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USAF and USN Lean Enterprise Transformation PDF

93 Pages·2006·3.52 MB·English
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In Pursuit of Understanding Lean Transformation-- Capturing Local Change Journeys in a DoD Field Environment Research conducted by: Ted V. Shoepe, Major, USAF USAF-MIT Lean Aerospace Initiative Fellow 2005 – 2006 Research supported by: George Roth, Ph.D. Massachusetts Institute of Technology Sloan School of Management 77 Vassar Street Room 41-205 Cambridge, MA 02139-4309 August 2006 The views expressed in this article are those of the author and do not reflect the official policy or position of the United States Air Force, Department of Defense, or the U.S. Government. 2 In Pursuit of Understanding Lean Transformation-- Capturing Local Change Journeys in a DoD Field Environment Research conducted by: Ted V. Shoepe, Major, USAF USAF-MIT Lean Aerospace Initiative Fellow 2005 – 2006 Abstract The global security landscape has drastically changed since the Cold War. The attacks of September 11 and subsequent coalition operations demonstrate that the global war on terror is against a new breed of enemy—continuously changing and adapting to US military strategies and tactics. Future Department of Defense (DoD) weapon system acquisition organizations and processes must adapt with this new threat—transforming to an enterprise that is capable of quickly delivering value to the war-fighter in a resource constrained environment with high operational tempos and aging fleets. Guided by the Secretary of Defense, both the USAF and USN have adopted “lean” principles as a compass to help guide their transformational journeys. "Lean" has been identified to explain the dramatic performance and improvement advantages that Japanese automobile companies have over their US competitors. These concepts are now being applied in the DoD to initiate continuous improvement activities, deliver value to the warfighter and help cope with budget constraints. This study describes two of the US Air Force and US Navy enterprise-level continuous process improvement programs and the ways in which each contribute to local results in a field case setting. Additionally, this study tests the applicability of ongoing LAI lean enterprise change theory in the context of a DoD environment. Three noteworthy results were discovered. First, both the Navy and USAF have been using lean principles for years. Pockets of success in the respective enterprises have been noted over the years; however, they have traditionally been limited to the manufacturing floors of the Navy shipyards and USAF Air Logistic Centers. Secondly, on the foundation of these successes, both organizations are placing the strategic leadership, vision, infrastructure, and processes in place to proliferate continuous improvement throughout their enterprises. This study also generated specific recommendations for each field location to consider based upon research findings. Lastly, with minor tailoring, the ongoing change management theory development at LAI is applicable to evaluating enterprise change in the context of a DoD field case. Research supported by: George Roth, Ph.D. Massachusetts Institute of Technology Sloan School of Management 3 4 Acknowledgements I structured this research to deliver value to the participating USAF, USN enterprises and to the LAI consortium. As such, I could not have accomplished this research project without the support and forthcoming nature of the field locations. I would like to issue a special thank you to the Naval Undersea Warfare Center—Division Newport. Every employee ranging from the strategic to tactical levels of the organization was incredibly knowledgeable and willing to actively participate. In particular, the lean office was spectacular and served as an invaluable resource for history, data, clarifications, and facilitation of interviews. Thank you. A second thank you belongs to the entire C-17 Enterprise. Active participation from each enterprise stakeholder was essential to capturing the enterprise transformational journey. Thank you to the B&I office for coordinating the site visit and interview sessions. Lastly, a very special thank you goes to the enterprise leadership who supported the conduct of this research. And to Dr. George Roth, who was instrumental in helping to gain traction on this project and guiding me through the research process. In upcoming sections, I will describe the DoD imperatives for change. The first is increased operational tempo. I understand that participation in this study was an additional duty for everyone and that the interview sessions presented an opportunity cost in terms of fulfilling their normal responsibilities. Thank you for your time, without your support this study would not have been completed. The views expressed in this article are those of the author and do not reflect the official policy or position of the United States Air Force, Department of Defense, or the U.S. Government. 5 6 7 Table of Contents ACKNOWLEDGEMENTS 5 TABLE OF CONTENTS 8 LIST OF TABLES AND FIGURES 10 I. INTRODUCTION 12 DOD IMPERATIVE—EVOLVING THREAT 12 DOD IMPERATIVE—BUDGET PLATEAU 13 DOD IMPERATIVE—AGING FLEETS 14 II. CHANGE MANAGEMENT…A COMPLICATED PLAYBOOK 16 WINNING AT CHANGE 16 THE WHEEL OF CHANGE 17 ENTERPRISE CHANGE CAPABILITIES 18 STITCHING THEM ALL TOGETHER…A CENTER OF GRAVITY FOR CHANGE? 21 III. LEAN ENTERPRISE CASE STUDIES AND METHODOLOGY 24 INTRODUCTION AND METHODOLOGY 24 IV. NAVAL UNDERSEA WARFARE CENTER (NEWPORT) CASE STUDY 27 CASE STUDY BACKGROUND—NAVSEA LEAN SIX SIGMA 27 Setting the Stage—Management and Functional Realignment 28 Establishing the End Zone and Building a Team 31 Formulating and Implementing the Strategy 32 Governing Structure and Process 34 FIELD LOCATION—NUWC DIVISION NEWPORT 36 Lean Embarkation And The First Six Months 37 Measuring Progress and intra-portfolio benchmarking 40 A Foundation for Sustainable Change is in Place 42 Enterprise Strategy and Structure is Employed 44 Multiple Organizational Innovations are Consistent and Sequenced 46 Distributive Leadership, People as Enablers 48 SUMMARY IMPRESSIONS 49 V. C-17 ENTERPRISE CASE STUDY 51 CASE STUDY BACKGROUND—AIR FORCE MATERIAL COMMAND 51 The Early Years…Depot Success 53 Lean Now Deployment…Expanding to Enterprise Transformation 57 Continuous Process Improvement Convergence—AFMC AFSO21 58 AFMC AFSO21 Next Steps and Summary Impressions 61 FIELD LOCATION—C-17 ENTERPRISE 63 Lean Enterprise Deployment—Assessing The Current State 64 Creating Future State Attributes, Spawning Lean Imperatives 68 Basic Change Capabilities Are in Place 69 Enterprise Strategies And Structures Are Utilized 71 Active Employee Involvement Meets Personnel Growth Opportunities 73 SUMMARY IMPRESSIONS 74 VI. ANALYSIS AND DISCUSSION 76 DIVISION NEWPORT ASSESSMENT AND OPPORTUNITIES 77 C-17 ENTERPRISE ASSESSMENT AND OPPORTUNITIES 80 8 TESTING PRECEPT APPLICABILITY TO DOD CASE SETTINGS 83 LIMITATIONS OF ASSESSMENT 85 VII. CONCLUSIONS AND RECOMMENDATIONS 86 DIVISION NEWPORT SUMMARY IMPRESSIONS AND RECOMMENDATIONS 86 C-17 ENTERPRISE SUMMARY IMPRESSIONS AND RECOMMENDATIONS 88 VIII. SUGGESTIONS FOR FUTURE RESEARCH 90 REFERENCES 92 9 List of Tables and Figures FIGURE 1, US MILITARY ACTIVE DEPLOYMENT RATES ...................................................................13 FIGURE 2, DEFENSE OUTLAYS AS A SHARE OF GDP .........................................................................13 FIGURE 3, AGING USAF FLEETS ..............................................................................................................14 FIGURE 4, “THE CHANGE WHEEL” .........................................................................................................18 FIGURE 5, CAPABILITIES FOR LEAN ENTERPRISE CHANGE ............................................................19 FIGURE 6, VIEWING AN ENEMY AS A SYSTEM ...................................................................................22 FIGURE 7, NOTIONAL TRANSFORMATIONAL CENTER OF GRAVITY .............................................23 FIGURE 8, CASE STUDY DEMOGRAPHICS .............................................................................................26 FIGURE 9, NAVSEA ORGANIZATION ......................................................................................................28 FIGURE 10, NAVSEA LEAN TRANSFORMATION TIMELINE...............................................................30 FIGURE 11, IMPLEMENTATION ACTIVITIES..........................................................................................33 FIGURE 12, NAVSEA LEAN DEPLOYMENT METRICS ..........................................................................35 FIGURE 13, NUWC DIVISION NEWPORT ................................................................................................37 FIGURE 14, NEWPORT DIVISION LEAN TRANSFORMATION TIMELINE .........................................39 TABLE 1, NEWPORT DIVISION ORGANIZATIONAL ASSESSMENT RESULTS.................................41 TABLE 2, FORECASTED NEWPORT DIVISION ORGANIZATIONAL ASSESSMENT RESULTS ......42 FIGURE 15, EXAMPLE OF ENTERPRISE ORIENTATION ......................................................................45 FIGURE 16, LEAN COORDINATION PROCESS .......................................................................................48 FIGURE 17, AFMC ORGANIZATIONS .......................................................................................................52 FIGURE 18, AFMC LEAN TRANSFORMATION TIMELINE....................................................................54 FIGURE 19, LEAN NOW PHASES ...............................................................................................................58 FIGURE 20, AFMC AFSO21 FRAMEWORK ..............................................................................................59 FIGURE 21, C-17 ENTERPRISE ORGANIZATIONAL COMMAND LINKAGES....................................64 FIGURE 22, C-17 ENTERPRISE LEAN+ TIMELINE..................................................................................66 FIGURE 23, C-17 CURRENT STATE ENTERPRISE DEPICTIONS .........................................................67 FIGURE 24, C-17 “NEW” ENTERPRISE .....................................................................................................71 FIGURE 25, C-17 GUIDING PRINCIPLES ..................................................................................................73 TABLE 3, SCORES AND SCALES TO ASSESS PRECEPT EVIDENCE ................................................76 TABLE 4, DIVISION NEWPORT, C-17 ENTERPRISE ASSESSMENTS...................................................77 10

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