U.S. Coast Guard Reports $10 Million in Value from NC State Projects

The United States Coast Guard Aviation Logistics Center (ALC) in Elizabeth City provides aviation logistics that enable Coast Guard execution of search and rescue missions. One way to be sure those assets are most accessible for the organization’s mission is by improved efficiency, facility-wide; one of the tools they use, lean.

The ALC is victorious in the feat of sustaining results based on the implementation of lean manufacturing with the help of the North Carolina State University Industrial Extension Service (IES). They have sustained metrics within their HH-60 helicopter division including output while maintaining a reduction in turnaround time and labor hours, which ask any lean expert, is the true test of success.

The HH-65 helicopter product line has also reaped success within their sheet metal and aircraft disassembly phases. The HU-25, a fixed wing line, has also experienced significant improvements in aircraft disassembly and the HC-130 turboprop saw a 30 percent reduction in the labor required to complete non-destructive inspections, a quality assurance measure.

But divisions that may not ‘turn a wrench’ also stood to benefit from removing waste from their processes. Continuous improvement opportunities exist in every process within business, especially the office environment.

With help from IES, the ALC recently began applying lean to other processes, with marked success to the tune of $2.3 million in economic value. This month ALC will be recognized in the 1B4NC campaign as a major contributor to the IES promise: To create $1 billion in economic value to the state of North Carolina in five years (2006 – 2010). USCG-ALC’s total economic value for projects from 2005 – present is more than $10 million.

The drawing board

“We had been so focused on the production component of our business, yet the office is where it all begins,” said Commanding Officer, Capt. Edward Gibbons.

The Engineering Services Division (ESD) is part of the business side of the ALC and helps manage the publications and technical drawings for the fleet. Engineering drafters produce drawings and modifications for manuals and parts for the fleet.

Engineering drafters often are required to apply reverse engineering techniques to ascertain form, fit and function in order to produce a prototype. After applying a value stream mapping exercise, they discovered a major inhibitor to progress existed in the approval process.

Lean goals for the division were to decrease wait times, re-work and excessive transport of physical documentation. They also hoped to increase consistency and standardize the process.

David Yates, IES lean specialist, started working with ESD in July when their key metric, submitting drawings for final approval, averaged 12 per month.

To be lean, one must reduce or eliminate non-value-added work, or waste. A key initiative to decrease waste in ESD was to transform the antiquated paper signature process to an electronic signature form. They can now track the drawing on its journey. And now if a drawing is rejected, the individual must include the reasons for doing so, which has decreased rejections substantially.

Post-lean, the division has witnessed their drawing submissions increase five-fold. Their success also resulted in $390,000 in annual cost avoidance, based primarily on a reduction in labor hours.

Goldie Forbes, graphics section leader, is grateful for the change. “There’s more initiative to get it right since we’re measured on performance and now have visible quality assurance checks,” said Forbes. “We needed David to come a lot sooner.”

Top level buy-in

Capt. Gibbons has encountered various quality programs throughout his military career and recalled the excitement over total quality management (TQM) at the time he graduated from flight school. The difference he said is, “lean is the first program that puts it in the hands of those that can change it.”

The organization is in the process of reorganizing to a business model that will include the addition of boats to their systems. Capt. Gibbons noted that this transformation puts a great demand on the workforce of more than 1,400 civilians, military personnel and contractors.

“We’ve solved some important problems,” said Gibbons. “But the best part is that our folks now know they can influence change in their work areas, and that increases their sense of ownership.”

Teach a man to fish

The mission of IES is to partner with North Carolina industry as a catalyst for the transfer of knowledge and technology in support of economic development. The role is one of mentor and the outcome is to provide the tools so industry may continually improve long after IES leaves the premises.

A prime example is the occurrence of ‘rogue’ lean events at the ALC. These events arise from the infectious enthusiasm and results that stem from lean thinking. In this case, the Information Systems Division (ISD) event was a spin-off from a formal lean event. Feeling the momentum, ISD, led by Marty Spry, decided to spearhead their own lean initiative to better serve their internal customers.

Again with the blessing of another top-level leader, the team was given the permission to ‘make things happen’ by Lt. Comdr. Rob Taylor. As the ISD mapped their system, they found the software change request process could easily be manipulated and therefore compromised. Through lean principles, they were able to align the system with the priorities and the needs of their customers. According to team member, Jim McKell, software change requests went from a 120-day response, to a 30- to 60-day response. From this single rogue event, three additional events took shape to address key opportunities for improvement.

Wingspan

As the sole industrial complex for U.S. Coast Guard aviation and the only complex that provides depot level maintenance, supply, engineering, and information services within one facility, the lack of space is of the utmost concern.

The more space they can free up, the more products they can take on. ALC is being considered as the depot maintenance center for the new Casa HC-144, an aircraft used for medium range surveillance missions. The additional aircraft would mean more jobs for the center which is the leading employer in northeastern North Carolina.

Stuart Matze, aircraft examiner and lean member explained how the new output goal in the HH-65 helicopter division is now 23; 3 more than previous output.

Again, Yates uses lean philosophies to address the root of the problem. His objective is to eliminate unused equipment and materials to improve flow. This will free up much needed space for additional work groups and potential new product lines. Changes such as these involve asking people to step from their comfort zones. It also requires persistence on the part of the lean team, but Matze is determined to stay the course and Yates offers his vote of confidence for extra measure. After all, Yates’ goal is to make a difference for the clients he serves.

Mission accomplished

About the USCG - The USCG is a military branch of the United States involved in maritime law, mariner assistance, and search and rescue, among other duties of coast guards elsewhere. ALC's physical plant includes two production hangars, a stripping hangar, painting hangar, three-acre warehouse, engine shop, gear box shop, machine shop, and avionics repair facility. ALC also includes a business side that is responsible for setting Coast Guard aeronautical maintenance policy and direction; defining, refining, and fielding all proposed aircraft changes; managing 8,000 publications and 450,000 technical drawings; acting as aviation inventory control point, and providing a myriad of IT services.