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NAMSA Transformation

Prepared for: Host Nation Conference GQA June 2008. NAMSA Transformation. Mr Nico Oorebeek. TRANSFORMATION. Unique in space and time Continuous for life…. What is transformation ?. Substantial and lasting change Driven by external factors Forced to adapt to stay relevant.

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NAMSA Transformation

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  1. Prepared for: Host Nation Conference GQA June 2008 NAMSA Transformation Mr Nico Oorebeek

  2. TRANSFORMATION Unique in space and timeContinuous for life…..

  3. What is transformation ? • Substantial and lasting change • Driven by external factors • Forced to adapt to stay relevant

  4. Why transformation ? Geo Political change Security threat change Technology change Socio-economical change

  5. What do we want ? • Stay RELEVANT • A more modern and more responsive NAMSA at an overall lower cost

  6. Scope of transformation Stream A Adopt Modern Logistics Concepts • A1 Logistics Support Concepts • A2 In-Theatre Logistics Support • A3 Business model(s) • A4 Logistics Capability Support • A5 IS architecture • A6 Inventory Management • A7 eLogistics • A8 Public Private Partnerships

  7. Scope of transformation Stream B Modernize Business Management • B1 Activity Based Costing (ABC) • B2 Balanced Score Card • B3 Controlling • B4 Customer Value Model • B5 Management Culture • B6 Electronic Office • B7 Organizational Alignment

  8. NOT on Target, but not critical NOT meeting expectations ON Target

  9. Structured approach to transformation PHASED APPROACH STREAM AAdopt Modern LogisticsConcepts I II III IV V AS-IS TO-BE GAP BC IMP Ongoing project activities Ongoing project activities InitialImplementation Ongoing project activities ApproveBusinessCase Analysis &Decision STREAM BModernize Business Management Analysis Definition Phase START 2005-2006 Phase I ongoing2006 Phase II May2007 Phase III Autumn 2007 Phase IV Autumn 2008 Phase V ongoingand 2009

  10. Findings A1 • In 50 years NAMSA grew from a materiel distribution centre to • Multi-national logistics facilitator

  11. Findings A1 • 1958-1968 Materiel Distribution Centre • 1968-1975 Materiel Support Centre • 1975-1985 Weapon Systems Mgt Support • 1985-2000 Logistics Support Provider • 2000-2008 Multi-National Logistics Facilitator

  12. Findings A1 Focus :In-service support weapon systems Tasks :Supply, Maintenance, Technical Support 1958-1985 Capabilities :Bespoke Central IT software Dial up, point-to-point communication No or Limited office automation Focus :Logistics Support Provider Tasks :Supply, Codification, Maintenance Technical Support, Procurement, Config Mgt, Strategic lift, UOR, In-theatreSupport, Acquisition 1985-2008 Capabilities :ERP and dedicated IT software internet and dedicated communication Full suite of office automation

  13. Future environment Focus : Multi-National Logistics Facilitator Tasks : In-Theatre Support, UOR, Strategic Lift CRO (Disaster & Humanitarian), NATO Common Defence Initiatives, Environmental control and RecyclingSupply, Maintenance, Technical servicesMulti-national codification, EngineeringInfra structure support & acquisition 2008-2015 Capabilities :Full Business Partner integration & e-Logistics ERP and dedicated IT software Enterprise Content Management Internet and dedicated communication Full suite of office automationMobile global information & com capabilities

  14. Main Focus • Performance based logistics • Synergetic effect of in-theatre experience • Defining customer service products • Measurable Performance • Customer satisfaction • Financial turnover, Cost, Time, Quality and Added Value

  15. Controlling • As part of management Controlling takes into consideration • systematically and consistently • ALL aspects related to the effective and efficient use of “resources” in the achievement of business results • In accordance with strategic goals

  16. Tools and concepts • Product Based Costing • Balanced Score Card • Customer value Model

  17. Process Review • Business processes • Administrative management processes

  18. Travel on Duty process • 3600 travel orders (TDY) annually • Admin time spent per TDY order • authorization and reimbursement claim • NOW 12 hours • NEW PROCESS 7 hours • Total administrative cost • NOW 2.2 Million Euro • NEW PROCESS 1.4 Million Euro

  19. SUMMARY • NAMSA Transformation very much driven by the spirit of ISO 9001 EXTERNAL FACTORS CONTINUOUSLY CUSTOMER VALUE FUTURE RELEVANCY

  20. Questions ?

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