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Introduction to NAVSEA Commonality Process

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					               Introduction to the NAVSEA
                  Commonality Process

            Part 1: NAVSEA Policy and the Virtual Shelf




            DISTRIBUTION STATEMENT A. Approved for public release; distribution is unlimited.

4/13/2014                                   Created by: Bill Moss                               1
                      Introduction to NAVSEA Enterprise
                                 Commonality

•   NAVSEA Enterprise Commonality is an effort to reduce total
    ownership cost (TOC) across the NAVSEA enterprise by, to the
    greatest extent possible,…
      – Eliminating unnecessary variation in parts, systems, and architectures
        across the fleet, and
      – Implementing proven, cost effective designs throughout the enterprise
•   Enterprise Commonality determines the minimum amount of
    component or system variation that is necessary to meet the
    functional needs of the fleet while minimizing TOC
•   Commonality is not a “one size fits all” endeavor, nor does it seek to
    reduce component variation for it’s own sake. Commonality
    strategies simply determine the most cost-effective way to meet the
    fleet’s functional needs.



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                         Purpose of this Document

•   NAVSEA Policy for commonality of systems, subsystems, and
    components is detailed in NAVSEAINST 4120.8
•   Detailed instructions and procedures for executing the
    NAVSEAINST are documented in a series of handbooks:
      – NAVSEA Commonality Handbook
      – NAVSEA Commonality Handbook for Tools and Templates
      – NAVSEA Commonality Handbook for Program Managers and Ship
        Design managers
      – NAVSEA Commonality Handbook for Technical Warrant Holders and
        SEA 04
•   The use of Navy-sensitive information in some of these documents
    makes them unsuitable for release to the general public
•   A series of summary briefs therefore have been created, based
    upon the NAVSEAINST and the Handbooks
•   A complete list of references is given at the end of this brief

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                            NAVSEA Commonality Policy

•   NAVSEA’s Commonality policy is defined in NAVSEA Instruction 4120.8,
    approved April 2009
•   Per NAVSEAINST 4120.8, effective commonality controls and processes
    are to be employed by all activities and programs under the cognizance of
    NAVSEA and its affiliate PEOs. This includes:
      – Minimizing unnecessary variation in requirements, designs, systems,
        subsystems, and components throughout the enterprise
      – Establishing an electronic repository (“the Shelf”) of proven standard
        architectures, design guidelines, specifications, and parts lists for Government
        and contractor designs
      – Ensuring that acquisition and modernization programs utilize the Shelf when
        technical, functional, and fiscal feasibility can be established
      – Monitoring compliance of NAVSEA and its affiliate PEOs with the instruction
•   NAVSEAINST 4120.8 outlines the specific responsibilities for different roles
    (e.g., Technical Warrant Holders, Program Managers, Ship Design
    Managers)
•   For more details refer to NAVSEAINST 4120.8
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                        The Virtual Shelf Repository


•   Per NAVSEAINST 4120.8, an electronic repository has been
    created to host standard architectures, design guidelines,
    specifications, and parts lists for various ship systems
•   This repository is known as the Virtual Shelf, or simply “the Shelf”
•   Per NAVSEAINST 4120.8, each Technical Warrant Holder (TWH)
    populates the Shelf with parts lists, specifications, standard
    architectures, etc., for his/her system(s) of responsibility
•   Ship Design Managers (SDMs) and Program Managers (PMs) then
    utilize the Shelf contents in the design of new acquisition and
    modernization programs
•   TWHs are responsible for managing the contents of the Shelf for
    their respective systems of responsibility. This includes
    incorporating new technology and removing obsolete items.



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                        Illustration of the Virtual Shelf


                                                        Shelf Management Process:
                1. Populate                             TWHs, SEA 04 lead selection and
                 The Shelf
                                                        management of standard parts for
                                                        the Shelf with input from SDMs


                                                        Shelf Process & Virtual Shelf
                                                        Tool:
                                                        The Virtual Shelf is an online
2a. Manage                         2b. Manage
                                                        repository of approved parts lists,
 The Shelf                          Innovation
                                                        architectures, specifications, etc.
                                                        TWHs upload items to the Virtual
                                                        Shelf and update the contents as
                                                        required.
              VIRTUAL SHELF
                Parts Lists                             Program Design Process:
 3. Select     Architectures
               Specifications
                                                        PMs, SDMs, and contractors use
From Shelf                                              Shelf contents to develop program
                                                        designs

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                       How are Shelf Contents Selected?

•   As was discussed earlier, NAVSEA Commonality determines the
    minimum required variation within a given system that is necessary
    to meet the fleet’s functional needs while minimizing TOC
•   The standard parts lists and system architectures hosted on the
    Shelf are selected through an intensive Deep Dive study process
•   For a given system, Deep Dive studies begin by independently
    assessing:
      – The functional needs of the entire fleet with respect to the system of
        interest, and
      – The current inventory of items (components or subsystems) within the
        system of interest
•   The TWH then establishes a recommended future inventory
    (standard parts list) that:
      – Meets the functional needs of the fleet, and
      – Provides the minimum TOC


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                                             Incorporating TOC into
                                              Commonality Studies

 •      When performing commonality Deep Dive studies, we seek to
        minimize TOC for the system of interest
 •      TOC is more than just acquisition cost. As is shown below, it also
        includes factors such as installation, training, maintenance, and
        obsolescence.
 •      Shelf items therefore produce the lowest cost over the lifetime of the
        ship. Although they often provide the lowest up-front acquisition
        cost, this is not always the case.
 •      Note that maintenance costs are part of the TOC calculation. Shelf
        items will therefore tend to be items that have superior reliability,
        assuming comparable acquisition and installation costs.
EXAMPLE COST DRIVERS: TOTAL OWNERSHIP COST OF SHELF ITEMS 1

                                                        Planned                                             TOTAL
                    Installation /                                            Corrective
     Acquisition                        Training          Labor                            Obsolescence   OWNERSHIP
                     Assembly                                                Maintenance
                                                       Maintenance                                          COST



1) This is only an example. Other drivers, such as qualification testing or operating costs, may be
included depending upon the particular system
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                        How do I apply Commonality
                            to my daily work?

•     Each NAVSEA employee should be familiar with NAVSEAINST
      4120.8
•     NAVSEAINST 4120.8 outlines the responsibilities that different
      roles (TWH, SDM, PM, etc.) have with respect to Commonality
•     Commonality Handbooks have been written that provide extensive
      “how to” information regarding NAVSEA Enterprise Commonality.
      Specific Handbooks have been written for some of the different
      roles identified in NAVSEAINST 4120.8.
•     A total of four handbooks have been written:
      1. NAVSEA Commonality Handbook
      2. NAVSEA Commonality Handbook for Tools and Templates
      3. NAVSEA Commonality Handbook for Program Managers and Ship
         Design Managers
      4. NAVSEA Commonality Handbook for Technical Warrant Holders and
         SEA 04


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                      How do I apply Commonality
                      to my daily work? (Continued)

•   NAVSEA employees should begin by familiarizing themselves with
    the Commonality Handbook and Handbook for Tools and
    Templates.
•   In addition, members of ship design teams or PEOs should
    familiarize themselves with the Handbook for PMs and SDMs
•   TWHs and the members of their technical pyramids should
    familiarize themselves with the Handbook for TWHs and SEA 04
•   Note that these handbooks do contain some Navy-sensitive material
    and therefore cannot be made available through the DAU web
    portal. The Handbooks are available on the Shelf.
•   The DAU web portal does provide training briefs that are based
    upon the Commonality Handbooks and are available to the general
    public. These briefs remove the Navy-sensitive material that is
    present in the Handbooks. These briefs also are useful as training
    material for PMs, SDMs, TWHs, etc., who are new to the
    Commonality process.

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                        Resources and Additional Information

                  RESOURCE                                                LOCATION
NAVSEAINST 4120.8, “NAVSEA Policy for                 iNAVSEA website (CAC Required)
Commonality of Systems, Subsystems, and               http://inavsea.nmci.navy.mil/hq/Docs/Instructions/
Components                                            04120-008.pdf
                                                      https://acc.dau.mil/join
NAVSEA Enterprise Commonality Virtual Shelf
                                                      Registration required to access the Shelf

NAVSEA Commonality Handbook
                                                      To access the Commonality Handbooks, access
                                                      the Virtual Shelf, mouse over the “Info Library &
NAVSEA Commonality Handbook for Tools and             Calendar” button, and choose “Info Library”
Templates

NAVSEA Commonality Handbook for Program               https://acc.dau.mil/join
Managers and Ship Design Managers                     Registration required to access the Shelf

NAVSEA Commonality Handbook for Technical
Warrant Holders and SEA 04

Additional Training Briefs for NAVSEA Enterprise      DAU Commonality portal:
Commonality                                           https://acc.dau.mil/commonality

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                             Contact Information


For all questions regarding the NAVSEA Commonality process, please
contact:
      Mr. John Sofia
      Commonality Director
      John.Sofia@Navy.mil
      (202) 781-4818




4/13/2014                      Created by: Bill Moss             12

				
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