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Maritime Logistics Community News : Autumn 2010
41 NAVY SUPPLY NEWSLETTER AUTUMN 2010 operational concept of the MHC squadron, we have been able to develop a number of initiatives that have the capacity to make significant changes to business process that will remove excessive waste, saving resources (manpower and money) and improve the levels of service/support that both the MHC squadron and MCD elements expect. • Phase 3 (May-indefinitely) - Investigation/implementation of transformational/LEAN/JDI opportunities/projects (future Phases). Once the various governance boards have approved the appropriate initiatives they will be implemented during phase 3. There is no set end date as the LEAN reform, like NGN, is expected to take time and will eventually become a normal part of every day work. So when do we see the savings? In Jul 09 the MCDSPO annual budget to support the MHC squadron was reduce by 34%, in line with the decision that was made in Jun 09 to place two MHCs into Extended Readiness (HMA Ships Norman and Hawkesbury). Regrettably, this reduction was actually a 50% reduction in the operating budget because of the fixed component of the contract the MCDSPO has with Thales Australia (prime contractor who support the MHC) which could not be changed. As the LEAN team at Waterhen head towards completing phase 2 of the project (due end Apr 10) there have been a number of JDIs and initiatives that have been actioned to remove waste. The MCDSPO has been championing some of these initiatives and the Sustainment section of the SPO has captured and promulgated a number of them in two signals that have been released to date and are available for review on the MCDSPO website (http://intranet.defence.gov.au/dmoweb/sites/MCDSPO) - look for the heading on the front page titled 'signals/documents' then the LEAN heading on the second page. Some of the initiatives are just plain common sense and good business practices and others are more strategically aligned with the direction the MCDSPO has received from the MCDGRP based upon some work currently being undertaken to analyse the capability that is required to meet the governments direction. The LEAN savings are being accrued as they occur and within the MCDSPO we are making regular changes to our business practices as we embrace and inculcate the LEAN philosophy. The big financial savings will come from the transformational initiatives that are being put together and will be submitted via the governance boards to the one/two/ three stars for consideration. It is anticipated that once phase two of the Booz contract is completed that there will be further progress of the transformation/ LEAN/JDI initiatives and that the big savings will be realised/identified and become obvious from next financial year. In the mean time, the combined teams (MCDSPO, MCDGRP, Waterhen Command, FLSE-W, FUS, DNCI) teams will continue to utilise the LEAN approach in our day to day business. Conclusion Finally, one short phrase that captures the heart of SRP and is fundamental to embracing the LEAN philosophy is from RADM Griggs (Deputy Head of Strategic Reform & Governance) who stated "We can IF... not we can't because" . Implementing SRP within Defence is about everyone adopting the philosophy of driving innovation, being cost conscious and being accountable. Achieving this would result in a very bright future for the Able Seaman and Midshipman joining the Navy of today and in the near future. With the new capabilities and equipment that are heading the Navy's way in one to two posting cycles (AWD, LHD etc) we are set for an exciting and challenging time ahead and we must all make our contribution by embracing SRP/ LEAN/NGN to ensure that we can achieve the reinvestment targets and our future Force. MINEHUNTER MCDSPO SRP SUMMARY -- FINAL