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FISC Jacksonville improves FRC support.

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Fleet and Industrial Supply Center Jacksonville (FISCJ) has implemented initiatives designed to save money and reduce material cycle time for Fleet Readiness Center Southeast (FRCSE). The initiatives, completed via two Lean Six Sigma (L6S) Black Belt projects, will reduce the cycle time for procuring material by more than 50 percent and provide the opportunity to save more than $180,000 in fiscal year 2008.

Both projects focus on open purchase material support and requisition processing at FRCSE, with one in the Industrial Plant Maintenance Division (IPMD) and the other examining the manufacturing work order (MWO) process.

"The IPMD is responsible for maintaining facilities, test benches, and equipment for the different shops located throughout FRC Southeast," said LT Robert Reeder, FISCJ L6S Black Belt. "When the IPMD is notified that a repair is needed on one of the machines or test benches, the material requirements are identified and taken to FISC Jacksonville personnel for procurement and issue."

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Most of this equipment is significantly aged, which can cause long lead times to get the required material. "At the start of the project, the average lead time for this material was 16 days," Reeder said.

"The FISC Jacksonville Black Belt's first initiative was to establish a partnership with the Defense Logistics Agency (DLA) and the General Services Administration (GSA) to procure this material using a contract vehicle already in place."

The project team found that some of this material was already available at the GSA Camp Lejuene Store managed by the Grainger Company. The store guaranteed two-day delivery upon receipt of an order and also agreed to stock additional material that FRCSE requires while repairing their equipment.

"This partnership reduced the average lead time by 50 percent to achieve the project goal of eight days, significantly reducing the amount of down time for FRCSE's equipment and test benches while enhancing their ability to support the warfighter," said Ricky Toups, FISCJ L6S Black Belt.

The second project focused on procuring raw stock metals in support of MWOs.

"FRCSE manufacturing shops require various raw stock metals to manufacture aircraft components. Once a requirement has been identified, an artisan must release an MWO for procurement," said Reeder.

According to the lieutenant, the average cycle time to procure and receive these raw stock metals was 33 days, impacting FRCSE's ability to manufacture aircraft components. "The MWO project team identified the need for new requirements contracts, which would guarantee delivery of these raw stock metals within 10 days of an order being placed," he said.

A new requirements contract was awarded for sheet metal, bar stock, tubing, and extrusion, and now procurements are being processed through DoD EMall to reduce FISCJ's internal processing time. "This initiative lowered the average cycle time to 20 days, improving the overall cycle time by 40 percent," said Reeder. "The significant savings do not account for the additional workload that can now be processed based on these savings."

The final initiative completed for both projects was new safety stock calculations for the different stockrooms supporting the IPMD and MWOs. "The safety stock calculations had not been updated in two years, causing many stock-outs and keeping safety stock levels for obsolete material," said Reeder.

An industry standard formula for safety stock was applied to both stockrooms supporting IPMD and MWOs, taking into account material lead time and material demand. Reeder said the new safety stock levels are already improving the availability of required material for FRCSE.

By LT Robert Reeder, SC, USN, and Ricky Toups, FISCJ Lean Six Sigma Black Belts
COPYRIGHT 2007 U.S. Department of the Navy, Supply Systems Command
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Around NAVSUP
Author:Reeder, Robert; Toups, Ricky
Publication:Navy Supply Corps Newsletter
Date:Jul 1, 2007
Words:591
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