Download - NAVICP Top 2 Aviation Supply Chain Concerns
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Naval Inventory Control Point
NAVICP Top 2Aviation Supply Chain Concerns
Presented to the Senior Executive Partnership
Round Table 10
2 May 2007
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Naval Inventory Control Point
Meet Warfighter Material Availability Expectations
Decrease Customer Direct Turn Over (DTO) Backorders
Reduce Organic Depot Awaiting Parts (AWP) Levels
Support CNO Cost-Wise Readiness Objectives
Implement Ready For Tasking (RFT) Focus
Expand Utilization of Performance Based Logistics (PBLs)
Naval Aviation Supply
The War On Terror And The Battle Against Cost ... We Must Win Both
NAVICP Concerns
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Naval Inventory Control Point
Decrease Customer DTO Backorders
DTO
FMS
Observations
DTO slice of the pie is too big
We must do a better job of filling outfittng / stock rqmts to prevent DTOs
To succeed, we must reinforce our day to day efforts on basic business
Backorder Breakdown
(NAVICP Managed Items)
Outfitting
Stock
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Naval Inventory Control Point
Reinforce sound supply chain management practices
as part of day to day business operations
Continually improve requirements forecasting
Execute timely placement of procurements
Ensure on-time delivery of all due-in material
Pursue aggressive expediting, where required
Utilize intense customer collaboration to prioritize efforts
Decrease Customer DTO Backorders
The Way Ahead
Focuson theBasics
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Naval Inventory Control Point
Reduce Organic Depot AWP
Metric End FY06 Current % Change
758693 9.4%Comps w/ BBs
Comps > 150 days 772 975 25.8%
Total Comps in AWP 2105 2312 9.8%
East
SouthWest
SouthEast
278164 69.5%Comps w/ BBs
Comps > 150 days 149 273 83.2%
Total Comps in AWP 558 781 40.0%
227162 40.1%Comps w/ BBs
Comps > 150 days 118 317 169.0%
Total Comps in AWP 616 711 15.4%
Fleet Readiness Center AWP Scorecard
Bottomline: Need To Reduce The Negative Trends
FRC
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Naval Inventory Control Point
Reduce Organic Depot AWP
Continue aggressive interface with FRC-Ds / DLA
Validate requirements, target expediting, and discuss select inhibitors
Focus on AWP with BBs, overaged AWP, and AWP with single downers
Review growth in local purchase/local manufacture requirements
Reinforce process discipline and reconcile data bases
Conduct DLA site visits; ICP AWP Summit; Business meetings
Assemble and disseminate “AWP report card”
Develop AWP Entitlement metric
NAVICP developing with DSCR, FRC-D supply/production reps, NAVAIR
Entitlements set by site, based on historical induction rates, budgeted delay time
What We're Doing
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Naval Inventory Control Point
RFT Defined: ”The right readiness, at the right time, at the right cost”
Amount of required readiness for any given aircraft is determined by mission
RFT replaces traditional Full Mission Capable (FMC) standard... ”Aircraft and all mission systems ready at any given time”
RFT creates some Initial Support Challenges
RFT is dynamic...must be defined for each T/M/S and each mission...effort is in its infancy
Virtually all current metrics are based on FMC standard...RFT will demand revised metrics to properly focus support efforts
Paradigm Shift From “Readiness At All Costs” To “Cost-wise Readiness”
RFT Overview
Implement Ready for Tasking (RFT) Focus
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Naval Inventory Control Point
The Naval Aviation Enterprise (NAE) is working three FY07 goals to support RFT attainmentAchieve necessary RFT gap closureIdentify and prioritize systems degrading RFTImprove reliability of RFT degraders
RFT Availability (E-2C)
Actual RFT
RFT EntitlementRFT Gap
Degraded RFT
Right readiness, right time
Implement Ready for Tasking (RFT) Focus
Current Effort
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Naval Inventory Control Point
Engine/ Power Plant, 0.80
Other(Non-RAM/RBM), 0.07
PDS-ESM, 0.11
IFF Interogate, 0.15
CEC, 0.17
JTIDS (Link 16), 0.23
UHF/HF Radio, 0.23
Radar, 0.68
Other NRBA Systems, 0.44
Inspections, 0.10
Navigation/Insts., 0.18 ECS/Pneum. Sys.,
0.25
Elec. Pwr. Sup. & Light, 0.26
Landing Gear, 0.26
Airframe, 0.33
Flight Controls, 0.45
Propellers, 0.46
# dayscontributionto RFT gap
Implement Ready for Tasking (RFT) Focus
E-2C Example
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Naval Inventory Control Point
A Reengineering Tool To Improve Readiness Through Improved Reliability And Better Availability
What we buy:
Comprehensive performance package... not individual parts
Value Proposition:
Substantially improved performance at less than or equal to cost
Why they work:
Government sets performance, establishes long-term fixed price relationship ... Fixed price "pay for performance" contract motivates vendor to reduce failures / consumption
Long term commitment enables vendor to balance risk vs. investment
Vendor asked to provide superior performance
at no additional cost
Expand Utilization of PBLs
The Essence of PBLs
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Naval Inventory Control Point
Availability Reliability Inventory Reduction
H-60 FLIR ... 40% increase
ALR-67 (v)3 Radar Warning
Receiver- 53% increase
Aviation Tires ... - Wholesale Inventory reduced by 90%
- Plane-side inventories reduced by 66%
F/A-18 SMS - availability
was 65% ... now 98%
ARC - 210 Radio –
availability
was 70% ... now 85%
APU - availability was
70% ... now 95%
F404 engine availability
was 43% ... now 99%
Expand Utilization of PBLs
PBL Program Performance
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Naval Inventory Control Point
PBL Demand Coverage
Goal: - Increase aviation demand covered by PBL contract to 28% by the end of FY07
Benefits: - Enhance supply support at equal or lower cost
- Achieve select reliability improvements
- Support NAE RFT and ACWT goals and
objectives
PBL Cost Reduction
- Reduce the cost of PBLcontracts renegotiated inFY07 by an average of 2%
- Reduce AVDLR costs for items supported by PBLs renegotiated in FY07
- Support NAE cost-wise readiness goals and objectives
Expand Utilization of PBLs
Current Enterprise Objectives
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Naval Inventory Control Point
NAVICP Top Priority is Meeting Enterprise Performance Expectations
Summary
CNO Guidance and Our Customers
Improving the Supply Chainand Reducing Life Cycle Costs
as defined by
while