Purpose

1. Improving Army QualityPresented to:ASQ Energy and Environmental Conference20 September 2005Diane MeyerU.S. Army, Army Materiel Command Quality Federation Liaison "Need to be faster, more agile, less bureaucratic...Need to fight this everyday"

2. Purpose Provide a General Overview of How We are Improving Quality at AMC "Need to be faster, more agile, less bureaucratic...Need to fight this everyday"

3. Bottom Line Up Front AMC is relentlessly Reengineering Manufacturing, Repair, and Administrative Processes to improve the Quality of Support to the Joint Warfighter "Need to be faster, more agile, less bureaucratic...Need to fight this everyday"

4. What is Quality to the Warfighter? “The quality of products or services is determined by the extent they meet (or exceed) requirements and satisfy the customer, at an affordable cost.” Defense Acquisition Guidebook ACCESSIBILITY SUPPORTABILITY INTEROPERABILITY SURVIVABILITY STANDARDIZATION QUALITY RELIABILITY AVAILABILITY MAINTAINABILITY Systems Engineering factors Quality ensures the Warfighter is READY to execute mission requirements "Need to be faster, more agile, less bureaucratic...Need to fight this everyday"

5. Quality Mgt Sys (including ISO 9000) Metrics Lessons Learned Processes Supplier Mgmt Govt/Commercial Partnerships Past Performance Best Practices Core Competencies Quality Engineering Quality Mgr Software Quality Product Quality mgmt Product Verification AMC Quality Strategies Quality Standards Regulations Defense Acq Guidebook Policies OSD Strategies Quality Improvement Lean Six Sigma Theory of Constraints Voice of Customer Professional Development Training Education Experience

6. AMC Continuous Improvement Vision:An AMC culture of innovation that enables rapid Transformation to the Future Force and continuously creates greater value for the Warfighter Strategy: • Deploy a program ofcontinuous improvementthat reachesevery product and every person in the AMC enterprise • Use Lean Six Sigma (L6S) as the continuous improvement foundation while adapting other best practices to unique demands of Warfighter support • Extend continuous improvement beyond AMC boundaries into every component of the supply chain by establishing partnerships with customers and suppliers • Institutionalize learning and execution through the implementation of formal management processes • Use metrics to track performance, demonstrate value and enable decisions

7. AMC L6S Snapshot • Structured training program producing “certified” change management experts • Patterned after Toyota Production System training • Over 1300 Green Belts, 100 Black Belts, 10 Master Black Belts trained • Additional 54 Black Belts in training • Pursuing “joint” training program with DAU and other services • Increasing production rates, improving quality and reducing cost through major accomplishments across the industrial base • To accelerate deployment and ensure sharing of best practices, fielding a rapid review team of industry experts to conduct hard-hitting assessments of our industrial base • Pursuing Continuous Process Improvement (CPI) savings policy to encourage/enable return or reinvestment of savings to buy additional production quantities or fund additional continuous improvement activities • Supporting OSD CPI end-to-end pilots (H-60 and HMMWV)

8. Faster • Better • Cheaper Improving both organic and commercial industrial base operations Example Lean Six Sigma Achievements • Mean Time Between Overhaul increased from 309 hours to 900+ hours • Overhaul cycle timereduced from 300+ to 100 days T700 Engine Corpus Christi Army Depot M2 Machine Gun Rock Island Arsenal and Anniston Army Depots H-60 Recap Corpus Christi • Kitting enabled production ramp from 300 to 700 weapons/month HMMWV Recap Red River and Letterkenney Army Depots Ground Mobility VehicleLetterkenny Army Depot • Production capability increased from 13 in 2004 to 27 in 2005 • $990K in Lean savings to SOCOM in FY04 • Turn around time reduced from 10 weeks to only 8.8 days SINCGARS Grayhill and ITT • Repair cycle time reduced 50% • Throughput increased from 6 vehicles/day to 26/day • Doubled first pass inspection • Reduced cost by 1/3 Sidewinder Tobyhanna Army Depot • Improved supply condition of Display Keyboard Assemblies from 9000 backorders in Jan 05 to 1000+ in inventory Aug 05 • Productivity improved by 12% • Unit Maintenance Cost reduced by 46%

9. AMC Quality Initiatives • Support OSD Quality Revitalization • OSD Strategic Quality Plan • OSD Senior Quality Advisory Group (QUAG) • Quality input to Defense Acquisition documents • Partner with OSD, ASA(ALT), and DCMA • Integrate with ASA(ALT) to invigorate Quality • Issue HQ AMC Quality Strategy • Improve Product Quality Deficiency Reporting • Tracking Service Wide Quality Issues/Trends • Inter-Service Interface initiative • Integrating into Single Army Logistics Enterprise (SALE) "Need to be faster, more agile, less bureaucratic...Need to fight this everyday"

10. MSC MSC MSC MSC PEO/PM PEO/PM PEO/PM PEO/PM RDECOM RDECOM RDECOM RDECOM AMC Quality Federation (AQF) OSD The AQF… Linking Quality Makers and Policy Makers HQ DA HQ AMC Federal Agencies AQF Other Services LCMCs LCMC= Life Cycle Management Cmd MSC= Major Subordinate Command RDECOM=Research, Development, & Engineering Command Professional Societies Academia DEPOTS, ARSENALS, PLANTS

11. Take-Away AMC has a Vision, Focused Strategies, and Goals leveraging L6S/Continuous Improvement Tools …Working hard and getting results reducing cost and cycle times, improving Quality for the Warfighter Aligns with SECARMY’s Business Transformation Priorities "Need to be faster, more agile, less bureaucratic...Need to fight this everyday"