Continuous process improvement within DoD

Defense AT&L, July-August, 2007 by David Pearson

Much of what we do within the Department of Defense is guided by process. We have an acquisition process for developing and acquiring our defense systems, processes for overhauling equipment, processes for submitting travel claims, and so on. Consequently, the effectiveness, quality, and efficiency of our work is very much driven by the processes we use to do our jobs. It is being increasingly recognized in both industry and government that organizations that commit to the continuous improvement of their processes enjoy higher levels of organizational performance.

Within DoD, there have been several disparate initiatives in continuous process improvement or CPI. The Naval Air Systems Command's AIRSpeed program and the Air Force's Smart OPS 21 are just two examples. In our repair depots, there are dozens of examples of how the application of CPI techniques has translated into significant productivity gains, lower costs, and reduced cycle times. DoD is now adopting these best practices and absorbing the lessons learned from these isolated pockets of CPI success. The result is a strategic approach to developing a Department-wide culture of continuous improvement in the areas of reliability, process cycle time reductions, costs, quality, and productivity. In May of 2006, in support of this new initiative, DoD published the Continuous Process Improvement Transformation Guidebook. Significantly, in the guidebook's cover letter, Deputy Secretary of Defense Gordon England writes, "DoD's policy on the capture of benefits from improvement efforts is that cost savings and expense reductions that result from improvements in overall operating effectiveness can be retained by the organizations that generate them."

Defining CPI

Continuous process improvement provides methods, tools, and philosophies that can be used to improve the way we work. It is applied on a never-ending basis, resulting in greater efficiency end effectiveness. CPI, as applied in DoD, is based on three complementary but distinct viewpoints: Lean, Six Sigma, and the Theory of Constraints:

* Lean: Key elements of Lean as applied in CPI are customer-defined value, reduction in non-value-added activities, and the pursuit of perfection.

* Six Sigma: Uses a series of tools to identify the sources of variability in our processes, allowing us to focus our improvement efforts.

* Theory of Constraints: TOC recognizes that there are constraints that organizations must overcome in order to achieve their goals. It employs a five-step methodology to continuously improve processes.

The CPI Deployment Cycle: Planning

The CPI Transformation Guidebook introduces a CPI deployment cycle (illustrated on the next page) outlining how CPI principles will be disseminated throughout DoD. As a necessary prerequisite, the Guidebook first defines our customer as the warfighter and his or her readiness as the primary goal of the initiative. Like many models, the CPI deployment model begins with the development of CPI mission and vision statements and is complemented by a strategic plan on how to make the vision a reality. Alignment with DoD strategic planning guidance is desired.

Borrowing a key tool from the Lean philosophy, the second step of the deployment cycle calls for the development of a value stream map and conducting the associated analysis. A value stream map captures all the actions currently required to deliver a product or service to the customer; and only through using a value stream map to first document how we currently do our jobs, can we identify those processes or activities that add no value to our customer.

The success of any initiative is dependent upon strong leadership. The third step of CPI deployment--"develop structure/behavior"--creates an organizational structure and training certification program to successfully institutionalize CPI within an organization. Led by a CPI champion and guided by a CPI steering committee, a CPI support team provides CPI training and facilitates the management of CPI initiatives. At the working group level, ownership of specific processes is assigned and the CPI tools are applied to achieve process improvement goals. The hierarchy is completed with the establishment of CPI peer groups, which provide for mutual support and the sharing of CPI information across the organization, and seek ways to smartly optimize results across many processes.

The fourth step in CPI deployment is the alignment and deployment of goals. Goals established for an organization must support and be consistent with the goals of its higher level commands. There should be a clear link between the goals of a major command and those of its reporting sub-units. These goals need to be quantified through thoughtfully developed metrics. These metrics will guide behavior on a daily basis as an organization pursues its mission. The CPI Transformation Guidebook calls for a direct, identifiable, causal relationship between metrics and one or more organizational goals.

The CPI Deployment Cycle: Implementation