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Maritime Logistics Community News : Autumn 2010
39 NAVY SUPPLY NEWSLETTER AUTUMN 2010 The MHC class is the first of the Navy capabilities/platforms to be subject to the LEAN program and work commenced in the second half of 2009 to prepare the MHC capability for LEAN. Short History – Strategic Reform Program /LEAN/White Paper/New Generation Navy – What are the links? The Strategic Reform Program (SRP), introduced in 2009, provides a road map for Defence to save $20 billion over 10 years in order for Defence to achieve future capabilities such as those promulgated in the 2009 Defence White Paper. For Navy these include the Landing Helicopter Dock ship (LHD), Air Warfare Destroyer (AWD), Offshore Combatant Vessels (OCV), Future Submarines and Future Frigates etc. From a Navy perspective, the target for reinvestment is approximately $2.2 billion. "With 9 years remaining, that equates to $245 million per year over the 9 years, or approximately $2.27 million per month and every day we delay costs another $75,600 will need to be found later." One approach being employed to achieve significant reform in Navy is through the application of a LEAN business improvement philosophy through an enduring cultural reform program. The philosophy of LEAN lends itself very well with New Generation Navy, in that both are long term enduring philosophies that generate sustainable cultural reform. In mid 2009 the Directorate of Navy Continuous Improvement was formed to be the champion of introducing LEAN in Navy. In the latter half of 2009 DNCI commenced work at HMAS Waterhen, initially engaging closely with key stakeholders in the: Mine Warfare & Clearance Diving System Project Office (MCDSPO) , and the Mine Warfare & Clearance Diving Group (MCDGRP). The primary engagement was to identify potential projects within the MHC squadron that could be subject to LEAN and after some brainstorming sessions, a list of approximately 60 ideas were captured onto a spreadsheet and then circulated to a number of elements within Navy and the DMO for further analysis. Concurrently, DNCI was developing the governance and reporting structures to ensure that appropriate decisions were being made at the right levels within Navy and the DMO. This governance and reporting structure continues to evolve and is subject to the principals of LEAN -- ie to remove unnecessary layers of bureaucracy and to 'drive decision making down' to the right level (link here to NGN signature behaviours). In addition to the MCDSPO and MCDGRP the following organisations/elements at Waterhen were engaged in developing some of the LEAN initiatives/ projects during the last quarter of 2009: the Waterhen Command element, the Fleet Logistics Support Element (FLSE), and the Fleet Support Unit (FSU). Training. During Oct/Nov 09 a number of personnel within the MCDSPO, MCDGRP, FLSE-W and FSU-W undertook the pilot joint Navy/DMO level one LEAN course (4 day course) and students were provided with the basic tools and underlying principals of LEAN. There are also: level two LEAN courses available (5 day course) to build upon the knowledge in the level one course (three personnel at Waterhen completed the pilot course in Dec 09); and recently a level zero one day workshop has been developed and run to provide a detailed overview of LEAN. All of these courses are run/managed/administered by DNCI and more information is available on the DNCI website (http://intranet.defence.gov. au/navyweb/sites/DNCI). One area that is missing within Navy and DMO is suitable level three qualified LEAN instructors/facilitators and until we have developed the right trained and experienced people to oversee and direct the LEAN initiatives (anticipated to take a further 6-12 months) Navy has purchased contractors to help us. Following an industry briefing day at Waterhen (05 Nov 09) a tendering process was initiated and Booz was awarded a contract to assist the combined Navy/DMO team at Waterhen, by providing the level three LEAN expertise. The LEAN training provides an overview of the history of this philosophy, commenced in Toyota's manufacturing industry approximately 40 years ago and how the principles of this philosophy can be applied to other BY CMDR J.J. METZL, RAN LEAN/Strategic Reform Program/Mine Hunter Coastal What does it all mean? The purpose of this article is to provide a short snapshot of how LEAN is affecting the support provided to the Mine Hunter Coastal (MHC) squadron home ported in HMAS Waterhen. In its simplest form LEAN is a process to identify and eliminate waste. VALUE STREAM MAP EXAMPLE -- LCDR ALEXANDER (MCDGRP), MS TEMPLEMAN (MCDSPO), LEUT TAYLOR (MCDSPO), LS KENNY (DNCI), MR HOUSE (MCDSPO)