What is Continuous Process Improvement (CPI)?
Continuous Process Improvement is a term describing a suite of tools and concepts used to enable and drive operational process excellence across the Defense Logistics Agency.
Once fully institutionalized, Continuous Process Improvement can deliver optimized, value-added, benefits for our customers and the Defense Logistics Agency as well.
Why DLA is Implementing CPI?
DLA is implementing CPI due to the following:
- Generates improved response times, delivering customer requirements as specified
- Provides a competitive edge by driving down the cost of operations and encourages all DLA employees to become involved and personally accountable for getting things right
- Retains/gains customers through innovative products and services
- Fosters a focus on ways to constantly improve operational efficiency
- Supports a culture of innovative leaps and breakthroughs in improving operational efficiency
How DLA has Deployed CPI?
DLA Continuous Process Improvement Branch (J532) provides the infrastructure and process to lead, guide and monitor the Enterprise DLA CPI capability.
CPI Branch overview:
- Maintains status of CPI capability throughout DLA
- Provides standardization for CPI practices and infrastructure
- Maintains a holistic view of collective CPI projects/events, resources, opportunities and activities
- Responsible for DLA CPI policy and deployment planning
- Supports Agency-wide CPI training and technology requirements
- Leads CPI change management efforts
CPI Making a Difference
CPI deployment approach and project selection are aligned with Agency strategic direction and areas of potential risk. The CPI Goals aligned to the Agency strategic direction are:
CPI Goal 1: Standardize CPI practice through the use of consistant and repeatable methods and tools across the Agency.
CPI Goal 2: Create a self-sustaining CPI Enterprise through an organic capability to execute and generate CPI benefits.
CPI Goal 3: Institutionalize CPI to create a continuous process improvement culture.
CPI Goal 4: Achieve and sustain recognition as a CPI leader within the DoD and Federal communities.
Defining CPI Benefits
DLA Benefit Definitions:
Financial Benefits
Cost savings (Type I): Cost reduction in the number of dollars needed to meet a customer requirement, such that the money can be moved elsewhere in the program or budget. The sponsor organization for each project/event retains cost savings.
Cost avoidance (Type II): Cost reduction that does not enable a manager to move funds elsewhere or potential cost reductions from planned project/event improvement efficiencies, not tied to specific budget categories in the FYDP. The sponsor organization for each project/event retains cost avoidance.
Revenue generation: A net increase in resources over and above appropriated funds and over and above the normal influx of revolving fund work. Revenue sources can be internal or external to DLA.
Mission Benefits
A mission-related benefit, not captured in financial format, which can be identified as a result of a CPI project and/or event. Mission benefits, however, may translate to financial benefits. The four primary sub-categories are: Productivity, Operational, Energy & Environment, and People.