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Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Commercial Derivative
Sustainment Overview
274374.pptx | 1
Sergio Parisi
KC-767 Italy Tanker Program – Site Manager
28 May 2015
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Boeing Tanker/Transport History
60+ years of successful Tanker/Transport Sustainment
KC-135, K/DC-10 and 707 Tankers
C-17 Globemaster Integrated Sustainment Program
KC-767 Tanker (Japan and Italy)
KC-46A Tanker and C-40A (emerging products)
Commercial derivatives offer distinct customer advantages
Maximizes One Boeing military and commercial sustainment strengths
Leverage existing Commercial infrastructure
– Publications, training, commercial parts pool, etc.
– Low utilization maintenance program available if less than 1,200 annual flight hours
Yields significantly reduced initial customer ownership cost
Partnering with Boeing optimizes sustainment approach
274374.pptx | 2
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Spectrum of SupportTraditional Organic Support
Performance Based Support
Customer / Industry Share RiskCustomer Holds All Risk
Traditional Support Contractor Supply Role PBL at Subsystem Level PBL at System Level
Support concept can be tailored to specific customer needs
USAF C-17
• Customer responsible for
system performance
• Customer procures desired
hardware and services
• Customer manages
configuration
• Customer performs O/I/D-
level maintenance
• Minimal contractor
performance metrics
Japan Tanker
Korea AEWC
• Contractor responsible for
partial Supply Chain mgmt
• Customer has primary
Configuration Mgmt. role
• Contractor warehouses
customer-owned spares
• Contractor supplies to
customer O/I/D-level
maintenance
• Contractor supplies metrics
USN P-8A
USAF Tanker
Turkey AEWC
• Contractor responsible for
full Supply performance
• Contractor has primary
Configuration Mgmt role
• Long-term performance
based contract
• Contractor and customer-
owned spares
• Contractor responsible for
limited I/D-level maint.
Italy Tanker
CoA AEWC
• Contractor responsible for
Weapons Level sustainment
• Customer defined system level
performance metrics
• Long-term contract
• Industry owned spares and
support equipment
• Contractor provides virtually all
O/I/D-level maintenance
• Customer responsible for
deployed maintenance
274374.pptx | 3
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Performance Based Logistics
Long-term contractual agreement incentivizes investment
Clear outcome-related performance metrics
Contract incentives linked to performance metrics
Strong partnership between government and industry
Partnering Optimizes Readiness at Best Value
274374.pptx | 4
PBL partnership creates shared destiny to enable success
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Results of a Successful PBL
Reduced total ownership cost
Efficiency and readiness improvements
PBL reduces customer ownership cost while increasing fleet readiness
274374.pptx | 5
It’s a perfect solution in a more
for less operational environment
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
U.S. Air Force C-17 GISP PBL Program
Sustained average readiness rate of 85 percent for the past 10 years
Most dependable airlift aircraft with availability that is 10 percent above overall airlift fleet average
274374.pptx | 6
75
80
85
90
95
100
05 06 07 08 09 1070
04
$~1.1B Cost
Reduction
DP
FH
% (
CY
201
0$)
C-17 Dollar Per Flight Hour
Cost Reduction (%) *
Fiscal Year* Savings validated by U.S. Government customer
C-17 GISP reduced cost by 26 percent, resulting in savings of $1.1 billion
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Commercial Derivative PBL Case StudyItaly KC-767A Tanker Program
A PBL partnership providing unprecedented readiness rates
274374.pptx | 7
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
All Cargo All PassengerConvertible Combi
BOEING PROPRIETARY – Distribution Limited to Boeing Personnel
19 cargo pallets
BCA 767-200ER
200 passengers10 cargo pallets/100 passengers
Italy KC-767A Tanker Configurations
Copyright © 2014 Boeing. All rights reserved. 274374.pptx | 8
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Crew Rest Facilities
Remote Air
Refueling Operator
(RARO II) Station
Advanced Air
Refueling Boom
Cargo Door and
FloorClassic
Cockpit
Common Tanker Transport Configuration
767-200ER
BOEING PROPRIETARY
Convertible
Freighter
274374.pptx | 9
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Unique Italy KC-767A Tanker Transport Configuration
Wing Air
Refueling Pods
Centerline Hose
Drum Unit
Link 16Air Refueling
ReceptacleIncludes common
options plus additional
modifications shown
Certified
“Combi”
274374.pptx | 10
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Boeing is proud to support our amazing ItAF customer
Italy KC-767A PBL
PBL Structure/Approach Four aircraft fleet MOB: Pratica di Mare FFP “Award Fee” Contract with Italy MoD 5-year base PoP (through 2016) Boeing-owned Mission Spares Green hardware: LHT Responsibilities: Full PBL Line/Heavy maintenance (IG) Local supply management Engineering support Publication revisions Training
ItAF Customer Results Strong partnering with ItAF 98.9 percent cumulative mission
success rate Offloaded 22.6M+ pounds of fuel Achieved 10K FHs in 3.5 years Seamlessly surged FHs by 28 percent Executing optimized scheduled
maintenance program at PdM Includes equivalent C1-C4 checks Key for tailored Prime Availability metric
Reduced cost of ownership Boeing-owned Spares/SE Contractor maintenance staff FAA compliant sustainment practices
Overview and Results
274374.pptx | 11
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Italy KC-767A Tanker PBL Key Enabler
KC-767A is a Commercial Derivative Aircraft
Low utilization maintenance program at maximum 1,200 AFH
Commercial counterpart MPD designed for 3,000+ AFH
Phased maintenance approach
Blends A & Heavy 1C - 4C checks into phase packages
Eliminates need for expensive off-station depot visits
Work force stabilization mixes line and depot personnel
Improves aircraft availability
Commonly used by Small Commercial Operators
Reduces total cost of ownership
Extended LUMP basic intervals
A-Check equivalents from 90 to 120 days
C-Check equivalents from 24 to 32 months
FAA approved the new maintenance plan
Leveraging Commercial Maintenance Program
274374.pptx | 12
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Block vs. Phased Maintenance Savings
Results Summary:
20 percent decrease in man-hours due to LUMP with interval increase65 percent decrease in depot hours means high hourly rate reduction28 percent increase in O-level hours shifts costs to lower cost O-Level Labor rate
D-Level
O-Level
274374.pptx | 13
Lower cost of ownership and improved aircraft availability
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
From Theory to Field
Boeing Fleet Support Center at Pratica di Mare, Italy
Performs line maintenance and servicing
O-level and D-level maintenance
Aircraft configuration conversions
SB & AD incorporation
Goal: Balance workload to avoid peaks and extra costs
274374.pptx | 14
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Ultimate Test: 2014 Phase 32 Execution
Boeing team faced with AC 226 Phase 32 (4C) Check
Evaluated off-station options; settled on execution at PdM
Established 60-day inspection cycle to leverage existing staff
Contracted for surge and specialty support
Extensive planning performed; required material pre-staged
Exemplary Boeing/IG team performance
Executed 703 task cards encompassing ~6,000 inspection hours
Completed inspection efforts in exactly 60 days
Executed 150 pick-up tasks and returned FMC Tanker to ItAF
Facilitated highly active ItAF mission schedule w/remaining three jets
Unprecedented execution of 4C-equivalent check at MOB location
274374.pptx | 15
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Commercial Derivative Sustainment Summary
274374.pptx | 16
Italy KC-767A A/C Operating Summary
Sustained Excellent Performance
Supporting Customer Operations!!
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Commercial Derivative Sustainment Summary
274374.pptx | 17
Italy KC-767A Current Performance
Overall Consistent, World Class Performance at High Activity Levels
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
PBL Conclusions
Clear performance objectives and measurements
Reduced total ownership cost
Efficiency and readiness improvements
Financial incentives clearly linked to performance
Contractor assumes increased risk
Multi-year commitment for platform/system readiness
Contract that incentivizes industry investment
Business case transparency … best value to Government
Partnership and trust
Optimize existing fleet by minimizing operational cost (More for Less)
Model expandable to other platforms when initial investment is made
Characteristics of Successful PBL Programs
PBL buys affordable readiness – not just individual parts or services
274374.pptx | 18
Copyright © 2014 Boeing. All rights reserved.
Defense, Space & Security | Global Services and Support (GS&S)
Questions?
Copyright © 2014 Boeing. All rights reserved. 274374.pptx | 19