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Achieve theMissionDecreaseInventoryDecreaseCycle TimeNaval Aviation AIRSpeedforDefense Standardization sesDale L. MooreDeputy, Corporate Deployment ChampionNAVAIR AIRSpeed8 March 2005

NAVAIR Lines of BusinessCore Products in Support of Sea Power 21 CapabilitiesMARITIME WEAPONSSEA BASED AIRCRAFT &SYSTEMS / UNMANNED AERIALVEHICLES (UAVs)MISSION SYSTEMS & SENSORSAIR ASW / ASUWAIRCRAFT PLATFORM INTERFACESHIP & EXPEDITIONARYAIRCREW / MAINTENANCETRAINING SYSTEMSSYSTEMS ACQUISITIONRQMTS / RISKSFROMFLEET / OPNAVCONCEPT &TECH. DEVM’TSYSTEM DEVELOPMENT& DEMONSTRATIONPRODUCTION &DEPLOYMENTSUSTAINMENTOPERATIONS &SUPPORTHEADQUARTERS / PEOsWARFARE CENTERS6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 2/DEPOTS

AIRSpeed Inspiration Pay for theNaval Aviation of the 93100100133191FY08FY09254302Many Contributors Driving Major Reductions in A/C Procurements6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 3

NAVAIR’S Productivity TransformationSUPPORTING SEA POWER 21VisionProvide COST-WISE READINESS and DOMINANT MARITIME COMBATPOWER to make a great Navy / Marine Corps team betterGoals Balance current and future readiness Reduce cost of doing business Improve agility Ensure alignment Implement fleet-driven gle Fleet-Driven Metric:NAE resources made available to the Navy for recapitalizationThe Cost of “Current State” NAE Operations-The Cost of “Future State” NAE Operations* Resources made available to the Navy for recapitalization,and A/C Ready for Tasking at Reduced Cost6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 4

Naval Aviation Enterprise AIRSpeedDepot AIRSpeedEnterprise AIRSpeed(Lean, Six Sigma, TOC)(Lean, Six Sigma, TOC) Depot productionprocesses Fleet-WideRepair Sites & Processes Led by COs/AIR-6.0 Rollout to 3 sites Led by O-6 ESC O-I-D Supply Chain Links to NAVRIIP AIR-3.3 Coord OfficeNAVAIR AIRSpeed(Lean, Six Sigma, TOC) Corporate/CompetencyProcesses and OtherProductivity Initiatives Led byAAG/EDB Guidance Enabled by Core Team Links with Enterprise &Depot AIRSpeed There are three AIRSPEED programs with One Goal and One Metric:– Depot AIRSPEED which began in 1999– Enterprise AIRSPEED which began in 2003– NAVAIR AIRSPEED which began in 2004 All three drive productivity through process improvement using industry-proventools, and help establish a self-sustaining culture of continuous improvement.6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 5

NAVAIR Core ProcessesCORE FUNCTIONS /PROCESSESPart of the NAE Value StreamCORPORATE OPERATIONS(INSTALLATION MANAGEMENT TRANSFERRED TO CNI)ACQUISITION MANAGEMENTTECHNOLOGY, R&D, HARDWARE /SOFTWARE PRODUCTS / DESIGNIN-SERVICE ENGINEERING &LOGISTICS SUPPORTTEST AND EVALUATIONREPAIR / MODIFICATIONSAcquisition & Lifecycle Support StrategyNAVAIR AIRSpeedDepotAIRSpeedEnterprise AIRSpeedFUTURE READINESSRQMTS /RISKSFROMFLEET/OPNAVCONCEPT &TECHNOLOGYDEVELOPMENTSYSTEM DEVELOPMENT& DEMONSTRATIONWARFARE CENTERS6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 6CURRENT READINESSPRODUCTION &DEPLOYMENTHEADQUARTERS / PEOs/OPERATIONS &SUPPORTDEPOTS

WHERE WE HAVE BEEN Industry Benchmarking completed in FY04– LEI/TWI, Boeing, Lockheed Martin, GE, Raytheon– All Promoted Top Down Approach:- Champion Training for Senior Leaders- Blackbelt/Expert Program tied to Corporate Office- Pick the best & brightest for Blackbelt/Expert Training- Train the rest as they prepare to conduct projects NAVAIR EDB approved establishment of NAVAIR AIRSpeedCore Team on 3 May 2004 Wave’s 1 - 6 Executive Champion Training Sessions Complete(Top 150 )– LEI/TWI: Lean Value Stream Mapping & Transformation– GE: Six Sigma and Change Acceleration Process NAVAIR EDB approved establishment of AIRSpeed AdvisoryBoard on 12 October 2004 The George Group under contract to provide comprehensiveNAVAIR Lean Six Sigma Deployment & Training support– Executive & Project Sponsor Training Waves 1 -11 complete (350 )– Wave I BB Completed (X22), Waves II & III Started 1– Yellow Belt Team Member Training Waves 1-13 complete ( 325)6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 7

WHAT WE HAVE LEARNED Naval Aviation Workforce is “Pressurized”– Productivity tools essential to provide relief to meet Naval Aviation enterprisegoals Cultural Change is Required for Transformation– Quality (or Goodness) X Acceptance Effectiveness Need to make “AIRSpeed” a Corporate Leadership Value– Learning Organization, Problem Solving Culture How do we institutionalize AIRSpeed?– Systems & Structures Must Align to Support the Effort Award Systems Communications Training IT Effective Roll-out Requires (Toffler):– Clear Strategy– Engaged Leadership– Motivated Workforce– Effective Management Tools6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 8

NAVAIR AIRSpeed Implementation Process2004IMPLEMENTATION &EVOLUTIONRESOURCE &PROJECTSELECTIONINITIATIONYEAR 12005SEP OCT NOVDEC JANFEBMARAPRMAYJUNJULAUGBENCHMARKING & DEPLOYMENTDESIGNEXECUTIVE ENGAGEMENTEXECUTIVELAUNCHONGOING REVIEWS, INVOLVEMENT AND COMMUNICATIONSELECTION OF CHAMPIONS, BLACKBELTS AND SPONSORSPERSONNEL IDENTIFICATION & ROLE-SPECIFIC TRAININGPROJECT SPONSORSHIPWORKSHOPSBB PROJECT ID, PROJECT CHARTERING & SPONSORINGPROJECT IDENTIFICATION & SELECTIONMOBILIZATIONONGOING PROJECT PORTFOLIO MANAGEMENTBY CHAMPIONS / MASTER BLACK BELTSDEPLOYMENTWORKSHOPS &LEADERSHIPCOORDINATIONLEADERSHIP REVIEWS OF BLACK BELT PROJECTSAND PROCESSESWAVE 1 WAVE 2BLACK BELTLEAN SIX SIGMA WAVES WAVE 3WAVE 4WAVE 5 WAVE 6BENEFITSREFERENCE: LEAN SIX SIGMA, BY MICHAEL L. GEORGE6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 9

NAVAIR AIRSPEED STRUCTUREEDBCOMBINEDCOUNCILSCCBU & CPEOAAGAIRSPEEDADVISORY GROUPNAVAIR AIRSPEEDCORE TEAMLEVEL 1’sLVL 1LVL 1LVL 1LVL 1LVL 1LVL 1LVL 1LVL 1DeploymentChampions (DC))DCDCDCDCDCDCDCDCBLACK BELTS6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 10

NAVAIR AIRSpeed Deployment TeamCorporate Deployment ChampionRDML Mark Skinner Deputy CDC – Dale Moore Phil Zalesak Walt Gillette Allen Heim Julie WoodsDeployment Champions AIR 1.0:Capt(s) Greg Silvernagel AIR 2.0:Debbie Raley AIR 3.0/6.0: Todd Mellon AIR 4.0:Dennis West AIR 5.0:Rick Quade AIR 7.0/11.0: Richard Cracraft AIR 10.0/7.8: Joel Carey/Chris Cummings CIO:Thomas Peeples NAWC:Mark Lambert PEO(A):Glen Perryman PEO(T):Chris Freyser PEO(W):CDR Ed Wolski/Randy Stone JSF:CDR Ken Broomer/TBDBlack Belts& Black BeltCandidates6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 11Candidate Selection& RetentionBarb Ward/AllenHeimFinancial ControlJulie WoodsCommunications& Change MgmtPhil ZalesakProject Mgmt andLSS DeploymentTrackingDick LogueTrainingCoordination &SupportAllen HeimProject RealizationWalt GilletteMBB SupportGeorge GroupConsultantsDeployment Team Activities: Develop recommendations for deployment approach Execute on-going deployment of Lean Six Sigma Develop and manage Lean Six Sigma results objectives, guidelines, and measures Establish and manage Lean Six Sigma management processes Ensure integration between LSS and other NAVAIR productivity efforts Manage internal and external NAVAIR Lean Six Sigma communications

NAVAIR AIRSpeed RolesAIRSpeedCore Team Enables successful deployment / execution Develops and reports metrics Coordinates training Leads change management and internal /external cross-communication ExecutiveLeadership Owns vision, direction,integration, business results Leads changeProjectSponsorsProject ownerImplements solutionsOwns financial resultsPart time as part of jobDevelops Project CharterDeploymentChampionsAll EmployeesProject TeamMembers Provide project-specific support Can be Yellow or Green Belt andincludes Financial Representation Part time on projects Understand vision Apply concepts to theirjob and work areaGreen Belts Participate on Black Beltteams and/or lead projects Part time on projects6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 12 Lead organizationalperformance improvement Prioritize projects Full time assignmentMasterBlack Belts Train Black Belts/Green BeltsCoach Black Belts/Green BeltsLead Complex/Large projectsFull-time positionBlack Belts Execute AIRSpeed projects Train and coach Project Teams Full-time assignment

NAVAIR AIRSpeed Training Plan900Cumulative Trained (#)800Yellow Belts700600500Project Sponsors400XX300Black Belts200100XX0Green BeltsSept Oct Nov Dec Jan Feb Mar April May June July Aug SeptFY056/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 13

AIRSpeed Project Development ProcessSuccess Recipe: Right Project, Right Leader, Right Support and Right ResourcesREALIZATIONAIRSpeed PROJECTINPUTSMATCHING PROJECTSELECTIONBLACK BELTW/BB (or GB) &5 STEP PROJECTDMAIC PROJECTFORMINGTEAMSELECTION PROCESS*TRAINING/EXECUTIONValue StreamMappingProject ID &Selection WorkshopProject SponsorTrainingGrass Roots Ideas/MyIdea Network1PSBB2345TA D/M M/A A I/CYBGBSTYBVCHARTER D M A I C VAPPROVALTOLLGATESREFERENCE: LEAN SIX SIGMA, BY MICHAEL L. GEORGE6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 14

Adopting NAVAIR AIRSpeedWithin the CommandNAE AIRSpeed implements proven methodologies/tools such as Lean, Six-Sigmaand Theory of Constraints (TOC) to enable significant productivity improvementValueAddedStep 1Non- ValueAddedStep 4Step 3Step 2Lean: Eliminates waste &whitespace ensures all steps arenecessary in the Value StreamStep 4 BacklogStep 5 ReworkSix Sigma:Eliminates reworkby controlling processesTheory of Constraints:Eliminates bottlenecksto maximize throughputStep 1 Step 3NAE AIRSpeed provides enabling tools to Define,Measure, Analyze, Improve and Control processes toreduce the cost of doing business and maximize thevalue of delivered products and services.6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 15CustomerCustomerStep 4Customer Value Examples Funding Documents Engineering Change Proposals Statements of Work Publication Updates Cost Estimates Flight Clearances POM Submittals

Top Deployment Challenges Significant Upfront Decision Requirements– 100 Deployment Decisions w/broad socialization required Deployment Management Tracking System Financial Resources– Availability & Accountability Requirements Human Resources Mgmt Cultural Transformation & Change Management Process Standardization & Variation Control Process Data Availability Quantification & Institutionalization of Results6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 16

NAVAIR AIRSpeed AIRSpeed is all about increasing Productivity to reduceour cost of doing business AIRSpeed deploys New Workforce Skill Sets in adedicated and focused manner AIRSpeed has been designed and deployed to embedproven “World Class” concepts into the fabric of theorganization to help catalyze pervasive CulturalTransformation AIRSpeed enables the extended enterprise to reducethe cost of doing business using a “System-ofSystems” approach. AIRSpeed has complete Naval Aviation Enterprise andASN(RD&A) leadership support, direct participationand active involvement.6/16/2016 9:37 AM00A1 KC00A AIRSPEED STRUCTURE 4OCT04.PPT 17

Resources made available to the Navy for recapitalization, and A/C Ready for Tasking at Reduced Cost . 6/16/2016 9:37 AM 00A1 KC . NAVAIR Lean Six Sigma Deployment & Training support - Executive & Project Sponsor Training Waves 1 -11 complete (350 ) - Wave I BB Completed (X22), Waves II & III Started 1 .