Published on December 18, 2007
The USAF Spares Campaign: The USAF Spares Campaign Brig Gen Robert Mansfield 27June 2001 Defense Sustainment Consortium Agenda/Outline: Agenda/Outline Why a Spares Campaign? Forces for Change How is it Being Waged? Methodology Objectives Targets of Opportunity Major Disconnects Options End State Next Steps Summary Why a Spares Campaign?: Why a Spares Campaign? Reverse the Negative Performance MC Rates Dropped 10.5% CANNS Rose 3.8 canns per 100 sorties TNMCS Rose 5.7% Reduce Unprogrammed, Unbudgeted Bills Supplemental Spares Buys AFWCF Losses Achieve Best Mission Capability Given Fiscal Realities Reshape the Cold War USAF Supply to Support an Expeditionary Air Force CSAF Gave Go-Ahead for Planning Forces for Change: Forces for Change Transition from Cold War to EAF Cold War Supply based on: Unambiguous Threat…Warsaw Pact Focus Large Force Structure…Robust Forward-Based Force, Large Deployed Force in Wartime Large inventory…Slow Pipeline EAF Supply Based on: More Ambiguous Threat…2 MTW plus Pop-Up SSC, MOOTW Smaller Force Structure…Lean Forward-Based Force, Smaller Deployment Footprint, Less-than Squadron-sized Deployments Lean Inventory…Faster Pipeline w/ Better Visibility Demands Transition to an Expeditionary Supply Construct….Responsive & Flexible Right-Sized Kits…Right Mix of RSP & Prepositioned Stock Robust Supply C2…Improved Systems & Tools Forces for Change (Cont’d): Forces for Change (Cont’d) Significant drop in readiness indicators...1992 to 1999 Demanded systematic, analytical review of supply systems, policies, and processes Supply policies had subordinated mission capable rates to to fiscal realities Supply made pervasive policy/process changes to meet DoD-mandated inventory reductions and budget cuts: Restricted requirements computation Restricted leveling policy Cut base and wholesale inventory levels Reduced the size of Readiness Spares Packages Changes made without an overall blueprint Created disjointed processes and system interfaces How is it Being Waged?: How is it Being Waged? HAF/ILS Leading with MAJCOM Players Five Working Teams Focused on Process and Alternatives/Solutions (90-120 Days) Programming & Financial Management Spares Requirements Determination Spares Requirements Allocation, Execution, & Distribution Command & Control Supplier Relationships Using Process Similar to Chief’s Logistics Review (CLR) Output is Spares Campaign Plan Emphasis on Speed of Implementation Manage as a Program Will be Reviewed Corporately The Spares Campaign: Specific Methodology : The Spares Campaign: Specific Methodology Step 1 - Framed the study Guidance from AF/IL and approval by CSAF Preliminary framing of Campaign Plan - strategic view and process focus Direction to Process Teams – focus on: Reversing negative performance Reducing unprogrammed, unbudgeted bills Achieving best MC given fiscal realities Reshaping supply for the EAF Step 2 – Identified process disconnects and solution options Developed issue papers to resolve process disconnects Integrated individual processes into overall supply process Mapped Connected process papers to overall process Focused on integrated solutions across teams Spares Campaign: Specific Methodology (Cont’d): Spares Campaign: Specific Methodology (Cont’d) Step 3 – Conducted four Review Team sessions and considered guidance on team inputs on process disconnects and solutions Step 4 – Held numerous Integration Team meetings mapped problems/solutions to integrated process activities Step 5 - Develop integrated solution options Step 6 – Refine integrated solution package options and integrate AF/IL comments and guidance Next Steps – Develop implementation path Spares Campaign:Specific Objectives: Spares Campaign: Specific Objectives Reshape and Focus Air Force Supply Toward a Direct Tie to Weapons System Capability and Availability Recommend How Processes Should Be Structured to Meet Current Needs Create Responsiveness to Meet Changing Operational Requirements Focus on Customer in EAF Environment Customer-centric vs. Supply-centric Customer Lines Are Important—Reflect Using Customers Flightlines PDM/Overhaul Lines Component Repair Lines Current Customer Characteristics Not Captured in Wholesale/Retail Cold War Paradigm Spares Campaign:Specific Objectives (Cont’d): Spares Campaign: Specific Objectives (Cont’d) Develop Closed Loop PPBS/Execution Capabilities to Maximize Weapon System Availability Within Allocated Funding Build C2 and Assessment Processes Provide Visibility for Decision Making Provide Warfighter with Options Ensure Suppliers Focus on the Same Outcomes Include Organic & Contract Sources Apply Modern Business Practices Adapted to USAF Environment E-Business, Purchasing & Supply Management Provide Implementable Alternatives for Decision Making Create Metrics to Assess and Influence Behavior Spares Campaign:Targets of Opportunity: Spares Campaign: Targets of Opportunity Twelve Process Disconnects Highlighted Spares requirement does not include all necessary factors and the total requirement is not presented in the PPBS Financial Processes which support Programming, budgeting and pricing, are not properly integrated to support the end customer No ability to identify the effects of limited funding on WSA, perform WS trade-offs, and assess total operational impact of trade-offs No process to allocate and execute available funds to maximize WS availability Lack of ability to balance supply chain priorities to meet Air Force needs by and among WS Lack of common operating view, common business rules, feedback, and accurate data inhibits the ability to manage the supply chain as an enterprise Spares Campaign:Targets of Opportunity (Cont’d): Spares Campaign: Targets of Opportunity (Cont’d) Neither suppliers nor supply base are strategically viewed or managed for effective and efficient WS support Identifying, resolving, and preventing constraints on source of repair needs improvement Lack of training, education, and knowledge of Supply Chain Management inhibits system performance Lack of customer focused and integrated metrics drives sub-optimized behavior throughout the supply chain Lack of an accepted definition of supply core competencies results in misalignment of resources and functions Lack of a coordinated program and funding to improve component reliability and maintainability to optimize WSA Major Disconnects in the Spares Process: Major Disconnects in the Spares Process Presidents Budget FY04 # # # # FY03 $ $ $ $ $ FY02 $ $ $ $ $ $ FY01 APPG $ Only, Not Requirements 1 7 8 9 10 4 5 6 2 3 11 5 12 4 6 7 Options Were Refined During A Series Of Reviews: Options Were Refined During A Series Of Reviews PROCESS TEAM PROBLEM/SOLUTION DEFINITION INTEGRATED ISSUE/SOLUTION DEFINITION FURTHER EVALUATION NEAR,MID,LONG-TERM IMPLEMENTATION INTEGRATED ANALYSIS REVIEW PROPOSED SOLUTIONS Requirements Determination Programming & Financials Allocation, Execution & Distribution Command and Control Supplier Relationships 190 detailed solutions to address 12 targets of opportunity Integrated solution options developed for the major problems Manage and execute to WSA Develop closed loop PPBS and execution framework Integrate supply chain processes and focus on customers Leverage commercial practices Enhance supply chain management enablers Spares Campaign: Options Leverage Other Efforts: Spares Campaign: Options Leverage Other Efforts CLR - Enhanced RSS Logistics Transformation Reform Supply Support Program (RSSP) RAND Projects - EAF ACS, CSC2, PSM, Best Commercial Practices AFLMA Projects Supply Foundation Initiatives Air Staff and AFMC Initiatives - SRRB, Spend analysis, Strategic sourcing Spares Campaign:Results to Date: Spares Campaign: Results to Date Team Meetings Throughout April and May Integrated Strategic Level Process Mapped Reviewed Other Current Initiatives Many Opportunities for Improvement in Policy, Procedures, and Practices 47 Process Disconnects Organized into 12 Major Categories 190 Implementation Options Considered; Organized into 70 Potential Implementation Options Targets of Opportunity Reviewed 5 Jun 01, and Option Refinement Underway Spares Campaign:End State: Spares Campaign: End State Build accurate spare parts budget forecasts Spares additives (RSP, etc) properly identified, POM’d, budgeted, provided Increase MAJCOM role in parts distribution Traceability… $’s to parts Achieve target TNMCS rates…fewer canns Increased system availability Spares Campaign:Next Steps: Spares Campaign: Next Steps Adjust Options and Areas for Improvement Coordinate Spares Campaign Plan and Implementation Proposal With MAJCOMs CSAF Review in August Build Implementation Schedule Get On With Implementing the Campaign Plan Summary: Summary Spares Campaign Needed to Reshape AF Supply Focus is on Producing Needed System Availability Five Teams Identified Initiatives and Options Identified 12 Targets of Opportunities with 70 Options for Improvement Coordinate Spares Campaign Plan with MAJCOMs Time to Do Our Spares Process Differently!