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Maritime Logistics Community News : Autumn 2010
28 NAVY SUPPLY NEWSLETTER AUTUMN 2010 For some time, change has been a constant. Some of us will recall the major organisational changes under the Defence Reform Programme (DRP), most will be witness to the changing operational environment. Organisational change theorists (like Lewin) talk about a three step model -- 'unfreeze' the status quo, make the change and 'refreeze' the new change to make it permanent. We could be forgiven for thinking that, in the case of Defence over the last two decades, there has been considerable blurring of these suggested steps. And now we are embarking upon a further round of major organisational change -- the Strategic Reform Programme (SRP). Borne of the 2009 Defence White Paper, the SRP is focussed on reforming and reducing the cost of doing business in order to fully fund capability acquisition outlined in Force 20301. The focus on maritime power in the White Paper, and the commitment to investing savings over and above the SRP targets in remediating current deficiencies in Navy capability, are significant incentives to Navy to make the necessary changes. As Chief of Navy has stated, "the intent of the Strategic Reform Program is clear - we will make the reforms and savings because we want to. For the next four to five years, this is going to be the only game in town, and it is not going away'2. CN also noted that New Generation Navy (NGN) and Continuous Improvement (CI) are our vehicles for successful reform. NGN is fundamentally about changing our culture, whilst SRP is driving deep reform through putting Navy's signature behaviours into practice. The reality is that people are the enablers for any change and real continuous improvement focuses on changing behaviour - the way we think and act. Against that background, the Directorate of Navy Continuous Improvement (DNCI) was established in July 2009 with the responsibility for identifying opportunities for improving the way Navy does its business and developing a culture of cost consciousness. DNCI is specifically responsible for 'facilitating' continuous improvement projects (using contracted specialists or Navy personnel) across Navy and delivering CI training and awareness to the Navy community. Our definition of continuous improvement, which in part defines our approach, is: continuous and incremental improvements to processes, by removing unnecessary activities and variations using a structured and systematic methodology, facilitating the improvement in the workplace through, and with, embedded staffing and building an enduring improvement culture. DNCI will facilitate the development of a culture of cost consciousness across Navy by equipping commanders and managers at all levels with the tools to deliver capability more effectively and efficiently by: •• rolling out a programme of Lean CI training and awareness across Navy which will reinforce expected reform behaviours and Navy's signature behaviours; •• supporting Lean business improvement programmes across Navy in accordance with DCN priorities, with DNCI specialist resources or a combination of contracted and DNCI specialists; and • providing DNCI specialist support to the Navy SRP governance framework. The directorate comprises a small HQ element of specialist Lean Specialists and support functions and some 28 regional Lean Specialist positions to be stood up and filled as required by the level and nature of CI project activity. Currently only four of the regional specialist positions are filled, and these personnel are still under-training, so growing the specialist navy Lean personnel will be a critical constraint on our ability to deliver against the plan. Our near-term focus will be on collaborative projects with the Defence Materiel Organisation (DMO) looking at opportunities for achieving efficiency in the way we sustain navy capability. As our capacity grows we anticipate proving Lean support to all Navy SRP streams and to less complex improvement projects across Navy. Clearly this is new ground for DNCI, Navy and indeed contracted Lean specialists. On that basis, we selected a 'bite sized' capability -- the Mine Hunter Coastal capability, to cut our teeth and pilot our methodology. DNCI, MCD Group and the MCD Systems Project Office (SPO) commenced work on the Minehunter Coastal System Capability Improvement Project (MHCSCIP) late 2009 with initial scoping of improvement opportunities and development of indicative efficiency dividends to inform Navy's response to the SRP targets. These discussions identified some 30 areas for possible improvement and further analysis ranging from, the optimal number of platforms required to deliver capability to optimising spares inventory and informed our Thriving in a Changing Environment -- The Navy Continuous Improvement Program The 'teens' promise to be a time of considerable change for Defence and Navy. FROM THE TEAM AT DNCI 1 The SRP savings target of some $20bn over 10 years equates to approximately a 7 percent annual target. 2 CN SRP Presentation, 12 Feb 2010.