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Information about PSCM

Published on March 7, 2008

Author: Jolene


AFMC Sustainment Transformation “Shaping the Future”:  AFMC Sustainment Transformation “Shaping the Future” Building Strong and Effective Relationships with AFMC’s Strategic Suppliers Lorna Estep Deputy Director, Suppy HQ Air Force Materiel Command Overview:  Overview AFMC Logistics and Sustainment …The Big Picture AFMC Sustainment Transformation Take-Aways Slide3:  AFMC Vision To be a valued team member… of the world’s most respected Air and Space Force Air Force Materiel Command AFMC Mission Deliver war-winning… -- Technology -- Acquisition -- Sustainment …expeditionary capabilities to the warfighter AFMC Strategic Principle War-winning capabilities…on time, on cost Slide4:  Net Sales $6.441 Billion 2%* 63%* 3%* 1.7M Units* Delivered 760K Units* Delivered 4%* (Other) 3%* 25%* 25 ALC Supply Chain Management Teams Managing 157,000 Spare Part types 5,498 USAF aircraft (40 Organic Weapon Systems) Organic & Contract Depots DEPOT Supply Management Scope of Operations AIR FORCE TRANSCOM FMS 6200+ A/C $3.502B Repair Orders $1.479B Orders For new spares Manufacturers Source: FY03 sales data came from Keystone. Other federal agencies, aircraft and missile procurement ARMY/NAVY *All figures are FY04 with the exception of units delivered and % sales distribution FY04 Slide5:  Reparables, Mods, Rotors & miscellaneous 4% 47% 2% 46% Organic Depot Maintenance Materiel Support Division Depot Maintenance Scope of Operations AIR FORCE TRANSCOM 1% Source: FY03 sales data came from Keystone. Total Orders $5.12 Billion ARMY/NAVY -653 Aircraft -406 Engines Aircraft & Engines Plus Oversight for 100 aircraft, 31 MDS Variants -340K Reparables -2K Mods/Rotors -2,417K Software (DPSH) -288K Major End Items (DPSH) FY04 FY04 Product Support & Readiness Scope of Operations:  Product Support & Readiness Scope of Operations LSO A Global Air Force Mission 2005…Another Banner Year:  99% On Time Due Date Performance 495 Scheduled Aircraft Required – 501 Delivered Exceeding Engine Production Goal 254 Req’d – 255 Produced Maintaining Quality -- .027 Defects Per Aircraft 28% Reduction in MICAP Hours -- Continued Downward Trend 24% Improvement in Customer Wait Time -- 4.97 Days Total Non-Mission Capable Supply Rates -- Below 10% Stood up ACQ Log Div for New Weapon Systems/Product Support 2005…Another Banner Year Transforming: Shaping the Logistics Arena:  Transforming: Shaping the Logistics Arena Yesterday, Today, and Tomorrow Case for Change The AF Burning Platform:  Case for Change The AF Burning Platform Operational imperatives Increasing need to quickly respond/adapt to evolving risks Sustaining and winning the global war on terror Financial imperatives Increasing competition for dwindling resources Increasing cost of an Airmen Reducing cost of ops to invest in future capability Workforce imperatives Increasing work week End strength reductions with new mission demands Infrastructure imperatives Reducing the AF footprint (deployed and home station) consistent with expeditionary mindset AFMC Sustainment Transformation:  AFMC Sustainment Transformation Purchasing and Supply Chain Management (PSCM) Depot Maintenance Transformation (DMT) Product Support Campaign (PSC) Critical Strategy Components:  Critical Strategy Components Deliver War winning capability..on time…. on cost Continuous Process Improvement Integration of Acquisition and Sustainment Professional, trained and accountable workforce Partnerships with Customers and Suppliers Leverage Capabilities and Resources across the Life Cycle of Systems Sustainment Transformation Management Integration: Goals:  Sustainment Transformation Management Integration: Goals PSCM Results:  PSCM Results 8 AFMC-wide Commodity Councils Three Strategic Contracts Signed 3 Commodity Mgmt Plans (CMPs) OK’d AFMC-wide Lean PR Project Launched PR Process Reduced Workforce Development Strategy Transformation & Work Force Development Plan Briefed 3000+ of AFMC Workforce Immersion Training to begin in Oct 2005 Customer/Supplier Partnerships CRM Processes Defined C-130 CRM Cell Standup for Customer Inquiries Process Strategic Supplier Relationship Managers Established Focal Points to our 21 Strategic Suppliers Had Initial Meeting With Various Suppliers 1st Scorecard Driven Review Planned in Oct 2005 DMT Results:  DMT Results OC-ALC Reduced WIP by 56%, one time cost avoidance of $17.5M; reduced OWO modules from 99 to 43 F100 Buildup and Assembly Flow time reduced by 1 hour POU tools for assembly mechanics OO-ALC Airborne Generators flow days reduced from 63 to 25; overtime reduced 15%, avoided cost of $1.7M F-15 Cyl conforming anodes design/implementation; plating cycles from 8 to 3, cut 11 flow days per cyl WR-ALC F-15 Wing Shop overtime reduced 63% F-15 PDM Line on-time deliveries increased 98% C-5 PDM Line flow days decreased 21% PSC Results :  PSC Results Developed Product Support Campaign Charter and Strategy Conducted Enterprise Value Stream Mapping and Analysis Captured stakeholder values Developed AF-level goals and objectives Defined focus areas and action themes Policy Process Workforce Development Supplier Management Information Flow Expectation Management Drafted AF Product Support CONOPs Assigning leads/members to work implementation plans Take Aways:  Take Aways Sustainment is about all of us: Developers, Suppliers, Sustainers, and Users! AFMC is taking on Acquisition Logistics in earnest Sustainment should balance and integrate with Acquisition Document our sustainment plans via Life Cycle Mgt Plans (LCMP) Planning, communication and oversight are keys Sustainment Campaigns We’re moving out with short term “Go Do’s” and longer term focus area development Involves the entire AF family End result is providing improved weapon system support and availability to the warfighter

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