TRAINING THE CUSTOMER AND THE SUPPLIER

1. TRAINING THE CUSTOMER AND THE SUPPLIER Presented by Jay Billings To SALT Conference 22-24 August 2007 (c) 2007 DSMC

2. TRAINING THE CUSTOMER AND THE SUPPLIER GIVEN: • The pace of change in technology, in organization and in procedures and processes is accelerating. • The “average” person will have 3-7 occupational careers in their lifetime. • The main skill needed is the ability to learn quickly. • Teaching is the art/science of creating a learning environment. One in which learning quickly can take place. (c) 2007 DSMC

3. TRAINING THE CUSTOMER AND THE SUPPLIER GIVEN: • From a systems perspective we are all located between a supplier and a customer. • You give or supply to me a product or service (input) • I process it • I provide it to a customer as a value added product or service (output) • Both the customer and my process provide feedback or metrics to the control on performance (c) 2007 DSMC

4. TRAINING THE CUSTOMER AND THE SUPPLIER • Key metrics are • Faster • Better • Less Expensive • Metric comparison bases are • History • Your plan • Competition (benchmarking) (c) 2007 DSMC

5. TRAINING THE CUSTOMER AND THE SUPPLIER • The problem— • In a condition of changing technology, organization and procedures we want to improve our processes so that they are better, faster and less expensive than our competitors • The reality— • Somebody else wants your job/program/lunch • [If you don’t do it someone else will] (c) 2007 DSMC

6. TRAINING THE CUSTOMER AND THE SUPPLIER • Let’s do some quick strategic planning and goal setting • 1st Where are we? • Current status • 2nd Where do we want to be? • Goals and Objectives • 3rd Why do we want that? • Vision and Mission (c) 2007 DSMC

7. TRAINING THE CUSTOMER AND THE SUPPLIER Why? Vision and Mission Where do we want to be? Where are we? (c) 2007 DSMC

8. TRAINING THE CUSTOMER AND THE SUPPLIER Why? Vision and Mission Where are we? Where do we want to be? (c) 2007 DSMC

9. TRAINING THE CUSTOMER AND THE SUPPLIER Why? Vision and Mission Where are we? Where do we want to be? Obvious solution (c) 2007 DSMC

10. TRAINING THE CUSTOMER AND THE SUPPLIER Why? Vision and Mission Where are we? Where do we want to be? Obvious solution Barriers or the “Yeah buts…” (c) 2007 DSMC

11. TRAINING THE CUSTOMER AND THE SUPPLIER Why? Vision and Mission Best solution considering the barrier(s) Where are we? Where do we want to be? Obvious solution Barriers or the “Yeah buts…” (c) 2007 DSMC

12. TRAINING THE CUSTOMER AND THE SUPPLIER Higher Level SUPPORT Why? Vision and Mission Best solution considering the barrier(s) Where are we? Where do we want to be? Obvious solution Barriers or the “Yeah buts…” METRICS (c) 2007 DSMC

13. TRAINING THE CUSTOMER AND THE SUPPLIER • Summary of Strategic Planning • We want to get from where we are to where we want to be because that is our mission and vision, and we have to get support or help from someone else to do it • And we want to do this faster, better and less expensively than our competition (c) 2007 DSMC

14. TRAINING THE CUSTOMER AND THE SUPPLIER • We are the process between a supplier and a customer. • Let’s reach out to the supplier and customer and do a needs assessment to determine what can be done to be faster, better and less expensive. • And maybe get some support too. (c) 2007 DSMC

15. TRAINING THE CUSTOMER AND THE SUPPLIER • Summarizing my experience. • My “needs” findings were • Improve communications • Common vocabulary • Communications effectiveness reviews • Understand their and my technology • Understand their and my processes (c) 2007 DSMC

16. TRAINING THE CUSTOMER AND THE SUPPLIER • There are a lot of barriers • Outreach to suppliers and customers “not the way we do things” • People have gotten promoted using the old ways • Stove pipes and rice bowls (any change affects these) • Funding availability • Theft of IP (c) 2007 DSMC

17. Leaning our way For You Leaning the other way Opposed to you + Your Competition TRAINING THE CUSTOMER AND THE SUPPLIER • Stakeholder analysis (c) 2007 DSMC

18. TRAINING THE CUSTOMER AND THE SUPPLIER • A practical application-- themes from this conference rapid development integrating multiple technologies, agile learning Cultural Aware-ness JITT widening generational learning gap Afford-ability Balance= Satisfied customer (c) 2007 DSMC

19. TRAINING THE CUSTOMER AND THE SUPPLIER • A practical application—”yeah buts…” 15 year Life cycle is acceptable specialized technologies, Pre-existing learning Cultural BLINDNESS Test first--learn later tradition Cost Con-straints Self evaluation (c) 2007 DSMC

20. TRAINING THE CUSTOMER AND THE SUPPLIER • Joint Employee Development/Training Initiative [used at U S Army Space and Missile Defense Command] • Situation: Aging workforce +Increasing Requirements =The perfect storm (c) 2007 DSMC

21. TRAINING THE CUSTOMER AND THE SUPPLIER Model for JET/DI • There are 7 major factors that must be in alignment in order for organizations to meet their organizational goals: • Assessing the Environment within which you operate • Defining your Mission / Strategy (product)/service, customer, value proposition) • Defining the high level Organizational Process for each product/service • Organizational Structure • People System • Lower level processes and policies • Culture (c) 2007 DSMC

22. TRAINING THE CUSTOMER AND THE SUPPLIER • All Work is a Process--The most basic concept in Lean and Flow process improvement is that all work can be understood and analyzed as a process or series of processes. Especially in non-manufacturing environments, where the focus is on the “transaction” or customer deliverable to understand process capability and optimization (c) 2007 DSMC

23. TRAINING THE CUSTOMER AND THE SUPPLIER High Level Organizational Processes [part 1] • Once the products and services are defined for an organization, it is critical to determine the high level steps necessary in order to produce those products and services. Too often decision makers want to define the organization structure first, however, it is critical to define a high level (12-15 steps) process for each product or service first. These high level processes define the major functions and handoffs that must occur for the organization to be effective. A high level process cuts across all organizations and defines the coordination necessary to produce the products and services. Form follows function (c) 2007 DSMC

24. TRAINING THE CUSTOMER AND THE SUPPLIER High Level Organizational Processes [part 2] • Research has found that when a reorganization occurs that the linkages (handoffs between organizations) and processes have to be reinvented. It takes good performers an average of 6 months to redefine how these handoffs occur, to whom to deliver the new handoffs, and the form in which the handoffs should be packaged. Mediocre and below average employees wait to be told how to change their processes and linkages. Over the last 20 years reorganizations of centers, programs and projects has been very frequent, creating significant downtime as personnel have attempted to figure out how to deliver the products or services required within the new organization structure. Change management is critical (c) 2007 DSMC

25. TRAINING THE CUSTOMER AND THE SUPPLIER Medium Level Processes • These processes generally involve two or more organizations and define the coordination necessary between these organizations. Low Level Processes • These processes should be defined for critical tasks. They typically lie within one department or group. (c) 2007 DSMC

26. TRAINING THE CUSTOMER AND THE SUPPLIER Components of the training include: • Communication—degree to which information is available and shared • Conflict—how is conflict dealt with, is it acknowledged, is it worked to resolution? • Reward / Award / Recognition processes—how are employees rewarded for good performance? • Decision-making—how are decisions made? Is information made available to decision makers; are decisions made at the appropriate level of the organization • Morale—is there esprit de corps? Are people having fun? • Diversity concerns—are there race and gender issues? (c) 2007 DSMC

27. TRAINING THE CUSTOMER AND THE SUPPLIER • JET/DI • OBJECTIVE: increase understanding of the company's business goals, to help the company achieve those goals (*a*) • IDENTIFY: How must I change my work or my skills and knowledge to help the company achieve this goal?" (*b*) • MEASUREMENT: How you will demonstrate that the learning has taken place-process results, and outcome results(*c*) (c) 2007 DSMC

28. TRAINING THE CUSTOMER AND THE SUPPLIER • *a* training/courses [communications] NEW • *b* training/courses [skills and knowledge] EXIST • *c* training/courses [shows value added] NEW (c) 2007 DSMC

29. TRAINING THE CUSTOMER AND THE SUPPLIER *a* training/courses [communications] NEW • Supplier and Customer terminology A-101… • Supplier and Customer requirements determination A-201… (c) 2007 DSMC

30. TRAINING THE CUSTOMER AND THE SUPPLIER • b* training/courses [skills and knowledge] EXIST ALREADY BUT NOT OPTIMIZED FOR LEAN • Value added processes from supplier and customer point of view (c) 2007 DSMC

31. TRAINING THE CUSTOMER AND THE SUPPLIER • c* training/courses [shows value added] NEW • Keeping score C-101…--Measures of effectiveness from customer and supplier point of view • Keeping score C-201…Measures of effectiveness from return on investment point of view This tends to lead to a significant increase in both speed and productivity for a simple reason: most of the features we put into systems are never used • Redeployment of the surplus workforce capacity.  By redeploying the new work capacity the business is now empowered to grow with little or no cost.  This new capacity can now be sold at any price point as this capacity is sold at a 100% profit margin.  C-301… (c) 2007 DSMC

32. TRAINING THE CUSTOMER AND THE SUPPLIER • EXPECTED AND DEMONSTRATED BENEFITS OF THE COURSES • Understand your customer’s needs and how to meet them • Uncover and eliminate the hidden factory- all the waste, rework, inspection, and work-a-rounds that take enormous bites out of resources • Stop managing to randomness- understand variation and how to respond to it effectively • Eliminate the Root Cause of problems so they don’t come back • Verify, statistically, what ideas actually improve results • Results are measured with pre- and post tests and follow-up (c) 2007 DSMC

33. TRAINING THE CUSTOMER AND THE SUPPLIER • When a project involves knowledge creation, rather than just knowledge replication, speed and quality come from improving the flow of creating knowledge.  (Or the speed of learning) • The key to streamlining a development process is to clearly distinguish between true knowledge creating iterations and iterations that lead down blind alleys.  Knowledge creating iterations explore multiple options and leave as many possibilities open as possible, delaying decisions until the last responsible moment.  • TRAINING is for specialists and EDUCATION is for generalists (c) 2007 DSMC

34. TRAINING THE CUSTOMER AND THE SUPPLIER • Lean Principles • •  Value:  What the customer is willing to pay for.•  Value Stream: Actions that add value to a product or process.•  Flow:  The continuous movement of product, favoring single-piece flow and work cells versus production lines.•  Pull: Replacing only material that is used and eliminating excessive inventory.•  Continuous Improvement: A relentless elimination of waste on a never-ending basis. (c) 2007 DSMC

35. TRAINING THE CUSTOMER AND THE SUPPLIER Flexibility = Productivity • The key to maximum productivity is a well-designed process run by trainedand flexible employees who know where their skills are most needed at any given time. (c) 2007 DSMC

36. Current and Proposed Initiatives Sustainment / Improvement Process Recruitment – Development – Retention Perform Analysis of Current Workforce – Determine Critical Positions & Attrition Schedule Determine Important KSAs and Experience Levels Required TMT Analysis and KSA Database Alabama A&M Technical Contract Employees With Needed KSAs Available In-House or Outside Source Determine/ Develop Source of KSAs and Experience Levels Universities and Colleges Result: Qualified Employees Available For Critical Positions Institute Training to Develop RDA Employees In Needed KSAs Quadrus / Raytheon Training Development & Deployment (c) 2007 DSMC

37. 7th Cavalry Div. C Company Barracks 7th Cavalry Div. B Company Barracks Ft. Courage Hands-On Lesson – Part I You are both new battery commanders for the Snark™ super-duper air-defense system. You have 8 interceptors each and no communications with anyone. Battery A – Defend a hospital from a ballistic missile attack. Battery B – Defend a vital military base from a ballistic missile attack. (c) 2007 DSMC

38. Reports: Failure to Coordinate 2,000 casualties from un-intercepted ballistic missile…… (c) 2007 DSMC

39. System of Systems 101 S&MD 101 etc… “Professional development is critical to maintaining acquisition competencies in a rapidly changing environment.” - LTG Yacovac, Policy Letter, October 12, 2006 SMDC Army Training DAU Training Technical Training (c) 2007 DSMC

40. Training for the Missile Defense Community of Interest Space & Missile Defense 101 System of Systems 101 SMD Inter- operability Space & Missile Defense 202 Net-Centric Systems SMD Interceptor SMD Sensors SMD Shot Doctrine … … MORE Today’s Hands-on Lesson: Fire Coordination Ultimately supported by a state-of-the-art, multi-media and simulation training capability (c) 2007 DSMC

41. Introduction System of systems is an emerging concept Traditional thinking is stove-piped by system Increased emphasis on Joint Systems There is a lack of training opportunities that can instill this understanding Understand concepts & application of Systems of Systems Mission systems training for IAMD community A way to shorten the time for implementers to come up to speed Class Syllabus General overview and basic vocabulary Factors that influence Systems of Systems Systems of Systems at different levels of command and control Space & Missile Defense Lexicon Ballistic Missile Discrimination Fire control Fire Coordination Payload Probability of Kill (Pk) Re-entry Vehicle etc… Communication networks Red-vs-Blue simulation exercises Students vs students Students vs instructors Space & Missile Defense 101 “Learning The Concepts Behind the Vocabulary” Fire Coordination Coordination of selection of tracked objects to be engaged by two or more weapon systems, which may be geographically separate or co-located, to ensure maximum probability of success using least number of available weapons Lesson Points What are the benefits of fire coordination? What are the factors that influence the effectiveness of Fire Coordination? (c) 2007 DSMC

42. 7th Cavalry Div. C Company Barracks 7th Cavalry Div. B Company Barracks Ft. Courage Hands-On Lesson – Part II You are both battery commanders for the new Snark II™ super-duper air-defense system. You have 8 interceptors each. Your command vehicle has been upgraded with point-to-point voice communications. Battery A – Defend a hospital from a ballistic missile attack. Battery B – Defend a vital military base from a ballistic missile attack. Lesson Points Coordination of firing control = Improved defense of assets + Fewer wasted shots (c) 2007 DSMC

43. Reports: What did we learn? Air defense installations successfully defeated a missile attack today. Missile defense works. Fire coordination saves lives, protects property, and improves utilization of resources. (c) 2007 DSMC

44. BACK-up slides (c) 2007 DSMC

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50. TRAINING THE CUSTOMER AND THE SUPPLIER • Some other population facts • Median age is 36 • Minority Median age is 30 • Hispanic median age is 23 • U.S. economy is at full employment now with pockets of unemployment. If you are going to hire some one new you will have to raid someone else , move them from a low employment center, or hire untrained or inexperienced person(s) (c) 2007 DSMC