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Lt. Gen David Melcher, military deputy for budget, Office of the Assistant Secretary of the Army
(Financial Management and Comptroller).
Photo by Jacqueline M. Hames
(Army News Service: Washington D.C.) -- The Armys top uniformed budget officer stressed
the importance of transforming the service to a capability-focused Army Enterprise during the
Army Leader Forum at the Pentagon on May 20.
Lt. Gen. David Melcher, military deputy for budget at the Office of the Assistant Secretary of the
Army (financial management and comptroller), illustrated why its necessary to adapt and
transform the institutional Army during his presentation.
The Army should run more like an enterprise to better develop and maintain a force in a period
of extended conflict, he says, in which demands exceed sustainable resources. He predicted even
tighter resources over the next few years, especially with a trend of smaller supplemental budget
bills to finance the war on terror.
We have enjoyed levels of spending over the last few years that are unprecedented in the
Armys history ... and may be the high-watermark for the Armys budget, he says.
An enterprise management task force has been proposed to help implement business
transformation across the Army, Melcher says. Though still being conceptualized, he says the
task force may be managed by a three-star general and a senior executive service deputy.
Its necessary for an enterprise approach to counteract consumption-driven behaviors present
in todays Army, Melcher explained. Efforts to adapt the Armys current structure focus on
continuous process improvement through programs such as lean Six Sigma, enterprise resource
planning, leadership training in enterprise management, and the revision of General Order No. 3.
General Order No. 3 assigns functions and responsibilities to organizations in headquarters,
department of the Army. Though still in revision, the order is predicted to guide the Army
enterprise, Melcher says, and will support the Armys transformation.
The Army will grow from the business transformation stage to a lean Six Sigma-centered
institution before reaching the enterprise end-state. Lean Six Sigma is a process improvement
program that helps to eliminate unnecessary steps while improving output quality, and Melcher
says it has a key role in transforming the Army into an enterprise.
Lean Six Sigma is as much common sense as anything else, Melcher says.
The process will be evolutionary rather than revolutionary, taking place over an extended
period of time, he says.
By the spring of 2011, Melcher expects the Army will have established accountability metrics
and mechanisms, instilled stewardship of resources as an Army value, and have established an
effective governance structure and culture that supports the capability-focused Army Enterprise.
This is about thinking things through in a proactive and meaningful way, he says.
For more information, visit www.army.mil/-news/2008/05/21/9331-army-enterprise-developingthrough-process-improvement/
Lean Six Sigma integrates two independently-developed improvement tools: Lean and Six
Sigma. Lean is an outgrowth of the Toyota production system, and focuses on increasing
efficiency and reducing cycle time by the elimination of waste.
Six Sigma was developed by Motorola beginning in the 1970s as an approach to improving
quality and effectiveness through statistical control. Its roots go back more than 150 years to a
Prussian mathematician who introduced the concept of the normal curve.
Together, Lean and Six Sigma are powerful tools in transforming organizations, Army Materiel
Command officials said. They said Lean Six Sigma enables a culture of innovation that
continuously listens to customers, questions the status quo, and improves results through factbased decisions.
.Streamlining familiar goal for military
It's essentially to take the work out of a process and to apply it both to a factory-type operation
or repair, and also to a headquarters operation, like the Department of Army, said Secretary of
the Army Francis J. Harvey at a Pentagon press briefing March 23.
Back in 1982 it was called Quality and Productivity Improvement. Then we called it Total
Quality Management. Then we called it Business Process Re-engineering. We've had several
different names for the same thing, said Harvey. You look at the way you do business, and you
change it for the better.
AMC first employed Lean in 2002 as a tool to better wage the Global War on Terrorism and
enable transformation. By 2004, Lean evolved to Lean Six Sigma and AMC began a program to
develop the workforce in the use of these tools .
AMC black belts to train others
Headquarters AMC has trained almost 200 people since it began its Green Belt, Black Belt, and
Master Black Belt programs in Lean Six Sigma in November 2004, said Ron Davis, AMC
deputy chief of staff for Industrial Operations.
Different levels of training and experience are awarded martial arts-like belts to show the level of
the persons certification. The AMC master black belts go on to mentor others in the command.
In a nutshell, the benefit to training our own people rather than just bringing in hired folks from
industry or academia is self-sufficiency, said Rod Tozzi, AMC Industrial Operations directorate.
Thats the bottom line. If were going to do this and continue to do this, and were going to
make this part of our culture, the only way to do that is to grow it in house.
Weve already identified well over 20 processes that are Army-wide processes that we want to
take on using Lean Six Sigma. . . . Were on the very beginning of making Lean Six Sigma, and
the disciplined approach that comes with that, a major part of the way the Army does business,
said Maj. Gen. Ross Thompson III, Army G-8.
Thompson is an authority on the Armys use of Lean Six Sigma. He cites the cumbersome
planning, programming and budget execution system as an example, stating that budget items
should be addressed individually rather than in batches, an inherently inefficient process.
The challenge I gave to folks who are working through this is I want to take half of the steps
and half of the time out of the PPBE process, which people would say, Its impossible. And I
say its very doable, said Thompson.
Sound Off...What do you think?
Source: Military.com
AMC first employed Lean in 2002 as a tool to better wage the Global War on Terrorism and
enable transformation. By 2004, Lean evolved to Lean Six Sigma and AMC began a program to
develop the workforce in the use of these tools .
AMC black belts to train others
Headquarters AMC has trained almost 200 people since it began its Green Belt, Black Belt, and
Master Black Belt programs in Lean Six Sigma in November 2004, said Ron Davis, AMC
deputy chief of staff for Industrial Operations.
Different levels of training and experience are awarded martial arts-like belts to show the level of
the persons certification. The AMC master black belts go on to mentor others in the command.
In a nutshell, the benefit to training our own people rather than just bringing in hired folks from
industry or academia is self-sufficiency, said Rod Tozzi, AMC Industrial Operations directorate.
Thats the bottom line. If were going to do this and continue to do this, and were going to
make this part of our culture, the only way to do that is to grow it in house.
Weve already identified well over 20 processes that are Army-wide processes that we want to
take on using Lean Six Sigma. . . . Were on the very beginning of making Lean Six Sigma, and
the disciplined approach that comes with that, a major part of the way the Army does business,
said Maj. Gen. Ross Thompson III, Army G-8.
Thompson is an authority on the Armys use of Lean Six Sigma. He cites the cumbersome
planning, programming and budget execution system as an example, stating that budget items
should be addressed individually rather than in batches, an inherently inefficient process.
The challenge I gave to folks who are working through this is I want to take half of the steps
and half of the time out of the PPBE process, which people would say, Its impossible. And I
say its very doable, said Thompson.
Sound Off...What do you think? Join the discussion.