Lean Repair Excess Material Kaizen Trident Refit Facility

1. Lean RepairExcess Material KaizenTrident Refit Facility Presenters: Tom Sweeney, Technical Director Ed Victoriano, Deputy Department Head - Supply Wayne Collier – Lean Coordinator 31 Jan 06

2. Reduction of Excess Material Review the material processing value stream from ordering through job completion and associated material reconciliation Project Goals: Support production process flow Minimize excess material in plant stock Minimize unused material returned to RAM Review material support process. Identify and implement improvements Identify best practices Schedule and complete roll out of best practices to all shops Employ methods to sustain improvements – i.e. modify requisitioning process so Planners cannot order in-stock material in Pre-Extended Bin stores through automated work requests, incorporate excess material identification in 5S Apply lessons learned to other processes – i.e. tool issue and return, weight test services… Excess Material Kaizen

3. Lean projects supporting topic of Excess Material to date: Excess Material Kaizen • Code 500 – MTIS Operations 5S • Flexhose Shop 56A 5S • Insulators/Lagging Shop 57A 5S • Optics 5S • Paint Shop 71A 5S • Shop 11A 5S • Shop 17A 5S • Shop 25D 5S • Shop 26A 5S • Shop 26B 5S • Shop 31A 5S • Shop 38 5S • Shop 51A 5S • Shop 51B • Shop 64A 5S • Supply-Receiving VSM • Triper VSM

4. Material Inventorydata tracking • TRFKB does not operate NEMAIS. • TRFKB uses LDS which does not track excess production material • Data on hand would be skewed for the purposes of this presentation as TRFKB: • Supply Dept. and its systems process/include material for other commands (appx. 50%) • has lost 5 boats since 2002.

5. Changes: PEBs (Pre Expended Bins) maintained by Supply in the shops PEBs are located at the point of use PEBs are informal Kanbans Formal Kanbans have been established when needed Established review at the end of each refit for excess material between Supply and Production Shops Planners cannot automatically order material through an AWR if a replenishment system/PEB is established. Results: Reduced Inventory Reduced square footage usage/need Created greater trust in Supply by the shops – less “stuffing their cheeks” syndrome More value-added shop hours with reduction in shop’s supply related duties (formal and informal) Excess Material KaizenProcess Changes Made

6. Lean MaterialInitiative Local lean methods used to minimize excess material in plant stock • 5S & Visual Controls • Kanban/Pull systems • Point of Use Storage • Single Point Storage Local lean methods used to minimize material transfers to Residual Asset Management (RAM) • Stocking at Point of Use • Communication between planners and shops on material availability for future use

7. Example of Kanban A few of our local example(s) of a demand pull, kanban system: • Shop 71A • Shop 38A • Shop 57A Insulators/Lagging

8. Excess Material Kaizen Pictures Shop 38A After Order soon Before Order Now!

9. Excess Material Kaizen Pictures Shop 71A supply cage – All items inventoried, labeled and cataloged Shop 71A After Before

10. Excess Material Kaizen Pictures Insulators/Lagging Shop 57A Before After • single location • point of use bins • limiting inventory by bin size • providing confidence in supply due to good visual control

11. Lessons Learned: The shops’ lack of a Supply process value stream understanding led to a systematic, well-intentioned, vicious cycle of creating gold piles at the point of use. In turn, lengthy interval of re-order from Supply (due to gold piles) eliminated part numbers/replenishment system activity. Shops were spending a lot of time doing Supply related functions instead of their value added work. 5S has helped establish defined locations and minimize the number of locations for material in shops. This has: Reduced inventory Reduced on-value added search-for-parts time Increased confidence and accuracy in material supply Increased ease of Kanban/PEB implementation. Sustaining and identifying further improvement occurs as a result of 5S auditing system. Excess Material Kaizen

12. Recommendations: Continue to roll out PEBs and kanbans throughout shops Give Supply a round of applause for expanding lean-type activity beyond formal Kaizen events Incorporate reasoning behind established replenishment systems in employee indoctrination to help prevent the nature of gold piling instincts in the shops Train 5S auditors and incorporate a check for directly auditing excess material during 5S audits Further evaluate material return policies and administrative processes in the Supply system for more flexibility Excess Material Kaizen

13. FY06 Lean Program Overview

14. Preparation for March IPE VTC • 100% of TRFKB’s IPE has been reported electronically • TRFKB’s IPE budget has been submitted through our Finance and Accounting Department to SUBLANT

15. Thank You