Petrick Spitters

Master Thesis

WSM in a PBL environment

The Role of the NL DMO Weapon

System Department

Defensie Materieel Organisatie 2

Master Thesis

Content

Why this research? -> Problem Indication Research Objective and Research Question Research Approach Diagnosis

Literature Study Analysis Results Problem Definition Terms of Reference

Design

Design Approach Case Study (Joint Strike Fighter) Reflection with Stakeholders

Conclusion and Recommendations

Defensie Materieel Organisatie 3

Master Thesis

Why this research? Increased interest and involvement OEM in sustainment Joint Strike Fighter (JSF) program – Performance Based Logistics (PBL) support concept Estimated JSF sustainment costs: NL F-35 Euro 11,3B (30 yrs) Defense budget cuts and focus on reducing sustainment costs Increased interest for Weapon System Management No major Weapon Systems within NL MOD with PBL support concept

Defensie Materieel Organisatie 4

Master Thesis

Problem Indication PBL indicates changes in:

The role of the government transaction management to performance management transfer of product support functions (traditional to PBL environment) structural and cultural changes are required assignment of responsibilities processes and procedures knowledge

standing issues with WSM within the NL MOD AMC requirements to effectively control capital assets

Research Objective and Research Question

Defensie Materieel Organisatie 5

Master Thesis

Objective and Research Question Objective

Provide recommendations to NL DMO for organizing weapon system departments responsible for air-based weapon systems in a PBL environment during the sustainment phase in order to control weapon system cost-effectiveness.

Research Question

How to organize a weapon system department within NL DMO for an air-based weapon system with a PBL support concept during the sustainment phase capable of controlling weapon system cost-effectiveness?

Defensie Materieel Organisatie 6

Master Thesis

Research Approach

Case Study

F35 weapon system

organization

Terms of Reference

Problem Definition

Analysis Results

Performance Based

Logistics Approach

Organization Theory

Reflection with

Stakeholders

Conclusions &

Recommendations

Asset Management

Control Approach

Field Study

NL MOD

Problem Indication

Problem Indication

Diagnosis

Design

Defensie Materieel Organisatie 7

Master Thesis

NL MOD

- WSM policy and approach

- Structure Materiel Logistics Organization

- Military Aviation Requirements

- NL MOD restructuring

- Vision NL DMO on PBL

Diagnosis Literature Review and Field Study

Defensie Materieel Organisatie 8

Master Thesis

Controlling Weapon System Cost Effectiveness

Analysis Results (1)

Defensie Materieel Organisatie 9

Master Thesis

NL MOD Weapon System Management

WSM approach -> LCM Systems

Depends on organization goals, process and environment

environment -> complex

strategy -> controlling weapon system cost-effectiveness

process -> reciprocal interdependence (complex)

Requires horizontal organization structural configuration

Transfer of functions from government to PBL provider

Effective management requires balanced responsibilities and authority

matched to organization function

Paradigm: ‘Je bent er van, dan ga je erover’

WSM Knowledge -> sustaining in PBL envrionment

Organization Culture -> Performance Management

Analysis Results (2)

Defensie Materieel Organisatie 10

Master Thesis

Weapon System Departments

Military Aviation Requirements are leading

Military Type Certificate holder -> Type Design

WSM functions vs WSM Responsibility and authority

Transfer of functions to PBL provider

WSM role as System Manager (‘normsteller’) in PBL construct

Analysis Results (3)

Defensie Materieel Organisatie 11

Master Thesis

Problem Definition Effective control Weapon System Cost Effectiveness in existing WSM organization is limited Organization structure not adapted to WSM environment and WSM process Responsibility and authority in the WSM field are not in balance

tri-partite consultation structure is not adapted to PBL environment Insufficient knowledge and experience in PBL construct for major weapon systems Organization Culture and Style are relevant for an effective organization. Both are recommended for further research.

Defensie Materieel Organisatie 12

Master Thesis

Terms of Reference

Effective Control -> adopt AMC appraoch Organization Structure -> adopt horizontal organization structure WSM Responsibility and Authority -> one single actor WSM Consultation Structure -> adapted to PBL WSM knowledge -> specific knowledge, sustaining knowledge to act as a smart buyer/smart maintainer

Defensie Materieel Organisatie 13

Master Thesis

Design (1)

Design Approach

F-35 as a case study Approach -> AMC Business Realization

Design Results (effective control)

AMC to control weapon system cost-effectivess LCM model -> can be constructed (costs, air-based weapon systems, PBL) LCM team -> international environment WSM tools -> Roadmap, WSM portal

Defensie Materieel Organisatie 14

Master Thesis

Design (2) Design Results (WSM organization)

WSM matrix organization structure operational, logistics, engineering, contracts, information management and financial control

OPCO -> WSM responsibility and authority International environment -> air-based weapon systems Integration functions (liaison) -> coordination

Design results (WSD organization)

role WSD -> Type Design dependency on foreign aviation authorities Integrated in matrix organization structure (engineering element) divisional (product oriented) organization structure responsibility and authority -> Military Aviation Requirements

Defensie Materieel Organisatie 15

Master Thesis

Design (Stakeholder Assessment)

Interviews with relevant Stakeholders Purpose

perspective of stakeholders involve stakeholders in design process prevent biased view researcher

SWOT analysis by stakeholders Results

in general stakeholders support the proposed design design needs to be further developed

Limitations

limited number of stakeholders required knowledge

Defensie Materieel Organisatie 16

Master Thesis

Conclusions

effective control of weapon system cost-effectiveness

effective WSM and WSD organization structure

clear WSM responsibility and authority structure

WSM consultation structure adapted to PBL

Sustained WSM knowledge

function of WSD as MTCH and weapon system technical knowledge

Defensie Materieel Organisatie 17

Master Thesis

Recommendations (1)

Weapon System Management

adopt AMC approach to control weapon system cost-effectiveness in PBL environment

ensure access to cost information in a PBL construct

adapt matrix organization structure for WSM

assign WSM responsibility and authority to one single actor

adapt WSM consultation structure to PBL environment

gain experience with PBL support concepts on a system level and take measures to sustain WSM knowledge

Defensie Materieel Organisatie 18

Master Thesis

Recommendations (2)

Weapon System Departments

sustaining MTC

adopt divisional structure of WSD

integrate WSD in WSM matrix organization

approval of foreign aviation (airworthiness) authority

F-35 Weapon System Management

create liason positions in F-35 international sustainment organization -> Product Support Management

ensure insight in sustainment costs and sustainment costs framework -> operational LCM model

Further research

Required organization culture

enlarged WSM (AMC) scope for JSF -> training and support system

Defensie Materieel Organisatie 19

Master Thesis

Questions?