Logistics Initiatives Update

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Logistics InitiativesUpdate
Air Force Materiel Command
Developing, Fielding, and Sustaining Americas
Aerospace Force

• Brig Gen Terry Gabreski
• Director of Logistics

I n t e g r i t y - S e r v i c e - E x c e l
l e n c e
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Purpose

• Provide Updates on
• AF Long-Term Depot Maintenance Strategy
• Depot Maintenance Reengineering Transformation
  (DMRT)
• Spares Campaign
• Monthly AFMC Reviews to CSAF

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AF Long-Term Depot Maintenance StrategyBackground

• SECAF Tasking from Depot Offsite III (Sep 00) to
  Develop Long-Term Depot Maintenance Strategy
• Basis for Future Depot Decisions and Investments
• Respond to Congressional Call for Long-Term
  Organic Depot Plan
• Long-Term Depot Maintenance Strategy through 2020
  under development

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AF Long-Term Depot Maintenance StrategyKey
Assumptions / Guidelines

• Need to retain three viable organic depots
• Pursue long-term partnerships with industry
  through performance based logistics contracts
• Shift to partnering with industry substantially
  changes the culture of AFMC
• Core Plus workload strategy
• Current core methodology - 10 USC 2464
• Compliance with 50/50 should not be a driver - 10
  USC 2466
• Mix of old and new workloads / techniques
• Core / Last Source / Partnership / Best Value
• Need to manage total depot industrial base
• Critical manufacturing and repair capability

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AF Long-Term Depot Maintenance Strategy Key
Assumptions / Guidelines

• Retain Technology Repair Center (TRC) Strategy
• Dual sourcing as necessary for risk mitigation
• AF must invest to ensure robust capability
• Must compete with other AF priorities - will be
  tough
• Depot maintenance designated as Core will be
  reserved for organic performance
• All other workloads (core plus) will be allocated
  based on meeting performance-based requirements
  at best value
• Utilize new weapon systems to maintain Core

GOAL Ensure responsive depot maintenance to
support the warfighter across the entire spectrum
of military operations
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AF Long-Term Depot Maintenance Strategy Time Line

• CSAF / SECAF Briefed 17 Oct 01

Fall Corona Briefed 31 Oct 01
Brief DOS IV 28 Nov 01 Present to
Congress 2002
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Purpose and Objectives of DMRT

• Improve depot maintenance support to the
  warfighter
• Reengineer depot processes reduce flow times,
  increase production and throughput
• More responsive to peacetime and contingency
  requirements
• Improve depot maintenance financial performance
• Eliminate unprogrammed and unbudgeted costs
• Resolve disconnect between requirements and
  budgeting process
• Reduce financial risk to AF Total Obligation
  Authority (TOA)
• Improve accountability of Working Capital Fund
  operations
• Other Opportunities
• Directly address Depot Maintenance problems
  root causes
• Reverse problems introduced during downsizing

This is an Air Force projectNot an AFMC project
Need AF solutions!
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Logistics Transformation Vision
Total Air Force Transformation

• The two most important things we do is fly and
  fix airplanes.
• General Jumper
• We must fundamentally transform our Combat and
  Support capabilities by leveraging information
  and process improvements across the Air Force
  enterprise to achieve significant operational
  efficiencies and drive down support costs.
• Business Transformation Vision Statement

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Eight Focus Areas
300 Inputs Consolidated into 40
ISSUES Categorized into 8 focus areas
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Vision / Future State

• Part of AF business transformation effort
• Must change the culture - new way of thinking
• Build and communicate vision for the future

Connect Depot Maintenance Processes With
Warfighter Outcomes
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DMRT Summary

• Implementation actions categorized in eight focus
  areas
• On schedule
• Focused on Actions and Results
• Better Trained Workforce - Increased Throughput
• Reduced Flow Times - Better Accountability
• Successful implementation of DMRT critical to
  USAF Transformation

The Goal Improved Warfighter Support
Financial Performance
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Spares Campaign Background

• Approved by CSAF in Feb 01 as a plan to reshape
  Air Force Supply
• Identify opportunities to re-engineer supply
  processes and improve support to the Warfighter
• Reverse negative performance seen from 1991-2000
• MC rates decreased 8.5 points
• CANNs increased 3.8 per 100 sorties
• TNMCS increased 5.7 points
• Reduce un-programmed, unbudgeted bills
• AF received lt82 funding for computed spares
  requirements in 4 of last 11 years
• 1,397M plus up in Spares funding from FY98-02
• Achieve best mission capability given fiscal
  realities
• Improve responsiveness to EAF Operations

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Spares CampaignWhere We Are

• Current Spares Campaign focus
• Ten principal change areas
• Change DLR structure
• Improve spares budgeting
• Improve financial management
• Improve demand repair workload forecasting
• Establish virtual Inventory Control Point
• Align Supply Chain Management focus
• Standardize use expand role of RSS
• Adopt improved purchasing supply chain
  management
• Improve Stock Level Process
• Improve AF Material Support Policies
• Issues
• Resources to achieve changes
• Timeline is demanding
• Challenge to established lines of control

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Spares Campaign Time Line

• CSAF approved plan to reshape supply Feb 01

Five Process Teams met Mar-Jun 01
MAJCOM LGs briefed on solutions Jul 01
Highest payback issues selected Oct 01 AFMC/CC
briefed Oct 01 CORONA briefed Nov 01 OPRs
develop implementation Nov 01- Nov 02 AF-IL
AFMC/CC status brief Bimonthly
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Monthly AFMC Reviews to CSAF

• Compare ALC performance
• SMAG / DMAG metrics
• Production and flowdays
• Issue / Stockage effectiveness
• MICAPS and backorders
• Burndown rates
• Net Operating Results
• ALC Commanders identify problem root causes and
  present get well plans
• Do away with programmatic surprisesget
  predictive

AFMC Leadership, Accountability and
Responsiveness to Warfighter
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Summary

• Many initiatives...many moving parts
• Transformational
• Encompass both depot maintenance and supply
• Posture depots for long-term viability and world
  class service
• Communication plan important as we proceed

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