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NAVSEA TMDE PROGRAMPOM 06 BRIEF

Ed Chergoski

NAVSEA 04L52

04 November 2003

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NAVSEA TMDE PROGRAM

NSWC Seal BeachEngineering and

Technical SpecificationsProcurement

Training Liaison Program Office Support

NAVSEA 04L52PROGRAM MANAGEMENT

NSWC Earle

SPETERL to COSAL conversion

Allowancing &Configuration Mgt

NSWC Corona

Calibration Standards Allowancing and

ProcurementICP Development

NAVSEA Budget Specialist Gail Miller

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NAVSEA TMDE PROGRAM

Team ConstructIHD Det Earle IHD Det Seal Beach NSWC CoronaJohn Lupi (90%) Steve Makieil (100%) Len Rice (9%)

Joe Teti (100%) Kathy Saunders (80%) Kathy Ingenhousz (94%)

Rich Devenero (100%) Mark McHugh (100%)

Ernie Davison (100%) Steve Mosczynski (100%)

Donna Morse (100%) Greg Hogan (100%)

Iksang Ro (5%)

Program SupportDennis Kelly (100%)

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NAVSEA TMDE PROGRAM

Annual Maintenance Expenditure on GPETE

N76$22.64M

55%

N75$6.76M16%

N78$5.87M14%

N77$2.35M

6%

N06$2.42M

6%

N96$21K.05%

N04$391K1%

N42$742K2%

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NAVSEA TMDE PROGRAM

Expenditure Breakdown

$24,487,092.38

$3,671,196.36

$13,041,711.25

Calibration

Repair

BER

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NAVSEA TMDE PROGRAM

Priority Functional Group Annual Maintenance Average Cost per Unit

1 Signal Generator $5,382,838.49 $5,289.17

2 DMM $4,301,951.42 $503.92

3 Baseband Generator $3,722,906.30 $1,032.23

4 Synchro Indicator $3,520,850.94 $1,337.19

5 Spectrum Analyzer $2,197,164.55 $2,802.43

6 Calibrator $2,111,725.80 $4,925.84

7 Logic Analyzer $1,952,713.16 $3,023.59

8 Oscilloscopes $1,801,961.62 $962.43

9 Voltmeter $1,498,560.14 $1,293.58

10 Frequency $1,229,301.89 $918.69

11 LAN/WAN $1,178,429.61 $3,778.66

This denotes the total annual costs by functional group including calibration and repair, and then, for those that are bolded, reprioritized based on Fleet requests that the TMDE program resolve issues with problematic or obsolete groups of equipment

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NAVSEA TMDE PROGRAM

Mechanics of analysis

• POM construct was based on individual GPETE model reliability and maintenance cost, ‘Cost of Ownership’.

• MOCC data from 1998 through mid-2003 was used to derive 3 values for each individual model number:

• Repair (Failure Rate): likelihood that a model would fail calibration or be submitted for repair (expressed as percentile)

• Calibration: average hours expended to calibrate a given model

• Beyond Economical Repair (BER): model submitted for calibration fails (is rejected), is submitted for repair, and shows no completed repair, subsequent calibration, or recall date (expressed as count). Cost is projected as outright procurement cost for standard model in the SCAT.

• Based on these 3 values, the annualized costs of maintaining the Navy inventory, as reported by TEMIS, was calculated.

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NAVSEA TMDE PROGRAM

Assumptions and influencing factors

• MOCC data integrity, while improving, varies greatly between reporting years.

• MOCC data reflects multiple entries for individual GPETE items

• 197,866 GPETE line items reported by MOCC

• 95,882 GPETE line items reported by TEMIS (derived from SCLSIS)

• Hinging Fleet expenditures on model vice SCAT will identify the ‘bad actors’ in Navy inventory

• Ignoring platform application will provide the best averaged sample of actual equipment performance/reliability

• Inadequate reporting of repair part expenditures justifies excluding repair part costs from repair calculations.

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NAVSEA TMDE PROGRAM

Mathematics• Calibration Costs

• Repair Costs

• BER Costs

(time) Cal Avg85$Interval Cal

12Inventory TEMIS

(time)Repair Average$140(%) Rate FailureInventory TEMIS

Price Model StandardAllowanceInventory TEMIS

Count BER

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5 Year Procurement PlanThree key requirement areas:

1. Outfitting• Based on Deploying Battle Groups

2. Obsolete Equipment 3. Standardization

– In addition to engineering considerations we consider the following when performing standardization:- Models with short calibration intervals - Models with low inventory quantities - SCAT Code Consolidation

- RM&A

NAVSEA TMDE PROGRAM

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NAVSEA TMDE PROGRAM

5 YEAR BUY PLAN CONTROL FIGURESFY04 FY05 FY06 FY07 FY08 FY09

DMM $1,250,000.00 $1,250,000.00 $1,250,000.00 $1,000,000 $1,000,000 $1,000,000OSCOPEs $1,500,000 $1,500,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000MAINTENANCE $6,240,000 $4,070,000.00 $2,970,000.00 $3,350,000.00 $3,480,000.00 $3,610,000.00

$8,990,000 $6,820,000 $6,920,000 $7,050,000 $7,180,000 $7,310,000

GRAND TOTAL

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NAVSEA TMDE PROGRAM

This curve (shown below) indicates that the average maintenance costs for most test equipment begins to rise sharply at an economic age of 14.7 years. Within most GPETE functional groups, this is the point at which purchase of new equipment to replace obsolete inventory becomes fiscally imperative. Based on historical control numbers however, the current GPETE inventory of over 127,000 line items worth roughly $340M can only be completely replaced every 42.5 years.

Average Repairs per Annum

0

0.2

0.4

0.6

0.8

1

1 3 5 7 9 11 13 15 17 19

Age of GPETE

Number of timesa GPETE modelis submitted forrepair per year

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NAVSEA TMDE PROGRAMFUNDING PROFILE

CONTROLS:

SPONSOR FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

N76 OPN 327 2,442 3,268 2,970 2,800 2,851 2,905 2,956

N77 OPN 1,109 1,085 1,305 1,338 1,302 1,330 1,3511,376

N78 OPN 1,791 1,752 4,268 2,086 2,075 2,112 2,1522,191

N096 OPN 443 480 573 536 553 563 574 585

N091 OPN 151 147 174 167 171 175 178 182

N43 OPN 1,594 1,552 1,650 1,693 1,740 1,772 1,806 1,840

N43 O&M,N 419 436 458 456 463 477 492 504

N6 OPN 817 795 991 930 1,241 1,266 1,286 1,311

SCN *524 *730 * * * * * *

* SCN ANNUAL FUNDING AMOUNT AND SOURCE DETERMINED BY SPECIFIC PLATFORMS IN THE SCN OUTFITTING PHASE

NOTE: THE ABOVE FUNDING PAYS FOR GPETE AND CALIBRATION STANDARDS EQUIPMENT AND PROGRAM LABOR COSTS

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NAVSEA TMDE PROGRAM

• FY($M) 04 05 06 07 08 09 10 Tot

• Emergent Technology 0.7 0.7 1.6 1.6 1.6 4.8

• Standard/Modern 5.0 5.0 12.8 12.8 12.9 12.9 12.8 64.7

• Maintenance Initiatives 0.4 0.4 1.9 1.9 1.9 1.9 1.8 9.4

• Budget Totals for all Initiatives 16.4 16.4 16.4 14.8 14.6 79.1

Projected Budget Requests

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NAVSEA TMDE PROGRAM

FY($M) 06 07 08 09 10 11 12 13 14 TotStandardization Initiatives:Scope Cost Avoidance 5.4 5.7 6.1 6.3 6.3 1.4 1.4 1.4 1.4 35.4DMM Cost Avoidance 3.1 3.2 3.3 3.4 3.5 1.6 1.6 1.6 1.6 22.9BGen Cost Avoidance 3.0 3.1 3.3 3.5 3.6 1.3 1.3 1.3 1.3 21.7SGen Cost Avoidance 9.8 9.9 10.4 10.9 11.3 2.8 2.8 2.8 2.8 63.5Freq Ctr/Mtr Avoidance 1.6 1.8 2.1 2.4 2.7 1.3 1.2 1.3 1.3 15.7

Maintenance Initiatives:Antenna Tester 0.05 0.6 0.7 0.7 0.8 0.8 0.3 0.3 0.3 4.6Synchro Indicator 0.3 0.3 0.3 0.3 0.3 1.5Phase Angle Voltmeter 1.1 1.1 1.1 1.2 1.2 0.1 0.1 0.1 0.1 6.1Comm. Analyzer 0.26 2.6 2.7 2.7 2.8 2.6 0.3 0.3 0.3 14.6

Costs Savings Totals 24.6 28.3 30.0 31.4 32.5 11.9 9.0 9.1 9.1 185.9

Projected Cost Avoidance by test equipment family

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NAVSEA TMDE PROGRAM

Standardization Initiative To implement Fleet wide GPETE modernization by

using standardization within families of test equipment that perform similar basic functions.

Procurements over time has resulted in a variety of models that perform similar functions. This has created a huge footprint for logistics support. We have broken down our approximate 900 individual equipment types into functional groups. This provides opportunity to consolidate models as well as defined SCAT codes relative to maintenance. The analysis has been completed for the first two groups, oscilloscopes and digital multimeters.

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NAVSEA TMDE PROGRAM

Standardization Construct• Process Organization

• 77 Measurement Discipline (functional) Groups• Lifecycle Management Plan for Each Group• Long Term Budget Plan

• Technical Evaluation• FY02/03 - Scopes & Meters • Scopes - (12 SCATs to 3, 71 Models to 6)• DMMs - (38 SCATs to 15, 241 Models to 35)

• FY04 - work planned • Function and Signal Generators, Frequency Counters, &

Megohmmeters

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NAVSEA TMDE PROGRAM

Class Standard Allowancing InitiativeThis effort incorporates a methodology by which test equipment requirements across particular ship class or like operational shore activities are optimized to incorporate cost-of-ownership concepts by overall inventory standardization. This process provides an efficient and effective means for inventory control, equipment modernization and configuration management

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NAVSEA TMDE PROGRAMclass allowancing sample – partial MCM construct

SCAT CODE

S/C QTY QTY QTY QTY QTY QTY QTY QTY QTY

4007 1 1 1 1 1 1 1 1 1

4032 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0

4042 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0

4046 1 1 1 1 1 1 1 1 1

4068 1 1 1 1 1 1 1 1 1

4069 1 1 1 1 1 1 1 1 1

4076 1 1 1 1 1 1 1 1 1

4114 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0

4115 2 2 2 2 2 2 2 2 2

4117 1 1 1 1 1 1 1 1 1

4173 2 2 2 2 2 2 2 2 2

4200 1 1 1 1 1 1 1 1 1

4205 1 1 1 1 1 1 1 1 1

4206 2 2 2 2 2 2 2 2 2

4208 0 4209 0 4209 0 4209 0 4209 0 4209 0 4209 0 4209 0 4209 0

4209 1 1 1 1 1 1 1 1 1

4211 1 1 1 1 1 1 1 1 1

4212 2 2 2 2 2 2 2 2 2

4214 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0

4228 1 1 1 1 1 1 1 1 1

4236 2 2 2 2 2 2 2 2 2

4237 3 3 3 3 3 3 3 3 3

4242 1 1 1 1 1 1 1 1 1

4245 11 11 11 11 11 11 11 11 11

4261 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0 RLP 0

MCM 9MCM 5 MCM 6 MCM 7 MCM 8MCM 1 MCM 2 MCM 3 MCM 4

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NAVSEA TMDE PROGRAM

Calibration Standards Modernization– To define and standardize the NAVSEA

process for determining laboratory standards allowances and the associated procurement policy

• Establishes the roles and responsibilities assigned by NAVSEA to support TMDE calibration functions.

• Re-initiates Laboratory Allowance Reviews• Performs Production workload analysis • Identifies candidates for modernization

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NAVSEA TMDE PROGRAM

• Major/Management Issues– Lack of OM & N Funding adversely impacts on

available labor to perform engineering functions

– Lack of OPN Funding adversely impacts on program’s ability to match execution to Fleet requirements