1. Logistics Balanced Scorecard Joint Logistics Board
19 December 2003

2. Agenda
DoD Balanced Scorecard (BSC)
JLB Direction
Proposed Logistics BSC
Way Ahead

3. Future Challenges Risk
DoD BSC
Maintain Quality Workforce
Ensure Sustainable Military Tempo
Maintain Workforce Satisfaction
Shape the Force of the Future Maintain Reasonable Force Costs
Force Management Risk
Do We Have the Force Available?
Are They Currently Ready?
What are the Critical Needs, Systems, People, Sustainment, and Infrastructure
Are We Prepared for Successful Strategy and Plan Execution?
Operational Risk
Approved by
SecDef
Streamline Decision Processes, Drive Financial Management and Acquisition Excellence
Improve the Readiness and Quality of Key Facilities
Realign Support to the Warfighter (including Defense Agencies)
Manage Overhead / Indirect Costs
Institutional Risk
Drive Innovative Joint Operations (CONOPS, Experiments, etc)
Define Future Human Capital Skills and Competencies
Define and Develop Transformational Capabilities
Develop More Effective Organizations
Future Challenges Risk

4. Intent of the DoD Logistics BSC
Link logistics performance and capability to the broader DoD corporate performance (DoD BSC)
Serve as the senior management (JLB) tool to assess logistics chain effectiveness in support of the warfighter to enable better decision-making
Facilitate strategic actions to guide logistics transformation at the DoD level
Incorporate performance measurement best practices, proven within commercial industry and government
Evolve over time as additional metrics become available
Endorsed By JLB

5. JLB Direction
Metrics should focus on all the capabilities that the logistics enterprise provides.
The BSC should facilitate relevant strategic management and resource allocation decision-making.
The BSC should reflect overall logistics chain effectiveness and efficiency in supporting the joint force.
The BSC needs to ensure data integrity and minimum latency in order to make the proper decisions.
The BSC should measure progress in achieving logistics chain interoperability/integration.
Metrics need to focus on cross service perspectives vice component perspectives. (4 individual service bar charts will not suffice. We need to determine the strategic value of the "sum of the service information" for the 3-star level and at AT&L)
Expand Warfighter Perspective to include Logistics Personnel & Prepositioning
Metrics, baseline values, and targets should be presented to the JLB during the November 03 meeting.
The logistics BSC should be consistent with the DoD-level BSC approach.

6. Logistics BSC Development Efforts
Utilized Norton & Kaplan Methodology along with other best business practices to develop DoD Logistics BSC framework
Achieved JLB Approval of Level 1 Metrics for Warfighter, Logistics Process, and Resource Planning Perspectives (Aug 03)
Mapped DoD LOG BSC Metrics to SCOR (Oct 03)
Stood up BSC IPT with organizational subject matter experts (Aug 03)
Reviewed Component Performance Management efforts and supporting systems
Refined metrics using BSC IPT & CMG (Oct-Nov 03)
Mapped proposed DoD Logistics BSC to DoD BSC (Nov – Dec 03)
Finalized metrics for JLB approval (Dec 03)

7. Approved DoD Logistics BSC Level 1 & 2 Metrics
As Directed
by the JLB
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
I&L requires
additional
work
L1: Force Closure
L2: Distribution Capacity
L2: Distribution Velocity & Control
L2: Distribution Effectiveness
L2: Combat Effectiveness Achievement
L2: Prepositioned Effectiveness
L1: Reset
L2: Reset
L2: Operational Draw-down
L1: Innovation Realization
L2: Rate of Transformation
L2: Rate of Improvement
L1: Workforce Capability
L2: Workforce Shaping
L2: Learning Transformation
L2: Employee Climate
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
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

8. Proposed Metrics – Log Process
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Proposed Metrics – Log Process
Level 1 Metric
Definition
Logistics Chain Reliability
Measures the ability of the logistics chain to accurately fulfill customer requirements for products and services.
Level 2 Metrics
Definition / Unit
Sources
Perfect Order Fulfillment
Percent orders filled perfectly ( the requested product / service, to the correct place, at the right time, in the right quantity, in the correct condition and packaging, with the correct documentation, to the correct customer) by service or agency
Short-Term: SAMMS, UICP, CCSS
Long-Term: Service / Agency / Command BSCs
Note: Highly dependent on on-going modernization. Only a partial picture can be revealed at this time, none could report fully today.
Perfect Order Fulfillment is the measure of performance of the logistics chain in negotiating and delivering shipments of the requested product / service, to the correct place, at the right time, in the right quantity, in the correct condition and packaging, with the correct documentation, to the correct customer.

9. Proposed Metrics – Log Process
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Proposed Metrics – Log Process
Level 1 Metric
Definition
Logistics Chain Effectiveness
Measures the DoD Logistics ability to deliver optimized logistics support to meet the National Security Strategy.
Level 2 Metrics
Definition / Unit
Sources
Logistics Chain Agility
The number of days for the DoD Log chain to adjust to a change in demand for products / services to support warfighter requirements.
Short-Term: TBD
Long-Term: Service / Agency / Command BSCs
Logistics Chain Cycle Time
Total elapsed time (days) between the issuance of a customer order and the satisfaction of that order by service or agency.
Short-Term: DLA/Service CWT Systems
Logistics Chain Capacity - The ability of the DoD logistics chain to support the flexible demand for products and services during baseline and surge.
Focussing on both flexibility and consumption rates in this metric. Investigating to what degree we use PBLs to meet the need. Also investigating total number of completed transactions to total number of transactions in the pipeline.
Recognize the capacity requirements in downsizing, baseline, and surge environments.
Logistics Chain Cycle Time The time it takes the logistics chain to complete the logistics cycle, beginning at request and ending at delivery or closure.

10. Proposed Metrics - Resource Planning
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Proposed Metrics - Resource Planning
Level 1 Metric
Definition
Logistics Chain Predictability
Measures the difference between the forecasted and actual logistics cost and demand.
Level 2 Metrics
Definitions
Sources
Planned Cost to Actual Cost
The difference between forecasted logistics costs and actual logistics cost by military service or agency
Short-Term & Long-Term:
Budget, Future Year Defense Program (FYDP)
Demand Forecast Accuracy
The difference between forecasted requirements and actual requirements by service or agency
Short-Term: TBD
Long-Term: Service / Agency / Command BSC
Demand Forecast Accuracy equals the Forecast Sum minus the Sum of the Variance. (Forecast Sum = The sum of the units forecasted to be shipped each period based upon the forecast generated at the critical time fence. Sum of the Variance = The sum of the absolute values, at the forecasted line item level, of the differences between each period’s forecast and actual demand for the same period).

11. Proposed Metrics - Resource Planning
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Proposed Metrics - Resource Planning
Level 1 Metric
Definition
Logistics Chain Cost Effectiveness
Measures the cost and value of the logistics chain.
Level 2 Metrics
Definitions
Sources
Total Logistics Chain Cost Percentage
Total Logistics Cost as a percentage of the total DoD Budget.
Short-Term: Service Budgets, Future Year Defense Program (FYDP), Defense Manpower Data Center (DMDC)
Long-Term: Service / Agency / Command BSCs
Total Logistics Chain Cost
Total Logistics Cost
Value Added Productivity
The measurement of value of output as compared to the total number of logistics personnel.
Short-Term: TBD
Long-Term: TBD
Value Added Productivity - Note: Value of output needs to be determined
Total Logistics Chain Costs – Currently reviewing the Standard Charter of Accounts that will be adopted by the BMMP or BEA.

12. Proposed Metrics – Innovation & Learning
Resource
Planning
Warfighter
Logistics
Process
Proposed Metrics – Innovation & Learning
Level 1 Metric
Definition
Innovation Realization
Measures the level of success with meeting transformation goals.
Level 2 Metrics
Definitions
Sources
Rate of Transformation
% of completed transformation initiatives
Short Term: TBD
Long Term: TBD
Rate of Improvement
% of workforce improvement on BSC measures (POF, Log Chain Cycle Time, products under RFID visibility)
Level 2 Rate of Transformation: Measures the rate of implementation of key initiatives to include
ERP Implementation : # of users
PBL/PBA Implementation # of agreements
RFID Implementation:
BSC Implementation:
Data Sources : Services BSCs
Level 2 Rate of Improvement: Measures the rate at which initiatives have an effect on the performance of the supply chain cycle times, quality, productivity and costs
% of products under RFID visibility
Reduced customer wait time
Number of disparate systems
POF
Log Chain Cycle Time Improvements
%of successfully completed critical transactions
Data Sources
Rate of Transformation data elements include Architecture Compliance (Portfolio Management) requirements, such as:
Percent Component architecture compliance
Percent program architecture compliance
Percent reduction in number of Logistics systems
Percent of Logistics systems portfolio will be COTS

13. Proposed Metrics – Innovation & Learning
Resource
Planning
Warfighter
Logistics
Process
Proposed Metrics – Innovation & Learning
Level 1 Metric
Definition
Workforce Capacity
Provides insight into the existing labor pool, those trained in key initiatives, and general workforce satisfaction.
Level 2 Metrics
Definitions
Sources
Workforce Shaping
% of filled Logistics positions
Short Term & Long Term: Defense Manpower Data Center (DMDC)
Learning Transformation
% of Logistics people trained to required training
Short Term: TBD
Long Term: TBD
Employee Climate
% of satisfied Logistics people
Short Term & Long Term: Command Climate Surveys
Level 2 Workforce Shaping: Measures the size and capability of the workforce
Size and levels of workforce
Skill Sets of workforce
Length of service
Retirement rates
Retention rates
% unfilled positions
Hiring rates
Data Sources: HR
Level 2 Learning Transformation: Measures Logistics employees’ rate of training around key transformation initiatives to support the Warfighter.
Number of people trained in the following:
ERP training
BSC training
PBL/PBA training
RFID Process Training
Materiel Training
Data Sources: Automated Skill Management System, HR
Level 2 Employee Climate: Measures Logistics Community perceptions around the work environment
General employee satisfaction
Grievance rates
Compensation
Data Sources: HR, Command Climate Surveys

14. External Effectiveness Internal Effectiveness Spectrum of Operations
BSC Hierarchy
Manage Risk. (QDR 01, MID 901)
DoD Scorecard
Operations
Ops Readiness
Performance
Cost
Logistics
Readiness
Performance
Cost
Personnel
Pers Readiness
Performance
Cost
Logistics:
Assess Logistics chain effectiveness
Guide Logistics transformation
Output = Capability
Input = Resources
External Effectiveness
Internal Effectiveness
Internal Efficiency
End-to-End processes
Spectrum of Operations
To illustrate the conceptual framework for which the DoD Logistics Scorecard exists we need to understand the missions and relationships of the services, combatant commanders, and the Department of Defense. Let’s build the framework from the bottom up starting with the services.
{Green area bottom left}
From the component level the general mission of each service or component is to organize, train, and equip forces in support of combatant commanders’ force projection missions. Within each service the logistics function provides logistics support (equip function) to combat forces to enable them to accomplish assigned missions across the full spectrum of operations and warfare.
At the service level components will manage their organizations and their service unique log function as necessary which may include Component Enterprise and Service Logistics Scorecards.
{Orange area middle left side}
While components organize, train, and equip forces Combatant Commanders project these forces and apply capabilities in support of National Security objectives across the full spectrum of operations. Combatant Commanders will execute their missions and identify performance measures to evaluate the conduct of their operations.
{Purple area top left side}
At the Executive level the Department’s mission is to Plan, Advise, and Carry Out National Security Policies as Directed by the SecDef and President. DoD executives concern themselves with the conduct of operations as it relates to the service’s operational, equipment, and personnel readiness.
The Department Scorecard will encompass all functions of the department to include operations, logistics, and personnel. In turn each functional department may manage their area with a unique balanced scorecard hence the requirements for a DoD Logistics Balanced Scorecard.
Measuring the logistics function as it relates to the spectrum of operations requires insight into external effectiveness (warfighter support) and internal effectiveness (logistics process) and internal efficiency (Resource Planning and Innovation & Learning).
By function the Logistics component of the overall DoD mission is to “Plan and Allocate Logistics Resources, and Monitor Logistics Performance in Support National Security Policies and Priorities.” Based on this mission logistics executives will evaluate equipment readiness for the spectrum of operations based on performance measures – external / internal effectiveness, and internal efficiency.
The analysis of these measures will guide the use of resources (inputs) to provide capability (outputs) in support of combat operations and logistics transformation. The DoD Logistics Scorecard will also address logistics specific concerns identified at the DoD Scorecard level.
Maintenance
Deployment
Actionable and meaningful process metrics and targets (Execution Level)
Weapon System Support
Supply Chain Management
Distribution

15. Brief USD(AT&L) on BSC status (Jan 04)
Proposed Way Ahead
Brief USD(AT&L) on BSC status (Jan 04)
IPTs/OIPTs develop meaningful and actionable metrics and targets by critical process (15 Feb 04)
Weapon System Support (TLCSM Executive Council)
Maintenance (MTSSG)
Supply Chain Management (BBP)
Distribution (DTTF)
Deployment (JDPO)
CMG assess and integrate meaningful and actionable metrics and targets (1 March 04)
Build BSC Desktop Application (Aug 04)

16. Backup Slides

17. Force Management Risk Operational Risk
Maintain Quality Workforce
L2 Metrics: Rate of Transformation, Rate of Improvement, Learning Transformation
Ensure Sustainable Military Tempo Maintain Workforce Satisfaction
L2 Metric: Workforce Shaping L2 Metric: Employee Climate
Shape the Force of the Future Maintain Reasonable Force Costs
L2 Metrics: Rate of Transformation, L2 Metric: Value Added Productivity
Workforce Shaping
Operational Risk
Do We Have the Force Available?
L2 Metrics: Logistics Unit Readiness, Movement Visibility & Control, Combat Effectiveness Achievement, Services Support, Reset, Workforce Shaping
Are They Currently Ready?
L2 Metrics: Equipment Readiness, Logistics Unit Readiness, Reset, Learning Transformation
What are the Critical Needs, Systems, People, Sustainment, and Infrastructure
L2 Metrics: Commodity Availability, Prepositioned Readiness, Movement Capacity, Movement Visibility & Control, Movement Effectiveness, Prepositioned Effectiveness, Materiel Support, Services Support, Reset
Are We Prepared for Successful Strategy and Plan Execution?
L2 Metrics: MC Rates, Prepositioned Readiness, Movement Capacity, Movement Visibility & Control, Movement Effectiveness, Combat Effectiveness Achievement, Materiel Support, Services Support, Reset, Operational Drawdown, Rate of Transformation

18. Future Challenges Risk
Institutional Risk
Streamline Decision Processes, Drive Financial Management and Acquisition Excellence
L2 Metrics: Planned Cost to Actual Cost, Demand Forecast Accuracy, Total Log Chain Cost %, Total Log Chain Cost, Value Added Productivity
Improve the Readiness and Quality of Key Facilities
L2 Metrics: Total Log Chain Cost %, Total Log Chain Cost
Realign Support to the Warfighter (including Defense Agencies)
L2 Metrics: Perfect Order Fulfillment, Log Chain Capacity, Log Chain Cycle Time
Manage Overhead / Indirect Costs
L2 Metrics: Planned Cost to Actual Cost, Demand Forecast Accuracy
Future Challenges Risk
Drive Innovative Joint Operations (CONOPS, Experiments, etc)
L2 Metrics: Planned Cost to Actual Cost, Rate of Transformation
Define Future Human Capital Skills and Competencies
L2 Metrics: Workforce Shaping, Learning Transformation
Define and Develop Transformational Capabilities
L2 Metrics: Rate of Improvement
Develop More Effective Organizations
L2 Metrics: Demand Forecast Accuracy, Rate of Improvement, Learning Transformation

19. JLB DoD Logistics Vision
Support rapid, agile deployment, employment, sustainment and reset/reconstitution of the Total Force, within acceptable risk, across the full spectrum of operations in a cost-effective manner.

20. Warfighter Perspective*
JLB DoD Logistics BSC Objectives
The four JLB-approved perspectives of the DoD Logistics BSC are: Warfighter, Logistics Process, Resource Planning, and Innovation & Learning.
Provide optimum responsive logistics support to the joint warfighter to ensure:
Immediately employable force options
A rapidly deployable capability
A sustainable total force
Warfighter Perspective*
Ensure a skilled capable workforce responsible for meeting the warfighter logistics support requirements to include:
Introduction of leading edge advanced concepts
Organization adaptability
Workforce shaping
Innovation & Learning Perspective
Provide effective logistics chain performance and capacity while reducing the logistics footprint to include:
Reducing cycle time, improving effectiveness, improve product quality, leveraging IT improvements and Commercial Advances
Logistics Process Perspective
Vision
and Strategy
Ensure affordable logistics support through resources and choices that enable effective joint warfighter capability to include:
Accurately forecast and identify logistics requirements
Identify and understand the risks associated with logistics resource allocation
Improved cost predictability and constrained cost growth.
Resource Planning Perspective

21. DoD Logistics Level 1 Metrics
L1: Force Readiness
L1: Force Closure
L1: Force Sustainment
Warfighter
TBD
Innovation & Learning
L1: Logistics Chain Predictability
L1: Logistics Chain Cost Effectiveness
Resource Planning
L1: Logistics Chain Reliability
L1: Logistics Chain Effectiveness
Logistics Process
Approved by JLB August 5, 2003

22. JLB Approved Metrics Warfighter Innovation & Learning
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 Velocity & Control
L2: Distribution Effectiveness
L2: Combat Effectiveness Achievement
L2: Prepositioned Effectiveness
L1: Reset
L2: Reset
L2: Operational Draw-down
I&L requires
additional
work
L1: Innovation Realization
L2: Rate of Transformation
L2: Rate of Improvement
L1: Workforce Capability
L2: Workforce Shaping
L2: Learning Transformation
L2: Employee Climate
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
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

23. Metric Recommendations - Warfighter
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Metric Recommendations - Warfighter
Level 1 Metric
Definition
Force Readiness
Measurement of operational availability as it relates to logistics personnel, equipment, maintenance, spares, and accompanying supplies.
Level 2 Metrics
Definition / Unit
Sources
Equipment Readiness
Percent (critical) equipment readiness
Short-Term: SORTS (USN & USMC), SAMMS/BSM (DLA), CAMS/OLVIMS & GO81 (USAF), STAMIS/Property book (Army)
Long-Term: Service / Agency / Command BSCs
Mission Capability Rates
Percent Mission Capable Rates
Short-Term: Quarterly Reports, SAMMS/BSM (DLA), CAMS/OLVIMS & GO81 (USAF), STAMIS/Property book (Army), MCGERR (USMC), TRMS (USN)
Commodity Availability
Percent availability
Short-Term: SAMMS/BSM (DLA), CAMS/ OLVIMS & GO81 (USAF), STAMIS/Property book (Army), Log Sit Reps (USMC), Document Status File at NAVICP (USN)
Logistics Unit Readiness
Percent of Logistics Unit readiness
Short-Term: SORTS
Long-Term: TBD
Prepositioned Readiness
Percent of prepositioned materiel ready compared to COCOM requirement
Short-Term: TBD
Equipment Readiness is the measurement of readiness of critical equipment and accompanying supplies required in a theatre of operation for Supply Classes 7&9. It is the difference between what is authorized versus what is assigned.
Mission Capability Rates is the measurement of the equipments’ ability to meet operational needs. This may be a measure of Not Mission Capable Rates for Logistics in order to provide a more Logistics focused measure. (NMC for Supply and NMC for Maintenance)
Commodity Availability is the measurement of the readiness of all commodities required in a theater of operation for Supply Classes 1-6 & 8

24. Metric Recommendations - Warfighter
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Metric Recommendations - Warfighter
Level 1 Metric
Definition
Force Closure
Measurement of the capacity to move forces and equipment to final destination (through RSOI) in accordance with Warfighter requirements.
Level 2 Metrics
Definition / Unit
Sources
Distribution Capacity
Pipeline capacity (ton/day) for daily operations and surge.
Short Term & Long Term: TRANSCOM (GTN, WPS, GDSS)
Distribution Visibility & Control
The measurement / level of visibility of personnel, equipment, and supplies in the distribution network to support the warfighter demand
Distribution Effectiveness
Percent people, initial equipment, and sustainment stock by RDD by CoCom
Combat Effectiveness Achievement
Time from the deployment order to the unit movement through RSOI to forward staging
Short-Term: TBD
Long-Term: TBD
Prepositioned Effectiveness
Percent of materiel prepositioned by required COCOM date
Short-Term: SORTS
Movement Capacity - The availability of transportation pipeline (assets / nodes) to meet warfighter demand in times of surge and daily operations
Movement Visibility – This may be measured by the ratio of incomplete transportation movement documents to complete transportation movement documents supporting operational requirements. RFID enabled
Movement Effectiveness - Percent people, initial equipment, and sustainment stock by RDD by CoCom. OR The measurement of the cycle times required to deliver forces and materiel into theatres of operation from the point of unit identification to set up time in theatre.

25. Metric Recommendations - Warfighter
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Metric Recommendations - Warfighter
Level 1 Metric
Definition
Force Sustainment
Measurement of the ability to provide support to current operations.
Level 2 Metrics
Definition / Unit
Sources
Materiel Support
Percent of materiel into theater by RDD
Short-Term & Long-Term: SAMMS/BSM (DLA), CAMS/OLVIMS & GO81 (USAF), STAMIS/Property book (Army), Log Sit Reps (USMC), One Touch/FIMRS/LMRS/ NALCOMIS/RSupply (USN)
Services Support
Percent of services support into theatre by RDD
Short-Term : TBD
Long-Term: TBD
Materiel Support is the measurement of current materiel support to the warfighter
Other Potential Sources: IPLs, JEWELS, ALERTS, COCOM & J4 Feedback
Services Support is the measurement of current services support to the warfighter
Potential Sources: IPLs, JEWELS, ALERTS, COCOM, J4 Feedback. Other source may be monthly COCOM logistics meetings.

26. Metric Recommendations - Warfighter
Innovation
& Learning
Resource
Planning
Warfighter
Logistics
Process
Metric Recommendations - Warfighter
Level 1 Metric
Definition
Reset (new metric)
Measurement of the ability to meet follow-on operational readiness requirements (as needed)
Level 2 Metrics
Definition / Unit
Sources
Reset
Percent reset by CoCom
Short-Term: SORTS, JOPES / TPFDD
Long-Term: Service / Agency / Command BSCs
Operational Draw-down
Percent to which an operation is drawn down in order to provide forces for follow-on operations. Measures include the percentage of total shipments received back at the designated location, remaining cargo / personnel waiting to redeploy, and status of in-theatre equipment.
Short-Term: TBD
Operational Drawdown Measure of the degree to which an operation is drawn down in order to provide forces for follow-on operations. Measures include the percentage of total shipments received back at the designated location, remaining cargo / personnel waiting to redeploy, and status of in-theatre equipment.
Reset Measure of the degree to which U.S. forces have achieved the desired geographical “set” and readiness of units to conduct follow-on operations. Measures include percentage of forces in position, time to reposition forces, equipment/supply/ commodity readiness, availability of lift to reposition, safety level reset cycle, and risk of positioning to current operations.

27. Proposed L2 Metrics for Target Setting
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: Movement Capacity
L2: Movement Visibility & Control
L2: Movement Effectiveness
L2: Combat Effectiveness Achievement
L2: Prepositioned Effectiveness
L1: Reset
L2: Reset
L2: Operational Draw-down
L1: Innovation Realization
L2: Rate of Transformation
L2: Rate of Improvement
L1: Workforce Capacity
L2: Workforce Shaping (Logistics Workforce)
L2: Learning Transformation
L2: Employee Climate
Innovation & Learning
L1: Logistics Chain Reliability
L2: Perfect Order Fulfillment (LRT & CWT)
L1: Logistics Chain Effectiveness
L2: Logistics Chain Capacity
L2: Logistics Chain Cycle Time
Logistics Process
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

28. Recommended target would be:
Mission Capable Rates
Percent of Critical Weapon Systems that meet or exceed the Weapon System Mission Capable Rate Goal
Individual weapon system data is available at each of the Military Services
Military Services need to identify critical systems and corresponding goals
Example: Quarterly Readiness Report to Congress shows 13 of 16 (81%) Army reported systems met or exceeded goal as of March 2002
Recommended target would be:
X % increase in number of systems that meet or exceed goal across the DoD

29. Will Evolve to Perfect Order Fulfillment
Customer Wait Time
SecDef Direction
Achieve
Commercial
Standards
Commercial Benchmark
16.82 Average
3.57 Best In Class
FY 01 Average – 17 days FY 02 Average – FY 03 Average – 19 days
Increase in Days due to Additional OIF Requisitions and OIF Requisition Receipt Lag Time
Will Evolve to Perfect Order Fulfillment

30. Logistics Response Time
SecDef Direction
Achieve
Commercial
Standards
Days
Commercial Benchmark
16.82 Average
3.57 Best In Class
Calendar Year
*National level fills, all requisitions
Increase in Days due to Additional OIF Requisitions and OIF Requisition Receipt Lag Time

31. Logistics Resource Baseline
Dollars in Billions
Constant 2004 dollars. DoD budget line from the NATIONAL DEFENSE BUDGET ESTIMATES - FY 2004, Table 6-1.

32. Logistics vs. DoD Budget
Commercial Benchmark
Cost as a % of Revenue
10.8% Average
5.13% Best In Class
Constant 2004 dollars. DoD budget line from the NATIONAL DEFENSE BUDGET ESTIMATES - FY 2004, Table 6-1.
Logistics consuming smaller portion of DoD budget; freeing resources for transformation.

33. Logistics Personnel
Number Personnel in Thousands