1. February 2013

2. Presentation to the DSSM Course Shrivenham
17 April 2013

3. Agenda Who are DSG? DSG role in the post SDSR environment
What do we do, how do we do it and where do we operate?
DSG role in the post SDSR environment
The evolving Land environment
DSG Strategy – Capacity and Capability
Capability Growth Programme
Sale
Challenges & Issues
Summary

4. The Defence Support Group
DSG is a wholly owned UK Government Trading Fund owned by the Secretary of State for Defence
Strategic capability providing Assembly, Maintenance, Repair, Overhaul, Upgrade and Support Services to the Ministry of Defence
Annual turnover of around £180 million
Employing approximately 2,700 staff in the UK as well as supporting operations overseas
The 2010 Strategic Defence & Security Review (SDSR) announced the intent to sell DSG by 2014/15
Key Points:
Go forward as a Trading Fund.
Geographic Spread.
Plus embedded and mobile teams.

5. Mission Vision Mission and Vision
To be a trusted partner in the delivery of
assembly, maintenance, repair, overhaul,
upgrade and support services for the
UK Armed Forces
Vision
Excel in Supporting Defence
Key Points:
Clear Mission.
Clear Vision.
Both of which are agreed by Owner and Customer alike.

6. Strategic Aims and Objectives
To concentrate on core mission of support to the UK Armed Forces
To be agile and flexible in order to support and sustain the Armed Forces’ Operational Advantage and Freedom of Action
To be integrated, wherever cost effective and appropriate, into future MOD procurement and support solutions
To provide services directly to MOD or indirectly through industry in agreement with MOD, positioned as preferred partner or sub contractor where appropriate
To continue to provide a flexible response to meet evolving Urgent Operational Requirements
To pursue wider market activity where it is complementary to the core mission
To enhance capabilities in supporting the delivery of SDSR and Army 2020 including key MOD initiatives such as the Land Equipment Support Strategy, Whole Fleet Management and Total Support Force
Key Points:
Go forward as a Trading Fund.
Geographic Spread.
Plus embedded and mobile teams.

7. Business Delivery Key Points: UK spread.
Headquarters Andover
Main Sites Ashchurch
BASTION (Afghanistan)
Bovington
Catterick (including IBES)
Colchester (including IBES)
Donnington
Land Supply Donnington
Sealand
Stafford
Stirling
Warminster
Support Sites Bicester
Bovington Detachment
Kinnegar
Longmoor (including IBES)
Lulworth
Sennybridge
In Barracks Abingdon
Equipment Aldershot
Support (IBES) Brawdy
Chivenor
Edinburgh
St Athan
Tidworth
Wattisham
Woodbridge
Woolwich
Mobile Support Teams Supporting operations at home and abroad, offering customers comprehensive support wherever they may be.
Key Points:
UK spread.
In terms of size, these range from Donnington and Sealand at about to Sennybridge in Wales with fewer than a dozen staff.

8. DSG Executive Management Board
The Executive Management Board is responsible for leading, directing and managing the Trading Fund effectively
Ensuring delivery of the objectives and targets set for it by the Owner, and in particular the successful implementation of an approved Corporate Strategic Plan
Key Points:
A trading Fund requires to be directed and governed by the use of Commercially proven processes and procedures.
These are executed under the direction of the Executive Management Board.

9. Our Capabilities: Land Equipment, Services & Systems Support
Assembly, Integration & Test
Maintenance, Repair Overhaul (MRO) & Upgrade
Mobile & In-Barracks Equipment Support
Deployed Operations Support
Fielding & Storage of Vehicles
Delivering Fleet Availability
Platforms range from armoured fighting vehicles, protected patrol vehicles and light, medium and heavy trucks through to light weapons
Facilities:
160,000 m² of strategically located workshops
Covered and Controlled Humidity Environment Storage
Test Facilities including military automotive engines and transmissions, test tracks, roller brake testing and live firing
Large custom built electro magnetic compatibility chamber
Key Points:
We require complex, world class facilities to support all manner of land platforms from Heavy Armoured Vehicles to the ubiquitous Land Rover.
We have the skills to support all sub-systems within the vehicles, electronic, hydraulic or whatever, and the specialist requirements demanded of weapons systems from rifles to missiles and their control systems.

10. Our Capabilities: Platforms & Equipment Types
CHALLENGER II
FV430/BULLDOG
WARRIOR

11. Our Capabilities: Platforms & Equipment Types
TITAN &TROJAN
CRARRV
CVR(T) SPARTAN
CVR(T) SCIMITAR

12. Our Capabilities: Platforms & Equipment Types
LIGHT GUN
SA-80
DROPS
LAND ROVER VARIANTS

13. Our Capabilities: Electronics and Components
Largest in-service electronics and components support facility in Europe
Comprehensive capabilities with support solutions including:
Electronics
Calibration
Electro Mechanical
Instrumentation
Specialist
Crypto
Mechanical
Optical Systems
Test Solutions
Consultancy/Support Services
Mobile Support Teams
Maintenance Approved Organisations Scheme (MAOS)
Facilities include:
Purpose built electronic workshops including Class 7 clean rooms
Comprehensive manual and automated test facilities
In-house Test Solution Design Team
Classified cryptographic facility with top secret classification

14. Our Capabilities: Land Supply
Asset Management, Procurement and Provisioning team committed to providing optimised supply chain solutions
Responsible for maintaining approximately 250,000 NATO Stock Numbers
Procurement transaction activities, exceeding £200 million on behalf of Defence Equipment & Support
Utilising innovative inventory management, contracting and supply chain optimisation methods to achieve Best Value for Defence
Delivering consistently high levels of part availability to satisfy front line command requirements
Expertise to assist in demand interpretation and supply chain material flow and stock level optimisation.
Leading supply chain management
Key Points:
The Electronics support facility at Sealand is world-renowned for the support it provides to MOD and industry customers alike.
The facility is leading in the work we are doing in developing the delivery of calibration support, being fully accredited in this role.
Electronics support is the only function where DARA and ABRO had business units of obvious synergy, hence work is ongoing to develop these 2 units together.

15. Our Capabilities: Support to Deployed Operations
DSG awarded main contractor status to deliver PJHQ’s Full Regeneration Capability in Camp BASTION until 2014
Equipment Sustainability System (ESS) programme removes the need for equipment rotation by conducting forward regeneration at the front line:
maximises equipment availability for operational commanders
minimises the time that vital equipment is away from critical operations
deliver better value for Defence
Readily available pool of skilled volunteers to sustain current and future operations
Delivering DSG capabilities at the front line - supporting all operational vehicle fleet plus surveillance and communications equipment

16. DSG Transformation, Performance Improvement and Benefits Delivery
The DSG Achieving Rapid Transformation programme was established in April 2009 and quickly set about delivering efficiency improvements, cost reductions and streamlining corporate overheads
DSG has reduced operating costs by over £40M since 2008
Implemented Operational Excellence, Enterprise Resource Planning (Baan software) and Sales & Operations Planning process pan-DSG
Improved output performance and savings for the customer
eg. Ashchurch key performance indicator improved from 70% to 98% under DSG operation, saving the customer circa £3M per year
eg.DSG Bastion providing circa £90M cost avoidance for MOD/HMT
Introduction of the DSG Capability Growth Programme which aims to shape DSG to meet future customer requirements and create an enduring DSG business
Key Points:
Go forward as a Trading Fund.
Geographic Spread.
Plus embedded and mobile teams.

17. Working With Key Points:
DSG has a strong history of working with key Defence OEMs.
This will continue.

18. The post SDSR environment

19. Background to evolving Land Environment - 2008 to present day
Armoured Vehicle Support Initiative/Transformation (AVSI/AVST)
Urgent Operational Requirement (UOR) acquisition – not part of core therefore no long term support
SCOUT & Utility Vehicle delays
SDSR / 3 Month Exercise
DSG Sale
Army 2020
Industry power shift – BAE SYSTEMS to new players
Delegation to Army Headquarters – new Army Operating Model
UOR into core – need long term support
Manpower Control Totals
DE&S Material Strategy
Less money, less people
2012 Land Equipment Support Strategy
–creation of new capacity
LESS

20. Merger – The Creation of DSG 1 Apr 08
Combined Turnover £390M
Combined Total Staff 7600
CAMRO
AbTrain
Benefits
£12.1M
Savings to date
Circa £40M
Combined Turnover £280M
Combined Staff
Turnover £226M
Staff 3600
Turnover £180M
Staff 2800
2001/02
2002/03
2007/08
2008/09
2012/13

21. Trading Fund Headcount vs Turnover
Land
Supply
Merger
announced
C2OP &
LABU Closure
Complete
Headcount
Turnover
Since the formation of ABRO and DARA and more so since we morphed into DSG, we have sought to regulate capacity against demand.
That must continue but in the end that's a zero sum game.
Over the last 2 years we have broaden that capability through LSBU, the Re-inforcing Fleets, Ashchurch - but they are only building blocks.
NACMO has supplemented our order book and given us new BASTION related opportunities, which Wayne will take us through,  but they are transient
Our traditional business still has longevity but volumes will decline and we need to assess this week just how much.
Cumulative Savings (£M)

22. The Strategy – Capacity and Capability
Strand 1 – To align DSG capacity with customer demand
Strand 2 – To develop enduring DSG capabilities to ensure viability

23. Strategic Summary Then Now Future Capacity Capability Viable &
Enduring
Capability
Delivered
Output
Quality
Cost reductions
lost LABU but expanded capability
Potential to be
- Fleet Management organisation
But environment changing
SDSR
Budget
Sale
} Customer Reqt

24. Capability Growth Programme Wave 1
CGP Core Programme Team
CGP Core Programme Team (
CGP Project 1 Light Weapons
Strategic
Support
Supplier
CGP Project 2 (Phase 1)
Army FM Pilot
CGP Project 3
TOTAL
SUPPORT
FORCE/ Joint Endeavour for Maintenance + Repair Optimisation (JEMRO)
CGP Project 4 Project BARNDALE (Footprint)
CGP Project 5 Ashchurch
Future
Equipment
Redeployment
Hub Forward
Op HERRICK Exchange Point
Good news. We have melted this down to a series of key initiatives which Andrew Kinniburgh will take us through
Our challenge is to exploit each initiative and this is not simply a Strategy idea. I need us all to grab these initiatives in the operational, commercial and financial streams. That means thinking through our future offerings, our pricing, our commercial approaches. We need to do this before the demand side of the business forces it upon us.
CGP Project 2 (Phase 2) FM Rollout

25. Building on our successes – evidence based growth
Composite assembly
Upgrade & AIT
Spares support to
PPV in theatre

26. Building on our successes – evidence based growth
Deployed Support
“Regeneration means doing more than Level 3 work - not quite base overhaul, but not far off.”
“We have already exceeded the figures that we originally put in the business case in terms of savings achieved from the facility.“
Commodore Walker, UK Commander Joint Force Support, Afghanistan.

27. Building on our successes – evidence based growth
Reinforcing Fleet
“DSG has definitely kept its part of the bargain. They have been quick to make up deficiencies and have fixed every problem. They have been proactive and helpful and know their stuff.”
SO2 G3 Eqpt ES Branch, HQ 3 Div
“This is what good looks like.”
Senior Army HQ Officer

28. Capability Growth 2013 and beyond
Assembly
Integration
& Test
MRO &
Upgrade
Storage
Receipt/
Inspection
Disposal
Inspection/
Fielding
Receipt
Land District
Load
Spares Provisioning/Procurement/
Inventory Management
OTEP, LTF(W), RF
Deployed Support
End to End support to the Land Fleet
across the 4 fleet concept - Operational, Training, Basic Unit Holdings, Sustainment

29. Challenges & Issues DSG SALE ECBU Tornado OSD Land Equipment
Support Strategy
SDSR/PR12
Platform
Reductions?
DSG
Whole
Force Concept/
TSF
Ashchurch
departure
HERRICK
Drawdown
Capability
Growth
Programme
Army HQ
Land Fleet
Requirement
New
Commercial
Arrangement

30. Summary
Recognised role for DSG at the heart of support to UK Armed Forces and wider MOD
Achieving ‘best value for defence’ through focusing on and delivering, cost reduction, efficiency and productivity improvements
Evolving to meet changing support environment
Exploiting opportunities such as Army 2020, Land Equipment Support Strategy and Fleet Management
Full implications to DSG of 2010 Strategic Defence & Security Review still remain uncertain – but clear intent by MOD to sell assets by 2014/15
Sale is subject to a value analysis by MOD, for now DSG remains a Trading Fund of the MOD and its relationship with MOD and Industry is business as usual
Key Points:
The strategic direction for DSG is clear.
DSG sits within the heart of Defence providing the support required for current and future systems, not only as a provider but with a key role within the decider role.
This clarity helps to sustain the relationships with industrial partners and provides a stable future for the workforce.

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