David Pauling, ADUSD (MPP&R) Depot UID Off-Site 23 February, 2005

1. EID (12V)194532636 Orig. Part No. (1P)1234 Serial No. (S)786950 UID as an Enabler of Sustained Materiel Readiness David Pauling, ADUSD (MPP&R) Depot UID Off-Site 23 February, 2005

2. Provide Centralized Maintenance Policy & Management Oversight All Weapon Systems & Military Equipment Establish & Maintain Maintenance Policies & Programs Managerially And Technologically Sound Adequately Resourced Maintain Necessary Levels Of Weapon System & Equipment Readiness Principal Advisor For Materiel Readiness & Sustainment Policies/Procedures Major Weapon Systems & Combat Support Equipment Integrates Materiel Readiness Aspects Across L&MR Influence Resource Allocation Decisions Enhance Materiel Readiness Policies & Procedures Provide Materiel Readiness Oversight Initiate Focused Studies MPP&R Materiel ReadinessResponsibilities

3. What matters to the Warfighter? Materiel that should be available is available At the planned location At the planned time In the planned material condition Materiel that becomes unavailable is repaired or replaced Within the planned sustainment cycle time At the planned sustainment rate At the planned sustainment cost Integrated SustainmentPerformance Objectives

4. DRMO Ship BER Trouble- shoot Depot Repair Induct at Depot Test Ship Package/Preserve Wholesale Supply Purchase Ship Ship Ship Wholesale Supply Package/Preserve Trouble- shoot Retail Supply Ship Field Repair, I-level War Reserve Remove Field Repair O-level Test Trouble- shoot X Retail Supply Use/Break Test Install 2500 Acft/5000 Firewalls Sustained Materiel Readinessis Primarily a Function ofHardware Reliability & Repair Cycle Time RFI Planned Sustainment Cycle Time Vs. Actual Sustainment Cycle Time End-to-End H-60 Sustainment Value Chain (T-700 Engine Availability) Non-RFI Planned Materiel Availably Vs. Actual Materiel Availability

5. Optimizing Materiel ReadinessReliability & Cycle-Time vs. Cost Life-cycle cost (acquisition + O&S) more Drive reliability up to optimum level reliability Sustainment cycle-time less Drive sustainment cycle time down to optimum level Cost of Readiness Lower $ Higher $ (O&S only) R&D/ACQ Only Higher $ Lower $ R&D/ACQ/O&S Lowest $ Higher $ Higher $

6. Optimizing Sustainment CostsHow much should Materiel Readiness cost? Insufficient Sustainment Production (excess materiel replacement cost) higher Excess Sustainment Production (excess infrastructure cost) Cost of Materiel Readiness Balanced Sustainment Production (production rate balanced with demand = “should cost”) lower RFU Materiel Produced and Delivered by End-to-End Sustainment Value Stream Below Entitlement Above Entitlement

7. Building the Optimum Sustainment Budget mission-based operational readiness requirement mission-based materiel readiness requirement START SPG/CPG Seek to reduce sustainment costs “WAR PLAN” Required Amount of RFI Materiel (installed + uninstalled) Required Number of RFI Weapons INTEGRATED BUDGET INTEGRATED MANAGEMENT PLAN R&D YES • S&T SAFETY STANDARDS Technical PLAN • Design READINESS BASED MATERIEL REQUIREMENTS MODEL EQUIPMENT RELIABILITY PROCUREMENT INTEGRATED REPAIR/BUILD CYCLE TIME PLAN MAINT/RCM STRATEGY MATERIEL READINESS GOALS ACHIEVED? O&M PIPELINE COMMON METRICS • In Svc Eng/Log SPARES FORECASTING & PROCUREMENT PLAN PLANNING FACTORS • DEPOT MATERIEL TRANSPORTATION DISTRIBUTION PLAN • DLR NO WCF Seek to increase sustainment performance

8. Strategic Plan Data Is Required for Informed Decision-Making • OSD and DoD Components • Document mission-based materiel readiness requirements • Resource to efficiently achieve and sustain planned materiel availability in support of required readiness • Evaluate the performance of the sustainment value chain • If performance matches plan, seek to reduce the cost of sustainment; if performance is below plan, seek to increase value chain performance • Five Pillars for Sustaining Materiel Readiness • Policy • Measuring materiel readiness • Optimizing materiel reliability • Optimizing sustainment turnaround time/cycle time • Balancing resources UID/SIM enables this!

9. Goal: achieve common understanding and shared expectations of the UID parts marking and data management responsibilities which have been assigned, or will be assigned to our organic depots. Objective: standardize as much of our UID implementation strategy as makes sense, avoiding duplication of effort and redundant investment. Expected Meeting Outcome: achieve consensus on the preferred alternative for meeting key depot UID responsibilities, in particular: Funding UID implementation, Roles & responsibilities of the cognizant Program Manager/Item Manager, Business rules for engineering involvement in direct parts marking at the organic depots, and Depot processes for UID data transaction and data management, to include SNT/SIM. Expected Meeting Outcomes