Industry research report on lean and six sigma implementation in the defence sector preview

INDUSTRY RESEARCH ON LEAN AND SIX
LASSIB
SIGMA IMPLEMENTATION IN THE
SOCIETY
DEFENCE SECTOR

An initiative of

Industry Research Report on Lean and Six Sigma
Implementation in the Defenc e Sector

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Page 2 of 31 Lean and Six Sigma International Board
Version 1.0 http://www.lassib.org/
Release Date: January19th 2013 An initiative of LASSIB Society


TABLE OF CONTENTS

1. Abstract.............................................................................................................................................................................5

2. Present Day Challenges faced by the Defence Sector ..............................................................................................6

2.1. Strategic challenges being faced by Defence Sector ......................................................................................7

2.2. Operational challenges being faced by Defence Sector .................................................................................8

3. Role of Lean Six Sigma to overcome these challenges .............................................................................................9

3.1. Strategic Benefits ............................................................................................................................................... 10

3.2. Operational Benefits.......................................................................................................................................... 11

4. LASSIB’s Proposed Approach to Implement Lean and Six Sigma in Defence Sector ........................................ 13

4.1. Possible areas in Defence Sector for Six Si gma application........................................................................ 14

5. Sample Defenc e organizations implementing Six Sigma ...................................................................................... 15

6. Case studies of Lean Six Sigma implementation in Defence Sector .................................................................... 16

6.1. Naval Aviation Enterprise (NAE) AIRSp eed .................................................................................................... 16

6.2. Hellfire Captive Carry Data Monitoring Project ............................................................................................ 16

6.3. Streamlined acquisition process generates Navy savings........................................................................... 17

6.4. U.S. Navy Unit: Continous Improvement Program ...................................................................................... 17

6.5. Streamlining Vehicle Repair Processes........................................................................................................... 18

6.6. Speed up the process of customizing Humvees for combat ...................................................................... 18

6.7. Military Supply Group: Inventory Transformation....................................................................................... 19

6.8. Speeding the Hiring Process at base in US West .......................................................................................... 19

7. What is Lean?........................................................................................................................................................... 20

7.1. Toyota Production System................................................................................................................................ 20

7.2. MUDA i.e. Lean Waste Elimination ................................................................................................................. 22

8. What is Six Sigma? ....................................................................................................................................................... 24

9. Conclusion ..................................................................................................................................................................... 25

10. Works Cited .............................................................................................................................................................. 26

11. About Lean and Six Sigma International Board ................................................................................................. 28



12. About LASSIB Society .............................................................................................................................................. 28

13. About LASSIB Research Reports ........................................................................................................................... 28

14. Contributors to the Research Report .................................................................................................................. 29

15. How You Can Leverage and Support LASSIB Society ........................................................................................ 30



1. ABSTRACT

Defence forces are critical for any country to safeguard their boundaries and exhibit power in global
political circles as required. However, if not managed well, these forces can eat into significant
government budgets and sometimes also lead to the fall of the government within the country.
Given the increasing nature of security threats, both local and international for any country, the
need for strong, proactive, flexible defence systems is very high.

Lean Six Sigma initiatives has helped many defence organizations align their activities within the
needs and expectations of the various stakeholders they serve.Lean Six Sigma applied to the defence
sector has resulted in both strategic and operational advantages to these organizations.

This research report deals with how we can apply Lean Six Sigma tools and techniques inthe defence
sector. The report highlights the challenges faced by the defence sector organisations and how they
can be addressed by using Lean and Six Sigma. It also includes a number of case studies to showcase
the same.

The report draws upon LASSIB Society’s experience in the defence sector as well as secondary
research sources. Please refer to the list of references at the end of the report for a complete list of
sources used to build this report.



2. PRESENT DAY CHALLENGES FACED BY THE DEFENCE SECTOR



2.1. STRATEGIC CHALLENGES BEING FACED BY DEFENCESECTOR



2.2. OPERATIONAL CHALLENGES BEING FACED BY DEFENCE SECTOR



3. ROLE OF LEAN SIX SIG MA TO OVERCOME T HESE CHAL LENGES



3.1. STRATEGIC BENEFITS



3.2. OPERATIONALBENEFITS



4. LASSIB’S PROPOSED AP PROACH TO IMPLEMENT LEAN AND SIX SIGMA IN
DEFENCE SECTOR



4.1. POSSIBLE AREA S IN DEFENCESECTOR FOR SIX SIGMA APPLICATION



5. SAMPLE DEFENCE ORGANIZATION S IMPLEMENTING SIX S IGMA



6. CASE STUDIES OF LEAN SIX SIGMA IMPLEMENTATION IN DEFENCE SECTOR

6.1. NAV AL AVIATION ENTERPRI SE (NAE) AIRSPEED

6.2. HELLFIRE CAPTIVE CARRY DATA MONITORING PROJECT



6.3. STREAMLINED ACQUISITION PROCESS GENERATES NAVY SAVINGS

6.4. U.S. NAVY UNIT: CONTINOUS IMPROVEMENT PROGRAM



6.5. STREAMLINING VEHICLE REPAIR PROCESSES

6.6. SPEED UP THE PROCESS OF CUSTOMIZING HUMVEES FOR COMBAT



6.7. MILITARY SUPPLY GROUP: INVENTORY TRANSFO RMATION

6.8. SPEEDING THE HIRING PROCESS AT BAS E IN US WEST



7. WHAT IS LEAN?

Lean is a philosophy and a set of management techniques focused on continuous “waste
eliminating” so that every process, task or work action is made “value adding” (the real output
customer pays for) as viewed from customer perspective.

This is achieved through the implementation of the Toyota Production System and Lean Waste
Elimination, also called as Muda.

7.1. TOYOTA PRODUCTION SYSTEM

(Toyota, n.d.)Toyota Production System (TPS) has three desired outcomes:
To provide the customer with the highest quality, at lowest possible cost, in a timely
manner with the shortest possible lead times
To provide members with work satisfaction, job security and fair treatment
It gives the organization flexibility to respond to the market, achieve profit through cost
reduction activities and long-term prosperity
TPS strives for the absolute elimination of waste, overburden and unevenness in all areas to
allow members to work smoothly and efficiently. The foundations of TPS are built on
standardisation to ensure a safe method of operation and a consistent approach to quality.



Just-in-Time:
o Essentially, 'Just-in-Time' manufacturing consists of allowing the entire production
process to be regulated by the natural laws of supply and demand
o Customer demand stimulates the production of a product or delivery of the service.
In turn the production or delivery stimulates production and delivery of the
necessary parts and services, and so on
o The result is that the right products and services are produced and served, and
provided in the exact amount needed - and when and where they are needed
o Under 'Just-in-Time' the ultimate arbiter is always the customer. This is because
activity in the system only occurs in response to customer orders. Production is
'pulled' by the customer rather than being 'pushed' by the needs or capabilities of
the production system itself
Jidoka:
o In Japanese 'Jidoka' simply means automation. At Toyota it means 'automation with
a human touch'
o In 1902 Sakichi Toyoda invented the world's first automatic loom that would stop
automatically if any of the threads snapped. This principal, Jidoka, of designing
equipment and processes to stop and call attention to problems immediately when
they sense a problem is a central concept of TPS
Heijunka:(Wikipedia, 2012)
o Production levelling, also known as production smoothing or – by its Japanese
original term – Heijunka is a technique for reducing the Muda (waste)
o It was vital to the development of production efficiency in the Toyota Production
System and lean manufacturing. The goal is to produce intermediate goods at a
constant rate so that further processing may also be carried out at a constant and
predictable rate.



7.2. MUDA I.E. LEAN WASTE ELIMINATION

Lean “waste elimination” targets the “Eight Wastes” namely:
Motion – Mainly people, document movement, searching etc.
Waiting – For material, information, people, equipment, procedures, approvals and
more
Overproduction – Making more than what is needed by customer / market demand
Over-processing – Doing more to a product / service (but not perceived as value by
customer or business)
Defects – Errors, mistakes, non-
complying products, services,
documents, transactions
Rework and Scrap – Products,
transactions or outputs not meeting
specifications and have to be fixed,
redone, rectified, marked down or
scrapped / unusable
Inventory – Buffer stocks or
resources (Raw, Work in process,
Finished Goods, Bench staff etc.)
Transportation – Movement of
products / items during or after production
Unused Creativity – People knowledge and skills that are not utilized by the company
Lean methods help to remove / reduce waste and contributes to drive agility (velocity) through
smooth work flow across the organization resulting in rapid fulfilment of customer needs in an
optimum manner.
Lean tools and techniques are designed to eliminate waste, and every organization is subject to
generating waste.
Waste in the supply chain

Waste in the technical specifications

Waste in the staff support functions
Waste in the office processing

Waste in the manufacturing processes



Waste equates to dollars wasted, opportunities lost, and loss of human motivation. Each of
these three criteria can have a negative impact on the organization's cost.

Waste equates to dollars wasted
Every organization has an intrinsic proclivity to generate waste in the way they run their
business. Waste is the difference between the way things are now and the way things could be if
everything were perfect - no errors, troubles, problems or complexities.

The Lean Enterprise process can be simplified by first, “find the waste;” secondly, to “get rid of
the waste;” and thirdly, “prevent its return-forever." The Lean process looks everywhere for
waste and reviews every activity to evaluate whether it adds value from the external customer’s
viewpoint.

Waste equates to opportunities lost

Implementing lean tools and techniques will enable your organization, no matter how large or
small, to meet your customers’ demand for a quality product or service, at the time they need it,
and for a price that is competitive.

A Lean system also creates processes that are agile and efficient, and that will help your
company manage its total costs and provide a fair ROI.

Waste equates to loss of human motivation

For Lean management to be successful, everyone in your organization must contribute to the
effort. They must feel a part of the improvement process, and be empowered to commit time
and intellectual resources to the effort.



8. WHATIS SIX SIGMA?

1979:
2000: GE
Motorola 1995: Jack
Saves ~$2
Starts Six Welch
Billion
Sigma Initiates Six
Annually
Initiative Sigma in GE

1986: 1998: Allied 2006: U.S. Army
Motorola Signal Saves Saves ~$19.1
Saves ~$16 ~$1.2 Billion Billion in 5 years
Billion upto 2011
(U.S. Army, 2011)

Six Sigma is a break through and continuous improvement strategy, originally developed by
Motorola in 1986. Six Sigma became well known after Jack Welch made it a central focus of his
business strategy at General Electric in 1995, and today it is widely used in many sectors of industry.

Six Sigma seeks to help prioritize and define organizational strategies that help with:

Strategic competitive advantage over other relevant countries

Better delivery of value to end customers, along with

Cost Reduction

Six Sigma also helps improve the quality of outcomes delive red by identifying and removing the
causes of defects (errors) and minimizing variability in processes.

It uses a set of Management methods, and creates a special infrastructure of people within the
organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma
project carried out within an organization follows a defined sequence of steps and has quantified
outcomes.

In the late-1980's following the success of the initiative, Motorola extended the Six Sigma methods
to its critical business processes, and significantly Six Sigma became a formalized in-house 'branded'
name for an Improvement Methodology, i.e., beyond purely 'defect reduction', in Motorola Inc.

In a little over ten years, Six Sigma quickly became not only a hugely popular methodology used by
many corporations for quality and process improvement.



The tools, techniques and framework of Six Sigma have helped organizations like GE, Honeywell, and
Allied Signal save more than $2 Billion dollars annually. In addition to cost reduction, organizations
have used Six Sigma to define their strategy, identify and meet customer requirements and overall
achieve Organization excellence.

9. CONCLUSION

Lean Six Sigma has been at the forefront of the quality movement in recent years. Defence
organizations deal with a lot of variation and waste in each process, and hence stand to benefit from
application of Lean and Six Sigma principles.

In addition to elimination of waste, these principles have proven very useful toreduce inventory cost,
number of defects,etc. However, in order for this approach to be successful, it needs strong linkages
to strategy, a clear collaborative framework and a combination of tools for addressing the twin goals
of waste and variation reduction.

The benefits for anorganization by application of Lean Six Sigma can be manifold. If good data is
available, Six Sigma may be useful. If not, Lean or other continuous process improvement techniques
may be more appropriate. Either way, the rewards are compelling:

Savings and improvements not only for the Defence sector, but also
Strategic competitive advantage over other relevant countries



10. WORKS CITED

Accenture. (2010). Military Installation: Lean Six Sigma . Retrieved from Accenture:
http://www.accenture.com/us-en/Pages/success-miltary-installation-lean-six-sigma-summary.aspx

Accenture. (2010). US Military: Lean Six Sigma. Retrieved from Accentur e: http:/www.accenture.com/us-
en/Pages/success-us-military-customize-vehicles-six-sigma-summary.aspx

Accenture. (2011). Military Supply Group: Invento ry Transformation. Retrieved from Accentur e:
http://www.accenture.com/us -en/Pages/success-improvement-cumbersome-processes-military-
supply-group.aspx

Accenture. (2011). U.S. Navy Unit: Continuous Imp rovement Program . Retrieved from Accenture:
http://www.accenture.com/us -en/Pages/success-us-navy-continuous-improvement-summary.aspx

Accenture. (2011). United States Army: Streamlining Vehicle Repair Pro cesses. Retrieved from Accentur e:
http://www.accenture.com/us -en/Pages/success-us-army-streamlining-vehicle-repair-process.aspx

American Society for Quality. (2008, JANUARY 30). KNOW LEDGE BASED LEADERSHIP (KBL) OR SIX SIGMA
“LIGHT BUSINESS PROCESS IMPROVEMENT" CASE STUDY SUMMARY. Retrieved from American Society
for Quality: http://rube.asq.org/gov/knowledge-based-leadership.pdf

Army, U. S. (2011). Army Lean Six Sigma. Department of Army.

Cavalier, C. M. (2010). Lean Six Sig ma (LSS)—Theory to Pra ctice in Join t Atta ck Munition Systems. ARMY AL&T.

Defence secto r. (n.d.). Retrieved from Allocate software:
http://www.allocatesoftware.com/sectors/defence/default.aspx

(n.d.). DoD Lean Report to Congressional Defen se Committees. Appendix C. Navy. Retrieved from
http://www.docstoc.com/docs/73155695/Lean-Business-Strategy

Hansen, K. (2009). Streamlined acquisition process gen erates Navy savings. San Diago: FISC Jacksonville
Corporate Communications.

Kanwal, G. (2012, September 24). India’s Milita ry Modernization : Plans and Strategic Underpinnings. Retrieved
from The National bureau of Asian research: http://www.nbr.org/r esearch/activity.aspx?id=275

Maleyeff, J. (2007). Improving Service Delivery in Govern ment with Lean Six Sigma . Retrieved from IBM Center
for the Business of Government: http://www.businessofgovernment.org/report/improving-service-
delivery-government-lean-six-sigma

Marx, M. (2006, March 10). Army-wid e Lean Six Sigma. Retrieved from isixsigma:
http://www.isixsigma.com/i ndustries/military/army-wide-lean-six-sigma/

Marx, M. (2007, June 5). Army Nears $2 Billion in Lean Six Sigma Savings. Retrieved from isixsigma:
http://www.isixsigma.com/industries/military/army-nears-2-billion-lean-six-sigma-savings/

NOVACES. (n.d.). Ho w lean and Six Sigma can improve d efence. Retrieved from NOVACES Advancing process
improvement: http://www.novaces.com/government -defense.php

Paynter, H. (2008). FISC San Diego Black Belts focus on co mmand ch eck-in . San Diego: NAVSUP.



Society, LASSIB. (2010). Lean Six Sig ma White Belt eLearning. Retrieved August 28, 2012, from Lean and Six
Sigma International Board: www.lassib.org

(2012). Sustaining U.S. Global Leadership: Priorities fo r 21st Cen tury Defense. Washington: The White House.

Toyota. (n.d.). Toyota Production System. Retrieved from Toyota:
http://www.toyota.com.au/toyota/company/operations/toyota -production-system

U. S. Mayor Newspaper. (2001, June 11). Best Pra ctice: Fort Wayne Adopts Six Sigma Methodology to Imp rove
City Services. Retrieved from United States Conference of Mayors:
http:www.usmayors.org/usmayornewspaper/documents/06_11_01/ft_wayne_best_practice.asp

U.S. Army. (2011, April 11). Stand To: The Army's Lean Six Sig ma Progra m. Retrieved from U.S. Army:
http://www.army.mil/standto/archive/2011/04/11/

Wikipedia. (2012, November 11). Production leveling. Retrieved from Wikipedia:
http://en.wikipedia.org/wiki/Production_leveling



11. ABOUTLEAN AND SIX SIGMA INTERNATIONAL BO ARD

Lean and Six Sigma International Board, an initiative of LASSIB Society is an organization pioneering
and spreading the knowledge of Lean and Six Sigma to the worldwide community. Our vision is to
create and provide the world's most useful Lean and Six Sigma resource centre and certification
programs, available for the users at the lowest cost.

12. ABOUT LASSIB SOCIETY

LASSIB Society is a not-for-profit organization focussed on ‘Nurturing Next Generation Governance
Globally’.

LASSIB Society’s mission is to create and provide the world's most useful ‘Governance Management’
resource centre and a set of certification programs, available for Individuals, Organizations and
Governments at the lowest cost.

Based on the principles on Gandhian Engineering, we deliver cutting edge industry research and
enhanced value to the community at large.

LASSIB Society organizes multiple events, enabling face-to-face interactions and virtual interactions
among the global community.

13. ABOUT LASSIB RESEARCH REPORTS

In conjunction with the Knowledge Base LASSIB Society publishes, LASSIB Society also releases a host
of research reports through primary and secondary research. These research reports get wide
audience across the industry and are sought after by International Journals as well.
Some of the research reports published by LASSIB Society around the world include:

Framework for Implementation of Lean Tools in Indian MSME Sector
Lean Six Sigma for Graduates and Post Graduates
Return on Investment after Implementation of 5S
Industry Research on Lean and Six Sigma Implementation in Logistics Industry
Industry Research on Lean and Six Sigma Implementation in Electrical and Electronic Industry

These Research Reports are a valuable resource for the industry at large, and serve to provide key
insights that can be used by industry leaders to shape the strategy for their organizations.

Please refer to http://www.lassib.org/ for details of all research reports of LASSIB Society.



14. CONTRIBUTORS TO THE RESEARCH REPORT

Role Full Name Designation Organization
Author Mr. Rana Chetan Singh Intern, M. Tech in Industrial Indian School of Mines
Engineering and Management University
Dhanbad
Reviewer Mr. Ujwal Tripurari Global Evangelist LASSIB Society
Reviewer Ms. Shilpa Roy Kota Secretary LASSIB Society
Reviewer Mr. Pavan Kota Executive President LASSIB Society



15. HOWYOUCAN LEVERAGEAND SUPPORT LASSIB SOCIETY
Although LASSIB is a not for profit organization, it does not believe in raising funds through charitable means,
without providing direct value to the contributor. There are many different ways in which organizations,
institutions, governments and individuals across the globe are working with LASSIB to deliver value to
themselves and their customers. LASSIB is proud to be associated with all of them in developing and delivering
cutting edge solutions that have not only delivered quantified business value to them but also added thought
leadership to the industry at large. Below are some ways i n which you can leverage and support LASSIB.
Leverage LASSIB for Benefits to you Support to LASSIB
your initiatives
Become an Individual Access complete knowledge base including Funds collected through
or Organization training materials, best practices, case studies, membership fees are used to
Member of LASSIB. videos and webinars from LASSIB Society maintain and grow LASSIB
Visit Network, learn and contribute to the fas test knowledge base.
https://lassib.org/inde growing community of specialist, senior
x.php/membershipto leaders from the industry
know mor e about Get latest updates, insights and research from
LASSIB membership the industry delivered to your Inbox
options.
Leverage Training and Get trained from the leading experts from the Training and certification fees
Certification in themes industry who bring together years of charged by LASSIB Society are
of Organization experience and best in class training skills, the lowest in the Industry in
Excellence tools and technologies order to ensure these key
Acquire not only knowledge but skills to components are available
implement the knowledge in real life scenarios within reach to masses. The
Attain internationally respected certifications fees charged helps cover the
thereby adding value to your organization and cost incurred by LASSIB
yourself Society for hiring trainers and
Join the growing panel of Accredited Training issuing certificates
Providers (ATP) and Accredited Test Centr es
(ATC) of LASSIB Society to deliver value within
your organization.
Consult with LASSIB Solve organization problems, create strategy, Consulting fees derived by
experts to deliver deliver customer value through proven tools and LASSIB Society aids LASSIB to
business and customer techniques of Lean and Six Sigma fund research, host events
value and provide free consulting
services to organizations
which cannot afford to pay
yet.
Participate in LASSIB Network, brainstorm, and learn from industry Sponsorship costs and
Events leaders, face to face, over exciting discussions delegate fees assist LASSIB in
conducting these events and
spreading the awareness
within the community.
Participate and Understand the trends in the industry By participating in building
leverage Industry Identify common challenges and best these reports, you provide the
Research practices opportunity to LASSIB to share
Hear from exper ts on future forecasts your knowledge with the r est
of the industry.

Please refer to http://www.lassib.org/ for details on LASSIB or
Send a note to contact@lassib.org to get connected to a LASSIB Associate or
Call +91-9246185187 (India) to speak to a LASSIB Associate directly.


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