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Large Scale Business Transformation: A Case Study from U.S. Army Logistics

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Title: Large Scale Business Transformation: A Case Study from U.S. Army Logistics


1
Large Scale Business Transformation A Case Study
from U.S. Army Logistics
Thomas Gulledge, President, Enterprise
Integration, Inc. Professor of Public Policy
Engineering, George Mason University
2
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

3
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

4
Guidance from the Executive in Charge
  • An Integrated Logistics Solution
  • A solution that aligns with OSD Policy
    Architectures
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.)
  • A solution that addresses technical data
    integration
  • A lean architecture that enables a common
    operating picture.
  • Minimizes interfaces
  • Provides for single set of supporting master data
  • Integrates existing solutions

5
Initial Tasks
Intensive 90 day Effort
Completed
  • 1
  • High-level Operational Architecture . . . .
  • High-level Systems Architecture . . . . . .
  • High-level Integrated Schedule . . . . . . . .
  • High-level Cost Benefit Data . . . . . . . .
  • Define a Methodology for Institutionalizing the
    Architecture . . . . . .
  • 1
  • 1
  • 1
  • 1

6
Scope
  • Supply processes to include requisitioning,
    turn-in, loans
  • Maintenance management to include, at a minimum,
    induction of materiel into maintenance,
    maintenance (all levels current and future),
    movement of materiel from maintenance activity to
    user/stock
  • Packaging, Crating, Handling and Distribution of
    materiel
  • Warehousing Functions associated with storage of
    materiel and readying it for movement
  • Associated Financial Transactions resulting from
    the requisitioning, turn-in, maintenance, storage
    and packaging, and distribution of materiel
  • Ensuring that Electronic Product Data (up front
    during design and production, as well as
    post-fielding) is captured and utilized in our
    logistics business systems. This includes
    engineering, configuration management data, and
    usage/failure factors, for all fielded materiel
  • Connectivity to Automatic Identification
    Technologies (AIT) to ensure that our logistics
    business systems accept and use the information
    to give us visibility of materiel, enhanced usage
    data, etc.
  • Connectivity to Joint Combat Service Support
    (CSS) systems, transportation, medical, finance,
    personnel, and legal

7
Project Team Membership (roles
responsibilities)
  • Dr. Gulledge (EII) Senior Lead and
    relationship with other Enterprise
    initiatives (FLE, FMEA, etc).
  • Greg Huntington (EII) Overall Enterprise
    Architecture / Customer Deliverables/Project
    Management.
  • Georg Simon (IDS Scheer) Business Value Chains
    Process Architecture
  • Wael Hafez (IDS Scheer) Business Methods
  • Kris Pena (SAP) SAP functionality standards
    to process architecture (current technology).
  • David Lincourt (SAP) SAP functionality
    standards to process architecture (future
    technology).
  • Moses Irubor (SAP) Technical and Systems
    Architecture.
  • Bill Bain (Gartner) Governance / Cost and
  • Dave Walters (Gartner) Benefit Data
  • Pam Thompson Army Team (LAISO)
  • Forrest Malcomb (CASCOM)
  • Maurice McKinney (PEO EIS)

8
Chronology
9
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

10
Enterprise Architecture Planning
  • Enterprise Architecture Planning is the process
    of defining and documenting a plan (i.e., a
    blueprint) for the use of information in support
    of the business processes of an organization.
  • Enterprise Architecture Planning also includes
    the plan for implementing against the
    requirements as documented in the architecture.
  • Enterprise Architecture Planning is a business
    responsibility and it is executed under the
    auspices of the business process executives
    within the organization.

No one would dream of asking an architect to
show up one day and just start building. Even
the simplest construction projects include
extensive design and planning stages that ensure
success. These same steps are often by-passed in
IT projects. But given the proper amount of time
to plan and design a system correctly would
dramatically improve success rates. Matthew
Dill, Mandolfo Associates (Computer World, 5 May
2003, p.23)
11
Guiding Principles
  • The Army Logistics Architecture has a business
    process orientation, aligning with the Future
    Logistics Enterprise Policy
  • The Army Logistics Architecture provides a plan
    for business process integration across all of
    Army Logistics, including the National Army and
    the Field Army

A Single Solution For Garrisoned Deployed Forces
12
Outline
  • Study Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

13
Army Logistics EnterpriseStrategic Vision
A fully integrated knowledge environment that
builds, sustains, and generates Warfighting
capability through a fully integrated logistics
enterprise based upon collaborative planning,
knowledge management, and best
business practices.
We relate 5 key objectives to achieving this
vision to the Armys Logistics Architecture
14
Achieving the Logistics Vision 5 Key Objectives
  • An Integrated Logistics Solution
  • A solution that aligns with OSD Policy
    Architectures
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.)
  • A solution that addresses technical data
    integration
  • A lean architecture that enables a common
    operating picture
  • Minimizes interfaces
  • Provides for single set of
    supporting master data
  • Integrates existing solutions

Meets Objective Force Characteristics!
  • Agile
  • Versatile
  • Lethal
  • Responsive
  • Deployable
  • Survivable
  • Sustainable

15
Achieving the Logistics Vision 5 Key Objectives
  • An integrated logistics solution
  • A solution that aligns with OSD Policy
    Architectures.
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.).
  • A solution that addresses technical data
    integration.
  • A lean architecture that enables a common
    operating picture.
  • Minimizes interfaces
  • Provides for a single set of supporting
  • master data
  • Integrates existing solutions

Objective 1
16
Operational View (OV-1) (Single Army Logistics
Enterprise)
One set of integrated end-to-end business processe
s
Links to more detailed models
17
Single Army Enterprise Operational View (Detailed
View)
Achieves Objective 1
A single set of integrated business processes!
18
Achieving the Logistics Vision 5 Key Objectives
  • An integrated logistics solution
  • A solution that aligns with OSD Policy
    Architectures
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.)
  • A solution that addresses technical data
    integration
  • A lean architecture that enables a common
    operating picture
  • Minimizes Interfaces
  • Provides for Single Set of supporting
  • Master Data
  • Integrates existing Solutions

Objective 2
19
Alignment With Policy
Note 1 - Total Life Cycle Systems Management
(TLCSM)
20
Achieving the Logistics Vision 5 Key Objectives
  • An integrated logistics solution
  • A solution that aligns OSD Policy Architectures
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.)
  • A solution that addresses technical data
    integration
  • A a lean architecture that enables a common
    operating picture
  • Minimizes interfaces
  • Provides for a single set of
    supporting master data
  • Integrates existing solutions

Objective 3
21
As-Is Systems Mapped to To-Be Business
Process Objects
22
Orderly Transition
Achieves Objective 3
Critical component of legacy retirement planning
23
Achieving the Logistics Vision 5 Key Objectives
  • An integrated logistics solution
  • A solution that aligns with OSD policy
    architectures
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.)
  • A solution that addresses technical data
    integration
  • A lean architecture that enables a common
    operating picture
  • Minimizes interfaces
  • Provides for single set of
    supporting master data
  • Integrates existing solutions

Objective 4
24
Product Lifecycle Management (PLM) Spans The
Entire Logistical Architecture
Non-SAP Solution means many complex Interfaces!
Management
25
Product Lifecycle Management (PLM)within the
same Solution
National Supply
Achieves Objective 4
1
1. Asset turned in for Repair
10. Replace Carcass Part
7. Order Carcass from National Supply
7
3. Execute Work Order
12. Close Work Order
Field Maintenance
5. Order Carcass from Field Supply
2
3
12
8
6. Check Inventory
10
5
6
2. Create Work Order
Transportation
9
9. Shipping of Carcass to Supply Unit
4
11
Field Supply
Product Life-Cycle Management
Tight integration with SAP PLM!
8. Shipping of Carcass from CONUS to Theatre
4. View Asset Configuration and Drawings
11. Update Asset Configuration
26
Achieving the Logistics Vision 5 Key Objectives
  • An integrated logistics solution
  • A solution that aligns with OSD Policy
    Architectures
  • A solution that supports critical decision making
    (i.e. strategic issues, prioritization, risk
    mitigation, etc.)
  • A solution that addresses technical data
    integration
  • A lean architecture that enables a common
    operating picture
  • Minimizes interfaces
  • Provides for single set of supporting master data
  • Integrates existing solutions

Objective 5 a. b. c.
27
Army Logistics Systems Architecture
Achieves Objective 5 (c)
The applications that enable the architecture
ProcessLayer
Web Service
  • SCM
  • CRM
  • SRM

NetWeaver
  • User Management Security

Portal Infrastructure
LegacySystems
PLM
SAP R/3
mySAP
Exchange Infrastructure
Web Application Server
Applications Layer
One integrated solution!
Business Process Management
Mobile Engine Server
Knowledge Management/ Business Intelligence
  • Presentation Layer
  • Business Layer
  • Internet Com.Mgmt.
  • Integration Engine
  • Database Interface

Master Data Management
One set of data with multiple databases
  • Integration Repository
  • Integration Directory
  • Integration Server
  • Integration Monitor
  • Security
  • Operating systems/ Domain Mgmt.
  • Network
  • Hardware
  • Encryption

DB
DB
DB
DataLayer
DBMS
DB
DB
DB
28
Critical Attributes of the System Architecture
  • Optimized messaging across all existing SAP
    programs, including the Logistics Modernization
    Program, and the Global Combat Support Systems -
    Army
  • Master data control at the corporate level
  • A single point for interfacing (i.e., SAP XI
    enabled by NetWeaver) with all external
    constituents, including Defense Finance and
    Accounting Service (DFAS), the Defense Logistics
    Agency (DLA), weapon system program office,
    Original Equipment Manufacturers (OEM), other
    Services, etc.
  • Centralized repository management for all
    technical data, and
  • Complete feedback to the OEM or any Army level
    for prognostic and diagnostic data

One integrated solution!
29
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

30
Integrated Schedule
FY 08
FY 04
FY 05
FY 06
FY 07
Strategies, Architectures and Standards Group
(SASG)
Objective Force
The integrated Architecture
Logistics Modernization Program (LMP)
Synchronize with PLM
Upgrade add Install Maint Supply
Single Army Logistics Solution!
Follows SAP Product Release
Product Lifecycle Management (PLM)
ver 1.0, 2.0, etc.

Synchronize with PLM
ver 1.0
Accelerate 1st Deployment
Global Combat Support Systems Army /
Tactical (GCSS-A/T)
Enterprise Integrated Data Environment (EIDE)
V 3.0
31
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

32
Institutionalizing the Logistics Enterprise
Integration Methodology
  • Three critical success factors consistently make
    or break enterprise initiatives
  • The Right Governance Model
  • Organizational Change Management
  • The Architecture Team

Only an enterprise with the discipline to
address outdated practices will build a
successful architecture and the core business
strategies that depend on it.
33
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

34
Cost / Benefit Data
Total Cost of Ownership (TCO) for Centralized
vs. Decentralized ERP
Bottom-line Decentralized Solutions Have Higher
Total Cost Of Ownership!
35
Cost / Benefit Data
  • Centralized ERP TCO does NOT imply a single
    instance (or project) of an enterprise solution
  • It does imply a consolidated enterprise-wide
    architecture that will accommodate all Army
    Logistical solutions
  • The recommended goal of Controlled Redundancy
    assures that consolidation supports the
    end-to-end Army Logistics business processes

A Strategies, Architectures, and Standards Group
(SASG) ensures that the proper design,
maintenance, and execution to the
enterprise-wide architecture occurs!
36
Outline
  • Overview and Background
  • Enterprise Architecture Planning
  • Achieving the Logistics Vision
  • Integrated Schedule
  • Institutionalizing the Methodology
  • Cost and Benefit Data
  • Conclusions

37
Conclusions
  • The solution was approved and fully funded in
    2005.
  • It is now in the DoD budget in a line item that
    is called the Single Army Logistics Enterprise
    (SALE).
  • The SALE struggles, like all modernization
    initiatives in todays environment.
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