LOG235/236 Performance Based Logistics Bruce Hatlem Logistics Functional IPT September 2007

2 LOG 235 DAWIA Level 2 certification requirement Distance Learning course (on-line) –Approx 50 hrs of effort –Not interactive Target audience –Military officers, O-3 and above; civilians, GS-9 and above; and industry equivalents; –2 to 4 years of acquisition and/or logistics experience; –Currently assigned, or expected to be assigned, to a life cycle logistics position; –Level I certified in Life Cycle Logistics. Prerequisites: None

3 LOG 235 Objective Students who successfully complete this course will: More fully understand the knowledge areas of their job as members of the life cycle logistics workforce, concentrating on: performance-based product support; business case analysis; continuous modernization; supply chain management; configuration management; enterprise integration; commercial integration; support options; and reliability, maintainability, and supportability; Have a more in-depth knowledge of their current applications within the DoD; Understand the specific relation and application of the logistics functional areas in a performance-based logistics framework.

4 LOG 235 Content PBL Foundation, Planning, Execution and Control (four modules) Support Options (two mods) Continuous Modernization (two mods) RMS Commercial Integration SCM (three mods) Configuration Management BCA (two mods) Enterprise Integration

5 LOG 235 Source Civ (GS)1,8221,6261,385 Contractor Uniform Non-US (Civ)0106

6 LOG 235 Grads by Customer USA1,1711, USN/USMC USAF DOD Industry Fed Govt Other072 TOTAL2,3732,2571,958

7 LOG 235 MTM Courseware Job Impact Learning Effectiveness On-Line Delivery

8 LOG 235 Status Fielded in 2003 Revised 2005 BCA & SCM updated in New release Oct 2007 Next planned revision 2009

9 LOG 236 DAWIA Level 2 certification requirement Resident: 4.5 days Target audience –Military officers, O-3 and above; civilians, GS-9 and above; and industry equivalents; –2 to 4 years of acquisition and/or logistics experience; –Currently assigned, or expected to be assigned, to a life cycle logistics position; Prerequisites: –LOG 201B and LOG 235A –Level I certified in Life Cycle Logistics

10 LOG 236 Objective Students who successfully complete this course will be able to: Better apply skills introduced in the LOG 235A distance learning phase; Perform proficiently as members of the life cycle logistics workforce; Apply their knowledge of the concepts, policies, and practices of Performance Based Logistics (PBL); Identify the relationship between logistics functions and processes; Understand the basic concepts of business case analysis and its application in assessing and determining potential performance- based support alternatives; Understand the role and integration of PBL in the logistics transformation environment; Successfully apply the knowledge and understanding in the context of a performance-based support strategy.

11 MondayTuesdayWednesdayThursdayFriday Student Read Ahead USAF C-21 Case PSI Whitepaper Navy F-18 Case Parts I & II Title 10 Primer WCF Primer Navy F-18 Case Part III Army M109 Case Joint Strike Fighter Case PBL Questions EOC Survey AMCourse Introduction PBL Concepts Exercise DAU Resources PBL Critical Thinking Exercise PM LOG 236 Schedule Legacy Support Strategies PBL Learning Resources Supply Chain Opportunities Workload Allocation Performance Measurement Business Case Analysis New System Level PBL Strategies Guest Speaker

12 PBL Implementation 12-StepFramework

13 PBL Foundation 1) Integrate Requirements and Support Translate warfighter’s top-level mission requirements into key system support performance objectives 2) Form Team Include key stakeholders & disciplines Build trust and focus through open communication across boundaries 3) Baseline System Fielded system: Use actual data Replacing legacy: Parametric estimate New system: Life-cycle estimate

14 PBL Planning 4) Identify Performance Outcomes Translate top warfighter requirements (i.e. availability, cost) into lower measures (i.e. reliability, supply time) 5) Select Product Support Integrator Identify single point accountable for delivering performance outcomes Knowledgeable about the system Accountable for system performance Responsible for integrating support Incentivized to continuously improve Involved early in the system's life 6) Workload Allocation Strategy Apply statue (US Code Title 10 i.e. “Core” and “50/50”), service policy/guidance, public-private partnering, existing support & infrastructure … & then select best value

15 PBL Execution 7) Supply Chain Management Strategy Tailor solutions for; Unique repairables Common repairables Unique consumables Common consumables 8) Performance Based Agreements Embed warfighter system support performance objectives into measures and incentives with support integrators and providers 9) Business Case Analysis Determine “best value” solution by analyzing alternative performance benefits, costs and risks

16 PBL Control 10) Award Contracts Select contract type based on system maturity and risks Fixed-price when support costs stable Include performance incentives, reward improvement, and maintain flexibility 11) Financial Enablers Facilitate “buying performance” Single line of accounting for support Non-expiring, revolving fund enables long-term contracts and investments 12) Implement & Oversight Performance assessment plan includes; Who & when will access performance Performance measures & data sources Schedule for performance incentives

17 MondayTuesdayWednesdayThursdayFriday Student Read Ahead USAF C-21 Case PSI Whitepaper Navy F-18 Case Parts I & II Title 10 Primer WCF Primer Navy F-18 Case Part III Army M109 Case Joint Strike Fighter Case PBL Questions EOC Survey AMCourse Introduction PBL Concepts Exercise DAU Resources PBL Critical Thinking Exercise PM LOG 236 Schedule Legacy Support Strategies PBL Learning Resources Supply Chain Opportunities Workload Allocation Performance Measurement Business Case Analysis New System Level PBL Strategies Guest Speaker

18 How will I be assessed? Instructors will observe you –Participation –Participation within your work group –Participation –Participation in class discussion Presentations –Individual Presentations Instructors will assess your group –Knowledge of the material –Ability to articulate your knowledge –Assist the group towards completing tasks –Ability to defend your conclusions

19 LOG 236 Offerings (+4)

20 LOG 236 Source Civ (GS)1,0381, Contractor Uniform Non-US (Civ)021

21 LOG 236 Grads by Customer USA USN/USMC USAF DOD Industry Fed Govt742 Other001 TOTAL1,2511,3281,105

22 LOG 236 MTM Courseware Job Impact Learning Effectiveness On-Line Delivery Instructor

23 LOG 236 Status Fielded in 2003 Revised 2005 Maintenance Next planned revision 2009

24 SUMMARY Log 235 & 236 are meeting the needs of the workforce Log 236 needs complete revision because of dated cases