0. The Supply Chain Metrics Group
LMARS Support for Pipeline Measurement Performance
Paul Blackwell
Office of the Deputy Assistant Secretary of Defense for
Supply Chain Integration
March12, 2013

1. Supply Chain Metrics Strategy
Agenda
Supply Chain Metrics Group and Contributing Efforts
OSD Priorities for Pipeline Measurement
Supply Chain Metrics Center
Measurable Supply Chain Attributes
“DNA” Chart for each Metric
Upgrading Supply Chain Metrics Center
Way Ahead
Supply Chain Metrics Strategy
Purpose: Integrate the metrics originating from several Department-level supply chain metrics efforts into a comprehensive set of metrics monitoring the health of the DoD supply chain.
Objectives:
Establish a framework of enterprise metrics for managing with measurements
Develop definitions, secure data sources, and establish data collection procedures for selected metrics.
Expand or enhance metrics as pipeline measurement improvements are incorporated
Incorporate enterprise metrics into the OSD supply chain metrics center along with enhanced analytical and reporting capabilities.

2. Supply Chain Metrics Group and Contributing Efforts
Validate the effectiveness of measures
Standardize definitions, measurements &computations
Ensure consistent approaches
Integrate into performance framework
Collaborate with related metrics efforts
Enable new measures
Ongoing Efforts
Comprehensive Inventory Management Improvement Plan
Joint Supply Chain Architecture
DPO Distribution Management (Distribution Performance Reviews)
Pipeline Measurement
Strategic Network Optimization
Business Process Improvements
CWT
LRT
TDD Compliance

3. OSD Priorities for Enhancement of Pipeline Measurement
Addressing weaknesses identified as supply chain high risks:
Unmet delivery standards and timelines for cargo shipments
Incomplete delivery data for surface shipments
Inadequate RFID to track cargo shipments to and within theater
Lack of common operating picture for integrated distribution data
Development of guidance on implementing performance management
Alignment to enterprise-wide supply chain performance metrics
Lack of performance measures across the enterprise
Tracking of retrograde of materiel
Retrograde Team Report– Sent to the Acting, USD(AT&L) on April 1, 2012

4. Supply Chain Metrics Center
Metrics to be incorporated
(F) Order Response Time
(N) First Pass Effectiveness
(S) Retrograde Asset Write- Offs
(S) Retrograde Over-Aged Due-Ins
(C) Demand Forecast Error
(C) Total Supply Chain Management Costs
(C) Customer Price Change
(S) NMC Rates
(S) Customer Wait Time (CWT)
(L) Order Fulfillment
(C) Procurement Lead Time
(C) Value of Inventory
(C) Excess On-Hand
(C) Excess On-Order
(B) Logistics Cost Baseline (LCB)
(C) Supply Availability
(C) NMCS Backorders
(L) Logistics Response Time (LRT)
(S) Repair Turnaround Time
(B) Inventory Turn
(D) Denial Rates
(S) Retrograde Time
(DATA SOURCES) LEGEND
(C) Military Services & DLA
(S) Military Services
(B) Working Capital Fund Budgets
(L) Logistics Metrics Analysis Reporting System (LMARS)
(N) Navy
(F) Air Force
(D) DLA
CWT Tool
Drill down into Service CWT records.
LRT Tool
Drill down into LMARS and DLA/TRANSCOM LRT records.
LCB Tool
Drill down into LCB records.
Strat & SSIR Tools
Drill down into Component inventory records
Analysis Tools

5. Metrics Structure DoD Supply Chain Metrics by Measurable Attributes
Attribute/ Outcome
Definition
Currently Collected Metrics
Proposed Additional Metrics
Standard
Not Standard Across DOD
Materiel Readiness
The ability of the supply chain to support weapon systems in undertaking and sustaining their assigned missions at planned peacetime and wartime utilization rates
NMC Rates
NMCS Backorders
Responsiveness
The ability of the supply chain to respond to customer materiel requests according to priority by providing the right support when it is needed and where needed
Customer Wait Time (O Level)
Logistics Response Time
Response Time Effectiveness (e.g. Air Force Order Response Time, Navy First Pass Effectiveness)
Reliability
The dependability and consistency of the supply chain providers in delivery of required material support at a time and destination specified by the customer
Denial Rates
TDD Compliance
Wholesale Perfect Order Fulfillment (DLA)
Wholesale Supply Availability
Planning and Precision
The ability of the supply chain to accurately anticipate customer requirements and plan, coordinate and execute accordingly.
Excess On-Hand
Excess On-Order
Repair Turnaround Time (D Level)
Retrograde Time
Procurement Lead Time
Demand Forecast Error /Bias
Retrograde Over-Aged Due-Ins
Lead Time Variance
Cost
The amount of supply chain resources required to deliver a specific performance outcome
Value of Secondary Item Inventory
Inventory Segmentation
(No Demand 5 or More Years) ($)
Total Supply Chain Cost (Log Cost Baseline)
Total Supply Chain Management Costs
Tiered Inventory Turns
Price Change
Retrograde Asset Write-Offs
Same slide you have seen with a couple exceptions
ORT and FPS are rolled under response time effectiveness under Responsiveness as we sort out the outcome of ORT and alternatives

6. “DNA” Chart for Each Metric
Customer Wait Time Organizational Maintenance (CWTOM)
Guidance & pending action
Official definition for metric
Computational rules
Relates metric to a supply chain attribute
Identifies data source(s)
Reporting procedures
Business value of the metric
Applicable goals
Proposed SC Metrics Center display
Viewing options
A single information resource for all metrics related data

7. Logistics Response Time (LRT)
Definition
A measurement of the total elapsed time (in days) from customer requisition to receipt of materiel ordered from a DoD organic or commercial source of supply.
Supply Chain Attribute
Responsiveness: Timely receipt of materiel demanded from wholesale sources of supply to retail activities and end-use customers is key to DoD supply chain performance.
Business Value
This metric:
indicates how timely the wholesale echelon of supply and distribution system is responding to their customers – the largest segment being retail activities
links DoD supply chain performance to negotiated standards for responsiveness
(e.g., TDD Standards)
Status of SCMG Actions
Completed
Pending
Working
Future
Definition in Policy
Definition approved for insertion in draft DoD M.
Business Rules
The measurement of LRT is from the date the retail supply activity requisition is submitted to a DoD or designated commercial source of supply until the date the requisitioned materiel is received and posted in the materiel management system of the requisitioner.
Data Source
Logistics Metrics Analysis Reporting System (LMARS)
OSD Data Requirement
DLA Transaction Services submits LMARS records to SCI on a monthly basis.
Goals or Objectives
TDD standards are used by supply chain providers to evaluate their performance in delivering ordered materiel and do not consider backorder time. However, no consensus exists on how to measure backorder time.
Display
Current display shows Total Pipeline Times and CONUS Segment Times by source of supply, Geographic COCOM, and a myriad of other options.
CIMIP
Orient Slide – 2nd from bottom purple line is the DoD LRT. Uptick is always expected due to Medical Prime Vendor data lagging. Should drop ~3 days after receiving that data
Use of TDD standards are goal is a challenge.
TDD do not include backorder time.
TDD standards differ based on location. Exploring use of weighted TDD standards as goal
We are analyzing how to measure the backorder time and display it
Backorder time is not a data element of LMARS, our data source for LRT data.  Moreover, dates needed to computed backorder time are not always in the file.  The question is what is the best estimate.
Challenges and Way Ahead
Analyzing alternatives for measuring backorder time and to evaluate LRT from a customer’s viewpoint versus a provider’s viewpoint.
Discussing how to handle new LMARS records resulting from BRAC-directed transfer of retail supply to DLA at maintenance depots.
Current Metric Performance
There were no negative trends or anomalies in this performance period. 7

8. TDD Compliance Status of SCMG Actions Definition in Policy
The concept that, within a specified degree of probability, the logistics system is capable of delivering required materiel to the customer within a given period of time. As a metric, it measures the count and percentage of shipments that meet the time definite delivery (TDD) standards for a given combatant command and transportation mode. For this metric, backorder time is excluded.
Supply Chain Attribute
Reliability: The DoD TDD standards provide delivery performance target by combatant command, region within COCOM and transportation mode as dictated by the customer’s priority.
Business Value
This metrics quantifies the reliability of the DoD supply chain in meeting negotiated times when responding to customer requisitions.
Status of SCMG Actions
Completed
Pending
Working
Future
Definition in Policy
To be documented in emerging DoD M
Business Rules
U.S. TRANSCOM rules
Data Source
U. S. TRANSCOM Strategic Distribution Database
OSD Data Requirement
Monthly submission of DPO JDDE Metric Executive Dashboard statistics
Goals or Objectives
85% of deliveries meet TDD standard
Display
DPO JDDE Metric Executive Dashboard
Challenges and Way Ahead (U.S. TRANSCOM)
Velocity-focused metric…must be balanced against other efficiency metrics
Efficiency improvements may reduce the velocity causing TDD compliance decrease
Future initiatives must be analyzed as they may alter future TDD Standards or compliance goals.
Clarified definition to note that backorder time is not included.
Business rules were provided to SCMG.
We continue to track this metric but note that it must be compared to other metrics to get the big picture.
Still below goal.
CONUS Mil Air – Afghanistan, Kuwait and Kyrgyzstan are struggling; hurricane Sandy affected perfomance on East Coast.
Hurricane Sandy affected performance
Current Metric Performance
Current global performance is below goal.

9. Customer Wait Time Organizational Maintenance (CWTOM)
Definition
A measurement of the total elapsed time between submission of a customer order from organizational maintenance and receipt of that order by organizational maintenance.
Supply Chain Attribute
Responsiveness: Timely receipt of replacement parts by organizational maintenance is key to reducing the time to replace failed parts that are causing a not-mission-capable condition for weapon systems.
Business Value
Customer wait time for organizational maintenance (CWTOM):
indicates how responsive the DoD supply chain is from an end user’s perspective
links supply chain performance to the operational availability of weapon systems as the mean logistics delay time (MLDT) factor
Status of SCMG Actions
Completed
Pending
Working
Future
Definition in Policy
Definitions for CWTOM , CWT for performance budget reporting, and CWT for depot maintenance approved for insertion in draft DoD M.
Business Rules
Excludes the 1% of the observations that represent the longest fulfillment times, which may be attributable to data errors and/or extraordinary circumstances.
Data Source
All Military Services have established data sources except Marine Corps.
OSD Data Requirement
Military Services submit CWTOM records to SCI on a monthly basis and will discontinue submission of aggregate data to DLA Transaction Services for DD2829 report.
Goals or Objectives
FY2013 performance goals are: 15 days for Army and Navy, and 7.5 days for Air Force.
Display
In addition to current display capability, the Supply Chain Metrics Center is being changed to reflect military service year-to-date performance against goals as well as monthly performance. Additional recommendation made by Components.
CIMIP
Navy Nov is 17.5 days. Highest its been that we have on record ( since FY2004). Aviation count decreased and
Orient Slide…year to date average. All within goal for FY12
Received initial input from USMC – processing data to determine if data captures CWT for OM.
Metrics Center will show both year to date performance as well as monthly performance…
Challenges and Way Ahead
Complete Marine effort to provide an accurate and complete process for collecting its CWT data.
Current Metric Performance
Air Force is performing within their goal, while the Army and Navy are above their goal.

10. Inventory in Pipeline Overview
DEFINITION
Measures the average value of inventory that has been shipped but not yet received by the customer
DEFINITION SOURCE
SNO Working Definition
SUPPLY CHAIN ATTRIBUTE
Investment Cost: The amount of supply chain resources required to deliver a specific performance outcome
BUSINESS VALUE
Average Inventory in Pipeline:
Allows SNO to estimate a monetary value to apply to LRT measurements
DATA SOURCE
LMARS
BUSINESS RULES (DRAFT)
Inventory in Pipeline is calculated on a quarterly basis, using data from LMARS. The monthly reported value of items shipped (filtered by SOS, customer, Class IX, and IPG) is divided by 90 to get a daily average value of items shipped, and then multiplied by the average quarterly LRT.
DATA REPORTING ORGANIZATION
Logistics Metrics Analysis Reporting System (LMARS)
LEVEL OF DETAIL
Data filtered to include only Class IX, DLA sourced goods, excluding DVDs. LRT numbers are reported by CONUS/OCONUS and by Service.
ITEM POPULATION
LRT and inventory value numbers are reported by CONUS/OCONUS and by Service.
CALCULATION
Monthly reported value of items shipped is divided by 90, then multiplied by the average LRT for the respective month
REVIEW PERIOD
October 2009-present
BASELINE
FY10
Challenges
None

11. Metrics Center Upgrade
UPGRADING CENTER
A unified platform for:
Enhanced metric reporting
Greater spreadsheet integration
Advanced and flexible data analysis
Improved information displays & data visualization
Streamlined user interface
Simplified customization
Reduced update cycle

12. Way Ahead
Update POA&M for responsiveness and reliability metrics as LMARS is enhanced with pipeline measurement improvements:
Expand or complete metrics
Update procedures for collecting and reporting measurements
Establish or revisit goals for metrics