Materiel Readiness Modeling

1. Materiel Readiness Modeling Using Data Analysis To Improve Weapon System Sustainment David Pauling, ADUSD (MPP&R)

2. Provide Centralized Maintenance Policy & Management Oversight All Weapon Systems & Military Equipment Establish & Maintain Maintenance Policies & Programs Managerially And Technologically Sound Adequately Resourced Maintain Necessary Levels Of Weapon System & Equipment Readiness Principal Advisor For Materiel Readiness & Sustainment Policies/Procedures Major Weapon Systems & Combat Support Equipment Integrates Materiel Readiness Aspects Across L&MR Influence Resource Allocation Decisions Enhance Materiel Readiness Policies & Procedures Provide Materiel Readiness Oversight Initiate Focused Studies MPP&R Materiel ReadinessResponsibilities

3. Training & Training Support MATERIAL SUPPORT Non-RFU WEAPONS DoD Maintenance Enterprise (Depot & Field) Non-RFU PARTS REPAIRED PARTS Maintenance Planning Packaging, Handling, Storage, & Transportation REPAIRED WEAPONS WARFIGHTER Design Interface Logistics Elements Manpower & Personnel Support Equipment Computer Resources Support Facilities Technical Data COMMODITIES & SUPPLIES NEW PARTS DoD Supply Enterprise = Supply Support DoD Acquisition Enterprise NEW WEAPONS DoD Distribution Enterprise = DoD Maintenance Enterprise REDISTRIBUTED WEAPONS = Maintenance, Supply and Transportation Must be Integrated to AchieveSustainment Performance Objectives

4. What matters to the Warfighter? Materiel that should be available is available At the planned location At the planned time In the planned material condition Materiel that becomes unavailable is repaired or replaced Within the planned sustainment cycle time At the planned sustainment rate At the planned sustainment cost Integrated SustainmentPerformance Objectives

5. DRMO Ship BER Trouble- shoot Depot Repair Induct at Depot Test Ship Package/Preserve Wholesale Supply Purchase Ship Ship Ship Wholesale Supply Package/Preserve Trouble- shoot Retail Supply Ship Field Repair, I-level War Reserve Remove Field Repair O-level Test Trouble- shoot X Retail Supply Use/Break Test Install 2500 Acft/5000 Firewalls Evaluating the Performance of theSustainment Value Chain:Cross-Functional Metrics RFI Planned Sustainment Cycle Time Vs. Actual Sustainment Cycle Time End-to-End H-60 Sustainment Value Chain (T-700 Engine Availability) Non-RFI Planned Materiel Availably Vs. Actual Materiel Availability

6. Baselines the planned level of performance What’s the “should be” Establishes a performance data collection strategy Capitalize on existing data reporting requirements? Establish new data reporting requirements? Quantifies the actual level of performance using reported data What’s the “as is” Enables root-cause and cause-and-effect analyses in those cases where “actual” does not match “planned” For the entire end-to-end sustainment value chain For any discrete function within the sustainment value chain For any interface between functions within the sustainment value chain Analysis of transactions Model outputs linked to Service Materiel Readiness budgets Analytical Modeling Provides Insight Into Sustainment Value Chain Performance

7. Building the Optimum Sustainment Budget mission-based operational readiness requirement mission-based materiel readiness requirement START SPG/CPG Seek to reduce sustainment costs “WAR PLAN” Required Amount of RFI Materiel (installed + uninstalled) Required Number of RFI Weapons INTEGRATED BUDGET INTEGRATED MANAGEMENT PLAN R&D YES • S&T SAFETY STANDARDS Technical PLAN • Design READINESS BASED MATERIEL REQUIREMENTS MODEL EQUIPMENT RELIABILITY PROCUREMENT INTEGRATED REPAIR/BUILD CYCLE TIME PLAN MAINT/RCM STRATEGY MATERIEL READINESS GOALS ACHIEVED? O&M PIPELINE COMMON METRICS • In Svc Eng/Log SPARES FORECASTING & PROCUREMENT PLAN PLANNING FACTORS • DEPOT MATERIEL TRANSPORTATION DISTRIBUTION PLAN • DLR NO WCF Seek to increase sustainment performance

8. Sustaining OptimumMateriel Availability OSD/Services determine materiel availability needed to sustain strategic and contingency operations Services resource support infrastructure to meet sustainment performance objectives Services employ support infrastructure to achieve and sustain planned availability Analytical model Services compare actual materiel availability with planned materiel availability Initiate process improvements (CBM+, Lean, etc.) to change sustainment performance Initiate process improvements (CBM+, Lean, etc.) to reduce sustainment costs Actual equals Plan? YES NO

9. Resources and ReadinessHow much should Materiel Readiness cost? Insufficient Sustainment Production (excess materiel replacement cost) higher Excess Sustainment Production (excess infrastructure cost) Cost of Materiel Readiness Balanced Sustainment Production (production rate balanced with demand = “should cost”) lower RFU Materiel Produced and Delivered by End-to-End Sustainment Value Stream Below Entitlement Above Entitlement

10. Improving Materiel ReadinessReliability, Cycle-Time, Cost Life-cycle cost (acquisition + O&S) Drive reliability up to optimum level more reliability Sustainment cycle-time Drive sustainment cycle time down to optimum level less Cost of Readiness (O&S only) Higher $ Lower $

11. RCM = Reliability Centered Maintenance

12. H46/T58 Engine Repair/Time on Wing Tradeoffs $297K/repair $240K/repair $165K/repair

13. CCAD T700 Engine TAT Run Chart Reduction in Mean & Variation Continue In 2004!

14. Optimized Materiel Turnaround Time/Cycle Time 181 Engines 135 Engines Number of Maintenance Days 139 Engines 122 Engines 137 Engines

15. MATCHING RESOURCES TO REQUIREMENTS • BUDGET BASED ON READINESS REQUIREMENTS • INSTITUTIONALIZE TOTAL OWNERSHIP COST PERSPECTIVE • INTEGRATE BUDGET ACTIVITIES AND FUNDING LINES • R&D • Component Improvement • S&T • APN • Engineering Change Kits • SPARES • COMMON SE • OMN, OMN (R), OMN (OS) • In Service Engr/Logistics • “D” REPAIR • PRESERVATION & DISPOSAL • Supply • Field Repair Technical Technical/Logistics Technical/Logistics/ Industrial

16. COMMERICAL SPEC T58 TEAM T58 Integrated Recovery Approach • Technical • Life Management • Reliability Centered • Maintenance (RCM) • Design Changes • Engineering Investigations • Failure Modes/Effects VH SPEC Current Process is out of TUNE Integrated Approach is Harmony. 108 Engines Repaired per year 390 Eng req’d to meet CNO goals 1000 hour MTBR T58-GE-402 $380/Flight Hour $250K/Repair 300 Engines Repaired per year 600 Eng req’d to meet CNO goals 400 hour MTBR T58-GE-402 $700/Flight Hour $165K/Repair Optimized T58 Repair Spec • Industrial • Industrial Process • Depot/I-Level (IA5A, FHP) • Facilities/Capital Equipment (IA5A) • Parts Forecasting (NWCF) • Depot/I-Level Production (IA5A, FHP) • Logistics • Publications • Parts Forecasting • Inventory Tracking • Build Specs • Configuration Tracking Integrated Approach is HARMONY!

17. SUMMARY • OSD and DoD Components • Document mission-based materiel readiness requirements • Resource to efficiently achieve and sustain planned materiel availability in support of required readiness • Evaluate the performance of the sustainment value chain • If performance matches plan, seek to reduce the cost of sustainment; if performance is below plan, seek to increase value chain performance • Five Pillars for Sustaining Materiel Readiness • Policy • Measuring materiel readiness • Optimizing materiel reliability • Optimizing sustainment turnaround time/cycle time • Balancing resources