Overview

Project Number: S2973

Project Title: Improved Warehouse Efficiency

Period of Performance: SEP23 – JAN26

Objective

The warehousing processes at Ingalls Shipbuilding (Ingalls) and General Dynamics Electric Boat (GDEB) are labor intensive, time consuming, and prone to errors causing a negative impact to overall production schedule and cost performance. The objective of this project is to investigate and test true process improvement solutions for antiquated warehouse processes and tools. Process improvements to investigate include streamlining recordkeeping processes and optimizing rack designs. While resolving the ineffective process concerns, the team will identify technology insertion solutions that could be leveraged to gain further benefit. Technology insertions to be investigated include improved storage racks, automated picking technology, and improved warehouse software tools.

Based on the investigation into these technologies, the project team will define a path forward that will improve warehouse space utilization, while providing a reduction in processing time needed for warehouse processes. Ingalls’ primary focus is to streamline paper-based processes, which encompass picking and retrieval, efficient material handling, and transactions such as receipts, issues, transfers, adjustments, relocations, cycle counts, and returns to the storehouse across multiple warehouse sites. The highest priority for GDEB is process improvement through technology insertion, including both software and storage automation improvements. However, both objectives will be leveraged at both shipyards to maximize the benefit gained through project efforts.

Benefits/Payoff

The return on investment (ROI) for Ingalls over five years would be 1.83:1 for DDG and 3.79:1 when including DDG 51 Class destroyer, Amphibious Assault Ship (LHA) and Amphibious Transport Dock (LPD). For GDEB, the five-year return on investment (ROI) would be 3.63:1 for VIRGINIA Class submarine (VCS) and COLUMBIA Class submarine (CLB).

Implementation

Ingalls and GDEB plan to implement the solution in a production warehouse environment beginning in the 2Q FY2026 for all platforms at Ingalls and VCS and CLB platforms at GDEB.

*Prepared under ONR Contract N00014-24-D-7001 as part of the Navy ManTech Program.

*DISTRIBUTION STATEMENT A. Approved for public release: distribution unlimited. DCN# 2024-10-17-189