NAVSEA SUBLANT SQUADRON NSY PRIVATE YARD RMC SHIP ROUTINE REPORTS TMA/TMA FINANCIAL DATA LOGISTIC SUPPORT POLICY CHANGE SORTS REPORTS EXECUTE WORK ROOT CAUSE CHANGES DFS DATABASE MODERNIZE MAINTENANCE ACTIVITY PERFORMANCE ANALYSIS CSMP BACKLOG 3M OARS DATABASE

27. MAINTENANCE: LOGISTIC SUPPORT POLICY CHANGE OPNAV NAVSEA SUBLANT SQUADRON NSY PRIVATE YARD RMC SHIP Design. Safety Requirements. Test Requirements Technical Documentation, Specifications and Standards. Maintenance Engineering. Computer Programs. Fleet Engineering Support. Training and Manning. Integrated Logistics Support. Data Management. Configuration Management. Test Equipment, Tools, Jigs, and Fixture. Supply Support. Repair Facilities. CHANGES OPERATE & EVALUATE SHIP

28. CURVES

29. WORK AUTHORIZATION

30. ADVANCE PLANNING

31. EXECUTION PLANNING

32. EXECUTION

33. EXECUTION

34. Identify Cost Drivers Supporting the Value Chain IFMM DATA WORKBOOK Data Handout

35. PROCESS EFFICIENCY Value Stream A Value Stream is all the steps (both value added and non-value added) in a process that the customer is willing to pay for in order to bring a product or service through the main flows essential to producing that product or service. This Task does not include the Time & Resources to do Detailed Process Mapping. We will proceed with a few interviews to nail it down

36. Shore & Afloat Infrastructure Maintenance Policy Force Structure Tech & Business Authority, Standards, Reqts, & Assess Manning: Recruitment, Assignment, Training, and Qualification Logistics Support Chain IDRC Readiness Deep Maintenance IDRC Maintenance Modernization Platform Productivity Shore & Afloat Infrastructure Maintenance Policy Tech & Business Auth, Stds, Reqts, & Assess Manning: Recruitment, Assignment, Training, and Qualification Logistics Support Chain Force Structure Fdbk SetRequirements Trials Schedule & Plan PATS/ POTs Certify Execute Maintenance ContractFor Work Manage Changes Maintain Analyzed Deep Maintenance process Cost Overruns FY04 Value Chain Analysis: Performance Drivers $M Private Sector AvailsPrincipal Driver of Overruns Lack of recent private sector significant repair experience Inadequate attention/adherence to contracting/planning milestones Inflexible change management processes Poor understanding of impact of churn 3 areas required immediate Enterprise attention Rootcauses

37. FLEET RESPONSE PLAN IMPACT

38. Fleet Readiness Program Impact Superceded Inter-Deployment Training Cycle (IDTC) Intermediate & Advanced Phases Basic Phase D- D+ LV/UPK Post Deployment 9 wk Avail 16 wk Basic Trng Work Ups Deploy Continuous Maintenance Continuous Maintenance Surge Ready After C2X 4 wks Surge Capable Approx 52 wks Approx 24 wks Appx 24 wks Approx 24 months Fleet Readiness Training Program (FRTP)from SURFTRAMAN Integration Phase Sustainment & Deployment Phases Deployment & Sustainment Phases Maintenance & Unit Level Phases Deployment S T A N D D O W N Sustainment 9 wk Avail 16 wk Basic Trng Work Ups Sustain- ment Deploy- ment 16 wk Basic Trng 9 wk Avail ~8 wk Basic Trng 9 wk Avail ~8 wk Basic Trng Continuous Maintenance CM** CM** SD* Approx 25 wks 4 wks 4 wks Emergency Surge Ready Surge Ready After C2X R+ *** R+ *** Approx 27 months * SD = Stand-Down/Post Deployment Leave and Upkeep ** CM = Continuous Maintenance Opportunities (CNO Avail/Scheduled Avail/Unscheduled Avail) *** R+ = Days after Return from Deployment (some ships may get Sustainment prior to Maint/Unit Level Phases, others may not)

39. Notional FRTPSurface Force Ship Weapons Onload BGIE-WC BGIE-GC BGIE-U MITT GCT INSURV Fallon TACTRAGRU TSTA FBP ESU TRNG FEP UD MGIT 3-M Cert TCD SMI C2X CART T3X II PC C5RA XA1 CMAV JTFEX FPEX HMERA II BGSIT POM Refresher TRNG ALOA/ CS TST AVCERT XCZ 50% A-240 XCZ 100% A-75 WPER A-30 LOA Deployment Weapons Offload MAT IA CFFC Exercises CART I Leave & Upkeep PD C5RA XA2 cmav QUARTERLY XA3 CMAV QUARTERLY 1 2 Integrated Phase Emergency Surge Ready Emergency Surge Ready Surge Ready Sustainment Phase (Routine Deployable) 3 Unit Level Phase XCZ Major Availability As of 01 SEP 2004 A-0 HMERA I A-45 R+0 XA4 CMAV Availability Phase Deployment Phase Maintenance Team Significant Involvement Maintenance Execution Event Managed by Maintenance Team Maintenance Team Coordinates or Manages “R+” Milestone 810 365 217 0 98 630 126 35 R+ Days RFD AVAIL UNIT LEVEL INTEGRATED. SUSTAINMENT DEPLOY Post Avail 1 2 3

40. Our Plan • Map the IDRC Maintenance Process • ROMULUS Study and Interviews • Map the Depot Maintenance Process • ROMULUS Study and Interviews • Identify the Value Chain using Michael Porter’s Methodology • ROMULUS Study the Process Maps • Identify Cost Drivers Supporting the Value Chain • Identify the Attributes and Measures that characterize a successful Availability • The Perot-ROMULUS Team • Develop Metrics to forecast problems so that action can be taken well in advance to prevent time and cost overruns • The Perot-ROMULUS Team

41. Shore & Afloat Infrastructure Maintenance Policy Force Structure Tech & Business Authority, Standards, Reqts, & Assess Manning: Recruitment, Assignment, Training, and Qualification Logistics Support Chain IDRC Readiness Modernization Deep Maintenance IDRC Maintenance Platform Productivity THE MAINTENANCE VALUE CHAIN

42. Shore & Afloat Infrastructure Maintenance Policy Tech & Business Auth, Stds, Reqts, & Assess Manning: Recruitment, Assignment, Training, and Qualification Logistics Support Chain Force Structure Fdbk SetRequirements Trials Certify PATS/ POTs Schedule & Plan Execute Maintenance ContractFor Work Manage Changes CURRENT DEEP MAINTENANCE VALUE CHAIN

43. Integrated Fleet Maintenance Management Model Feedback and Analyze Data Discover and Document Work Validate and Diagnose Work Integrate & Screen Work Estimate and Task Work Plan Work Execute Work Work Authorization Execution Advance Planning Execution Planning IFMM Designed in the 1990’s for the Fleet Maintenance Officer QMB

44. Deliverables • IDRC Maintenance Process Spaghetti Diagram • Depot Maintenance Process Spaghetti Diagram • Identify the Value Chain using Michael Porter’s Methodology • Identify Primary Activities Supporting the Value Chain • Identify the Attributes within the Primary Activities that characterize a successful Availability • Develop Attribute Metrics for the Primary Activities to forecast problems so that action can be taken well in advance to prevent time and cost overruns

45. IDRC Maintenance Process • References • JFMM • SUBLANT INSTRUCTIONS • Interviews • CSL Scheduling Officer N312 • CSL Supply Readiness Officer N411R • CSL Maintenance Readiness Officer • SUBMEPP • MA-RMC Rep • Squadron Rep • Naval Shipyard Rep • SUPSHIP Rep • ICSL ASST C4 Officer N60: 836-1065 • CSL Training & Readiness Officer N74: 836-1157

46. IDRC

47. Notional IDRC688 Submarine STANDOWN TRAINING TRAINING POM Deployment UPKEEP UPKEEP 6 MOS 4 MOS Major Availability 5 MOS 6 MOS DEPLOYMENT 3 MOS UPKEEP Availability Phase Deployment Phase

48. Depot Maintenance Process • References • JFMM • SUBLANT INSTRUCTIONS • OPNAVNOTE 4700 • BPMP • Interviews • SUBMEPP Rep • CSL Maintenance Readiness Officer • MA-RMC Rep • Squadron Rep • Naval Shipyard Rep • SUPSHIP Rep

50. Identify the Value Chain • References • Michael Porter’s Book • IFMM Model • Analysis • Analyze Process Maps against the IFMM Model • Identify Primary Activities that support the Value Chain • Gather Data • Analyze Data to identify Metrics that directly relate to good Schedule and Cost Performance