1. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 1 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force AF Logistics Transformation Mark D. Johnson Deputy Director of Maintenance AF/A4M

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 2 Overview Integrated Life Cycle Management (ILCM) Global Logistics Support Center (GLSC) Repair Network Transformation (RNT) Wing Reorganization AFSO 21 Way Forward

3. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 3 Integrated Life Cycle Management (ILCM) Enterprise 6 Jun 07 SECAF letter Codifying Roles ILCM Seamless Governance, Transparency, Integration ILCM Executive Forum 4 Star Membership Across Air Force Acquisition and Sustainment Communities Visibility of Acquisition and Sustainment Decisions Eliminates Stove-piped forums

4. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 4 Integrated Life Cycle Management (ILCM) Enterprise ILCM Oversight (Enterprise View) Strategic Source Of Repair (SSOR) Strategic Core Determinations Depot Source of Repair Decisions (DSOR) 50/50 Core Developing Enterprise Product Support Decision Tool Appropriate Blend of public-private product support competencies

5. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 5 LEAN PROCESSESLEAN PROCESSES Synchronized to Match AEF Battle Rhythm AF Future Logistics Concept

6. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 6 Re-distribution, Reallocation, Contingency Ops, Status Tracking, Total Asset Visibility C2 Groups Global (C2) AF GLSC CIRF Repair Depot Repair CLS Repair Managing the Repair Network Enterprise Planning Demand, Capacity and Supply Planning, Repair Network, Budgeting, Supplier Management Planning Groups Base Repair Enterprise Information Management Directorate (ISR) Policy, CAM, Metrics, Analysis, IT SuppliersCustomers A3 Input COCOM Requirements MAJCOM Requirements Market Research Supply Chain Operations Center GLSC Management A network of capabilities End-to-End Supply Chain Management Global Logistics Support Center (GLSC)

7. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 7 The Way Maintenance Structure Has Been Since 1953 ORGANIZATIONAL LEVEL DEPOT LEVEL INTERMEDIATE LEVEL

8. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 8 Characteristics Of Future Maintenance State Expeditionary LEAN Minimal off-a/c maintenance footprint Rationalized Capacity Dynamically Adjusted to Changing Demand LEAN Standardized Processes Reliability Focus Centralized REPAIR NETWORK MISSION GENERATION

9. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 9 Historically Distanced Flight-line from Enterprise Level Management MAJCOMS I-Level Flight Line Enterprise Level Management Fly – Fight – Win

10. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 10 MAJCOMS I-Level Flight Line Enterprise Level Management Repair Network Enterprise Level Management Historically Distanced Flight-line from Enterprise Level Management Fly – Fight – Win

11. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 11 Repair Network Enterprise Level Management Flight Line There is a more efficient way

12. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 12 Future State Aligned With AF Key Processes Governing Plan/Execute Strategic Initiatives Plan/Execute Strategic Initiatives Manage Programs and Processes Core Enabling Deploy Caring for People Provide IT Support Provide Infrastructure Manage Financial Resources Develop Warfighters MISSION GENERATION REPAIR NETWORK Organized to Support AF Key Processes Conduct Air, Space, Cyber Ops Develop & Sustain Warfighting Systems

13. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 13 Repair Network Vision An Enterprise Level Network of Repair Centers Rationalized Capacity Standardized work Lower total system costs Managed, Controlled and Harnessed for Enterprise Level Priorities

14. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 14 Repair Network Transformation Initiative Repair Network Configuration (RNC) Set the initial size, layout and capabilities of the network Determine what maintenance is “network” and what becomes Mission Generation Ends when Network is FOC Repair Network Management (RNM) Develop the processes for management and control Assume control of the network created by RNC Establish an enduring set of processes to manage and optimize network Fly – Fight – Win

15. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 15 Characteristics Of Future Maintenance State Expeditionary LEAN Minimal off-a/c maintenance footprint Rationalized Capacity Dynamically Adjusted to Changing Demand LEAN Standardized Processes Reliability Focus Centralized REPAIR NETWORK MISSION GENERATION

16. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 16 CSAF Vision—Wing Reorganization Organize, train, and equip Airmen to deliver decisive global effects Structure AF units by mission rather than function Establish consistent organizational structure at home/deployed--on day one Provide leadership opportunities for officers who command Expeditionary Operations Streamline Mission Generation and its Command Chain Align traditional logistics functions under one commander Create scalable & modular packages easily presentable to combatant commanders Position the logistics community for future transformation

17. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 17 Wing Structure Logistics Readiness Squadron Logistics Readiness Squadron Contracting Squadron Contracting Squadron Wing Commander Wing Commander Vice Wing CC Wing Staff Vice Wing CC Wing Staff Operations Group Materiel Group Mission Support Group Operations Squadron(s) Operations Squadron(s) Operations Support Squadron Operations Support Squadron Aircraft Maintenance Squadron(s) Aircraft Maintenance Squadron(s) Maintenance Squadron(s) Maintenance Squadron(s) Civil Engineer Squadron Civil Engineer Squadron Communications Squadron Communications Squadron Force Support Squadron Force Support Squadron Security Forces Squadron Security Forces Squadron Aerial Port Squadron Aerial Port Squadron Medical Group Dental Squadron Dental Squadron Medical Support Squadron Medical Support Squadron Medical Operations Squadron Medical Operations Squadron Aerospace Medicine Squadron Aerospace Medicine Squadron Logistics Readiness Squadron Aerial Port Squadron (Where Authorized) Materiel Support Squadron (from Maintenance Operations Sq Munitions Squadron (Where Authorized) Munitions Squadron (Where Authorized) Fighter, Bomber & Rescue Wings Only Wings Only

18. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 18 AFSO21 Program Objectives  Increase Productivity of our most valued asset – People  Significant increase critical equipment availability rates  Improve response time and agility  Sustain safe and reliable operations  Improve energy efficiency Establish a Resilient CPI Foundation AFSO21 is about combat capability – Relentlessly Strengthening the Air Force

19. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 19 Continuous Process Improvement Air Logistics Center Successes Hill AFB: Structural Repair Squadron A-10 wing, F-16 wing, F-16 stabilizer improvements Average flow day reduction of 39% Over $2M cost avoidance for rework and overtime On-time delivery increased to 100% (A-10) and 98% (F-16) Robins AFB: F-15 Wing Shop Reduced flow days from 52 to 35 On-time delivery remains 100% (since 2003) Relocated 107 employees to other workloads Shingo Prize DOD Bronze- Level Winner Shingo Prize DOD Bronze- Level Winner Shingo Prize DOD Silver- Level Winner Shingo Prize DOD Silver- Level Winner Tinker AFB: B-1 Critical Chain Project Management (CCPM) Implemented to reduce flow days and improve B-1 aircraft availability PDM flow days for the B-1 being reduced by 15 to 18% (30 days) Increased greater aircraft availability to the ACC B-1 warfighter

20. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 20 Continuous Process Improvement Field Level Successes McChord AFB (Tools on the Aircraft Line – TOTAL) Increases the velocity of generating aircraft Interactive tool trailer revolutionizes tool checkout (drastically reduces time) Trailer holds nearly 80 percent of all the tools needed for maintenance tasks Eliminates time checking out tools Little Rock Air Force Base (Engine Regional Repair Center - ERRC) Standardizes and integrates Engine Regional Repair Center (ERRC), Retained Task Center (RTC), and propeller repair into one operation Cut production time from average of 17 days down to consistent 12-day output T56 builds are to highest standards in the AF; validated by Standard Aero, ERRC Average Time on Wing (ATOW) averaged 2800 flt hours vs. 2000 flt hrs at other facilities Dover AFB (Regionalized C-5 ISO Inspections) Availability days of C-5s throughout the Air Force is increased by 900 a year, or approximately 2.5 more C-5s available to carry cargo every day Reduced ISO inspection process from approximately 38 days to 14

21. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 3/20/2007 21 Way Forward Enterprise Focus: Acquisition and Sustainment Decisions Supply Chain Management Repair Network Mission Generation Continuous Process Improvement is the Enabler