Brig Gen S. Taco Gilbert HQ USAF

1. Brig Gen S. Taco Gilbert HQ USAF/A3-SO

2. Overview What is AFSO21 How is AFSO21 Organized What has AFSO21 Achieved to Date What is the Commander�s Role

3. Current Situation Resource constraints will continue to mount � it�s getting worse,not better Equipment continues to age Average aircraft age now 23+ years Manpower costs rising approximately 6% annually PBD 720 mandates major manpower reductions across the Total Force

4. Haven�t We Heard This Before? Numerous past attempts at AF Process Improvement Zero Defects, MBO, TQM (QAF), others Met with varied but limited success due to: Flaws in the system themselves Mistakes in implementation Lack of leadership support and continuity Form versus results Lean shares some of the same tools and techniques, but with fundamental differences: It creates an end-to-end system, not just a series of stand-alone processes It�s output based and outwardly focused on the customer; i.e. mission based and warfighter focused

5. What AFSO 21 IS Air Force unique model using portions of: Lean, Six Sigma, Theory of Constraints, Business Process Reengineering Increased Operational Support Killing Non-value-Added Work Clean Sheet Thinking Improving How We Operate It�s all about the RESULTS� AFSO21 is all about Combat Capability. Our core missions and how we support and effect those missions is central to every AFSO21 event. We need to look at each of our missions from start to finish to identify the each and every step (end to end). We need to see evaluate each step as adding value to the result we want�and if the step doesn�t add value, we need to kill that step. This methodical approach to analyzing our processes will shine a spotlight on what�s a burden to our troops. It�s important to understand that we�re building AFSO21 as a unique Air Force model to learn how to evaluate and improve our work processes. This unique approach uses portions of �Lean thinking�, 6 Sigma, as well as other process improvement tools. The point is that we are building a program that is flexible enough to apply across many areas in our Air force. We are building a tool kit with a variety of tools in it. We need clean sheet thinking. We need to start with the idea of 1. Can I not do this activity and who would care or who who miss it and 2. How would I build it if I were starting from scratch. In the end, everything we work on MUST improve how we Operate. It�s all about the results. This methodology must get rid of more work that it brings to us. NEXT SLIDEAFSO21 is all about Combat Capability. Our core missions and how we support and effect those missions is central to every AFSO21 event. We need to look at each of our missions from start to finish to identify the each and every step (end to end). We need to see evaluate each step as adding value to the result we want�and if the step doesn�t add value, we need to kill that step. This methodical approach to analyzing our processes will shine a spotlight on what�s a burden to our troops. It�s important to understand that we�re building AFSO21 as a unique Air Force model to learn how to evaluate and improve our work processes. This unique approach uses portions of �Lean thinking�, 6 Sigma, as well as other process improvement tools. The point is that we are building a program that is flexible enough to apply across many areas in our Air force. We are building a tool kit with a variety of tools in it. We need clean sheet thinking. We need to start with the idea of 1. Can I not do this activity and who would care or who who miss it and 2. How would I build it if I were starting from scratch. In the end, everything we work on MUST improve how we Operate. It�s all about the results. This methodology must get rid of more work that it brings to us. NEXT SLIDE

6. AFSO21 is not about Personnel Reductions

7. Implementation ApproachIt�s Not New Time Sensitive Targeting We killed non-value added parts of chain� �Results� 100 more KC-135s in the Wings That�s 8 additional Sqs available each day!� �Combat Capability� Dover Flightline Moved from 12 hr shifts to 8 (1st time in 3 yrs)� �Improve the operator� Time to expand our efforts across the entire AF�tooth and tail Codify, Standardize, Implement overarching AF-wide strategy

8. What Is A Process? A designed group of related tasks that work together to create a result of value End-to-end work across an enterprise Dr. Michael Hammer

9. Air Force Key Processes

10. AF Model for Lean CPIContinuous Improvement Cycle This improvement cycle applies to rapid improvement events associated with Lean activities as well as larger improvement efforts (e.g., Business Process Reengineering) which can take months or years to develop and implement. The cycle starts and circles back to leadership and leading change. We must recognize that there will be resource constraints in implementing improvements, so it is important that we organize and prioritize improvement activities within our Wings and Groups. Understanding our current and desired processes is important, as well as the fundamental value and capability chain activities reside. Process redesign may start in a shop area and quick gains may be realized, but the greatest gains can be realized from broader views and cross-functional understanding of value chains we are redesign or designing for the first time. The improvement step may occur during the same week of an improvement project, but for process improvements that span bases and organizations, similar improvement cycles should be conducted across bases to implement standardized processes and best practices within the unique facility or other resource constraints of that location. Assessing improvements and sustaining them is critical. It is not atypical for a team to slip back into prior business practices when they start to run into difficulties. Those difficulties routinely resulting from the unmasking of hidden problems which need to be resolved to continue the journey of continuous improvement and elimination of waste in our processes. Failure to assess and sustain improvements along with sharing and standardizing on improvements across the AF could turn our CPI efforts into short term, limited gains from Action Workouts.This improvement cycle applies to rapid improvement events associated with Lean activities as well as larger improvement efforts (e.g., Business Process Reengineering) which can take months or years to develop and implement. The cycle starts and circles back to leadership and leading change. We must recognize that there will be resource constraints in implementing improvements, so it is important that we organize and prioritize improvement activities within our Wings and Groups. Understanding our current and desired processes is important, as well as the fundamental value and capability chain activities reside. Process redesign may start in a shop area and quick gains may be realized, but the greatest gains can be realized from broader views and cross-functional understanding of value chains we are redesign or designing for the first time. The improvement step may occur during the same week of an improvement project, but for process improvements that span bases and organizations, similar improvement cycles should be conducted across bases to implement standardized processes and best practices within the unique facility or other resource constraints of that location. Assessing improvements and sustaining them is critical. It is not atypical for a team to slip back into prior business practices when they start to run into difficulties. Those difficulties routinely resulting from the unmasking of hidden problems which need to be resolved to continue the journey of continuous improvement and elimination of waste in our processes. Failure to assess and sustain improvements along with sharing and standardizing on improvements across the AF could turn our CPI efforts into short term, limited gains from Action Workouts.

12. AFSO21 InitiativesAir Force Actions Initiatives span high level enterprise analysis and action planning (to organize priorities) and unit level projects to implement improvements and learn the operating principles associated with continuous improvement Enterprise analysis and action planning events: Organizational enterprise events completed at all ALCs Agile Combat Support Acquisition Product Support DCS/Logistics, Installations & Mission Support

13. Success Stories Robins AFB: C-5 aircraft overhaul Flowdays reduced from 339 to 171 Mechanic travel time reduced by 60% Freed up one dock for additional workload McChord AFB: Wheel & tire shop Reduced manpower from 14 to 5 Reduced steps from 7 to 4 Cycle time reduced by 67% AF Civil Engineers: Streamlined Air Force design-build process Second pass: Reduced flow days from 1,046 to 599 days (42%)

14. Where�s the Return? But successes have not produced end strength reductions to date Additional manpower and dollars have been reallocated to additional work and lower priority projects But real return is in terms of efficiency, effectiveness, flow times, quality, morale, and safety

15. AFMC AFSO21Meeting The Challenge Quick wins ongoing Vehicle registration HQ Tasking Process IT Certification & Accreditation Top strategic areas for improvement: 34 submitted, combined to 28, 4 selected for initial effort

16. General Claims Division (JACC) Claims Consolidation Concept: Consolidate Air Force Claims Processing Corporate insurance company model adapted to Air Force needs Impact: Greater efficiencies at reduced cost Significant reduction in required manpower Improved service for Air Force members Key Components: Web-based claims filing Telephone assistance available around the clock Core cadre of experienced adjudicators Disaster Team available for extraordinary events

17. USAFE Rapid Improvement Events Spangdahlem Propulsion Shop achieved major improvements in output Cycle times reduced by approximately 50 percent Engines in the pipeline reduced from 19 to 6 USAFE Network Control Centers consolidated Reduced required manpower and improved support USAFE Telephone Operators reduced and operations consolidated

18. AFSO21Sampling of Projects F-15C Live Fly vs Distributed Mission Ops (Simulation) Aerial Port Velocity Initiative Mobility Air Force En Route Support Design Build Process Numerous Fleet Availability Improvement Initiatives (e.g., B-1, B-2, F-16, and C-5) Positioning the Force ICBM Maintenance Process

19. Short-Term Tasks MAJCOMs each provided 3 quick-win initiatives plus 1 Air Force Level initiative for consideration Develop and conduct executive training for 3 and 4 Star (and SES equivalent) Coordinate initial governance structure and guidance documents Develop AF-Wide Strategic Communications Plan Congress, OSD, COCOMs, Internal AF (Civ & Mil) We felt if was important to not spend weeks and months planning the perfect introductory events. Each MACJOM was tasked to provide three quick win initiatives that can be started in the first few months of the 06. These quick wins serve two purposes, first, it gets us started and second, it provides a training venue to start the education of our personnel on AFSO21 ways of thinking and approaching work processes. The MAJCOM submitted their initiatives and are in the process of scheduling the 1st training and AFSO21 events. Each MAJCOM initiative has been given a headquarter AF �sponsor� group to guide them through the first AFSO21 event and provide any help needed in obtaining facilitators or trainers. We also want to show the troops that we are serious about getting rid of non-value added work. We are going to ask the MAJCOMs to provide at least 10 things (from sq through AF level) that we can stop doing right now. We�ve talked about this concept for a long time, and now we need to find work we can divest ourselves from. We�ve already talked about the executive training, but we need to get that complete in the next few months. We need to develop an AF-wide strategic game plan. This plan needs to realize that we have many folks that have interests in this and many folks we need to engage. We can�t forget congress, OSD, the COCOMS and our internal AF audience. We�re going to need to think through how AFSO21 effects each of these groups to ensure we have a sound strategy. We also decided we needed a point man to push the AFSO21 initiative. We�ve stood up the A3-SO shop (similar to XOPE for the AEF) to drive the initiative. Next slideWe felt if was important to not spend weeks and months planning the perfect introductory events. Each MACJOM was tasked to provide three quick win initiatives that can be started in the first few months of the 06. These quick wins serve two purposes, first, it gets us started and second, it provides a training venue to start the education of our personnel on AFSO21 ways of thinking and approaching work processes. The MAJCOM submitted their initiatives and are in the process of scheduling the 1st training and AFSO21 events. Each MAJCOM initiative has been given a headquarter AF �sponsor� group to guide them through the first AFSO21 event and provide any help needed in obtaining facilitators or trainers. We also want to show the troops that we are serious about getting rid of non-value added work. We are going to ask the MAJCOMs to provide at least 10 things (from sq through AF level) that we can stop doing right now. We�ve talked about this concept for a long time, and now we need to find work we can divest ourselves from. We�ve already talked about the executive training, but we need to get that complete in the next few months. We need to develop an AF-wide strategic game plan. This plan needs to realize that we have many folks that have interests in this and many folks we need to engage. We can�t forget congress, OSD, the COCOMS and our internal AF audience. We�re going to need to think through how AFSO21 effects each of these groups to ensure we have a sound strategy. We also decided we needed a point man to push the AFSO21 initiative. We�ve stood up the A3-SO shop (similar to XOPE for the AEF) to drive the initiative. Next slide

20. Commander Early Actions Leadership training and organizing is a first step imperative Training involves getting dirty with hands on experience Seek AFSO21 expert assistance to begin the journey Conduct value stream mapping with assistance of Lean or AFSO21 change agents Current vs future state map to guide attacking waste Establish vision and goals for improvement Develop action plan, priorities, and responsibilities Communicate the vision and plan for implementation Integrate AFSO21 into workforce development programs Develop the right individuals as AFSO21 change agents Ultimately involve all in AFSO21 events and projects Lead and actively participate in continuous improvement efforts Monitor, measure, and share results across the organization and up the chain of command

21. Summary What we want from a Lean operating style: Ability to deal with declining resources without loss of combat capability or ability to modernize Identify and begin to eliminate the waste inherent in our day-to-day processes Enhanced ability to accomplish our mission Greater agility in response to changing demands People who are conscious of the value they deliver and seeking to improve every day People who see their role in a fundamentally different way

22. A Closing Thought �My whole notion of how much change was possible in a given period of time was fundamentally and permanently altered.� --George Koenigsaecker Lean Thinking, pg 129

23. Questions