1. Research, Development & Engineering Command Mr.. C. James Head APEX Lab Manager Aviation & Missile Research, Development & Engineering Center Technology to the Warfighter Quicker AMCOM LCMC Center for Innovation in Logistics and Systems (CILS) Information Briefing to SOLE Luncheon An AMRDEC Post-Milestone C Initiative Modeling, Simulation and Analysis For Product Support Integration, Supply Chain Optimization, and Logistics System Readiness COL (R) NORM MYERS SENIOR LOGISTICS SYSTEMS ANALYSTS SAIC SUPPORT Aviation & Missile Research, Development & Engineering Center

2. This is an Unclassified Information Briefing AMCOM LCMC Center for Innovation in Logistics and Systems (CILS)

3. AGENDA

• Introduction

• The Logistics Environment

• • • Turbulence/Opportunity/Challenge

• • • OSD Logistics - RBS

• • • DOD PBL Guidance to PMs

• • • Army Logistics Enterprise - SALE

• • • AMRDEC focus on Post Milestone C M&S

• Logistics Consortium

• The Center for Innovation in Logistics & Systems

• Ongoing Initiatives linking CBM and inventory optimization

• CILS Oversight ESC

• Summary

• Whats next? Conditioned Based Maintenance & A Strategic Supply Chain Approach for Inventory Management

4.

• Why am I still throwing billions down this black hole called spares? General Eric Shinseki, CoS, US Army

• Accelerating change requires extricating ourselves from antiquated cycles and processes General Paul J Kern, CG US AMC

• We must operationally link logistics support to maneuver in order to produce desired outcomes General Peter J. Schoomaker, CoS, US Army

5. Turbulence/Challenge/Opportunity

• DoD mandate to adopt Performance Based Logistics

• • Buying readiness

• • PM Sustainment

• • Alternate Sparing methodologies

• Precious Metal shortages

• Remanufacturing locations

• ARFORGEN / Army Sustainment Command (ASC)

• Readiness Based Outcomes

• Demand vs. Consumption

• Forecasting & optimization tools

• Data Collection & sample data collection

• "transactional logistics vs. managing the ERP

6. Turbulence/Challenge/Opportunity

• Cold War Army tiered readiness, traditional force structure

• ARFORGEN expeditionary, globally deployable, rotational readiness

• Do we understand the causes of Variability & Uncertainty?

• Are we subject to boom and bust cycles with extremely long lead times

• Do we understand mission-based forecasting and associated spares consumption patterns which contribute to poor operational and tactical support planning and cost- in effective retail stock policy

• Are we proactively managing readiness based retrograde

• Is the Supply Chain truly integrated?

7.

• Opportunities

• Exploit Multi-Indentured Structures

• Exploit Multi-Echelon Structures

• Use advanced Optimization Algorithms and Forecasting Methodologies

• Integrate Strategic and Tactical Planning

• Develop interoperability between RBS

• systems at Services/Agencies

• Beginning 3 initial COTS RBS

• implementations this year

OSD Priority - Readiness Based Sparing Graphic Courtesy of MCA Solutions Better answers to what do I need, how much do I need, and where will I need it Planning Horizon Geographic Product Customer RBS

8. Performance-Based Logistics (PBL) is DoD's preferred approach for product support implementation . . . The PM shall be the single point of accountability for accomplishing program objectives for total life-cycle systems management, including sustainment . . . PMs shall consider supportability , life cycle costs , performance, and schedule comparable in making program decisions. Supportability, a key component of performance, shall be considered throughout the system life cycle. . . Program managers should establish a Performance Based Logistics approach in fulfilling their product support, integrated supply chain management, and other Life-Cycle Logistics responsibilities. Program managers examine and implement appropriate, innovative, alternative logistics support practices, including best public sector and commercial practices and technology solutions. -- all of the metrics used to measure the weapon system [will be] correlated to three primary vectors: reduction in down time rates, reduction in demand rates, and reduction in total cost of ownership Background: The PMs New Responsibilities

9. Background: Analytical Manpower Trends in AMC

10. MTS TC-AIMS II T Block III retire, TIS-TO, AMFT, DS2T, TC ACCIS Block IV (TBD) Block V(TBD) retire AALPS MTS+ MTS II GTN MC4/TMIP GFEBS (SAP implementation) M P eMILPO Block II GCSS-ARMY (F/T) Inc I Fielding

• SPBS-R

• PBUSE

• ULLS-S4

• ULLS-A

• ULLS-G

• SAMS-1

• SAMS-2

• SAMS-I/TDA

• SAAS-MOD

• SARSS-1

• SARSS-2AD

• SARSS-2AC/B

• SARSS-GW

• ILAP

• LIDB

• FMTP

• PBUSE

• ULLS-A

• SAMS-E

• SAAS-MOD

• SARSS-1

• SARSS-2AC/B

• SARSS-GW

• LIW (Decision to continue-TBD)

• FMTP

• PBUSE

• ULLS-S4

• ULLS-A

• ULLS-G

• SAMS-1

• SAMS-2

• SAMS-I/TDA

• SAMS-E

• SAAS-MOD

• SARSS-1

• SARSS-2AC/B

• SARSS-GW

• LIW

• FMTP

• GCSS-ARMY (Field/Tactical) Implement CDD Block I functionality

• PLM+ - Implement XI interfaces to LMP and external systems

Current Tactical

• LMP (2003)

• • CECOM

• • TYAD

• • DFAS

• • HQAMC

• CCSS

• SDS

Current National Legend -Fielding date -Logistics C2 -NIMS -Transportation -Medical -Personnel -Finance -NAMI PSID -IFB -Enablers Log C2 N M P $ T $ BCS3 Log C2 6.3 6.4 Army-USMC-Joint JC2 merge N DLA BSM (SAP implementation) GFEBS (Incr II) HRESB DIMHRS GFEBS (Incr I) Concurrent fielding with GCSS-Army & IFB ERP JMC AMCOM TACOM

• LMP

• CCSS

• SDS

TACOM AMCOM AFSC/JMC

• LMP

• • AMCOM/TACOM/AFSC

Eliminated 176 Bridges and uniques Will Eliminate 855 Bridges and uniques Will Eliminate 1149 Bridges and uniques 2d Deployment 3 rd Deployment & FOC

• Phase out Summary:

• 4 CCSS instances shut down

• 105 SDS apps shut down

• 2180 bridges & uniques eliminated

SALE N N NAMI PSID retained until GCSS-Army Fielding complete IFB Fieldingconcurrent with GCSS-Army IFB Task Order I Enablers VSAT, CAISI, J-AIT E Migration To Enterprise Solution Enterprise Logistics Automation Transition Plan Path to One Logistics Integrated Enterprise . . . LMP PLM+ GCSS-A Business Warehouse (BW) MDM ALCM PDM QM EH&S C&A XI ERP JC2 GCSS-CC/JTF

11. AMRDEC Focus on Post Milestone C M&S User Needs & Technology Opportunities LCC Committed at Each Milestone Decision Actual Cost Expended 100 72 20 8 RDTE O&S Production A B C Reference: AUSA Pamphlet Transforming US Army Logistics A B C (Program Initiation) Concept Refinement Technology Development System Development & Demonstration Production & Deployment Operations & Support IOC FOC Concept Decision Design Readiness Review FRP Decision Review LRIP/OT&E Pre-Systems Acquisition Systems Acquisition Sustainment

12. Logistics Readiness and Early Warning System AMRDEC R&D Models & Sims Spt LIW IDA / RAND /LMI Analyses ASC AMSAA Opportunity - Partnering with AMCOM LAISO AMCOM CAD FCS LOGSA CBM DW X $ Goal: Max Profit Subject to Readiness Constraint Performance Agreement Use of Readiness Based Metrics & Incentives to "Align" Both Goals: PM Readiness & CLS Profit $ $ X Analytical Framework CLS Providers Automated Monitoring Management Assessment Policy Response Feedback Alert Warning

• Readiness trends and forecasts

• Supply chain metrics

• Logistics system readiness parameters

• Corroborate and validate alerts

• Assess near and long-term implications

• Integrate empirical evidence with human judgment

• HQDA reviews

• Analyze and implement cost-effective options

• Minimize recognition and response bags

• PPBES implications (resources-to-readiness)

Planning Objective Execution Performance Time PEO/PMs LOGSA LOGSA CHANNEL STAFF AMCOM IMMC

13. COMPLEX INTEGRATION & LEADERSHIP ENVIRONMENT LMI Analyses IMMC STAFF ERP Functional Expertise Logistics Readiness and Early Warning System ASC AMRDEC R&D Models & Sims Support Technical Expertise RAND Analyses IDA Analyses CLS Providers LIW PEO/PMs $ X K Goal: Max Profit Goal: Meet (Exceed) Readiness at Fixed Cost X $ LAISO LOGSA CHANNEL STAFF Performance Agreement Use of Readiness Based Metrics & Incentives to "Align" Both Goals: PM Readiness & CLS Profit $ AMSAA CAD G3 $ LOGSA CBM DW A o A o

14. Bottom Line

• Independently operating, uncoordinated and unsynchronized stages within the supply chain are creating pernicious bullwhip effects including large RO, long lead times, and declining readiness

• Lack of a central supply chain management and supporting analytical capacity results in multi-agency, consensus-driven, bureaucratic solutions hindered by lack of an Army supply chain management science and an enabling analytical architecture to guide Logistics Transformation;

• Lack of an engine for innovation to accelerate then sustain continual improvement for a learning organization.

• Unable to relate investment to readiness

• Not leveraging / limited use of the power of logistics models/simulations (readiness based sparing) & analytics in support of post milestone C readiness outcomes.

• Not integrating/capitalizing on the investments/accomplishments of FFRDCs, academia and the many logistics organizations physically located on Redstone Arsenal.

15.

• Unfortunately, current readiness levels reflect an Army in crises . . . cannibalization of equipment has left the Army without a single combat brigade in the continental United States ready for all its wartime missions . . . this problem developed over time due to mismanagement . . . Representative Ike Skelton, Chairman, House Armed Services Committee, FEB 2007

• We have a serious problem looking to the future . . . the way we are functioning today is not going to be satisfactory for the challenges we face in the future, and knowing that, we must change. General Peter Pace, Chairman, Joint Chiefs of Staff, 20 June 2006.

16. Fully Integrated Supply Chain Engine for Innovation Continuous Improvement CILS IMMC CAD G3 AMRDEC Enterprise Resource Planning Command Analysis Modeling and Simulation AMCOM LCMC Center for Innovation in Logistics & Systems

17. AMCOM LCMC Benefits Through Integration & Innovation !! "Mobilize & Integrate the Logistics Community to Maximize the Power of Logistics Analysis, Models and Simulations" X $ IMMC CAD AMRDEC AMCOM CHANGE AGENTS

• PARTNERS

• AMSAA Systems Analysis

• LAISO Business Process

• LOGSA Data Mgmt

• CAD

• CBM

SOURCES OF INNOVATION

• USERS

• CAD

• PEO/PM

• ASC

• IMMC

• LOGSA

• IMMC

• AMRDEC

• CAD

• LMI

• RAND

• IDA

• ACADEMIA

• COMMERCIAL RESOURCES

CILS A o

18.

• Joint IMMC, G3 CAD & AMRDEC SSDD PBL sustainment initiative

• Integrates & leverages the expertise and work performed by FFRDCs, Academia, AMCOM logistics partners and commercial best practices in support of AMCOM LCMC readiness challenges

• Maximizes the power of models & simulations in support of readiness based outcomes and PM planning needs

• Integrates seasoned Logisticians & ORSA staff with powerful tools

• Serves as an Engine for Innovation test bed for what if drills & systemic process improvement

• Rigorously explores, tests and recommends alternative logistics support practices (PM Spt) Continuous Improvement Program

• Provides cost benefit analyses and alternatives by leveraging the AMSAA SESAME & Life Cycle models and commercial products

• One stop shopping for product support integration, supply chain optimization and logistics system readiness analytical support & tools

AMCOM LCMC CILS

19. CILS: Functions, Components, and Products Academia Corporate Research Tactical Units Academic Institutions Commercial Sector Private (1) Magnet, Filter and Repository for Good Ideas (2) Modeling, Simulation & Analysis of Complex Systems Public (3) Transforming Organizations & Managing Change Professional Organizations Professional Societies SOLE/ORSAL FFRDCs Non-Profits

• Organizational Design

• Supply/Value Chain

• Workforce Development

• Technology Implications

• Innovation & Productivity

• Gain

• R & D

• System Dynamics Modeling

• Large Scale (LS) System

• Design, Analysis, and

• Evaluation

• Systems Simulation,

• Modeling and Analysis

• Cost Benefit Analyses

• Risk Reduction & Mitigation

• Research, Studies, and

• Analysis

• Technical Support

• Education & Training

• Technical Support

• Change Management

Task Organization for Continuous Improvement

20. CILS END STATE ORGANIZATION AMSAA PEOs & PMs IMMC PBL Support Team SCM & LSA Team Data Collection & Analysis Team LOGSA ASC LAISO G3 CAD AMRDEC CILS

21. Fully Integrated Supply Chain Engine for Innovation Continuous Improvement CILS IMMC CAD G3 AMRDEC Enterprise Resource Planning Command Analysis Modeling and Simulation AMCOM LCMC Center for Innovation in Logistics & Systems Linking CBM to Supply Chain Innovation

22. Center for Innovation in Logistics & Systems CBM DW

• Mission Based Forecasting

• Near Real Time Consumption

• Requirements

• Supply Chain Optimization

• Logistics Enterprise Early Warning System

CILS Supply Chain Modeling, Simulation & Logistics Systems Analysis CCSS/LMP Performance Agreement Use of Readiness Based Metrics & Incentives to "Align" Both Goals: PM Readiness & CLS Profit Repair Part Supply Data

• Updated Replacement Rates

• Updated Essentiality Codes

• MBF Data Updates

• Consumption Based

• Inventory Adjustments

Planning Objective Execution Performance Time

23. Fully Integrated Supply Chain E ngine for Innovation Continuous Improvement CILS IMMC CAD G3 AMRDEC Enterprise Resource Planning Command Analysis Modeling and Simulation CILS ESC CHAIR: Dep to the CG AMCOM

24. Logistics Community Focused on AMCOM CBM Readiness Challenges Supply Chain Analyses & What if Modeling Support Optimization & Stockage/Buy Recommendations Measurable & Repeatable Processes Applicable Now & Future DOING BUSINESS DIFFERENTLY !! Readiness % $ CILS

• Data

• CCSS

• PEO

• SDC

• LOGSA

• FFRDC

CILS PBL Support Team CILS AMSAA PEOs & PMs AMCOM IMMC SCM & LSA Team Data Collection & Analysis Team LOGSA G3 CAD Task Organized Logistics Consortium LAISO

• Mission Based Demand Forecasting (LMI)

• Readiness Production Function (RAND)

• Wholesale Operations (IDA)

• Procurement (UAH)

• Retrograde (LOGSA)

STRATEGIC OUTREACH

• COTS & GOTS

• SAS

• MCA

• SESAME

• Com Best Practices

• EDA

• DCB

CBM DATA FEED Priorities MSN Based Forecasting Cost Analyses What if? Consumption Data

25. Fully Integrated Supply Chain Engine for Innovation Continuous Improvement CILS IMMC CAD G3 AMRDEC Enterprise Resource Planning Command Analysis Modeling and Simulation AMCOM LCMC Center for Innovation in Logistics & Systems Linking CBM to Supply Chain Innovation

26. Production System Engineering & Development Technology Development Concept Refinement C&S What has Happened? What Could Happen? Make it Happen! 2002 2003 2005

• Phase 1

• Segment the Logistics Structure & Processes for Analysis

• Adapt Enterprise Supply Chain Framework for Integration [~$200K]

• Phase 2

• Identify "Readiness Production Function"

• Develop "Mission Based Forecasting"

• Validate "Readiness Based Sparing"

• Incorporate Multi-Echelon Optimization & "Synchronized Retrograde Operations"

• DDSN & LEWS [$1.0M]

• Phase 3

• Provide COTS RBS Solutions for PBI

• Develop Large-Scale MODSIM Capacity for SC Enterprise

• Implement CPBL Organizational Design

• Strategic Outreach & Research Partnerships for Continuous Improvement [$200K]

Project Background: Phase 3 Phase III (05- ): Enabling Logistics Transformation

• Near-Term Implementation

• Multi-Echelon RBS for PEO/PMs

Demand

• AMCOM Readiness Based Sparing

• Analytical Demo - UH60s 101 st ABN DIV

• Field Test - Fort Rucker AVN School

• Supply Chain Analyses

• Mission Based Demand Forecasting (LMI)

• Readiness Production Function (RAND)

• Wholesale Operations (IDA)

• Procurement (UAH)

• Retrograde (LOGSA)

I . II. Unit Acquisition III. Reverse Logistics Retail Wholesale III.

• MODSIM

• Integration for

• Long-Term SCM

• AMRDEC/SAIC Center for PBL

A B C

27. Multi-Echelon Readiness Based Sparing (MERBS) RETROGRADE ACQUISITION DEMAND WHOLESALE UNIT RETAIL

• Training

• Combat Operations

• Stability Operations

• Humanitarian Support

• Domestic Support

Operational Demand

28. SUMMARY

• AMRDEC/IMMC/G3 CAD CILS is working together to:

• • • • Rigorously evaluate/test/experiment & explore alternative logistic support practices (including best public sector and commercial practices and technology solutions, early warning options) in support of PBL and PM guidance

• • • • Maximize/leverage the power of logistics models/simulations (readiness based sparing) & analytics in support of post milestone C readiness outcomes (Product Support Integration, Supply Chain Optimization, Logistics System Readiness, War Room requirements)

• • • • Provide logistic ORSA skills, tools and analytical support

• • • • Establish CILS post milestone C sustainment technical support capability to explore and potentially implement RAND, LMI, IDA and AMSAA recommendations and commercial successes/best practices

• • • • Routinely bring together a consortium of logistics partners (AMCOM staff, LOGSA, PM Log staff, ASC, LAISO, AMRDEC, FCS Dep Supportability, AMSAA) to:

• • • • • Integrate/coordinate/communicate logistics issues

• • • • • Recommend logistics priorities/directions for CILS

• • • • • Review/approve PBL COE recommendations

• • • • • Advocates for logistics transformation/PBL policy/standards

29. SUMMARY

• AMRDEC/IMMC/G3 CAD CILS working together to:

• • Serve as a magnet, conduit and clearing house for logistics and Supply Chain initiatives; enable innovation; accelerate and sustain continuous improvement.

• • • • Evaluate/recommend Business Intelligence tools, data sources and potential uses

• • • • Identify and recommend Organizational Change transition to market

• • • • Leverage the work initially directed by MG Dodgen

CILS

30. Research, Development & Engineering Command Mr.. C. James Head APEX Lab Manager Aviation & Missile Research, Development & Engineering Center Technology to the Warfighter Quicker AMCOM LCMC Center for Innovation in Logistics and Systems (CILS) Information Briefing to SOLE An AMRDEC Post-Milestone C Initiative Modeling, Simulation and Analysis For Product Support Integration, Supply Chain Optimization, and Logistics System Readiness COL (R) NORM MYERS SENIOR LOGISTICS SYSTEMS ANALYSTS SAIC SUPPORT Aviation & Missile Research, Development & Engineering Center CILS