NNSFORWARD Publication

OUR STRATEGY FOR THE FUTURE

DEAR SHIPBUILDERS, Newport News Shipbuilding has created a 133-year legacy by exercising our skilled craftsmanship to build the world’s greatest ships.

But our legacy does not guarantee our future success. The world around us is constantly changing and we must change with it—even ahead of it. We must transform—modernize how we build ships, run our business and provide for our shipbuilders.

Our transformation is what the NNSFORWARD Strategy is all about. It outlines our priorities for the future, which focus on five main areas: Enable Our Workforce, Transform Business Operations, Execute Efficiently, Grow the Business Base and Lead the Way. With these priorities as our guide, we will work hard every day to innovate, rethink and reinvent the business of shipbuilding. As the following pages illustrate, we are well on our way but there is work to be done.

Today, we are moving forward. Leading the way is our promise for the future.

All the best,

Jennifer Boykin President Newport News Shipbuilding

2.1 ENABLE OUR WORKFORCE

1. C ontinue Quality of Life Initiatives 2. Implement Production Support System 3. Reinvent Training

TRANSFORM BUSINESS OPERATIONS

1. D etermine Plan for Outsourcing 2. Develop NNS Lean Strategy 3. Implement Integrated Digital Shipbuilding (iDS) 4. D eploy Data Analytics

EXECUTE EFFICIENTLY

1. Deploy NNS Lean Strategy 2019 Actions 2. Improve Material Availability 3. Reduce Rework 4. R educe Overhead

GROW THE BUSINESS BASE

1. Develop CVN Acquisition Strategy 2. Develop SSN Growth Strategy 3. D evelop Fleet Support Growth Strategy

The NNSFORWARD Strategy continues to evolve. Aggressive goals were set as part of the strategy in 2018. Progress was made, and the aggressive pace will continue in 2019 and beyond. FORWARD 2.1 outlines NNS’ goals for 2019.

LEAD THE WAY

1. Strengthen the Leadership Team 2. Accelerate Talent Development 3. I mprove Business Acumen

SHIPBUILDIN ALWAYS H AND ALWA BE ABOUT

NG HAS BEEN AYS WILL PEOPLE.

ENABLE Before he received his HRT GoPass365, Dominique Lewis (X11) pedaled his bicycle from Buckroe Beach to the shipyard every day to work his second-shift job—a twoand-a-half-hour journey each way. The HRT GoPass saves him time and energy.

Shipbuilding always has been and always will be about people.

Newport News Shipbuilding views its employees as its greatest investments, and their ideas and talents differentiate NNS from other companies.

One key element of the NNSFORWARD Strategy is Enable Our Workforce, which focuses on better accommodating shipbuilders’ needs to allow them to be their best every day. This includes things like ample parking, clean restrooms, relevant training and inviting break areas. The goal is to make improvements that will make shipbuilders’ work days a little easier.

Shipbuilding is not for the faint of heart. It’s challenging and important work—not only for the company—but for the nation.

Shipbuilding continues rain or shine to meet the challenging schedule needed to get Navy sailors the ships they need.

But the environment shipbuilders work in should not be challenging.

To improve the work environment and efficiency of performing this challenging work, the shipyard is investing in facilities to bring more work indoors and out of the elements. Improvements also include more and more quality of life enhancements. Restrooms are experiencing facelifts and break rooms are being established in reclaimed spaces that are more accessible and inviting.

Training programs are being modernized to include more hands-on training aids and technology to support NNS’ digital shipbuilding transformation. The company has set a goal to “reinvent” the training experience for shipbuilders. In addition to incorporating new technology, employees will see leadership content become a part of the learning experience earlier in their career lifecycle.

The goal is to develop the “whole” person and to ensure that the world’s greatest shipbuilders continue to call NNS home.

Electrician Eric DuVall (X31) is a regular in the new Carrier Café break room in Building 1744. He visits the facility almost daily to eat and log into a company computer.

He enjoys the new amenities, adding that more and more shipbuilders are taking advantage of them, too.

Office Assistant Wanico Brown (X36) is one of the biggest supporters of the “Help Me Help You” janitorial campaign to keep the shipyard’s restrooms clean.

She works to keep the ladies room in Building 1861 clean, and she monitors others to ensure it stays that way.

Larry Offield Jr. (X47) has traded a daily bus ride to work for a Commute with Enterprise van, formerly known as the Enterprise Rideshare program.

OUR WORKFORCE Other steps NNS is taking to Enable Our Workforce include: Working to improve transportation and parking by:

•E xpanding the Hidens parking lot to increase parking, adding an entrance to assist with safety and traffic flow, and improving lighting.

•C onducting a parking and traffic improvement study using drones, extending the Building 901 parking garage lease, and implementing a zone parking pilot at the Building 902 and 903 campus.

•C hanging the NNS parking policy to open assigned parking spaces to all employees after 2:30 p.m.

•E xpanding the shuttle fleet and driver support, and creating the NNXPRESS app that gives shipbuilders the ability to view the shuttles and taxis in real-time.

•E xpanding our partnership with Hampton Roads Transit (HRT) to provide more interested shipbuilders with free GoPass365 boarding passes, and adding the HRT MAX Express Route 972 (VA Beach) and HRT MAX Express Williamsburg Route. For more information, visit the NNS to Go app or www.gohrt.com.

•E stablishing a lease with Newport News/WIlliamsburg International Airport and agreement with HRT to have an express route from the airport to NNS.

•D eveloping a partnership with Enterprise to rollout a new rideshare program to employees that comes with a rental vehicle and a guaranteed parking space. For more information, visit www.CommuteWithEnterprise.com or contact the local office at 467-6867.

Working to improve quality of life by:

• Erecting two weather covers in the North Yard for the John F. Kennedy (CVN 79) program.

•O pening the Carrier Café in Building 1744, The Dive Café in Building 4633 and a similar break room in the Ring Module Shop. The spaces offer vending and ice machines, microwaves and other conveniences.

•R efurbishing restrooms and launching the “Help Me Help You” campaign aimed at creating partnerships between janitors and fellow shipbuilders.

• Expanding the Engagement Champions program across the company.

•E nsuring down weekends remain with limited amounts of overtime to promote a healthy work-life balance.

LEVERAGE SHIPBUILDE COLLECTIV TO WORK NOT HARD

ERS’ VE TALENTS SMARTER, DER.

TRANSFORM Another element of the NNSFORWARD Strategy focuses on business transformation and leveraging shipbuilders’ collective talents to work smarter, not harder. That means better understanding the interaction between shipbuilder and machine, and identifying new ways of doing things to make shipbuilding more efficient.

Think of email versus mail. It’s not about digitizing today’s processes—it’s about discovering how to do things differently.

The shipyard is moving from traditional paper blueprints to digital formats, making work easier to understand and visualize. It’s called Integrated Digital Shipbuilding (iDS), and as the name suggests, it’s an integration of digital technology across the shipyard.

Laser scanning technology was also used to make shipbuilding more efficient during the planning of the USS George Washington (CVN 73) Refueling and Complex Overhaul (RCOH). Laser scanning is being used to analyze existing ship spaces during ship checks and develop visual work instructions, which significantly reduces the cost and the time it takes to plan work for RCOHs. Also making its mark on the shipyard is industrial Augmented Reality, which allows shipbuilders to see digital information like safety warnings or the placement of future structure overlaid onto their physical surroundings – well before anything is permanently built.

And shipbuilders are printing metal ship parts, a process also known as additive manufacturing (AM). In 2019, the first certified 3D-printed metal part—a prototype piping assembly—will be installed on USS Harry S. Truman (CVN 75).

Creativity isn’t limited to the current workforce working inside the yard. NNS is also hiring and training new shipbuilders who are already wired with a technological mindset, and the shipyard is working to leverage the skills of its supply chain. Shipbuilding is a team sport; it requires a team approach.

Pipefitter Joshua Hux (X42) is one of hundreds of John F. Kennedy (CVN 79) craftsmen who have received mobile devices to use in their daily work, and shipbuilders are building the early structural units for the new Enterprise (CVN 80) right now almost completely digital.

Foreman Tyrone Armstrong (X11) uses a tablet to check progress on the construction of John F. Kennedy (CVN 79).

Inspector Crystal Adams (O38) uses a visual weld locator to detect imperfections in a weld.

The visual weld locator is a revolving tablet that displays a 3D visual work instruction to help locate weld joints on a large component.

Blake Penix (X33), who is working on the refueling and complex overhaul of USS George Washington (CVN 73), said that Integrated Digital Shipbuilding (iDS) is making the entire process more efficient.

BUSINESS OPERATIONS

Other steps NNS is taking to Transform Business Operations include: • I mplementing digital data exchange between NNS and General Dynamics Electric Boat to enable Columbia-class construction without 2D drawings.

• I nitiating assembly of Enterprise (CVN 80) structural units using 3D visual work instructions in lieu of drawings.

•D elivering over 900 mobile computers to waterfront shipbuilders.

•D eveloping NNS’ first homegrown Artificial Intelligence code used to help automatically apply notes to purchase orders.

• Piloting multiple technologies to improve material tracking.

•C ontinuing the Facilities Asset Mobile Environment (FAME) project that delivers digital work instructions to O43 maintenance technicians on mobile tablets, allowing for more timely equipment repairs.

•U tilizing the APCO fixture in the Joint Manufacturing Assembly Facility to improve construction efficiencies and shorten production in support of the Virginia-class and Columbia-class submarine programs.

• I mplementing Robotic Process Automation (Bots) that perform routine transactional functions, such as data entry, executing reports and sending emails automatically.

THE BEST ID COME FRO SUBJECT M EXPERTS—I SHIPBUILDE

DEAS OM NNS’ MATTER ITS ERS.

EXECUTE

EFFI Hee Joo “Jin” Pi was working as a nondestructive test inspector in O38 and noticed a need for improvements to Building 250. Among her suggestions were an inspector kiosk on the production floor, power tables to help shipbuilders manipulate heavy items without use of a crane, and a designated repair area. Pi’s suggestions were implemented, and the sub shop has experienced a nearly 25 percent increase in production, not to mention improved quality and safety.

The third piece of the NNSFORWARD Strategy centers on how NNS can execute more efficiently, which goes hand in hand with its transformation efforts. As new and improved ways to build ships are identified to help employees work smarter, there is also a need to remove waste from shipbuilding processes so that more focus can be placed on the important task at hand—building good ships.

The ability to more purposefully navigate through the tremendous amounts of data the shipyard generates will lead to greater efficiency. Improvements such as visual work instructions eliminate extra work like finding and reading drawings and work packages, allowing craftspeople more time to work their crafts. Visual work instructions also reduce time by providing images that make instructions more intuitive and easier to follow.

“Waste” can be something as simple as eliminating nonvalue-added steps in a process or spending less down time waiting for a crane by finding an alternate way to move material safely and more efficiently.

Eliminating waste and improving performance also allows NNS to reinvest in more improved tooling.

Opportunities exist to be leaner, improve material availability and reduce rework, which will improve the cost of building ships and make shipbuilders’ jobs easier. And the best ideas come from NNS’ subject matter experts—its shipbuilders.

Cameron Croll, a data analytics project manager (K23), joined other shipbuilders on the Quality Data Analytics Team to develop a dashboard that makes sifting through data much easier. Similar to Amazon and eBay, the dashboard allows the user to filter down the data to what matters to them and the work they are doing.

Representatives from about 125 companies participated in a supplier conference hosted by the NNS Strategic Sourcing Division in October 2018. NNS President Jennifer Boykin reminded them that shipbuilding is a team sport and that it is critical to have quality materials on time to successfully meet the Navy’s needs and execute efficiently.

NNS’ transformation relies heavily on the ability to execute efficiently. The Foundry is experiencing improved safety as a result of greater efficiency.

FICIENTLY Some of the ideas NNS is implementing to Execute Efficiently include: •A production support system starting with the Virginia-class submarine program X11, X32 and X33 production teams that allows them to focus on executing and leading their people.

•Q uality data metrics that have consolidated over 40 data sources into a single dashboard allowing each process owner to understand rework drivers, root causes and prioritized actions for eliminating defects and rework.

•R e-establishing the waterfront engineering department to provide quick responses to technical issues stopping work.

•P roviding public address (PA) systems for crew talks and work assignments to overcome the communications barriers of a noisy production environment.

•R einitiating yard-wide deployment of 5S, a lean manufacturing tool that improves safety and workplace efficiency, eliminates waste, and helps to prevent lost productivity from delayed work or unplanned downtime.

• I ncreasing pre-outfitting and performing more complex assemblies earlier in the construction process, which will lead to the early launching of John F. Kennedy (CVN 79).

• I mplementing re-engineered blocking in Dry Dock 11 to raise USS George Washington (CVN 73) and follow-on aircraft carriers, allowing more workers to walk underneath comfortably.

SHIPBUILDERS— IDEAS AND TH INGENUITY—H AS THE FOUN NNS’ 133-YEA

—THEIR HEIR —HAVE SERVED NDATION OF AR LEGACY.

GROW

THE The 726-ton lower bow was added to John F. Kennedy (CVN 79) on Sept. 28, completing the section of the ship below the waterline.

Shipbuilders, with their ideas and their ingenuity, have served as the foundation of NNS’ 133-year legacy of building good ships, and they hold the key to the shipyard’s future. That future is defined in the fourth element of the NNSFORWARD Strategy, called “Grow the Business Base.” This element examines NNS’ core capabilities and strengths and underscores the importance of understanding the current and future needs of NNS’ Navy customer and finding innovative solutions.

There are many possibilities as technology continues to evolve.

Because of increasing threats to national security, the Navy has made its desire clear to return to a 12-carrier fleet and achieve a 355-ship Navy. For the first time in over a decade, all of NNS’ available dry docks are full with ships and more NNS work.

But there is still untapped potential and opportunities that NNS has not yet envisioned. Shipbuilders must continue to ask “what if,” try new things and embrace lessons learned. Building good ships will always be the company’s core business, but like any successful company, NNS must become even better at what it does well and find ways to evolve and innovate to secure long-term stability.

The entire shipbuilding team’s efforts to deliver the most capable, quality nuclear aircraft carriers and submarines in the world, safely, on schedule and at the lowest possible cost will grow the Navy’s satisfaction with NNS’ work, and build loyalty and trust in future endeavors.

The bow unit of Illinois (SSN 786) is moved to the sea shuttle to be transported to Virginia-class submarine teaming partner General Dynamics Electric Boat.

USS John C. Stennis (CVN 74) is pictured departing Hampton Roads in 1998. The aircraft carrier, which was part of a two-ship carrier contract award in 1988, is scheduled to return to NNS in 2021 for its refueling and complex overhaul.

For the first time in over a decade, all of the shipyard’s available dry docks are full and NNS is on the verge of having more work under contract than it has had in over two decades.

BUSINESS BASE

NNS is taking steps to Grow the Business Base.

Here are a few examples:

• Standing up a centralized Business Development Division.

•W orking closely with the Navy to achieve a two-ship aircraft carrier contract award for CVN 80 and CVN 81, which would be a historic milestone. The last time a contract was signed to purchase two aircraft carriers was for the USS John C. Stennis (CVN 74) and USS Harry S. Truman (CVN 75) 30 years ago.

•W inning the advanced planning contract for RCOH work on the next Nimitz-class carrier, USS John C. Stennis.

•N egotiations are underway with the Navy for the 10-boat Block V Virginia-class contract.

•P roviding strong support to preliminary Navy studies that will define SSN(X), the envisioned follow-on to the Virginia-class attack submarines. This helps set the foundation for future submarine design and construction work.

• T hree submarine maintenance opportunities have been added to NNS’ onsite workload—USS Helena (SSN 725), USS Columbus (SSN 762) and USS Boise (SSN 764)—and additional opportunities are anticipated as the Navy works to increase its number of mission-ready submarines.

•P roviding maintenance support to reactor prototypes used to train Navy personnel at the Kesselring Site (KSO) in West Milton, New York, may also experience growth. NNS is working to expand its scope of responsibilities at KSO and plans to compete for a reactor inactivation contract.

A UNIFIE

ED TEAM

LE A unified team approach is especially important given the amount of change the company is experiencing and the number of new shipbuilders entering the shipyard’s gates, said NNS President Jennifer Boykin.

The final component of the NNSFORWARD Strategy is Lead the Way, and it’s about setting the company‘s new direction, communicating an inspiring vision, and uniting as one team to innovate, rethink and reinvent the business of shipbuilding.

Boykin is spearheading the Lead the Way component, but she can’t do it alone.

NNS is on the verge of having more work under contract than it has had in over two decades, and is working at a time when a new workforce, new technology and increased Navy needs are coming together at once. There has never been a time when the voice of each shipbuilder has been sought or needed more than right now. How NNS decides to act on that is not just a leadership decision—it’s the decision of all 23,000 shipbuilders.

All shipbuilders—whether they have two months of experience or 50 years on the job—have great ideas. It is the role of leadership to create an environment that allows those ideas to be heard, evaluated, and if appropriate, allows the ideas to be implemented.

Success really requires leaders who have a heart for service, coaching and mentorship.

There’s no time to waste. The ships NNS builds and repairs for the Navy are critical to defending the nation.

Shipbuilders are so vital to that, and it’s important that they recognize that, in the business of their daily lives, they are making a real difference. That’s what it means to lead the way.

Lead General Foreman Scott Hall (K47), Financial Analyst Dillon Christopher (O79) and Lead General Foreman Larry Deaver (K47) work side by side on the deckplate and meet daily to discuss the John F. Kennedy (CVN 79) cost management/savings initiatives. The innovative partnership is already generating savings.

Procurement Manager Holly Milteer (O51) takes a coach approach to training new buyers. She said her 37 years of experience have given her a clear understanding of the company’s overall mission, and she empowers the eight buyers she manages daily by reminding them of their important contributions to NNS’ success.

Christina Edwards (O74) was among the shipbuilders who gathered Nov. 15 to hear NNS President Jennifer Boykin’s LEARN presentation on the NNSFORWARD Strategy. “It’s nice to know that there’s a focus on quality of life,” Edwards said.

“We are so used to hearing about the business at these events, but she touched on a list of points that mean a lot to people.”

During Jennifer Boykin’s June 2017 transition, the incoming shipyard president held a series of town hall meetings to share her vision for NNS. Her vision, which has evolved into the NNSFORWARD Strategy, builds on the shipyard’s legacy of “Always Good Ships” by leveraging shipbuilders’ ideas and experience, and technology, to transform the business.

EAD

THE WAY TRANSFORM BUSINESS OPERATIONS

ENABLE OUR WORKFORCE

Invest in Improvement of People, Technology and Facilities

ARD RW

WAY FO E H

LE A D T

Target Diverse Talent and Match to Critical Roles

Shape and Create Opportunities for Business Growth

Competitive Cost Structure and a Smart Factory

Chase Customer Satisfaction, Trust and Loyalty GROW THE BUSINESS BASE

EXECUTE EFFICIENTLY

The above graphic illustrates Jennifer Boykin’s vision for the NNSFORWARD Strategy. Each element of the strategy builds on the next, and all of the elements operate on a foundation of strong leadership that leads the way forward.

Produced by Newport News Shipbuilding Communications Division