DoD Hazmat Business Process Reengineering: Environment, Safety and Occupational Health

(ESOH) Transformation

March 2006

Office of the Deputy Under Secretary of Defense for Installations and Environment

ODUSD(I&E) Business Enterprise Integration

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Overview

• Background– Defense Business Transformation– ODUSD(I&E) Business Enterprise Integration (BEI)– BEI Approach to Transformation

• Rationale for Hazardous Materials (Hazmat) Business Process Reengineering (BPR)

• DoD Hazmat BPR

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DoD Business TransformationOrganization and Governance – I&E View

Program Success Factors(i.e., ‘Why we will

succeed’)• Senior leadership engagement --

with realistic and robust governance model

• Joint warfighting imperatives --creates opportunities for collective decisions

• Statutory and regulatory requirements for business transformation

• Acknowledgement of tiered accountability

• Continuity – leverages learning from past three years, with visible opportunity for success during next four years.

• BRAC – forcing function for integration

• Team members who have done this before in private sector

• Business Enterprise Architecture (BEA) and Enterprise Transition Plan (ETP) serve as blueprint and course of action for transformationDoD ComponentDoD Component——BEI Business BEI Business

Process Reengineering TeamsProcess Reengineering Teams

DEPSECDEF, USDs, CJCS, Secretaries of the Military Departments

DUSD(BT)DUSD(BT)DUSD(FM)DUSD(FM)

Defense Business Systems Management Committee

Governance

Governance

Subject Matter E

xpertiseSubject M

atter Expertise

I&E Domain

Governance Board

RP&ILM Investment

Review Board

DUSD(I&E)DUSD(I&E)

BEI DirectorateBEI Directorate

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ODUSD(I&E) Business Enterprise Integration

Vision:An I&E community that provides timely, accurate and reliable information within I&E and

to the warfighter and DoD business enterprise

Mission: Support both the I&E and DoD Business Transformation goals

Goals: The ODUSD(I&E) Business Enterprise Integration Directorate will produce outcomes that:

Provide better information for strategic and tactical decisionsReduce the cost of business operations

Improve stewardship of I&E assetsSupport integration of DoD enterprise business operations

• Support joint warfighting• Provide better information

for strategic resourcing decisions

• Reduce the cost of business operations

• Improve stewardship to the American People

• Enable achievement of I&E strategic and tactical goals and objectives

• Provide better information for strategic resourcing decisions

• Reduce the cost of business operations• Improve stewardship of I&E assets• Support integration of DoD enterprise

business operations

• Right Size and Place

• Right Quality• Right Safety and

Security• Right Resources• Right Tools and

Metrics

DoD BTEnterprise Goals

AlignmentI&E Business Enterprise Integration GoalsI&E Strategic Goals

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BEI Approach to Business Transformation

Implementation Support• Develop enterprise capabilities• Support component development of

implementation plans and milestones• Review milestones and outcomes

Implementation Support• Develop enterprise capabilities• Support component development of

implementation plans and milestones• Review milestones and outcomes

Document Collaborative Results• Integrate requirements and processes

• Business Enterprise Architecture• Enterprise Transition Plan

• Update Policies

Document Collaborative Results• Integrate requirements and processes

• Business Enterprise Architecture• Enterprise Transition Plan

• Update Policies

Requirements Documentation• Prepare document• Component authorization

Requirements Documentation• Prepare document• Component authorization

Collaborative Business Process

Reengineering

Collaborative Business Process

Reengineering

Ongoing Leadership Activities• Manage the real property and installations

lifecycle information technology portfolio, and provide investment review

• Host new I&E enterprise capabilities• Pursue new reengineering opportunities

Ongoing Leadership Activities• Manage the real property and installations

lifecycle information technology portfolio, and provide investment review

• Host new I&E enterprise capabilities• Pursue new reengineering opportunities

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Evolution of ESOH Management

E[SOH]MS**/ Functional Integration

Sustainable Operations

P2*/Pursuit of Excellence

Acceptance & Compliance

Tolerance

Denial

*P2 = Pollution Prevention, ** EMS = Environmental Management System

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Manage Assets to Support the Mission

Manage Operations toSustain Assets

Internal and External Stakeholder

Support

SustainableOperations

Transforming Defense ESOH ManagementTo Enhance Efficiency and Improve

Warfighter Readiness

BEI -- ESOH Strategy

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DoD Hazmat BPR

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Why Reengineer Hazmat Management?

• Hazardous materials are:– ESOH risk and impact-intensive– A cost driver across the Department

• Hazmat BPR: a logical first step for ESOH transformation – Target of Component-level transformation initiatives– “Foot in the door” toward integration of sound ESOH

management into mission activities

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Hazmat Management in DoD

• 1990’s - Implementation of Hazmat “Pharmacies” revolutionized Hazmat management across DoD– Reduced usage– Controlled issuance– Reduced waste and unauthorized use

• 2005/2006 – DoD Hazmat BPR jointly defined “next steps” in evolution of Hazmat management– Leveraged Services’ and DLA re-engineering efforts– Focus Areas: Jointness/interoperability; data standardization and

accessibility; product-data linkage; Hazmat “process” control

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Hazmat BPR Summary

• Scope of Phase 1: Operations and sustainment processes involving Hazmat

• Approach: Integrated, joint, cross-functional initiative: I&E (ESOH), Logistics, Acquisition, Personnel

• Hazmat BPR, Phase 1 – Objectives:

o Define DoD “core” product hazard data requirementso Establish authoritative source for product hazard datao Enable unique linkage of a product to its hazard datao Create standard business process to develop Hazmat process (ESOH)

controls– Outcome: Document BPR results as DoD Hazmat Requirements

Bottom-line: Implementation of BPR requirements is intended to reduce costsand improve Hazmat management across DoD

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Hazmat BPR – Context Diagram

Disposal Activity

InventoryManagement

Activity

Medical/HealthcareCommunity

TransportationActivity

Risk AssessmentActivity

User(Operational

Process)

Planning ActivityTrainingActivityHazardous

MaterialSource/Provider

RegulatoryCommunity

HazmatMaterialProcess

Authorizations

Regulations

ProcessAuthorization

OperationalProcess

Material/Process Use

Advisory

Material/Process

Alternative

MaterialProductData

Material/Process

Alternative

Material/Process Use

Advisory

MaterialProductData

RiskAssessment

Restrictions

Material Product Data Feed Back

Material/Process UseInformation

Material/Process UseInformation

Material/Process UseInformation

Material/Process useInformation

ComplianceMonitoring Activity

ProcessAuthorization

Material/Process UseInformation

Procurement(Source/Acquire)

Activity

MaterialHandling

Requirement

Weapon SystemAcquisition

Activity

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As Is -- Current Situation

• Data Issues: – Non-Standard data within and across Components– Duplicative IT systems and redundant data entry– Questionable data quality and product-data correlation– Lack of authoritative data source(s)

• Process and Regulatory Issues:– Inconsistent approval procedures within and across components– Variable level of protection/support provided to mission, personnel and

environment– Unreliable information for management decisions– Inconsistent compliance reporting– Inability to assess regulatory impact on DoD mission

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Hazmat BPR Timeline

4Q05 1Q06 2Q06 3Q06 4Q06

Materiel Visibility DoD Data Master Integration (Item Master in first 6 months (?))

Hazardous Materials Data Modeling (Phase 1 and Phase 2)

Draft Requirements Document (Phase 1) Review Draft Requirements Document

Phase 1 Closeout and Preparation for Phase 2 Hazmat BPR Phase 2 ---------------|-----Architecture Integration (BEA 5.0?) ------------

Jul 05

Sep

Aug

Oct

Nov

Dec

Jan 06

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep 06

Draft and Review Change Control Plan/process for ESOH

Today

DGB Meeting

Integration into BEA 4.0

Estimated BEA “Freeze”

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To Be – Following BPR Implementation

• Data Solution: Authoritative data source (DoD Product Hazard Data Master)– Provides reliable data for management decisions and regulatory needs – Enables unique linkage of product and data – Eliminates redundant data entry and maintenance

• Process and Regulatory Solution: Standard Product Hazard Data and Standard DoD Hazmat business process– Common language; jointness; interoperability– Consistent levels of support, protection and control– Sound basis for regulatory reporting and impact assessment

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Hazmat Phase 1 Results

• Standard data – common language for Hazmat

• Standard Hazmat business process incorporating best practices– “Modular” process for ESOH (operational) controls development– Leverages EMS– Supports sustainable operations

• Hazmat incorporated in BEA 3.0 as “ESOH Control Requirements”

• Initiated development of DoD Product Hazard Data Master

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Closing Thoughts…

• Our function in BEI is to enable yourtransformation requirements– Joint, collaborative BPR with Component SMEs– Documentation of joint requirements reflecting consensus

and best practices– Integration of requirements into DoD Business Enterprise

Architecture and functional policy– Implementation support

It is not necessary to change. Survival is not mandatory.

- W. Edwards Deming

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One More Thing….

Business

Enterprise Integration

Booth (#1037)

Please visit the Business Enterprise Integration booth!

Located in Exhibit Hall D,

space #1037, across from the Lounge

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Questions?