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Total Life Cycle System Management

Implementing Future Logistics Enterprise:. Total Life Cycle System Management. PURPOSE. To describe in detail the future logistics enterprise total life cycle system management To identify key implementation actions and milestones To outline a preliminary roadmap for the future. OVERVIEW.

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Total Life Cycle System Management

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  1. Implementing Future Logistics Enterprise: Total Life Cycle System Management FOUO; Pre-Decisional Information Not for Release

  2. PURPOSE • To describe in detail the future logistics enterprise total life cycle system management • To identify key implementation actions and milestones • To outline a preliminary roadmap for the future FOUO; Pre-Decisional Information Not for Release

  3. OVERVIEW • Current Weapon System Sustainment Baseline • Current Process • Recent Programs • Future Logistics Enterprise Total Life Cycle System Management • Future Process • Future Management Structure • Future Financial Management • Key Implementing Actions and Milestones FOUO; Pre-Decisional Information Not for Release

  4. Transaction driven • Integration burden on customer • No single entity responsible for performance • Functionally stovepiped CURRENT WEAPON SYSTEM SUSTAINMENT PROCESS Engineering Activities DFAS PMs ICPs 90,000 Suppliers TRANSCOM Maintenance Data AFMC NAVSUP Inter- mediate Level Services AF Maintenance Depots DAASC DLA Depot Theater Support Services DAASC AMC MC Distribution Centers Maintenance Reporting Inventory Navy Maintenance Depots & Shipyards Navy Bases Retail Services Ordering Port Unit Maintenance Maintenance Report Navy Port Navy Retail Systems Army Retail Systems 2000 Commercial Maintenance Providers CUSTOMER PROCESS REQUIREMENTS LOGSA MC Depots Maintenance Army Air Force Marines Navy Army Maintenance Depots • Request Maintenance • Requisition Parts • Track Shipments • Report Discrepancies • Conduct Reconciliation • Develop material “work-arounds” for: EDD > RDD • Obsolete Parts • Locate donor system for • controlled substitution • Initiate Local Purchases • Identify Sources • Research Parts Availability • Obtain Drawings/TDP • Resolve Financial Discrepancies • Identify/Locate functional POCs Service Transportation Systems Air Force Retail Systems Maintenance FOUO; Pre-Decisional Information Not for Release

  5. SERVICE CHIEFS (EXECUTE) INDUSTRY (PREPARES) CURRENT ACQUISITION ILS PROCESS MAINTENANCE PLANNING LOGISTICS SUPPORT ANALYSIS SUPPLY SUPPORT SUPPORT EQUIPMENT TECHNICAL DATA TRAINING AND TRAINING SUPPORT COMPUTER RESOURCES SUPPORT FACILITIES PACKG., HANDLG, STOR. & TRANS. DESIGN INTERFACE CONFIG MGMT UNITS PROGRAM MANAGER (APPROVES) PUBLIC PRIVATE MAINTAINERS PARTS’ NUMBERS EQUIPMENT DESCRIPTION INVENTORY CONTROL POINTS DEFENSE LOG INFO SERVICE CATALOGING TECHNICAL DATA CENTERS (MAJOR CMDS/DTIC) FOUO; Pre-Decisional Information Not for Release

  6. DATA CENTERS CURRENT CUSTOMER LEVEL SUSTAINMENT PROCESS • PAPER • CD • WEB DAAS PROGRAM OFFICE AND ENGINEER SUPPORT ACTIVITIES TO SUPPLY SYSTEM RETAIL SUPPLY • BULLETINS • ALERTS • TECH MANUAL • UPDATES LATERAL SUPPORT TECHNICAL MANUALS (PART NOS.) PART - OK • STATUS REPORTS • REQUISITIONS $ $ RETAIL SUPPLY (STOCK NOS.& REPAIRABLES) OK RETROGRADE • EVALUATES • DETERMINES • FIX • BUILDS BOM $ TO SERVICE/INDUSTRY DEPOT INTERMEDIATE LEVEL MAINTENANCE MAINTENANCE DATA REPORTING SYSTEMS RETROGRADE • FAILURE NOTICE • TEST RESULTS • FAILURE NOTICE NO SINGLE FACE TO THE CUSTOMER FOUO; Pre-Decisional Information Not for Release

  7. CURRENT SYSTEMS FUNDS FLOW CLS SYSTEMS COMMANDS OMA OMA SERVICES OMA (TRM) PRODUCT CTRS PM UNIT UNIT UNIT LRC PM SEC Contractor Other Svcs Depot Sub unit Sub unit Sub unit Sub unit Contractors THIS IS NOT THE TOTAL FUNDING PICTURE FOUO; Pre-Decisional Information Not for Release 1/27/00 786GR.52.05

  8. RECENT PROGRAMS • 30 pilot programs testing integrated performance driven sustainment strategies • PM responsible for integrating sustainment chain • Performance agreements with customers • Supporting performance agreements with providers • Contractor/organic mix • Systems and subsystem level • Current DODD 5000 policy implements performance driven strategy for new programs • PM development of sustainment strategy • Requires use of sustainment chain integrator (public or private) • Requires development of performance agreements • Requires USD (AT&L) approval of sustainment strategy • New Programs aggressively implementing performance driven strategies using industrial partnering • Services conduct front line maintenance • Industry provides integration and materiel management • Services or industry provide depot maintenance • Employ existing service supply systems FOUO; Pre-Decisional Information Not for Release

  9. PILOT PROGRAMS • HEMTT • AAAV MORE • Guardrail • MTVR • C-17 • Common Ship • TOW/ITAS • M1 • HIMARS • H-60 • C-5 • Comanche • JSTARS • CH-47 • F-117 • B-1B • LPD-17 Aggressiveness of Sustainment Strategy • F-16 • AWACS • SBIRS • ASE/CASS • CMC • Crusader • Apache • SLAM-ER • Aegis • AFATDS • CVN-68 • KC-135 LESS • EA-6B A B C Post Production SYSTEM MATURITY FOUO; Pre-Decisional Information Not for Release

  10. Advanced Amphibious Assault Vehicle (AAAV) Life Cycle Support F/A-18 E/F Integrated Readiness Support Teaming (FIRST) F/A-18 E/F Integrated Readiness Support Teaming (FIRST) F-117 Total System Performance Responsibility (TSPR) • Estimated $240M Cost Avoidance • over life cycle • Embedded Training • PM Life Cycle Oversight • Competitive sourcing • Savings / Cost Avoidances estimated • at $52.4M over five year contract period • Carrier stock effectiveness - 90% • Integrates 125 suppliers, 15,000 items • Support to 49th Fighter Wing rated Excellent • All performance metrics met or exceeded • Savings/cost avoidance in FY 99 - $27.5M • F-117 withstood test of transition and • overseas deployment to 2 combat locations • - In Kosovo, F-117 flew 1023 sorties with a • mission capable rate of 86% • Reduction of total ownership • costs of 20% by FY 05 • Potential of $17B O&S cost reduction • over the 30-year remaining life • Partnership among PM, industry, • and Army Materiel Command Recent Programs Exploiting integrated industrial logistics chains to optimize equipment readiness FOUO; Pre-Decisional Information Not for Release

  11. F-18 E/F: HOW IT WORKS TODAY The process is transparent to the customer consistent with the tenets of the integrated supply system. Customers Reqn processing Storeroom Management Carcass Tracking Repaired Part NRFI Shipment / RFI Receipt Data Reqnr Broken Part Boeing NAVICP Reqnr Data NRFI Receipt/ RFI Shipment/ On Hand Balance LEGEND Information / Data Material FOUO; Pre-Decisional Information Not for Release

  12. SENTINEL: HOW IT WORKS TODAY Requirements Determination Team CDS DFAS Ao Driven Requirements Disbursement Retail Wholesale Contract Raytheon Systems Billing SSA ADA Unit Requisition Logistics Data ULLS OEM/ Vender/ Depot Repair SARSS DAAS SSA Float LRU Stock Depot Stock Replenish Free Issue Serviceable LRU Unserviceable LRU Information FOUO; Pre-Decisional Information Not for Release

  13. Future Logistics EnterpriseTotal Life Cycle Systems Management • ICP’s and the hardware systems commands • - Tailors support methodology to life cycle stage and complexity • of the weapon system • Integrates the weapons systems costs and availability across all logistics • elements • - Manages weapons systems sustainment funds • Ensures business process and systems commonality through logistics system • interfaces with the end user • Leads collaborative fleet management information system availability and • utilization deriving from diagnostic/prognostic tools operating at the base level • Ensures alignment between commitments to the CINC’s and actual execution FOUO; Pre-Decisional Information Not for Release

  14. Army Air Force Portal Navy Portal GSA Portal Marine Corps Portal U.S. Vendors Retail Theater Foreign Vendors DoD Stocks Public/Private Depot Maintenance Future Logistics Enterprise (Sustainment) Commander’s Operational Plan and Execution Situational Awareness Weapon Systems Program Managers DLA Supply Chain Managers 3PL/ Other Service ICPs Warfighting CINC - Integrated knowledge environment - Customer focused weapons sustainment - Integrated distribution capability - Optimized strategic lift New requirements and consumption info Inquiries and responses from enterprise data Business Rules • Enterprise Networks • Stock status • Transportation data • Materiel release orders DoD and commercial sources Materiel flow Direct Delivery Diagnostics Materiel flow Automated System Requisitions Customer configured loads Customer manual input Integrated Electronic Tech Manuals Consolidated Containerization Point End to end distribution management FOUO; Pre-Decisional Information Not for Release

  15. Service Chief Original Equipment Manufacturer Retail Theater Other Logistics End State Weapon SystemAcquisition andSustainment Management Responsibilities Weapons Systems Acquisition Weapons Systems Sustainment Milestone Decision Authority ACAT I ACAT II ACAT III Secretary of Defense ACAT IV Secretaryof Defense Service Secretary DoD AcquisitionExecutive(DAE) • Managers • Establish Commercial Relationships for Direct Ordering and Distribution • Act Upon New Requirements • Establish Business Rules • Provide Enterprise Data Component AcquisitionExecutive (CAE) ProgramExecutiveOfficer (PEO) Service Materiel Commander Service Materiel Commander Program Manager 4PL PerformanceAgreements in Contracts Production Contract Performance Agreements Based on Weapons System Availability or other terms Weapon System Unique Repair Parts Weapon System Maintenance Sustaining Engineering Other Common Repair Parts Public Public/Private Private Host Nation Public Public/Private Private Host Nation Public Public/Private Private Host Nation Public Public/Private Private Public Public/Private Private Direct Contract with Industry DoD Managed DoD Managed Direct Contract with Industry Performance Agreements in Contracts DLA Military Service PM Private Suppliers Distributors Maintenance Requirements Notification Public/Private Maintainers Public/Private Maintainers • Contracting Mechanism • Prime Vendor • Virtual Prime Vendor • Industrial Prime Vendor • Total System Performance Responsibility (TSPR) Private Suppliers DLA, Military Service, or Industry Distributed Portal Provide Maintenance Services Foreign Vendors All DoD and Commercial Sources Worldwide ServiceCommanders Materiel Flow • Reduce Footprint • Requirements Notification • Integrated Weapons Sustainment • End-to-End Worldwide Distribution FOUO; Pre-Decisional Information Not for Release End-to-End Worldwide Distribution

  16. DoD Comptroller Original Equipment Manufacturer Common Repair Parts Other Sustaining Engineering Public Public/Private Private Public Public/Private Private Public Public/Private Private Logistics End StateWeapons System Acquisition and SustainmentFinancial Flow Service Comptroller • O&M $ • Fuel Program Manager Program Executive Officer (PEO) Service Materiel Commander Service Materiel Commander PERFORMANCE AGREEMENT PERFORMANCE AGREEMENT 4 PL Integrator Public or Private Service Commanders Depot Weapon System Maintenance Weapon System Unique Repair Parts Advocate for: training hours, flying/steaming hrs etc Public Public/Private Private Host Nation Public Public/Private Private Host Nation FOUO; Pre-Decisional Information Not for Release

  17. Significant Concerns/Risks Concern / Risk Mitigation Strategy Build surge requirements (ranges) into performance agreements; maintain budget advocacy with warfighter communities; ensure CLS contracts (TSPR, Flex Sustainment, etc.) have deployment/ surge clauses that meet CINCs requirements and can be adjusted as operational situation requires Warfighter flexibility to respond to changing circumstances Maintain single face to warfighter; product centers integrate multiple PM efforts.Provide warfighter/CINC full visibility into weapon systems support posture; require PM to have Service Level Agreements for each Supported CINC; require each PM to prepare and submit Defense Logistics Executive Summary for Sustainment Multiple PMs interacting with warfighter Maintain organic materiel management/maintenance capability; buy rights to technical data; employ incentivized performance Contracts. Reliance on single source industry provider Bring sustainment workforce into DAWIA; Develop and implement continuing education program; near term supplement with contract advisors Appropriate workforce skills in DOD//Program Offices PM control of operating funds; control of materiel Phase in financial change as programs implement serial number tracking for parts Build from current DLA experience with commodities and in Kosovo; test in focused logistics wargame; prototype in operational CINC DLA as distribution process manager FOUO; Pre-Decisional Information Not for Release

  18. KEY FINANCIAL POLICY ACTIONS • Integrate with ongoing future logistics excellence experiment • Direct resource sponsors to appropriate sustainment funds to program managers rather than to Service materiel commanders • Update FIRMR FOUO; Pre-Decisional Information Not for Release

  19. KEY IMPLEMENTING ACTIONS • Require Service implementation plans for performance based sustainment of legacy systems concurrent with FY 03 POM • Defense Planning Guidance (Sep ’01) • Conduct detailed Functional Economic Assessment of product support in conjunction with PA&E (Nov ’01 – Jan ’02) • Assess Service plans as key element of FY ’03 POM review (Mar– Jul ’02) • Tee issue up as Defense Resources Board issue • Initiate Industry/ Government team to develop universal product codes for parts numbering (Oct ’01- Oct ’02) • Migrate to UPC • Reduce cataloging FOUO; Pre-Decisional Information Not for Release

  20. KEY IMPLEMENTING ACTIONS (cont’d) • Privatize legacy data centers as an information service (conversion, maintenance, update, on line access) • Develop appropriate performance metrics for government providers (supply, maintenance, and transportation) • Implement customer wait time • Institutionalize metrics in new 4000 series policy • Provide new GPRA metrics • Institutionalize future sustainment strategy in new 4000 series policy • Prepare capstone directive (Jan ‘02) • Revise subordinate instruction • Update DODD 5000.1 to specifically emphasize performance based logistics (Nov ’01) • Preference for health monitoring • Preference for serial number tracking FOUO; Pre-Decisional Information Not for Release

  21. KEY IMPLEMENTING ACTIONS (cont’d) • Re-engineer logistics workforce • Train to manage customer relations, supply chain and supplier relationships as opposed to buying items • Tie ratings to performance • Multi skilled up-to-date logistics professionals • Sharpen sustainment oversight • Make PM responsible for life cycle sustainment through management of an integrated logistics chain • Outcome performance measured throughout the process • PM tenure dependent on negotiated outcome performance objectives • Re-assess length of PM tours • Develop PM sustainment training curriculum • Realign funding elements to PM • Product centers • User funding FOUO; Pre-Decisional Information Not for Release

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