Sustained Materiel Readiness

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Sustained Materiel Readiness
David Pauling, ADUSD (MRMP) MRO Conferences
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Systems Supported by DoD Maintenance
100,000 Ground Combat/Tactical Vehicles
? 900 Strategic Missiles

• Maintained by
• 681,000 DoD personnel
• Private sector companies

? 300 Ships
? 15,000 Aircraft/Helicopters
Maintenance cost 59B per year
250K Wheeled Vehicles Comm/Electronics
Equipment Support Equipment ...
National Defense PPE is valued at ? 600 Billion
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Source LMI
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DoD Field- and Depot-Level Maintainers
Distribution by Service (in 000s)
Marine Corps Field
Marine Corps Depot
Maintainers
Maintainers
49.9 (7)
0.9 (lt1)
Navy Depot
Maintainers
Army Field
20.9 (3)
Maintainers
220.8 (33)

Totals
Navy Field
Field
-
Level Maintainers

631.1

93

Maintainers
Depot Maintainers

44.1

7

173.6 (26)

Army Depot
Maintainers
7.2 (1)
Air Force Depot
Air Force Field
Maintainers
Maintainers
15.1 (2)
186.8 (28)
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Major DoD Intermediate-Level Activities

• Army
• 21 Aviation Intermediate Maintenance (AVIM)
  companies
• 31 Direct Support/General Support (DS/GS)
  companies
• Navy
• 15 shore-based Aircraft Intermediate Maintenance
  Detachments (AIMDs)
• 12 carrier-based AIMDs
• 6 Shore Intermediate Maintenance Activities
  (SIMAs)
• 2 Trident Refit Facilities (TRFs)
• Air Force
• 65 aviation maintenance groups
• Marine Corps
• 12 Marine Aviation Logistics Squadrons (MALS)
• 11 Amphibious assault ship-based AIMDs
• 3 Force Service Support Groups

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OrganicCommercial Distribution of DoD Depot
Maintenance
DoD-wide 54 Organic 46 Commercial
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48
FY03 (in billions)
Commercial Organic
44
52
54
56
85 Organic
Army
Navy
Air Force
USMC
Source USD(ATL) report Distribution of DoD
Depot Maintenance Workloads Fiscal Years 2002
and 2003, February 2004
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DoD/Commercial Maintenance Structure Comparison
Depot (Centralized) vs. Field Level Percentage
of Personnel
Approximate Total Number of Maintainers

• Field maintenance key to both DoD and commercial
  maintenance structures
• Maintenance structure drivers include . . .
• DoD deployable maintenance capabilities
• Equipment differences (e.g., age, complexity,
  role)
• Available commercial infrastructure
• Life-cycle status (i.e., position in life cycle)
• Business support concept (e.g., run to optimum
  age and dispose vs. continuous rebuild)

Trucking maintenance
40K
DoD maintenance
681K
Low cost air carrier
13K
Parcel trucking
15K
Railway
8.7K
Legacy airline
125K
0
20
40
60
80
100
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Note Commercial percentages are estimated based
on available data
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Sustained Materiel Readiness
ISSUE

• Concentrate on achieving/sustaining SPG/CPG
  readiness
• Balance safety, reliability, and maintenance
  activities to achieve readiness at best cost.
• Optimize TIME-ON-WING and repair TURN
  AROUND TIME
• Promote End-to-End (E2E) materiel readiness
  value chain perspective across DoD
• Optimize materiel condition reliability
  sustainment
• Optimize maintenance cost, cycle time

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Sustained Materiel Readiness
WAY AHEAD

• Translate SPG/CPG capabilities to weapon
  system/materiel requirements
• Develop cause and effect predictive models
• Foster and promote continuous process
  improvements
• Reliability
• Condition Based Maintenance (CBM)/Reliability
  Centered Maintenance (RCM)
• Cycle process discipline
• Lean, Six Sigma, Theory of Constraints, etc
• Institute integrated budgets (engineering,
  logistics, industrial)

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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Building the Optimum Materiel Readiness
Sustainment Plan/Budget
mission-based operational readiness requirement
mission-based materiel readiness requirement
START
SPG/CPG
Seek to reduce sustainment costs
WAR PLAN
Required Amount of RFI Materiel (installed
uninstalled)
Required Number of RFI Weapons
INTEGRATED BUDGET
INTEGRATED MANAGEMENT PLAN
RD
YES

ST
SAFETY STANDARDS
Technical PLAN

Design
READINESS BASED MATERIEL REQUIREMENTS MODEL
EQUIPMENT RELIABILITY
PROCUREMENT
INTEGRATED REPAIR/BUILD CYCLE TIME PLAN
MAINT/RCM STRATEGY
MATERIEL READINESS GOALS ACHIEVED?
OM
PIPELINE
COMMON METRICS

In Svc Eng/Log
SPARES FORECASTING PROCUREMENT PLAN
PLANNING FACTORS

DEPOT
MATERIEL TRANSPORTATION DISTRIBUTION PLAN

• DLR

NO
WCF
Seek to increase sustainment performance
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Materiel Readiness Responsibilities
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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Policy MRMP Mission (1)
DoDD 4151.18 Maintenance of Military Materiel

• A. DoD Materiel Readiness Sustainment Outcomes
• Achieve and sustain inherent performance, safety,
  reliability
• Invest/employ technologies
• Meet readiness and sustainability objectives
• Minimize total life cycle cost
• Optimize reliability cycle time
• B. Condition Based Reliability Centered
  Processes
• Provide materiel design improvement data/needs as
  necessary
• Allocate reliability centered, FMECA-based tasks
• Utilize diagnostics and prognostics techniques
• Employ serialized item management (SIM)
  techniques

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Policy MRMP Mission (2)
DoDD 4151.18 Maintenance of Military Materiel

• C. E2E Materiel Value Chain Agility/Continuous
  Process
• Improvement
• Employ Lean, Six Sigma, Theory of Constraints
• Identify consolidation, partnership,
  opportunities
• Maintain core capabilities
• D. Resources/Operations Information Systems
• Scheduling, production control, financial
  management
• Personnel materiel performance and QA
• Integrated budgets

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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Materiel Readiness Modeling

• Why?
• Prescribe policies/procedures and
  monitor/review/assess materiel readiness E2E
  Value Chain operations relative to the ability of
  the Departments major weapon systems to meet
  mission requirements.
• How?
• Develop DoD-wide predictive modeling/analyses
  capability to determine cause and effect
  relationship to materiel readiness-based
  outcomes, e.g.,
• Reliability improvement initiatives
• Cycle Time Process improvements for
  Supply/Maintenance/Transportation/Distribution
• Alternative resource strategies
  (short-term/long-term)
• Determining life-cycle costs from an integrated
  budget perspective when materiel readiness issues
  are addressed
• Status
• Assessing current DoD and commercial models
• Submitted cross-cutting proposal enhance best
  of breed model
• Working with Services to convert status models to
  predictive models

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Materiel Readiness Integrated Management (E2E)
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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Condition-Based Maintenance Plus

• Why?
• To improve reliability centered maintenance
  effectiveness and efficiency through application
  of technology initiatives and process
  improvements
• Sustain inherent performance, safety, reliability
  of materiel
• How?
• Utilize interactive electronic technical manuals,
  portable maintenance aids and other enabling
  tools and technologies
• Implement diagnostics, sensors and prognostic
  algorithms and techniques
• Employ reliability-centered maintenance concepts
  and practices
• Enable statistical and engineering analysis
  processes
• Develop condition-driven maintenance plans
• Integrate maintenance and logistics processes and
  reporting systems
• Status?
• Completed survey of Service CBM Select Programs
• Establishing the DoD CBM baseline
• CBM website on-line and regularly updated
• OSD/Service CBM Advisory Group meets weekly

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OCM vs RCM On-condition Maintenance
vsReliability-centered Maintenance
OCM
RCM
Maintenance Is Unplanned
Focus is Planned Maintenance Facilitates
Resource Requirements Predications
Maintenance Based on LCC Value
Maintenance Driven by Equipment Conditioner or
Lowest /Shop Visit
(What's Best for the Long Term)
(What's Easiest Today)
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Engine Life RecoveredAfter Repair
RCM Reliability Centered Maintenance
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Engine Repair/Time on Wing Tradeoffs
297K/repair
380/flt hr
240K/repair
700/flt hr
165K/repair
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Cost Per RFI System Sensitivity
Reliability Investment
Optimal Reliability Invest
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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Continuous Process Improvement

• Why?
• Maximize weapon system readiness while minimizing
  materiel flows and in-process inventories
• Goal Optimize reliability and cycle time while
  striking a reasonable balance with costs across
  the total life cycle value chain
• How?
• Employ
• Lean for eliminating all types of waste
• Six Sigma (6s ) for minimizing process variation
• Theory of Constraints (TOC) for alleviating
  process bottlenecks
• CBM (Condition Based Maintenance Plus)
• Status?
• DOD CPI Transformation Review initiated
• DOD CPI Policy in coordination
• OSD-led CPI Working Group (O-6 level) meets
  weekly, updates OSD-led GO/SES Group monthly

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Focus on Continuous Improvement(Maintenance
Cycle Time)
Oct-03
Apr-04
Apr-03
Oct-02
Apr-02
Oct-01
AIMD Lemoore Power Plants Shop Engine Repair
Cycle Time
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CCAD Engine Turn Around Time Run Chart
Reduction in Mean Variation Continue In 2004!
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Initial Lean Results Encouraging
Employment of techniques fragmented, incomplete
needs policy)
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When Should We Partner?

MIX
GOAL Leverage Innovative Concepts of the Private
and Public Sectors to Support the Warfighter at
the Best Value for the Department of Defense and
the Taxpayer
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Growth Trend in Public-Private Partnerships
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Source DoD reports, Public-Private Partnerships
for Depot Maintenance, July 2003 and July 2004
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Benefits Are Being Realized fromDepot
Maintenance Partnerships
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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Improving Materiel ReadinessReliability,
Cycle-Time, Cost
Life-cycle cost (acquisition OS)
more
Drive reliability up to optimum level
reliability
Sustainment cycle-time
less
Drive sustainment cycle time down to optimum level
Cost of Readiness
Lower
Higher
(OS only)
RD/ACQ Only
Higher
Lower
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RD/ACQ/OS Lowest
Higher
Higher
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Engine Integrated RecoveryApproach
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VISION - Focus Areas Materiel Readiness E2E
Planning and Process(es) Improvement

• Update/execute policy (E2E)
• Improve System Life Cycle Management Prediction
  Capabilities
• Expertise, Tools and TE Facilities
• Cause and effect predictive modeling
• Optimize Materiel Reliability
• Implement CBM/RCM
• Preventive Maintenance Addresses Failure
  Characteristics
• Optimize Repair/build specs
• Optimize Materiel Cycle Time
• Employ CPI (Lean, 6Sigma, Theory of Constraints)
• Integrate Depot and Intermediate Level Best
  Practices and Processes
• Parts forecasting
• Integrate Materiel Readiness Budgets
• Balance Engineering, Logistics, Industrial
  Accounts

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Responsibility

• Warfighter Combat Capability
• Ensure a ready and controlled source capable of
  providing combat ready weapon systems anytime and
  anywhere efficiently and effectively.

Program Manager
Partnering
Government Team (Engr, Log, Ind)
Private Sector
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2004 Maintenance Award Winners Awarded to the
Most Outstanding Field-Level Units in the DoD

• Marine Heavy Helicopter Squadron 462Marine Corps
  Air Station Miramar, California, USMC
• 509th Munitions SquadronWhiteman Air Force Base,
  Missouri, USAF
• 3rd Military Intelligence Battalion (Aerial
  Exploitation)Camp Humphreys, Republic of Korea,
  USA
• Combat Service Support Battalion 10Marine Corps
  Air Ground Combat Center, Twentynine Palms,
  California, USMC
• USS ABRAHAM LINCOLN (CVN 72)Naval Station
  Everett, Washington, USN
• 27th Maintenance GroupCannon Air Force Base, New
  Mexico, USAF

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2005DoD Maintenance Symposium
ExhibitionBirmingham, Alabama

• Prognostics/Diagnostics
• Integrated Information
• Common Logistics Operating Environment
• UID/Serialized Item Management

• Lean, Theory of Constraints, Six Sigma in
  Maintenance
• Cycle Time Optimization
• Responsive Logistics Support
• Reliability-centered Maintenance

Operations
Technology
Sustaining Weapon System Readiness through
Reliability, Cycle Time, and Continuous Process
Improvements
Management
Special Events

• Transformation Initiatives
• Maintenance-centric Readiness Roadmap
• Public/private-sector Integration
• Materiel Readiness Modeling
• . . .

• Senior Logisticians Roundtable
• SecDef Maintenance Awards
• Industry Tours
• Over 180 Exhibits

• Lessons learned
• Knowledge sharing
• Training opportunities

October 24 - 27, 2005
More info Chuck Field, [phone]chuck.fiel
d_at_osd.mil or www.sae.org/dod