1 / 37

Large Scale Business Transformation: A Case Study from U.S. Army Logistics

Large Scale Business Transformation: A Case Study from U.S. Army Logistics. Thomas Gulledge, President, Enterprise Integration, Inc. Professor of Public Policy & Engineering, George Mason University. Outline:. Overview and Background Enterprise Architecture Planning

lavada
Download Presentation

Large Scale Business Transformation: A Case Study from U.S. Army Logistics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Large Scale Business Transformation: A Case Study from U.S. Army Logistics Thomas Gulledge, President, Enterprise Integration, Inc. Professor of Public Policy & Engineering, George Mason University

  2. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  3. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  4. Guidance from the Executive in Charge • An IntegratedLogistics Solution • A solution that aligns with OSD Policy Architectures • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.) • A solution that addresses technical data integration • A lean architecture that enables a common operating picture. • Minimizes interfaces • Provides for single set of supporting master data • Integrates existing solutions Transforming Army Logistics

  5. Intensive 90 day Effort Initial Tasks • High-level Operational Architecture . . . . • High-level Systems Architecture . . . . . . • High-level Integrated Schedule . . . . . . . . • High-level Cost & Benefit Data . . . . . . . . • Define a Methodology for Institutionalizing the Architecture . . . . . . Completed • 1 • 1 • 1 • 1 • 1 Transforming Army Logistics

  6. Scope • Supply processes to include requisitioning, turn-in, loans • Maintenance management to include, at a minimum, induction of materiel into maintenance, maintenance (all levels – current and future), movement of materiel from maintenance activity to user/stock • Packaging, Crating, Handling and Distribution of materiel • Warehousing Functions associated with storage of materiel and readying it for movement • Associated Financial Transactions resulting from the requisitioning, turn-in, maintenance, storage and packaging, and distribution of materiel • Ensuring that Electronic Product Data (up front during design and production, as well as post-fielding) is captured and utilized in our logistics business systems. This includes engineering, configuration management data, and usage/failure factors, for all fielded materiel • Connectivity to Automatic Identification Technologies (AIT) to ensure that our logistics business systems accept and use the information to give us visibility of materiel, enhanced usage data, etc. • Connectivity to Joint Combat Service Support (CSS) systems, transportation, medical, finance, personnel, and legal Transforming Army Logistics

  7. Project Team Membership (roles & responsibilities) Dr. Gulledge (EII): Senior Lead and relationship with other Enterprise initiatives (FLE, FMEA, etc). Greg Huntington (EII): Overall Enterprise Architecture / Customer Deliverables/Project Management. Georg Simon (IDS Scheer): Business Value Chains & Process Architecture Wael Hafez (IDS Scheer): Business Methods Kris Pena (SAP): SAP functionality & standards to process architecture (current technology). David Lincourt (SAP): SAP functionality & standards to process architecture (future technology). Moses Irubor (SAP): Technical and Systems Architecture. Bill Bain (Gartner): Governance / Cost and Dave Walters (Gartner) Benefit Data Pam Thompson Army Team (LAISO) Forrest Malcomb (CASCOM) Maurice McKinney (PEO EIS) Transforming Army Logistics

  8. In process Reviews Mid-term Quality Review Site Visits: • Ft. Hood, TX (4th ID) • TRANSCOM Scott Air Force Base, IL • LMP Program Office, NJ • LAISO, Redstone Arsenal, AL • CASCOM, Ft Lee VA • ARDEC Picatinny Arsenal, NJ Analyzed: SAMS, SARSS, ULLS, ILAP, MTS, STANFINS, SAAS, PBUSE, etc. Interviews: Transportation, Maintenance, Supply - LMP Program Office - GCSS A/T Program Office - Installation Management Agency (IMA) - Embedded Diagnostics & Prognostics - (EDAPS) Study Team - Research: • Objective Force (OF) • Future Combat System (FCS) • Logistics LTTF Study • LMP contract & studies • GCSS-A/T contract & studies • Engineering Product Data (ePDM) Study OSD Alignment: Future Logistics Enterprise (FLE) - Financial Management Enterprise Architecture (FMEA) - Enterprise Integrated Data Environment (EIDE) - Service Data Management (SDM) - Chronology Transforming Army Logistics

  9. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  10. Enterprise Architecture Planning • Enterprise Architecture Planning is the process of defining and documenting a plan (i.e., a blueprint) for the use of information in support of the business processes of an organization. • Enterprise Architecture Planning also includes the plan for implementing against the requirements as documented in the architecture. • Enterprise Architecture Planning is a business responsibility and it is executed under the auspices of the business process executives within the organization. “No one would dream of asking an architect to show up one day and just start building. Even the simplest construction projects include extensive design and planning stages that ensure success. These same steps are often by-passed in IT projects. But given the proper amount of time to plan and design a system correctly would dramatically improve success rates. Matthew Dill, Mandolfo Associates (Computer World, 5 May 2003, p.23) Transforming Army Logistics

  11. Guiding Principles • The Army Logistics Architecture has a business process orientation, aligning with the Future Logistics Enterprise Policy • The Army Logistics Architecture provides a plan for business process integration across all of Army Logistics, including the National Army and the Field Army A Single Solution For Garrisoned & Deployed Forces Transforming Army Logistics

  12. Outline: • Study Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  13. Army Logistics EnterpriseStrategic Vision: “A fully integrated knowledge environment that builds, sustains, and generates Warfighting capability through a fully integrated logistics enterprise based upon collaborative planning, knowledge management, and best business practices.” We relate 5 key objectives to achieving this vision to the Army’s Logistics Architecture … Transforming Army Logistics

  14. Achieving the Logistics Vision: 5 Key Objectives • An IntegratedLogistics Solution • A solution that aligns with OSD Policy Architectures • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.) • A solution that addresses technical data integration • A lean architecture that enables a common operating picture • Minimizes interfaces • Provides for single set of supporting master data • Integrates existing solutions Meets Objective Force Characteristics! Agile Versatile Lethal Responsive Deployable Survivable Sustainable Transforming Army Logistics

  15. Achieving the Logistics Vision: 5 Key Objectives • An integratedlogistics solution • A solution that aligns with OSD Policy Architectures. • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.). • A solution that addresses technical data integration. • A lean architecture that enables a common operating picture. • Minimizes interfaces • Provides for a single set of supporting master data • Integrates existing solutions Objective #1 Transforming Army Logistics

  16. Operational View (OV-1) (Single Army Logistics Enterprise) One set of integrated end-to-end business processes Links to more detailed models Transforming Army Logistics

  17. Single Army Enterprise Operational View (Detailed View) Achieves Objective #1 A single set of integrated business processes! Transforming Army Logistics

  18. Achieving the Logistics Vision: 5 Key Objectives • An integratedlogistics solution • A solution that aligns with OSD Policy Architectures • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.) • A solution that addresses technical data integration • A lean architecture that enables a common operating picture • Minimizes Interfaces • Provides for Single Set of supporting Master Data • Integrates existing Solutions Objective #2 Transforming Army Logistics

  19. OSD Architecture Achieves Objective #2 Army Logistical Architecture OSD Future Logistics Enterprise: • TLCSM (1) • End-to-End Customer Support • Enterprise Integration • Condition Based Maintenance + • Depot Partnering • Executive Agency One Solution Manager … enabled by multiple software components … managed as one! LMP Initiative GCSS-A/T Initiative R/3 R/3 Alignment With Policy Note: 1 - Total Life Cycle Systems Management (TLCSM) Transforming Army Logistics

  20. Achieving the Logistics Vision: 5 Key Objectives • An integratedlogistics solution • A solution that aligns OSD Policy Architectures • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.) • A solution that addresses technical data integration • A a lean architecture that enables a common operating picture • Minimizes interfaces • Provides for a single set of supporting master data • Integrates existing solutions Objective #3 Transforming Army Logistics

  21. “As-Is” Systems Mapped to “To-Be” Business Process Objects Transforming Army Logistics

  22. Provides the capability to prioritize system replacements… ensures commercial software fit … ensures an orderly transition! Orderly Transition Achieves Objective #3 Critical component of legacy retirement planning Transforming Army Logistics

  23. Achieving the Logistics Vision: 5 Key Objectives • An integratedlogistics solution • A solution that aligns with OSD policy architectures • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.) • A solution that addresses technical data integration • A lean architecture that enables a common operating picture • Minimizes interfaces • Provides for single set of supporting master data • Integrates existing solutions Objective #4 Transforming Army Logistics

  24. Product Lifecycle Management (PLM) Spans The Entire Logistical Architecture Non-SAP Solution means many complex Interfaces! Management Transforming Army Logistics

  25. Product Lifecycle Management (PLM)within the same Solution National Supply Achieves Objective #4 1 1. Asset turned in for Repair 10. Replace Carcass Part 7. Order Carcass from National Supply 3. Execute Work Order 7 12. Close Work Order Field Maintenance 5. Order Carcass from Field Supply 2 3 12 8 6. Check Inventory 10 5 6 2. Create Work Order Transportation 9 9. Shipping of Carcass to Supply Unit 4 11 Field Supply Product Life-Cycle Management Tight integration with SAP PLM! 8. Shipping of Carcass from CONUS to Theatre 4. View Asset Configuration and Drawings 11. Update Asset Configuration Transforming Army Logistics

  26. Achieving the Logistics Vision: 5 Key Objectives • An integratedlogistics solution • A solution that aligns with OSD Policy Architectures • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.) • A solution that addresses technical data integration • A lean architecture that enables a common operating picture • Minimizes interfaces • Provides for single set of supporting master data • Integrates existing solutions Objective #5 a. b. & c. Transforming Army Logistics

  27. Maintenance Command and Personnel & Supply Financial Force Planning Acquisition Repair Disposal Control (C2) Organization Management Management & Overhaul Army Logistics Systems Architecture Achieves Objective #5 (c) The applications that enable the architecture ProcessLayer Web Service • SCM • CRM • SRM NetWeaver • User Management & Security Portal Infrastructure LegacySystems PLM SAP R/3 mySAP Exchange Infrastructure Web Application Server Applications Layer One integrated solution! Mobile Engine Server Business Process Management Knowledge Management/ Business Intelligence • Presentation Layer • Business Layer • Internet Com.Mgmt. • Integration Engine • Database Interface One set of data with multiple databases Master Data Management • Integration Repository • Integration Directory • Integration Server • Integration Monitor • Security • Operating systems/ Domain Mgmt. • Network • Hardware • Encryption DataLayer DB DB DB DBMS DB DB DB Transforming Army Logistics

  28. Critical Attributes of the System Architecture • Optimized messaging across all existing SAP programs, including the Logistics Modernization Program, and the Global Combat Support Systems - Army • Master data control at the corporate level • A single point for interfacing (i.e., SAP XI enabled by NetWeaver) with all external constituents, including Defense Finance and Accounting Service (DFAS), the Defense Logistics Agency (DLA), weapon system program office, Original Equipment Manufacturers (OEM), other Services, etc. • Centralized repository management for all technical data, and • Complete feedback to the OEM or any Army level for prognostic and diagnostic data One integrated solution! Transforming Army Logistics

  29. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  30. Integrated Schedule FY 08 FY 04 FY 05 FY 06 FY 07 Strategies, Architectures and Standards Group (SASG) Objective Force The integrated Architecture Logistics Modernization Program (LMP) Synchronize with PLM+ Upgrade & add Install Maint & Supply Single Army Logistics Solution! Follows SAP Product Release Product Lifecycle Management (PLM) + ver 1.0, 2.0, etc. … Synchronize with PLM+ ver 1.0 Accelerate 1st Deployment Global Combat Support Systems Army / Tactical (GCSS-A/T) Enterprise Integrated Data Environment (EIDE) V 3.0 Transforming Army Logistics

  31. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  32. Institutionalizing the Logistics Enterprise Integration Methodology Three critical success factors consistently make or break enterprise initiatives • The Right Governance Model • Organizational Change Management • The Architecture Team “Only an enterprise with the discipline to address outdated practices will build a successful architecture and the core business strategies that depend on it.” – Transforming Army Logistics

  33. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  34. Cost / Benefit Data … Total Cost of Ownership (TCO) for Centralized vs. Decentralized ERP Bottom-line: Decentralized Solutions Have Higher Total Cost Of Ownership! Transforming Army Logistics

  35. Cost / Benefit Data … • Centralized ERP TCO does NOT imply a single instance (or project) of an enterprise solution • It does imply a consolidated enterprise-wide architecture that will accommodate all Army Logistical solutions • The recommended goal of “Controlled Redundancy” assures that consolidation supports the end-to-end Army Logistics business processes A Strategies, Architectures, and Standards Group (SASG) ensures that the proper design, maintenance, and execution to the enterprise-wide architecture occurs! Transforming Army Logistics

  36. Outline: • Overview and Background • Enterprise Architecture Planning • Achieving the Logistics Vision • Integrated Schedule • Institutionalizing the Methodology • Cost and Benefit Data • Conclusions Transforming Army Logistics

  37. The solution was approved and fully funded in 2005. It is now in the DoD budget in a line item that is called the Single Army Logistics Enterprise (SALE). The SALE struggles, like all modernization initiatives in today’s environment. Conclusions Transforming Army Logistics

More Related