1. Reduce Total Ownership Cost (R-TOC) PURPOSE: The R-TOC program is to achieve readiness improvements in systems by improving the reliability of the system or the efficiency of the process to support them.

2. Reduce Total Ownership Cost (R-TOC) Background: A May 1999 memo from the USD/A&T stressed that the purpose of R-TOC was to maintain or improve current readiness while reducing O&S costs. The memo instructed the Services to focus on three general R-TOC approaches. Reliability, maintainability, and supportability (RM&S) improvements Reduction of logistics cycle time Competitive product support. A DoD "Strategy for Affordability" established a 20% O&S cost reduction goal for FY2005.

3. Reduce Total Ownership Cost (R-TOC) CLC Course Course Objective: To provide the DoD workforce with the knowledge, understanding and skills required to implement R-TOC initiatives necessary to improve system readiness and reduce operation and support costs.

4. Reduce Total Ownership Cost (R-TOC) Course Status: 2 April – CDSC provides suggested guidelines to Meridian KSI. 12 April – Meridian e-mails course outline to CDSC. 16 April – CDSC meets with OSD representative to coordinate content of R-TOC with the content of a R-TOC guide to be soon published. 17 April - representatives from CDSC, OSD & Meridian meet to flush out course content requirements. 20 June – Course content provided to Meridian in preparation for storyboard phase. 21 Aug. – Beta Testing 26 Sept. – 10 Oct. Target dates for making the R-TOC course available to DAU students.

5. Reduce Total Ownership Cost (R-TOC) Course Delivery & Content: Delivery – The material is to be delivered in six lessons. The total on line “seat-time” is three hours. On average there are 35 screens for each of the six lessons. Content Overview – Collectively the course provides an orientation to R-TOC requirement, definitions of key concepts, and description of best practices. Course material also consist of a short P.E. at the beginning and end of the course, as well as, a post test with a minimum passing score of 70%.

6. Reduce Total Ownership Cost (R-TOC) Course Content: Lesson 1- R-TOC Course Goals & Objectives: The course emphasizes cost of ownership reduction from a system perspective. Lesson 2- Introduction to RTOC Principles: A presentation of transactional material& an interactive exercise to introduce R- TOC in practice. Review question where appropriate are also included. Lesson 3 – R-TOC Approaches: This module contains management & technical approaches to R-TOC. Two examples, R-TOC Approach for total team integration & improved reliability contribution to R-TOC.

7. Reduce Total Ownership Cost (R-TOC) Course Content (con’t) Lesson 4 – R-TOC Tools: Examples of tools are risk analysis tools, Cost as an independent variable, and metrics that support R-TOC. Lesson 5 – Suggested R-TOC Practices: to include presentations on COTS & NDI, Technology insertion, and managing non-core competencies. Lesson 6 – R-TOC in Practice (Car Buying Exercise): This is revisiting the practical exercise in Lesson 2 to examine the initial their decision in light of new facts, decisions, information, and rationale provide by subsequent lessons.

8. Reduce Total Ownership Cost (R-TOC) Course Maintenance & Relevance: The CDSC team with work closely with IDA & Meridian representatives to ensure consistency and timeliness between the R-TOC lesson and the R-TOC Guide Book. The R-TOC lesson developer and other CDSC members will make presentations to and participate in R-TOC Working Group forums to ensure user focus in DAU’s R-TOC lessons. User representation and involvement in the R-TOC lesson development and implementation process is an ever-present necessity and reality.

9. Reduce Total Ownership Cost (R-TOC) R-TOC POC: Dr. Russell A. Vacante Program Director, Performance Based Logistics, CDSC TEL: 703-805-4864 E-mail: Russ.Vacante@dau.mil