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FISC Jacksonville L6S Black Belt project improves SIT.

Fleet and Industrial Supply Center Jacksonville (FISCJ) recently completed another major Lean Six Sigma (L6S) Black Belt project.

Aimed at dramatically improving processing time, saving money, and ultimately reducing SIT write-offs for the Fleet Readiness Center Southeast (FRCSE), the multifaceted project ended in November.

Although complete, the project's performance will now be monitored for three to six months to ensure that the implemented changes remain in place and continue to be effective at improving performance.

While the project's end results are in and of themselves noteworthy, the cooperation and teamwork employed during the project set a new standard for FISCJ's L6S program.

FISCJ recruited and utilized SIT team members from the Naval Inventory Control Point Philadelphia (NAVICP), FRCSE, and the Defense Logistics Agency (DLA). The anticipated results of their efforts will reduce SIT losses for FRCSE by 70 percent and position the Navy to avoid an estimated $3.4 million in associated costs in FY 08.

The team's focus centered around the SIT program's receipt process. Upon receipt of a NAVICP-issued asset, FRCSE is responsible for its timely repair and/or modification. The assets in this process (i.e., en route to and from the DLA storage facility and the repair site, in this case FRCSE) are referred to as SIT.

Management of SIT assets are accomplished in the Commercial Asset Visibility Organic Repairs Module (CAV ORM) tracking system. This system is where all transactions are made when opening and closing the SIT loop while the items are cycling to and from the repair facility. Any assets lost during transit or while in the repair process have the potential to be written-off.

FISCJ's project developed a standardized process to aid in reducing the SIT write-offs plaguing FRCSE's components program.

The successful implementation of this project will enhance Fleet readiness, increase asset visibility, and foster an improved multi-agency communications chain, as well as realizing potentially millions in cost avoidance.

In FY 06, NAVICP issued 24,304 assets to FRCSE for repair/ modification. With NAVICP intervention, researching and resolving frustrated SIT, less than one quarter of a percent of these assets (33) were written off during that fiscal year. For most processes, these numbers would fall within acceptable parameters, however, since these assets are high dollar mission critical repairables, these numbers garner a lot of attention and represent millions of dollars. For this reason, FISCJ launched its L6S project in early FY 07.

Through the project's investigation and process review, the team identified four main arteries in which assets filtered into the FRC for the repair/modification process.

After analyzing the different flows, the multi-agency team determined that the unavailability of Proof of Shipment (POS) signatures on the shipping documents and lack of posted receipt actions to the tracking system (CAV ORM) proved to be the root causes for approximately 70 percent of the SIT write-offs.

The team's final solution mirrored the business methodologies currently being utilized by FRCSE to process their F and E condition assets (F/E) assets. To accomplish this, NAVICP assigned a unique Unit Identification Code (UIC)/Resource Identification Code (RIC) to process customer service work (i.e., asset repair work) to FRCSE. This clearly dictated the flow, closed the SIT loop, provided continual asset visibility, and standardized the induction of assets into the FRCSE's repair process.

By mirroring the F/E process, the team was able to remove an unneeded layer of administration from the receipt process. Additionally, this solution enables the direct shipment of assets from DLA to the repair facility, and thus aiding in the reduction of the asset's critical cycle time.

In the end, the SIT team ultimately achieved success by utilizing L6S methodologies and applying solid analytical skills. However, teamwork and cooperation served as the imperative force multipliers that led to the effective development and implementation of the solutions that resulted in a dramatically improved SIT program enhancing Fleet readiness.

Rick Toups, L6S Black Belt, FISC Jacksonville

Rick Toups was a Contract Surveillance Representative with FISC Jacksonville prior to certification as a L6S Black Belt.
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Author:Toups, Rick
Publication:Navy Supply Corps Newsletter
Date:Mar 1, 2008
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