Continuous Process Improvement (CPI) Program Update Colonel Ric Sherman, United States Army Office of the Assistant Deputy Under Secretary of Defense for Materiel Readiness and Maintenance Policy JTEG/CTMA Process Improvement Workshop

2 Agenda CPI background and DoD’s approach Update on current CPI activities –DoD and OSD AT&L Industrial and transactional accomplishments CPI leverage points for DoD Indicators that CPI is becoming “a way of life” in DoD

3 CPI in DoD Broad-based, structured CPI implementation method Focus CPI implementation w/in a structure of goals aligned to war fighter-driven, outcome based metrics Emphasis on the management and integration of CPI projects Determine how well projects and organizations are progressing with CPI initiatives, training and certification

4 DoD’s CPI Approach Key resource to design/manage CPI efforts Standardizes terminology and leverages best practices Provides DoD CPI Deployment Cycle Endorses actions to facilitate DoD CPI Addresses full spectrum of DoD functions Focuses upon CPI expert certification, guidance documentation, and forums to share best practices

5 DoD-Wide CPI: linked to the Warfighter and applicable to all we do “The Secretary and I expect that every DoD organization is focused every day on improving the effectiveness of our support to the Warfighter” “CPI has proven to be an important tool for improving the operating effectiveness of the DoD, not only within logistics and acquisition activities, but also across the full range of operational, administrative Science and Technology, and support functions.”

6 Value Streams and the DoD Enterprise

7 OSD/DoD CPI Activity DoD-wide CPI Activity Sponsored DoD CPI Guidebook development (May 2006) Established DoD-wide CPI Senior Steering Committee (since Aug 06) Chartered to provide enabling criteria for DoD-wide CPI deployment in three specific areas CPI SSC instituting:  Department-wide CPI education, certification, and training standards (complete)  Department-wide CPI Knowledge Sharing website (complete)  Formal Department-wide CPI policy (in coordination) MR&MP focal point for activity and Military Service coordination (training resources, CPI guidance, and policy coordination) DEPSECDEF established CPI/LSS PMO April 2007 Way Forward Expand activity of CPI SSC to address DSD guidance Developing organizational structure (OSD L&MR, BTA, WHS) Utilize DBSMC for resource needs Take CPI progress to “next level”

8 AT&L CPI Activity Deployment Team for organization-wide CPI rollout (Feb 07 start) Memo based on DoD CPI Guidebook and linked to AT&L Strategic Plan Operate and manage CPI Leadership Deployment Team (Mar 07) Establishing required training, leadership, project selection infrastructure Implementing AT&L cross-cutting projects for CPI implementation MBB hires underway to provide senior leader guidance Over 20 AT&L Green Belts trained (Mar 07) – projects underway for certification 18 AT&L Champions trained (Mar 07) – sponsor and support CPI projects Several hundred AT&L personnel completed DAU CPI overview training Way Forward Continue to develop CPI infrastructure and support project outcomes Develop CPI Deployment Guide for use by other OSD organizations

9 Human Capital Competitive sourcing Financial management Expanded e-Government Budget & Performance Integration Transform our Military Forces Implement QDR National Security Strategy 1.High Performing, Agile, & Ethical Workforce 2.Strategic & Tactical Acquisition Excellence 3.Focused Technology to Meet Warfighting Needs 4.Cost-effective Joint-Logistics Support for the Warfighter 5.Reliable & Cost-effective Industrial Capabilities Sufficient to Meet Strategic Objectives 6.Improved Governance & Decision Processes 7.Capable, Efficient & Cost-Effective Installations The President’s Management Agenda CPI is a strategic goal for AT&L AT&L Goals Goal 6.4: Continuous process improvement (CPI), using techniques such as Lean Six- Sigma. Success: We have applied continuous process improvement to major high impact core AT&L value streams in the S&T, Acquisition, Logistics, and Installations areas, at a minimum.

10 CPI: significant outcomes in industrial and transactional applications

11 CPI leverage points for the DoD 1.Value Stream Orientation 2.Customer Focus 3.Outcomes 4.Project management – go slow to go fast, cross-cutting criteria 5.DMAIC (Define, Measure, Analyze, Improve, Control) approach Customers exist internal and external to your organizations Effective project management required both in selection and implementation 4

12 Indicators that CPI is becoming “a way of life” in DoD We have a common understanding of success – and that is reinforced by a true culture change Every meeting we conduct naturally has “CPI” on the agenda We share information (about our successes as well as our failures) so we maximize outcomes to our customers and don’t reinvent the wheel