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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

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Total Life Cycle Management Key Considerations: A Logisticians Perspective

Southern Methodist University

Dr. Russell A. Vacante,

Defense Acquisition University

April 3, 2008


Total life cycle system management

Introduction to TLCSM Logisticians Perspective

Key Considerations When Implementing TLCSM

System Engineering

Interoperability

Reduce Total Ownership Cost (RTOC)

Supply Chain Management

DoD Interpretation of Supply Chain Management

Conclusion

Total Life Cycle System Management


Total life cycle system management tlcm

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 game

Total Life Cycle System Management (TLCM)


System engineering
System Engineering Logisticians Perspective

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


Why use the se process

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 requirements

Why use the SE Process?


Who uses the SE Process? Logisticians Perspective

  • Government (DoD)

  • Defense Industry

  • You

  • Others


SE Process Supportability Inputs Logisticians Perspective

  • Available ?

  • Reliable ?

  • Maintainable ?

  • Deployable ?

  • Sustainable ?

  • Affordable (Support Cost) ?


Introduction to System Engineering Logisticians Perspective

4’ 8.5”


2005 Chevrolet Corvette Logisticians Perspective


Design Solution Logisticians Perspective

  • Transforms the architecture (functional to physical)

    • Each part/task must meet at least one functional architecture requirement

    • Any part/task can meet more than one requirement

  • Define alternative system concepts, configuration items & system elements

  • Select preferred product and process solutions

  • Define/refine physical interfaces (internal/external)


Logistician’s Role in Design Solution Includes: Logisticians Perspective

  • Identify & design support tasks

  • Determine support resources

  • Develop support products & processes

    • Maintenance, Supply, and Training Plans

    • Technical Publications, etc

  • Define & implement PBL support environment


What the se process does

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 need

What the SE Process Does


SE in the Defense AT&L Logisticians Perspective

Life Cycle Management Framework

https://acc.dau.mil/ifc


System engineering in sdd

Design Logisticians Perspective

System Engineering in SDD

V

System level

SVR

System-level

design requirements

SFR

Configuration items

Fabricate, integrate & test

TRR

Decomposition

Item level

design

requirements

Synthesis

PDR

Assemblies

Design

requirements complete

Components

CDR


System engineering in sdd1
System Engineering in SDD Logisticians Perspective

SVR

PRR

Combined DT&E/OT&E/LFT&E

Demonstrate System to

Specified User Needs &

Environmental Constraints

Interpret User Needs,

Refine System

Performance Specs &

Environmental Constraints

Trades

Trades

SRR

Develop System

Functional Specs &

System Verification Plan

System DT&E, LFT&E & OAs

Verify System Functionality

& Constraints Compliance

to Specs

SFR

TRR

Evolve Functional

Performance Specs into

CI Functional (Design to)

Specs and CI Verification Plan

Integrated DT&E, LFT&E &

EOAs Verify Performance

Compliance to Specs

PDR

Evolve CI Functional

Specs into Product

(Build to) Documentation

And Inspection Plan

Individual CI

Verification

DT&E

CDR

Fabricate, Assemble,

Code to “Build-to”

Documentation


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

Logistics

Supportability

Analyses

LMI


Logistics life cycle

Conceptual Design Logisticians Perspective

Preliminary Design

Detailed Design & Development

Production

Sustainment

Determine Logistics Support Requirements

Design for Sustainment

Acquire Logistics Support

Provide Life Cycle Logistics Support

Deactivation

Logistics 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
Interoperability Logisticians Perspective

  • Joint Pub 1-02

    • (DoD–NATO) The ability of systems (units, or forces) to provide services to and accept services from other systems, units, or forces and to use the services so exchanged to enable them to operate effectively together.

    • (DoD only) The condition achieved among communications–electronics equipment when information services can be exchanged directly and satisfactorily between them and/or their users. The degree of interoperability should be defined when referring to specific cases.


Interoperability standardization commonality

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 supportability

Interoperability, Standardization, & Commonality


Interoperability compatibility

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.


Interoperability and independence

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 compatibility integration

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.

Interoperable

Fully Integrated

Compatible

Integration Continuum

Interoperability, Compatibility, & Integration


Addressing 21st century interoperability requirements

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


Early decisions affect life cycle cost

Life-Cycle Cost Effectively an integrated system loses significant functionality if the flow of services is interrupted.

Cumulative

Rendered Unchangeable

For a Given Design

Percent of

Life-Cycle

Cost

Life-Cycle Cost

Actually Expended

Early Decisions Affect Life-Cycle Cost

100

90

80

70

50

System Life-Cycle

10

Milestones

A

Out of Service


Aircraft total ownership life cycle cost composition
Aircraft Total Ownership/Life Cycle Cost Composition an integrated system loses significant functionality if the flow of services is interrupted.

Source: http://www.ncca.navy.mil/resources/ncca_strategic_business_plan.pdf


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

LOWEST LCC

5 YR LCC

CLASS

VEHICLE

ACQ COST

<$20k

Honda Civic CX

$13,065

$18,451

$20,000

$20-25K

Acura

Integra

LS

$28,564

$25-35k

BMW 323I

$28,800

$33,658

HIGHEST LCC

CLASS

VEHICLE

ACQ COST

5 YR LCC

<$20k

Cutlass GLS

$19,715

$31,517

$20-25K

Pontiac Firebird Formula

$23,065

$38,077

$25-35K

SVT Mustang Cobra

$31,470

$45,887

life-cycle Costs based on depreciation, financing, insurance, maintenance, repairs, registration fees, and fuel costs.


Supply chain management
Supply Chain Management an integrated system loses significant functionality if the flow of services is interrupted.

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

Source: Mentzer

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


Separately managed logistics processes
Separately Managed Logistics Processes an integrated system loses significant functionality if the flow of services is interrupted.

Raw Material

Transportation

Storage

Manufacturing

Storage

Distribution

Retail


Supply chain management scm
Supply Chain Management (SCM) an integrated system loses significant functionality if the flow of services is interrupted.

Involves Coordinated Management of Logistics Processes

Raw Material

Transportation

Storage

Manufacturing

Storage

Distribution

Retail

  • Focus on process, not function

  • Focus on integration and coordination of all organizations


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.

  • Improve your performance

  • Provide objective quality evidence

  • Measure your processes

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.

SSpecific

Specific and targeted to the area being measured.

MMeasurable

Accurate and complete data is collected and correlated against a standard.

AActionable

Allows corrective actions to be taken or maintained.

RRelevant

Don’t measure things that are not important!

TTimely

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!!

SMART Metrics

  • Top 5 Common traps that should be avoided in developing effective metrics:

  • Developing metrics for which accurate or complete data can not be collected

  • Developing metrics that measure the right things, but cause people or the organization to act in a way contrary to the best interest of the organization (“make numbers”)

  • Developing so many metrics that they create excessive overhead or red tape

  • Developing metrics that are complex and difficult to explain

  • Developing metrics without defining applicable ground rules and assumptions


Supply chain metrics

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.

  • Metric Categories include:

    • Progress Metrics:

      • Cost/Schedule Variances

      • Earned Value

      • Status of Risk Events

    • Product Metrics:

      • Operational Availability

      • Mean Time Between Failure

      • Weight, Speed, Payload, Range

      • Unit cost

    • Process Metrics

      • Number of Design Changes

      • Cycle Time

      • Defect Rates

      • Length of Team Meetings


Dod adaptation of scm

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

Just Enough

Inventory-Based

Desert Storm

Today - OIF

Tomorrow

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

are unaffordable

Adaptive system

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

Higher Risk

Prime Metric:

Speed / Time Definite Delivery

Prime Metric:

Days of Supply

Prime Metric:

Flow Time

DoD Adaptation of SCM

Key Consideration #5


Dod structure creates scm challenge

Wartime & Missions Other than War they don’t provide senior managers with a sense of how well the supply chain is performing.

Theater Activities

CONUS

Bases

Units

Posts

Bases

Inventory Control

Points, Maintenance &

Supply Depots, Other

Services

Units

Supply, Maintenance &

Transportation Activities

Point of

Embarkation

Private Sector

Suppliers, Distributors,

Maintainers, Transporters

Point of

Debarkation

D

A

Container

Consolidation

Point

Distribution Points

Materiel/Services

Information

Peacetime

Intermediate

Activities

Consumer Activities

Wholesale Activities

The Logistics Process

Acquisition

Logistics

Asset

Management

Materiel

Distribution

Materiel

Maintenance

Materiel

Disposition

Materiel

Requirements

DoD 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

created it”

Albert Einstein


Questions? they don’t provide senior managers with a sense of how well the supply chain is performing.

[email protected]

703-805-4864

“His Mother should have thrown him away and kept the stork.”

-Mae West


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