Aviation Supply Chain Update

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Aviation Supply Chain Update
Air Force Materiel Command
War-Winning Capabilities On Time, On Cost

• Mrs. Lorna B. Estep
• Deputy Director of Supply
• Directorate of Logistics
• 2 May 07

Integrity Service Excellence
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AF Future Logistics Concept
LEAN PROCESSES

• AIT

Synchronized to Match AEF Battle Rhythm
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The Challenge

• Moving from village logistics to global
  lifecycle sustainment
• Think as an lean enterprise act as an owner
• Remarkably increase availability and productivity
  while streamlining processes
• Focus on developing capabilities using process
  initiatives
• Continually pursue excellence via
• Continuous process improvement (CPI)
• Targeted, measured, compared and rewarded
  performance
• Overall Operational Objectives
• 20 increase in equipment availability
• 10 decrease in annual operating costs

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eLog21 Campaign Initiatives
eLog21 Vision
eLog21 Goals
eLog21 Capabilities
Focused Process Initiatives
Enablers
eLog21 Effects
ECSS
LogEA detail review
Anticipatory Management Centralized Enterprise
Planning Execute to Plan
Change Mgmt
20 Increase Equipment Availability
Right Place, Right Time, Every Time eLog21 tenets
LogEA initial review
APS Pathfinder
RBS HH-60
Requirements
CAM
GLSC
Dynamic C2 Performance Mgmt Goals linked to
warfighter and cascaded throughout enterprise
Integrated Processes
Integrated Technology
SC-COP
Balanced Scorecard
Decision Support
GCSS Data Services
WFHQ/ACS

AFSO21
10 Reduction OS Costs
OSSE
CBP
PLM Pathfinder
Improved TLCSM End to End LC Mgmt Acq/Log/OEM
Integration
Condition-Based Mx
Asset Marking Tracking
Demand Reduction
PfM
Product Support Campaign
Optimized Resources
Enterprise View
Lean Processes MRO Procurement Acquisition Order
Mgmt
RE21
DMT
Strategic Sourcing
Requirements
Strategic Distribution
Lean Mx
Workforce
PSCM
Commodity Councils
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BRAC Decisions

• Supply Storage and Distribution Management
  Reconfiguration
• Realign bases by consolidating the supply,
  storage and distribution functions and associated
  inventories of the local Distribution Depot (DD)
  with all other supply, storage and distribution
  functions and inventories that exist at the bases
  and support the co-located maintenance depots
  operations, maintenance and production
• Commodity Management Privatization
• Relocate tire supply function from Detroit
  Arsenal and Hill AFB to DSC Columbus Inventory
  Control Point (ICP)
• Relocate supply function for packaged products,
  oils, lubricants (POL) from NSA Mechanicsburg to
  DSC Richmond ICP
• Disestablish all other supply functions and all
  storage and distribution functions for tires,
  packaged POL and compressed gasses (CG)
• Depot Level Reparable (DLR) Procurement
• Transfer procurement management and related
  support functions for DLRs (including oversight)
  to DLA in place
• All other ICP functions remain with the military
  services
• Consumable Item Transfer
• Relocate consumable item budgeting/funding,
  contracting, cataloging, requisition processing,
  customer services, item management, stock
  control, weapon system secondary item support,
  requirements determination and integrated
  materiel management technical support ICP
  function to DLA

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BRAC and eLog21 Capabilities

• Anticipatory Management
• Centralized planning, programming, budgeting
  execution for Air Force depot level reparables,
  consumable items, commodities, supply, storage
  and distribution
• Dynamic Command and Control and Performance
  Management
• Improves customer service/support to warfighters
  and military installations
• Enables redeployment of personnel in direct
  support of the warfighter
• Increases distribution capacity and decreases
  customer wait time for warfighter
• Improved Total Life Cycle System Management
  (TLCSM)
• Streamlines processes, reduces handoffs, improves
  work efficiencies and reduces cycle time closer
  integration between acquisition/sustainment
• Decreases overall costs by reducing inventory,
  reduces excess physical capacity, promotes better
  materiel prices, and reduces labor costs
• Lean Processes
• Decreases storage facility requirements and
  reduces excess physical capacity through mission
  consolidation
• Consolidation of procurement activities enables
  DoD to fully leverage buying power with suppliers
• Reduces handoffs between suppliers, DLA and
  maintenance

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AFMC Challenges for Suppliers

• Improving processes from supplier to
  warfighter/maintenance while implementing BRAC
• Exchange lessons learned on interfaces/processes
  while converting to Enterprise Resource Plan
  (ERP)
• Other challenges
• Technical Data Exchange/Interchange (Data Rights)
• Other Investment Strategies?
• Working together on asset visibility and
  increased reliability
• Diminishing supply base
• Manufacturing obsolete parts on demand
• Small Business Mentor Protégé Program
• Other suggestions?

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GLSC a Common Definition
A3 Input COCOM Requirements MAJCOM
Requirements Market Research
AF GLSC
GLSC Management
Intelligence, Surveillance, Reconnaissance
Policy, CAM, Metrics, Analysis
Supply Chain Operations Center
Global Execution (C2)
Enterprise Planning
Re-distribution, Reallocation, Funds Execution,
Contingency Ops, Status Tracking, Total Asset
Visibility
MAF LSC
CAF LSC
Demand, Capacity and Supply Planning,
Repair Network, Contractors, Budgeting,
Supplier Management
Supply Chain LSC
Managing the RE21 Repair Network
Suppliers
Customers
RE21 CLS Repair
RE21 CIRF Repair
RE21 Base Repair
RE21 Depot Repair
End-to-End Supply Chain Management
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Expeditionary Combat Support System (ECSS)

• Improve warfighter capability by transforming AF
  Logistics' business processes and leveraging
  ongoing initiatives capabilities that IT can
  deliver today
• Objectives
• Establish real-time modernized information system
  
• Apply best commercial practices
• Utilize COTS based solution
• Plan and execute obsolete legacy retirement (400
  systems)
• Increase equipment availability by 20
• Reduce annual O S cost by 10

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CAMCentralized Asset Management

• CAM is
• Centralized programming, budgeting execution
  for sustainment
• AF vertically aligning / horizontally integrating
  business processes
• CAM purpose
• Create remarkably streamlined financial /
  requirements processes
• Improve business results leading to improved
  operational results
• CAM benefits
• Jettisons archaic fiscal processes sharply
  reduces churn
• Uniform policies, streamlined processes
  synchronized results
• CAM result Warfighter-focused business
  performance

CSAF endorsed CAM at 7 Dec 05 vector check with
AF/4/7, AFMC/CC
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Repair Enterprise 21st Century

• RE21 is
• Enterprise level Mx concept whereas the I-Level
  Mx tasks will be removed from the field and
  performed by a network of Depots and CIRFs
• RE21 purpose
• React to the post PBD720 and BRAC environment
  Mx manning cuts, while capitalizing on
  synergistic efficiencies and Lean initiatives to
  perform the I-Level Mx actions at reduced cost
  and/or manpower.
• RE21 benefits
• Reduced overall Mx manpower requirement
• Positive impact on ALC 50/50 ratio
• Reduced support equipment footprint across the
  enterprise
• Increased availability of commodities due to
  enterprise-level balancing
• RE21 result
• RE21 will establish an enterprise wide single
  repair network that utilizes a single supply
  chain---providing optimum support to the
  Warfighter