Affordable Readiness The Holy Grail

1. Affordable ReadinessThe Holy Grail VectorCSP

2. Questions • How many people in here manage assets? • How many of you know the condition of those assets? • How long until the next calendar or hourly maintenance due on the assets? • Do you know the training and qualification status of the people that operate those assets? • Do you know the configuration of those assets? • Do you know where the parts are that you need to fix those assets? • Do you know how much it costs to operate one of those assets per hour?

3. Answers • If you answered yes to all of these questions you can come up here and help me with the presentation In God we trust, all others bring data Dr. Deming

4. How we got here • Delivered an Integrated Logistics Support Program to the entire USCG Small Boat fleet of 1800 boats… Now they know what they have, Where they have it, What condition it is in, When the next maintenance is due, If the crew is current and qualified for the mission Deliver results = documented 30-50% reduction in costs and man hours to the USCG Small Boat Product Line (Sea Power magazine) Getting it right the first time, every time.

5. Priorities • If everything is important nothing is! • So to keep it simple, and communicate effectively… • Develop compelling and unambiguous cornerstones • Have a plan or be part of someone else’s

6. Four Cornerstones • Product Line Management • Configuration Management • Total Asset Visibility • Bi Level Maintenance

7. Product Line Management • Single point of accountability • Resourced and empowered • Balance ops requirements and mission support… • Make data driven business decisions • Trust but Verify

8. PL Stand Up Roadmap

9. Configuration Management • Correct Form, Fit, Function • Responsive System to make changes • Not just parts, but people too! • System discipline, the difference between order and chaos

10. Total Asset Visibility • Total Transparency • Regular inventory audits • Parts allowance lists • Parts push system

11. Bi Level Maintenance • Remove a non-value add layer • Unit work aligned with worker SKA’s • Tools, special equipment standard • Standardized depot packages • Two way feedback on performance

12. Integrated Logistics Support • Everything is connected to something else • Understanding the connections is key • Establish boundary diagrams…ownership • Inputs/outputs create clarity; remove ambiguity • Provide value to your customer…everyday

13. Logistic Elements as Cost Considerations

14. Metrics Traceability

15. Logistics Impact on Ao

16. What Makes Up MLDT? Pretty much everything else! • Ordering Parts • Awaiting Parts • Finding Proper Personnel • Finding Proper Tools and Equipment • Receiving Parts • Installing Parts • Inspect and Check • Documentation

17. Seems pretty straight forward so far … • Establish the cornerstones • Develop the plan • Bring data Where do I go to get the data? First focus on the Business Rules and Processes not the IT tool

18. Process Knowledge This represents our knowledge of a process; e.g. MLDT > This is the goal >

19. Process

20. RCM Decision Tree Does failure have a direct and adverse effect on operational capability? 3 7 Yes No Other Regular Functions (Economics) Class C Yes No Operating Capability (Economics) Class B Scheduled maintenance is desired if it is cost effective in reducing costs due to operational consequences and corrective maintenance Scheduled maintenance is desired if it is cost effective in reducing corrective maintenance Yes No Describe and classify task (s) Is there an effective and applicable preventive maintenance task or combination of tasks that will prevent functional failures? 5 8 Is there an effective and applicable preventive maintenance task or combination of tasks that will prevent functional failures? 6 4 Yes Yes No Describe and classify task (s) Submit safety related design changes if appropriate Yes No Describe and classify task (s) No task required No Describe and classify task (s) No task required Submit a safety related design change

21. Affordable Readiness – Why? Product Line Management Bi-Level Maintenance Configuration Management Total Asset Visibility • Single point of Accountability • Resourced and Empowered • Balance of Requirements and Support • Data Driven Decisioning • Trust, but Verify • Remove a Non-Value Add Layer • Unit Work Aligned with Worker’s SKA • Tools Special Equipment Standard • Standardized Depot Packages • Two Way Feedback on Performance • Correct Form, Fit, Function • Responsive to Change • Turns Chaos into Order • Not just parts, People too! • Total Transparency • Regular Inventory Audits • Parts Allowance List • Parts Push System

22. Summary • Establish the cornerstones • Develop the plan • Bring data • Analyze and make data driven decisions Focus on the Business Rules and Processes not the IT tool

23. Affordable ReadinessThe Holy Grail Barry “Boo” Harner Barry.harner@vectorcsp.com 252-340-4856 Roz Lambeth roz.lambeth@vectorcsp.com 336-344-1194

24. VectorCSP Back-up Slides

25. Process Knowledge = Variance Knowledge (Deming) • Mean Numbers (Averages) do not provide real insight • Variance (Volatility) does

26. MLDT Traceability

27. Metrics Traceability (cont.)

28. Inherent Availability Traceability

29. Metrics Traceability • In summary: Our measures should “Roll Up” into the Higher Order Metrics of Availability (Ao) and Life Cycle Cost (LCC).

30. Product Line Management in Action • Situation: You need to get an expensive piece of equipment repaired quickly to get the ship underway to meet a critical mission • You sent your part to the OEM for repair, then what happens…

31. Configuration Management in Action • Situation: You need the right part that fits to fix your boat • What is the right part? • How do you know? • Form, fit, function

32. Total Asset Visibility in Action • Situation: You don’t have the part you need, but you know that someone does. • How do you find that part?

33. Bi-Level Maintenance in Action • Situation: Maintenance is required. You need the right person with the right skills and equipment to perform the procedure

34. Rebaselining Support Levels

35. When/Where VectorCSP • Over the last three years we have introduced an entire new way of doing business based on sound system engineering principles, integrated logistics, business rules, and IT tools. • Over 300 small boat stations from Puerto Rico to Alaska and everywhere in between. • WE are a small company comprised primarily of former USCG aeronautical engineers, mechanics, technicians, and logisticians • Delivered an Integrated Logistics Support Program to the entire USCG Small Boat fleet of 1800 boats…trusted change agents in the Coast Guard.

36. Why VectorCSP • We deliver results using a documented repeatable process that includes: • Integrated Logistics Support Program (ILSP) • Level of Repair Analysis (LORA) unit and depot level • Parts Provisioning List based on op hours and environment • Boat Configuration Lists • Reliability Centered Maintenance methodology • Maintenance Requirements List (MRL) calendar and hourly • Maintenance Procedure Cards detailed step by step instructions

37. Asset Priorities/Tier Levels