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Delivering the Ever Elusive RIGHT Part. Brief to the 2012 NAOUG Ottawa, Ontario, Canada May 2012 Pat Read & Nick Oklobdzijia , Pennant Canada . Objectives.

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delivering the ever elusive right part

Delivering theEver Elusive RIGHT Part

Brief to the 2012 NAOUG

Ottawa, Ontario, Canada

May 2012

Pat Read & Nick Oklobdzijia, Pennant Canada

objectives
Objectives
  • To examine Materiel Identification (MI) as a key enabler to selecting RIGHT parts across Materiel Acquisition and Support (MA&S) Processes for defense departments (based on Canada’s DND)
    • Key MI Concepts
    • MA&S Value Chain
    • Some Existing Challenges
  • Present for discussion some evolving concepts for possible future MI across DND
    • For an ERP-enabled, increasingly ISSCF(PBL) support environment
  • Based on Pennants experience working with DND on MI since 2009
    • Not sanctioned or endorsed

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first some mi concepts
FIRST Some MI concepts

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materiel item materiel concept
Materiel ITEM & Materiel CONCEPT
  • Some MA&S processes (and related identifiers) deal in a Materiel ITEM
    • A specific physical item is removed, installed, repaired, issued, purchased, etc
  • Some MA&S processes deal in a Materiel CONCEPT
    • A concept or requirement for similar items is specified, solicited, or requested as replacements

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materiel concepts
Materiel CONCEPTS
  • Can be two types
    • Related to a particular end-use (System) requirement or specification
    • Related to a common-to-many uses (Product/Part) requirement or specification
  • Will have associated Interchangeability lists of suitable Materiel ITEMS
    • Which may VARY depending if the list applies to an end-use or common requirement/specification

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source identifying materiel items
Source Identifying Materiel ITEMS
  • May be identified to DND by a range of providing source identifiers, such as
    • Original item manufacturer PN; platform/system integrator PN; 3rd party provider PN, etc
    • As well as company/source organization identifiers (often NCAGE)
  • May be further uniquely identified by
    • Batch/lot number & Serial number

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about nsns
About NSNs
  • ACodP1 - defined as a Materiel CONCEPT Identifier (MCI) for a NATO Item of Supply (IOS)
  • Can contain a NATO common requirement or specification and a list of NATO-agreed interchangeable Materiel ITEM Identifiers (MII) – usually source PNs – deemed suitable by a designated NATO authority
  • Has been used as an MII in some NATO supply systems, including CFSS

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the mix varies
The Mix Varies…
  • DND Navy & Army Primary Systems
    • About 50% of items have NSNs
    • DND Leo2 about 20,000 of 25,000 items have NSNs by Germany
      • Only about 5,000 will be IOS based on Canadian Support concept
  • Almost all Repairable assemblies and End Items have NSNs
  • Few Commercial Vehicle Items and many Unforecast Operational Requirement (UOR) support items have NSNs
  • Most locally bought & supported items do not have NSNs

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the canadian government cataloguing system cgcs the nato codification system ncs
The Canadian Government Cataloguing System (CGCS) & the NATO Codification System (NCS)
  • CGCS is the DND-managed system for our national codification bureau (NCB, DSCO) within the NCS
  • NCS is a collation of 34 member (74 user) nation NCB NATO numbers
    • Generally, 1st codifying or country of manufacture = resp TA for NSN
  • CGCS is about 1.2 Million NSNs used by Canada
    • 2/3 foreign TA controlled, by 6 main nations
    • 6-7 Million industry PNs from about 100,000 vendors
  • Does not include most local and commercial/manufacturer numbers not assigned NSNs
    • Less 1-200,000 with PSCNs

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an ma s value chain
An MA&S Value Chain

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slide11

Adapted from the Supply Chain Council DCOR SCOR & CCOR and DND KNet Models

A Materiel ID Perspective

a simplified view as
A Simplified View As….
  • There are 1000s of DND Equipment System Design Chains, often with shared interests in common items
  • The DND Supply Chain links to 100,000s of Industries plus Allies
  • Dynamic data on many Millions of DND Materiel Items of Interest
  • Does not show control issues

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so which right is right
So Which Right is Right??
  • NATOs Common Item Need
  • Industries Common Item or System Need
  • DND Supply Chain by Common Service Need
  • DND Technical Authorities by System Need

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dnd materiel of interest
DND Materiel of Interest
  • Must cover the full range of MCIs and MIIs that are used within its processes and that are synchronized with Industry and NATO
  • Three main levels, based on the support solution for the system
    • The Items of Supply (IOS) – nationally and locally – that will flow through the DND Supply system, particularly those reprovisioned and exchanged with NATO allies
    • DND Maintenance-Only Items (MOIs) – that may be repaired or reported on locally, but do not usually flow through supply
    • Non-DND Support Items (Others) – other items within the structure that are not included above.

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design chain materiel concepts items
Design ChainMateriel Concepts & Items

Design & Build

END ITEM

Design & Build

SUPPORT

Apply

Support Concept

?

IOS?

MOI?

66K

MCIs

66K

MIIs

=

Others off AC?

Others on AC?

66K MCIs + new ones for Support Items and Packaged Parts

Only 3.5-14K IOS

100k+ MIIs

some existing challenges
Some Existing Challenges

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key current system challenges
Key Current System Challenges
  • Control of MCI lists often rests outside DND
    • 2/3 of NSNs are foreign TA controlled
  • The ERP solution is configured to work with NSNs for both MCI and MII
    • Non-NSN materiel converted or treated as text; substitutions not done well
    • Loss of PN reporting required for some processes
  • Different MCI lists used by different processes
    • Maintainer uses tech pub RIGHT list vs Proc/Supply using NSN RIGHT list
  • Dynamic datasets in ISSCF that are PN-based

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slide18

Complex Assets

“As Is” Situation

RFP by NSN

Contract

by MPN

Receive

MPN

Complies with GOC’s NATO

interoperability commitments.

Change from

MPN to NSN

Procurement

Not fully optimized to meet

customer requirements.

Parts Issue

NSN

Inventory

NSN

Replenishment

NSN

The NSN parts

list and list of

acceptable

alternatives will

not always be in

agreement.

Maintenance

MPN

Parts Request

MPN

Record NSN for

Repaired Eqpt

Maint Needs

Work

Order

NSN

Available

Eqpt

Acceptable

Alternatives

MPN

Equipment Parts

Book – by MPN

lack of pn reporting
Lack of PN Reporting
  • Seriously degrades Supportability Analysis of causes and resulting actions
    • Faulty part  stock purges
  • Affects ability to do Airworthiness traceability
    • Delaying AirForce adoption of ERP
  • Hides most non-NSN activity as text info
    • Text buys vs PN orders

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towards a better future
Towards a better?future

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control
Control
  • Final control of RIGHT needs to be vested in DND TAs
    • Can be “EASY BUTTON” acceptance of NATO or industry MCIs or custom ones where needed
    • Both initially and ongoing
  • ONE RIGHT MCI used across the system

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process based materiel identifiers
Process-Based Materiel Identifiers
  • The MI used and reported/recorded by process needs to reflect the MI used in that process and in a linked causal chain
  • Some processes are MCI based
    • request part, solicit buys, search inventory
  • Some Are MII based
    • Remove/install part, pick/issue part, contract/receipt part
  • Cause Chains Map Different Identifiers
    • Removed part A, used MCI list 24, got suitable part B

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use of nsns
Use of NSNs
  • NSNs remain a fundamental tool for MI with and within NATO and DND
  • NSNs may be the MCI or may be an external reference list against which the MCI subset is compared for those MCIs where NSNs are required.
    • Primarily centrally managed, exchanged with allies, reprovisioned regularly, “significant”
  • PNs would continue to carry NSNs as attribute data where avail
    • To retain and enhance interoperability
  • Efforts to align NSN with MCIs would be ongoing, but MCIs internally allow DND to run effectively with whatever data they have.

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external mcis inventory
External MCIsInventory

NATO

DATA

INDUSTRY

DATA

External Reference List (NSN?)

AltnPNs

1

2

3

4

5

6

System TA

Decisions

MCI Sys A

MCI Sys B

MCI Sys C

1

2

2

3

4

1

2

3

Inventory

Locations

3

4

5

6

4

5

6

Supported

Systems

C

B

A

B

A

C

??

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slide25

Complex Assets

“To Be” Situation

RFP by NSN

Contract

by MPN

While transacting enterprise supply, warehousing and/or replenishment functions using MPN’s, the GOC is still able facilitate exchange with allied nations and comply with NATO interoperability commitments because the NSN is retained as a secondary identifier for inventory stock.

Receive

MPN

Enter into

Stock As MPN

Procurement

Parts Issue

MPN

Inventory

MPN

Replenishment

MPN/MCI

Maintenance

MPN

Parts Request

MPN/MCI

Record MPN for

Repaired Eqpt

Maint Needs

Work

Order

MPN

Available

Eqpt

Acceptable

Alternatives

Equipment Parts Book

MPN

slide26

Complex Assets

“To Be” Situation

The MPN/MCI option supports three main supportability objectives:

Maintenance needs are synchronized with stock holdings and replenishment activities.

Facilitates assessment of MII/MCI performance against end item.

Recall/purge of bad part (by MII) is easily located in current stock holdings and can also be traced to end item through work order material issues.

RFP by NSN

Contract

by MPN

Receive

MPN

Enter into

Stock As MPN

Procurement

Parts Issue

MPN

Inventory

MPN

Replenishment

MPN/MCI

Maintenance

MPN

Parts Request

MPN/MCI

Record MPN for

Repaired Eqpt

Maint Needs

Work

Order

MPN

Available

Eqpt

Acceptable

Alternatives

Equipment Parts Book

MPN

supply chain mi future

Complex Assets

RFP by MCI

Contract

by MPN

Supply Chain MI – Future?

Procurement

Receive

MPN

Supply & Maintenance

Procurement

Place into

Stock

Supportability

Replenishment

Action

Parts

Issue

Inventory

Comply with GOC’s NATO

interoperability commitments.

NSN

Lists

Maintenance

Parts

Request

Record Consumed Parts

Against Repaired Eqpt

Maint Needs

Work

Order

Technical Data Management

Available

Eqpt

Acceptable

Alternatives

MCI

Equipment Parts

Book – by MPN

discussion
discussion

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