ARDEC Journey to Excellence
COL Russell Hrdy
Deputy Director
973-724-7000
Russell.hrdy@us.army.mil
ARDEC
• US Army Armament Research,
Development and Engineering Center
• Provide 90% of Army’s Suite of
Armaments
• No Single Counterpart in the World
• Provide Battlefield Supremacy for Our
Warfighters
FIRST FEDERAL & DOD RECIPIENT
OF THE MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
Vision – “Innovative Armaments for Today and
Tomorrow”
2007 Malcolm Baldrige
Quality Award Recipient
ARDEC’s Performance
Excellence Journey
Reduced Cost
Increased Quality
Faster Cycle Times
Increased Innovation
Satisfied Customers
Knowledge
Base
Creation
Presidential
Award for
Quality
Improvement
1999
System
Owners
Handbooks
Legend:
Evolving Excellence
ARDEC “Triple Crown”
Events
Awards
Start of Formal
Benchmarking
Vice President’s
NPR “Hammer”
Award
Process Action Teams
and
Quality Management
Boards Established
President’s Council
for Management
Improvement
Award
1991
Middle Management
Work Groups
Power Down
Quality
Circles
PM
Teams
X
X
PEG II
1984 1987
1988
1989
1990
Adopted,
Natural Work Groups
1991
1992
1993
Presidential
Award
for
Quality
1996
Integrated
Product Teams
QIP Nomination
Middle Managers
System Approach Trained
PEG III
TQM Executive
Council Formed
Vision Established
PEG V
NJ Quality
Achievement
Award
1998, 2004
R&D Center
of
Excellence
Award
R&D
Organization
of the Year
1986&1995
PEG IV
X
X
NJ Quality
Partnership
Award
1996
CSA
ACOE
Award
96,99,00, 02
First Use of Six
Sigma, CMMI
& ISO
Large R&D
Organization
of the Year
86,95,99,00,04,06
89,90,91,96,97
Army
Performance
Excellence
Award
Jan. 2006
US Army’s
Greatest
Invention
Awards
2002-07
GPRA Driven
Strategic & Business
Planning
CINC
Community of
Excellence
Awards
96&00 Baldrige Category
Quality
Improvement
Prototype
Award
1995
Champions
Formal Evaluation
Of Baldrige Feedback
On Opportunities
for Improvement
& Corrective Actions
PEG = Productivity Enhancement Group
1994
1995 1996 1997 1998 1999 2000 2002 2004 2007
Enterprise Excellence Integrates Best Practices
FY01 First
ISO
Certifications
FY01 First
CMMI
Certifications
FY03 Corp Commitment CMMI, ISO, SE
FY01 Corporate
Commitment to
Six Sigma
Continuous Improvement
FY03 Adoption of Balanced Scorecard
FY00 Six Sigma, CMMI, ISO Starts
FY95 Baldrige Management Framework
Started in
Areas with
Biggest
Business
Benefit
Cascade of Strategies
Vision / Mission
ARDEC STRATEGIC MANAGEMENT SYSTEM
THE ARDEC VISION: Innovative Armaments Solutions for Today and Tomorrow
FINANCIAL MANAGEMENT(FM) STRATEGIC MANAGEMENT SYSTEM
Ensure Exceptional
Level
Innovative
of Service for all
WAYS/INITIATIVES
ASIC Vision Ensure ARDEC’s success by rapidly delivering superior armament solutions to our
customers.
ENDS
Effective Personnel
Allocation
MEANS
INNOVATION
business
Process Focus
People (Learning, Growth,
Communication) Focus
MEANS
Customer Focus
WAYS/INITIATIVES
WAYS
Develop & Market FM
ARDEC’s internal budget
Challenging
Develop and Enhance process and Provide
Customer Support and
identify
Opportunities and
Engineering
Services
better
measures
for Leadership
People, Products, Processes, Facilities/Equipment,
Communication
Effective
Capabilities
mgmt of ARDECResources
Technology, Innovative Culture, Processes,
Communication,
FM Business Focus
(Resource Management)
ENDS
WAYS /
INITIATIVES
WAYS/INITIATIVES
Ends
AETC Vision : World Class Engineering Competencies Providing Innovative Armaments Solutions
ENDS
Ways
VISION: Business focused and process driven organization integrated with customers
WAYS
MEANS
MEANS
DEVELOPMENT, PRODUCTION, FIELD SUPPORT AND DEMILITARIZATION OF AMMUNITION, WEAPONS, FIRE CONTROL, AND ASSOCIATED ITEMS
Organization Focused on
Deliver Innovative
Satisfied Customers
Effective Use and
MISSION: Provide government financial services to Picatinny Arsenal customers for armament technology and weapon programs.
Exceptional
Facilities,
engineering and armamentAllocation
technology
through integrated
Armaments SolutionsAETC Mission: Provide customers with life-cycle Continuous
ofsolutions
Resources
Improvement
Continuous Improvement
Knowledge
and state of the art
facilities Customer
Recognized Leader in - Seek competencies
Exceptional
active
through Innovative
Competent,
Diverse
Management
Systems
Services
Satisfaction
Exceptional
Customer
Continuous
Business
- DisciplinedQuality
approach
- Attract,
and
Leaderto
in Financial
andengage
Workforce
involvement
of Processes
Workforce
&
Satisfaction - Provide effective
Improvement through
Services
rapidly developManagement
and
retain a world-class,
Continuous
Optimized Human/
customers
on projects Culture ofLeadership
World Class
Preferred
Provider of
Effective Steward of
Innovative Practices
Improvement
Information
Capital
transition technologies Engineering Expertise
flexible and
agile
Workforce
Resources
Ensure Exceptional Level
Attract/Train/Retain an
Develop Core
workforce
- Ensure exceptional
Meet and effectively
Improve
Internal
of Service
for &
all
Agile, Flexible and
Excel
at Customer- Embrace,
employ,
Realize
Enterprise
Attract, Engage, and
Competency Processes
Business
Processes
customers
Diverse
Workforce
manage required
-Ensure ASIC
personnel
through:
level of serviceSatisfaction
for all
Excellence
Retain multi-skilled and
improve ASIC
owned through use
in FM functions:
timeliness, fiscal
of quality tools: Six - Continuously
are recognizedcapability
leaders in
improve
diverse
workforce
customers
processes
using
CMMI
Sigma, CMMI Policy,facilities and equipment
teaming, mgmt
their respective--Appropriation Mgmt (P&B) Institutediscipline,
Lean/Six Sigma
Rapidly develop
new
-- PPBES
(O&M)
and Baldrige
Form
External
asinvolvement,
the QE&SA and quality
Improve Facilities to
competencies
Partnerships
Leverage
approaches to supportTrain the Workforce in
Ensure
Exceptional
Implement
Strategic
--Cost to
Analysis
(CA), -and
Research
and Develop
services
- Implement
Lean Six
Continuous Improvement
Achieve Excellence Effectively Execute
Best Practices Level of Customer
RelevantOversee
Customer Needs Strategically
mentoring,
Innovative Armaments
- Effectively
plan and
--Accounting (MAD) Communication
Plan
Methodology
Financial Resources
Sigma Best Practices
Implement BestCompetencies growth, and development
Satisfaction
Technologies
-Provide superior
Practices for Planning,execute financial
of FM staff and others
Customer Partnerships
&
Programming,
Proactively Obtain
Logistics products
and
resources
Build
FM Capability
in
Deploy
Design
for
Populate Knowledge
a Motivated,
Communication
ForumsRecruit
Rapidly
Transition
Provide Life-Cycle
Budgeting,
and
for
Customer
Feedback
Systems with defined Develop and Maintain
CostSigma
Analysis
functions
Formalize
the Quality
services Lean/Six
Highly Skilled Diverse
State of the Art
Engineering
proactive QE&SA Technology
Execution (PPBES)
processes/
and services
Management System
Capture, communicate
Workforce
Facilities
- Ensure
project
staffing
Management
Procedures
Solutions
Expertise
and optimize our use of
Improve integration ofIAW ARDEC
priorities capital
FM information
ENDS /
STRAEGIES
MEANS
Level 1 ARDEC
Centers
ARDECQESA
STRATEGIC
MANAGEMENT
SYSTEM
ARDEC-Deliver
ASIC Mission Statement
superior
ARDEC products
and services to warfighters
and
THE
QE&SA VISION:
Establish
the QE&SA application
Directorate as a of
Recognized
Army and DoD
Leader in Quality and
System Assurance
customers
sooner
through
the rigorous
best practices
in management,
systems
FINANCIAL
MANAGEMENT(FM) STRATEGIC MANAGEMENT SYSTEM
engineering
andMISSION
logistics
The QE&SA
IS TO EXECUTE AND MANAGE AN INTEGRATED LIFE CYCLE QUALITY AND SYSTEM ASSURANCE PROGRAM REQUIRED FOR THE RESEARCH,
MEANS
People, Facilities, Infrastructure
Honest Broker Achieving Financial Excellence
People, Products, Processes, Facilities/Equipment, Communication
INNOVATION
MEANS
MEANS
Knowledge Sharing
INNOVATION
ENDS /
STRATEGIES
Enhance Knowledge
Portfolio
People, Products, Processes, Facilities/Equipment, Communication
ENDS
Develop Process to
Technology, Innovative Culture, Processes,
Resources
Support Communication,
ARDEC
Management &
WAYS /
INITIATIVES
WAYS
Maintain Key
Stakeholder
Relationships
WAYS
Provide Challenging
Effective Personnel
Opportunities and
Promote Proactive
Allocation
- Ensure project staffing
Capabilities Standardize Best-in-Effective Leadership
Teamwork and a
Provide Mission
Class Processes that
IAW ARDEC
Customer
Focused priorities
Security for ARDEC
Maximize Value
Mindset
Develop and Enhance
MEANS
MEANS
Highly Skilled Diverse- Effectively plan
State
andof the Art
TechnologyCommunication Plan
Engineering
Workforce Develop a Skilled
Sigma Best Practices
SolutionsDevelop New Strategic
ExpertiseDrive ARDEC Strategic
execute financial Facilities Optimize a Lean EM
People (Learning, Growth,
Multi-functional
Customer Focus
Process Focus
Business/Expand
Organization
Focus
Workforce
Communication)ARDEC
Focus
Revenue Base
resources
and
Honest Broker
Achieving Financial
Excellence
Engineering
Strengthen and
Means
ENDS
MEANS
MEANS
ENDS
WAYS
- Implement Lean Six
FM Business
Focus superior
-Provide
(Resource Management)
Logistics products
services
Lean Six Sigma
Projects Linked
to Strategy
Workforce &
Improvement through
Optimized
Human/
Attract/Train/Retain
an
Practices
Information
Capital
Agile, Flexible
and
Satisfaction
Improve Internal
ASIC Mission Statement Deliver superior ARDEC products and services to warfighters and
Business Processes
Diverse Workforce
AETC Vision : customers
World Class Engineering Competencies
Providing Innovative Armaments Solutions
Meet and effectively
Excel at Customer
Realize Enterprise
Engage, and
soonerSatisfaction
throughthrough:
the rigorous application
of best practicesAttract,
in management,
systems
manage customers
required
Excellence
through
use
Retain multi-skilled
and
AETC
Mission: Provide customers with
life-cycle
engineering
and armament
technology
solutions through integrated
capability in FM
functions:
engineering
and
logistics
timeliness, fiscal
Institute Lean/Six
Sigma
of quality tools: Six
diverse workforce
competencies
statenew
of the art facilities
Rapidlyand
develop
Form External
--Appropriation Mgmt (P&B)as the QE&SA
Improve Facilities to
Sigma, CMMI Policy,
discipline, teaming, mgmt
Partnerships to Leverage
approaches to support
-- PPBES (O&M)
and Baldrige
Continuous Improvement
Achieve Excellence
involvement, and quality
Organization
Focused on
Best Practices
Customer
Needs
Deliver Innovative
Satisfied
Customers
Effective Use and
--Cost Analysis (CA), and Methodology
services
Culture
of Continuous
mentoring,
World Class
Enterprise
ManagementContinuous
Mission: Oversee
Provide
ARDEC with
EffectiveofEffective
and
Efficient
Armaments Solutions
Allocation
Resources
Preferred Provider of
Steward of
--Accounting (MAD)
Improvement
Improvement
Implement Best
Workforce
Enterprise
Level
Functions
and
Infrastructure
growth,
and
development
Engineering Expertise
Resources
Customer
&
- Seek
activePartnerships
Practices
for Planning,
Deploy Design for
Populate Knowledge
of FM staff and others
Communication Forums
- Disciplined
approach
to
- Attract, engage and
Programming,
Lean/Six Sigma
forFM Capability
involvement
of
Proactively
Obtain
Systems
with defined
Build
in
Formalize
the Quality
- Provide
effective
proactive QE&SA
Budgeting, and processes/
Customer Feedback
develop and
retain a world-class,
Cost Analysisrapidly
functions
customers on projects
Management
System
Leadership
Management
Execution (PPBES)
Procedures
and services
transition technologies
flexible and agile
Develop a FrameworkCapture, communicate
Build the Future ARDEC
Effective Steward of
Drive ARDEC
Cultural
of
for aof
Successful and optimize our use
Improve integration
workforce
Businessexceptional
Base
Resources
- Ensure
Excellence
-budget
Embrace,
employ,
&
Business
Strategy
FM information
capital
Develop & Market
FM ASIC personnel
Ensure Exceptional
Train
the Workforce
in
ARDEC’s
internal
Research
Develop
-Ensure
level
of service for
all and
improve ASIC Strategically
owned
Customer Support and
Relevant
Learning & Growth FocusEffectively Execute
Customer Focus Innovative
Resources Focus
Level of Customer
process Armaments
and
identify
Business
Practice Focus Competencies - Continuously
Financial
Resources
are recognized
in Facilities/Equipment,
improve
customers
Services
People,
Products,leaders
Processes,
Communication
Satisfaction
Technologies
using CMMI
better
measuresprocesses
for
their respective
facilities and equipment
mgmt of ARDEC
INNOVATION
competencies
Recruit a Motivated,
- Implement Strategic
Rapidly Transition
Providebusiness
Life-Cycle
Develop and Maintain
WAYS /
INITIATIVES
Level 0 ARDEC
Corporate
Competent,
Diversesolutions to our
ASIC Vision Ensure
ARDEC’s
success by rapidly
delivering superior
armament
Exceptional
Customer
Continuous
Leader in Financial
customers.
Management
Services
Develop Core
Competency Processes
Means
INNOVATION
VISION: Business focused and process driven organization integrated with customers
Exceptional Facilities,
Continuous Improvement
Knowledge
Recognized Leader in
Exceptional Customer
MISSION: Provide government
financial
services to Picatinny Arsenal customers for armament
technology Systems
and weapon programs.
through
Innovative
Management
Quality Services
Satisfaction
Business Processes
and Workforce
ENDS
People, Products, Processes, Facilities/Equipment, Communication
THE QE&SA VISION: Establish the QE&SA Directorate as a Recognized Army and DoD Leader in Quality and System Assurance
The QE&SA MISSION IS TO EXECUTE AND MANAGE AN INTEGRATED LIFE CYCLE QUALITY AND SYSTEM ASSURANCE PROGRAM REQUIRED FOR THE RESEARCH,
DEVELOPMENT, PRODUCTION, FIELD SUPPORT AND DEMILITARIZATION OF AMMUNITION, WEAPONS, FIRE CONTROL, AND ASSOCIATED ITEMS
MEANS
AR 4.3
Provide Effective
Knowledge Management
Systems
ENDS
AR 3.3
Gain Recognition as
Leading Provider of
Armaments Solutions
Ends
AR 2.3
Rapidly Provide Quality
Solutions
ENDS
AR 1.3
Create & Grow Innovators
Strategy Definition
ARDECARDEC- QESA STRATEGIC MANAGEMENT SYSTEM
Ways
AR 4.2
Ensure Relevant Mix of
Facilities and Equipment
to Achieve RD&E & Lifecycle Excellence
WAYS/INITIATIVES
AR 3.2
Effectively Balance the
ARDEC Portfolio
ENDS /
STRATEGIES
AR 2.2
Exceed Customer
Expectations
ENDS
AR 1.2
Build S&T Technology
Portfolio
WAYS /
INITIATIVES
AR 4.1
Attract, Train, and Retain
a Flexible Agile and
Diverse Workforce
WAYS
AR 3.1
Embed integrated leading
management practices
and processes
MEANS
WAYS /
INITIATIVES
AR 2.1
Meet Program Baseline
Cost, Schedule,
Performance and Risk
Objectives
AR 1.1
Embed a Technology
Innovation Process
MEANS
MEANS
AR 4.0
Pioneering
Facilities & Knowledge
Management Systems
Supporting a Flexible,
Agile, Innovative &
Diverse Workforce
ENDS /
STRAEGIES
AR 3.0
Continuous
Improvement through
Innovative Business
Initiatives
Customer Satisfaction
through Execution of Life
Cycle Mission
WAYS /
INITIATIVES
AR 2.0
Exceptional
AR 1.0
Leader in
Armaments
Technology Innovation
ENDS /
STRATEGIES
ENDS /
STRATEGIES
OUR MISSION IS TO DEVELOP AND MAINTAIN A WORLDCLASS WORKFORCE TO EXECUTE AND MANAGE INTEGRATED LIFE CYCLE
ENGINEERING PROCESSES REQUIRED FOR THE RESEARCH, DEVELOPMENT, PRODUCTION, FIELD SUPPORT AND DEMILITARIZATION OF
MUNITIONS, WEAPONS, FIRE CONTROL AND ASSOCIATED ITEMS
Level 2 ARDEC
Competency Directors
/ Office Chiefs
Strategy Execution
Individual Employees
Workforce has a Clear Line-of-Sight of What is Important
ARDEC Human Capital
Management (HCM)
• Human Capital “Pillars”
– Strategy: Workforce Strategic
Alignment
– Leadership: Succession
Planning for Leaders
– Diversity: Demographic
& Talent Diversity
– Culture: Embody a Learning
Organization
– Talent: Recruit, Train, Develop
& Educate
– Performance: Enterprise-wide
Management
Multi-Path
Career
Progression
Succession
Planning
and Metrics
Leadership
Development
Strategic
HCM
Mentoring and
Rotational
Assignments
Recruitment
Practices
Personnel
Evaluation
Applied Talent Management
•Objectives of the HCMO
•The integration of LSS Projects
•The ARDEC HCC Charter
•The Impact of the 10 year hiring freeze
•Exit Interviews
•Measurements of the HCMO
Plan
Evaluate
•Internal Flow of Talent
Retain
Acquire
ARDEC’s Human Capital Goals
1.Align and integrate workforce
2. Decentralized execution
3. Data driven workforce analysis
4. Organizational learning
5. Human Capital Strategic Plan
Lead
•Talent Leadership for 1st Line Supervisors
• Common attributes for Mangers/Leaders
•Strengthening Talent Pipelines
•Proactive Recruiting, Talent
Acquisition
•Marketing ARDEC
Engage
•Improved Mentoring
Programs
•Knowledge Sharing and
Management
Develop
Deploy
•Cross Functional Assignments
•Employee Development
Learning & Development
• Professional Development Key Workforce Expectation
• Individual Development Plans
• Armaments University On-Site
• Master’s Classes On-Site
• Teaming Fosters On-the-Job Training
• Experiential Learning
• Corporate Investment in Learning
American Society for Training & Development International
2007 Best Award – 6th of 102
Knowledge Sharing
• Approximately 50% of E&S Newly Hired
• Organizational and Employee Knowledge Critical
• Oracle Collaboration Suite (OCS) Repositories
 Project Information
 Lessons Learned
 Process Asset Library
 Armaments Knowledgebase
Bottom Line Results
5000
Effectiveness/ Efficiency
4000
3000
2000
1000
Army
Non-Army
Diversity in Markets,
Integrated Business
Development
Carryover
Workyears
Carryover Supports
Business Sustainability
Productivity, Effectiveness, Efficiency
FY
07
FY
06
FY
05
FY
04
FY
03
FY
02
FY
01
FY
00
FY
99
FY
98
FY
97
FY
96
FY
95
FY
94
FY
93
0
Workyear Strength
6000
FY
92
FY
91
Dollars ($M)
Execute 40% More Work
1400
1200
1000
800
600
400
200
0
40% Less Workforce
FY91- FY07 Revenue and Workyear Analysis
ARDEC Strength: Customer &
Market Focus
• Multi-point Voice of
the Customer (VoC)
• Customers part of
Strategic Planning &
IPT Members
ARDEC Strengths: Work
Environment & Systems
• Workforce Environment
– Horizontal IPTs
– Capability & Competency
– Knowledge Sharing
– Innovation & Continuous
Improvement
• Work Systems Design
– Competency-Centric
Organizational Structure
– Competency
Management System
ARDEC Strength: Customer Focused Outcomes
ARDEC Opportunities for
Improvement
• Understand Product & Service Outcomes
– Primary HQ Focus on Top 40 Programs
– Performance & Schedule Not Measured
for Majority of Programs
– Lack of Measures May Hamper Performance
Assessment and Allocation of Improvement
Resources
• Obtain Comparative & Competitive Data
– Other RD&E Suppliers
• Document & Control Several Key Work
Processes
– Implementing Business Strategies
– Ensuring Full Implementation of Lean Six Sigma
Outcomes
Summary
• ARDEC is a Role Model
• Journey Never Ends
• Requires Commitment & Effort
Score
• Benefits Well Worth the Effort
1000
900
800
700
600
500
400
300
200
100
0
Estimated Baldrige Scores
2007 Recipient
500 Point ARDEC “Glass Ceiling”
A
CY96
CY98
CY00
CY02
CY06
Estimated Baldrige Scores
CY07
The Real “Winners”
In ARDEC’s Journey