Total Life Cycle Management Key Considerations: A Logisticians Perspective Southern Methodist University. Dr. Russell A. Vacante, Defense Acquisition University April 3, 2008. Introduction to TLCSM Key Considerations When Implementing TLCSM System Engineering Interoperability
Total Life Cycle Management Key Considerations: A Logisticians Perspective
Southern Methodist University
Dr. Russell A. Vacante,
Defense Acquisition University
April 3, 2008
Introduction to TLCSM Logisticians Perspective
Key Considerations When Implementing TLCSM
Reduce Total Ownership Cost (RTOC)
Supply Chain Management
DoD Interpretation of Supply Chain Management
ConclusionTotal Life Cycle System Management
INTRODUCTION Logisticians Perspective
TLCM is an end-to-end, integrated and iterativesystem engineeringprocess
Logisticians need to be involved continuously inall phasesof the total life cycle process
Sound system engineering practices in the TLCM process willenhance the supply chain managementfunctionality
Metrics Matter – if you can’t measure performance outcomes customer satisfaction becomes a guessing gameTotal Life Cycle System Management (TLCM)
Key Consideration #1
What is it?
What it does?
How to do it?
What Is The Systems Engineering Process? Logisticians Perspective
Transformsrequirements into a system architecture through an iterative and recursive design & development process
Integrates performance, reliability, maintainability, supportability, survivability, and other design goals into the system
Disciplined approachused to assure process compatibility & product (hardware & software) interoperability
Ensurescompliance with design throughout life
Develops a Logisticians Perspectivetotal systemdesign solution
Integrate all life-cycle requirements
Balance cost, schedule, performance & risk
Technical discipline throughoutlife cycle
Generates and tracks technical information needed for decision making
Ensures essential technical things get done
Verifies technical solutions satisfy requirementsWhy use the SE Process?
Who uses the SE Process? Logisticians Perspective
SE Process Supportability Inputs Logisticians Perspective
Introduction to System Engineering Logisticians Perspective
2005 Chevrolet Corvette Logisticians Perspective
Design Solution Logisticians Perspective
Logistician’s Role in Design Solution Includes: Logisticians Perspective
Develops a total system design solution Logisticians Perspective
Balances cost, schedule, performance, & risk
Integrates all life-cycle requirements (cradle to grave)
Provides technical discipline throughout the life cycle
Ensures essential technical activities get done
Generates, tracks, and archives technical data needed for decision making
Verifies technical solutions satisfy needWhat the SE Process Does
SE in the Defense AT&L Logisticians Perspective
Life Cycle Management Framework
Design Logisticians PerspectiveSystem Engineering in SDD
Fabricate, integrate & test
Demonstrate System to
Specified User Needs &
Interpret User Needs,
Performance Specs &
Functional Specs &
System Verification Plan
System DT&E, LFT&E & OAs
Verify System Functionality
& Constraints Compliance
Performance Specs into
CI Functional (Design to)
Specs and CI Verification Plan
Integrated DT&E, LFT&E &
EOAs Verify Performance
Compliance to Specs
Evolve CI Functional
Specs into Product
(Build to) Documentation
And Inspection Plan
Code to “Build-to”
Supportability Analyses Logisticians Perspective
Tailored application of engineering efforts during acquisition, to identify/solve logistics issues through iterative SE process of definition, synthesis, tradeoff, test & evaluation
LOGISTICS MANAGEMENT INFORMATION (LMI):
Documentation associated with supportability analyses
Conceptual Design Logisticians Perspective
Detailed Design & Development
Determine Logistics Support Requirements
Design for Sustainment
Acquire Logistics Support
Provide Life Cycle Logistics Support
DeactivationLogistics Life Cycle
Interoperability Logisticians Perspective
Key Consideration #2
Interoperability is the ability of independent systems to exchange meaningful information and initiate actions from each other, in order to operate together to mutual benefit. In particular, it envisages the ability for loosely-coupled independent systems to be able to collaborate and communicate.
Ref. ISO/IEC 21000-6 Dictionary
Interoperability is essential in the modern domestic/military environment.
Standardizationis essential for interoperability.
Commonality is one outcome of standardization.
Standardization and commonality can make logistics support more effective, less costly, easier, and faster.
Standardization and commonality can improve readiness, availability, and reliability and supportabilityInteroperability, Standardization, & Commonality
Compatibility is something less than interoperability. domestic/military environment.
Compatibility means systems or units do not interfere with each other’s functioning.
Itdoes notimply the ability to exchange services.Interoperability & Compatibility
Interoperable systems are by necessity compatible, but the converse is not necessarily true.
Although interoperable systems can function independently, an integrated system loses significant functionality if the flow of services is interrupted.Interoperability and Independence
An integrated family of systems must be interoperable, but interoperable systems need not be integrated.
Interoperability an integrated system loses significant functionality if the flow of services is interrupted. lies in the middle of an “integration continuum,” somewhere between compatibility and full integration.
Integration ContinuumInteroperability, Compatibility, & Integration
Mitigation opportunities an integrated system loses significant functionality if the flow of services is interrupted.
New systems will need to be interoperable
Modifications to existing systems will need to enable interoperability.
New acquisitions and contracts will need to include interoperability and address standardization and parts management.
Standards are needed to ensure interoperability between the newest technical systems and legacy systems.Addressing 21st Century Interoperability Requirements
Reducing Total Ownership an integrated system loses significant functionality if the flow of services is interrupted.
Key Consideration #3
Life-Cycle Cost Effectively an integrated system loses significant functionality if the flow of services is interrupted.
For a Given Design
Actually ExpendedEarly Decisions Affect Life-Cycle Cost
Out of Service
Uses of LCC: an integrated system loses significant functionality if the flow of services is interrupted.
Input to Acquisition Decision
Source: Money Magazine 3/96
5 YR LCC
Honda Civic CX
5 YR LCC
Pontiac Firebird Formula
SVT Mustang Cobra
life-cycle Costs based on depreciation, financing, insurance, maintenance, repairs, registration fees, and fuel costs.
Key Consideration #4
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as the manufacturer, the supply chain includes all functions involved in receiving and fulfilling a customer request. These functions include, but are not limited to, new product development, marketing operations, distribution, finance, and customer service.
Source: Chopra and Meindl
A basic supply chain consists of a company, and immediate supplier, and an immediate customer directly linked by one or more of the upstream and downstream flows of products, services, finances, and information…An ultimate supply chain includes all the companies involved in all upstream and downstream flows of products, services, finances, and information from the initial supplier to the ultimate customer
Supply chain management is the integration of business processes—from the end user through the original suppliers—that provide products, services, and information that add value for the customer.
Source: Council of Logistics Management
A supply chain consists of organizations involved in the management of flows of products, services, and information.
Source: Anderson, Britt, and Favre
Involves Coordinated Management of Logistics Processes
Supply Chain Management Metrics an integrated system loses significant functionality if the flow of services is interrupted.
Metrics are simple.
If metrics require a lot of explanation and definition, then collecting data, and translating that data in to actions becomes difficult.
Easy-to-understand metrics have a strong impact on the process and the people who use it.
Why Develop Metrics at All? an integrated system loses significant functionality if the flow of services is interrupted.
How do you know what you know?
Metrics an integrated system loses significant functionality if the flow of services is interrupted.
A metric is a standard measure to assess
performance in a particular area.
A performance measure, is an
indicator which conveys information on
the level of success or achievement
of a program or activity.
SMART Metrics an integrated system loses significant functionality if the flow of services is interrupted.
Specific and targeted to the area being measured.
Accurate and complete data is collected and correlated against a standard.
Allows corrective actions to be taken or maintained.
Don’t measure things that are not important!
Data is available when it is needed.
Developing effective an integrated system loses significant functionality if the flow of services is interrupted.
metrics is not easy!!
Although many current metrics provide useful information, they don’t provide senior managers with a sense of how well the supply chain is performing.
Don’t measure total supply chain performance only wholesale performance. Others simply measure the implementation of an initiative without any link to the performance metrics that should indicate the resulting supply chain improvement.
Not linked or correlated to one another so managers can consider important supply chain relationships. For example, reduced inventory may not be beneficial if readiness rates are declining.Supply Chain Metrics
Categories of SE Metrics they don’t provide senior managers with a sense of how well the supply chain is performing.
Network-Centric Warfare they don’t provide senior managers with a sense of how well the supply chain is performing.
Global Information Grid
Focused and Agile
Today - OIF
More is better
Large amounts of material measured in days of supply
Use massive inventory to overcome uncertainty in demand and supply
Mass inventories slow down operational flexibility and
Inventory is dynamically positioned throughout
Uses transportation flexibility and modern IT to handle demand uncertainty
Supports distributed, uncertain operations
On-time is better
Inventory is reduced to a minimum and kept moving
Use demand prediction and static optimization to purge uncertainty
Speed / Time Definite Delivery
Days of Supply
Flow TimeDoD Adaptation of SCM
Key Consideration #5
Wartime & Missions Other than War they don’t provide senior managers with a sense of how well the supply chain is performing.
Points, Maintenance &
Supply Depots, Other
Supply, Maintenance &
The Logistics Process
RequirementsDoD Structure Creates SCM Challenge
Actions You Can Take: they don’t provide senior managers with a sense of how well the supply chain is performing.
“You can’t solve a
problem with the same
kind of thinking that