Defense Acquisition University Lean Aerospace Initiative LAI Education

Defense Acquisition University Lean Aerospace Initiative (LAI) Education Network COL William A. Guinn Commander, Letterkenny Army Depot 16 October 2003 16 Oct 03 UNCLASSIFIED 1

Where We Are … 300 miles 200 miles 65 miles south of Harrisburg, PA International Airport 100 miles Vicinity Chambersburg, PA 4 miles off I-81 120 miles north of Ft Belvoir, VA 16 Oct 03 UNCLASSIFIED 2

Our Facilities … Bldg. 370 Bldg. 320 296 K sq. ft. 66 K sq. ft. Bldg. 350 318 K sq. ft. 17, 950 Acres Track Missile System Test Site Secured Site 16 Oct 03 798 K sq. ft. Industrial Shop Space Test Storage/Staging Areas UNCLASSIFIED 3

Letterkenny… a Model Depot Wide Quality Certification Pursuing Certification for ISO 9001 -2000 & ISO 14000 Public/Private partnerships Army Recapitalization 16 Oct 03 UNCLASSIFIED 4

Who We Are … On Board Strength LEAD = 1092 Contractors = 117 Average Years of Service 22. 5 Average Age 49 16 Oct 03 UNCLASSIFIED 5

Where We Are At … Supporting Logistics Power Projection AFSC Korea AFSC Ft. Bliss LEAD AFSC Germany AMC Field Support Centers (AFSC) provide Capability Forward 16 Oct 03 UNCLASSIFIED 6

What We Do … Customers Aviation & Missile Command Special Operations Command PATRIOT RECAP Hellfire SECONDARY ITEM REPAIR Army SF ATACMs HAWK GMV RESET Navy DEVGRP TOW Navy WARCOM Army Ranger Soldier Biological & Chemical Command Avenger MLRS Tank-automotive & Armaments Command BIDS M 31 A 1 Containerized Chapel Force Provider JPBDS Trailer MKT 16 Oct 03 UNCLASSIFIED 7

Lean Is … Transforming The Depot Customer Focused, Eliminating Waste, Adding Value and Giving Back to the Customer 16 Oct 03 UNCLASSIFIED 8

LEAD Lean Methodology ü Overcome Inertia ü Direct Command Involvement ü Select & Empower Change Agent ü Obtain Results-Oriented Lean Consultant ü Plan to Lean in all areas ü ü Maintenance, Support and Administrative Educate Workforce ü ü ü Core Team w/M&S Training Workforce Lean 101 Learn By Doing ü Execute for Success ü Key Metrics: ü Productivity & Safety ü Quality ü On-time Delivery ü Flexible Event Schedules 16 Oct 03 UNCLASSIFIED just do it!!! 9

Lean Progress Union on Board • 69 Lean Events completed. • 5 Events In-process, 89 planned thru Aug 04. • Just started ‘walking’. Cost Savings for FY 04 – FY 09 Estimated at $25. 3 million. 348 employees (32%) have engaged in Lean events. Approximately 43, 149 square foot of interior and 41, 963 square foot of exterior space has been identified for new business. Letterkenny Army Depot Chambersburg, PA 17201 Pay to PATRIOT LTPO The sum of one million two hundred thousand dollars For: LEAN Savings 16 Oct 03 Date 1 October 2003 $1, 200, 000 COL William A. Guinn Commander, Letterkenny Army Depot UNCLASSIFIED 10

Internal Value … SUPPLY AND TRANSPORTATION While Transportation Mission for FY 03 increased 63. 5% over FY 02 with a Jan-Mar 03 surge of 99. 5% over Oct-Dec 02 … … Backlog for Receiving … ed LEAN Process time reduced thru Lean efforts and new technology. 16 Oct 03 UNCLASSIFIED 11

Customer Value … Operation Iraqi Freedom Original Turn Around Time Reduced from 10 weeks to 3 weeks. Further reduced to 8. 8 days during surge. 24 vehicles per week during surge FLOOR SPACE 1500 hours under cost 75, 000 sq feet reduced to 48, 000 sq feet GMVs - Nov 02 to present 233 - Special Forces 72 – Rangers 16 – East Coast Seals 10 – West Coast Seals 72 mod kits – Special Forces 16 Oct 03 UNCLASSIFIED 12

Lean At Work … Operation Iraqi Freedom GMV Production Video Clip 16 Oct 03 UNCLASSIFIED 13

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Questions … 16 Oct 03 UNCLASSIFIED 15