Theater Logistics Support Center-Europe repairs and refurbishes Army equipment that was used in the Middle East. In order to make floor space and workers available for a new refurbishment line for a large tactical truck, TLSC-E had to improve an existing line that was refurbishing engines. The Center used LSS to reduce the floor space of the engine line and the number of workers it needed. These improvements made room for the new truck line and provided experienced workers to man it. Operating costs for the engine line were also reduced by 25 percent.
Problem
Theater Logistics Support Command – Europe (TLSC-E) provides maintenance support facilities to Army Materiel Command (AMC) in Europe. AMC is responsible for the logistics, equipment and maintenance needs of the Army; and in particular, for repairing and refurbishing equipment used in the Middle East. With the forward operating location provided by TLSC-E (as compared to a U.S. location) shipping times and costs associated with moving equipment needing repair are substantially reduced.
The TLSC-E facility is a long-time, established facility that needed updating to provide repair floor space for a new program involving refurbishment of a large tactical truck coming back from Iraq. The problem was that the floor space needed for the new truck program was already in use for an existing engine refurbishment program. TLSC-E leadership initially made the decision to move the engine program to a smaller location in another building, but this decision raised several concerns. As a result, discussions began regarding putting the truck program in a different facility. Doing so, however, would increase costs.
A third option was finally selected. TLSC-E decided to improve the engine refurbishment line and process in order to reduce its floor space footprint and the number of personnel needed to run it. It was believed that this solution would not only make room for the new truck program, but would also provide experienced personnel for that program without the need for new hiring actions.
Approach
A Lean Six Sigma (LSS) Green Belt was assigned to this project and was supported by a team of maintenance personnel. Executive sponsorship for the project was provided by the TLSC-E facility chief. This project followed the proven LSS Define, Measure, Analyze, Improve, Control (DMAIC) procedure. First, the team mapped the engine process and captured the flow of materials and the movement of personnel in order to identify bottleneck steps. Then, the team analyzed the process data to identify non-value added steps and areas to eliminate waste. In addition to identification of these steps, the team conducted a customer demand rate analysis to define required process output quantities.
Next, the team used the findings of the process diagram, non-value added analysis, and customer demand rate analysis to create a new process that combined steps and reduced manpower requirements. The team used a process flow analysis to reduce motion in the new process to further reduce cycle time. Finally, the team moved to implement the new, improved engine refurbishment process. They documented the new process in operating instructions and trained the operators. The team conducted a pilot run to observe the new process and after no quality or production issues were detected, placed the new process in control.
Results
The improved engine refurbishment process opened floor space in the facility for the new truck program and reduced costs by 25% for a $200,000 annual savings. The new engine process also opened about $150,000 of floor space, and the new truck refurbishment process line was subsequently established there.