SECURITY COOPERATION REINVENTION

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DSCA
Business Process Reengineering
By Mr. Glenn Lazarus, Chief, Business Process
Reengineering [phone] Revised 20 Mar 03
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BUSINESS PROCESS REENGINEERING (BPR)

• DSCA is transitioning from the high level
  Reinvention process to an approach focused on
  continuous improvement.
• Depending heavily upon modern technology, we will
  strive to make our security cooperation processes
  more like those of modern business.

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BUSINESS PROCESS REENGINEERING
DSCA Definition Change that will make business
processes better, faster, cheaper and/or more
responsive to the customer(s). BPR is the
facilitator for Innovation.
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WHY HAVE BPR AT DSCA?

• Clinger-Cohen Act of 1996 requires that
  reengineering be considered at appropriate points
  in a major IT acquisition (e.g., CEMIS). (SECDEF
  Memo, 2 Jun 97 implemented within DoD)
• Director, DSCA directed at Security Cooperation
  2001 that BPR office would pick-up where
  reinvention left off, with primary emphasis on
  business processes.

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WHAT DOES BPR BRING TO THE TABLE?

• Compliance with the law and SECDEF policy
• Policy level attention and facilitation
• Macro versus micro process approach
• Focal point for innovative ideas

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CRITERIA FOR SELECTING A BUSINESS PROCESS TO
REENGINEER

• Dysfunction
• Importance
• Feasibility

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METHODOLGY EMPLOYED

• 151 business processes examined
• 13 currently on the Active List (17 in Feb 03)
• 30 currently on the Archived List (45 in Feb
  02)
• 13 evaluated as to high, medium or low importance
• Director, DSCA Guidance
• Work initiatives sequentially so as to not place
  undue strain upon the staff and the MILDEPs
• Match Active List to the Six Core Functions

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THE 17 ACTIVE LIST ISSUES

• 11. Increase International Logistics Control
  Office (ILCO) flexibility for determining support
  methods for delivering goods services
  identified on LOA, and/or amendment/modification
  documents
• Increase SDR Write-Off Threshold
• Life Cycle Sustainment Support and Manage FMS
  Reserve Resale Out-of-Inventory Equipment.
• Qualitative Analysis of FMS Business Activity.
• Tri-Service ILCO Symposium
• Worldwide Warehouse Redistribution Services
  (WWRS)
• BIC Initiative IT 07

• Improve Case Closure and Reconciliation
• End-to-End Control Mechanism
• FMS Surcharges
• LOR by E-Mail
• Refine Cooperative Logistics Supply Support
  Arrangement (CLSSA)
• FMS Point-to-point Material Tracking
• Military Articles and Services List (MASL)
  Improvement
• Navy FMS Dual Track
• SDR Returning material process using US Bank
  Power Track System
• E-Mall Direct Delivery to FMS
• Customers and Use of Debit Cards

Key Green High Priority Blue
Medium Priority Red Low Priority
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ACTIONS ACCOMPLISHED

• END-TO-END CONTROL MECHANISM
• Satisfactorily resolved.
• Assignment of Commitment Identification Numbers
  (CIN) at Implementing Agency level
• Tracking will be in place once CEMIS implemented
• Due to importance (2 on FPG list) progress will
  continue to be monitored closely.

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ACTIONS ACCOMPLISHED

• REFINE COOPERATIVE LOGISTICS SUPPLY SUPPORT
  ARRANGEMENTS
• All requirements for CEMIS have been documented.
• More work in the area of standardization
  required.
• DSCA Comptroller personnel taking deliberate
  approach in the interest of transparency to make
  sure we do it right.

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ACTIONS ACCOMPLISHED

• SDR RETURNING MATERIAL PROCESS USING U.S. BANK
  POWER TRACK SYSTEM
• U.S. Navy has requested to employ same procedures
  in the return of FMS SDR material via commercial
  carrier as via DoD contracted commercial carriers
• May be a topic at the August International
  Logistics Control Office (ILCO) Symposium
• Responsibility shifted to transportation team led
  by Mr. Brion Midland, DSCA, Policy and Plans
  Division

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ACTIONS ACCOMPLISHED

• WORLDWIDE WAREHOUSE REDISTRIBUTION SERVICES
  (WWRS)
• DSCA Policy Memo, 26 Jun 01, promulgated WWRS as
  an official program
• DSCA Policy Memo, 4 Mar 02, established
  Tri-Service WWRS holding accounts
• Services have lead and option for tri-service
  implementation
• As of Mar 03, there are 19 sellers and 42
  purchasers participating in the WWRS program

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THE 13 ACTIVE LIST ISSUES

• 8. Increase International Logistics Control
  Office (ILCO) flexibility for determining support
  methods for delivering goods services
  identified on LOA, and/or amendment/modification
  documents
• Increase SDR Write-Off Threshold
• Life Cycle Sustainment Support
• Qualitative Analysis of FMS Business Activity.
• Tri-Service ILCO Symposium
• BIC Initiative IT 07

• Improve Case Closure and Reconciliation
• FMS Surcharges
• LOR by E-Mail
• FMS Point-to-point Material Tracking
• Military Articles and Services List (MASL)
  Improvement
• Navy FMS Dual Track
• E-Mall Direct Delivery to FMS
• Customers and Use of Debit Cards

Key Green High Priority Blue
Medium Priority Red Low Priority
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WHAT CONSTITUTES SUCCESS? THE SIX CORE
FUNCTIONS ACTIVE LIST
Pre-LOR 1
Case Development 2
Case Execution 3
Case Closure 4
Other SC 5
Organizational Support 6
3
1
8
4
2
9
5
6
13
11
10
7
12
Key Green High Priority Blue Medium
Priority Red Low Priority
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TWO NEW INITIATIVES

• International Logistics Control Office (ILCO)
  Symposium
• Business Initiatives Council (BIC) initiative on
  International Electronic Information Policy

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ILCO Symposium

• 26-27 August 2003
• DISAM Headquarters WPAFB
• 40-50 U.S.-only
• Purpose Present and discuss initiatives, major
  business practices, and difficult issues that may
  have tri-MILDEP applicability, so that business
  processes and overall effectiveness can be
  improved.

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ILCO Symposium (continued)

• Theme New Ideas and Best Practices positive
  ideas that make sense to implement across the
  MILDEPs with an eye on CEMIS implications and
  Portal options.
• Agenda is to be topic-dependent and
  results-oriented.

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ILCO Symposium (continued)

• Agenda
• -- CEMIS/Portal presentation
• -- Execution and Management of Presidential
  Drawdowns
• -- International Supply Chain Management
• -- Electronic FMS (e-FMS)

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BUSINESS INITIATIVES COUNCIL

• Established Jul 01 by the Under Secretay of
  Defense, Acquisition, Technology and Logistics
• Common Characteristics
• -- benefit war fighters (stakeholders)
• -- provide common (coalition) good across DoD
• -- provide identifiable savings/benefits that
  will have a positive impact on FY 03
  budget/execution

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DOD BIC ORGANIZATION

• BIC is DIFFERENT from previous reform efforts
  because
• Top DoD and Service leadership support and
  involvement.
• Joint, concerted functional effort across
  Services, OSD and JCS who team to identify,
  approve and execute efficiencies.
• Assigned champion for each initiative
• Continuously monitored implementation plans.
• Personal responsibility and accountability.
• Focus is not just on savings, but on
  efficiencies and other benefits.
• Real savings stay within organization to be
  applied smartly.

SENIOR EXECUTIVE COUNCIL (SEC)

• SECDEF
• DEPSECDEF
• SERVICE SECRETARIES
• USD (ATL)

• MISSION To improve efficiency of DoD business
  operations by identifying and implementing
  business reform actions and reallocating savings
  to higher priority efforts (i. e., people,
  readiness, modernization, and transformation.)
• LEADERSHIP
• Rotated among the three Military Departments
• Air Force completed lead 31 Mar.
• Army completed lead 30 Sep.
• Navy assumed lead 1 Oct.

BUSINESS INITIATIVE COUNCIL (BIC)

• SECARMY
• SECNAV
• SECAF
• VCJCS

• USD (ATL)
• USD (C)
• USD (PR)

BUSINESS INITIATIVE EXECUTIVE STEERING COMMITTEE
(ESC)

• DESIGNATED SERVICE 3-STAR FLAG OFFICERS
• SELECTED OSD EXECUTIVES
• WARFIGHTER LIAISON JCS(J-8)

EXECUTIVE DIRECTORS
BIC SUPPORT TEAM

• SERVICE EXECUTIVE DIRECTORS
• SELECTED OSD EXECUTIVES
• WARFIGHTER LIAISON - JCS

• SERVICE LEAD INTEGRATION SUPPORT TEAM

PROCESS / FUNCTIONAL BOARDS
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BUSINESS INITIATIVES COUNCIL

• On 30 Oct 02, DSCA appointed Process Champion for
  BIC Initiative on International Electronic
  Information Policy
• Proposal Determine the best method of sharing
  information between U.S. Govt offices and
  foreign govt organizations for the purpose of
  conducting FMS, military equipment loans, and
  cooperative programs for the development and
  production of military equipment.

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BUSINESS INITIATIVES COUNCIL

• History/Current Situation
• -- a satisfactory info network does not exist
  for conducting military business with foreign
  governments
• -- technology for limiting access on existing
  U.S. Govt networks has not kept pace with the
  technology for exploiting access.
• -- two Integrated Process Teams created

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BUSINESS INITIATIVES COUNCIL

• Required Policy Action DoD needs to develop a
  standardized, preferred method for information
  exchange connected to weapon system acquisition
  with international involvement
• Proposed Action Approach Determine needs,
  equipment (hardware software), identify
  stakeholder requirements, and provide cost
  estimates
• Goal Completion of tasking by 1 Jun 04

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NEXT STEPS

• We are working the issues one at a time
• A message went to the field in Mar 02 announcing
  and explaining BPR, and soliciting innovative
  ideas
• BPR Executive Committee is convoked as required
  to review and revise the list (last meeting held
  6 Mar 03)
• Innovative Ideas 8 received to date 3 have
  been moved to the BPR Active List

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THE FUTURE

• DSCA is aggressively pursuing implementation of
  Performance Based Costing (PBC) and Performance
  Based Budgeting (PBB) processes.
• We are adapting the Planning, Programming and
  Budgeting System (PPBS) process to the Security
  Assistance (FMS and FMF) program.
• By the end of 2003 we expect PBC, PBB and PPBS to
  make a very positive impact on how we do security
  cooperation business.

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THE FUTURE (cont)

• We are replacing 13 antiquated management
  information systems with one or two consolidated
  and standardized systems.
• We are developing a web-based portal operation to
  provide more timely and accurate delivery and
  financial data to be incrementally implemented.