By Beth E. Musselman
Army Materiel Command
Lean Six Sigma is the new buzz phrase in the Army. You probably hear it referenced every day in meetings, briefings and general conversation. But do you know what LSS is? Do you know the principles and concepts behind it? Do you know how it is changing the Army? Do you know how it will affect you in the near future?
Although LSS is new to the Army, the philosophies behind it have been around for some time. To understand the evolving concept of LSS, it’s best to know how it began.
Lean
The origins of the Lean philosophy are usually traced back to Toyota in the 1950s. However, arguments can be made that other individuals, including Henry Ford, played significant roles in its development. In its simplest form, Lean aims to identify and eliminate waste in order to increase speed and flow. To ‘lean’ a process is to identify and layout each step required from start to finish, identify the critical steps, and deleting those not required or nonessential.
Although it is an improvement tool, Lean is not without its problems. Cause and effect analysis is imperative in determining what steps are essential in producing the best product and what steps produce a substandard product.
In its pure form, Lean does not use cause and effect analysis as needed; rather it is more concentrated on speed, flow and elimination of waste.
Six Sigma
Its roots in the civilian world, most experts agree that the Six Sigma concept began at Motorola in the 1970s as an approach to improve quality and effectiveness through statistical control. Six Sigma can be defined as precision followed by accuracy, leading to data-driven decisions.
In layman terms, Six Sigma is designed to identify and eliminate variance (making the system more precise), moving it closer to its target (making the system more accurate), and then basing future decisions on the resulting data (data-driven decisions). In its mathematical terms, Six Sigma is achieved when a process produces less than 3.4 defects per million opportunities. Six Sigma is the highest level of Sigma. However, Six Sigma pure also has its downside. Six Sigma continues to make a process more precise and more accurate until it is close to perfection. Since decisions are data driven rather than speed driven, time is often not factored in and therefore lost.
Lean Six Sigma
According to Rod Tozzi, HQAMC Lean Six Sigma senior master black belt, the first signs of a merger between Lean and Six Sigma were in the mid 1990s when several books combined the two philosophies; although, the joined concepts were not yet referred to as Lean Six Sigma.
Today, most major corporations utilize LSS rather than the individual philosophies. As a hybrid, LSS is able to go a step further than the preceding philosophies could. Unlike Lean or Six Sigma, LSS accepts a measure of risk and asks how to mitigate that risk. Through analysis of the process, LSS is able to track every step of the process and determine when and where it goes askew before it is complete and results in an unacceptable product.
“One of the key tenants of Lean Six Sigma is to reinforce success and abandon failure,” Tozzi said. According to Tozzi, accepting that measured risk of failure allows losses to be cut and resources moved to a more efficient use.
Another benefit of LSS is the ability to determine the appropriate balance between quality and cost. For example, the high cost associated with high quality in aircraft maintenance is necessary. Airlines recognize the important of precision and accuracy in this process and spend the required time and money. On the other hand, airline companies do not spend the time and money to guarantee that same level of precision in their baggage handling process. It would be a waste of resources to perfect the baggage handling process to such a precise target.
Lean Six Sigma and the Army
Six Sigma first made its Army debut with Army Materiel Command. Then commanding general, Gen. Johnny Wilson sent the first HQAMC team to Six Sigma training in 1998. Lean was officially stood up in 2002 by then AMC commanding general, Gen. Paul Kern in response to the need to better support our warfighters serving in the Global War on Terrorism. Kern subsequently directed a transition to LSS in late 2003. LSS allows AMC to increase the number of vehicles and systems repaired, improve delivery times, and reduce repair cycles - while decreasing costs. Now in its third year of full implementation, LSS achieved $110 million in savings in 2005.
“We are turning things around faster for the warfighter,” said Gen. Benjamin Griffin, AMC commanding general. “This is showing significant savings and improvement wherever it has been implemented.”
LSS can best be seen in AMC’s depots, arsenals, and ammunition plants. The concept has provided for significant reductions in wasted time and funds.
Corpus Christi Army Depot, Texas, used LSS to reevaluate the T700 engine, used in the Blackhawk helicopter, product line. Once implemented, LSS reduced the overhaul cycle time from over 300 hours to a mere 81 hours, reduced production time from 261 days to 100, and increased efficiency by 83 percent. But perhaps most impressive was the reduction in time between replacement, from 300 hours to over 1400 - tripling the lifespan of the T700 engine.
Anniston Army Depot, Ala., utilized LSS to reduce repair cycle times in the M992 Field Artillery Ammunition Supply Vehicle, M88 Recovery Vehicle, and Abrams Tank by 20 percent, 37 percent and 10 percent respectively. In addition, they increased the production capacity of the M-2 .50-Caliber Machine Gun from 50 to 1,000 per month. In 2005, these efforts saved over $7.6 million for their customers.
At Pine Bluff Arsenal, Ark., employees working on the M45 CB Mask Program had an unorganized work environment and were producing more defects than desired. By applying LSS techniques, PBA was able to reduce lead time from 30 hours per mask to 30 minutes, a 98 percent improvement. Quality also improved by an impressive 90 percent. These advances lead to a 25 percent increase in production, 100 units per day are now being produced versus the 80 before LSS.
In July 2005, Gen. Peter Schoomaker, U.S. Army chief of staff, sent a letter to each Army command requesting an assessment be made of processes that would benefit from business transformation. More than 230 processes were nominated.
In March, Secretary of the Army Francis J. Harvey issued a deployment order requiring LSS be implemented Armywide. LSS business transformation principles are expected to free up resources for the operational Army and ensure quicker delivery times to Soldiers in the field.
At a Pentagon press briefing Harvey said, “It’s essentially to take the work out of a process and to apply it both to a factory-type operation or repair, and also to a headquarters operation, like the Department of Army.”
Once again, AMC is on the forefront of LSS implementation at the headquarters level:
AMC’s Research, Development and Engineering Command, Md., applied LSS to identify the root cause of a high level of material waste during the production of the M734A1 multi-option fuse used in mortars. RDECOM identified the problem resulting in $50,000 per month in savings, while reducing the risk of potential systems failure in the field.
The U.S. Army Security Assistance Command, Va., has shown LSS is not just for manufacturing. Since 2004, USASAC has used LSS to improve the processes involved in foreign military sales. The results reduced lead times by 25 percent, improved the quality of the processes, and cut administration costs by $3.2 million.
Lean Six Sigma and You
With the LSS philosophy spreading throughout the Army, it is sure to become the standard. With that in mind, here’s how one can be on the forefront of Army transformation:
Attend an LSS familiarization course
This three- to four-hour class offers newcomers the basics of LSS. Teaching methods and principles, the familiarization course is recommended for everyone.
Become certified
Processes and procedures altered through LSS were done so through certification projects. Personnel interested in making a change are encouraged to become LSS certified. Currently, LSS training and certification is being held at the headquarters levels, although that is likely to change as it spreads through the Army, says George Terrell, HQAMC master black belt candidate.
According to Terrell, LSS has three levels of certification:
The first level is green belt certification. This one week training course is an in-depth familiarization with LSS tools and methods. It goes into more detail than the familiarization course, but doesn’t require the statistical knowledge of the more advanced certifications. Master black belts instruct the course.
Once green belt certified, students may choose to advance to the black belt course. Requiring approximately six weeks of commitment, this program of instruction is much more intensive. Students work with their supervisor to select a process that can be more efficient, and develop recommendations based on the application of LSS tools and techniques. These projects result in the impressive improvements and cost savings attributed to the LSS program. HQAMC currently employs six black belts.
At this point, students have dedicated between five and eight months to training and are now ready to move on to the highest level of certification, master black belt. As a master black belt candidate, trainees are required to mentor at least two black belt students as they are working on their projects. The main role of a master black belt is to train, educate, mentor others in the program, and deploy LSS throughout the organization.
This exclusive level of expertise will require at least one more year of training and teaching and includes courses in ethics, creative problem solving, deployment planning and instructor certification. To complete the program, master black belt candidates must instruct green and black belt courses.
At this time, Tozzi is the only HQAMC master black belt, and four candidates are in training. Throughout AMC subordinate commands, seven students are currently pursuing their certification.
“Headquarters AMC has trained almost 200 people since it began its green belt, black belt, and master black belt programs in Lean Six Sigma in November 2004,” said Ron Davis, AMC deputy chief of staff for Industrial Operations.
According to Terrell, LSS certification is an invaluable tool. “If you become certified, even at the green belt level, you possess tools and can apply techniques that no one else has.”
With the implementation of Lean Six Sigma, the way the Army does business is soon to change. LSS not only provides monetary savings and waste reduction, most importantly it provides Soldiers a better product quicker. For further information about training opportunities near you, contact your local Lean Six Sigma office or visit www.amc.army.mil/lean.
2006-04-03 12:00:00.0 CDT
Establishing an Effective ERM Strategy
By Charles Brett
Today’s business conditions are driving a new focus on management of all types of records throughout the enterprise. As government mandates require companies to capture and manage increasing amounts of both hardcopy and digital documents, business leaders are tasked to be more proactive than ever about putting Enterprise Records Management (ERM) strategies in place.
Research shows that the markets for both e-mail archiving and ERM applications are expected to grow more than 35 percent annually in response to Sarbanes-Oxley regulations alone. Companies that have not considered the impact this will have on the way they do business should bear in mind that implementing a successful ERM strategy will solve a variety of paper and electronic document management challenges, beyond those posed by government regulations.
As much as organizations would like to eliminate paper, a document strategy that ignores the complementary relationship of paper and digital information will be ineffective. In a study conducted by Xerox Corporation and research firm IDC, fewer than 40 percent of organizations surveyed have digitized their document-dependant business process. As technology and services to manage records mature, the process and strategy for enterprise-level records management requires preparation, planning and an approach that includes integration of both paper and electronic documents into the daily workflow.
Currently, there are no out-of-the-box ERM solutions for handling different types of information. As a result, many companies do not address the simultaneous multi-media nature of documents, and treat electronic documents—Web, e-mail, and fax output from enterprise applications like ERP and CRM—separately from paper. In other instances, organizations focus only on the paper document production process and ignore the need for electronic document integration. To reap the benefits of an ERM system, linking document strategies with investments in ERP, CRM, document management, and other software is vital to bringing structure to unstructured information. The program must include all media defined as a record. A "record" is a legally binding document that if improperly managed may create a major risk or exposure to the organization (i.e., invoices, contracts, customer statements, etc.) This includes paper, electronic records (including e-mail and instant messaging in some cases) and all other media, such as microfilm and backup tapes.
Successful ERM strategies also require the consideration of all aspects of business culture, process and technology. While the technology is essential, it accounts for only about one-third of what is required to implement and maintain a records management program. It is important to remember that records support the way people conduct business and serve customers—not the other way around.
The Challenge of Corporate Governance
The increased interest in corporate governance offers additional obstacles for organizations with large volumes of records. Regulations like Sarbanes-Oxley require companies to be able to provide traceable, auditable proof that corporate records, which contain the supporting documentation for the reported financials, are being managed and maintained accurately. Yet most CIOs and IT managers are focused on other priorities such as cutting costs, growing revenue, increasing customer satisfaction and worker productivity—not on how documents are managed within their organization. However, severe consequences can result if the proper attention is not paid to government regulations. Staying current on regulatory changes and new requirements is crucial to avoiding these penalties.
The growing focus on corporate litigation poses yet another challenge, and is becoming an integral part of corporate records management strategies in order to minimize corporate risk. Amid numerous controls on e-mail management, paper documents still remain a constant challenge for large enterprises. While digital records can be easily indexed and tracked once entered into a system, paper documents require a large amount of physical space, are difficult to index and retrieve, and possess limited chain of custody if the company faces litigation.
For companies facing litigation, the symptoms of losing control over records can be pervasive and expensive. American corporations lose millions of dollars annually due to the spiraling costs of managing multiple litigation vendors and the sheer volume of handling digital documents. Dangers of an ineffective document management process can include a greater risk of court sanctions for missing deadlines and personal exposure to corporate officers and counsel for criminal and civil penalties. Litigation continues to become an ever-more critical element of business.
Companies that actively prepare before litigation commences are much more likely to avoid court sanctions and manage court-imposed deadlines. Equally important, proactive information management such as ERM allows a company to focus on its core business, mitigates risk, and invariably drives down the costs of their overall legal services.
Where to Start
When implementing a records management program, organizers should take a macro view and follow records from creation to final distribution, looking for better management opportunities. The benefit of taking this broad approach is to uncover opportunities for the enterprise that otherwise would remain hidden.
An important part of this broad approach is to consider the large amount of physical space that paper documents require, as well as the difficulty of indexing and retrieving them. Being able to transfer physical documents to digital can cut down on both internal and external storage costs. Many organizations store content much longer than necessary, costing significant dollars and posing potential legal risk. Electronic records control is frequently passed on to the IT department where management of electronic data files is often based on transaction volume and storage requirements. A typical solution for retention of electronic files is to automatically delete email after 60-days or to delete electronic records after a period of inactivity. Both of these solutions circumvent established hard copy records management controls and place the credibility of the records management program at risk. An ERM program complete with a structured plan for approved destruction of records, and archival transfer of records having permanent value, will prevent critical documents from being deleted automatically and will allow companies to ensure that their records are in order.
To accomplish this, an ERM management team should be established to create a strategy that involves objectives from key departments including IT, legal and human resources along with upper management. By not relying solely on IT to organize the ERM effort, the whole organization can ensure its objectives are met and tasks are not duplicated. Engaging subject matter experts from each department along with strategic advisors who understand the applicable technologies and regulations will help build a strong, knowledgeable ERM team.
In order to prevent a gap in information management, organizations should examine legal, business and other sources to identify record-keeping requirements for evidence information and determine where improvement is needed. At this time redundancies should be eliminated by examining existing backup and disaster recovery and storage systems in use and integrating them into the new ERM system. While backup systems are NOT records management systems, and should not be used as such, it is essential to integrate them with the new ERM system.
A Measurable Approach
For the daunting task of gaining control of paper- and electronic-based information, the most efficient solutions use a Lean Six Sigma approach.
A combination of Henry Ford’s Lean Flow manufacturing process of the early 1900’s and Motorola Corp.’s Six Sigma process from the 1980’s, Lean Six Sigma is the application of lean techniques to increase speed and reduce waste and process complexity. The method also seeks to improve quality and focus on the voice of the customer. Lean Six Sigma means doing it right the first time, implementing changes that generate value, while acting quickly and efficiently.
The Lean Six Sigma ideals of improving quality and reducing waste can be attached to virtually any process. Some ERM solution providers like Xerox Global Services employ Lean Six Sigma to help customers obtain vast improvements in how they produce, store and distribute both paper and electronic documents and records. Document-related Lean Six Sigma follows a work process that can benefit from quality and waste reduction.
Best Practices
Topping this list is the need for organizations to initiate an ERM program by implementing an internal assessment, to determine what electronic and paper documents a company is retaining. This assessment should employ methodology such as Lean Six Sigma that uses special information-gathering techniques to capture the very essence of an enterprise’s work processes. The result will provide a clear road map for rest of the ERM process.
Next ERM initiators must prepare the organization for change by explaining to employees what regulations and potential risks the company faces without an ERM system, and train them on their role in the implementation of the process. Too often money is spent on enterprise-wide solutions without considering the impact it will have on employees’ daily work routines. To ensure new standards are deployed most effectively, consider work habits and cultural norms that will be affected and educate employees on how the implementation will integrate with current work processes.
After assessment and awareness phases have been established, attention should be turned to compliance and regulatory issues. Daily work within any organization requires the capture of information that is both structured (forms, invoices) and unstructured (staff notes, e-mail). As these institutions compile the appropriate information for Sarbanes-Oxley, the U.S. Patriot Act, even HIPAA and Basel II, incorporating various document types into the workflow is key to minimizing time and labor costs and achieving ROI. Upon ensuring the ERM plan covers all such compliance concerns, companies should engage their IT departments in order to map out a fully integrated plan throughout the enterprise.
The next step is vendor selection. As the majority of enterprise records content is in both physical and electronic formats, the selection of a single vendor offering integrated solutions is highly recommended. During this phase, it is imperative a company work with its own IT department to ensure optimal performance and compatibility. Even when internal resources are limited, records management software and Web-based document repositories exist to help workers easily and accurately manage documents such as patient records, customer invoices, e-mails and other scanned images as legally-binding records. For instance, organizations have implemented Xerox DocuShare records management to effectively manage organizational records with affordable maintenance and deployment costs.
Once a plan has been outlined, the initial pilot implementation should focus on business areas that are most exposed, subject to immediate compliance mandates, or seeking to minimize risks associated with current ERM practices. Overlap in documentation retention will arise at this step, since much corporate content is created, accessed, managed and reused across many parts of the organization.
The final step on the best practices list involves enterprise-wide implementation, where collaboration between multiple departments within the organization is necessary. Organizations should also address other existing enterprise content applications, such as imaging, document management, ERP, etc. Any revisions to the plan at this point should involve input from the ERM management team.
Since developing a clear road map for records management requires a comprehensive assessment of the organization. Service providers and vendors can serve as a valuable resource in developing a program that complies with all regulatory requirements, meets the organization’s business needs and provides overall accountability.
Ultimately, companies must remember to be flexible. The right ERM system will take shape based upon each company’s specific needs. Whether on-site or hosted, electronic and/or physical storage, the solutions will vary depending on industry requirements and overall business goals. Once the plan has been set in place companies must remember to write, circulate and enforce user policies and procedures in order to gain employee acceptance and buy-in. This may be through an employee manual, handbook, or even advanced online learning and certification programs. E-mail usage guidelines, if not already part of an employee handbook, must also be developed.
Ancillary Benefits and Future Preparedness Once implemented, successful ERM programs can not only make a company compliant with Sarbanes-Oxley and other government regulations, but can help them improve productivity and protect their assess with a comprehensive implementation and strategy for future document management needs.
Implementing an ERM solution has a number of important business benefits. The first being the creation of a knowledge management environment within the enterprise that will capture, preserve and share critical business information throughout the organization. Employees will be able to retrieve records faster, more securely and with greater flexibility regardless of their location, medium or system type. Reliability and authenticity of the records can also be enhanced through access permission.
A permanent record of document decisions and actions will be kept as long as required to support research and program needs. This control will also guarantee that any records that the public has rights or entitlement to will be available for as long as the law requires, and can assist in making sure the public has easy access to any such records.
A reliable method for the preservation of company documents will safeguard the company against accidental or unauthorized disposal, or undocumented alteration of records. Should an organization face an audit or litigation and discovery demands, a successfully implemented ERM program will allow a company to not waste time and resources searching for necessary records and will prevent costly fines associated with the inability to produce court-ordered documents on time.
Return on Investment
Although maintaining compliance and meeting regulations are seen as the cost of doing business, implementing sound records management policies, procedures and technologies at the strategic and infrastructure level can demonstrate a return on investment. Reducing response costs and access, creating a single point of entry for all corporate records, minimizing data and records stored in multiple systems, and overall business process improvements are possible when companies implement a successful ERM program.
Along with return on investment, results such as avoidance of duplication across data stores, reduced response costs, and better integration with broader content and compliance initiatives also offer paybacks when implementing ERM systems and technologies.
Predictable discovery production with consistent results, enhanced data culling, search and review, and better collaboration with internal and outside counsel are additional benefits to be gained for this type of effort if properly coordinated and viewed within a larger records and content scenario.
In summary, the complexity of enterprise records management is only going to increase and gain in necessity in the years to come. Tools and procurement process are maturing, though not necessarily in a straight line. Overall, it is imperative to develop a comprehensive approach to records management that balances the requirements of culture, process and technology.
Xerox Expands Resources to Help Print Providers Develop the Right Business Model, Maximize Profits
BIRMINGHAM, U.K. --(Business Wire)-- April 4, 2006 -- Xerox Corporation (NYSE: XRX) has added two new resources to its business development portfolio designed to help graphic communications professionals find new ways to grow and manage their digital businesses.
"To survive and prosper in today's competitive print marketplace, print providers need to look beyond the technology and focus on the right business model," said Quincy Allen, president, Xerox Production Systems Group. "Xerox's comprehensive business development resources will help customers maximize their digital technology investments and accelerate a path to success."
Putting Lean Six Sigma to Work
Xerox's Digital Readiness Assessment allows Xerox to help customers generate digital applications, drive revenue and prepare to take advantage of opportunities that digital printing offers.
After a series of consultations with the customer, Xerox will analyze 17 critical elements of their business and benchmark the customer's digital business against the world's most successful digital graphic communications companies. A comprehensive report is generated for the company's senior executives detailing the top three recommendations needed for the business to grow and become more profitable.
"There's nothing like this resource in the industry. Xerox is not only providing great technology but also bringing business strategy and planning ideas to the table," said industry analyst Peter Muir, president, Bizucate Inc. "This service will help both digitally-savvy owners, and those new to digital, create a strategic plan on how to make digital printing a vital part of their business. But execution, as in any business strategy, is the key to stay ahead of the competition."
The assessment was one outcome of a Lean Six Sigma project in which Xerox specialists convened to better understand how many pages customers were printing on digital production presses. The assessment itself is based on Lean Six Sigma methodologies, uses Xerox proprietary software and services, and reflects the input of graphic communications industry consultants and customers. Xerox Lean Six Sigma is a disciplined, data-driven method of reducing waste and variation in processes so they consistently deliver products and services at the quality levels, speed and prices that customers value.
According to Muir, this type of service could cost up to $5,000 including the report, consulting and follow-up work, and depending on the customer's business condition, commitment and direction they want the business to take. And Xerox is offering it at no charge during its initial launch.
New Digital Sales Management Tools
Xerox is also sharing its expertise to help print providers hire and train a digital sales force. Built on Xerox's proven sales methods, the Digital Printing Sales Management Guide shows businesses how to educate their sales forces to better understand their customer requirements and be able to capture new digital revenue.
The Digital Printing Sales Management tool provides information and best practices that show graphic communications professionals how to hire, pay and manage a digital sales force. Key strategies of the guide include: planning and training for digital printing; leading a winning digital sales team; measuring and maximizing sales performance; and rewarding the sales force.
Both offerings are part of Xerox's ProfitAccelerator(TM) Digital Business Resources collection, the largest in the industry with 40 tools, programs and services.
Industry Experts at IPEX
During IPEX 2006, Xerox has invited five industry experts to speak in the ProfitAccelerator Theatre in Xerox's booth about how graphic communications professionals can make the most of digital printing.
Speakers and topics are: "Making Money in Digital Print," Roger Gimbel, president, RP Gimbel and Associates; "Creative and Personalized Printing," Chris Jordan, general manager, Jordan and Jordan; "Growing Revenue With Digital as a Complement to Offset," Andy Tribute, managing partner, Attributes Associates; "Adobe Solutions for Creative Professionals," Harry Miller, worldwide business manager, Adobe Systems Inc.; and "Hot Digital Applications," Paul Ratcliffe, general manager, Marketing Stuff.
Availability
The Digital Readiness Assessment will be implemented worldwide by Xerox sales representatives and be translated into multiple languages by the end of the year. The Digital Printing Sales Management Guide is available worldwide through Xerox sales representatives.
Customer Contacts:
For more information about the Xerox ProfitAccelerator portfolio, visit www.xerox.com/driveprofit or call 800-ASK-XEROX.
NOTE TO EDITORS: Visit Xerox's booth, C/C70, in Hall 3A, April 4-11, at IPEX 2006, National Exhibition Center, Birmingham, UK. For more information about Xerox, visit http://www.xerox.com/news. XEROX(R) and ProfitAccelerator(TM) are trademarks of XEROX CORPORATION.
By Beth E. Musselman
Army Materiel Command
Maj. Tracy Pennycuick describes the projects she completed to earn her Lean Six Sigma black belt certification.(Photo, Alicia Sehring)
Lean Six Sigma
Lean Six Sigma is an Army-wide business transformation centered on re-engineering business processes. It is designed to take work out and improve cycle time.
Ultimately, it will lead to more efficient production that frees resources that can be used to better support the warfighting side of the Army, Secretary of the Army Francis J. Harvey said.
Lean Six Sigma formed from two independently-developed improvement tools. Lean is an outgrowth of the Toyota production system, and focuses on increasing efficiency and reducing cycle time by the elimination of waste.
Six Sigma was developed by Motorola beginning in the 1970s as an approach to improving quality and effectiveness through statistical control. Its roots go back more than 150 years to a Prussian mathematician who introduced the concept of the normal curve.
Together, Lean and Six Sigma are powerful tools in transforming organizations, Army Materiel Command officials said. Lean Six Sigma enables a culture of innovation that continuously listens to customers, questions the status quo, and improves results through fact-based decisions.
The Lean Six Sigma mentality is quickly spreading through the Army. At Headquarters, Army Materiel Command, where Lean began, several individuals have committed themselves to becoming part of this process.
But none more than Maj. Tracy Pennycuick. Recently certified as a LSS black belt, Pennycuick was HQAMC’s first uniformed black belt, and only the sixth recipient of the prestigious ranking.
Pennycuick began the program as many would. She was the executive officer for Greg Kee, deputy chief of staff, strategic plans and policy, and heard of a “management tool”course being offered. As a small business owner, she thought the
course would be useful.
The one-week class was the Lean Six Sigma green belt course, an introduction to the philosophy. Once the course was complete, Pennycuick returned to her normal
duties and immediately began to notice areas that could be more efficient. The class had opened her eyes to the many possible applications of LSS.
Pennycuick appreciated the business aspect of LSS. “I liked the fact that it was applying business tools and process,” she said. She then decided she would
continue the training.
Since LSS is an ongoing effort to reduce waste throughout every process, once one level is completed, one is challenged to move up to the next. Upon receiving green belt status, the next step is black belt and then master black belt.
Black belt status is difficult to obtain. The intense process involves training courses spread out, one week at a time, over six months. During this time, the trainee is tasked with finding a current process or issue and leading a team to develop an improved version. Those wishing to go all the way may consider master black belt, which includes training and mentoring up-and-coming LSS participants.
When it came time for Pennycuick to begin her project, she drew from her everyday work experience and quickly found room for improvement in the command’s tasker system. The process was very slow, with duplication of efforts and lots of time wasted on back-and-forth e-mails. The drawn-out process often ended in inadequate responses, which had to be redone. The tasker process was the perfect candidate, said Pennycuick.
Pennycuick put together a working group and they began streamlining and automating the process. The goal was to provide a better quality product to the requester as quick as possible and with ongoing visibility. The recommended changes were put into effect and are estimated to decrease completion time 40 percent and the number of taskers that must be redone by 25 percent. The command is currently seeking funding to purchase computer software that will support the new process.
So with that project complete, Pennycuick had fulfilled her black belt requirements, but she didn’t stop there. As if being a mother of four, an XO and working on one LSS project wasn’t enough, Pennycuick decided she wanted to take on another. She found holes in the way AMC accounted for contractors on the battlefield and knew this would be a perfect LSS project.
According to Pennycuick, contractor accountability on the battlefield was spotty at best. DoD and non-DoD contractors were entering, leaving and traveling through Iraq, Afghanistan and Kuwait without a clear tracking process or accountability. Although the Aerial Ports of Debarkation capture contractor data, they are not strategically placed on the battlefield and therefore leave huge gaps.
Current accountability procedures varied by command and subcommand, so the policies often competed. Since it wasn’t clear who owned the contractors, no one was on the hook to enforce policy. In November 2005, Pennycuick made a six-week trip to the Southwest Asia region to identify these gaps and recommend improvements.
Pennycuick focused on tracking contractors by the way they move, cross checking references and clearances in different systems, and verifying their information. The new system would provide better security and allow the proper company to be billed when contractors incurred expenses.
Pennycuick also found that standardizing forms and procedures allowed contractor control cells to become modular and shift as needed with the Army. Memorandums of Agreement with rotary wing and Army fixed wing have increased AMC visibility over contractor inter-theater movement by 70 percent.
The Government Accountability Office recently visited AMC operations in theater and were impressed with all the progress that has been made on such a limited budget, said Pennycuick. AMC has been supporting the contractor accountability on the battlefield mission without funding or assistance; however, the GAO’s recommendations may help with that.
Because of the extensive improvements made, AMC’s contractor accountability program may soon be the standard for DoD.
Currently, AMC is the only DoD agency tracking contractor accountability.
With so many great improvements made, Maj. Pennycuick could sit back and relax knowing she has done her duty. But that’s not going to happen. Pennycuick has recently made the move to one of AMC’s major subordinate commands, the Research, Development and Engineering Command, Aberdeen Proving Ground, Md., to implement LSS on a command level.
As a direct result of her great achievements at AMC, Pennycuick is now helping others learn and implement the Lean Six Sigma philosophies. She plans on continuing down the LSS path to master black belt and looks forward to doing more projects.
“I want to do more in direct support of Soldiers. My personal objective is to get the best equipment to the Soldier on the ground as fast as humanly possible,” she said.
The LSS mentality is spreading throughout the Army. Secretary of the Army, Dr. Francis J. Harvey recently stated LSS will be implemented Army-wide, streamlining operations from the depots all the way up to the Department of the Army.
Lean Six Sigma is the future of the Army and people like Pennycuick are leading the way. To find out how you can participate in Lean Six Sigma, visit www.amc.army.mil/lean or see your local Lean Six Sigma representative.
