Management of Performance Based Logistics Naval Surface Warfare Center Crane, Indiana

1. UL02-03 Management of Performance Based Logistics Naval Surface Warfare Center Crane, Indiana Gail W. DePuy, John S. Usher, G. Don Taylor, John Ward University of Louisville

2. Poster Overview • Problem Setting • Problem Definition • Methodology • Findings • Recommendations

3. Problem Setting • NSWC-Crane serves the Navy as a recognized leader in diverse and highly technical products: • microwave devices • acoustic sensors • small arms • microelectronic technology • Crane stands as a leader in methods, technology, production and maintenance of modern naval combat weapons systems.

4. Problem Setting • It is challenging to maintain these systems as they age.

5. Problem Definition • NSWC-Crane has a mission of supporting legacy systems in the field. “Sustainment Engineering” • They have an existing process in place (TeAM) and a set of business case analysis (BCA) tools. • Research objectives: • Evaluate effectiveness of existing tools • Compare against similar industry and military • Make improvement recommendations • Determine if approach could be used to evaluate new performance based logistics (PBL) contracts.

6. Methodology • Evaluation of Crane’s Sustainment Program • Interviews with key staff • Review of voluminous sets of documents • Outgrowth of several programs • 1985, Diminishing Manufacturing Service Technology Center (DMS) • 1990, Open Systems Engineering (OSE) • 1996, COTS Management • 1997, Integration of DMS and COTS management into a unified process, Technology Assessment and Management (TeAM)

7. Methodology • Reviewed methods for other military organizations • Army • Integrated Sustainment Management (ISM) • Modernization Through Spares (MTS) • Air Force • Flexible Sustainment • DOD • Diminishing Manufacturing Sources Material Shortages (DMSMS) • Many of the methods are similar in scope • Found few sustainment models in commercial industry

8. Overall Project Findings • Many aspects of the process have been well defined and are supported by existing techniques in both military and commercial industry. • Areas of academic research related to life cycle costing offer additional means of improving the process. • The process currently lacks a well-defined system database or a computer program that serves as an integrative support structure.

9. Overall Project Findings • The process lacks specialized software to simulate systems using probabilistic models that allow for inherent variability. • The process lacks effective customer driven feedback to help in estimating the costs of products and services. • The process needs added clarity and definition of baseline engineering capacities within each of the activity/support drivers.

10. Overall Project Findings • An immediate challenge to achieving an integrated sustainment initiative at NSWC Crane consists in the multi-layered and parallel management chains involved in the sustainment process. • A new sustainment engineering concept must deal with the realities of shrinking Department of Defense budgets. • Currently the framework necessary to provide support for PBL is in place.

11. Recommendations • Integrate the many parallel management chains involved in the sustainment process. • Implement the simplified model of sustainment proposed. • Streamline logistics activities by reengineering processes. • Develop metrics that define the status of current, developing and needed capabilities and integrate with computer simulation modeling. • Develop a consistent tasking template • Develop a means of better soliciting and utilizing customer feedback • Develop better tools for use in estimation of costs of services and products through use of standard engineering economic principles.