1. Business Planning and Execution
Mr. Don Tison
28 March, 2012

2. Three Over-arching Processes
REQUIREMENTS
Challenge is in the
Integration of
All Three
Variable
Joint Capabilities
Integration &
Development
System (JCIDS)
VCJCS/Service
Chief Oversight
GW-N
Defense
Acquisition
System
Planning, Programming, Budgeting & Execution Process (PPBE)
ACQUISITION
RESOURCES
Milestone Decision
Authority (MDA)
Oversight
Packard
DEPSECDEF
Oversight
McNamara
Events Based
Calendar Based 2

3. Two Processes That Get at the Challenge
ARRG
2001
2012
Requirements Resources
SLAMIS
RESOURCE
AUTHORIZE
SUSTAIN
NIIN
LIN
SSN
PPBE Support
Procurement
Funding (EE PEG)
OPTEMPO
Funding (TT PEG)
Sustainment
Funding (SS PEG)
2001
2012
ACQ RQMTS Resources
Tied to the Three Key Business Processes 3

4. ARRG is the Executive Leadership Forum for the AWCF
ARRG Overview
ARRG: Army Working Capital Fund Requirements Review Group
Purpose: Review and evaluate issues or proposed modifications impacting the Army Working Capital Fund (AWCF) business areas
What the ARRG Does:
Provides strategic recommendations and resource authorization for the AWCF
Evaluates, understand and control costs
Examines AWCF issues collaboratively during the Program and Budget cycle
Reviews the AWCF POM and impacts on other Army programs
Strengthens the AWCF supplier and customer relationship
Key Players
ARMY MATERIEL COMMAND
G-3 (Operations)
G-4 (Logistics)
G-8 (Resources)
ARMY SECRETARIAT
ASA(FM&C)
ASA(ALT)
ASA(MR&A)
G-6/CIO
ABO, Dir Bus Ops
ABO, Dir Ops Sprt
DASA-CE
Army Audit Agency
ARMY STAFF
G-3/5/7(Operations)
G-8 (PA&E)
ACSIM
OCAR
ARNG
Co-Chairs: HQDA Deputy G-8 & Deputy Director Army Budget Office
ARRG is the Executive Leadership Forum for the AWCF
$15B per Year Business 4

5. Controlling costs while providing predictable prices and credits
ARRG Background*
1. THE ISSUE:
Growth at ~twice the rate of inflation in OPTEMPO
Program and Budget disconnected
Customer/Supplier relationship on cost growth unclear
2. THE SOLUTION:
3. THE GOOD NEWS:
Typically examine over $2.3B in price and credit changes and drive $1B of savings to the customer
Exchange Pricing implemented; eliminating the waiting period of expected credit for unserviceable items and mitigating the loss of ~ $250M cash
Consolidated Depot Maintenance and Operational Readiness
Controlling costs while providing predictable prices and credits
* Army Working Capital Fund Requirements Review Group 5

6. Equipment Cost Factors
ARRG
Cost Factor
Review A R G E V L U T I O N
Latest Acquisition Costs
LAC
Outputs
Direct OPTEMPO G3 T R M
Price
&
Credit
SAFM-CES
Price & Credit +
Demands
Activity
Repair Costs
AMC
Cost Factors
Cost Recovery Rate (CRR)
Training Strategy
Modernization
Force Structure
G4/ABO Policies
OPTEMPO Requirements 6

7. ARRG POM 14-18 Calendar JAN FEB MAR APR MAY JUN JUL 7 SLDA
Offsite
29 Nov 11
SLDA
SRG #3
Billpayers
SA CSA
Guidance
SRG #4
Emerging
Rqmts/
Billpayers
SRG #5
Billpayers
SA CSA
Guidance
SRG
POM
Way Ahead
SRG #1 POM
Guidance
SRG #2
PEG/CMD Updates
Receive OSD TOA Guidance
SA/CSA
POM
Approval 10 5 29 11 18 3 17 31
Army Program Development 14-18
POM EXSUM
PAED
Command RQMT, Funding , and Manpower Reviews
PEG RQMT and Funding Decisions
Bill/Bill-Payer Decisions
POM14-18 Lock
G8 Transfers
Database to
FM&C
1-N List Refinement
PEG
Rqmts &
Funding Briefs to
PPBC
Publish
BF5.0
OPTEMPO Rqmt
POM/BES
Submission
to OSD
PPBE
Conf
CNA
Briefs
Publish
BF3.1
Rqmt & Funding Fixes
Publish
BF4.0
CMD
Sched 8
Issue APGM
&
TGM
PPBC Prioritize
Refined
1-N List
CNA
Input
Due
Publish
BF3.0
Rqmts
TGM
3.0
Publish
PF1.0 PF1.1
TGM
4.0
Publish
PF2.0
TGM
2.0 12
15-17 22 13
16-21 23 30 17 27 2 3 8 11 18 24 1 29
JAN
FEB
MAR
APR
MAY
JUN
JUL
ARRG Price & Credit Timeline
AMC briefs ARRG on OPTEMPO
LAC/CRR price impact & repair cost changes*
HQDA G-3 briefs ARRG on BF 3.1
SAFM-CE briefs ARRG on impact of cost factors*
AMC G-8 submits FY13
Price and
Credit
Table
Change Requests
SAFM-BUR provides AMC CRR and AMI Sales Estimates
SAFM-CE develops historical OPTEMPO demand data base for POM13-17
SAFM-BUR-S reviews/updates
FY13
Price and
Credit Tables
AMC submits BF 5.0 APACT to SAFM-CE
SAFM-CE delivers
cost factors to
HQDA G-3
HQDA G-3
brief
TRM
results
to ARRG* 25 17 9 28 5 10 30 1 2 28 20 18 24
AMC G-8 submits
BF 3.1 APACT to SAFM-BUR-S and SAFM-CE
HQDA G-3 completes BF 3.1
TRM
SAFM-CE develops cost factors and provides to HQDA G-3
HQDA G-3 completes BF 5.0 TRM 7
* Dates are subject to change

8. Some ARRG Successes
FY05: Consolidated Depot Maintenance and Ordnance Activity Groups eliminating redundant efforts preparing separate budget submissions
FY07: Evaluated over $50B of OPTEMPO requirements, examined $2.3B of Price & Credit changes and drove $1B of customer savings
FY09: MRAP FY11-15 Sustainment. ARRG initiated actions to migrate MRAP into base funding, and actions that led to Army decisions to retain ~19K of the most effective and supportable MRAP variants.
FY10: ARRG initiated actions resulting in Aviation component reliability improving for 19 of 25 top cost drivers, with a projected $630M return on investment over 10 years.
FY 10: ARRG guidance on developing cost factors resulted in a $1.2B cost avoidance for POM12-16, with a reduction in FY12 demands of $229.8M
FY11: For POM13-17, the ARRG evaluated over $10B of annual OPTEMPO requirements and drove savings through demand adjustments and improved cost estimation
Reduced the AWCF cost recovery rate from 15.9% to $14.1%. This reduced OPTEMPO costs by $55.5M, passing along savings to AWCF customers
Collective ARRG analysis generated a $1.3B reduction in OPTEMPO requirements 8

9. ARRG Benefits to the Army
Only forum that balances customer and supplier relationships through the Program, Program Review, and Budget cycles
Focus is to understand, then control, repair cost growth challenges
Depot workload and the perception of excess carryover
Inventory levels
Assesses impact of programs in the POM
Collaborative forum for AWCF management
Leverages the experience of AWCF leadership and functional experts to discuss and resolve financial and logistics related issues
ARRG continues as a model for collaborative financial and logistical management. Now in its eleventh year, the ARRG includes senior executive membership across the financial and logistics communities 9

10. LIN Lifecycle Data Elements
SLAMIS Overview
SLAMIS: Standard Study Number (SSN), Line Item Number (LIN) Management & Integrating System
SSN: Budget Control Number
LIN: Equipment Control Number
Purpose – A web based system that linked equipment funding to equipment fielding to improve accountability of LIN lifecycle management of standard and non-standard equipment
What SLAMIS Does -- SLAMIS links processes, data systems, and organizations together to facilitate the coordination of LIN lifecycle management for all equipment
SLAMIS expanded over time to include other LIN lifecycle issues, and eventually to address all LIN lifecycle issues, including non-standard LINs.
Key Players
LIN Lifecycle Data Elements 10

11. The Challenge: Manage System Lifecycles
FDD
FRP FD
Material Solutions Analysis
Concept & Technology
Development
Engineering and Manufacturing Development
Production & Development
Operations & Support A B C
IOT&E
Decision Review
Disposal
The Participants
DCSPRO
GUIDANCE
DCSOPS
CARD
Army
Flow Model
HQDA
HQDA Requests
Budget SSN
Procurement
P & R Reports
to ASA(FM)
HQDA Requests
Budget SSN
BOIP Feeder Data
APPROVAL
DAMO-FD
SAMAS
Force Structure
Mission Needs
Statement
(MNS)
Priorities/
DAMPL
TRADOC
ICT
Operational Requirements Document
(ORD)
RDS
Certify
HQDA
Approved
BOIP
Approve & Input
TAV Data To RDS
For TOE Update
(RDD)
MARC
SACS
TOE
FILE
MRD
FMSA-HQ
Requirements
Development
CTU
FILE FB
MTOE
EDSS
BOIP
FILE =
USAFMSA
Request
ZLIN
(exception)
FMSA-RDD
TAADS
TOE
FMSA-ADD
TAV
Approve HQDA
Budget SSN
Approve HQDA
Budget SSN #1 #2
MSR Review
Delete Old
LIN
IPR
AMC - LOGSA
LIDB
Approve
ZLIN
ACAT-I&II
IPR
Approve
SSN
Acquisition
Decision
Memorandum
Approve
SLIN
Review or Input
BOIP feeder data
Into TAV
Assemble Material
Status Record
Review
Old LIN
Deletion
Request
CBS-X
AMC - IMMCs
Process ZLIN
Request
Requests
SSN
MSR
BOIPFD
Built
Fielding
KEY:
Complete & Forward
or Directly input
BOIP Feeder Data
Into TAV
Request NSN
90 days
to IPR
Request SLIN
30 days
to IPR
FIELD
Request
ZLIN PM
Request
ZLIN
Current SLAMIS Links
New SLAMIS Links
LSS
Requests
Old LIN
Deletion
Potential Future Links
NSNMDR
60 days from ZLIN
to complete BOIP Input
DLIS
Assigns NSN
FIELDER
PBO
UNITS
‘Lead’ Responsibility
Organization by color 11

12. SLAMIS Background * 1. THE ISSUE: 2. THE SOLUTION: PPBE Support
In 1998, an HQDA PPBE IPAT formed to look at how the Army accounts for procurement dollars
HQDA could “account” for only 7¢ of every procurement dollar spent because of data gaps, conflicting processes, stove piped systems, outdated publications, and the loss of experienced personnel
2. THE SOLUTION:
PPBE Support
Procurement
Funding (EE PEG)
Sustainment
Funding (SS PEG)
RESOURCE
AUTHORIZE
SUSTAIN
SSN
LIN
NIIN
OPTEMPO
Funding (TT PEG)
3. THE GOOD NEWS:
SLAMIS now centralizes, standardizes and links processes/data elements to provide visibility and accountability of all Army procured equipment:
the SSN: reflects programmed procurement dollars for Army equipment
the Type Classification process for awarding the standard LIN required for unit’s authorization document (MTOE) and OPTEMPO funding,
the tools to create relationships between the SSN, LIN and NIIN
Now, the Army can “account” for more than 80% of every procurement dollar
* Standard Study Number – Line item Number Automated Management & Integrating System 12

13. SLAMIS – Benefits to the Army
Integrates relational data for managing major items throughout their life cycle
Requiring  Funding  Procuring  Fielding  Accounting  Sustaining  Disposing
Integrates with key Logistics, Acquisition, and financing requirements systems
Improves programming and budgeting decisions for procurement and sustainment
Highlights gaps and friction between major management systems
Provides framework to resolve emerging life-cycle management issues
Provides linkage for tracking rapid transition of items from non-standard to standard 13

14. Three Over-arching Processes
REQUIREMENTS
Joint Capabilities
Integration &
Development
System (JCIDS)
VCJCS/Service
Chief Oversight
GW-N
Defense
Acquisition
System
Planning, Programming,
Budgeting & Execution Process (PPBE)
ACQUISITION
RESOURCES
Milestone Decision
Authority (MDA)
Oversight
Packard
DEPSECDEF
Oversight
McNamara
Hard Issues take time
Challenge is synching management of the processes
How do you manage the seams? 14