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Table of Contents


National Performance Review

Report on
Reinventing the Department of Defense
September 1996

Department of the Navy



  • Defense Printing Service (DPS). The Defense Printing Service (DPS) is responsible for duplicating, printing, and document automation requirements for the Department of Defense which encompasses document conversion, electronic storage, output and distribution of hard-copy and digital information. DPS successfully implemented an automated process for Navy training material. This process involved the conversion of classified Advancement Manuals from hard-copy to digital format. These manuals were formally stocked at several Navy Inventory Control Points. Once converted to digital format, the manuals were transmitted to a DPS "on-demand" site in Pensacola for printing. Based on the success of this initiative, warehouse support for classified Advancement Manuals was terminated this past summer. Processing time was reduced from approximately 3 weeks to 2-3 days, manpower requirements were reduced, and more warehouse space was made available. The first phase of implementation involved 50 line items (approximately 100K books); the second phase of implementation includes the balance of 1,600 additional line items. Complete output-on-demand service at several DPS sites began in January 1996.

  • Navy Public Work Center (NPWC) Pensacola, Florida. NPWC Pensacola reengineered its Material Delivery Process. The old process for issuing material caused their mechanics to waste time by waiting in long lines behind locked counters with signs that read "DO NOT ENTER." The process sometimes required several attempts by the counter clerk to find the "right material" needed by the mechanic. This resulted in delayed customer jobs and higher labor costs. In the new process, the reinvented process, it took only six weeks for the mechanics and the material department to form a team, buy new shelving and bins, tear down the locked doors, build "check out counters," buy "shopping carts" and bar code wands, put new bar code labels on the bins, and open their "STOP and SHOP." The mechanics now walk freely into an open, clean, and beautifully arranged Stop and Shop; exchange their ID cards for a bar code wand; find and scan material or a suitable substitute; and quickly check out at the counter. If an item is not available or their customer has questions, there is a customer service representative conveniently located in the Stop and Shop. The customer service representative buys the material immediately and ensures delivery to the mechanic. The process is automated, and the mechanic receives a receipt immediately. The issues are automatically sent through their accounting and inventory system and monthly sales reports are generated that show all sales. NPWC Pensacola also provide this service to their external customers who have "self-service" initiatives underway. The new process has resulted in 120 percent improvement in overall customer satisfaction.

  • Naval Surface Warfare Center, Carderock Division (NSWCCD). The Carderock Division of the Naval Surface Warfare Center provides research and development, testing and evaluation (RDT&E); fleet support; and in-service engineering for surface and underwater sea vehicles; hull mechanical and electrical (HM&E) systems and propulsors; logistics R&D; and supports the maritime industry. NSWCCD is the leading Navy R&D laboratory for logistics support technology and develops and maintains integrated logistic support (ILS) products for HM&E equipment and systems in the Fleet. To improve its processes and better serve its customers, the Division pursued certification under ISO 9001 in five prototype areas: purchasing, full-scale trails, calibration, vibration, and submarine sail systems. This effort reinvented the quality management and assurance process of the Division based on the 20 elements of ISO 9001, a set of international standards for quality management and quality assurance. The management process of these five areas was certified by the American Bureau of Shipping as having met the external auditing criteria of the International Standards Organization. The management system is set up at the Division level and reviewed at the Executive Steering Board which consists of the Commander and Director of the Division, the Division's ISO Program Manager and the executive managers of those five prototype organizations. The system is implemented at the prototype level. The Division ISO committee implements the Division Management System as it relates to the prototypes and provides a structured forum to discuss and resolve issues and initiatives that impact inter/intra functional lines.

  • Streamlined Acquisition. The Navy recently contracted for a replacement of the ancient and trouble plagued P-250 pump, ending years of "customer complaints" from the fleet. the S&S RL was a driving force behind this streamlined acquisition, starting in 1992 when the S&S RL purchased 8 NDI/COTS pumps from industry to be assessed at the Fleet NDI office in Norfolk, VA. Between 1992 and 1994, the NDI/COTS pumps were thoroughly tested in Norfolk and at the Naval Research Laboratory's Technology Center for Safety and Survivability (an S&S "creation" in concert with ONR). As a result, a NDI/COTS pump was selected and under contract in less than three years - reducing the "normal" time of 5-8 years, and canceling a multimillion dollar "development program" to design a replacement from scratch. In addition to saving 3-5 years developing the replacement, the total emplacement costs have been reduced by approximately $25 million by using an NDI/COTS solution.

  • Self-contained Breathing Apparatus (SCBA). The ancient Oxygen Breathing Apparatus (OBA) has performed well over the past 50 years, providing essential breathing oxygen to firefighters in the Navy. Recognizing that NDI/COTS technology had long surpassed the OBA technology, the S&S RL procured a number of available COTS SCBAs for testing in the fleet. The results were so outstanding that the Navy was able to cancel its R&D effort to develop a replacement for the OBA, focusing instead on the COTS solution. While several million dollars were saved by canceling the R&D program, additional savings were achieved from the competition available in the SCBA market. As a result, customers will soon be receiving replacements for the venerable OBA, and several million dollars will be saved and reinvested in other safety and survivability programs.

  • Health Usage Monitoring System (HUMS). The HUMS demonstration on a Navy helicopter in San Diego is totally unique and creative in that it resulted from a CRADA (Cooperative Research and Development Agreement) struck between AIRPAC, the Fleet (HSL-41) and two manufacturers of HUMS technologies. The S&S RL was a "facilitator" in this process, and only takes credit for fighting off "business as usual bureaucrats" who would have stopped this unique demonstration of state of the art technology.

    Beginning with "an idea" in August 1994, a manufacturer sought a means to demonstrate its technology to the Navy, and sought the assistance of the S&S RL, which created a plan to obtain fleet user assistance and approval for a demonstration. By February 1995, 5 months later, the CRADA had been approved, the installation was accomplished, and flight hours were initiated, using already funded fleet flying hours to gain experience in use of a HUMS on Navy SH-60B helicopters. In less than a year, over 800 hours of flight time produced significant information that may lead to millions in savings over the life of the helicopter, identification of several safety issues that can be resolved far earlier than previously, and clues to human performance issues that had never before been identified. While long term financial impact cannot be immediately be determined, it is likely that at least 30% of the routine maintenance costs for that aircraft can be avoided. Over the life cycle of the aircraft, that amounts to million of dollars.

    Both time and money have been saved. Based on the early success of this demonstration, it should be possible to cancel a planned R&D effort for several millions of dollars that would produce little if any gain for the money. A key element of this demonstration was the industry partners' donation of all the costs involved. There was no cost to the Navy.

  • Investment Strategy. The S&S office has analyzed the losses of assets (dollars) and believes in operational activity (training for combat) and produced a critical briefing that focuses on the imbalance between investment of resources and actual loss experience. The briefing has been presented to several Navy and Marine Corps leaders, with very positive response. Fundamentally, the loss experience has been in aviation - both life and equipment - and funding for "fixes" has been evenly divided between the various communities, without regard to actual loss experience.

    The "Investment Strategy" pointed out the disparity between losses and investment. The leadership has only recently begun to understand the underlying strategy that would focus fix funding on areas with greatest potential for gain, or return on investment. At the present time, in the Navy and Marine Corps, the greatest potential for payback is in aviation.

    Three critical flight safety systems were identified and analyzed for their potential payback to the fleet users. The three systems were (1) flight recorders for all military aircraft, (2) ground proximity warning systems (enhanced from civil/commercial aviation), and (3) HUMS for helicopters.

    In May 1995, the CNO approved retrofit of Flight Data Recorders in all F/A-18s and all AV-8Bs. The S&S RL has been instrumental in moving procurement of the FDRs forwarded by several years, through a demonstration and proof of concept in 1994 and 1995, and use of commercial practices in contracting for the F/A-18 retrofit. Savings of $55 million - reducing the original estimate from $85 million to less than $30 million - were realized immediately from use of normal business practice in obtaining initial estimates.

    Again, the "user" has been put in first place. The fleet users fully recognized the need for FDRs long ago. Only through the creative tactics of the S&S RL has the goal been approved at the CNO level and funding been identified to obtain these critical systems.

  • Aircraft Carrier Anti-submarine Warfare Module Team. The Naval Undersea Warfare Center Division, Keyport, Washington, reinvented the process of shipboard Anti-submarine Warfare (ASW) Combat Systems. The outcome of this process is to provide state-of-the-art ASW combat capabilities to sailors in aircraft carrier battlegroups. Over the past few years, the Aircraft Carrier Anti-submarine Warfare Module (CV-ASWM) team has developed a new ASW combat system based on evolutionary acquisition and commericail off-the-shelf and nondevelopmental item technology that will rleplace existing military standard hardware and software with state-of-the-art systems. The CV-ASWM system integrates ASW and intelligence information for the entire battle group (consisting of an aicraft carrier, several surface ships, and Navy submarines) to counter threats posed by foreign submarines. Through the use of innovative engineering, procurement, and installation processes this system has been developed nad fielded with a very small number of people at a very low cost. Savings are expected to be approximately $60 million over the next 10 years due to reductions in life cycle costs.