Csc LMP U.S. Army Project

Army Material Command,

Logistics Modernization Program

Anthony Zelinski, US Army Logistics Modernization Program

Horace Dick, CSCUS Army Logistics Modernization Program

AgendaAgenda

� LMP Background� Enterprise Vision� Organizational Alignment� Challenges�Working the Solution� Transition

SAPPHIRE / OR3824 Page 2

Why LMP?Why LMP?

� Focus business systems modernization on supporting the warfighter

• Improve business processes • Decrease operational cost and cycle times• Improve the accuracy and timeliness of information

� Remaining on legacy is not a viable option• Cost to support legacy systems are escalating• Legacy systems are rapidly aging

� To reduce redundant and stovepipe IT investments• Commodity Command Standard System (CCSS)• Standard Depot System (SDS)• Bridges and uniques

� Legacy systems cannot meet requirements of:• Federal Financial Improvement Act (FFMIA)• Business Enterprise Architecture (BEA)• Standard Financial Information System (SFIS)• Radio Frequency Identification (RFID) / Unique Identification

(UID)• Net-centricity

Key component of

the Army Logistics IT

vision


Mission: Support Warfighter Readiness

• Common, accurate, real-time operating view

• Rapid decision making

• Financial integrity• Integrated planning and execution• Precise forecasting

• Focus on core business functions

• Single version of truth

Results: Improved Warfighter ReadinessRight Material, Right Place, Right Quantity, at a Moment’s Not

• Common, accurate, real-time operating view

• Rapid decision making

• Financial integrity• Integrated planning and execution• Precise forecasting

• Focus on core business functions

• Single version of truth

EffectiveConsumable andReparable Orders

Cost-Effective and Efficient IT

Service Reliably PredictMaterial Needs

Continuous Improvement

Single Versionof Truth

Logistics Modernization

Program

LMP Through AMC General’s (CEO) Lens

LMP Through the GeneralLMP Through the General’’s Lenss Lens


AMC Scope and ComplexityAMC Scope and Complexity

50,000 Vendors 1,000,000CustomersGoods/Services

6,000,000 Items

149 Fixed Locations>1,000 Dynamic Locations

59 CONUS38 Countries

49,000 Civilians1,500 Military

Installation and Direct Support

• OEMs

• DLA

• Services

• Army Depots

• Plants

• Arsenals

• Air Force• Army• DLA

• Marines• Navy• Other Govt.

Unit Support (Warfighters)

Suppliers AMC OperationsInventory and Repair Depot

Customers andEnd Consumers

General Electric• Repairable product supply chain• 100 countries• Cost of goods sold—$38B annually

$40BWal-Mart

• Consumable product supply chain• 1,300 stores in nine countries• 100,000 items

Analogous to a large multinational conglomerate, multiple businesses (Commands), diverse product portfolios, multiple complex supply chains —

with added challenge of customer (Warfighter) readiness for survival


Acquisition and Distribution

The LMP SolutionThe LMP Solution

� Collaboration• The LMP Team was built from

experts from across CSC, SAP, dozens of external partners and subject matter experts from across AMC

• Full functionality implementation approach

� Unprecedented ERP • Merged Solution

� Core R/3, Public Sector Solution and the Aerospace and Defense Solution

• New Dimensions Products.� Advanced Planner Optimizer

(APO)� Business Warehouse (BW)� Strategic Enterprise Management

(SEM)� Single Version of the Truth, End to

End Integration

• Army Search Matrix and Penetration Logic

• Real-time Global Available-to-Promise

• Back order Processing

• MILSTRIP sales order processing

Industrial Base Operations

• Acquisition• Manufacturing and Remanufacturing

Resource Requirements Planning• National Maintenance Management• Base Operations and Plant Maintenance• Quality Management• Human Resources

• Inventory Management

• Warehouse Management

• Single Stock Fund• Environment,

Health, and Safety

• Distribution Planning• Long Term and Material

Requirements Planning• Project Systems and

Budget Planning• Demand Planning

Logistics Chain Planning

Order Management Buy Distribution

Make

Fix

Budget and Finance• Cost Accounting• Budget Formulation

Product Lifecycle Management• Ammunition Support• Bills of Material

• General Accounting DFAS and Funds Management

• Cost Management and Real Estate (Facilities) Management

• Provisioning• Cataloging

• Packaging and Freight• Maintenance Engineering

Data andReporting


Financial (FI)• General ledger• Special purpose ledger• Accounts payable• Accounts receivable• Report generator• Fund ManagementMaterials Management (MM)

• Purchasing• Inventory management• Invoice verification• Warehouse managementProduction Planning (PP)• Bill of Materials (BOM)• Work centers and routings• Master production scheduling• Materials requirements planning

(MRP)• Production Orders

Sales and Distribution (SD)• Sales order processing• Pricing• Shipping• Billing• Credit

Project Systems (PS)• WBS Elements• Network Orders

Controlling (CO)• Cost Element Accounting• Cost Center Accounting• Profit Center Accounting• Internal Orders• Profitability Analysis

Workflow (WF)Industry Solution (IS)• Public Services• Aerospace & Defense• Merged Solution

Quality Management (QM)Plant Maintenance (PM/CS)• WS Repair Project Planning• WS Repair & Overhaul Project

Execution

Human Resources (HR)• CATS• Personnel Administration

BI

R/34.6CR/34.6C

FIFICOCO

PSPSWFWF

ISIS

MMMM

HRHR

SDSD

PPPP

QMQMPMPM

AMAM

EP

SCMSEM

Product Lifecycle Management(PLM)• Product Data Management• EH&S

PLMPLM

SAPSAP®® Solution ComponentsSolution Components

Copyright © COMPUTER SCIENCES CORPORATION, 2005-2006.SAPPHIRE / OR3824 Page 7

LMP Enterprise IntegrationLMP Enterprise Integration

Army enterprise integration achieved with the proper solution of architecture, functionality and technology

TECHNOLOGY� Robust scalable architecture, 24x7

reliability.� Thin client technology.� Relational global data structure –

global configuration, with local flexibility.

� Centralized configuration management.

� COTS enterprise application integration.

Technology Advances

USER� Web browser screens.� Single sign-on.� Information readily available.� Real-time information.� Data redundancy standards.� Real-time on-screen reporting. DAASC

INTERIMCCSS

and SDS

DoDSERVICES

•AIR FORCE

•NAVY

•OTHERS

SARSS Gateway

LOGSA

•LIDB

DFAS•ATAAPS

•SOMARDS

•DCPS

AEPS

DCMA

-Reeng

inee

red

DLA

•BSM

•SAMMS

•DSS

•FLIS/CRS

OTHERSOTHERS

•Retail

Finance & Accounting

Inventory Mgmt

Human Resources

Programs & Projects

Planning & Budgeting

Management Information &

Decision Support

Maintenance Mgmt

Supply Chain Mgmt

Customer Mgmt

Facility & Fleet Mgmt

Procurement

AIT

Manufacturing Planning

Warehousing

Property Mgmt

LMP

70+ systems interfacing with LMP

•MOCAS


SAPSAP®® Customer Competency Center CertificationCustomer Competency Center Certification

�Five Major Support areas assessed against SAP’s worldwide competency center database:

• Global Strategy and Service Level Management

• Support Desk Management• Management of SAP Technology• Support Process Management• Software Change Management

� Initial certification achieved in 2005 and re-certification achieved in 2007

Companies establish SAP Competency Centers as a best practice tosupport their SAP business solutions

Companies establish SAP Competency Centers as a best practice tosupport their SAP business solutions


Enterprise VisionEnterprise VisionSingle Army Logistics Enterprise (SALE)Single Army Logistics Enterprise (SALE)

“This plan establishes a foundation for leaders and managers to guide them towards a Single Army Logistics Enterprise. We have a huge challenge, but together we can make it a reality. The Army cannot lose focus on the ultimate Logistics Domain IT objective…SUPPORT THE WARFIGHTER.”

- LTG Ann Dunwoody, Strategic Plan for Army Logistics Domain IT Transformation – August 2007


Providing:• RFID/AIT Capability To Provide Visibility• Providing UID Parts Marking and Readers• Shop Floor Tracking• Enable Technical Data Records Management

Industrial Base Modernization

Providing Capacity & Material Requirements Planning:• Lean Operations• Ability to Re-Plan In Hours vs. Week• Immediate Visibility of Work-In-Progress• Proactive Planning vs. Reactive

Master Production Scheduling

Objective: Robust automation tools to support Army missions and enable the best decision in relation to: Industrial Operations capacity, cost, and schedule management

Part of Army Logistics Modernization Program –Single Army Logistics Enterprise

Phased Approach

Logistics Modernization Program Foundation Providing:

Commodity Commands• Improved Demand and Supply Chain Planning• Financial and Logistic Integration• Common Operating Picture Across Supply Chain• Ability To Share Data With DLA and Industry Base

Industrial Sites• Accurate Financial and Logistical Records• Improved Workloading Forecast• Cost Reduction for materiel used in production

process• Reduced Re-Planning • Improved On-Time Delivery

Enterprise VisionEnterprise Vision


Organizational Alignment Organizational Alignment Maximizing ERP InvestmentMaximizing ERP Investment

ProjectAuthorization& Release

PLANNING

MasterBOMs/Routes Data

MRPRUNS

PlannedProductionOrdersCreated &Scheduled

WorkCentersData

PlannedPurchaseOrdersCreated &Scheduled

Shop FloorExecution(Work Centers)

Material Rcvd& Staged

Labor &ProductionReporting(Type 8s)

PRE-PRODUCTION

Master Scheduling/ Capacity Planning Process

EXECUTION

ProductionPlanners

MaterialExpediters

ProductionOrderClose-out

ProgramClose-out

CLOSE-OUT

FEED BACK to PLANNING DATA• Army• Other Services

PlannedWorkload

Funded/Unfunded

UnplannedWorkload

Customer ORDERS

DEMAND Thru SUPPLYPlan Make/Repair DeliverMake to stock/order

Source(Order New)

Schedule/ProduceM1.1/M2.1/M3.1M1.3/M2.3/M3.4

Plan to Make P1.1/P2.1/P3.1

Release to Delivery M1.6/M2.6/M3.7

MakeRepair

Plan to Make P1.1/P2.1/P3.1 Plan to

SourceP2.1/P2.2P2.3/P2.4

Plan to SourceP2.1/P2.2P2.3/P2.4

Deliver Make/Stock/EngineerD1/D2/D3/D4

Copyright © COMPUTER SCIENCES CORPORATION, 2007.SAPPHIRE / OR3824 Page 12

ChallengesChallenges

MRP / ERP EvolutionMRP / ERP Evolution

ClosedLoopMRP(70’s)

MRPII(80’s)

MRP(Late 60’s)

ERP(90’s)

Source: ERP Making It Happen, Thomas F. Wallace and Michael H. Kremzar



EnthusiastsNaysayers

SilentMajority

Before ERP EducationBefore ERP Education

After ERP EducationAfter ERP Education

Source: ERP Making It Happen, Thomas F. Wallace and Michael H. Kremzar

EnthusiastsNaysayers

SilentMinority

Education was Mandatory, not Elective in Companies that have Achieved Class “A”ERP Certification

Education was Mandatory, not Elective in Companies that have Achieved Class “A”ERP Certification



The GoalThe Goal: Achieving World Class Performance (By the Numbers): Achieving World Class Performance (By the Numbers)

Executive Management Planning

OperationsManagement Execution

OperationsManagement Planning


Working the SolutionWorking the Solution

Prototype Inputs and OutputsPrototype Inputs and Outputs

Education

Industry Best PracticeKnowledge

Training Baseline

TeamSolutionKnowledge

BusinessGoals&Objectives

NewBusinessOperatingModel

Pilot & FullDeploymentPrototype

Continuous Process Improvement

SDL

Test

EnhanceDesign

Copyright © COMPUTER SCIENCES CORPORATION, 2006.SAPPHIRE / OR3824 Page 16

Working the SolutionWorking the Solution

Moving from the Informal to the Formal System (Valid Moving from the Informal to the Formal System (Valid Schedules) is the key to ERP Business Benefits Realization Schedules) is the key to ERP Business Benefits Realization

Inventory

Inventory Obsolescence

Material Costs

Freight Premium Costs

Cycle Times (Make/Buy)

Overtime Costs

New Business

Workforce Productivity

Readiness / Ao

Business BenefitsBusiness Benefits(Value / Results)(Value / Results)

Inventory

Inventory Obsolescence

Material Costs

Freight Premium Costs

Cycle Times (Make/Buy)

Overtime Costs

New Business

Workforce Productivity

Readiness / Ao

Business BenefitsBusiness Benefits(Value / Results)(Value / Results)

• Reorder Point

• Estimate of Demand

• Excessive Shortages

• “Hot List” Priorities

• Front End Loaded Schedules

• “Funny” Numbers

• Lack of Accountability

• Excessive Mth/Yr End Overtime

• Long Cycle Times

• Unreliable Customer Promises

• Poor Operational Performance

Informal SystemInformal System(Order Launch & Expedite)(Order Launch & Expedite)

• Time-Phased Order Point

• Actual Calculated Demand

• Minimal Shortages

• Order Due Date Priorities

• Level Loaded Schedules

• Reliable / Accurate Numbers

• Single Point Accountability

• Level Loaded Capacity

• Short Cycle Times

• On-Time Shipments

• High Operational Performance

Formal SystemFormal System(Valid Schedules)(Valid Schedules)


TransitionTransitionToday vs. TomorrowToday vs. Tomorrow

Longer Cycle Times

Excess Materiel Not The Right Materiel

Idle Resources, Over Used Resources

Expediting as a Way of Life

Excessive Amount of Meeting Time Mostly Execution

Not Planning

Little if Any Management Visibility

Work Started That Will Have to be Put Aside

Reduced Cycle Time

Less Materiel/Excess

Re-planning in Hours Not Weeks

Lower Costs

Resources Load Balanced

Work Executed to Plan

Work Released at Best Time

Job and Asset Status at Fingertips (Readiness)

Parts Shortages Known Early Enough to Address

Problems Planned ForNot Reacted To

LEAN Operations

TOD

AY

TOMORROW(Demand Planning)

(MRP)

(CRP)

(MPS)


Points of Contact

�Anthony “Tony” Zelinski• [email protected]• 570-954-9913

�Horace Dick• [email protected] • 856-988 4000


Questions?Questions?


Thank you!


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Csc LMP U.S. Army Project