Case Studies

Readiness Task Force

Challenge:

The Navy's supply of operational ships had diminished, prompting a need to identify steps to bring them into a state of readiness. Herren was requested to design a process with specific recommendations for the ships to reach optimal reliability, maintainability, and mission availability.

Approach:

Herren assessed all elements of readiness using an integrated five-phase systems analysis and process engineering methodology. This involved evaluating ship system weaknesses and needs, analyzing the performance gap between present operations and desired objectives, and determining solutions with a strategy for implementation and control.

Results:

Herren's task force created and delivered a Dashboard Readiness Model—a set of comprehensive, prioritized recommendations with necessary requirements to ensure system readiness. This repeatable model, which has since been presented at multiple industry conferences, is still being employed and has been extended to analyze other ship systems.

Program Cost Estimating

Challenge:

In order to ensure support from program resource sponsors, Navy Enterprise Resource Planning (ERP) needed to increase its budget accuracy and overall credibility. ERP turned to Herren to generate cost estimates for the life cycles of its Automated Information Systems (AIS), providing the critical financial details and transparency it required.

Approach:

Herren estimated the individual cost elements using input from subject matter experts, cost estimating relationships, and relevant historical data. We developed expected cost distributions and, where data was lacking, identified the minimum, most likely, and maximum values for program costs. We then used a mathematic simulation to predict a risk-adjusted cost estimate.

Results:

The cost estimates we provided to Navy ERP resulted in better decision-making and budget approval from resource sponsors for all major acquisition milestones.

Shipbuilding and Conversion, Navy (SCN) Drawdown

Challenge:

The Navy faced debilitating budget cuts to new ship construction programs, which jeopardized its ability to sustain maintenance operations.

Approach:

Herren began by identifying the core functions required to successfully sustain the fleet. We constructed a model forecasting future budgetary needs, taking into account requirements, personnel, costs, and schedules. To assess the impact of the budget cuts, we conducted a gap analysis, revealing the critical elements of ship maintenance operations.

Results:

The Navy's operation and maintenance budget increased by $300M in order to sustain maintenance operations and cover additional shortfalls.

DDG Modernization Report to Congress

Challenge:

As the Navy was updating its DDG fleet to new standards, Congress sought a comparison—in the form of an Alternative of Analysis (AoA)—between the Navy's Program of Record (POR) and a congressionally proposed pilot program. Under the POR plan, the process of DDG Modernization would occur in the various homeports of the ships, while the pilot program would conduct the process in the shipyards in which the ships were built—Bath Iron Works in Bath, Maine and Northup Grumman in Pascagoula, Mississippi.

Approach:

Herren performed the AoA requested by Congress in three phases. First, we defined the objectives of the Chief of Naval Operations for the modernization process. We then performed a side-by-side cost analysis of both alternatives. Finally, we assessed what the impact would be to industrial base sources, competition, affordability, risk, and quality of life of the sailor.

Results:

Our report demonstrated that while both alternatives were feasible, the POR option would be less costly, pose less risk, and have less negative impact on the sailor's quality of life. Herren recommended that Congress support and fully fund the POR. Congress approved the recommendation, and the DDG Modernization program is being executed as proposed in fiscal year 2009.

Logistics and Sparing Modeling

Challenge:

In the process of updating ship systems to meet modernization standards, the Navy was struggling to support ships using older systems—and get the most value out of them—before the transition to the new systems.

Approach:

Herren developed a model to predict which spare parts, and how many, would be required over the remaining expected service life of the systems. We took into account existing spare parts, then identified and collected older parts from the ships already transitioned to the new system that could be reused on the ships awaiting transition. Our mathematical model was able to predict which parts would fail and need replacement during their remaining expected service life. It also determined the amount of a particular part that would be needed.

Results:

We established a warehouse to store recovered parts and created a testing program to verify the working condition of the parts. Critical but non-working parts were restored to issue-ready condition using components from similar parts. This solution not only enabled the obsolete systems to continue in use through their remaining service lives, but also cut expenses by removing the cost of redesigning or reengineering used parts.

Resource Planning

Challenge:

Poorly defined program requirements for Navy Enterprise Resource Planning (ERP) led to a number of misguided assumptions in the development of annual resource requirements planning.

Approach:

Herren began by documenting and analyzing steps in the ERP planning process, as well as tasks and organizational structure, then met with technical teams to develop detailed work breakdowns. Our team used staffing and workload data to help identify the budget controls necessary to meet program objectives. We built consensus among technical leads and the program manager with a flexible trade-off model capturing all program requirements. Navy ERP used our recommendations to create informed near-term spending plans within budgetary constraints.

Results:

Using this detailed trade-off tool created stronger integration between technical requirements, planning, budgeting, and contracts within Navy ERP. The FY11 spending plan convinced Navy decision-makers to allocate more funding to the program, based on the delivery of crucial cost and schedule details.

Naval Warfare Systems Certification Task Force

Challenge:

Naval Sea Systems Command (NAVSEA) discovered a number of challenging interoperability and functionality deficiencies in the final stage of its modernization process. In order to meet fleet standards and mission requirements for warfare systems, these issues had to be thoroughly evaluated for remediation or elimination.

Approach:

Herren engaged in a comprehensive review of the modernization process, focusing on the root causes of inefficiencies. We conducted a two-and-a-half week session with five pillar teams of NAVSEA through in-depth brainstorms, developing practical solutions to increase interoperability, ensure proper functionality, and facilitate system certification.

Results:

Using solutions provided by Herren, NAVSEA improved and updated its Combat System Certification Policy and Warfare Systems Certification Policy.

Energy Decision Framework

Challenge:

Government agencies face increasingly complex energy efficiency standards and lack systematic methods for integrating necessary technologies. Herren was charged with creating a methodology to effectively and efficiently develop, select, and implement energy-efficiency enabling technologies.

Approach:

The Herren team used a modified Six Sigma process to build a technology assessment framework, a tailored methodology to determine suitable energy-efficiency technologies for development and implementation. This process involved examining technologies for inefficiencies and identifying appropriate courses of action within budgetary confines.

Results:

Both NAVSEA and Task Force Energy are currently applying Herren's methodology to determine which technologies fit within their budgets and meet objectives.

Automated Scheduling Tool

Challenge:

Navy Enterprise Resource Planning (ERP) required more efficient and accessible procedures for scheduling, reporting, and risk management.

Approach:

Herren designed a set of automated scheduling tools that significantly reduced the time to generate schedule status reports, including a macro that automatically populated data from Microsoft Project into PowerPoint. Our consultants worked with project leads on these improved scheduling methodologies to enable seamless procedures and ensure best practices.

Results:

Herren's tools allowed Navy ERP to generate detailed schedule analyses and status briefs for executives after only three weeks from project start. Our solutions created a system-wide culture of accountability with greater access to and transparency of deadlines and responsibilities.