DSCA

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2. 2 BUSINESS PROCESS REENGINEERING (BPR)

3. 3 This definition is important because it is not the classical definition of BPR. The classical definition is: �The fundamental rethinking and radical redesign of Business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.� Michael Hammer & James Champy:Reengineering the Corporation: A Manifesto for Business Revolution Those of you who are familiar with the DSCA Reinvention initiatives may be able to easily identify with the first part of the definition. Added, is the new concept of the BPR office being the facilitator for innovation. Right now that means that if someone has a new idea they can bring it to the attention of the BPR office; it will be passed to the right person or office within DSCA; and it will be tracked to a final resolution. This definition is important because it is not the classical definition of BPR. The classical definition is: �The fundamental rethinking and radical redesign of Business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.� Michael Hammer & James Champy:Reengineering the Corporation: A Manifesto for Business Revolution Those of you who are familiar with the DSCA Reinvention initiatives may be able to easily identify with the first part of the definition. Added, is the new concept of the BPR office being the facilitator for innovation. Right now that means that if someone has a new idea they can bring it to the attention of the BPR office; it will be passed to the right person or office within DSCA; and it will be tracked to a final resolution.

4. 4 WHY HAVE BPR AT DSCA? Clinger-Cohen Act of 1996 requires that reengineering be considered at appropriate points in a major IT acquisition (e.g., CEMIS). (SECDEF Memo, 2 Jun 97 implemented within DoD) Director, DSCA directed at Security Cooperation 2001 that BPR office would pick-up where reinvention left off, with primary emphasis on business processes. It�s law and it�s policy!It�s law and it�s policy!

5. 5 WHAT DOES BPR BRING TO THE TABLE? Compliance with the law and SECDEF policy Policy level attention and facilitation Macro versus micro process approach Focal point for innovative ideas

6. 6 CRITERIA FOR SELECTING A BUSINESS PROCESS TO REENGINEER Dysfunction Importance Feasibility Not all Business Processes meet these three criteria for being reengineered.Not all Business Processes meet these three criteria for being reengineered.

7. 7 METHODOLGY EMPLOYED 151 business processes examined 13 currently on the �Active List� (17 in Feb 03) 30 currently on the �Archived List� (45 in Feb 02) 13 evaluated as to high, medium or low importance Director, DSCA Guidance Work initiatives sequentially so as to not place undue strain upon the staff and the MILDEPs Match Active List to the Six Core Functions

8. 8 THE 17 ACTIVE LIST ISSUES Improve Case Closure and Reconciliation End-to-End Control Mechanism FMS Surcharges LOR by E-Mail Refine Cooperative Logistics Supply Support Arrangement (CLSSA) FMS Point-to-point Material Tracking Military Articles and Services List (MASL) Improvement Navy FMS Dual Track SDR: Returning material process using US Bank Power Track System E-Mall Direct Delivery to FMS Customers and Use of Debit Cards 11. Increase International Logistics Control Office (ILCO) flexibility for determining support methods for delivering goods & services identified on LOA, and/or amendment/modification documents Increase SDR Write-Off Threshold Life Cycle Sustainment Support; and Manage FMS Reserve & Resale Out-of-Inventory Equipment. Qualitative Analysis of FMS Business Activity. Tri-Service ILCO Symposium Worldwide Warehouse Redistribution Services (WWRS) BIC Initiative IT 07 On the 6th of March, the BPR Executive Committee met to review the 17 active and 29 archived issues. Numbers 2, 5, 9 and 16 have been moved to the Archived list. The rationale for each is shown on the following slides.On the 6th of March, the BPR Executive Committee met to review the 17 active and 29 archived issues. Numbers 2, 5, 9 and 16 have been moved to the Archived list. The rationale for each is shown on the following slides.

9. 9 ACTIONS ACCOMPLISHED END-TO-END CONTROL MECHANISM Satisfactorily resolved. Assignment of Commitment Identification Numbers (CIN) at Implementing Agency level Tracking will be in place once CEMIS implemented Due to importance (#2 on FPG list) progress will continue to be monitored closely. I am happy to report that through the hard work of DSCA Comptroller, and Policy and Plans personnel, the number two item, end-to-end control mechanism has been satisfactorily resolved. Through the assignment of �commitment identification numbers (CIN)� at the implementing agency level, we can put the necessary tracking in place once CEMIS is deployed. We will continue to monitor this issue on the archived list. This was the #2 issue on the FPG prioritized list. I am happy to report that through the hard work of DSCA Comptroller, and Policy and Plans personnel, the number two item, end-to-end control mechanism has been satisfactorily resolved. Through the assignment of �commitment identification numbers (CIN)� at the implementing agency level, we can put the necessary tracking in place once CEMIS is deployed. We will continue to monitor this issue on the archived list. This was the #2 issue on the FPG prioritized list.

10. 10 ACTIONS ACCOMPLISHED REFINE COOPERATIVE LOGISTICS SUPPLY SUPPORT ARRANGEMENTS All requirements for CEMIS have been documented. More work in the area of standardization required. DSCA Comptroller personnel taking deliberate approach in the interest of transparency to make sure we do it right. On refinement of CLSSA, all the requirements for CEMIS have been documented. We fully understand that more work in the area of standardization is required and our Comptroller personnel are taking deliberate time in the interest of transparency to make sure we do it right. On refinement of CLSSA, all the requirements for CEMIS have been documented. We fully understand that more work in the area of standardization is required and our Comptroller personnel are taking deliberate time in the interest of transparency to make sure we do it right.

11. 11 ACTIONS ACCOMPLISHED SDR: RETURNING MATERIAL PROCESS USING U.S. BANK POWER TRACK SYSTEM U.S. Navy has requested to employ same procedures in the return of FMS SDR material via commercial carrier as via DoD contracted commercial carriers May be a topic at the August International Logistics Control Office (ILCO) Symposium Responsibility shifted to transportation team led by Mr. Brion Midland, DSCA, Policy and Plans Division The SDR returning material process using U.S. Power Track System has been moved to the archived list. DSCA Policy Transportation Policy Team is presently reviewing a request from Navy to employ the same procedures in the return of FMS SDR material via commercial carriers as via DoD contracted commercial carriers. This topic may be discussed at the ILCO Symposium, now rescheduled for late August 2003, and the action itself is being handled by the transportation team. The SDR returning material process using U.S. Power Track System has been moved to the archived list. DSCA Policy Transportation Policy Team is presently reviewing a request from Navy to employ the same procedures in the return of FMS SDR material via commercial carriers as via DoD contracted commercial carriers. This topic may be discussed at the ILCO Symposium, now rescheduled for late August 2003, and the action itself is being handled by the transportation team.

12. 12 ACTIONS ACCOMPLISHED WORLDWIDE WAREHOUSE REDISTRIBUTION SERVICES (WWRS) DSCA Policy Memo, 26 Jun 01, promulgated WWRS as an official program DSCA Policy Memo, 4 Mar 02, established Tri-Service WWRS holding accounts Services have lead and option for tri-service implementation As of Mar 03, there are 19 �sellers� and 42 �purchasers� participating in the WWRS program Finally, we decided to declare success on WWRS and move it to a monitored status on the Archived List. As of March of this year, there are 19 countries participating in WWRS as �sellers� and 42 as �purchasers�. Finally, we decided to declare success on WWRS and move it to a monitored status on the Archived List. As of March of this year, there are 19 countries participating in WWRS as �sellers� and 42 as �purchasers�.

13. 13 THE 13 ACTIVE LIST ISSUES Improve Case Closure and Reconciliation FMS Surcharges LOR by E-Mail FMS Point-to-point Material Tracking Military Articles and Services List (MASL) Improvement Navy FMS Dual Track E-Mall Direct Delivery to FMS Customers and Use of Debit Cards 8. Increase International Logistics Control Office (ILCO) flexibility for determining support methods for delivering goods & services identified on LOA, and/or amendment/modification documents Increase SDR Write-Off Threshold Life Cycle Sustainment Support Qualitative Analysis of FMS Business Activity. Tri-Service ILCO Symposium BIC Initiative IT 07 We looked at business processes over the past several years at DSCA � from the old Reinvention Working Group�, the Reinvention processes effort that Strategic Planning led; the CEMIS working groups, and other input. Through internal coordination, we were able to cut that list of 151 initiatives back to 72 through completion, combining and simply declaring some overcome by events. We then convoked an ad hoc BPR Executive Committee of some of DSCA�s brightest to look at the issues (Beth Baker, Freda Lodge, Kathy Robinson, David Rude, Fred Beauchamp, Tom Keithly, Steve Harris from our Policy and Plans Office, and Glenn Lazarus). Over time, the list has changed several times. Presently there are 13 active issues and 30 archived, or monitored, issues. A Key point is that these lists are seen as being very fluid and that things can be added, deleted or shifted between the lists based on given situations and mission requirements. Because of the legal imperative enjoined in the Clinger-Cohen legislation, obviously CEMIS related issues will be given very high priority. We looked at business processes over the past several years at DSCA � from the old Reinvention Working Group�, the Reinvention processes effort that Strategic Planning led; the CEMIS working groups, and other input. Through internal coordination, we were able to cut that list of 151 initiatives back to 72 through completion, combining and simply declaring some overcome by events. We then convoked an ad hoc BPR Executive Committee of some of DSCA�s brightest to look at the issues (Beth Baker, Freda Lodge, Kathy Robinson, David Rude, Fred Beauchamp, Tom Keithly, Steve Harris from our Policy and Plans Office, and Glenn Lazarus). Over time, the list has changed several times. Presently there are 13 active issues and 30 archived, or monitored, issues. A Key point is that these lists are seen as being very fluid and that things can be added, deleted or shifted between the lists based on given situations and mission requirements. Because of the legal imperative enjoined in the Clinger-Cohen legislation, obviously CEMIS related issues will be given very high priority.

14. 14 This shows that the greatest emphasis remains focused on or connected to case execution.This shows that the greatest emphasis remains focused on or connected to case execution.

15. 15 TWO NEW INITIATIVES International Logistics Control Office (ILCO) Symposium Business Initiatives Council (BIC) initiative on International Electronic Information Policy

16. 16 ILCO Symposium 26-27 August 2003 DISAM Headquarters WPAFB 40-50 U.S.-only Purpose: Present and discuss initiatives, major business practices, and difficult issues that may have tri-MILDEP applicability, so that business processes and overall effectiveness can be improved.

17. 17 ILCO Symposium (continued) Theme: New Ideas and Best Practices � positive ideas that make sense to implement across the MILDEPs with an eye on CEMIS implications and Portal options. Agenda is to be topic-dependent and results-oriented.

18. 18 ILCO Symposium (continued) Agenda -- CEMIS/Portal presentation -- Execution and Management of Presidential Drawdowns -- International Supply Chain Management -- Electronic FMS (e-FMS)

19. 19 BUSINESS INITIATIVES COUNCIL Established Jul 01 by the Under Secretay of Defense, Acquisition, Technology and Logistics Common Characteristics: -- benefit war fighters (stakeholders) -- provide common (coalition) good across DoD -- provide identifiable savings/benefits that will have a positive impact on FY 03 budget/execution The wording in parenthesis indicates where the BPR committee recommended using terminology that is more directly relevant to the security cooperation community. The wording in parenthesis indicates where the BPR committee recommended using terminology that is more directly relevant to the security cooperation community.

20. 20 DOD BIC ORGANIZATION Here�s the structure of the BIC, starting with: The Senior Executive Council The BIC Principals The Executive Steering Committee The Executive Directors / Joint Integration and Support Team The Process / Functional Boards All levels of the structure have an ecumenical representation from the military services, the Joint Staff, and OSD. The SEC consist of: SECDEF DEPSECDEF Service Secretaries USD (AT&L)Here�s the structure of the BIC, starting with: The Senior Executive Council The BIC Principals The Executive Steering Committee The Executive Directors / Joint Integration and Support Team The Process / Functional Boards All levels of the structure have an ecumenical representation from the military services, the Joint Staff, and OSD. The SEC consist of: SECDEF DEPSECDEF Service Secretaries USD (AT&L)

21. 21 BUSINESS INITIATIVES COUNCIL On 30 Oct 02, DSCA appointed Process Champion for BIC Initiative on International Electronic Information Policy Proposal: Determine the best method of sharing information between U.S. Gov�t offices and foreign gov�t organizations for the purpose of conducting FMS, military equipment loans, and cooperative programs for the development and production of military equipment.

22. 22 BUSINESS INITIATIVES COUNCIL History/Current Situation: -- a satisfactory info network does not exist for conducting military business with foreign governments -- technology for limiting access on existing U.S. Gov�t networks has not kept pace with the technology for exploiting access. -- two Integrated Process Teams created

23. 23 BUSINESS INITIATIVES COUNCIL Required Policy Action: DoD needs to develop a standardized, preferred method for information exchange connected to weapon system acquisition with international involvement Proposed Action Approach: Determine needs, equipment (hardware & software), identify stakeholder requirements, and provide cost estimates Goal: Completion of tasking by 1 Jun 04

24. 24 NEXT STEPS We are working the issues one at a time A message went to the field in Mar 02 announcing and explaining BPR, and soliciting innovative ideas BPR Executive Committee is convoked as required to review and revise the list (last meeting held 6 Mar 03) Innovative Ideas � 8 received to date � 3 have been moved to the BPR Active List

25. 25 THE FUTURE

26. 26 THE FUTURE (cont)