Presentation is loading. Please wait.

Presentation is loading. Please wait.

0 LMARS Support for Pipeline Measurement Performance Paul Blackwell Office of the Deputy Assistant Secretary of Defense for Supply Chain Integration March12,

Similar presentations


Presentation on theme: "0 LMARS Support for Pipeline Measurement Performance Paul Blackwell Office of the Deputy Assistant Secretary of Defense for Supply Chain Integration March12,"— Presentation transcript:

1 0 LMARS Support for Pipeline Measurement Performance Paul Blackwell Office of the Deputy Assistant Secretary of Defense for Supply Chain Integration March12, 2013 The Supply Chain Metrics Group

2 1  Supply Chain Metrics Group and Contributing Efforts  OSD Priorities for Pipeline Measurement  Supply Chain Metrics Center  Measurable Supply Chain Attributes  “DNA” Chart for each Metric  Upgrading Supply Chain Metrics Center  Way Ahead Supply Chain Metrics Strategy Purpose: Integrate the metrics originating from several Department-level supply chain metrics efforts into a comprehensive set of metrics monitoring the health of the DoD supply chain. Objectives: Establish a framework of enterprise metrics for managing with measurements Develop definitions, secure data sources, and establish data collection procedures for selected metrics. Expand or enhance metrics as pipeline measurement improvements are incorporated Incorporate enterprise metrics into the OSD supply chain metrics center along with enhanced analytical and reporting capabilities. Agenda

3 2 Supply Chain Metrics Group and Contributing Efforts Validate the effectiveness of measures Standardize definitions, measurements &computations Ensure consistent approaches Integrate into performance framework Collaborate with related metrics efforts Enable new measures CWT LRT TDD Compliance Supply Chain Metrics Group Comprehensive Inventory Management Improvement Plan Joint Supply Chain Architecture DPO Distribution Management (Distribution Performance Reviews) Pipeline Measurement Strategic Network Optimization Business Process Improvements Comprehensive Inventory Management Improvement Plan Joint Supply Chain Architecture DPO Distribution Management (Distribution Performance Reviews) Pipeline Measurement Strategic Network Optimization Business Process Improvements Ongoing Efforts

4 3 OSD Priorities for Enhancement of Pipeline Measurement  Addressing weaknesses identified as supply chain high risks:  Unmet delivery standards and timelines for cargo shipments  Incomplete delivery data for surface shipments  Inadequate RFID to track cargo shipments to and within theater  Lack of common operating picture for integrated distribution data  Development of guidance on implementing performance management  Alignment to enterprise-wide supply chain performance metrics  Lack of performance measures across the enterprise  Tracking of retrograde of materiel  Retrograde Team Report– Sent to the Acting, USD(AT&L) on April 1, 2012

5 4 (S) NMC Rates (S) Customer Wait Time (CWT) (L) Order Fulfillment (C) Procurement Lead Time (C) Value of Inventory (C) Excess On-Hand CWT Tool Drill down into Service CWT records. LRT Tool Drill down into LMARS and DLA/TRANSCOM LRT records. LCB Tool Drill down into LCB records. Strat & SSIR Tools Drill down into Component inventory records (DATA SOURCES) LEGEND (C) Military Services & DLA (S) Military Services (B) Working Capital Fund Budgets (L) Logistics Metrics Analysis Reporting System (LMARS) (N) Navy (F) Air Force (D) DLA (C) Excess On-Order (B) Logistics Cost Baseline (LCB) (C) Supply Availability (C) NMCS Backorders (L) Logistics Response Time (LRT) (S) Repair Turnaround Time (B) Inventory Turn (D) Denial Rates (S) Retrograde Time Supply Chain Metrics Center Metrics to be incorporated (F) Order Response Time (N) First Pass Effectiveness (S) Retrograde Asset Write- Offs (S) Retrograde Over-Aged Due-Ins (C) Demand Forecast Error (C) Total Supply Chain Management Costs (C) Customer Price Change Analysis Tools

6 5 Metrics Structure DoD Supply Chain Metrics by Measurable Attributes Attribute/ Outcome DefinitionCurrently Collected MetricsProposed Additional Metrics StandardNot Standard Across DOD Materiel Readiness The ability of the supply chain to support weapon systems in undertaking and sustaining their assigned missions at planned peacetime and wartime utilization rates NMC Rates NMCS Backorders ResponsivenessThe ability of the supply chain to respond to customer materiel requests according to priority by providing the right support when it is needed and where needed Customer Wait Time (O Level) Logistics Response Time Response Time Effectiveness (e.g. Air Force Order Response Time, Navy First Pass Effectiveness) ReliabilityThe dependability and consistency of the supply chain providers in delivery of required material support at a time and destination specified by the customer Denial Rates TDD Compliance Wholesale Perfect Order Fulfillment (DLA) Wholesale Supply Availability Planning and Precision The ability of the supply chain to accurately anticipate customer requirements and plan, coordinate and execute accordingly. Excess On-Hand Excess On-Order Repair Turnaround Time (D Level) Retrograde Time Procurement Lead Time Demand Forecast Error /Bias Retrograde Over-Aged Due-Ins Lead Time Variance CostThe amount of supply chain resources required to deliver a specific performance outcome Value of Secondary Item Inventory Inventory Segmentation (No Demand 5 or More Years) ($) Total Supply Chain Cost (Log Cost Baseline) Total Supply Chain Management Costs Tiered Inventory Turns Price Change Retrograde Asset Write-Offs

7 6 “DNA” Chart for Each Metric Official definition for metric Relates metric to a supply chain attribute Business value of the metric Proposed SC Metrics Center display Guidance & pending action Computational rules Identifies data source(s) Reporting procedures Applicable goals Viewing options Customer Wait Time Organizational Maintenance (CWT OM ) A single information resource for all metrics related data

8 7 Logistics Response Time (LRT) S TATUS OF SCMG A CTIONS C OMPLETED P ENDING W ORKING F UTURE D EFINITION IN P OLICY Definition approved for insertion in draft DoD M. B USINESS R ULES The measurement of LRT is from the date the retail supply activity requisition is submitted to a DoD or designated commercial source of supply until the date the requisitioned materiel is received and posted in the materiel management system of the requisitioner. D ATA S OURCE Logistics Metrics Analysis Reporting System (LMARS) OSD D ATA R EQUIREMENT DLA Transaction Services submits LMARS records to SCI on a monthly basis. G OALS OR O BJECTIVES TDD standards are used by supply chain providers to evaluate their performance in delivering ordered materiel and do not consider backorder time. However, no consensus exists on how to measure backorder time. D ISPLAY Current display shows Total Pipeline Times and CONUS Segment Times by source of supply, Geographic COCOM, and a myriad of other options. C HALLENGES AND W AY A HEAD Analyzing alternatives for measuring backorder time and to evaluate LRT from a customer’s viewpoint versus a provider’s viewpoint. Discussing how to handle new LMARS records resulting from BRAC- directed transfer of retail supply to DLA at maintenance depots. D EFINITION A measurement of the total elapsed time (in days) from customer requisition to receipt of materiel ordered from a DoD organic or commercial source of supply. S UPPLY C HAIN A TTRIBUTE Responsiveness: Timely receipt of materiel demanded from wholesale sources of supply to retail activities and end-use customers is key to DoD supply chain performance. B USINESS V ALUE This metric: indicates how timely the wholesale echelon of supply and distribution system is responding to their customers – the largest segment being retail activities links DoD supply chain performance to negotiated standards for responsiveness (e.g., TDD Standards) C URRENT M ETRIC P ERFORMANCE There were no negative trends or anomalies in this performance period. CIMIP 7

9 8 TDD Compliance S TATUS OF SCMG A CTIONS C OMPLETED P ENDING W ORKING F UTURE D EFINITION IN P OLICY To be documented in emerging DoD M B USINESS R ULES U.S. TRANSCOM rules D ATA S OURCE U. S. TRANSCOM Strategic Distribution Database OSD D ATA R EQUIREMENT Monthly submission of DPO JDDE Metric Executive Dashboard statistics G OALS OR O BJECTIVES 85% of deliveries meet TDD standard D ISPLAY DPO JDDE Metric Executive Dashboard C HALLENGES AND W AY A HEAD (U.S. TRANSCOM) Velocity-focused metric…must be balanced against other efficiency metrics Efficiency improvements may reduce the velocity causing TDD compliance decrease Future initiatives must be analyzed as they may alter future TDD Standards or compliance goals. D EFINITION The concept that, within a specified degree of probability, the logistics system is capable of delivering required materiel to the customer within a given period of time. As a metric, it measures the count and percentage of shipments that meet the time definite delivery (TDD) standards for a given combatant command and transportation mode. For this metric, backorder time is excluded. S UPPLY C HAIN A TTRIBUTE Reliability: The DoD TDD standards provide delivery performance target by combatant command, region within COCOM and transportation mode as dictated by the customer’s priority. B USINESS V ALUE This metrics quantifies the reliability of the DoD supply chain in meeting negotiated times when responding to customer requisitions. C URRENT M ETRIC P ERFORMANCE Current global performance is below goal.

10 9 Customer Wait Time Organizational Maintenance (CWT OM ) S TATUS OF SCMG A CTIONS C OMPLETED P ENDING W ORKING F UTURE D EFINITION IN P OLICY Definitions for CWT OM, CWT for performance budget reporting, and CWT for depot maintenance approved for insertion in draft DoD M. B USINESS R ULES Excludes the 1% of the observations that represent the longest fulfillment times, which may be attributable to data errors and/or extraordinary circumstances. D ATA S OURCE All Military Services have established data sources except Marine Corps. OSD D ATA R EQUIREMENT Military Services submit CWT OM records to SCI on a monthly basis and will discontinue submission of aggregate data to DLA Transaction Services for DD2829 report. G OALS OR O BJECTIVES FY2013 performance goals are: 15 days for Army and Navy, and 7.5 days for Air Force. D ISPLAY In addition to current display capability, the Supply Chain Metrics Center is being changed to reflect military service year-to-date performance against goals as well as monthly performance. Additional recommendation made by Components. C HALLENGES AND W AY A HEAD Complete Marine effort to provide an accurate and complete process for collecting its CWT data. D EFINITION A measurement of the total elapsed time between submission of a customer order from organizational maintenance and receipt of that order by organizational maintenance. S UPPLY C HAIN A TTRIBUTE Responsiveness: Timely receipt of replacement parts by organizational maintenance is key to reducing the time to replace failed parts that are causing a not-mission-capable condition for weapon systems. B USINESS V ALUE Customer wait time for organizational maintenance (CWT OM ): indicates how responsive the DoD supply chain is from an end user’s perspective links supply chain performance to the operational availability of weapon systems as the mean logistics delay time (MLDT) factor C URRENT M ETRIC P ERFORMANCE Air Force is performing within their goal, while the Army and Navy are above their goal. CIMIP

11 10 Inventory in Pipeline Overview DATA SOURCE LMARS BUSINESS RULES (DRAFT) Inventory in Pipeline is calculated on a quarterly basis, using data from LMARS. The monthly reported value of items shipped (filtered by SOS, customer, Class IX, and IPG) is divided by 90 to get a daily average value of items shipped, and then multiplied by the average quarterly LRT. DATA REPORTING ORGANIZATION Logistics Metrics Analysis Reporting System (LMARS) LEVEL OF DETAIL Data filtered to include only Class IX, DLA sourced goods, excluding DVDs. LRT numbers are reported by CONUS/OCONUS and by Service. ITEM POPULATION LRT and inventory value numbers are reported by CONUS/OCONUS and by Service. CALCULATION Monthly reported value of items shipped is divided by 90, then multiplied by the average LRT for the respective month REVIEW PERIOD October 2009-present BASELINE FY10 C HALLENGES None DEFINITION Measures the average value of inventory that has been shipped but not yet received by the customer DEFINITION SOURCE SNO Working Definition SUPPLY CHAIN ATTRIBUTE Investment Cost: The amount of supply chain resources required to deliver a specific performance outcome BUSINESS VALUE Average Inventory in Pipeline: Allows SNO to estimate a monetary value to apply to LRT measurements

12 11 Metrics Center Upgrade

13 12 Way Ahead  Update POA&M for responsiveness and reliability metrics as LMARS is enhanced with pipeline measurement improvements:  Expand or complete metrics  Update procedures for collecting and reporting measurements  Establish or revisit goals for metrics


Download ppt "0 LMARS Support for Pipeline Measurement Performance Paul Blackwell Office of the Deputy Assistant Secretary of Defense for Supply Chain Integration March12,"

Similar presentations


Ads by Google