United States Naval Facilities Engineering Command (several bases ranging from 5,000 to 18,000 personnel)
One year contract designed to:
- Implement methods and integrated tools of lean-Six Sigma to create a culture of continual process improvement that delivers value to the supported commands
- Identify waste in a wide range of business, engineering, public works and environmental processes and eliminate non-value added steps
- Achieve consistent implementation across the organization
- Energize the workforce and inspire greater efficiency
- Optimize return on investment
TSD provided lean-Six Sigma Continuous Improvement Plan program management and data analysis support, to assist the client and transfer expertise in developing, implementing, and sustaining their Rapid Improvement Events (RIEs) using the business strategies of lean-Six Sigma. Also, TSD provided similar support for Value Stream Analysis Events and Executive Planning Sessions.
TSD’s efforts, across three bases, included two Executive Planning Sessions and ten RIEs. Each RIE targeted specific value streams in areas such as: preventive maintenance, billing, material handling, communications, environmental, and facilities and asset management. The RIE process began with lean overview training designed to expose large numbers of base personnel to lean concepts, and five persons received intensive “Green Belt” training enabling the client to continue the change process after TSD was no longer on site.
This event established a documented standard process for the timely submission of utility bills received from the host base. Existing processing delays resulted in multiple shut-off notices received by the Command, sometimes leading to power shutdowns at critical Department of Defense facilities. The RIE’s standardized billing process brought the Command into compliance with federal utility data reporting requirements and, through more effective use of resources, eliminated late fees which garnered savings of approximately $35,000 per year.
This event improved information flow in communication processes between client and its base customer. Existing inefficiencies in processing customer information resulted in unacceptable delays for client services rendered in base facilities. The customer was invited into the RIE and its participation provided new insight into the process. The results included reduced cycle times for work requests, receipt of essential customer input before final review of the request, and insertion of customer feedback loops into Future State process. Savings generated from eliminating rework was approximately $5,000 per year.
Events improved material handling processes in support of client’s largest customer on base – the Army. Escalating material handling costs jeopardized client-customer relationship. A two-pronged approach was taken. As in Base 2, the customer, as a major stakeholder, was brought into the RIE process. Also, TSD and the client developed and introduced a preventive maintenance program for the Army’s material handling equipment. With the purchase of 10 new material handling trucks, much of the savings back to the base were in reduced maintenance costs and removing antiquated equipment from the Navy inventory. Savings associated with this effort were approximately $1,725,000.
Return on Investment
The first-year ROI was 2-to-1. The three-year ROI was projected at 10-to-1.