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NAVAL AIR DEPOT - jacksonville, Florida

Practice Number 1 - Understand what it is that you are doing (and want to do).
NADEP JAX has done an "AS-IS"/"TO-BE" analysis of its business and has developed a Business Process Model.

The Business Process Model

"Perform Depot Maintenance" is comprised of six processes: "Perform Business Planning", "Manage Depot Finances", "Plan Production", "Manage Resources", "Execute Production", and "Support Operations".

A1 Perform Business Planning

"Perform Business Planning" defines all portions of the Depot Maintenance Business Plan, which expresses the long-range depot maintenance direction and required resources. This activity improves coordination of strategic initiatives, resource plans and capability requirements in the depot and subordinate organizations. These improvements are assured through a proactive approach to strategic forecasting and the establishment of a single point of customer interface.

This process examines numerous aspects of depot operations including quality reports, financial reports, and cost/schedule status reports, etc., to ensure the proper planning of depot maintenance business. As a result, strategic planning report parameters are provided to support the identification of improvement opportunities.

A2 Manage Depot Finances

"Manage Depot Finances" analyzes, reviews, and controls those elements that contribute to the financial status of depot maintenance. This process examines and analyzes various aspects of depot financial administration to ensure the proper management of depot finances and to develop the depot operating budget. The depot operating budget is provided to control activities within the depot, and information related to the budget is provided for use in other depot maintenance activities. Manage Depot Finances is comprised of four sub-activities: "Develop Budget", "Perform Funds Administration", "Manage and Report Revenue and Expenses", and "Collect Financial Data".

A3 Plan Production

This process creates a detailed breakdown of customer-authorized work and develops, maintains, and schedules a single integrated plan for production. Note: Engineering decisions and industrial engineering will be included when the technical authority is vested in depot maintenance. This is an iterative process that: develops high-level feedback and direction for business planning to evaluate potential workloads; develops more detailed plans and schedules to support negotiations for targeted workloads; and manages risks and impacts to plans and schedules that support authorized work. Plan Production is comprised of three sub-activities: "Plan and Manage the Project/Product", "Plan Authorized Jobs", and "Develop Schedules".

A4 Manage Resources

"Manage Resources" ensures that facilities, tools/equipment, skills, and material are provided as efficiently as possible to meet the gross resource requirements and rough cut resource requirements for specific project/product workloads. This process examines and analyzes information on available resources, as well as resource requirements to determine if resources can be provided. The resources provided to support production execution, and information related to these resources is provided for use in other depot maintenance activities. Manage Resources is comprised of four sub-activities: "Manage Personnel Skills", "Manage Facilities", "Manage Tools/Equipment", and "Manage Material".

A5 Execute Production

"Execute Production" applies resources to the repairable item and converts or restores it to serviceable condition in accordance with production direction. This process uses the authorized project agreements (A1), production direction, proposed production and routing schedules from production planning (A3), and resources from resource management (A4), in order to produce a maintained item. The serviceable item is then sent to resource management (A4) to be delivered to the customer. Execute Production is comprised of four sub-activities: "Develop Proposed Operations Packages", "Assign Work", "Execute Operations", and "Manage Production Problem Resolutions".

A6 Support Operations

"Support Operations" provides general support to people, assets, and operations. The focus of this support is on managing quality and performance reporting, various compliance requirements (safety, environmental, etc.), administrative support (personnel, payroll, etc.), and information repository management, and information system infrastructure support.

Practice Number 2 - Automate only those processes that make sense.
NADEP JAX has incorporated the business practices of the American Production & Inventory Control Society (APICS) Manufacturing Resource Planning (MRP II), as implemented by Western Data Systems Compass CONTRACT software and the Project Management Institute (PMI) Project Management Handbook of Knowledge (PMBOK). MRP II was fully implemented in October 2001. These are the major tools in the suite of software used to the depot. Other tools include:

• Interservice Material Accounting and Control System (IMACS)
• Laboratory Information Management System (LIMS)
• Naval Industrial Material Management System (NIMMS)
• Tool Inventory Management Application (TIMA)

Practice Number 3 - Incorporate Earned Value Management info processes and systems.
NADEP JAX has incorporated the business practices of Earned Value Management and has been certified in meeting the 34 assessment criteria of DoD 5000.2-R.

A sub-activity of the Business Process Model I A6 - "Manage Quality and Performance" conducts performance measurements and utilizes Total Quality Management concepts to recommend and implement process improvements and enhance process standards. Conducting performance measurements involves aggregating and evaluating production data and financial reporting information to produce performance reports and Cost Schedule Status Reports in accordance with report parameters, the business plan, and the released master schedule. ISO 9000, a quality management system, was fully implemented on November 16, 2001 for the entire NAVAIRDEPOT.

Managing total quality uses strategic planning report parameters, financial reports, performance reports, current and historical production data, customer information, and the business plan to develop potential process improvement opportunities into recommendations that, upon approval from a higher authority, can be implemented and monitored for effectiveness. These process improvement recommendations are evaluated along with requests for standards development and corporate standards exception requests to decide which ones can be proposed to higher level depot or corporate authority. This would include locally prepared work instructions, inherent labor hours, and/or a unit of engineered data. Technical instructions to govern how a new process standard is accomplished will be developed as well.

Support information and reports, which include the cost schedule status reports, and quality reports, assist in business planning (A1), financial management (A2) and production planning (A3). Support reports include performance reports, which are provided to financial management (A2) and external recipients. Process improvement recommendations and external standards development requests are referred to a higher authority for approval. Process standards get incorporated in local standards, regulations and directives (SRD) and are used in all aspects of the depot's business.

Practice Number 4 - Continue to review, refine and re-engineer the Business Process Model as required.
The depot's customers value quality, and they receive it; but they're also demanding lower costs, shorter cycle times, and a realistic picture of alternatives and risks. The depot must drive cost out of everything it does, and then clearly demonstrate those savings in a way that is meaningful to the customers. The depot has reached a transition point as an organization. The last several years have been spent on downsizing, reorganizing, relocating and redistributing workload. With the new structure in place, the depot can now focus on how the work gets done. This process effort will result in interaction with people across programs, functions, business units, and throughout the acquisition business, customers included. It will be a real eye-opener to all involved, and will result in stronger working relationships with customers and among depot personnel.