Performance-Based Logistics
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Performance-Based Logistics. Status Report. 2 March 2004. Weapon System Support Challenges. Operational Challenges. Availability of parts High maintenance levels Retention/turnover of maintenance personnel Large maintenance/supply footprint. Implications for Transformation.

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Performance-Based Logistics

Status Report

2 March 2004


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Weapon System Support Challenges

Operational Challenges

  • Availability of parts

  • High maintenance levels

  • Retention/turnover of maintenance personnel

  • Large maintenance/supply footprint

Implications for Transformation

Mid-Term Solutions

  • Will not support rapid force projection

  • Large footprint(people and equipment)

  • Complex, disjointed logistics chains

  • Limited asset visibility

  • Total Life Cycle Systems Management

  • Performance-Based Logistics

  • Depot Partnering

  • Conditioned-Based Maintenance +

Structural Challenges

  • Equipment designed to 75-85% availability

  • Disjointed acquisition and logistics processes and accountability

  • $67B per year in cost; no link to output

  • Disjointed, functional support structure

  • 16-day CWT for high priority parts

  • 50% of cost tied to maintenance; vast majority at O&I level

  • Aging organic depot infrastructure

Integrated strategy to achieve end-to-end accountability for weapon system support that meets transformation goals and requirements.


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Performance-Based Logistics

JACG

DoD 5000

Policy

A joint, disciplined program to successfully implement PBL!

Oversight via

DAB/DAES

Oversight via

R-TOC Forum

New program

implementation

30 Pilot

Programs

Quadrennial

Defense Review

Reengineer

Product Support

  • Performance-Based Logistics

  • Legacy Systems

  • FY03 DPG

  • Service Implementation Schedules

Lessons

Learned

Operational

Demonstrations

Adjustments

  • CY02/03 PEO/SYSCOM

  • PM Roundtables

  • AIA Product Support

  • Industry/Government Tiger Team


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Future System Sustainment

Ensure system is

sustained at optimum

level

Real-TimeSystem Status

(CBM+)

Industry/Government

Performance-

Based Logistics

Weapon System

Manager

Force Provider

Partnerships

Performance Agreement

Performance Agreement

Provide continuous,

reliable, affordable

support

Acquisition

Sustainment

Disposal

Visibility into cost/risk decisions across life cycle

Providing operational availability; not parts.


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PBL FY03 Accomplishments

  • Policy and workforce development in place

  • Program migration on schedule

  • Documented $15B in savings in PBBE 05

  • Demonstrated best in class readiness during OIF

  • Initiated PBL Roadshows

  • Established Logistics Community of Practice (DAU)

  • Completed DBB Review


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Logistics Response Time*

  • C-17

  • Sentinel

Days

  • F-18 E/F

  • APU

PBL

Programs

  • MCRS

  • F-117

  • HIMARS

(To date)

Calendar Year

*National level fills, all requisitions

PBL programs providing significantly improved response times.


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PBL Logistics Response Time

Aircraft And Equipment Pre-PBL and PBL Logistics Response Times (LRT’s) Availability Improvements

F/A-18 Stores Management System (SMS)

Pre - PBL LRT = 42.6 Days PBLLRT = 2 Days CONUS 7 Days OCONUS

F-14 LANTIRN

Pre - PBL LRT = 56.9 Days PBL LRT 5 Days

Tires

Pre - PBL LRT 28.9 Days PBL LRT = 2 Days CONUS 4 Days OCONUS

H-60 Avionics

Pre - PBL LRT = 52.7 PBL LRT = 8 Days

ARC-210 Pre - PBL LRT = 22.8 Days PBL LRT = 5 Days

APU Pre-PBL = 35 Days PBL PBL LRT = 6.5 Days

Achieving Commercial Standards through PBL.


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Programs Contributing to GWOT*

C-17

F-117

Common Ground Station

AWACS

JSTARS

B-2

F/A-18 E/F

Delivering Capability NOW!

* PBL programs readiness exceeded traditional support; several achieved historically high availability!


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GWOT PBL Results

Availability on Demand


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Common Ground Station

  • PM is life cycle manager

  • Government led PBL strategy

  • Tobyhanna is product support integrator

  • Deployed 30 CGS to support OIF

  • Streamlined maintenance flow

  • Achieved 99% Ao during OIF

  • Forward-located repair activity at Baghdad International Airport

  • Achieved real-time fleet management/asset visibility



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Weapon System Sustainment Roadmap

Number of Partnerships(1998 & 2002)

Number

  • PM accountable for life cycle

  • JROC established sustainment requirements

  • Enabling Depot legislation

  • Revised Maintenance Policy

  • Industry Supply Chains

  • Reengineered Training

  • Joint Strike Fighter

  • Future Combat System

  • Advanced Amphibious Assault Vehicle

  • Historic

  • Suppressed Readiness

  • Marginal reliability

  • Fractionated Accountability

  • $67B/year

  • Huge footprint

  • Warfighter-driven readiness

  • Ultra-reliability

  • Clear PM accountability

  • Minimal Footprint

s

  • Financial Reform (PR05)

  • Single-line Accounting

  • Life Cycle Cost Management

  • Operational requirements synchronized with PBBS

2000

2005

2015


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FY 04 PBL Acceleration

  • Strategic Planning Guidance

    • Directs assessment of PBL at system level for all ACAT I and II programs

  • Management Initiative Directive

    • Lead programs for single-line accounting

  • OSD Special Interest Programs

    • Application of commercial supply chain practices

  • Weapon System Support Metrics

    • Implemented via Logistics Balanced Scorecard

  • Government/Industry Tiger Team

    • Monthly meeting to eliminate barriers


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PBL Road Ahead

TLCSM WG

JROC

Adjustments

5000 Series Updates

Revised WSM

Logistics Curriculum

Workforce Development

Service

PBL Schedules

Program Transition per Service Schedules

Enabling Financial Mechanisms

Still On Schedule!!


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We Must . . .

FIELDED

CURRENT

FUTURE

JSF

F-18 E/F

F-18 C/D

DDG

LPD-17

DDX

FCS

BRADLEY

Stryker

  • Transaction-based

  • Fractured Supply Chains

  • Random Failures

  • Batch Process orders

  • Limited Accountability

  • Performance-Based

  • Integrated Chains

  • Fleet Management

  • Integrated Systems

  • PM Accountability

  • Capability-Based

  • Industrial Integration

  • Autonomic Logistics

  • End-to-End Solutions

  • Single-Line Accounting

Response

Time:

2000

2010

5-8 days

16 days

1-5 days

. . . therefore, we will!!


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