Submarine Maintenance and Modernization Executive Planning Session (EPS) March 13 & 14, 2007

1. Submarine Maintenance and Modernization Executive Planning Session (EPS) March 13 & 14, 2007 Sponsored by: SUBMARINE TEAM ONE Hosted by: Portsmouth Naval Shipyard

2. Submarine Maintenance and Modernization EPS Team • Submarine Team One ESC Members • Critical Affiliates PMS 392 OPNAV PEOSUB SUPSHIP NAVSEA 07 Naval Shipyards NAVSEA 04 Fleet/Ships Force USE Metrics Rep NAVSEA 08 USE CFT SUBMEPP SUBPAC NSRO SUBLANT NAE

3. The GOAL • Foremost - An increase in Sub operational availability (Ao); a reduction in the rate of Ao loss accumulation • With required material readiness (i.e., programmed maintenance and modernization accomplished) • Supporting force structure and life cycle deployment cycles • Meeting Availability Schedule (reducing durations) • A responsive end-to-end maintenance and modernization process that delivers predictable cost, schedule and quality • Balance X=Y=Z equation / Reduce Differences (Cost and Schedule) • Mitigate impact of non-sub maintenance availabilities • Properly align SY capacity to achieve on time, on cost performance • Improving productivity / Reducing the total cost of submarine maintenance and modernization • Realizing the savings from CPI/Lean • Achieving first time quality

4. Agenda Overview • Introductions and Expectations • “Lean 101” Discussion • USE Perspective and Priorities • End-to-End Process Map (Current State) • EPS Scope • Metrics and Data Analysis • Portfolio of Improvement Initiatives • SWOT Analysis • Strengths, Weaknesses, Opportunities, Threats • Priority Actions for Achieving the Goals • > Submarine Team One Meeting 14-15 March • Directly related subject matter Form, Storm, Norm, Perform

5. EPS Outcome: Top Improvement Priorities • VRLA Battery Alteration (SEA 07 Memo) (07T Gardner) • Naval Shipyards operating with fixed capacity significantly below the required workload causes increased availability duration, work moving across Fiscal Year boundaries, increased costs and overtime, resulting in unpredictable cost and schedule outcomes, adversely impacting Ao. (04X Tesoriero/Butts) • Metrics are too cumbersome, not reliable, too varied, not timely enough, and not predictive; therefore, cannot influence decisions or drive operational or performance behaviors to achieve the desired outcome. (04X Zajic). • Lack of detail in SSN-21/774 class maintenance planning process causes insufficient preparation for CNO avails, unknown avail cost, and late equipment/facility procurement resulting in unpredictable cost/schedule and negative A0 impact - X≠Y≠Z. (SUBMEPP Bassett). • The cost of variability and uncertainty (LBOD priorities, carrier overlap, emergent availabilities (SSN 750), equipment/system failure, test, resource skill mix, etc.) in the execution of shipyard CNO avails are not understood and cataloged. This causes a lack of feedback to the budget & planning processes which leads to under resourcing NSYs. This results in not achieving notional cost and Duration of CNO avails. (04X Savage)

6. What’s Next? • Develop Charters for the priority improvement initiatives – establish/task teams • Outbrief Fleet Maintenance BOD (26 March) (Fuller) • Develop portfolio of all current submarine maintenance / modernization process improvement initiatives • Further develop the end-to-end process map • Integrate and Align with Enterprise Maintenance Providers process improvement tasker • Cost Estimating • Direct Support Services • Sub Team 1 ESC weekly phone calls to monitor and manage improvement initiatives • Sustain the momentum