Danny Moretz

Learn how Northrop Grumman Newport News uses a value stream management systems approach for accounting, controlling, measuring, and managing a Lean Enterprise; by focusing on value stream performance to minimize the consumption of resources, while creating more value for the customer.

Northrop Grumman Newport News has deployed a Continuous Improvement System (CIS) to measure, analyze, and manage multiple levels of value streams to reduce non value adding steps that create wasted effort and obstacles of providing more value to the customer. Value stream analysis ensures that goals, actions, and decision making are aligned to meet internal and external customer needs and sector goals.

The basis of the CIS is to utilize value stream analysis as a basis for management decisions and priorities. In addition to value stream management; there is a focus on “Measure What Matters” to drive the right Lean behavior. Under this philosophy a “vital few” metrics are selected that accurately reflect the health and performance of the value stream. It focuses on the development of customer based metrics and the elimination of defensive metrics.

The CIS leverages the strengths of existing improvement methodologies including Lean and Six Sigma. CIS provides a consistent approach for all employees to identify and implement improvement goals. Managing the continuous improvement of value streams is accomplished through an eight-step cyclical process that begins with product definition and completes with review and plan for the next” continuous” improvement cycle.