Six Sigma Process Improvement in Naval Aviation Production - Research Proposal Example

Six Sigma” process improvement in Naval Aviation Production David Garza david.garza1@me.navy.mil October 31, 2011 Table of Contents pages 1.0 Introduction Background……………………………………………………………...3 1.1 Rationale for the topic……………………………………………………………….3 1.2 How the program fits into the program of study…………………………………… 4 2.0 Literature search……………………………………………………………………….5 2.1 Key source of information and approach…………………………………………....5 3.0 Research questions…………………………………………………………………….6 4.0 Research Methodology………………………………………………………………..7 4.1 Research design…………………………………………………………………......7 4.2 Expected Outcomes…………………………………………………………………8 5.0 References……………………………………………………………………………..9 Introduction Since the beginning of recession in 2008, the Department of Defence (DOD) has reduced its budget at a rate of 30 percent annually, a reduction that has impacted Naval Aviation Production Managers and the war-fighter at the front lines (John & Fargher, 2006). These reduced budgets have forced the Navy to increase life extensions on equipment and find innovative solutions that are both cost effective and flexible. To counteract budget cuts Naval Aviation Enterprise must economically manage its maintenance production processes without degrading mission operational readiness and costs. The Secretary of the Navy in 2009, established a Continuous Process Improvement policy that includes lean Six Sigma to foster improvement in meeting organizational goals and objectives. These methodologies provide the foundation to align, integrate, and streamline processes required to become leaner and more efficient, and embrace maintenance concepts. Enhancing war fighting capabilities is accomplished though improvements to business production processes that sustain capability. Rationale for the topic The rational for selecting this topic is to focus on process improvement in Naval Aviation Maintenance Production by reducing repair turnaround times of selected work centers through the application of Six Sigma and Theory of Constraints (John & Fargher, 2006). In reducing turnaround repair times, these initiatives can provide benefits for improving material readiness, stabilize repair time variability, and increase repair capacity to a market demand pull process. The project’s main objective is to drive reliability up to optimum levels and lower cost of readiness. This project could be considered the framework of significant benefits in sustaining standards, meeting regulatory requirements and practices that embrace both ISO 4000 and 9000 quality management principles. In identifying and correcting inefficiency in processes that affect the ability of the work centers to reliably satisfy fleet requirements can even improve morale amongst military and federal civilian employees and lower labour costs. How the topic fits into my program of study Just like business administration studies which is my program of study, this project involves planning, developing sustainable goals, and innovation to achieve profitability and profit growth. Successful top managers in firms all have important roles that aim at improving their company’s operations through competitive advantages. One of the most important things to have in place is a continuous process improvement system to ensure operations maintain forward momentum. Quality is another process all companies strive to achieve by eliminating defects and errors in order to increase profitability. Some of the tools a business manager can use or implement toward improving quality include Six Sigma Methodologies to identify processes and source of defects to improve overall quality that will decrease costs (John & Fargher, 2006). Furthermore, some of the functional steps implemented to increase efficiency include: material management processes that minimize inventory holdings through just in time inventory system and marketing strategies that build customer loyalty. This project and its research will build from its current process by turning new imaginative ideas into reality. In today’s competitive business market, managers are continuously generating solutions to problems in the forever changing business market. Innovation and clarity is a crucial part in the creativity equation. Organizations are constantly confronted with a variety if unexpected problems and opportunities, of which appropriate responses are not immediately obvious. Furthermore, since markets change rapidly, responses to today’s problems may need to be modified or may be considered irrelevant to tomorrow’s challenges. In contrast, under conditions of uncertainty organizations need to become flexible while stimulating for new ideas and processes to increase efficiency. Literature Search The literature search conducted on this topic first began in reviewing Navy production policies and federal regulations that govern naval aviation maintenance production in accordance with maintenance capabilities, Title 10, United States Code. The Naval Aviation Maintenance Program (NAMP) addresses maintenance policies procedures and responsibilities at all levels of naval aviation maintenance (John & Fargher, 2006). Its main objective is to achieve and continually improve aviation material readiness and safety standards. The methodology behind the Naval Aviation Maintenance Program is performance improvement. Performance improvement is an all-hands effort which focuses on service and support of our customers. Key source of information and approach A key source that will be utilized while conducting research is the Six Sigma and Theory of Constraints; this is the main source toward continuous process improvement and a tool in achieving and sustaining cost-wise readiness. Six Sigma and Theory of Constraints provides tools to achieve cost wise readiness by removing and managing constraints, removing waste, and reducing variability in the process. Six Sigma and Theory of Constraints strategies work together, to improve performance by gathering using data driven structured methodologies (John & Fargher, 2006). Hence, time domain buffer reports were screened as a means of tracking movement of work in progress within assigned turnaround times in each work center. Also, recognize that there is a correlation between the number of product defect, wasted operating costs, and the level of customer satisfaction. In short term, Six Sigma utilizes a statistical unit of measurement to measure the capability of a process, achieve performance and improve service to customers with less investment and lower operating costs. In contrast, with other sources of naval aviation this projects perspective is to improve the process capability by eliminating the root causes, and control the new process to sustain the improvements. Research Questions Do all work center turnaround time for maintenance and repair reliably satisfy fleet requirements? Are shop layouts standardized? In finding the answers to these questions an integrated Six Sigma structure model must be established that includes measured, analyzed, improved and control processes. Value stream mapping is a method of creating a snap shot of all the processes that occur in the process, from the time the part is delivered for repair by the customer, to the time the customer receives the part. The goal is to identify both value added and non-value adding processes. In identifying component repair turnaround times are within the established timeline, document current stage “AS-IS” process times. If waste is identified or a constraint, “AS-IS” can be changed in the value stream mapping process in the “TO-BE” category. All reduction of repair turnaround times is associated with one of the four areas: set-up time, in process time, queue time and wait time (John & Fargher, 2006). Two of largest contributors of turnaround repair time is queue time and wait time. Queue is defined as time that parts spend in line waiting for a resource while the resource is on something else. Wait is defined as the time that part waits for another part or requirement so they can be assembled. Once the current state mapping is created, it becomes the baseline for improvement and for future state mapping. Research Methodology Research design The case study will be the most appropriate to be used in this study. This is because the study will involve direct interaction with the activities and operations taking place in the Naval Aviation Production units in order to study the timelines taken during the production processes in these units. The specific methodologies used attain the required results to improving repair turnaround times are Six Sigma and Theory of Constraints. Turnaround time reduction when applied correctly across the work centers has a huge impact in its ability to improve service to customers with lower operating costs. Other benefits associated are to increase throughput rate utilizing same resourcing level, and operational systems that provide more of what customers are looking for. All the above issues can be studied directly through interaction with the production managers and other relevant personnel in the production units. Expected outcomes Once research sampling was conducted it was expected that through metrics repair turnaround times could not be met as per customers requirements and shop layouts were not standardized. Through value steam mapping it was discovered that supervisors are wasting valuable time walking great distances from the work center to computers in closing out the required paper work. Additionally, computers are inefficiently located making it a constraint to workers. The other expected outcome of this project is that wasted travel time would be minimized to improve repair turnaround times throughput on each effected work center. Provide a more centralized location of computers for both military and civilian personnel. Reduce the number of wasted total man-hours in savings of labor rates. Even improve overall moral of Sailors working in the shop floor. In conclusion, the thing that will make this project a major success besides maximizing efficiency is the actual total money saved in future state of lost man-hours from the inconveniences of traveling great distance to close out the required paper work. The project success is in alignment with meeting the Navy’s Aviation Production goals and objectives in order to become leaner and more efficient force. References John, S. & Fargher, W. 2006. Managing process improvement at the cherry point naval aviation depot. National Productivity Review Volume 11, Issue 4, pages 533–547. Read More