Supplier Quality Conference

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Supplier Quality Conference

• Introduction and Program Goals

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Welcome

• Goals of Conference
• Approach
• Discussion Topics
• Cost of Material Problems
• VIRGINIA Class Cost Reduction
• Areas of Opportunity
• Suppliers Role
• Product Quality and Ship Safety

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Goals of Conference
Electric Boat Reduce cost of submarines (2
ships / year)
Reduce deviations, rejections, and rework
Improve knowledge of requirements
Suppliers Increase profitability market share
Win Win by focusing on first time quality !
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Approach

• Clarify Electric Boat Requirements
• Share Lessons Learned
• Identify Available Tools and Information
• Simplify Doing Business with Electric Boat

Discussions Focused on Areas of Opportunity
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Discussion Topics
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Cost of Material Problems

• About 1 million EB hours have been spent
  resolving material issues for VIRIGNIA Class
• Rework cost is more than just material cost
• Process and control rejections
• Remove and replace materials
• Impact to system ship testing
• Work re-sequencing costs
• Schedule delays
• Rework time is much greater as the
• ship becomes more complete

Significant Improvement Opportunity
Suppliers are also affected by rework cost
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Increased Resolution Time
Machine Shop
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Increased Resolution Time
Hull Section
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Increased Resolution Time
Closed Hull
like building a watch through the stem-hole.
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VIRGINIA Cost Goal
CNO " the cost of them has got to come down ...
it's got to be about 2 billion a ship. ADM
Michael G. Mullen
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VIRGINIA Cost Performance
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VIRGINIA Cost Breakdown
30 Purchased Material
31 Government Material
Shipyard Labor 39
Block III (SSN787) Costs
Material costs significantly affect overall ship
cost
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VIRGINIA Cost Reduction
2B Cost Challenge
Inherent Cost
Structural Cost
Systemic Cost
Realized Cost
100 to 60 month Schedule Reduction
Design For Affordability
AcquisitionStrategy / Plan
Labor Efficiency
Key Efforts

• Producibility
• Value Stream Analysis / LEAN Six Sigma
• MANTECH
• Shipyard Quality
• Productivity Metrics
• Eng Support

• 4-Module Build Plan
• Increased work scope
• Increase Modular Construction Efficiencies
• Construction Span Reduction
• Work Reallocation
• Infrastructure Changes
• PSA Elimination

• Prime and Sub Contracting
• Material Ordering w/ EOQ
• Selective Class Spares
• Business Processes Systems
• Supplier Outreach

• Bow Redesign
• System Reviews / Design Changes
• Schedule Driven Design Changes
• Test Program Re-engineering
• Design for Production
• Process Technology

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100 to 60 Schedule Reduction
Full Capability
Block I Build Plan
12 months

• Opportunity - 100 months
• 96 months in SY
• 4 months Post PSA

At Sea
PSA
VA New Construction (84 months)
Full Capability
4 mos
Proposed Vision

• 60 months in New Const
• No post Bravo Drydock
• No PSA

Construction Span Reduction
VA New Construction (60 months)

• Key Actions to Achieve Schedule Reduction
• Increased Volume of Work Completed in 1st Year of
  Construction
• Mature the 4-Module New Construction Build Plan
• Complete Full MIP/SHT Installation during New
  Construction
• Eliminate Post-Shakedown Availability

• Program Benefits
• Schedule Reduction is a Key Enabler to
  achieving 2B cost goal
• Increase Customer utilization of product

Material rework jeopardizes 60 month schedule and
2B ship
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Areas of Opportunity

• Welding controls, qualifications and records
• NDT qualifications and sequencing
• Flow down of material requirements to sub-tier
  suppliers
• Untimely discovery of hardware and documentation
  deficiencies
• Lack of control/knowledge of sub-tier supplier
  material producers
• Software version incompatibility and lack of
  configuration control
• Non-prototypic testing of hardware
• Lack of adequate process control
• Test lab inaccuracies
• Lack of control of sub-tier suppliers

First time quality is essential for 2B submarine
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Suppliers Role

• What Can Suppliers Do?
• Participate in this EB sponsored regional quality
  conference
• Comply with Purchase Order requirements
• Flowdown and enforce contract requirements /
  process control at Tier-2 level and beyond
• Identify and champion cost reduction

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Unforgiving Environment

• USS San Francisco
• Was 24 years old, running deep, going fast
• Collided nearly head-on with a mountain (without
  warning)
• One sailor died and others were injured

A robust design and high product quality saved
the ship !
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Product Quality Ship Safety

• The material that you supply and we install must
  function properly to ensure the safety and
  mission readiness of the ship and crew
• Every plate, nut, bolt, flange, pipe, valve,
  pump, turbine, etc. is an essential part of the
  complex submarine platform
• Compliance with contract requirements is what
  ensures proper functionality
• Attention to detail in contract review,
  requirements flow down, and compliance
  verification is the key to success

"I believe it is the duty of every man to act as
though the fate of the world depends on them.
Surely no one man can do it all. But, one man CAN
make a difference. Admiral H. G. Rickover
The safety of the ship and crew is in our hands !
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• Our submarines bring sailors into an environment
  that cannot sustain human life, and they depend
  upon us for a product that will get them to their
  mission and back again safely.
• John P. Casey, President of Electric Boat

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