Tuesday, April 25, 2006

Army efficiency explained in LSS 101

By Beth E. Musselman
Army Materiel Command

Lean Six Sigma is the new buzz phrase in the Army. You probably hear it referenced every day in meetings, briefings and general conversation. But do you know what LSS is? Do you know the principles and concepts behind it? Do you know how it is changing the Army? Do you know how it will affect you in the near future?

Although LSS is new to the Army, the philosophies behind it have been around for some time. To understand the evolving concept of LSS, it’s best to know how it began.


Lean
The origins of the Lean philosophy are usually traced back to Toyota in the 1950s. However, arguments can be made that other individuals, including Henry Ford, played significant roles in its development. In its simplest form, Lean aims to identify and eliminate waste in order to increase speed and flow. To ‘lean’ a process is to identify and layout each step required from start to finish, identify the critical steps, and deleting those not required or nonessential.

Although it is an improvement tool, Lean is not without its problems. Cause and effect analysis is imperative in determining what steps are essential in producing the best product and what steps produce a substandard product.

In its pure form, Lean does not use cause and effect analysis as needed; rather it is more concentrated on speed, flow and elimination of waste.


Six Sigma
Its roots in the civilian world, most experts agree that the Six Sigma concept began at Motorola in the 1970s as an approach to improve quality and effectiveness through statistical control. Six Sigma can be defined as precision followed by accuracy, leading to data-driven decisions.

In layman terms, Six Sigma is designed to identify and eliminate variance (making the system more precise), moving it closer to its target (making the system more accurate), and then basing future decisions on the resulting data (data-driven decisions). In its mathematical terms, Six Sigma is achieved when a process produces less than 3.4 defects per million opportunities. Six Sigma is the highest level of Sigma. However, Six Sigma pure also has its downside. Six Sigma continues to make a process more precise and more accurate until it is close to perfection. Since decisions are data driven rather than speed driven, time is often not factored in and therefore lost.


Lean Six Sigma
According to Rod Tozzi, HQAMC Lean Six Sigma senior master black belt, the first signs of a merger between Lean and Six Sigma were in the mid 1990s when several books combined the two philosophies; although, the joined concepts were not yet referred to as Lean Six Sigma.

Today, most major corporations utilize LSS rather than the individual philosophies. As a hybrid, LSS is able to go a step further than the preceding philosophies could. Unlike Lean or Six Sigma, LSS accepts a measure of risk and asks how to mitigate that risk. Through analysis of the process, LSS is able to track every step of the process and determine when and where it goes askew before it is complete and results in an unacceptable product.

“One of the key tenants of Lean Six Sigma is to reinforce success and abandon failure,” Tozzi said. According to Tozzi, accepting that measured risk of failure allows losses to be cut and resources moved to a more efficient use.

Another benefit of LSS is the ability to determine the appropriate balance between quality and cost. For example, the high cost associated with high quality in aircraft maintenance is necessary. Airlines recognize the important of precision and accuracy in this process and spend the required time and money. On the other hand, airline companies do not spend the time and money to guarantee that same level of precision in their baggage handling process. It would be a waste of resources to perfect the baggage handling process to such a precise target.


Lean Six Sigma and the Army
Six Sigma first made its Army debut with Army Materiel Command. Then commanding general, Gen. Johnny Wilson sent the first HQAMC team to Six Sigma training in 1998. Lean was officially stood up in 2002 by then AMC commanding general, Gen. Paul Kern in response to the need to better support our warfighters serving in the Global War on Terrorism. Kern subsequently directed a transition to LSS in late 2003. LSS allows AMC to increase the number of vehicles and systems repaired, improve delivery times, and reduce repair cycles - while decreasing costs. Now in its third year of full implementation, LSS achieved $110 million in savings in 2005.

“We are turning things around faster for the warfighter,” said Gen. Benjamin Griffin, AMC commanding general. “This is showing significant savings and improvement wherever it has been implemented.”

LSS can best be seen in AMC’s depots, arsenals, and ammunition plants. The concept has provided for significant reductions in wasted time and funds.

Corpus Christi Army Depot, Texas, used LSS to reevaluate the T700 engine, used in the Blackhawk helicopter, product line. Once implemented, LSS reduced the overhaul cycle time from over 300 hours to a mere 81 hours, reduced production time from 261 days to 100, and increased efficiency by 83 percent. But perhaps most impressive was the reduction in time between replacement, from 300 hours to over 1400 - tripling the lifespan of the T700 engine.

Anniston Army Depot, Ala., utilized LSS to reduce repair cycle times in the M992 Field Artillery Ammunition Supply Vehicle, M88 Recovery Vehicle, and Abrams Tank by 20 percent, 37 percent and 10 percent respectively. In addition, they increased the production capacity of the M-2 .50-Caliber Machine Gun from 50 to 1,000 per month. In 2005, these efforts saved over $7.6 million for their customers.

At Pine Bluff Arsenal, Ark., employees working on the M45 CB Mask Program had an unorganized work environment and were producing more defects than desired. By applying LSS techniques, PBA was able to reduce lead time from 30 hours per mask to 30 minutes, a 98 percent improvement. Quality also improved by an impressive 90 percent. These advances lead to a 25 percent increase in production, 100 units per day are now being produced versus the 80 before LSS.

In July 2005, Gen. Peter Schoomaker, U.S. Army chief of staff, sent a letter to each Army command requesting an assessment be made of processes that would benefit from business transformation. More than 230 processes were nominated.

In March, Secretary of the Army Francis J. Harvey issued a deployment order requiring LSS be implemented Armywide. LSS business transformation principles are expected to free up resources for the operational Army and ensure quicker delivery times to Soldiers in the field.

At a Pentagon press briefing Harvey said, “It’s essentially to take the work out of a process and to apply it both to a factory-type operation or repair, and also to a headquarters operation, like the Department of Army.”

Once again, AMC is on the forefront of LSS implementation at the headquarters level:
AMC’s Research, Development and Engineering Command, Md., applied LSS to identify the root cause of a high level of material waste during the production of the M734A1 multi-option fuse used in mortars. RDECOM identified the problem resulting in $50,000 per month in savings, while reducing the risk of potential systems failure in the field.

The U.S. Army Security Assistance Command, Va., has shown LSS is not just for manufacturing. Since 2004, USASAC has used LSS to improve the processes involved in foreign military sales. The results reduced lead times by 25 percent, improved the quality of the processes, and cut administration costs by $3.2 million.


Lean Six Sigma and You
With the LSS philosophy spreading throughout the Army, it is sure to become the standard. With that in mind, here’s how one can be on the forefront of Army transformation:


Attend an LSS familiarization course
This three- to four-hour class offers newcomers the basics of LSS. Teaching methods and principles, the familiarization course is recommended for everyone.


Become certified
Processes and procedures altered through LSS were done so through certification projects. Personnel interested in making a change are encouraged to become LSS certified. Currently, LSS training and certification is being held at the headquarters levels, although that is likely to change as it spreads through the Army, says George Terrell, HQAMC master black belt candidate.


According to Terrell, LSS has three levels of certification:

The first level is green belt certification. This one week training course is an in-depth familiarization with LSS tools and methods. It goes into more detail than the familiarization course, but doesn’t require the statistical knowledge of the more advanced certifications. Master black belts instruct the course.

Once green belt certified, students may choose to advance to the black belt course. Requiring approximately six weeks of commitment, this program of instruction is much more intensive. Students work with their supervisor to select a process that can be more efficient, and develop recommendations based on the application of LSS tools and techniques. These projects result in the impressive improvements and cost savings attributed to the LSS program. HQAMC currently employs six black belts.

At this point, students have dedicated between five and eight months to training and are now ready to move on to the highest level of certification, master black belt. As a master black belt candidate, trainees are required to mentor at least two black belt students as they are working on their projects. The main role of a master black belt is to train, educate, mentor others in the program, and deploy LSS throughout the organization.

This exclusive level of expertise will require at least one more year of training and teaching and includes courses in ethics, creative problem solving, deployment planning and instructor certification. To complete the program, master black belt candidates must instruct green and black belt courses.

At this time, Tozzi is the only HQAMC master black belt, and four candidates are in training. Throughout AMC subordinate commands, seven students are currently pursuing their certification.

“Headquarters AMC has trained almost 200 people since it began its green belt, black belt, and master black belt programs in Lean Six Sigma in November 2004,” said Ron Davis, AMC deputy chief of staff for Industrial Operations.

According to Terrell, LSS certification is an invaluable tool. “If you become certified, even at the green belt level, you possess tools and can apply techniques that no one else has.”

With the implementation of Lean Six Sigma, the way the Army does business is soon to change. LSS not only provides monetary savings and waste reduction, most importantly it provides Soldiers a better product quicker. For further information about training opportunities near you, contact your local Lean Six Sigma office or visit www.amc.army.mil/lean.