Management of

1
UL02-03

• Management of
• Performance Based Logistics
• Naval Surface Warfare Center
• Crane, Indiana
• Gail W. DePuy, John S. Usher, G. Don Taylor,
  John Ward
• University of Louisville

2
Poster Overview

• Problem Setting
• Problem Definition
• Methodology
• Findings
• Recommendations

3
Problem Setting

• NSWC-Crane serves the Navy as a recognized leader
  in diverse and highly technical products
• microwave devices
• acoustic sensors
• small arms
• microelectronic technology
• Crane stands as a leader in methods, technology,
  production and maintenance of modern naval combat
  weapons systems.

4
Problem Setting

• It is challenging to maintain these systems as
  they age.

5
Problem Definition

• NSWC-Crane has a mission of supporting legacy
  systems in the field. Sustainment Engineering
  
• They have an existing process in place (TeAM) and
  a set of business case analysis (BCA) tools.
• Research objectives
• Evaluate effectiveness of existing tools
• Compare against similar industry and military
• Make improvement recommendations
• Determine if approach could be used to evaluate
  new performance based logistics (PBL) contracts.

6
Methodology

• Evaluation of Cranes Sustainment Program
• Interviews with key staff
• Review of voluminous sets of documents
• Outgrowth of several programs
• 1985, Diminishing Manufacturing Service
  Technology Center (DMS)
• 1990, Open Systems Engineering (OSE)
• 1996, COTS Management
• 1997, Integration of DMS and COTS management
  into a unified process, Technology Assessment and
  Management (TeAM)

7
Methodology

• Reviewed methods for other military organizations
• Army
• Integrated Sustainment Management (ISM)
• Modernization Through Spares (MTS)
• Air Force
• Flexible Sustainment
• DOD
• Diminishing Manufacturing Sources Material
  Shortages (DMSMS)
• Many of the methods are similar in scope
• Found few sustainment models in commercial
  industry

8
Overall Project Findings

• Many aspects of the process have been well
  defined and are supported by existing techniques
  in both military and commercial industry.
• Areas of academic research related to life cycle
  costing offer additional means of improving the
  process.
• The process currently lacks a well-defined system
  database or a computer program that serves as an
  integrative support structure.

9
Overall Project Findings

• The process lacks specialized software to
  simulate systems using probabilistic models that
  allow for inherent variability.
• The process lacks effective customer driven
  feedback to help in estimating the costs of
  products and services.
• The process needs added clarity and definition of
  baseline engineering capacities within each of
  the activity/support drivers.

10
Overall Project Findings

• An immediate challenge to achieving an integrated
  sustainment initiative at NSWC Crane consists in
  the multi-layered and parallel management chains
  involved in the sustainment process.
• A new sustainment engineering concept must deal
  with the realities of shrinking Department of
  Defense budgets.
• Currently the framework necessary to provide
  support for PBL is in place.

11
Recommendations

• Integrate the many parallel management chains
  involved in the sustainment process.
• Implement the simplified model of sustainment
  proposed.
• Streamline logistics activities by reengineering
  processes.
• Develop metrics that define the status of
  current, developing and needed capabilities and
  integrate with computer simulation modeling.
• Develop a consistent tasking template
• Develop a means of better soliciting and
  utilizing customer feedback
• Develop better tools for use in estimation of
  costs of services and products through use of
  standard engineering economic principles.