managing logistics transformation: the acc approach

1. Managing Logistics Transformation:The ACC Approach I am really glad to be here this morning giving you an update on ACC logistics. Let me start out� since we are a nation at war� by talking about our role in the war effort. I�ll talk about some of the initiatives we have going to both keep our logistics footprint small and meet our warfighter�s evolving needs. From there I�ll venture into transformation and add an ACC perspective to initiatives and concepts you�ve already heard about this week, initiatives such as Task Force 720, Repair Enterprise for the 21st Century, and AFSO 21. I am really glad to be here this morning giving you an update on ACC logistics. Let me start out� since we are a nation at war� by talking about our role in the war effort. I�ll talk about some of the initiatives we have going to both keep our logistics footprint small and meet our warfighter�s evolving needs. From there I�ll venture into transformation and add an ACC perspective to initiatives and concepts you�ve already heard about this week, initiatives such as Task Force 720, Repair Enterprise for the 21st Century, and AFSO 21.

2. This is a snapshot of our recent activity in the AOR. The numbers can be overwhelming when you think of 120 aircraft positioned at 16 locations. Our logisticians helped launch almost 13,000 sorties in Fiscal Year 2006. Let�s not forget about the heavy lifting we�re doing stateside for Operation Noble Eagle� over 31,000 sorties generated since 9/11.This is a snapshot of our recent activity in the AOR. The numbers can be overwhelming when you think of 120 aircraft positioned at 16 locations. Our logisticians helped launch almost 13,000 sorties in Fiscal Year 2006. Let�s not forget about the heavy lifting we�re doing stateside for Operation Noble Eagle� over 31,000 sorties generated since 9/11.

3. ACC CENTCOM AOR Support This gives you a breakout of the different fleets we�re using for Operation Iraqi Freedom and Operation Enduring Freedom.This gives you a breakout of the different fleets we�re using for Operation Iraqi Freedom and Operation Enduring Freedom.

4. In theater (click) our efforts have been focused on reducing the need for inter- and intra-theater lift � we�ve made significant strides which I�ll talk about shortly. We�ve also worked hard to reconstitute our bare base, or BEAR equipment as well as War Reserve Material such as vehicles and equipment. Our supply chain efforts have been focused on carrying less in to the fight with each AEF rotation.In theater (click) our efforts have been focused on reducing the need for inter- and intra-theater lift � we�ve made significant strides which I�ll talk about shortly. We�ve also worked hard to reconstitute our bare base, or BEAR equipment as well as War Reserve Material such as vehicles and equipment. Our supply chain efforts have been focused on carrying less in to the fight with each AEF rotation.

5. $4.1 billion in WRM prepositioned assets Basic Expeditionary Airfield Resources (BEAR) Vehicles Munitions Fuels Mobility Support Equipment (FMSE) Medical Rations Tanks, Racks, Adapter, & Pylons (TRAP) Aerospace Ground Equipment (AGE) Air Base Operability (ABO) Largest War Reserve Material in DoD In addition to sortie generation we have been maintaining over $4 billion of war reserve material pre-positioned in the AOR. We�re in the process of centralizing most of our WRM assets in theater for ease of reconstitution and shipment to strategic locations.In addition to sortie generation we have been maintaining over $4 billion of war reserve material pre-positioned in the AOR. We�re in the process of centralizing most of our WRM assets in theater for ease of reconstitution and shipment to strategic locations.

6. 6 AOR In-Place Readiness Spares Packages (RSPs) Concept: RSPs will remain in AOR to support inbound unit Units will only carry parts peculiar to their aircraft Eliminates kits �passing in the air� We have a number of initiatives in various stages of completion that will increase combat capability, reduce the logistics footprint, and save dollars. We�re getting close to being able to leave our Readiness Spares packages in theater, for example. Instead of each squadron bringing their own for each AEF deployment, the spares will be there. This cuts our demands on the transportation process and simplifies the deployment process across the CAF.We have a number of initiatives in various stages of completion that will increase combat capability, reduce the logistics footprint, and save dollars. We�re getting close to being able to leave our Readiness Spares packages in theater, for example. Instead of each squadron bringing their own for each AEF deployment, the spares will be there. This cuts our demands on the transportation process and simplifies the deployment process across the CAF.

7. Supply Standardization Concept: Reduce the use of kits long-term and use the Air Force supply computation process Stock Levels Bases with stocks of reparables and consumables Readiness Based Leveling (RBL): Replace Contingency High Priority Mission Support Kits; increase reparable depth and breadth Customer Oriented Leveling Technique (COLT): Decrease customer wait time for consumables Four CENTAF locations normalized Stage 1: Al Dhafra and Al Udeid (May 06) Stage 2: Ali Al Salem and Bagram (Sep 06) At our four enduring bases in the AOR, we have set up supply accounts, treating these locations like CONUS bases with their own supply account, computing spares requirements using tools like readiness-based leveling. We�ll have better supply forecasts because we�ll have documented demand patterns. The benefits include automatic replenishment, parts closer to the warfighter, and reduced customer wait time and MICAP incidents. At our four enduring bases in the AOR, we have set up supply accounts, treating these locations like CONUS bases with their own supply account, computing spares requirements using tools like readiness-based leveling. We�ll have better supply forecasts because we�ll have documented demand patterns. The benefits include automatic replenishment, parts closer to the warfighter, and reduced customer wait time and MICAP incidents.

8. Defense Logistics Agency (DLA) Forward Stockage Concept: Move fast-moving consumable items into the theater Stock DLA-managed items in Kuwait Developed list of MICAP and fast moving items Identified 8,000+ items for CENTAF AOR We got a big assist from the Defense Logistics Agency when they moved fast-moving consumable items into the theater. Our piece of the action was to identify what we needed there. We came up with over 8,000 items and DLA got them over there. This has worked well for normal replenishment actions on these items. We still need to work the intra-theater lift issues for MICAP, or mission critical items. We got a big assist from the Defense Logistics Agency when they moved fast-moving consumable items into the theater. Our piece of the action was to identify what we needed there. We came up with over 8,000 items and DLA got them over there. This has worked well for normal replenishment actions on these items. We still need to work the intra-theater lift issues for MICAP, or mission critical items.

9. Expeditionary TheaterDistribution Centers (ETDC) Three ETDCs strategically located in CENTAF to pre-position mobility A/B/C bags and body armor Fully operational in support of AEF 1/2 � May 06 Small arms weapons on hold until storage facility complete A big boost to our deployed personnel has been locating Mobility bags and body armor at three locations in the theater. This was fully operational in May 2006. As opposed to lugging the bags through airport terminals our personnel are issued the equipment in theater. We�ll accrue a savings of $5.5 million per AEF rotation Savings $5.5M per AEF Rotation Excess baggage charges Aircraft Fuel expenditures Movement costs A big boost to our deployed personnel has been locating Mobility bags and body armor at three locations in the theater. This was fully operational in May 2006. As opposed to lugging the bags through airport terminals our personnel are issued the equipment in theater. We�ll accrue a savings of $5.5 million per AEF rotation Savings $5.5M per AEF Rotation Excess baggage charges Aircraft Fuel expenditures Movement costs

10. In-Place Aviation Support Equipment Positioning over 1,760 pieces of aviation support equipment at CENTAF AOR operating locations Provides 100% support capability within AOR for all USAF aircraft Dramatically reduces airlift required for AEF rotations AEF 7/8 : 26 C-17s, 2 C-5s utilized Mitigates need for any surface movement for future AEF rotations AEF 7/8 in Sep 05 was the last AEF rotation to deploy/redeploy entirely using strategic airlift. We have positioned over 1,760 pieces of aviation support equipment at our CENTAF AOR operating locations. AEF 7/8 in Sep 05 was the last AEF rotation to deploy/redeploy entirely using strategic airlift. We have positioned over 1,760 pieces of aviation support equipment at our CENTAF AOR operating locations.

11. FORCE Fuels Operational Readiness Capability Equipment (FORCE) Modular fuels modernization effort: replaces Fuels Mobility Support Equipment (FMSE) 31 FORCE sets projected for CENTAF; FY07-11 Pumps faster, easily transportable, and increased interchangeability among its components FORCE is our new fuels support equipment that we�ve tested at Ali Al Salem. It pumps faster than our legacy equipment, its more easily transportable, and the components are modular in design. A force multiplier, no pun intended, for us in the sortie generation process. FORCE is our new fuels support equipment that we�ve tested at Ali Al Salem. It pumps faster than our legacy equipment, its more easily transportable, and the components are modular in design. A force multiplier, no pun intended, for us in the sortie generation process.

12. Okay, let me spend a just a couple of minutes and put an ACC perspective on the challenges we�re facing as a logistics community. Okay, let me spend a just a couple of minutes and put an ACC perspective on the challenges we�re facing as a logistics community.

13. Gen Wetekam articulated these very well yesterday. The solutions to these challenges obviously need to come from all of us, public and private sector, working together a little more aggressively than we have in the past.Gen Wetekam articulated these very well yesterday. The solutions to these challenges obviously need to come from all of us, public and private sector, working together a little more aggressively than we have in the past.

14. We�ve talked about aging iron � here�s ours. Pretty close to the Air Force average of 23.5 years. It�s hard to complain too much about the B-52, especially since the last pilot to fly them into the bone yard has yet to be born. You can see at the bottom that we are introducing some new iron with our UAVs and F-22s.We�ve talked about aging iron � here�s ours. Pretty close to the Air Force average of 23.5 years. It�s hard to complain too much about the B-52, especially since the last pilot to fly them into the bone yard has yet to be born. You can see at the bottom that we are introducing some new iron with our UAVs and F-22s.

15. Despite the old iron and the continuous deployments in support of the war, are aircraft availability rates have been holding steady or trending upward over the last three years. For this trend to continue between fiscal years 2007 to 2011 we�ll need to be quite innovative and aggressive in our transformational efforts.Despite the old iron and the continuous deployments in support of the war, are aircraft availability rates have been holding steady or trending upward over the last three years. For this trend to continue between fiscal years 2007 to 2011 we�ll need to be quite innovative and aggressive in our transformational efforts.

16. Logistics Manpower We�ve talked about the old iron, now let�s talk about the people. Our modeling tells us we need a little over 41,000 personnel for ACC logistics. We�re doing the job today with approximately 34,000. Our reductions driven by PBD 720 will take us down to approximately 28,000. But folks, we probably won�t be stopping there, and we shouldn�t. Initiatives such as RE21, the centralization of logistics readiness responsibilities into centralized activities, and the reduced manning requirements of our UAV fleets, new procurements such as CSAR-X, and 5th generation fighters such as the F-22, F-35, will take our manning down even further. We�ve talked about the old iron, now let�s talk about the people. Our modeling tells us we need a little over 41,000 personnel for ACC logistics. We�re doing the job today with approximately 34,000. Our reductions driven by PBD 720 will take us down to approximately 28,000. But folks, we probably won�t be stopping there, and we shouldn�t. Initiatives such as RE21, the centralization of logistics readiness responsibilities into centralized activities, and the reduced manning requirements of our UAV fleets, new procurements such as CSAR-X, and 5th generation fighters such as the F-22, F-35, will take our manning down even further.

17. Meeting the Challenge Okay, so what are we doing to meet these challenges.Okay, so what are we doing to meet these challenges.

18. This is by no means designed to be a comprehensive list of initiatives, these are items I�d like to discuss with you today. Let�s start with how we�re complying with the Chief and Secretary�s vision for continuous process improvement.This is by no means designed to be a comprehensive list of initiatives, these are items I�d like to discuss with you today. Let�s start with how we�re complying with the Chief and Secretary�s vision for continuous process improvement.

19. ACC Approach Our coordinated efforts for AFSO 21 in ACC flow through our A9 organization. They are the quarterback for all continuous process improvement initiatives throughout the command. They have established a board with representation from each of the organizations on the staff. We�ve hired facilitators to help us with the leaning of our staffs and the field. Our A4 organization (click) is currently in the throes of an end-to-end process leaning as we work to provide better support to our logisticians in the field. We�re expecting Shaw AFB to help us with field improvements we want to export command, or Air Force, wide. As I�ll show in a minute we have achieved significant results across the board but we�ve struggled with how to share goodness. Shaw will help us figure that piece out.Our coordinated efforts for AFSO 21 in ACC flow through our A9 organization. They are the quarterback for all continuous process improvement initiatives throughout the command. They have established a board with representation from each of the organizations on the staff. We�ve hired facilitators to help us with the leaning of our staffs and the field. Our A4 organization (click) is currently in the throes of an end-to-end process leaning as we work to provide better support to our logisticians in the field. We�re expecting Shaw AFB to help us with field improvements we want to export command, or Air Force, wide. As I�ll show in a minute we have achieved significant results across the board but we�ve struggled with how to share goodness. Shaw will help us figure that piece out.

20. Results So Far Pockets of Success Enterprise � Dyess, Nellis (BlueStreak) Phase/ISO � Barksdale, Dyess, Langley, Mt Home, Offutt, Shaw Deployment Processing - Ellsworth Gun inspection � Mt Home, Cannon Engine Shops - Davis Monthan, Cannon, Hill

21. Tools AFSO 21 Aircraft Availability Improvement Programs Supply Chain Support Repair Enterprise for the 21st Century Total Force Integration Future Logistics I see that Col Melchor will talk in detail on Aircraft Availability Improvement Programs tomorrow. Let me give you our perspective on their value.I see that Col Melchor will talk in detail on Aircraft Availability Improvement Programs tomorrow. Let me give you our perspective on their value.

22. You can see our focus areas in managing the sustainment efforts for ACC. We�re working to put more iron on the ramp, drive down the cost of the logistics tail, and reduce our footprint. (click) AAIPs are our enablers to get this done. The programs bring together all the public and private sector organizations that impact these sustainment drivers, and the purpose of the programs are to drive the improvements. The proverbial onion gets peeled continuously. When we�re done peeling, we get another onion. Our plan in ACC (click), and we�ve made this clear to the field and to our SPMs, is to use these weapon system AAIPs as our primary management tool.You can see our focus areas in managing the sustainment efforts for ACC. We�re working to put more iron on the ramp, drive down the cost of the logistics tail, and reduce our footprint. (click) AAIPs are our enablers to get this done. The programs bring together all the public and private sector organizations that impact these sustainment drivers, and the purpose of the programs are to drive the improvements. The proverbial onion gets peeled continuously. When we�re done peeling, we get another onion. Our plan in ACC (click), and we�ve made this clear to the field and to our SPMs, is to use these weapon system AAIPs as our primary management tool.

23. Tools AFSO 21 Aircraft Availability Improvement Programs Supply Chain Support Repair Enterprise for the 21st Century Total Force Integration Future Logistics I�d like to talk now about the centralization of supply chain support we�ve done, first within ACC, and now across the Combat Air Forces.I�d like to talk now about the centralization of supply chain support we�ve done, first within ACC, and now across the Combat Air Forces.

24. We first tried regionalizing supply chain support in Desert Storm. It worked so well that, in 1998, we regionalized supply across all of ACC. As most of you know we opened the doors to the CAF Logistics Support Center in April of this year. In addition to ACC, we�re now supporting USAFE and are in the process of bringing PACAF on board. Later today Gen McCoy will talk about the next evolution in the consolidation of the supply chain, the Global Logistics Supply Center.We first tried regionalizing supply chain support in Desert Storm. It worked so well that, in 1998, we regionalized supply across all of ACC. As most of you know we opened the doors to the CAF Logistics Support Center in April of this year. In addition to ACC, we�re now supporting USAFE and are in the process of bringing PACAF on board. Later today Gen McCoy will talk about the next evolution in the consolidation of the supply chain, the Global Logistics Supply Center.

25. In anticipation of the GLSC, we�ll continue with the implementation of the LSC, bringing the ANG on board after PACAF. How do we know this is effective?In anticipation of the GLSC, we�ll continue with the implementation of the LSC, bringing the ANG on board after PACAF. How do we know this is effective?

26. Has It Worked? One of many initiatives with positive impact on CAF weapon systems FY98 FY05 MC 71.2 76.4 TNMCS 15.2 9.1 Cann Rate 30.1 21.0 Stock Eff 80.3 83.7 We do know that our supply rates are the best they�ve been in a long time. That�s attributable to many factors, including the consolidation of supply chain processes. These indicators give us the confidence to keep going.We do know that our supply rates are the best they�ve been in a long time. That�s attributable to many factors, including the consolidation of supply chain processes. These indicators give us the confidence to keep going.

27. We�ve talked about the supply chain side, what�s happening on the maintenance side. A couple of briefers have already discussed Repair Execution for the 21st Century. Let me talk a little about the benefits to ACC�We�ve talked about the supply chain side, what�s happening on the maintenance side. A couple of briefers have already discussed Repair Execution for the 21st Century. Let me talk a little about the benefits to ACC�

28. The vision, again, for RE21 is to create a standard network of centralized intermediate repair facilities with a command and control structure that provides seamless support to worldwide daily operation across the entire enterprise. Big task. The vision, again, for RE21 is to create a standard network of centralized intermediate repair facilities with a command and control structure that provides seamless support to worldwide daily operation across the entire enterprise. Big task.

29. F-16 AvionicsRepair Network Just to give you a flavor of what this initiative means to ACC, the F-16 avionics is one of the first initiatives out of the box. We�ve figured out, where it makes sense, to ship 2,000 more Line Replaceable Units direct to depot as opposed to tieing up our intermediate level repair process with work more suited to the depot.Just to give you a flavor of what this initiative means to ACC, the F-16 avionics is one of the first initiatives out of the box. We�ve figured out, where it makes sense, to ship 2,000 more Line Replaceable Units direct to depot as opposed to tieing up our intermediate level repair process with work more suited to the depot.

30. TF33-100/103/102CCurrent Workload Distribution For the TF33 engine, we�re planning to make this a pure direct-to-depot workload. We get a failure on the flightline (click) � we ship it back to Tinker. For the TF33 engine, we�re planning to make this a pure direct-to-depot workload. We get a failure on the flightline (click) � we ship it back to Tinker.

31. TF33-100/103/102CRE21 End State Both of these initiatives have returns on investments of 3 years or less.Both of these initiatives have returns on investments of 3 years or less.

32. Tools AFSO 21 Aircraft Availability Improvement Programs Supply Chain Support Repair Enterprise for the 21st Century Total Force Integration Future Logistics Total Force Integration � these are initiatives designed to further align activities and processes of the active, Guard and Reserve forces. (click)Total Force Integration � these are initiatives designed to further align activities and processes of the active, Guard and Reserve forces. (click)

33. CAF CSAF and BRAC-Directed TFI On the books we have initiatives in 21 states. Examples include the integration of pilots and maintainers from the Richmond Air National Guard into the 1st Fighter Wing at Langely. The 50 Wasatch Warriors that are here today are probably familiar with the Hill-to-Hill integration of the 388th Active Duty Wing with the 419th Reserve Wing, maintainers working side-by-side and the operators sharing the same iron. As I mentioned earlier, we�re facing the our logistics challenges together. This initiative is critical to maintaining our readiness , especially in our continuing efforts in support of the war.On the books we have initiatives in 21 states. Examples include the integration of pilots and maintainers from the Richmond Air National Guard into the 1st Fighter Wing at Langely. The 50 Wasatch Warriors that are here today are probably familiar with the Hill-to-Hill integration of the 388th Active Duty Wing with the 419th Reserve Wing, maintainers working side-by-side and the operators sharing the same iron. As I mentioned earlier, we�re facing the our logistics challenges together. This initiative is critical to maintaining our readiness , especially in our continuing efforts in support of the war.

34. Okay, fun futuristic stuff for those of you that live for it.Okay, fun futuristic stuff for those of you that live for it.

35. The good news is we�re taking the pains of maintaining our legacy fleets and designing away those problems in our new acquisitions such as the F-22 and F-35. These jets are designed ease the maintenance burden. The low observable coatings are easier to maintain compared to the first two generations of LO, they come with advanced integrated diagnostics, and their footprint is smaller. The good news is we�re taking the pains of maintaining our legacy fleets and designing away those problems in our new acquisitions such as the F-22 and F-35. These jets are designed ease the maintenance burden. The low observable coatings are easier to maintain compared to the first two generations of LO, they come with advanced integrated diagnostics, and their footprint is smaller.

36. Future Logistics Here is an example of the smaller footprint. Fewer C-17 loads, fewer spares, and fewer pieces of common and peculiar support equipment. Recapitulation is a critical tool in helping us increasing aircraft availability, lowering costs, and shrinking the footprint.Here is an example of the smaller footprint. Fewer C-17 loads, fewer spares, and fewer pieces of common and peculiar support equipment. Recapitulation is a critical tool in helping us increasing aircraft availability, lowering costs, and shrinking the footprint.

37. Issues Discussed Today The challenges facing the sustainment community are great � we�ll solve them together! We�re working aggressively to Improve support to the AOR Improve system availability Lower O&S costs Reduce the footprint Recapitalize

38. QUESTIONS?