AIA Sustained Materiel Readiness via Continuous Process Improvement (CPI)

1. AIASustained Materiel Readiness viaContinuous Process Improvement (CPI) And Sense and Response Logistics Capability David Pauling, ADUSD (MR&MP)

2. Systems Supported ~ 30,000 Combat Vehicles  900 Strategic Missiles • Maintained by: • 678,000 DoD personnel • Private sector companies  280 Ships  14,000 Aircraft/Helicopters Maintenance cost: ~ $72 billion per year + ~ 300,000 Tactical Vehicles + Communications/Electronics Equipment + Support Equipment + Other Systems National Defense PP&E is valued at  $700 Billion Source: LMI analysis of DoD data

3. (Program 65-80% of the Life Cycle Cost A B Initiation) C Operations & Support Concept Refinement Technology Development System Development & Demonstration Production & Deployment Design Readiness Review FRP Decision Review Concept Decision LRIP/IOT&E Sustainment Pre-Systems Acquisition Systems Acquisition PRE-IOC AND POST IOC SUPPORTABILITY ASSESSMENTS SustainingtheSystem Sources of Supply • Ready Available Safe Assets • 24/7 Availability • Reliability & Maintainability • Affordable Weapon Systems • Obsolescence/Tech Refresh • Reduced Footprint • Logistics Chain Reliability • Logistics Chain Effectiveness • Logistics Chain Cycle Time • Retrograde Management • Production Flexibility • Supply Chain Agility Modernize Materiel Readiness Life Cycle Framework from the Warfighter View

4. EVMOB = ~5:1 Cost Attaining target EVMOB helps achieve best value readiness EVMOB = ~2:1 Cycle Time EVMOB = ~6:1 Alignment Applying CPI in each area in an integrated manner achieves maximum benefits CPI Reliability Results horizon; Investment timing (Budget vs. POM) Difficulty of Implementation Current Status(As-Is) Required Readiness atBest Value Benefit CPI “Islands of Excellence” Fully Integrated CPI CPI Progress EVMOB = Expected value for magnitude of benefit

5. Sustained Materiel Readiness Principles of End to End CPI: • Concentrate on achieving/sustaining SPG/CPG readiness • Balance Safety, Reliability, Maintenance and supply distribution • activities to achieve materiel readiness at best cost. • Optimize “TIME-ON-WING” and “TURN AROUND TIME” • Promote End-to-End (E2E) Materiel Readiness Value Chain Perspective • across DoD • Sustain / Optimize Materiel Condition Reliability • Sustain / Optimize support cost, cycle time

6. Part A – Narrative Overall Program Health Any Operational Impacts Implementing Program Strategy Addresses TLCSM and PBL Part B – Outcome Based Assessment Focused on Goals and Variance from Goals Forecast/ Goal Actual Rating Operational Availability ___ ___ ___ ALT: Material Availability Mission Reliability ___ ___ ___ ALT: Material Reliability Logistics Response Time ___ ___ ___ ALT: Mean Down Time Program Funding Status ___ ___ ___ Cost per Unit of Usage ___ ___ ___ Reduction in TOC ___ ___ ___ Safety ___ ___ ___ Proposed Sustainment Indicators 7 Indicators Outcome based Report issues by exception Relevant to warfighter • Goals determined by Services

7. Mission “Sense and Respond”is a logistics system interwoven with network-centric operations and based upon highly adaptive, self-synchronizing, dynamically reconfigurable demand and supply networks that anticipate and stimulate actions to enhance capability or mitigate support shortfalls. It promotes the integration of Logistics, Operations, and Intelligence functions. With the objective of increasing weapon system and materiel readiness via programs like “Sense and Respond”, there is a need to address some fundamental supply/maintenance data issues to enable these programs for maximum effect: • Unique part marking • Materiel visibility • Common data standards • Intelligent networks The following information outlines the programs in place and being created to address these fundamental and higher level programs.

8. Situational Description • Military equipment has an issue and sends a signal to the support team. • The signal is sensed and the information analyzed via internal and external information sources. • An optimized set of solutions is communicated to the equipment commander and the best option is selected. • Once the best option is committed if maintenance is required, the supply chain and other resources are queried via the SIM system to deliver the parts, materials, personnel and instructions/documentation represented by common data standards via an optimized intelligent network to the proper location. • Once the proper maintenance resources are in place, the team is in a position to respond to the equipment issue after it arrives in the proper location.

9. Objectives Required to Enable“Sense and Respond” Objectives: 1. End-to-End materiel visibility is required to meaningfully impact the supply/maintenance materiel cycle time and inventory levelsthrough Web Services. 2. New data constructs, standards and data transport technologies need to be created, utilized and institutionalized to support the new business processes through a Product Common Data Environment. 3. New sustainment business process paradigms are required to enable the cross service maintenance support of weapons systems from any like platform depot (i.e. aviation, land vehicles, ships, etc.) via “Sense and Respond” logistics. Many of these programs or projects are already underway in their unique areas and they need to be coordinated to fulfill the end objective.

10. IETMs Total Asset Visibility (RFID) Focused Logistics VisionEnabled by Better Knowledge and S&R Support Sense & Respond Logistics Integrated Data Bus Embedded Sensors Maintenance Anticipatory Materiel On-Board Diagnostics and Prognostics Maintenance Reduced Footprints Integrated Logistics Information Interactive Training & Tech Support Data Transfer CBM+ Pedigree Manage-ment Predictive Maintenance RCM Data Analysis Troubleshooting and Repair Preventive Maintenance Portable Maintenance Aids Condition Monitoring Reliability Analysis UID/SIM Linked to Warfighters Battlespace Network Maintenance History Configuration Control • Real-time Status of Equipment Material Condition • Integrated Supply/Maintenance via Serialized Item Management • Total Asset Visibility

11. Weapon Systems Platforms Possible solutions 1,2,3,etc. Optimal solution Measurement detected • - Sense and Respond • University of Maryland • (UMD) Sense and Respond Find optimal parts, resources, materials, instructions, etc. Proper items delivered to the optimal locations. Optimal solution Optimized Logistics • Product Common Data Environment • - Dr. Raj Iyer Intelligent Network Product LifeCycle System (DEX) GRID End-to-End Material Visibility (IUID) • Web Services • IUID/RFID/SIMPedigree and Total Asset Visibility Cust Master Item Master Supplier Master UID Business Processes and IT Technology Stack Required to Delivera Common Maintenance Process to a Weapon System Platform Sense & Respond Logistics Commercial Suppliers Total Asset Visibility (RFID) PedigreeManage-ment

12. COCOM Demand Pull Warfighter “Demand Pull-Through” “Sense and Respond” Optimized Logistics DoD Repair DoD Vendor DoD Maintenance Vendor PBL DoD RCA/CA/PA Vendor VMI DoD SE Vendor3PL Design/MFG Intelligent Network Product Data Common Environment TDD Configs Availability Specs Bom’s Visibility End-to-End Supply/Maintenance Operations Web Service enabled “Reach Back”

13. Conclusion The end objective is: • Technology Enabled and Supported Maintainer via a Product Common Data Environment and Intelligent Information Infrastructure. • Product Life Cycle and Supply/Maintenance Materiel Integration • Increase the weapon system readiness assurance for the COCOMS via a Sense and Respond system/process. FocusedAgile Sustainment