Research, Development

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Research, Development Engineering Command
AMCOM LCMC Center for Innovation in Logistics and
Systems (CILS) Information Briefing to SOLE
Luncheon An AMRDEC Post-Milestone C
Initiative Modeling, Simulation and Analysis
For Product Support Integration, Supply
Chain Optimization, and Logistics
System Readiness
COL (R) NORM MYERSSENIOR LOGISTICS SYSTEMS
ANALYSTSSAIC SUPPORTAviation Missile
Research,Development Engineering Center
Mr.. C. James HeadAPEX Lab ManagerAviation
Missile Research,Development Engineering
Center
Technology to the Warfighter Quicker
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AMCOM LCMC Center for Innovation in Logistics and
Systems (CILS)
This is an Unclassified Information Briefing
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AGENDA

• Introduction
• The Logistics Environment
• Turbulence/Opportunity/Challenge
• OSD Logistics - RBS
• DOD PBL Guidance to PMs
• Army Logistics Enterprise - SALE
• AMRDEC focus on Post Milestone C MS
• Logistics Consortium
• The Center for Innovation in Logistics Systems
• Ongoing Initiatives linking CBM and inventory
  optimization
• CILS Oversight ESC
• Summary
• Whats next? Conditioned Based Maintenance A
  Strategic Supply Chain Approach for Inventory
  Management

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• Why am I still throwing billions down this black
  hole called spares? General Eric Shinseki, CoS,
  US Army
• Accelerating change requires extricating
  ourselves from antiquated cycles and processes
  General Paul J Kern, CG US AMC
• We must operationally link logistics support to
  maneuver in order to produce desired outcomes
  General Peter J. Schoomaker, CoS, US Army

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Turbulence/Challenge/Opportunity

• DoD mandate to adopt Performance Based Logistics
  
• Buying readiness
• PM Sustainment
• Alternate Sparing methodologies
• Precious Metal shortages
• Remanufacturing locations
• ARFORGEN / Army Sustainment Command (ASC)
• Readiness Based Outcomes
• Demand vs. Consumption
• Forecasting optimization tools
• Data Collection sample data collection
• "transactional logistics vs. managing the ERP

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Turbulence/Challenge/Opportunity

• Cold War Army tiered readiness, traditional
  force structure
• ARFORGEN expeditionary, globally deployable,
  rotational readiness
• Do we understand the causes of Variability
  Uncertainty?
• Are we subject to boom and bust cycles with
  extremely long lead times
• Do we understand mission-based forecasting and
  associated spares consumption patterns which
  contribute to poor operational and tactical
  support planning and cost-ineffective retail
  stock policy
• Are we proactively managing readiness based
  retrograde
• Is the Supply Chain truly integrated?

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OSD Priority - Readiness Based Sparing

• Opportunities
• Exploit Multi-Indentured Structures
• Exploit Multi-Echelon Structures
• Use advanced Optimization Algorithms and
  Forecasting Methodologies
• Integrate Strategic and Tactical Planning
• Develop interoperability between RBS
• systems at Services/Agencies
• Beginning 3 initial COTS RBS
• implementations this year

Better answers to what do I need, how much do I
need, and where will I need it
Graphic Courtesy of MCA Solutions
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Background The PMs New Responsibilities
Performance-Based Logistics (PBL) is DoD's
preferred approach for product support
implementation . . . The PM shall be the single
point of accountability for accomplishing program
objectives for total life-cycle systems
management, including sustainment . . . PMs shall
consider supportability, life cycle costs ,
performance, and schedule comparable in making
program decisions. Supportability, a key
component of performance, shall be considered
throughout the system life cycle. . . Program
managers should establish a Performance Based
Logistics approach in fulfilling their product
support, integrated supply chain management, and
other Life-Cycle Logistics responsibilities. Prog
ram managers examine and implement appropriate,
innovative, alternative logistics support
practices, including best public sector and
commercial practices and technology
solutions. -- all of the metrics used to
measure the weapon system will be correlated to
three primary vectors reduction in down time
rates, reduction in demand rates, and reduction
in total cost of ownership
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Background Analytical Manpower Trends in AMC
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Enterprise Logistics Automation Transition
PlanPath to One Logistics Integrated Enterprise
. . .
Migration To Enterprise Solution

• SPBS-R
• PBUSE
• ULLS-S4
• ULLS-A
• ULLS-G
• SAMS-1
• SAMS-2
• SAMS-I/TDA
• SAAS-MOD
• SARSS-1
• SARSS-2AD
• SARSS-2AC/B
• SARSS-GW
• ILAP
• LIDB
• FMTP

• PBUSE
• ULLS-S4
• ULLS-A
• ULLS-G
• SAMS-1
• SAMS-2
• SAMS-I/TDA
• SAMS-E
• SAAS-MOD
• SARSS-1
• SARSS-2AC/B
• SARSS-GW
• LIW
• FMTP

• PBUSE
• ULLS-A
• SAMS-E
• SAAS-MOD
• SARSS-1
• SARSS-2AC/B
• SARSS-GW
• LIW (Decision to continue-TBD)
• FMTP

Current Tactical
GCSS-ARMY (F/T) Inc I Fielding

• GCSS-ARMY (Field/Tactical) Implement CDD Block
  I functionality

SALE

• PLM - Implement XI interfaces to LMP and
  external systems

2d Deployment
3rd Deployment FOC

• Phase out Summary
• 4 CCSS instances shut down
• 105 SDS apps shut down
• 2180 bridges uniques eliminated

• LMP (2003)
• CECOM
• TYAD
• DFAS
• HQAMC
• CCSS
• SDS

• LMP

• LMP
• AMCOM/TACOM/AFSC

ERP
TACOM AMCOM AFSC/JMC

• CCSS
• SDS

Will Eliminate 1149 Bridges and uniques
Current National
JMC AMCOM TACOM
Will Eliminate 855 Bridges and uniques
Eliminated 176 Bridges and uniques
IFB Fieldingconcurrent with GCSS-Army
IFB Task Order
Enablers VSAT, CAISI, J-AIT
Legend -Fielding date
-Logistics C2 -NIMS -Transportation
-Medical -Personnel -Finance
-NAMI PSID -IFB -Enablers
NAMI PSID retained until GCSS-Army Fielding
complete
N
6.3
Army-USMC-Joint
JC2 merge
Log C2
Log C2
BCS3
6.4
N
Concurrent fielding with GCSS-Army IFB
N
DLA BSM (SAP implementation)
T
GTN
T
M
MTS
MTS II
MTS
P
Block III retire, TIS-TO, AMFT, DS2T, TC ACCIS
Block IV (TBD)
Block V(TBD) retire AALPS

TC-AIMS II
N
M
Block II
I
MC4/TMIP
HRESB
E
P
eMILPO
DIMHRS

GFEBS (Incr II)
GFEBS (Incr I)
GFEBS (SAP implementation)
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AMRDEC Focus on Post Milestone C MS
Reference AUSA Pamphlet Transforming US Army
Logistics
User Needs Technology Opportunities
LCC Committed at Each Milestone Decision
100
C
B
72
A
Actual Cost Expended
20
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RDTE
OS
Production
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Opportunity - Partnering with AMCOM
CBM DW
AMRDEC RD Models Sims Spt
ASC
LAISO
IDA / RAND /LMI Analyses
AMCOM CAD
LIW
Logistics Readiness and Early Warning System
LOGSA
AMSAA
FCS
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COMPLEX INTEGRATION LEADERSHIP ENVIRONMENT
AMRDEC RD Models Sims Support Technical
Expertise
IMMC STAFF ERP Functional Expertise
CBM DW
PEO/PMs
LAISO
X

Goal Meet (Exceed) Readiness at Fixed Cost
LogisticsReadinessand Early WarningSystem
LMI Analyses
X

K Goal Max Profit
RAND Analyses
LOGSA CHANNEL STAFF
AMSAA
CLS Providers
LIW
LOGSA

G3
ASC
Performance Agreement Use of Readiness Based
Metrics Incentives to "Align" Both Goals PM
Readiness CLS Profit
CAD
IDA Analyses

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Bottom Line

• Independently operating, uncoordinated and
  unsynchronized stages within the supply chain are
  creating pernicious bullwhip effects including
  large RO, long lead times, and declining
  readiness
• Lack of a central supply chain management and
  supporting analytical capacity results in
  multi-agency, consensus-driven, bureaucratic
  solutions hindered by lack of an Army supply
  chain management science and an enabling
  analytical architecture to guide Logistics
  Transformation
• Lack of an engine for innovation to accelerate
  then sustain continual improvement for a learning
  organization.
• Unable to relate investment to readiness
• Not leveraging / limited use of the power of
  logistics models/simulations (readiness based
  sparing) analytics in support of post milestone
  C readiness outcomes.
• Not integrating/capitalizing on the
  investments/accomplishments of FFRDCs, academia
  and the many logistics organizations physically
  located on Redstone Arsenal.

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• Unfortunately, current readiness levels reflect
  an Army in crises . . . cannibalization of
  equipment has left the Army without a single
  combat brigade in the continental United States
  ready for all its wartime missions . . . this
  problem developed over time due to mismanagement
  . . . Representative Ike Skelton, Chairman,
  House Armed Services Committee, FEB 2007
• We have a serious problem looking to the future
  . . . the way we are functioning today is not
  going to be satisfactory for the challenges we
  face in the future, and knowing that, we must
  change. General Peter Pace, Chairman, Joint
  Chiefs of Staff, 20 June 2006.

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AMCOM LCMC Center for Innovation in Logistics
Systems
Continuous Improvement
Engine for Innovation
Enterprise Resource Planning
IMMC
Command Analysis
CAD G3
CILS
AMRDEC
Modeling and Simulation
Fully Integrated Supply Chain
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AMCOM LCMC Benefits Through Integration
Innovation !!

• PARTNERS
• AMSAA Systems Analysis
• LAISO Business Process
• LOGSA Data Mgmt
• CAD
• CBM

AMCOM CHANGE AGENTS

• IMMC
• AMRDEC
• CAD

IMMC
CAD
AMRDEC
"Mobilize Integrate the Logistics
Community to Maximize the Power of Logistics
Analysis, Models and Simulations"
SOURCES OF INNOVATION

• USERS
• CAD
• PEO/PM
• ASC
• IMMC
• LOGSA

X

• LMI
• RAND
• IDA
• ACADEMIA
• COMMERCIAL RESOURCES

CILS
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AMCOM LCMC CILS

• Joint IMMC, G3 CAD AMRDEC SSDD PBL sustainment
  initiative
• Integrates leverages the expertise and work
  performed by FFRDCs, Academia, AMCOM logistics
  partners and commercial best practices in support
  of AMCOM LCMC readiness challenges
• Maximizes the power of models simulations in
  support of readiness based outcomes and PM
  planning needs
• Integrates seasoned Logisticians ORSA staff
  with powerful tools
• Serves as an Engine for Innovation test bed
  for what if drills systemic process
  improvement
• Rigorously explores, tests and recommends
  alternative logistics support practices (PM Spt)
  Continuous Improvement Program
• Provides cost benefit analyses and alternatives
  by leveraging the AMSAA SESAME Life Cycle
  models and commercial products
• One stop shopping for product support
  integration, supply chain optimization and
  logistics system readiness analytical support
  tools

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CILS Functions, Components, and Products
Task Organization for Continuous Improvement
Professional Organizations
Professional Societies SOLE/ORSAL
FFRDCs Non-Profits
Academia
Public
(2) Modeling, Simulation Analysis of Complex
Systems
(3) Transforming Organizations Managing Change
(1) Magnet, Filter and Repository for Good
Ideas
Corporate Research
Academic Institutions
Commercial Sector
Tactical Units
Private

• Cost Benefit Analyses
• Risk Reduction Mitigation
• Research, Studies, and
• Analysis
• Technical Support
• Education Training
• Technical Support
• Change Management

• Organizational Design
• Supply/Value Chain
• Workforce Development
• Technology Implications
• Innovation Productivity
• Gain
• R D

• System Dynamics Modeling
• Large Scale (LS) System
• Design, Analysis, and
• Evaluation
• Systems Simulation,
• Modeling and Analysis

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CILS END STATE ORGANIZATION
IMMC
AMRDEC
G3 CAD
PBL Support Team
PEOs PMs
ASC
CILS
Data Collection Analysis Team
SCM LSA Team
LAISO
AMSAA
LOGSA
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AMCOM LCMC Center for Innovation in Logistics
Systems Linking CBM to Supply Chain Innovation
Continuous Improvement
Engine for Innovation
Enterprise Resource Planning
IMMC
Command Analysis
CAD G3
CILS
AMRDEC
Modeling and Simulation
Fully Integrated Supply Chain
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Center for Innovation in Logistics Systems
Supply Chain Modeling, Simulation Logistics
Systems Analysis

• Mission Based Forecasting
• Near Real Time Consumption
• Requirements
• Supply Chain Optimization
• Logistics Enterprise Early Warning System

CBM DW
CILS
Performance Agreement Use of Readiness Based
Metrics Incentives to "Align" Both Goals PM
Readiness CLS Profit
CCSS/LMP
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CILS ESC CHAIR Dep to the CG AMCOM
Continuous Improvement
Engine for Innovation
Enterprise Resource Planning
IMMC
Command Analysis
CAD G3
CILS
AMRDEC
Modeling and Simulation
Fully Integrated Supply Chain
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DOING BUSINESS DIFFERENTLY !!
Readiness

CILS
Logistics Community Focused on AMCOM CBM
Readiness Challenges Supply Chain Analyses
What if Modeling Support Optimization
Stockage/Buy Recommendations Measurable
Repeatable Processes Applicable Now Future
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AMCOM LCMC Center for Innovation in Logistics
Systems Linking CBM to Supply Chain Innovation
Continuous Improvement
Engine for Innovation
Enterprise Resource Planning
IMMC
Command Analysis
CAD G3
CILS
AMRDEC
Modeling and Simulation
Fully Integrated Supply Chain
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Project Background Phase 3
Make it Happen!
What Could Happen?
What has Happened?
System Engineering Development
Technology Development
Concept Refinement
Production
CS
2002
2003
2005
Phase III (05- ) Enabling Logistics
Transformation

• Phase 1
• Segment the LogisticsStructure Processesfor
  Analysis
• Adapt EnterpriseSupply ChainFramework
  forIntegration 200K

• Phase 2
• Identify "ReadinessProduction Function"
• Develop "MissionBased Forecasting"
• Validate "ReadinessBased Sparing"
• IncorporateMulti-EchelonOptimization
  "SynchronizedRetrogradeOperations"
• DDSN LEWS 1.0M

• Phase 3
• Provide COTS RBSSolutions for PBI
• Develop Large-ScaleMODSIM Capacityfor SC
  Enterprise
• Implement CPBLOrganizational Design
• Strategic Outreach Research Partnershipsfor
  ContinuousImprovement 200K

III.

• Near-Term Implementation
• Multi-Echelon RBS for PEO/PMs

Demand
Unit
Acquisition
Retail
Wholesale
III.

• MODSIM
• Integration for
• Long-Term SCM
• AMRDEC/SAICCenter for PBL

Reverse Logistics

• AMCOM Readiness Based Sparing
• Analytical Demo- UH60s 101st ABN DIV
• Field Test- Fort Rucker AVN School

II.

• Supply Chain Analyses
• Mission Based Demand Forecasting (LMI)
• Readiness Production Function (RAND)
• Wholesale Operations (IDA)
• Procurement (UAH)
• Retrograde (LOGSA)

I.
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Multi-Echelon Readiness Based Sparing (MERBS)
ACQUISITION
DEMAND
WHOLESALE
UNIT
RETAIL
RETROGRADE
Operational Demand

• Training
• Combat Operations
• Stability Operations
• Humanitarian Support
• Domestic Support

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SUMMARY

• AMRDEC/IMMC/G3 CAD CILS is working together to
• Rigorously evaluate/test/experiment explore
  alternative logistic support practices
  (including best public sector and commercial
  practices and technology solutions, early warning
  options) in support of PBL and PM guidance
• Maximize/leverage the power of logistics
  models/simulations (readiness based sparing)
  analytics in support of post milestone C
  readiness outcomes (Product Support Integration,
  Supply Chain Optimization, Logistics System
  Readiness, War Room requirements)
• Provide logistic ORSA skills, tools and
  analytical support
• Establish CILS post milestone C sustainment
  technical support capability to explore and
  potentially implement RAND, LMI, IDA and AMSAA
  recommendations and commercial successes/best
  practices
• Routinely bring together a consortium of
  logistics partners (AMCOM staff, LOGSA, PM Log
  staff, ASC, LAISO, AMRDEC, FCS Dep
  Supportability, AMSAA) to
• Integrate/coordinate/communicate logistics issues
• Recommend logistics priorities/directions for
  CILS
• Review/approve PBL COE recommendations
• Advocates for logistics transformation/PBL
  policy/standards

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SUMMARY

• AMRDEC/IMMC/G3 CAD CILS working together to
• Serve as a magnet, conduit and clearing house for
  logistics and Supply Chain initiatives enable
  innovation accelerate and sustain continuous
  improvement.
• Evaluate/recommend Business Intelligence tools,
  data sources and potential uses
• Identify and recommend Organizational Change
  transition to market
• Leverage the work initially directed by MG Dodgen
  

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Research, Development Engineering Command
AMCOM LCMC Center for Innovation in Logistics and
Systems (CILS) Information Briefing to SOLE
An AMRDEC Post-Milestone C Initiative
Modeling, Simulation and Analysis For
Product Support Integration, Supply Chain
Optimization, and Logistics System
Readiness
COL (R) NORM MYERSSENIOR LOGISTICS SYSTEMS
ANALYSTSSAIC SUPPORTAviation Missile
Research,Development Engineering Center
Mr.. C. James HeadAPEX Lab ManagerAviation
Missile Research,Development Engineering
Center
Technology to the Warfighter Quicker