Environment, Safety, and Occupational Health Opportunities in DoD Business Transformation May 4, 2006

2 Overview Defense Business Transformation DUSD(I&E) Business Enterprise Integration (BEI): Enabling Joint Transformation ESOH in the DoD Business Enterprise Architecture (BEA) On-going ESOH Integration in the DoD BEA: Building a Foundation for Sustainable Operations in the DoD BEA, Leveraging the EMS Framework

3 Business Transformation is Critical to DoD Success “We simply have to transform this place. It is every bit as important to the success of the global war on terrorism as the other things we’re doing.” -Secretary of Defense Donald Rumsfeld

4 The Need For Change is Clear Services and Agencies have individual processes and over 5000 supporting systems that focus primarily on their own operations Results are: –Costly, redundant and inefficient management of DoD resources –Accurate, reliable, timely, and informed management decision-making not supported DoD-wide Combatant Commanders Services ArmyNavyAFMarines Agencies NIMA DISA DLA Integrate Business Processes and Supporting Systems Across the Enterprise

5 Business Transformation Framework Planning, Budgeting Disposition Procurement Storage & Transportation Maintenance Personnel Design & Development Human Resource Management IT Infrastructure Legal Real Property & Installation Lifecycle Management Business Mission Area WARFIGHTERSWARFIGHTERS Financial Management Weapon System Lifecycle Management Materiel Supply & Service Management

6 The Business Enterprise Priorities on the right address the top level responsibilities for the Department of Defense associated with each Core Business Mission (CBM) on the left. Who are our people, what are their skills, where are they located? Who are our industry partners, and what is the state of our relationship with them? What assets are we providing to support the warfighter, and where are these assets deployed? How are we investing our funds to best enable the warfighting mission? Financial Visibility Materiel Visibility Common Supplier Engagement Personnel Visibility Real Property Accountability Acquisition Visibility Financial Management Materiel Supply & Service Management Weapon System Lifecycle Management Human Resources Management Required Integration DoD Core Business Missions (CBMs) BEA 3.0 Construct DoD Business Enterprise Priorities (BEPs) ARMY NAVY/MCAir ForceDLAUSTRANSCOM … Components Real Property & Installations Lifecycle Management

Acquisition, Technology and Logistics Business Strategy - Architecture Relationship Strategic Plan Strategic Plan Requirements Document Requirements Document Management Priorities Management Priorities Component Missions and Requirements Component Missions and Requirements Business Process Re-engineering Business Process Re-engineering Policy HQ/OSD-Level IT Systems Component- Level HQ/OSD-Level IT Systems Component- Level DoD BEA Tiered Architecture Component Architecture DoD BEA Tiered Architecture Component Architecture Goal Reporting Goal Reporting Metrics Business Objectives Business Objectives Warfighter Need Warfighter Need Objective Met Strategic Tactical Operational

Acquisition, Technology and Logistics ODUSD(I&E)/BEI Approach to Business Transformation Implementation Support Develop Enterprise capabilities Support Component development of implementation plans and milestones Review milestones and outcomes Implementation Support Develop Enterprise capabilities Support Component development of implementation plans and milestones Review milestones and outcomes Document and Embed Results Integrate requirements and processes Business Enterprise Architecture Enterprise Transition Plan Collaborate on Policy Updates Document and Embed Results Integrate requirements and processes Business Enterprise Architecture Enterprise Transition Plan Collaborate on Policy Updates Develop Requirements Document Review with Components Component authorization Develop Requirements Document Review with Components Component authorization Collaborative Business Process Reengineering Collaborative Business Process Reengineering Ongoing Leadership Activities Manage the real property and installations lifecycle information technology portfolio, and provide investment review Establish new I&E enterprise capabilities Pursue new reengineering opportunities Ongoing Leadership Activities Manage the real property and installations lifecycle information technology portfolio, and provide investment review Establish new I&E enterprise capabilities Pursue new reengineering opportunities

Acquisition, Technology and Logistics ESOH in the DoD Business Enterprise Architecture (BEA 3.1)

Acquisition, Technology and Logistics Manage Assets to Sustain the Mission Manage the Mission to Sustain Assets Internal and External Stakeholder Support Sustainable Operations Transforming Defense ESOH Management To Enhance Efficiency and Improve Warfighter Readiness BEI -- ESOH Strategy

Acquisition, Technology and Logistics Evolution of ESOH Management E(SOH)MS and Functional Integration Sustainable Operations P2/Pursuit of Excellence Acceptance & Compliance Tolerance Denial

Acquisition, Technology and Logistics Visualization of ESOH Integrated Throughout the DoD Business Mission

Acquisition, Technology and Logistics RPA – Perform ESOH Services OV-6c Assess ESOH Risk Develop ESOH Solution Develop ESOH Control Agreement (Operational Controls) Identify ESOH Aspect Assess ESOH Aspect ESOH Operational Controls integrated into mission processes

Acquisition, Technology and Logistics All DoD BEA models are available at: architecture/BEA_3_1_March_2006/iwp/de fault.htmhttp:// architecture/BEA_3_1_March_2006/iwp/de fault.htm To access the “ESOH Services” Business Process (OV-6C): –Navigate to “Operational Views;” Click on “OV-6c Business Process Model;” Scroll to, and click on “RPA – Perform ESOH Services” Ctrl + Left click to zoom in Ctrl + Right click to zoom out Left click on any item in the model for a description of the item

Acquisition, Technology and Logistics Proposed ESOH Integration in DoD Business Enterprise Architecture (BEA 4.0) Hazmat Business Process Reengineering (Phase 1)

Acquisition, Technology and Logistics Hazmat Business Process Reengineering (BPR) DGB-Approved Scope (November 30, 2004): End-to-end hazmat management for installations, deployment platforms, and industrial processes Hazmat BPR Phase 1 Scope: Operations and Sustainment (O&S) processes –Define DoD “core” product hazard data requirements –Establish DoD authoritative source for product hazard data –Enable unique linkage of hazardous product with hazard data –Create common business process to develop hazmat process (ESOH) controls Approach: Integrated, joint and cross-functional initiative comprising: –Military Departments and DLA, emphasizing ESOH and logistics collaboration –Business Transformation Agency: logistics, acquisition, and human resources communities Outcome: Documented DoD Hazmat BPR requirements –Common “core” data requirements for hazmat –Common business process to develop hazmat process controls (ESOH operational controls in the context of DoD Environmental Management Systems) Bottom-line: Implementation of BPR requirements will reduce costs and improve mission performance across DoD

Acquisition, Technology and Logistics Hazmat BPR Results (High-level Summary) Common process to develop “ESOH Controls” for hazmat operations –Identify the requirement for a hazmat in a mission activity –Collect data on mission activity and product hazards –Assess ESOH risk –Draft ESOH controls –Adjudicate ESOH controls with process owner –Develop ESOH control agreement –Implement ESOH controls within all affected mission processes –Feedback loop (evaluation of effectiveness of controls) The “Requirements” for implementation –Common process and 19 business rules –Standard data – 416 common, core data elements –Logical data relationships (used in IT system development) Key follow-on task: Establish DoD Product Hazard Data Master

Acquisition, Technology and Logistics Hazmat Process Authorization Sub-Process How does your EMS “align” mission and ESOH priorities? Adjudication of ESOH controls: ESOH staff teaming with process owners Development and adjudication of ESOH controls prior to process execution

Acquisition, Technology and Logistics Hazmat Phase 1 Results Standard data – common language for Hazmat Standard Hazmat business process incorporating best practices –“Modular” process for ESOH (operational) controls development –Leverages EMS –Supports sustainable operations Initiated development of DoD Product Hazard Data Master Hazmat incorporated in BEA 3.0 as “ESOH Control Requirements” ESOH transformation in DoD employs the EMS framework

Acquisition, Technology and Logistics Closing Thoughts… ESOH performance is improved by integrating sound ESOH management into core business processes Cross-functional integration is a key tenet of Business Enterprise Architecture How can the Federal ESOH community leverage the Federal Enterprise Architecture to improve the ESOH performance of Federal agencies? It is not necessary to change. Survival is not mandatory. - W. Edwards Deming - W. Edwards Deming