Weapon System Support Metrics Executive PBL Tiger Team Meeting For further information, contact: Mike Finley, Director Ned Glattly, Principal PRTM 1000 Thomas Jefferson St., NW Suite 600 Washington, DC 20002 Tel: (202) 625-7200 Fax: (202) 625-7256 mfinley@prtm.com nglattly@prtm.com To fill with a photo: Right click box Choose Format Autoshape Choose Color, Fill Effects, Picture tab Choose Browse You can obtain photos from: http://internal.prtm.com/inside_prtm/gsic/library.htm or ftp://er-fileserver.prtm.com/Production/00GraphicResourceLib/Artwork/photos/ \\Er-fileserver\Production\00GraphicResourceLib\Artwork\photos 24 February, 2004 1

Objectives for today’s discussion Describe metrics hierarchy Level 3 and 4 metrics for weapon systems support, mapped to ILS Elements Weapon systems categories for differentiating metrics Discussion

Metrics and scorecards are constructed using a hierarchical SCOR-based approach Level 1 The Level 1 performance metrics provide an overview of the internal and external business indicators Level 1 Level 2 Metrics which either: a) Show the Level 1 metrics at a more detailed level b) Support the other metrics with supplementary/ complementary information c) Provide information which is required to complete the value proposition Level 2 Levels 3 and 4 Metrics which provide insight to the working environment of an organization or business practices it employs Level 3 and 4

The DoD Balanced Scorecard has identified Level 1 and 2 metrics for weapons system support L1: Force Readiness L2: Equipment Readiness L2: MC Rates L2: Commodity Availability L2: Logistics Units Readiness L2: Prepositioned Readiness L1: Force Sustainment L2: Materiel Support L2: Services Support Warfighter L1: Force Closure L2: Distribution Capacity L2: Distribution Visibility & Control L2: Distribution Effectiveness L2: Combat Effectiveness L2: Prepositioned Effectiveness L1: Reset L2: Reset L2: Operational Draw-down Innovation & Learning L1: Logistics Chain Reliability L2: Perfect Order Fulfillment L1: Logistics Chain Effectiveness L2: Logistics Chain Agility L2: Logistics Chain Cycle Time Logistics Process L1: Innovation Realization L2: Rate of Transformation L2: Rate of Improvement L1: Workforce Capability L2: Workforce Shaping L2: Learning Transformation L2: Employee Climate Resource Planning L1: Logistics Chain Predictability L2: Planned Cost to Actual Cost L2: Demand Forecast Accuracy L1: Logistics Chain Cost-Effectiveness L2: Total Logistics Chain Cost Percentage L2: Total Logistics Chain Cost L2: Value Added Productivity

For Weapon System Support, Metrics Should Drive Cost–Efficient Operational Effectiveness Cost should be managed efficiently, given required Warfighter Effectiveness Weapon System Defense Objective Operational Effectiveness Mission Completion and Effectiveness Cost- Efficient Delivery of Warfighter Capability War-Fighter Effectiveness Logistics Cost Effectiveness Mission Completion Mission Effectiveness Material Readiness Customer Wait Time Uptime … Planned cost vs. actual cost Cost / unit of operation Inventory … Representative Logistics Cost Weapon System Support Metrics Representative Weapon System Support Metrics

Definitional precision at each level is critical Overall Indicator of top-level DoD logistics functions that correlates to SCOR – Plan, Source, Make, Deliver Log. Chain Cost Effectiveness Level 1 Quantifiable Performance Metrics that focus on key performance areas – delivery , cost , assets, working capital, etc. Total Logistics Chain Cost Level 2 Diagnostic Process Metrics, supporting improvement decision making and required actions Cost / Unit of Operation (weapon system) Level 3 Activity Metrics, measuring performance of individual activities and process owners Maintenance Man Hours per Operating Hour Level 4

Lower level metrics should “roll-up” to higher, but this does not always mean the roll-up is mathematical The key is for improvement in a lower level metric to influence improvement in its corresponding higher level metric EXAMPLE Warfighter Metrics EXAMPLE Logistics Process Metrics EXAMPLE Resource Planning Metrics L1 Log. Chain Cost Effectiveness Force Mat. Readiness L1 Log. Chain Effectiveness L1 L2 % Systems achieving MC rates Total Logistics Chain Cost L2 Customer Wait Time L2 MC rates, by weapon system and service Logistics Response Time Cost / Unit of Operation (weapon system) L3 L3 L3 Maintenance Man Hours per Operating Hour L4 MTBF L4 Repair Cycle Time L4

Our Perspective: A balanced scorecard should focus on a few, well-balanced metrics Do Not Reward Outcome A, but hope for B. Tracking too many metrics is ineffective and dilutes focus Good scorecard metrics possess levels of detail for appropriate levels of management An improvement to a process should correspond to an improvement in the associated metric … the metrics have to move! In this effort, many metrics are Weapon System specific

Balanced Scorecard Metrics map to ILS process elements Proposed Level 3 and 4 metrics will measure the ILS Process Elements Key Metric Areas: Force Materiel Readiness Log Chain Reliability Log Chain Cost Effectiveness Innovation and Learning Materiel Reset Force Closure Force Sustainment Log Chain Effectiveness Log Chain Predictability Inventory Packaging, handling, storage, and Transportation Maintenance and Planning Manpower and Personnel Training and Support Computer Resources Support Supply Support Support Equipment Technical Data Design Interface Facilities Enabled by ILS Process Elements

Interested in your perspective on how industry measures these areas Overall Metrics: Operational Availability & Cost/ Unit of Operation-Unit Availability Our overall Metrics are supported by detailed ILS Metrics ILS Elements Level 3 Metrics Level 4 Metrics Maintenance and Planning RFI Rate MTTR Equipment-side Support Adequacy (maint.) Repair Cycle Time NMCM Manpower and Personnel Maintenance & Supply Manning Percentage Maintenance Man-Hour per Operating Hour Supply Support Customer Wait Time Secondary Inventory Value NMCS Equipment-side Support Adequacy (materiel) Supply Availability DMS/MS $ Weighted Backorders Value of Forward (OCONUS) Inventory Procurement Cycle Time Support Equipment Maint. Infrastructure Value (SE, TE, etc.) Support Equipment Availability Probability of fault detection Probability of fault isolation Training and Support % Trained Operators / Technicians Technical Data Accuracy / Availability of Technical Data Packaging, Handling, Storage, and Transportation On time Delivery Transportation Cycle Time Transportation Cost Logistics Response Time Design Interface MTBF “False Alarm” Rate Component Reliability Improvement Interested in your perspective on how industry measures these areas

Wheeled / Tracked Vehicles Moving forward, we will develop metrics and related targets that are specific to weapon systems and Services (preliminary) Wheeled / Tracked Vehicles Aircraft Engines Ships, Subs Missiles Sensors, Electronics Artillery Industrials ABRAMS M-1 FIGHTING VEHICLE SYSTEMS, BRADLEY (BFVS) TRUCK, HEAVY EXPANDED MOBILITY TACTICAL (HEMTT) TRUCK, VEHICLE SYSTEM, 1 1/4-TON (HMMWV) FAMILY OF MEDIUM AND LIGHT TACTICAL VEHICLES (FMTV) CONTAINER HANDLER, ROUGH TERRAIN TANK, COMBAT, FT, 120MM GUN (M1A1) LAV, ANTI-TANK ASSAULT AMPHIBIOUS VEHICLE, COMMAND (AAVC-7A1) M88A2 HERCULES RECOVERY VEHICLE TRACTOR, RT , ARTICULATED STEERING STRATOFORTRESS B-52 STRATOLIFTER C/KC-135 HERCULES C-130 GALAXY C-5 EAGLE F-15 AWACS, E-3A HELICOPTER, HH-60 E-4B AIRBORNE COMMAND POST B-2 BOMBER (ATB) SUPPORT EQUIPMENT, B-2 BOMBER HELICOPTER, CHINOOK, CH-47 HELICOPTER, BLACK HAWK UH-60A HELICOPTER, APACHE AH-64 TOMCAT F-14 HAWKEYE E-2C HORNET F/A-18 OSPREY V-22A, MARINE CORPS HORNET F/A-18 (E/F) HELICOPTER, SEAHAWK, H-60 AC-130H, MC-130H, EC-130E, HC-130) AIRCRAFT, TF33-100 (E3A/B/C) AIRCRAFT, T56-A-7/15 (C-130B/E/H/N/P) AIRCRAFT, GE T-700 (UH-60A) AIRCRAFT, T64-GE-3/7 (H-53B/C/H, HH-53B) ABRAMS M1 ENGINE T700-GE-701C (UH-60/MH-60K/AH-64) T700-GE-701 (AH-64) T55-GA-714A (CH-47) T55-L-714 (CH-47/MH-47E) AIRCRAFT J-52 AIRCRAFT F-402 AIRCRAFT F-404 (F/A-18 A-D) AIRCRAFT TF-30 AIRCRAFT TF-34 OHIO CLASS SSBN (TRIDENT) LOS ANGELES CLASS SSN (688) TICONDEROGA CLASS CG (47) NIMITZ CLASS CVN ARLEIGH BURKE CLASS DDG SEAWOLF CLASS SSN OSPREY CLASS MHC AVENGER CLASS MCM VIRGINIA CLASS SUBMARINE, SSN-774 MISSILE, TOW (GROUND - TOW I & II) MISSILE, PATRIOT MULTIPLE LAUNCH ROCKET SYSTEM (MLRS) MISSILE, HELLFIRE MISSILE, VEHICLE MOUNTED STINGER (AVENGER) STRATEGIC WEAPON SYSTEMS(POSEIDON AND TRIDENT) MILSTAR SYSTEM AIR DEFENSE SYSTEM, AN/TSQ-73 RADAR, FIREFINDER, AN/TPQ-36 AND AN/TPQ-37 TELEPHONE CIRCUIT SWITCH, AN/TTC-39 TACSATCOM, AN/TSC-85 AND AN/TSC-93 HELICOPTER OBSERVATION (AHIP), OH-58D RADIO SET, SATELLITE, TACTICAL, PORTABLE, AN/PSC-5 ABM A DIRECT AIR SUPPORT CENTRAL, AN/UYQ-3A (V) 2 GROUND MOBILE FORCE SATELLITE COMM TERM (AN/TSC-93A) RADAR SET, LIGHTWEIGHT 3D (AN/TPS-59) SWITCHING UNIT, TELEPHONE, RADIO SET, AN/MRC-138B(V) HOWITZER, M-109 SERIES HOWITZER, 155MM, M-198 WATER PURIFICATION UNIT - REVERSE OSMOSIS POWER UNIT MK48 AND TRAILER FAMILY NUCLEAR POWER PLANTS CATAPULT/ARRESTING GEAR MC Air Force Army Navy Representative Category A Weapon Systems

Overall Metrics for F-14: Mission Capable Rate & Flying Hour Cost F-14 Metrics supported by detailed ILS Metrics ILS Elements Level 3 Metrics Level 4 Metrics Maintenance and Planning RFI Rate I & D Level Mean Time to Repair the ACFT O Level Planeside SE/IMRL % Available I Level RTAT NMCM Manpower and Personnel Maintenance & Supply Manning Percentage 0&I Levels Maintenance Man-Hour per Operating Hour O-Level Supply Support Customer Wait Time Secondary Inventory Value for F-14 AVCAL Value Navy Owned Wholesale DLA Wholesale NMCS AVCAL Range & Depth Supply Availability for F-14 DMS/MS $ Weighted Backorders Value of Forward (OCONUS) Inventory Procurement Cycle Time Support Equipment Maint. Infrastructure Value (SE, TE, etc.) Support Equipment Availability Probability of fault detection Probability of fault isolation Training and Support % Trained Operators / Technicians Technical Data Accuracy / Availability of Technical Data Packaging, Handling, Storage, and Transportation On time Delivery Transportation Cycle Time Transportation Cost Logistics Response Time - Wholesale Design Interface MTBF for F-14 “False Alarm” Rate – A799 Component Reliability Improvement - $ Invested

Discussion